Agricultural Procurement MCQ — 84 Practice Questions with Answers

Q1. Consider 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?

Q2. Consider 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?

Q3. Consider 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?

Q4. Consider 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?

Q5. Consider 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?