Reviewing AP Inter 2nd Year Economics Study Material Chapter 8 Agriculture and Rural Development Questions and Answers can help students prepare confidently for exams.
AP Inter 2nd Year Economics 8th Lesson Agriculture and Rural Development Questions and Answers
Very Short Answer Questions
Question 1.
Define a major irrigation project.
Answer:
A major irrigation project is an irrigation project with a Cultivable Command Area (CCA) of more than 10,000 hectares. It involves large-scale infrastructure like dams and reservoirs to store and distribute water.
Ex: Srisailam, Pulichintala, Polavaram.
Question 2.
What do you understand by Jeevamrut in farming?
Answer:
Jeevamrut is a microbial culture used in farming to enhance soil fertility and increase microbial activity in the soil. It is a key component of Zero Budget Natural Farming (ZBNF) and promotes sustainable, chemical-free agriculture.
Question 3.
What are the TOP crops?
Answer:
TOP crops refer to Tomato, Onion, and Potato. These are important crops that often face price fluctuations and are given special focus for production and marketing.
Question 4.
What is meant by the term ‘Rainbow Revolution’ in agriculture?
Answer:
The Rainbow Revolution is a collective term describing the growth of agriculture through diversification into various allied activities . It represents different agricultural revolutions like Green, White, Blue, Yellow, etc., ensuring overall development of agriculture.
Question 5.
What is the aim of Prime Minister Dhan-Dhaanya Krishi Yojana?
Answer:
The aim of the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) is to enhance agricultural productivity, promote crop diversification, and encourage sustainable farming practices along with improving irrigation and post-harvest storage.
Question 6.
Explain the Modified Interest Subvention Scheme (MISS)?
Answer:
The Modified Interest Subvention Scheme (MISS) is a government initiative that provides short-term crop loans to farmers through Kisan Credit Cards (KCC) at subsidized interest rates. It aims to ensure affordable farm credit and encourage timely repayment of loans.
Short Answer Questions
Question 1.
Write about the types of land reforms implemented in Indian agriculture.
Answer:
Types of Land Reforms in Indian Agriculture:
1) Abolition of Intermediaries: This reform focused on the abolition of the Zamindari system, where Madras state passed the first legislation in 1917, and Uttar Pradesh implemented it in 1952, resulting in tenants becoming owners as land ownership was transferred directly to cultivators, making it a fully successful reform.
2) Tenancy Reforms: These reforms were implemented to protect tenant farmers with uncertain tenure and non-fixed rents by providing ownership rights to long-term tenants, security of tenure against eviction, and regulation of rent.
3) Land Ceiling: Land ceiling refers to a legal maximum limit on land ownership, where surplus land is acquired and distributed to marginal farmers, landless labourers, and SCs/STs, with limits such as 18 acres (wetland two crops), 27 acres (wetland one crop), and 54 acres (dry land), while plantations (tea, coffee, rubber) b and religious lands are exempted.
4) Consolidation of Holdings: This reform aimed to consolidate fragmented land holdings into viable units through legislation and cooperative farming, encouraging farmers to pool land and resources to overcome small and scattered holdings.
Question 2.
Write the impact of the Green Revolution on Indian economy.
Answer:
Impact of Green Revolution on Indian Economy:
The Green Revolution brought substantial quantitative and qualitative changes in the Indian economy by helping the country achieve self-sufficiency in food grain production.
- It led to a massive increase in food grain production, rising from 82 million tonnes in 1965 to 329.7 million tonnes by FY23.
- There was a rise in commercial crops and adoption of new farm techniques, improving overall agricultural output.
- It created enhanced employment opportunities due to multiple cropping and labour- intensive practices. „
- It strengthened forward and backward linkages with industries by supplying raw materials and using Inputs like fertilizers and machinery.
- It improved rural living standards, increasing farmers’ income and MPCE.
- The electronic National Agriculture Market (e-NAM) is a pan-India electronic trading
Question 3.
What is meant by regulated markets? State it’s objectives.
Answer:
Regulated markets, also known as Agricultural Produce Market Committees (APMCs), are wholesale markets established under state-level legislation to ensure fair trade between farmers and buyers. These markets are governed by State Agricultural Marketing Boards, where buying and selling are supervised by Market Committees.
Objectives of Regulated Markets:
- To eliminate malpractices carried out by middlemen and traders.
- To ensure fair pricing and better market access so farmers receive proper value for their produce.
- To maintain transparency in transactions between farmers and buyers.
- To ensure quality control and grading of agricultural products.
- To provide prompt payment to farmers after sale.
- To ensure standardized weights and measures.
- To provide infrastructure facilities like storage and transport.
- To reduce marketing costs for farmers.
Question 4.
Write a note on “e-NAM”.
Answer:
e-NAM:
- The electronic National Agriculture Market (e-NAM) is a pan-India electronic trading portal launched by the Government of India in 2016 to create a unified national market for agricultural commodities.
- It is a virtual platform that integrates existing physical wholesale mandis across States and UTs to facilitate online trading of agricultural goods.
- The primary objective of e-NAM is to enable farmers to secure better prices through a transparent price discovery mechanism. It is implemented by the Small Farmers Agribusiness Consortium (SFAC) under the Ministry of Agriculture and Farmers’ Welfare.
- As of June 30,2025,1,522 mandis have been onboarded, over 1.79 crore farmers are registered, and the total trade value has reached14,39,941 crore
- e-NAM promotes efficient and transparent agricultural marketing while reducing the role of exploitative middlemen.
Question 5.
Comment on any two measures taken for rural development in India.
Answer:
Measures for Rural Development in India:
1) Pradhan Mantri Gram Sadak Yojana (PMGSY):
- Launched in 2000, this flagship scheme aims to provide all-weather road connectivity to previously unconnected rural habitations.
- Improved road connectivity has significantly enhanced access to markets, healthcare, and education, thereby reducing isolation of rural areas.
- It has also boosted rural employment and encouraged non-farm activities, contributing to overall economic growth.
- The programme has connected over 1.7 lakh habitations and constructed about 17.5 lakh kilometers of roads, with recent phases focusing on green and climate-resilient infrastructure.
2) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):
- Launched in 2006, this scheme provides a legal guarantee of 100 days of wage employment per year to rural households willing to do unskilled manual work.
- It promotes social inclusion by ensuring employment opportunities for SCs, STs, and women, thereby reducing poverty and income inequality.
- In 2023-24, about 1.23 crore households were provided employment generating 16.34 crore person-days of work.
- In addition to income support, the scheme has led to the creation of durable rural assets (about 9.06 crore), improving infrastructure and long-term productivity in rural areas.
Question 6.
Write any four institutional sources of agriculture credit in India.
Answer:
Institutional Sources of Agricultural Credit in India:
1) Cooperative Credit Societies: This is a three-tier system consisting of Primary Agriculture Cooperative Credit Societies (PACs) at the village level, District Central Cooperative Banks (DCBs) at the district level, and State Cooperative Banks (SCBs) at the state level. These institutions mainly provide short-term and medium-term farm credit for inputs like seeds, fertilizers, and irrigation, and are especially useful for small and marginal farmers due to their local presence.
2) Commercial Banks: Commercial banks provide short, medium, and long-term agricultural credit for various purposes such as crop production, purchase of machinery, and land development. They are mandated by the RBI to allocate 18% of their Priority Sector Lending to agriculture, and they dominate long-term credit with about 59% share, making them a major source of institutional finance.
3) Regional Rural Banks (RRBs): Established in 1975, RRBs provide credit at low interest rates in rural and semi-urban areas. Their main objective is to support small and marginal farmers, agricultural labourers, and rural artisans, thereby promoting financial inclusion and rural development. They bridge the gap between commercial banks and rural borrowers.
4) National Bank for Agriculture and Rural Development (NABARD): Established in 1982, NABARD is the apex institution for agricultural and rural credit. It does not lend directly to farmers but provides refinance and financial support to state governments, cooperative banks, and RRBs. It also promotes Self-Help Groups (SHGs) and Farmer Producer Organizations (FPOs), strengthening the rural credit system and encouraging sustainable agriculture.
Long Answer Questions
Question 1.
Explain the various agriculture-allied activities in Indian economy.
Answer:
Agriculture Allied Activities in Indian Economy:
Agriculture includes several allied activities beyond crop cultivation, such as horticulture, animal husbandry, dairying, and fisheries. These activities support food security, employment, income generation, exports, and reduce dependence on seasonal farming.
1) Horticulture and Floriculture
- Horticulture involves the production of fruits, vegetables, flowers, and spices. It is a high-value sector that provides higher income per unit of land. India is the second-largest producer of fruits and vegetables.
- Floriculture, known as a “sunrise industry,” enjoys 100% export-oriented status and offers high profit potential. It generates employment in cultivation, processing, and marketing.
2) Fisheries and Aquaculture
- Fisheries include inland and marine fish production, while aquaculture involves the breeding and rearing of aquatic organisms.
- India is the second-largest fish and aquaculture producer, contributing about 8% of global fish production.
- The sector provides livelihood to over 2.8 crore fishers, ensures nutritional security, and earned ₹ 63,969 crore through exports in 2022-23.
- Schemes like PMMSY improve infrastructure, productivity, and fishers’ welfare.
3) Dairy Farming:
- Dairy farming deals with the production of milk and milk products. India is the largest producer and consumer of milk, contributing about 24-25% of global production.
- It is a major source of rural livelihood and provides regular income to farmers.
- Dairy also improves nutrition, with per capita milk availability around 450 grams per day in 2022-23.
4) Other Allied Activities
- Animal Husbandry: Rearing livestock for milk, meat, and other products.
- Forestry: Provides timber, fuel, and ecological benefits.
- Poultry, Beekeeping, and Sericulture: Require low investment, generate employment, and support exports.
5) Rainbow Revolution
- The Rainbow Revolution represents the growth of diversified agricultural sectors such as White Revolution (milk), Blue Revolution (fish), Golden Revolution (horticulture and honey), and Silver Revolution (eggs).
- It has increased farmers’ income, reduced poverty, strengthened food and nutritional security,
and promoted sustainable agricultural development.
Question 2.
Explain about the Minimum Support Prices in Agriculture.
Answer:
Minimum Support Prices (MSPs) in Agriculture:
Minimum Support Prices (MSPs) are guaranteed prices announced by the Government of India for selected crops to protect farmers from price fluctuations and ensure a minimum income. MSP provides price assurance and encourages agricultural production.
1) Recommending Authority
- The Commission for Agricultural Costs and Prices (CACP) recommends MSPs. It was established as the Agricultural Prices Commission in 1965 and renamed in 1985.
- The CACP studies production costs, market conditions, and other economic factors before recommending MSPs, which are announced before the sowing season.
2) Calculation Methodology
MSP is determined by estimating production costs and adding a profit margin. The main cost concepts are:
- A2 Cost: Includes direct expenses such as seeds, fertilizers, pesticides, hired labour, fuel, and irrigation.
- A2 + FL Cost: Includes A2 plus the value of unpaid family labour. MSP is generally fixed at least 50% above this cost.
- C2 Cost: Includes A2 + FL along with rental value of owned land and interest on fixed capital. The Swaminathan Committee recommended MSP at least 50% above C2.
This system helps farmers recover costs and earn a reasonable return.
3) Factors Considered in Determination
- Market trends and demand, to balance supply and avoid surplus or shortage.
- Inter-crop price parity, to maintain a proper price relationship between different crops.
- Inflation and overall economic conditions, ensuring MSP keeps pace with rising costs.
- Terms of Trade (ToT) between agriculture and other sectors.
- Recommendations of expert committees and policy bodies.
4) Implementation and Related Schemes
- Price Support Scheme (PSS): Procurement of pulses, oilseeds, and cotton when market prices fall below MSP.
- Market Intervention Scheme (MIS): Support for perishable crops like onions and tomatoes during sharp price declines.
- PM-AASHA: Ensures better MSP realization through procurement and price support measures.
Question 3.
What are the causes for low productivity in agriculture in India? Suggest some measures to improve it.
Answer:
Agricultural productivity refers to the average output or yield per hectare of land. Though productivity has improved since Independence, it remains low compared to global standards due to several structural, institutional, and technological constraints.
I) Causes for Low Productivity in Agriculture
I) Small and Fragmented Landholdings
- The average landholding size is only about 0.74 hectares (2021 -22), and nearly 90% of farmers are small or marginal farmers.
- Small and scattered holdings make the use of modern machinery and scientific farming uneconomical.
2) Monsoon Dependency:
- About 50-60% of agricultural land depends on rainfall.
- Irregular monsoons, droughts, and floods cause unstable production, making agriculture a “gamble on monsoon.”
3) Traditional Farming Techniques
- Many farmers still use traditional methods and low levels of mechanization.
- This leads to inefficient use of resources and low productivity.
4) Land Tenure and Historical Neglect
- During the British period, agriculture, especially irrigation, received little attention.
- Unequal land distribution and insecure tenancy discouraged investment in land improvement.
5) Subsistence Farming and Disguised Unemployment
- Most farmers produce mainly for self-consumption rather than the market.
- Excess labour in agriculture results in disguised unemployment and low labour productivity.
II) Measures to Improve Agricultural Productivity
- Green Revolution: Introduction of HYV seeds, fertilizers, pesticides, and mechanization significantly increased agricultural production, particularly of wheat and rice.
- Expansion of Irrigation: Development of irrigation projects and schemes like PM Krishi Sinchayee Yojana reduce rainfall dependence and improve water-use efficiency.
- Land Reforms: Abolition of intermediaries, tenancy reforms, and consolidation of holdings promote efficient land use and adoption of modern practices.
- Institutional Credit: Credit through Commercial Banks, RRBs, Cooperatives, and Kisan Credit Cards (KCC) enables farmers to invest in better inputs and technology.
- Subsidies and Extension Services: Subsidized seeds, fertilizers, electricity, and farmer training programs help reduce costs and encourage scientific farming.
- Recent Mission-Mode Initiatives:
- PM Dhan-Dhaanya Krishi Yojana (PMDDKY): Improves productivity in underperforming districts.
- PM-RAFTAAR: Promotes agri-entrepreneurship and infrastructure development.
- PKVY and Zero Budget Natural Farming (ZBNF): Encourage sustainable, low-cost farming and improve long-term soil health.
Multiple Choice Questions
Question 1.
According to the Economic survey 2024-25, the per capita net availability of food grains in 2022-23 (in grams):
1) 468.11
2) 520,56
3) 511.7
4) 568.8
Answer:
4) 568.8
Question 2.
Who is considered as the father of Green Revolution?
1) M.S. Swaminathan
2) Prof.Norman Borlog
3) W.S.Gaud
4) B.F.John & J. Cowrie
Answer:
2) Prof.Norman Borlog
Question 3.
What are the two Umbrella Schemes approved by the Union Cabinet on 03-10-2024 for rationalisation of all centrally sponsored schemes operating under the Ministry of Agriculture and farmers?
1) Krishonnati Yojana (KY) and PM RKVYRAFTAR
2) PM-KISSAN and PM RKVY RAFTAR
3) PM-KUSUM and PM RKVY RAFTAR
4) Krishonnati Yojana (KY) and PM – KISSAN
Answer:
1) Krishonnati Yojana (KY) and PM RKVYRAFTAR
Question 4.
In the Union budget 2025-26, the enhanced loan limit of the Kisan Credit Card (KCC) is:
1) 3 lakhs
2) 4 lakhs
3) 5 lakhs
4) 6 lakhs
Answer:
3) 5 lakhs
Question 5.
Which of the following commissions recommends Minimum Support Prices (MSPs):
1) The Commission for Agriculture Costs (CAC)
2) The Commission for Agriculture Costs and Prices (CACP)
3) The Commission for Agriculture Prices (CAP)
4) The Commission for Agriculture Marketing (CAM)
Answer:
2) The Commission for Agriculture Costs and Prices (CACP)
Question 6.
Which of the following is identified as a sunrise industry with 100 export-oriented status?
1) Sericulture
2) Floriculture
4) Pisciculture
4) Dairy
Answer:
2) Floriculture
Question 7.
Which of the following statements is correct?
1) India is the world’s largest producer of milk.
2) India is the largest consumer of milk.
3) India is the largest producer of dairy products.
4) All three are true
Answer:
4) All three are true
Question 8.
The scheme that was launched to provide electricity for domestic consumption as well as for agriculture is
1) PM-KUSUM
2) PGGCY
3) PM-JAY
4) SAUBHAGYA
Answer:
4) SAUBHAGYA
Question 9.
Feature of a mission mode programme:
1) Fixed timeframe
2) Target driven with a specific problem or challenge
3) Measurable outcome
4) All three of the above
Answer:
4) All three of the above
Question 10.
RAFTAAR scheme aims to:
1) Make agriculture more remunerative
2) Increase productivity of food crops
3) Intervene to support farmers when prices of food crops fall
4) Protect agriculture from disasters.
Answer:
1) Make agriculture more remunerative
Fill in the Blanks
Question 1.
______________ committee recommended for the establishment of the NABARD.
Answer:
Sivaranman Committee
Question 2.
PM-KUSUM scheme provides ______________ security to farmers.
Answer:
energy
Question 3.
______________ is an apex bank for providing credit to agriculture sector.
Answer:
NABARD
Question 4.
______________scheme was launched to finance marketing and post harvest infrastructure.
Answer:
Agri Infrastructure fund
Question 5.
______________ Revolution relates to the production of oil seeds.
Answer:
Yellow
One Word Answers
Question 1.
What do you call the surplus of produce available to the farmers after meeting all their requirements?
Answer:
Marketable surplus
Question 2.
Which agency implements eNAM?
Answer:
Small Farmers Agribusiness Consortium (SFAC)
Question 3.
Which scheme has been started by the Government of India for promoting organic farming?
Answer:
Paramparagat Krishi Vikas Yojana (PKVY)
Question 4.
What do you call the practice under natural farming, to provide natural treatment to seeds?
Answer:
Beejamrut
Question 5.
What is the motto of Pradhan Mantri Krishi Sinchayee Yojana’?
Answer:
Har Khet Ko Pani