DAY – 16 (InstaTest-16): Insta 75 Days Revision Plan-2022: Topic – Agriculture, Subject-wise Revision of Tests 5, 6, 20, Textbook based Test 16 and January 2022 CA

Solution: c

Justification:  The decentralised procurement (DCP) scheme was operationalised by the government in 1997 (together with the Centre and some of the states also procure foodgrains from the farmers, locally). Under this scheme, the designated states procure, store and also issue foodgrains under the TPDS.

The difference between the economic cost of the states and the central issue price (CIP) is passed on to the states by the Government of India as subsidy. The decentralised system of procurement, helps to cover more farmers under the MSP operations, improves efficiency of the PDS, provides varieties of foodgrains more suited to local taste, and reduces the transportation costs of the FCI.

The Government of India urged all states to adopt the DCP scheme so that costs of distribution can be saved and outreach of price support mechanism to the farmers in hitherto weaker areas can be improved.

Q Source: Basics: food management

Solution: d

Justification:  The economic cost of foodgrains consists of three components, namely the MSP including central bonus (the price paid to farmers), procurement incidentals, and the cost of distribution.

The economic cost for both wheat and rice witnessed significant increase during the last few years due to increase in MSPs and proportionate increase in incidentals as well as other costs.

Q Source: Basics: food management

Solution: b

Justification:  Agriculture subsidies can be direct or indirect farm subsidies taking account the instruments used in providing them.

Direct Farm subsidies involve giving cash to the farmers. India provides direct subsidies in a limited form which include giving food subsidy or MSP-based procurement, etc. These are the kinds of subsidies in which direct cash incentives are paid to the farmers in order to make their products more competitive in the global markets. However, such direct subsidies are more common in developed countries like US and Europe.

Indirect farm subsidies: These are the farm subsidies which are provided in the form of cheaper credit facilities, farm loan waivers, reduction in irrigation and electricity bills, fertilizers, seeds and pesticides subsidy as well as the investments in agricultural research, environmental assistance, farmer training, etc. These subsidies are also provided to make farm products more competitive in the global market. The subsidies provided on the fertilizers as ‘input’ subsidies are in the form of indirect subsidies. But if the government does not incentivize the farmer by an effective cost reduction in prices of the fertilizers, but provides direct cash incentives after the produce, is known as a direct subsidy

Q Source: Ch on Agriculture – Indian Economy: Ramesh Singh

Solution: c

Justification:  The Government established Small Farmers’ Agri-Business Consortium (SFAC) as a Society in January 1994 to facilitate agri-business ventures by catalysing private investment through Venture Capital Assistance (VCA) Scheme in close association with financial institutions. SFAC is an Autonomous Society promoted by Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare, Govt. of India” It is registered under Societies Registration Act 1860. • The role of State SFACs is to aggressively promote agribusiness project development in their respective States.

Management: The Society is governed by Board of Management, which is chaired, ex-officio, by Union Minister for Agriculture and Farmers Welfare as the President and the Secretary, Department of Agriculture, Cooperation and Farmers Welfare, Government of India, is the ex-officio Vice-President.

The main functions of SFAC are:

o Promotion of development of small agribusiness through VCA scheme.

o Helping formation and growth of Farmer Producer Organizations (FPOs) / Farmer Producer Companies (FPCs).

o Improving availability of working capital and development of business activities of FPOs/FPCs through Equity Grant and Credit Guarantee Fund Scheme.

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

Q Source: AR: Insights modules

Solution: b

Justification: It is an online trading platform for agriculture produce aiming to help farmers, traders, and buyers with online trading and getting a better price by smooth marketing. It was launched by the Centre in 2015 and the government had to extend it in a phased manner across the 585 mandis of the country by December 31, 2019. • The Portal is managed by Small Farmers’ Agribusiness Consortium (SFAC). • On the ENAM platform, farmers can opt to trade directly on their own through the mobile app or through registered commission agents.

NAM has the following advantages:

1. For the farmers, NAM promises more options for sale. It would increase his access to markets through warehouse-based sales and thus obviate the need to transport his produce to the mandi.
2. For the local trader in the mandi / market, NAM offers the opportunity to access a larger national market for secondary trading.
3. Bulk buyers, processors, exporters etc. benefit from being able to participate directly in trading at the local mandi / market level through the NAM platform, thereby reducing their intermediation costs.
4. The gradual integration of all the major mandis in the States into NAM will ensure common procedures for issue of licences, levy of fee and movement of produce.
5. The NAM will also facilitate the emergence of value chains in major agricultural commodities across the country and help to promote scientific storage and movement of agri goods.

Q Source: AR: Insights modules

Solution: d

Coal Bed Methane (CBM) is an unconventional form of natural gas found in coal deposits or coal seams. CMB is formed during the process of coalification, the transformation of plant material into coal.

It is considered a valuable energy resource with reserves and production having grown nearly every year since 1989. Varied methods of recovery make CBM a stable source of energy.

CBM can be recovered from underground coal before, during, or after mining operations. It can also be extracted from “unminable” coal seams that are relatively deep, thin or of poor or inconsistent quality. Vertical and horizontal wells are used to develop CBM resources.

Extraction requires drilling wells into the coal seams and removing water contained in the seam to reduce hydrostatic pressure and release absorbed (and free) gas out of the coal.

CBM can be used for:

• • Power generation
  • As compressed natural gas (CNG) auto fuel
  • As feedstock for fertilizers
  • Industrial uses such as in cement production
  • Methanol production.

Solution: a

Fertilizers can be classified in three categories namely- Primary, Secondary and Micronutrients

• Primary fertilizers are further classified on the type of nutrients they supply to soil such as nitrogenous (urea), phosphatic (di-ammonium phosphate (DAP)) and potassic (muriate of potash (MOP)) fertilizers.
• Secondary fertilizer includes calcium, magnesium and sulphur while

Micronutrients include iron, zinc, boron, chloride etc.

Solution: c

Government launches negotiable warehousing receipts in e-format

The government has rolled out negotiable warehousing receipts in electronic format that farmers can use to avail of bank credit easily and without fear of losing or misusing it.

Benefits of e receipts:

Till now, the receipts were issued manually. Now, it will be given in an electronic format, which will not only benefit farmers, but banks and other stakeholders.

• • Farmers will not have to worry about losing the receipt — which has details of the quantity, quality and the warehouse where the commodity is stored — as it will be uploaded online and will be accessible to banks while sanctioning loan.
  • This will also stop farmers from taking multiple bank loans on a single receipt.

What are Negotiable Warehouse Receipts?

Negotiable warehouse receipt, which was launched in 2011, allows transfer of ownership of that commodity stored in a warehouse without having to deliver the physical commodity. These receipts are issued in negotiable form, making them eligible as collateral for loans.

Warehouse receipts are made negotiable under the Warehouse (Development and Regulation) Act, 2007, and regulated by the Warehousing Development and Regulatory Authority (WDRA).

NWR are issued by registered warehouses enables farmers to seek loans from banks against NWRs

Solution: a

The FPO mark is a certification mark mandatory on all processed fruit
products sold in India such as packaged fruit beverages, fruit-jams,
crushes and squashes, pickles, dehydrated fruit products, and fruit
extracts, following the Food Safety and Standards Act of 2006.

The standards have been in force since 1955 by the law of Fruit Products
Order, after which the mark is named, but the mark itself got a
mandatory status only after the Food Safety and Standards Act of 2006.

India Organic is a certification mark for organically farmed food products manufactured in India. The certification mark certifies that an organic food product conforms to the National Standards for Organic Products established in 2000.

Those standards ensures that the product or the raw materials used in the product were grown through organic farming, without the use of chemical fertilizers, pesticides, or induced hormones. The certification is issued by testing centres accredited by the Agricultural and Processed Food Products Export Development Authority (APEDA) under the National Program for Organic Production of the Government of India.

Solution: a

Urea Subsidy is a part of Central Sector Scheme of Department of Fertilizers wholly financed by the Government of India.

The difference between the delivered cost of fertilizers at farm gate and MRP payable by the farmer is given as subsidy to the fertilizer manufacturer/importer by the Government of India.

Urea production units use Natural Gas as well as Naphtha as feedstock/fuel.

Presently, urea is made available to farmers at statutorily controlled price.

Features of Urea

Urea, a white crystalline solid containing 46% nitrogen, is widely used in the agricultural industry as an animal feed additive and fertilizer.

Unlike many fertilizers, Urea can be applied to soil as a solid or solution.

100% Neem Coated Urea was made mandatory in 2015. 

Benefits of Neem Coating Urea

• • Improvement in soil health.
  • Reduction in costs with respect to plant protection chemicals.
  • Reduction in pest and disease attack.
  • Plugging the diversion of the subsidized Urea towards non-agricultural purposes.
  • It reduces loss of Nitrogen/ammonia from urea when it remains on the soil surface for extended periods of time during warm weather.

Solution: d

Government has launched One Nation-One Ration Card scheme on pilot basis in Telangana, Andhra Pradesh, Maharastra and Gujarat. Families who have food security cards can buy subsidized rice and wheat from any ration shop in these states but their ration cards should be linked with Aadhar Number to avail this service.

About the scheme:

• One Nation One Ration Card (RC) will ensure all beneficiaries especially migrants can access PDS across the nation from any PDS shop of their own choice.
• Benefits: no poor person is deprived of getting subsidized food grains under the food security scheme when they shift from one place to another. It also aims to remove the chance of anyone holding more than one ration card to avail benefits from different states.
• Significance: This will provide freedom to the beneficiaries as they will not be tied to any one PDS shop and reduce their dependence on shop owners and curtail instances of corruption.
• It is launched by Ministry of Consumer Affairs, Food and Public Distribution.
• It would integrate the existing PDS systems/portals of States/UTs with the Central systems/portals.

Challenges:

• Prone to corruption: Every state has its own rules for Public Distribution System (PDS). If ‘One Nation, One Ration Card’ is implemented, it will further boost corruption in an already corrupted Public Distribution System.
• The scheme will increase the woes of the common man and, the middlemen and corrupt PDS shop owners will exploit them.
• Tamil Nadu has opposed the proposal of the Centre, saying it would result in undesirable consequences and is against federalism.

Solution: c

The Food Corporation of India is an organization created and run by the Government of India. It is a statutory body under the Ministry of Consumer Affairs, Food and Public Distribution, Government of India. Its top official is designated as Chairman. It was set up in 1965 with its Initial headquarters at Chennai. Later this was moved to New Delhi. It also has regional centers in the capitals of the states. Important regions of the state also serve as district centers.

Objectives: 

• Effective price support operations for safeguarding the interests of the poor farmers
• Distribution of foodgrains throughout the country for Public Distribution System (PDS)
• Maintaining a satisfactory level of operational and buffer stocks of food grains to ensure National Food Security
• Regulate market price to provide food grains to consumers at a reliable price.
• It has primary duty to undertake purchase, store, and move/transport, distribute and sell food grains and other foodstuffs.

Solution: b

Characteristics of mangroves

• They are basically evergreen land plants growing on sheltered shores, typically on tidal flats, deltas, estuaries, bays, creeks and the barrier islands.
• The best locations are where abundant silt is brought down by rivers or on the backshore of accreting sandy beaches.
• Their physiological adaptation to salinity stress and to water logged anaerobic mud is high.
• They require high solar radiation and have the ability to absorb fresh water from saline/brackish water.
• It produces pneumatophores (blind roots) to overcome respiration problem in the anaerobic soil conditions.
• Mangroves occur in variety of configurations. Some species (e.g. Rhizophora) send arching prop roots down into the water. While other (e.g. Avicennia) send vertical “Pneumatophores” or air roots up from the mud.
• Most mangrove vegetation has lenticellated bank which facilitates more water loss, produces coppices. Leaves are thick and contain salt secreting glands.
• Mangroves exhibit Viviparity mode of reproduction. i.e. seeds germinate in the tree itself (before falling to the ground). This is an adaptative mechanism to overcome the problem of germination in saline water.
• Some secrete excess salt through their leaves as if you look closely, you can see crystals of salt on the back of the leaves; others block absorption of salt at their roots.
• Adventitious roots which emerged from the main trunk of a tree above ground level are called stilt roots.

Solution: d

Concessional Finance Scheme (CFS)

Under it, government has been supporting Indian Entities bidding for strategically important infrastructure projects abroad since 2015-16. Since the objectives of the Scheme continue to be relevant, it is proposed to extend the Scheme for another five years from 2018 to 2023.

Implementation Strategy and Targets:

Under the Scheme, MEA selects the specific projects keeping in view strategic interest of India and sends the same to Department of Economic Affairs (DEA).

The strategic importance of a project to deserve financing under this Scheme, is decided, on a case to case basis, by a Committee chaired by Secretary, DEA and with members from Department of Expenditure, Ministry of External Affairs, Department of Industrial Promotion and Policy (DIPP), Department of Commerce, Department of Financial Services and Ministry of Home Affairs. The Deputy National Security Adviser is also a member of this Committee. Once approved by the Committee, DEA issues a formal letter to EXIM Bank conveying approval for financing of the project under CFS.

The Scheme is presently being operated through the Export-Import Bank of India, which raises resources from the market to provide concessional finance. Government of India (GoI) provides counter guarantee and interest equalization support of 2% to the EXIM Bank.

Solution: a

The Indian Ocean Commission (IOC) is an intergovernmental organization which brings together five member states : the Union of the Comoros, France in respect of La Réunion, Madagascar, Mauritius and the Seychelles. Created by the Port-Louis Declaration in 1982, the IOC was institutionalized in Seychelles in 1984 by the General Agreement for Cooperation, better known as the “Victoria Agreement ”.

The only regional organization in Africa composed exclusively of islands, it defends the specificities of its member states on the continental and international scenes. Benefiting from the active support of a dozen international partners , the IOC embodies regional solidarity through cooperation projects covering a wide range of sectors: preservation of ecosystems, sustainable management of natural resources, maritime security, entrepreneurship, public health , renewable energies or culture.

In 2016, an observer member status with the IOC was created. IOC observer members are invited to major organizational meetings and maintain a sustained dialogue on subjects of common interest.

IOC has seven observers – India, China, Malta, European Union, International Organization of La Francophonie (OIF), Japan and United Nations

Solution: c

Rohini Commission is constituted for Sub-Categorisation of OBCs.

Solution: c

The Djibouti Code of Conduct/ Jeddah Amendment(DCOC/JA) is a grouping on maritime matters comprising 18 member states adjoining the Red Sea, Gulf of Aden, the East Coast of Africa and Island countries in the Indian Ocean Region.

It was established in January 2009 under the International Maritime Organization (IMO).

Signatories- It has been signed by 20 countries including Djibouti, Ethiopia, Kenya, Madagascar, Maldives, Seychelles, Somalia, the United Republic of Tanzania, Yemen, Comoros, Egypt, Eritrea, Jordan, Mauritius, Mozambique, Oman, Saudi Arabia, South Africa, Sudan and the United Arab Emirates.

The member states are located in areas adjoining the Red Sea, the Gulf of Aden and the east coast of Africa and include island nations in the Indian Ocean.

Observer states- India, Japan, Norway, the UK and the US are Observers to the DCOC/JA.

Solution: a

The United Nations General Assembly unanimously approved the resolution sponsored by India to declare 2023 as the International Year of Millets.

• In 2018, India had proposed to celebrate 2023 as the International Year of Millets at the Food and Agriculture Organization.
• Significance of declaring International Year of Millets.

1. Help in raising awareness and direct policy action to nutritional and health benefits of millets consumption and their suitability for cultivation under adverse and changing climatic conditions.
2. Draw focus for enhanced investments in research and development and extension services related to millets.

Solution: b

• 9.3 % is the Fiscal deficit for the year 2020-21.
• 61.7 % is the debt-to-GDP for the Indian for the year 2021-22.

Solution: c

Solution: a

Amendment will allow IAS, IPS and IFoS officers to retain gifts received from foreign dignitaries while being members of the Indian delegation.

• • Presently there are no provisions under the AIS

(Conduct) Rules, 1968, with regard to receipt/retention of gifts from foreign dignitaries.

Existing rules allowed these officers to accept gifts from their near relatives or from personal friends having no official dealings with them, on occasions such as weddings, anniversaries, funerals and religious functions.

• • However, they are supposed to report to the government if the value of such gift exceeds ₹25,000.

Solution: d

Statements reversed

About 90% of the requirement of phosphates is imported. The small phosphate deposits of commercial importance are confined to Singhbhum (Jharkhand), Vishakhapatnam (A.P.), and in some parts of Rajasthan

There are no known large reserves of elemental sulphur in the country. However, some of the reserves of Sulphur is available in Tamil Nadu

Ammonia is required for nitrogenous fertilizer

Solution: d

Minor minerals are those, which are declared by the Central Government under Section I (a) of the Mines & Minerals (Regulation & Development) Act, 1957. They are further revised and notified from time to time in the Gazette of India.

Mines and Minerals (Development and Regulation) Act, 1957

It regulates overall mining sector in India and specifies the requirement for obtaining and granting mining leases.

“Minerals” includes all minerals except mineral oils- natural gas and petroleum

The state governments grant permission for mining, known as mineral concessions, for all the minerals located within the boundary of the state, under the provisions of the Mines and Minerals (Development and Regulation) Act, 1957 and Mineral Concession Rules, 1960.

However, for minerals specified in the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957, Central government approval is necessary before granting the mineral concession. Minerals specified under the First Schedule include hydrocarbons, atomic minerals and metallic minerals such as iron ore, bauxite copper ore, lead precious stones, zinc and gold.

Solution: d

Dry land produce majority of oil seeds

Palm oil accounted for the lion’s share of the total imports (62 per cent), followed by soya oil and sunflower oil (21 per cent and 16 per cent, respectively). There is a considerable increase in the share of soya oil and sunflower oil in the import basket.

The palm oil is primarily sourced from Indonesia and Malaysia, soya oil from Argentina and Brazil, whereas Ukrain and Argentina are the major suppliers of sunflower oils to India.

Solution: a

DMFs were instituted under the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act 2015.

They are non-profit trusts to work for the interest and benefit of persons and areas affected by mining-related operations.

DMF contribution would be < 1/3rd of royalty and Center retains the power to prescribe rates of contribution, though DMF is operated by State Govt. DMF funds are treated as Extra Budgetary resources.

Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY):

The programme is meant to provide for the welfare of areas and people affected by mining related operations, using the funds generated by District Mineral Foundations (DMFs).

60 % Funds to be used for High priority areas = Water, Health, Education, Vulnerable section, skills and sanitation.

40% Funds to be used for Infrastructure projects = Physical Infra, irrigation, Energy, Watershed development.

Solution: a
Sol. If the number is divisible by 5 and 11 it must be divisible by 55. The numbers are less than 660. Hence, dividing 659 by 55 gives the number of multiples of 55 = 11 (ignoring fraction part).The 11 multiples of 55 which are less than 560, but of these 11 multiples some can be multiples of 3. The numbers of such, multiples is the quotient of 11 by 3. Quotient of 113=3113=3. Out of 11 multiples of 55, 3 are multiples of 3. Hence, numbers less than 660 and divisible by 5 and 11 but not by 3=11−3=8

Solution: c

Solution: d

Solution: a

Solution: a

Statement 2 is not correct as the word ‘may’ is used in the passage as ‘prices of the products ‘may be artificially inflated’. Statement 1 is correct as the passage talks about the need of competition law in the face of liberalised FDI.