TEST-4 – INSIGHTS IAS REVISION PLAN FOR PRELIMS 2019 – DAILY REVISION TESTS: 18 March 2019

Solution: C

Small Farmers’ Agri-Business Consortium (SFAC) as a Society in 1994 to facilitate agri-business ventures by catalyzing private investment through Venture Capital Assistance (VCA) Scheme in close association with financial institutions.

The setting up of State level SFAC as counterpart agency of Central SFAC for agribusiness projects was part of the Scheme.

The main functions of SFAC are:

(i)   Promotion of development of small agribusiness through VCA scheme;

(ii) Helping formation and growth of Farmer Producer Organizations (FPOs) / Farmer Producer Companies (FPCs);

(iii) Improving availability of working capital and development of business activities of FPOs/FPCs through Equity Grant and Credit Guarantee Fund Scheme;

(iv)  Implementation of National Agriculture Market (e-NAM) Electronic Trading platform.

Solution: D

All the statements are correct. Please refer below link for overall understanding of the drought issue in India.

http://www.arthapedia.in/index.php?title=Drought

Solution: A

Contract Farming can be carried out based on a pre-harvest agreement between
buyers and producers. It is defined under Concurrent List of the Seventh Schedule of constitution; however Agriculture is under State list.

FDI up to 100%, under the automatic route, is allowed in food processing industries. Further, 100% FDI under Government route for retail trading, including through e-commerce, is permitted in respect of food products manufactured and/or produced in India.

Solution: A

Food Safety and Standards Act, 2006 is an integrated food law that lays down standards and guidelines for consumer safety, protection of consumer health and regulation of the food sector. It seeks to harmonise Indian standards with the international standards like CODEX and facilitates international trade in food articles.

It is a comprehensive legislation for the sector and subsumes the then existing acts and standards like Prevention of Food Adulteration Act(PFA) of 1954 ,Fruit Products Order of 1955, Meat Food Products Order of 1973, Vegetable Oil Products (Control) Order of 1947, Edible Oils Packaging (Regulation)Order of 1988, Solvent Extracted Oil, De- Oiled Meal and Edible Flour (Control) Order of 1967, Milk and Milk Products Order of 1992 and also any order issued under the Essential Commodities Act, 1955 relating to food .

Ministry of Health & Family Welfare administrates Food Safety and Standards Act, 2006

Operation Greens is a 500 crore project on the lines of Operation Flood for enhancing production & reducing price volatility of fruits & vegetable.

Operation Greens seeks to stabilize the supply of Tomato, Onion and Potato (TOP) crops and to ensure availability of TOP crops throughout the country round the year without price volatility.

The Ministry of Food Processing Industries has launched the scheme. NAFED will be the Nodal Agency to implement price stabilization measures.

Ministry of Commerce has implemented the National Programme for Organic Production (NPOP) since 2001. The objectives of NPOP are as under:

1)            To provide the means of evaluation of certification programme for organic agriculture and products (including wild harvest, aquaculture, livestock products) as per the approved criteria.

2)            To accredit certification programmes of Certification Bodies seeking accreditation.

3)            To facilitate certification of organic products in conformity with the prescribed standards.

4)            To facilitate certification of organic products in conformity with the importing countries organic standards as per equivalence agreement between the two countries or as per importing country requirements.

5)            To encourage the development of organic farming and organic processing.

Solution: C

National Policy on Biofuels – 2018.

Salient Features:

1. The Policy categorises biofuels as “Basic Biofuels” viz. First Generation (1G) bioethanol & biodiesel and “Advanced Biofuels” – Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, bio-CNG etc. to enable extension of appropriate financial and fiscal incentives under each category.
2. The Policy expands the scope of raw material for ethanol production by allowing use of Sugarcane Juice, Sugar containing materials like Sugar Beet, Sweet Sorghum, Starch containing materials like Corn, Cassava, Damaged food grains like wheat, broken rice, Rotten Potatoes, unfit for human consumption for ethanol production.

• Farmers are at a risk of not getting appropriate price for their produce during the surplus production phase. Taking this into account, the Policy allows use of surplus food grains for production of ethanol for blending with petrol with the approval of National Biofuel Coordination Committee.

1. With a thrust on Advanced Biofuels, the Policy indicates a viability gap funding scheme for 2G ethanol Bio refineries of Rs.5000 crore in 6 years in addition to additional tax incentives, higher purchase price as compared to 1G biofuels.
2. The Policy encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, Used Cooking Oil, short gestation crops.
3. Roles and responsibilities of all the concerned Ministries/Departments with respect to biofuels has been captured in the Policy document to synergise efforts.

Solution: A

Commercial banks are the largest institutional lenders for agriculture sector in India.

Kisan Credit Card is a pioneering credit delivery innovation for providing adequate and timely credit to farmers under single window. It is a flexible and simplified procedure, adopting whole farm approach, including short-term, medium-term and long-term credit needs of borrowers for agriculture and allied activities and a reasonable component for consumption needs.

Kisan Vikas Patra (KVP) is a saving instrument  launched by the Government for individual savers, wherein invested money doubled during the maturity period.

This savings scheme was first launched by the Government on 1 April, 1988 and was distributed through post offices. It was discontinued in 2011 and later reintroduced in 2014.

The maturity period of the scheme is around 100 months and the money invested doubled on maturity. However, KVP is not a tax saving instrument as it does not offer any income tax exemption.

Solution: A 

The Khadi and Village Industries Commission (KVIC) is a statutory body established by an Act of Parliament. In April 1957, it took over the work of former All India Khadi and Village Industries Board.

KVIC works under the overall guidance of Ministry of Micro, Small and Medium Enterprises.

The KVIC is charged with the planning, promotion, organisation and implementation of programs for the development of Khadi and other village industries in the rural areas in coordination with other agencies engaged in rural development wherever necessary.

It also implements Prime Minister’s Employment Generation Programme

Solution: B

GIFT (Gujarat International Finance Tec-City), India’s first International Financial Services Centre, embodies this vision with conducive multi-service SEZ and an exclusive domestic zone.

A Fully integrated city with a walk to work culture, it has the next-in-class infrastructure, connectivity, people, technology and legal framework – emerging as a platform for businesses across the world.

Solution: C

Radio-Frequency Identification (RFID) is the use of radio waves to read and capture information stored on a tag attached to an object. A tag can be read from up to several feet away and does not need to be within direct line-of-sight of the reader to be tracked.

How does a RFID system work?

A RFID system is made up of two parts: a tag or label and a reader. RFID tags or labels are embedded with a transmitter and a receiver. The RFID component on the tags have

two parts: a microchip that stores and processes information, and an antenna to receive
and transmit a signal. The tag contains the specific serial number for one specific object.

To read the information encoded on a tag, a two-way radio transmitter-receiver called
an interrogator or reader emits a signal to the tag using an antenna. The tag responds
with the information written in its memory bank. The interrogator will then transmit the
read results to an RFID computer program.

RFID tags can be read at phenomenal speeds without any labor. RFID readers can scan
up to 200 tags simultaneously.

Unlike barcodes, RFID tags do not require line of sight scanning and can be read in bulk
(e.g., by the pallet). RFID readers are costlier than barcode scanners.

Solution: B

Key Publications of IMF

Publications

1. World economic outlook
2. Global financial stability report
3. Fiscal monitor
4. Regional economic prospects
5. Finance and Development

Solution: C

Warehouse Receipts are documents issued by warehouses to depositors against the commodities deposited in the warehouses, for which the warehouse is the bailee.

Warehouse Receipt is a proof of storage. It is an acknowledgement of the goods held by the warehouse keeper on behalf of the person named therein.  It is a document issued by a warehouse keeper stating that he holds the goods mentioned in the receipt and is awaiting instructions from the person to whom it is addressed. It is a mere deposit receipt. Banker can accept it as a security to grant loans.

Solution: D

Open Market Sale Scheme (OMSS) refers to selling of foodgrains by Government / Government agencies at predetermined prices in the open market from time to time to enhance the supply of grains especially during the lean season and thereby to moderate the general open market prices especially in the deficit regions.

The present form of OMSS comprises 3 schemes as under:

(i) Sale of wheat to bulk consumers/private traders through e-auction.

(ii) Sale of wheat to bulk consumers/private traders through e-auction by dedicated movement.

(iii) Sale of Raw Rice Grade ‘A’ to bulk consumers/private traders through e-auction.

It doesn’t include any provision of direct sale to poor and distressed farmers.

http://www.arthapedia.in/index.php?title=Open_Market_Sale_Scheme_(OMSS)

Fair Price Shop means a shop which has been licensed to distribute essential commodities by an order issued under section 3 of the Essential Commodities Act, 1955, to the ration card holders under the Targeted Public Distribution System.

The term is defined in Section 2(4) of National Food Security Act, 2013.

Ration card means a document issued under an order or authority of the State Government for the purchase of essential commodities from the fair price shops under the Public Distribution System (PDS) / Targeted Public Distribution System (TPDS).

Ration Card is issued per family. It is voluntary and not compulsory for citizens to acquire it. However, all those citizens who want to get subsidised food may need to get that.

Though ration cards have been in use for a very long time, the term got legally defined later in Section 2(16) of National Food Security Act, 2013.

Solution: C

What are small finance banks?

The small finance bank will primarily undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.

What they can do?

• Take small deposits and disburse loans.
• Distribute mutual funds, insurance products and other simple third-party financial products.
• Lend 75% of their total adjusted net bank credit to priority sector.
• Maximum loan size would be 10% of capital funds to single borrower, 15% to a group.
• Minimum 50% of loans should be up to 25 lakhs.

What they cannot do?

• Lend to big corporates and groups.
• Cannot open branches with prior RBI approval for first five years.
• Other financial activities of the promoter must not mingle with the bank.
• It cannot set up subsidiaries to undertake non-banking financial services activities.
• Cannot be a business correspondent of any bank

Solution: B

Mahatma Gandhi National Rural Employment Guarantee Act, 2005 provides guarantee employment of 100 days for adult age group (18+).

State Governments are responsible for identification of beneficiaries for Targeted Public Distribution Scheme (TPDS) and issue of ration cards. Based on the quantum of population, center will allocate the food grains to state.

National Food Security Act includes the provision of foodgrains through Mid-Day Meal and integrated child development scheme along with provision of ration for BPL and APL categories.

Solution: D

The Codex Alimentarius Commission (CAC) is an intergovernmental body with over 180 members, within the framework of the Joint Food Standards Programme established by the Food and Agriculture Organization of the United Nations (FAO) and the World Health Organization (WHO), with the purpose of protecting the health of consumers and ensuring fair practices in the food trade.

It was established in 1960’s.

The Codex Alimentarius is recognized by the World Trade Organization as an international reference point for the resolution of disputes concerning food safety and consumer protection.

Solution: B

• Buffer stock refers to a reserve of a commodity that is used to offset price fluctuations and unforeseen emergencies. Buffer stock is generally maintained for essential commodities and necessities like food grains, pulses etc.
• The concept of buffer stock was first introduced during the IVth Five Year Plan (1969-74).
• Buffer stock of food grains in the Central Pool is maintained by the Government of India (GOI) / Central Government for
  1. meeting the prescribed minimum buffer stock norms for food security,
  2. monthly release of food grains for supply through Targeted Public Distribution System (TPDS) and Other Welfare Schemes (OWS),
  3. meeting emergency situations arising out of unexpected crop failure, natural disasters, etc., and
  4. price stabilisation or market intervention to augment supply so as to help moderate the open market prices.
• The Cabinet Committee on Economic Affairs fixes the minimum buffer norms on quarterly basis: i.e as on 1st April, 1st July, 1st October and 1st January of every financial year.
• The latest norms set may be seen here. On 15 December 2015, it was decided by the Government to create a buffer stock of pulses of 1.5 lakh tonnes to control fluctuation of prices of pulses.
• Government has engaged National Agricultural Cooperative Marketing Federation of India Limited (NAFED), Small Farmers Agri-business Consortium (SFAC) and Food Corporation of India (FCI) to procure pulses for buffer stock.

Solution: D

Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved Fair and Remunerative Price (FRP) of sugarcane for sugar season 2018-19 keeping in view the interest of sugarcane farmers. It was approved based on the recommendation of Commission for Agricultural Costs and Prices (CACP).

Solution: B

Japan is not a member of AIIB.

Solution: B

The World Intellectual Property Organization is one of the 15 specialized agencies of the United Nations. WIPO was created in 1967 “to encourage creative activity, to promote the protection of intellectual property throughout the world”.

Solution: C

Astra is India’s first beyond-visual-range (BVR) air-to-air missile indigenously designed
and developed by Defence Research and Development Organisation (DRDO).
It is intended to engage and destroy aerial targets with high manoeuvrability and
supersonic speeds.

The missile’s advanced air combat capabilities allow it to engage multiple high-performance targets.

Astra was planned to equip the Indian Air force’s Su-30MKI and Mirage 2000 multirole combat fighters, and MiG-29 and MiG-21 Bison fighter jet platforms, as well as the Indian Navy’s Sea Harrier jet fighter.

It will also be integrated with the Tejas light combat aircraft (LCA), which is manufactured by Hindustan Aeronautics Limited (HAL). The Astra BVR air-to-air missile is powered by a smokeless, single stage, solid fuel propulsion system. It can destroy enemy targets with a launch speed between Mach 0.4 and Mach 2.

https://www.airforce-technology.com/projects/astra-beyond-visual-range-bvr-air-to-air-missile/

Solution: C

Viability literally means ability to survive successfully. VGF is an economic instrument (or scheme) of Government of India , launched in 2004 with the motive of supporting projects which come under public-private partnerships(PPP) model.

Basically, it is a grant to support projects that are economically justified but are not financially viable.

Solution: D

Karnataka’s state animal is Indian Elephant, State animal of Tamil Nadu is Nilgiri Tahr, State animal of Jammu and Kashmir is Kashmir Stag.

Solution: A

The Doha Development Round or Doha Development Agenda (DDA) is the trade-negotiation round of the World Trade Organization (WTO) which commenced in November 2001 under then director-general Mike Moore.

Its objective was to lower trade barriers around the world, and thus facilitate increased global trade.

Solution: B

Pradhan Mantri Kisan Samman Nidhi (PMKISAN)
This fund is intended to provide direct income support at the rate of 6,000 per year. This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal instalments of ` 2,000 each.
This will cover all farmers having land less than 2 acre. Around 12 crore small and marginal farmer families are expected to benefit from this.

Pradhan Mantri Shram-Yogi Maandhan’

It will cover unorganised sector workers. This scheme will cover all unorganized sector workers with income less than 15,000.

This pension yojana shall provide them an assured monthly pension of Rs. 3,000 from the age of 60 years on a monthly contribution of a small affordable amount during their working age.
It is expected that at least 10 crore labourers and workers in the unorganised sector under this scheme.

Solution: A

Subsidies: Food > Fertilizer> Petroleum > Interest subsidy > Others

In India, Budget is prepared by Department of Economic Affairs under Ministry of Finance.