Prelims 2020 · Agriculture · Question 71
In India, which of the following can be considered as public investment in agriculture?
- Fixing Minimum Support Price for agricultural produce of all crops
- Computerization of Primary Agricultural Credit Societies
- Social Capital development
- Free electricity supply to farmers
- Waiver of agricultural loans by the banking system
- Setting up of cold storage facilities by the governments.
Select the correct answer using the code given below:
Answer
2, 3 and 6 only
1. Fixing MSP for agricultural produce of all crops — MSP is a price policy/support measure, not creation of capital assets or investment in agriculture. Incorrect.
2. Computerization of Primary Agricultural Credit Societies — This improves rural credit infrastructure and institutional capacity; it is a form of public investment in agricultural support systems. Correct.
3. Social Capital development — Building farmer groups/cooperatives/community institutions strengthens agricultural production systems and is treated as investment in rural/agricultural development. Correct.
4. Free electricity supply to farmers — This is a subsidy/revenue support, not investment creating productive assets. Incorrect.
5. Waiver of agricultural loans by the banking system — Loan waiver is financial relief, not capital formation or public investment. Incorrect.
6. Setting up of cold storage facilities by the governments — Cold storage is agricultural infrastructure, clearly a public investment. Correct.
Hence, the correct set is 2, 3 and 6 only.