MCQ
Agricultural Procurement MCQ - Practice Questions with Answers
Solve 84 Agricultural Procurement questions for RAS/RPSC preparation.
Practice questions
Q1Consider the following statements: 1. In CP mode, foodgrain procurement is carried out by FCI and State agencies, and State agencies hand over the procured foodgrains to FCI. 2. In DCP mode, procurement and distribution of foodgrains under Central Schemes lie with the State Government. 3. Under DCP, an MoU is signed between the State and DFPD. 4. In DCP mode, if there is a deficit, the State must meet it from open-market imports rather than from FCI. Which of the statements given above are correct?
Statements 1, 2 and 3 are correct. Statement 4 is false because under DCP, if there is a deficit, the same is supplied by FCI.
Q2Consider the following statements: 1. PPSS under PM-AASHA was framed as an oilseeds option for States on a pilot basis in selected districts or APMCs. 2. In PPSS, the selected private agency procures the commodity at MSP in notified markets when market prices fall below the notified MSP and authorization is given. 3. The PIB release capped maximum service charges under PPSS at up to 15% of the notified MSP. 4. PPSS was designed for compulsory nationwide procurement of all cereals by private stockists. Which of the statements given above are correct?
Statements 1, 2 and 3 are correct. Statement 4 is false because the cited design is an oilseeds pilot in selected districts/APMCs, not compulsory nationwide procurement of all cereals.
Q3Consider the following statements about the Price Support Scheme under PM-AASHA: 1. PSS is operationalised on the request of the concerned State or Union Territory Government when market prices of notified pulses, oilseeds and copra fall below MSP during peak harvesting period. 2. Under PSS, eligible commodities conforming to prescribed FAQ standards are procured by designated Central Nodal Agencies such as NAFED and NCCF through State-level agencies. 3. PSS procurement is carried out directly from pre-registered farmers who possess valid land records. 4. PSS is implemented automatically by FCI alone whenever the market price of wheat falls below MSP. Which of the statements given above are correct?
Statements 1, 2 and 3 are correct. PSS is request-based, applies when prices of notified pulses, oilseeds and copra fall below MSP, and operates through designated CNAs such as NAFED and NCCF via State-level agencies for pre-registered farmers with valid land records. Statement 4 is incorrect because it wrongly shifts PSS to automatic wheat procurement by FCI alone.
Q4Consider the following statements: 1. While recommending MSPs, CACP considers cost of production, demand-supply conditions, domestic and international prices and inter-crop price parity, among other factors. 2. The inclusion of crops under the MSP framework depends only on whether they are export-oriented cash crops. 3. The Union Budget for 2018-19 announced the principle of keeping MSPs at one and half times the cost of production. 4. Relatively large shelf life and essentiality for food security are cited as factors for inclusion under the MSP framework. Which of the statements given above are correct?
Statements 1, 3 and 4 are correct. Statement 2 is false because the source lists several inclusion factors such as shelf life, wide cultivation, mass consumption and food security; export orientation alone is not the criterion.
Q5Consider the following statements: 1. PSS procurement is done through State-level agencies by Central Nodal Agencies such as NAFED and NCCF. 2. PSS procurement is made directly from pre-registered farmers having legitimate land records. 3. PSS procurement is meant to allow middlemen to aggregate farmers' produce before sale to government agencies. Which of the statements given above are correct?
Statement 1 is correct: Central Nodal Agencies such as NAFED and NCCF procure through State-level agencies. Statement 2 is correct: procurement is made directly from pre-registered farmers having legitimate land records. Statement 3 is incorrect because this arrangement is meant to prevent middlemen from taking advantage of the scheme.
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6Consider the following statements: 1. Wheat and paddy procurement at MSP comes under schemes implemented by the Department of Food and Public Distribution through centralized and decentralized procurement mechanisms. 2. Procured wheat and paddy are used for distribution under TPDS and other welfare schemes under NFSA. 3. Since 2015, pulses have also been procured at MSP for maintaining the National Buffer Stock of Pulses under PSF. Which of the statements given above are correct?
7Consider the following statements on Centralized Procurement and Decentralized Procurement: 1. Under the Centralized Procurement System, foodgrains in the Central Pool may be procured directly by FCI or by State agencies that hand over stocks to FCI. 2. Under DCP, the State Government directly purchases paddy/rice and wheat and also stores and distributes these foodgrains under NFSA and other welfare schemes. 3. If DCP stocks exceed the State's allocation under TPDS and other welfare schemes, the excess stocks are retained permanently by the State and cannot be handed over to FCI. 4. In DCP mode, if there is a deficit, FCI supplies the shortfall from outside the Central Pool only after private traders first exhaust their stocks. Which of the statements given above are correct?
8Consider the following statements: 1. Procuring agencies open sufficient procurement centres keeping in view procurement potential and the geographical spread of the State concerned. 2. E-procurement modules can provide farmers updated information such as MSP declared, nearest purchase centre and date of procurement. 3. FCI provides foodgrains to State Governments for distribution under various schemes as per allocation made by the Government of India. Which of the statements given above are correct?
9Consider the following statements about Centralized Procurement and Decentralized Procurement of foodgrains: 1. In Centralized Procurement mode, FCI and State agencies procure foodgrains, and State agencies hand over the procured foodgrains to FCI. 2. In Decentralized Procurement mode, responsibility for procurement and distribution under Central Schemes lies with the State Government. 3. In Decentralized Procurement mode, surplus foodgrains are delivered to FCI and deficit is also supplied by FCI. Which of the statements given above are correct?
10Consider the following statements about MSP policy after the Union Budget 2018-19: 1. The Union Budget 2018-19 announced a principle to keep MSPs at least one-and-a-half times the cost of production. 2. From 2018-19 onwards, MSPs for mandated kharif, rabi and other commercial crops carried a minimum return of 50 percent over all-India weighted average cost of production. 3. This policy applied only to paddy and wheat, not to other mandated MSP crops. Which of the statements given above are correct?
11Consider the following statements: 1. The DFPD mission includes efficient procurement at MSP, safe storage and efficient distribution of foodgrains. 2. One DFPD objective is to undertake price-support operations through efficient procurement of wheat, paddy/rice and coarse grains. 3. DFPD's stated mission is limited to procurement and excludes storage and distribution. 4. Development and rejuvenation of the warehousing sector is listed among DFPD objectives. Which of the statements given above are correct?
12Consider the following statements about procurement modes for wheat and paddy: 1. Wheat and paddy procurement is done through both Centralized Procurement System and Decentralized Procurement System. 2. Under the centralized system, procurement in the Central Pool is undertaken either by FCI directly or through State Government agencies. 3. Under the decentralized system, only FCI undertakes direct purchase of paddy and wheat. Which of the statements given above are correct?
13Consider the following statements on food subsidy and DCP States: 1. In CP mode, States or their agencies procure foodgrains and hand them over to FCI; FCI releases funds to States as per the provisional cost sheet issued by DFPD. 2. In DCP mode, the responsibility of procurement and distribution of foodgrains under Central Schemes lies with the State Government. 3. Under the DCP scheme, the difference between Economic Cost and Central Issue Price is reimbursed to FCI as market fee, not to the State as food subsidy. 4. As per the cited DFPD page, 16 States had adopted the DCP Scheme. Which of the statements given above are correct?
14Consider the following statements: 1. Oilseeds, pulses and copra of Fair Average Quality are procured from registered farmers under PSS when market prices fall below MSP. 2. Under PSS, payments are made to farmers in cash at procurement centres within seven days. 3. Cotton and jute are procured at MSP through the Cotton Corporation of India and the Jute Corporation of India respectively. Which of the statements given above are correct?
15Consider the following statements: 1. Under the centralized procurement system, foodgrains in the Central Pool may be procured either by FCI directly or through State Government agencies. 2. Under DCP, the State Government itself undertakes direct purchase of paddy/rice and wheat. 3. Under DCP, the procured foodgrains are never used for NFSA or other welfare schemes. Which of the statements given above are correct?