Agricultural Subsidies Laws

Description: This quiz covers the key aspects of Agricultural Subsidies Laws in India. Test your knowledge on the legal framework, types of subsidies, their impact, and the challenges associated with them.
Number of Questions: 15
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In India, the primary legislation governing agricultural subsidies is the:

  1. Agricultural Produce Market Committee Act, 1966

  2. Agricultural Subsidies Act, 2007

  3. National Food Security Act, 2013

  4. Minimum Support Price (MSP) Act, 2018


Correct Option: B
Explanation:

The Agricultural Subsidies Act, 2007, is the primary legislation in India that governs the provision of subsidies to the agricultural sector.

Which of the following is NOT a type of agricultural subsidy provided by the Indian government?

  1. Input subsidies

  2. Output subsidies

  3. Price support

  4. Crop insurance


Correct Option: D
Explanation:

Crop insurance is not a type of agricultural subsidy provided by the Indian government. It is a risk management tool that helps farmers protect themselves against crop losses due to natural calamities or other unforeseen events.

The Minimum Support Price (MSP) is a type of:

  1. Input subsidy

  2. Output subsidy

  3. Price support

  4. Direct payment


Correct Option: C
Explanation:

The Minimum Support Price (MSP) is a type of price support subsidy provided by the Indian government to farmers. It ensures that farmers receive a minimum price for their produce, regardless of market conditions.

The main objective of providing agricultural subsidies is to:

  1. Increase agricultural production

  2. Reduce the cost of agricultural inputs

  3. Stabilize agricultural prices

  4. All of the above


Correct Option: D
Explanation:

The main objective of providing agricultural subsidies is to increase agricultural production, reduce the cost of agricultural inputs, and stabilize agricultural prices.

What is the impact of agricultural subsidies on the environment?

  1. They can lead to overproduction and resource depletion

  2. They can encourage the use of harmful chemicals and pesticides

  3. They can contribute to water pollution

  4. All of the above


Correct Option: D
Explanation:

Agricultural subsidies can lead to overproduction and resource depletion, encourage the use of harmful chemicals and pesticides, and contribute to water pollution.

What are the challenges associated with the implementation of agricultural subsidies?

  1. Targeting the right beneficiaries

  2. Preventing leakages and corruption

  3. Ensuring the sustainability of subsidies

  4. All of the above


Correct Option: D
Explanation:

The challenges associated with the implementation of agricultural subsidies include targeting the right beneficiaries, preventing leakages and corruption, and ensuring the sustainability of subsidies.

Which of the following is NOT a measure taken by the Indian government to reform agricultural subsidies?

  1. Rationalization of subsidies

  2. Direct benefit transfer (DBT)

  3. E-procurement of agricultural produce

  4. Increasing the MSP


Correct Option: D
Explanation:

Increasing the MSP is not a measure taken by the Indian government to reform agricultural subsidies. It is a measure to provide price support to farmers.

What is the significance of the Direct Benefit Transfer (DBT) scheme in agricultural subsidies?

  1. It reduces leakages and corruption

  2. It ensures that subsidies reach the intended beneficiaries directly

  3. It promotes transparency and accountability

  4. All of the above


Correct Option: D
Explanation:

The Direct Benefit Transfer (DBT) scheme in agricultural subsidies reduces leakages and corruption, ensures that subsidies reach the intended beneficiaries directly, and promotes transparency and accountability.

What is the role of the Agricultural Costs and Prices Commission (CACP) in agricultural subsidies?

  1. It recommends the MSP for various agricultural commodities

  2. It monitors the implementation of agricultural subsidies

  3. It provides advice to the government on agricultural policy

  4. All of the above


Correct Option: D
Explanation:

The Agricultural Costs and Prices Commission (CACP) recommends the MSP for various agricultural commodities, monitors the implementation of agricultural subsidies, and provides advice to the government on agricultural policy.

What is the impact of agricultural subsidies on the agricultural sector in India?

  1. They have helped to increase agricultural production

  2. They have stabilized agricultural prices

  3. They have reduced the cost of agricultural inputs

  4. All of the above


Correct Option: D
Explanation:

Agricultural subsidies in India have helped to increase agricultural production, stabilize agricultural prices, and reduce the cost of agricultural inputs.

What are the challenges faced by the Indian government in reforming agricultural subsidies?

  1. Political considerations

  2. Lack of resources

  3. Resistance from farmers' groups

  4. All of the above


Correct Option: D
Explanation:

The Indian government faces challenges in reforming agricultural subsidies due to political considerations, lack of resources, and resistance from farmers' groups.

What is the future of agricultural subsidies in India?

  1. They will continue to play an important role in the agricultural sector

  2. They will be gradually reduced

  3. They will be replaced by other forms of support to farmers

  4. It is uncertain


Correct Option: D
Explanation:

The future of agricultural subsidies in India is uncertain. It depends on various factors such as the government's fiscal situation, the performance of the agricultural sector, and the demands of farmers' groups.

Which of the following is NOT a type of agricultural subsidy provided by the Indian government?

  1. Fertilizer subsidy

  2. Seed subsidy

  3. Irrigation subsidy

  4. Electricity subsidy


Correct Option: D
Explanation:

Electricity subsidy is not a type of agricultural subsidy provided by the Indian government. It is a general subsidy provided to all consumers of electricity, including farmers.

What is the main objective of the National Food Security Act, 2013?

  1. To provide food security to the poor and vulnerable sections of the population

  2. To promote agricultural production

  3. To stabilize agricultural prices

  4. To provide subsidies to farmers


Correct Option: A
Explanation:

The main objective of the National Food Security Act, 2013, is to provide food security to the poor and vulnerable sections of the population.

Which of the following is NOT a type of agricultural subsidy provided by the Indian government?

  1. Crop insurance subsidy

  2. Interest subvention on agricultural loans

  3. Subsidy on agricultural machinery

  4. Subsidy on diesel used in agriculture


Correct Option: D
Explanation:

Subsidy on diesel used in agriculture is not a type of agricultural subsidy provided by the Indian government.

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