Civil Services Prep

Prelims 2020 · Agriculture · Question 71

In India, which of the following can be considered as public investment in agriculture? 1. Fixing Minimum Support Price for agricultural produce of all crops 2. Computerization of Primary Agricultural Credit Societies 3. Social Capital development 4. Free electricity supply to farmers 5. Waiver of agricultural loans by the banking system 6. Setting up of cold storage facilities by the governments. Select the correct answer using the code given below:

  1. 1, 2 and 5 only
  2. 1, 3, 4 and 5 only
  3. 2, 3 and 6 only
  4. 1, 2, 3, 4, 5 and 6

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.

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