UPSC CSE Prelims
Role of Agriculture in Economy Previous Year Questions (PYQs)
Practice solved questions for Role of Agriculture in Economy with detailed step-by-step solutions, key insights, and trend analysis for UPSC CSE PRELIMS.
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Consider the following statements:
Statement-I: India does not import apples from the United States of America.
Statement-II : In India, the law prohibits the import of Genetically Modified food without the approval of the competent authority.
Which one of the following is correct in respect of the above statements?
Detailed Explanation:
Answer: Option 4 — Statement-I is incorrect, but Statement-II is correct
This question tests knowledge about India's import policies and regulatory framework for genetically modified foods. Statement-I incorrectly claims that India does not import apples from the USA, whereas the USA is actually one of the major sources of apple imports for India. Statement-II correctly describes India's legal framework regarding GM food imports.
❌ Statement-I – Incorrect: India does import apples from the United States of America. The USA is among the top sources of apple imports for India, along with countries like China, Turkey, and Italy.
✅ Statement-II – Correct: Indian law prohibits the import of Genetically Modified food without approval from the competent authority. The Genetic Engineering Appraisal Committee (GEAC) under the Ministry of Environment, Forest and Climate Change is the statutory body responsible for assessing and approving GM crops and food imports.
📝 Short Notes: GM Food Regulation in India
- Regulatory Authority: Genetic Engineering Appraisal Committee (GEAC) is the apex body for approval of activities involving large-scale use of hazardous microorganisms and recombinants in research and industrial production.
- Legal Framework: The Rules for the Manufacture, Use, Import, Export and Storage of Hazardous Microorganisms, Genetically Engineered Organisms or Cells (1989) under the Environment Protection Act, 1986 govern GM regulation.
- Import Requirements: All GM food imports require prior approval from GEAC and must comply with the Food Safety and Standards Act, 2006.
- FSSAI Role: Food Safety and Standards Authority of India (FSSAI) is responsible for food safety standards, including labeling requirements for GM foods.
- Current Status: India imports GM soybean oil and canola oil but has not approved any GM food crops for cultivation except Bt Cotton (not a food crop).
Consider the following statements:
- India has more arable area than China.
- The proportion of irrigated area is more in India as compared to China.
- The average productivity per hectare in Indian agriculture is higher than that in China.
How many of the above statements are correct?
Detailed Explanation:
Answer: Option 1 — Only one
Among the three statements about agricultural characteristics of India and China, only Statement 1 is correct. India indeed has more arable land than China (approximately 157 million hectares vs. 119 million hectares). However, China has both a higher proportion of irrigated land and higher agricultural productivity per hectare compared to India.
✅ Statement 1 – Correct: India has more arable area (157 million hectares) than China (119 million hectares) according to FAO data.
❌ Statement 2 – Incorrect: China has a higher proportion of irrigated land compared to India due to extensive irrigation infrastructure and projects implemented over decades.
❌ Statement 3 – Incorrect: China's average agricultural productivity per hectare is significantly higher than India's due to better technology adoption, modern farming practices, superior infrastructure, and effective agricultural policies.
📝 Short Notes: India vs China - Agricultural Comparison
| Parameter | India | China |
|---|---|---|
| Arable Land Area | ~157 million hectares (More) | ~119 million hectares |
| Proportion of Irrigated Land | ~48-50% of arable land | ~65-70% of arable land (Higher) |
| Agricultural Productivity | Lower per hectare yield | Higher per hectare yield |
| Key Factors | Traditional practices, fragmented holdings, limited mechanization | Modern technology, better infrastructure, intensive farming |
| Cereal Yield (approx.) | ~3,000 kg/hectare | ~6,000 kg/hectare |
With reference to chemical fertilizers in India, consider the following statements:
- At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.
- Ammonia, which is an input of urea, is produced from natural gas.
- Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil refineries.
Select the correct answer using the code given below:
Detailed Explanation:
Answer: Option 2 — 2 and 3 only
Statements 2 and 3 are correct, while Statement 1 is incorrect. The Government of India maintains significant control over fertilizer pricing through subsidy mechanisms and policies like the New Urea Policy 2015, ensuring agricultural affordability and self-sufficiency. Ammonia, a critical input for urea production, is indeed produced from natural gas through industrial processes. Sulphur, essential for phosphoric acid fertilizer production via the Wet Process, is naturally generated as a by-product during crude oil refining and gas processing operations.
✅ Statement 2 – Correct: Ammonia is produced from natural gas and accounts for 90% of energy consumption in fertilizer production, being a key ingredient in nitrogen fertilizers.
✅ Statement 3 – Correct: Sulphur is a major by-product of oil refining and gas processing, used in phosphoric acid fertilizer production through the Wet Process.
❌ Statement 1 – Incorrect: Fertilizer prices in India are not fully market-driven; the Government subsidizes and administers prices through policies like the New Urea Policy 2015 to ensure affordability and agricultural self-sufficiency.
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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:
Detailed Explanation:
Answer: Option 3 — 2, 3 and 6 only
Public investment in agriculture refers to government capital expenditure aimed at creating infrastructure, institutional support, and technological improvements that enhance agricultural productivity and efficiency. It excludes policy measures like subsidies, price support mechanisms, or loan waivers that do not constitute direct capital formation.
❌ Statement 1 – Incorrect: Fixing Minimum Support Price (MSP) is a policy instrument for price support, not a capital investment in agricultural infrastructure or assets.
✅ Statement 2 – Correct: Computerization of Primary Agricultural Credit Societies (PACS) involves government expenditure on technology and institutional modernization, qualifying as public investment.
✅ Statement 3 – Correct: Social capital development includes building institutional networks, training programs, and community resources that improve agricultural productivity, representing public investment.
❌ Statement 4 – Incorrect: Free electricity supply to farmers is a subsidy or revenue expenditure, not a capital investment in agricultural infrastructure.
❌ Statement 5 – Incorrect: Waiver of agricultural loans is a debt relief measure affecting government finances but does not create new capital assets or infrastructure in agriculture.
✅ Statement 6 – Correct: Setting up cold storage facilities by the government is direct capital expenditure on agricultural infrastructure aimed at reducing post-harvest losses.
📝 Short Notes: Public Investment in Agriculture
- Public Investment: Government capital expenditure creating durable assets, infrastructure, and institutional capacity in the agricultural sector.
- Components: Includes irrigation infrastructure, rural roads, cold storage facilities, warehouses, research institutions, extension services, and agricultural credit infrastructure.
- vs. Subsidies: Public investment creates assets (capital formation), while subsidies like free electricity or fertilizer subsidies are revenue expenditures without asset creation.
- vs. Policy Measures: MSP, loan waivers, and procurement policies are support mechanisms but not direct investments in infrastructure.
- Social Capital: Investment in human resources, institutions, farmer cooperatives, training programs, and knowledge networks that enhance productivity.
- Impact: Public investment in agriculture improves productivity, reduces risks, enhances market access, and contributes to long-term agricultural growth.
Consider the following statements:
- In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
- In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
Which of the statements given above is/are correct?
Detailed Explanation:
Answer: Option 4 — Neither 1 nor 2
Both statements present incorrect characterizations of the Minimum Support Price (MSP) mechanism in India. Statement 1 incorrectly claims unlimited procurement across all cereals, pulses, and oilseeds, while Statement 2 misunderstands MSP as a price ceiling rather than a floor price.
❌ Statement 1 – Incorrect: Procurement at MSP is not unlimited for all cereals, pulses, and oilseeds; while wheat and rice have open-ended procurement in certain states, most pulses and oilseeds are procured under the Price Support Scheme (PSS) with specific targets and storage constraints.
❌ Statement 2 – Incorrect: MSP functions as a floor price (minimum guarantee) and not a ceiling; market prices can and do rise above MSP based on demand-supply dynamics, and MSP does not prevent price increases.
📝 Short Notes: Minimum Support Price (MSP)
- Definition: MSP is the minimum price guaranteed by the government to purchase agricultural produce from farmers, serving as a safety net against price crashes.
- Coverage: MSP is currently announced for 23 crops including 7 cereals (paddy, wheat, barley, jowar, bajra, maize, ragi), 5 pulses (gram, tur/arhar, moong, urad, lentil/masur), 7 oilseeds (groundnut, rapeseed-mustard, soybean, sunflower, sesamum, safflower, nigerseed), and 4 commercial crops (cotton, sugarcane, copra, raw jute).
- Recommendation Body: Commission for Agricultural Costs and Prices (CACP) recommends MSP based on various factors including cost of production, demand-supply conditions, market prices, and inter-crop price parity.
- 2018-19 Policy: Government announced that MSP would be fixed at least 1.5 times the all-India weighted average cost of production (A2+FL cost), ensuring minimum 50% returns over production cost.
- Procurement Mechanism: Open-ended procurement primarily for rice and wheat through FCI and state agencies; for most other crops, procurement is done under Price Support Scheme (PSS) with quantity limits.
- MSP as Floor Price: MSP acts as a minimum price guarantee, not a maximum; market prices can rise above MSP based on demand, quality, and market conditions.
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