[Mission 2024] STATIC QUIZ, 19 October 2023 – Economy

Solution: c)

Under NBS, the government fixed a per-kg subsidy for each fertiliser nutrient: Nitrogen (N), phosphorus (P), potash (K) and sulphur (S). This was as against the earlier product-specific subsidy regime.

Linking subsidy to nutrient content was intended to promote balanced fertilisation by discouraging farmers from applying too much urea, di-ammonium phosphate (DAP) and muriate of potash (MOP). These are fertilisers with high content of a single nutrient: Urea (46% N), DAP (46% P plus 18% N) and MOP (60% K).

NBS was expected to induce product innovation, besides more use of complex fertilisers (having lower concentrations of N, P, K and S in different proportions) and SSP (containing only 16% P but also 11% S).

Solution: b)

Statement 3 is incorrect.

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

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.

Solution: d)

Conditions for Cotton cultivation:

• Hard-frost is injurious to cotton cultivation and it requires at least 210 frost-free days.
• Only light-rainfall (50 to 100 centimetres) is preferred. Cotton can also be cultivated under irrigated conditions.
• It requires high temperatures and bright sunshine for its growth.

Solution: b)

Statement 3 is incorrect.

What are Primary Agricultural Credit Societies (PACS)?

PACS are village level cooperative credit societies that serve as the last link in a three-tier cooperative credit structure headed by the State Cooperative Banks (SCB) at the state level. Credit from the SCBs is transferred to the district central cooperative banks, or DCCBs, that operate at the district level. The DCCBs work with PACS, which deal directly with farmers.

Since these are cooperative bodies, individual farmers are members of the PACS, and office-bearers are elected from within them. A village can have multiple PACS.

PACS are involved in short term lending — or what is known as crop loan. At the start of the cropping cycle, farmers avail credit to finance their requirement of seeds, fertilisers etc.

The attraction of the PACS lies in the last mile connectivity they offer. For farmers, timely access to capital is necessary at the start of their agricultural activities. PACS have the capacity to extend credit with minimal paperwork within a short time.

Solution: a)

Only statement 1 is correct.

Coffee in India is grown under a canopy of thick natural shade in ecologically sensitive regions of the Western and Eastern Ghats.

The two main varieties of coffee viz., Arabica and Robusta are grown in India.

Traditionally, India has been a noted producer of Arabica coffee but in the last decade robusta beans are growing substantially due to high yields, which now account for over 60 percent of coffee produced in India.

Karnataka is the leading producer of coffee in India.