Agriculture in The National Economic

Total Questions: 35

1. Agricultural income tax is assigned to the State Government by: [1995]

Correct Answer: (d) The Constitution of India
Solution:Art. 269 says taxes on income other than agricultural income shall be levied and collected by the Government of India and distributed between the Union and States. Entry 46 in the state list of Seventh Schedule.

This gives power to the state governments to impose agricultural income tax. The agency responsible for it is Finance Commission whose function is distribution of net proceed of taxes between centre and the state, to be divided as per their respective contributions to the taxes.

As per Income Tax Act, income earned from any of the under given three sources meant Agricultural Income;

(i) Any rent received from land which is used for agricultural purpose.

(ii) Any income derived from such land by agricultural operations including processing of agricultural produce, raised or received as rent in kind so as to render it fit for the market, or sale of such produce.

(iii) Income attributable to a farm house subject to the condition that building is situated on or in the immediate vicinity of the land and is used as a dwelling house, store house etc.

2. In which one of the following crops international trade is low in the context of total produce? [1995]

Correct Answer: (a) Rice
Solution:Rice production is highest in India among cereals but its quality of rice cannot compete with other rice producing countries. Most of rice produced in India is meant for internal consumption. India is a major producer and exporter of Basmati rice.
• India contributes up to 20% of global rice production and is the second largest producer and consumer of rice in the world after China.
• In 2020, the average rice yield in India was 2.7 tonnes/ha, against the global average of 4.374 tonnes/ha. China (6.5), Australia (10), and the US (7.5) led in rice productivity figures.
• India is the largest exporter of rice globally. It replaced Thailand in exports in 2011-12.
• India is also the biggest exporter of basmati rice. The states like Punjab, Haryana and Western Uttar Pradesh produce the best qualities of Basmati Rice.
• The top countries to which India exports (Basmati Rice) are – Saudi Arabia, Iran, Iraq, Yemen etc.

3. In India, rural incomes are generally lower than the urban incomes. Which of the following reasons account for this? [1996]

1. A large number of farmers are illiterate and know little about scientific agriculture.

2. Prices of primary products are lower than of manufactured products.

3. Investment in agriculture has been low when compared to investment in industry.

Select the correct answer by using the codes given below:

Correct Answer: (d) 2 & 3
Solution:Prevailing illiteracy in rural areas does not lower productivity. The farmer has adequate knowledge of farming techniques.

Low prices of primary products compared to the manufactured products and investment in the agriculture sector compared to the industry are major factors which accounts for low incomes in rural economy than in Urban economy.

4. Match List-1 with List-II and select the correct answer: [1997]

List-I (Commodities exported from India) List-II (Countries of destination)
A. Iron ore1. Russia
B. Leather goods2. U.S.A
C. Tea3. Japan
D. Cotton fabrics4. U.K.
5. Canada

Codes:

ABCD
(a)5123
(b)3142
(c)1543
(d)3412
Correct Answer: (b)
Solution:• Iron-ore to Japan. Japan has one of the largest iron and steel industries in the world. It imports the majority of its iron-ore, a key element to produce steel, from various countries including India.
• Leather goods to Russia. Russia imports a range of goods from around the world including leather goods from India. The country’s harsh climate necessitates the use of products made of this durable material.
• Tea to the UK. The pairing is very accurate as the UK is one of the major importers of tea globally, with India being one of its main suppliers.
• Cotton fabrics to the USA. America is one of the world’s largest importers of cotton items, buying particularly from India. Indian cotton fabrics are appreciated worldwide due to their high quality.

5. Consider the following statements: [1999]

Regional disparities in India are high and have been rising in recent years because:

1. There is persistent investment over time only in select locates.

2. Some areas are agro-climatically less conducive to development.

3. Some areas continue to face little or no agrarian transformation and the consequent lack of social and economic opportunities.

4. Some areas have faced continuous political instability.

Which of the above statements are correct?

Correct Answer: (a) 1, 2 & 3
Solution:The most appropriate answer is (a). Investment, weather conditions and agricultural transformation are the best indicators of agricultural development. Political stability plays a very small role in agricultural development.

Factors responsible for regional disparity

• Historical: British policies favoured resource-rich areas (like Kolkata, Mumbai and Chennai), creating economic disparities and regional imbalances that persist in India today.
• Historically, developed states have efficient governance systems, which cannot be easily transferred across regions.
• Geographical: Difficult terrain (e.g., North-Eastern states) raises administration and project costs. Adverse climates, like frequent floods in Bihar and Assam slows down development
• Economic:
ο Dominance of primary economic activities: States with more people in manufacturing and services sectors have higher income compared to those dependent on agriculture.
ο E.g. states such as Maharashtra and Gujarat have higher per capita income as compared to Bihar and Uttar Pradesh.
• Infrastructure Deficit: Poor transportation, banking services etc. limits growth in underdeveloped regions.
• Governance
• Political Instability: Unstable governments and law and order issues discourage investment and lead to capital flight.
• Failure of Planning Mechanisms: Industries prefer locations with established resources such as consistent power and water supply, road and railway infrastructure and skilled labour.

6. Indian farmers are unhappy over the introduction of "Terminator Seed Technology" because the seeds produced by this technology are expected to: [1999]

Correct Answer: (c) give rise to sexually sterile plants
Solution:The terminator gene is a specific genetic sequence inserted into a seed's DNA. Once activated by a synthetic chemical catalyst of the manufacturer's choosing, the sequence renders the seed and crop it produces sterile.

This means that the farmer cannot retain seeds for future crops as is the practice in India. The farmer has to repurchase the seeds at a heavy cost.

7. The correct sequence in decreasing order of the four sugarcane producing States in India is: [2000]

Correct Answer: (b) U. P, Maharashtra, Tamil Nadu, Andhra Pradesh
Solution:The decreasing order of the sugarcane producing States in India is:

Uttar Pradesh- 132427.6842, Maharashtra-69648.0768, Karnataka-35732, Tamil Nadu-33919.17, Andhra Pradesh-15567 (2012-13 Data). According to 2022-23, decreasing order of sugarcane are: Maharashtra, UP, Karnatak and Tamil Nadu.
Production of Sugarcane in India
• India has the largest area under sugarcane cultivation in the world. However, in production, India lags behind Brazil, the world’s largest producer of sugarcane.
• In India, productivity is relatively low compared to Colombia, Peru, Indonesia, Egypt, etc.
• Shortages of fertilisers, improper and untimely application of fertilisers, uncertain weather conditions, inadequate irrigation, inferior cane varieties, small and fragmented land holdings, and outdated cultivation methods contribute significantly to India’s low yields, affecting rice and sugarcane.
• To address these issues, the Sugarcane Research Institute, Coimbatore, introduced ratooning, a technique designed to lower sugarcane cultivation costs.
• In ratooning, this crop is harvested while leaving the roots intact in the soil. This method, which produces a second or subsequent crop from the remaining roots, is widely practised across various country regions.

8. Consider the following statements: [2000]

1. Maharashtra has the highest acreage under Jawar in India

2. Gujarat is the largest producer of groundnut in India.

3. Rajasthan has the largest area of cultivable wastelands in India

4. Andhra Pradesh has the highest per hectare yield of maize  in India

Which of these statements are correct?

Correct Answer: (c) 1 & 3
Solution:Maharashtra has the highest acreage under Jawar in India. Now, Gujarat is the largest producer of groundnut in India with a share of more than 50%. Rajasthan has the largest area of cultivable wastelands in India of around 84,929 sq. km.

Andhra Pradesh has the highest per hectare yield of maize in India followed by Tamil Nadu due to majority of the area being covered under Single Cross Hybrids (SCH.)

9. The annual agricultural production of a product for the period 1991-92 to 1998-99 is shown in the figure given below. Which one of the following is the product in question? [2001]

Correct Answer: (d) Rice
Solution:In the given bar diagram the annual production of "Rice" for the period 1991-92 to 1998-99 is shown.
• India contributes up to 20% of global rice production and is the second largest producer and consumer of rice in the world after China.
• In 2020, the average rice yield in India was 2.7 tonnes/ha, against the global average of 4.374 tonnes/ha. China (6.5), Australia (10), and the US (7.5) led in rice productivity figures.
• India is the largest exporter of rice globally. It replaced Thailand in exports in 2011-12.
• India is also the biggest exporter of basmati rice. The states like Punjab, Haryana and Western Uttar Pradesh produce the best qualities of Basmati Rice.
• The top countries to which India exports (Basmati Rice) are – Saudi Arabia, Iran, Iraq, Yemen etc.

10. In terms of value, which one of the following commodities accounted for the largest agricultural exports by India during the three year period from 1997-1998 to 1999-2000? [2002]

Correct Answer: (b) Marine products
Solution:Largest agricultural exports were of marine products followed by tea and spices.

About Marine Products Export Development Authority:
• It is a statutory body entrusted with the primary task of promotion of export of marine products.
• History: It was set up by an act of Parliament during 1972. The erstwhile Marine Products Export Promotion Council established by the Government of India in September, 1961 was converged into MPEDA on 24th August, 1972.
Functions:
• Developing and regulating off-shore and deep-sea fishing and undertaking measures for the conservation and management of off-shore and deep-sea fisheries;
• Registering fishing vessels, processing plants or storage premises for marine products and conveyances used for the transport of marine products; fixing of standards and specifications for marine products for purposes of export;
• Regulating the export of marine products; registering of exporters of marine products on payment of such fees as may be prescribed;
• Headquarter: Kochi, Kerala
• It has Trade Promotion offices at New Delhi, Tokyo and New York.
• Nodal Ministry: Ministry of Commerce and Industry.