Agriculture & Food Economy

Overview

Food security rests on price support, public procurement and distribution, backed by legal entitlements and income support.

Key points

• The Commission for Agricultural Costs and Prices (CACP) recommends MSPs; the Cabinet Committee on Economic Affairs approves them.
• The Food Corporation of India was set up in 1965.
• NFSA (2013) covers up to 75% of rural and 50% of urban population; 5 kg of foodgrains per person per month for priority households.
• PM-KISAN (2019) provides ₹6,000 a year in three instalments to eligible farmer families.
• e-NAM (2016) is an online national agricultural market platform.
• The Green Revolution (1960s) spread high-yielding varieties of wheat and rice with irrigation and fertilisers.

Practice MCQs

1. From the perspective of definition and scope, which one of the following statements about Agriculture & Food Economy is correct?

   1. Agriculture & Food Economy is unrelated to institutions, processes or real-world applications.
   2. Agriculture & Food Economy has no exceptions or limitations in exam analysis.
   3. Agricultural outcomes depend on productivity, irrigation, input markets, risk, storage, logistics and price realization.
   4. Announcement of MSP guarantees physical procurement of every unit of every crop produced in India.

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   Answer: (c) Agricultural outcomes depend on productivity, irrigation, input markets, risk, storage, logistics and price realization.. Agricultural outcomes depend on productivity, irrigation, input markets, risk, storage, logistics and price realization.

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2. Consider the following statements on Agriculture & Food Economy, focusing on definition and scope: 1. Agricultural outcomes depend on productivity, irrigation, input markets, risk, storage, logistics and price realization. 2. Announcement of MSP guarantees physical procurement of every unit of every crop produced in India. Which of the statements given above is/are correct?

   1. 1 only
   2. 2 only
   3. Both 1 and 2
   4. Neither 1 nor 2

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   Answer: (a) 1 only. Statement 1 is correct; Statement 2 is a common misconception.

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More topics in this chapter

• Money and banking
• Balance of Payments
• Taxation & GST