1. Consider following statements w.r.t. agriculture Census:

1. Farmers having below 2-hectares land are categorised as Marginal Farmers.

2. Farmers having more than 5-hectares land are categorised as Large Farmers.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Ans: a

2. Vaikunth Mehta National Institute of Cooperative Management (VAMNICOM) is under administrative control of :

(a) Ministry of Human resource development

(b) Ministry of Agriculture

(c) Ministry of Rural development

(d) Ministry of finance

Ans: b

Exp: Option b is correct.

3. Consider the following statements w.r.t. Electronic National Agriculture Market (e-NAM) :

1. It is funded by the Central Government and State Governments in the ratio of 50:50.

2. It creates a national network of major mandis which can be accessed physically.

Which statement/statements given above is/are correct?

Select the correct answer using the codes given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) None

Ans: d

Exp: Electronic National Agriculture Market (e-NAM) is a Pan-India electronic trading portal launched in 2016 completely funded by the Central Government and implemented by SmallFarmers’; Agribusiness Consortium (SFAC). It creates a national network of physical mandis which can be accessed online thus enabling buyers, situated even outside the State, to participate in trading at the local level.

4. Which of the following are mechanisms of agriculture credit in India :

(a) Priority sector lending

(b) Interest subvention scheme

(c) Kisan credit scheme

(d) All

Ans: d

Exp:

Priority Sector Lending: PSL was introduced to ensure that vulnerable sections of the society get access to credit and that there is an adequate flow of credit to employment intensive sectors like agriculture and MSME.

Interest Subvention Scheme (ISS) was launched for short term crop loans in 2006-07. 2 % interest subvention is given to farmers, which is reimbursed to banks (through RBI and NABARD).

Kisan Credit Card (KCC) Scheme, introduced in 1998, aimed at providing adequate and timely credit with flexible and simplified procedure for agriculture related and also consumption requirements of farmer households

5. Which of the following can be the impact of farm loan waivers?

1. Can boost agricultural productivity in short-term

2. Can impact banking sector balance sheet

3. Can decrease credit to agriculture R&D

(a) all

(b) 1 and 2

(c) 2 and 3

(d) 1 and 3

Ans : a

Exp : Economic rationale for loan waivers comes from alleviating debt over hang of beneficiaries thus enabling them to undertake productive investment and boost real economic activity (investment, production and consumption). Creates moral hazardas loan waivers lead to poor loan performance and destroy honest credit culture, as it incentivizes borrowers to default strategically in anticipation of future bailouts. Waivers skew credit allocation as banks reallocate lending to lower risk borrower segments. Frequent write-offs impact financial health of banking sector. Prompts banks to invest in Rural Infrastructure Development Fund rather than reaching out to cultivator to meet their PSL targets, reducing credit access