Policy Role And Development

In India, the sector of agriculture and its allied activities receive the highest amount of credit from Commercial Banks. This is due to the mandate by the Reserve Bank of India (RBI) for Priority Sector Lending (PSL), which includes domestic and foreign commercial banks. Commercial banks disburse around 60% of the credit to agriculture and allied activities, which is the highest share compared to Cooperative Banks, Regional Rural Banks, and Microfinance Institutions.

**Statement 1 is incorrect:** India has a National Seeds Policy (2002), which provides a framework for quality assurance, seed certification, and private sector participation. **Statement 2 is incorrect:** The private sector plays a significant role in the production and distribution of seeds, particularly for hybrid and vegetable crops (e.g., Mahyco, Syngenta, Nunhems, etc.). **Statement 3 is correct:** For crops like pulses, coarse cereals, and oilseeds, which are low-value but high-volume, there is indeed a shortage of certified seeds due to lower profitability and investment. Thus, only statement three is correct.

**Pair 1 is not correct:** The drought prone area programme comes under Ministry of Rural Development. This programme aims to mitigate the impacts of droughts on crop production, livestock, land and water resources. **Pair 2 is not correct:** The Desert Development Programme comes under Ministry of Rural Development. The basic objective of the Desert Development Programme is to minimise negative effect of drought and control desertification. **Pair 3 is not correct:** The national watershed project for rainfed areas implemented by Ministry of Agriculture is an umbrella scheme under Pradhan Mantri Krishi Sinchayi Yojana.

**Statement 1 is correct:** Bharat Interface for Money (BHIM) is a payment app that lets you make simple, easy, and quick transactions using Unified Payments Interface (UPI). You can make direct bank payments to anyone on UPI using their UPI ID or scanning their QR with the BHIM app. You can also request money through the app from a UPI ID. **Statement 2 is not correct:** From a consumer point of view, three levels of authentication are required in this app. 1. The device ID and mobile number, 2. The bank account which you are linking to this app, and 3. The UPI Pin which is needed to complete the transaction. There are three factors of authentication versus a normal net banking app or a chip-in debit card which will only have two factors of authentication.

Land reform is a broad term: - It refers to an institutional measure directed towards altering the existing pattern of ownership, tenancy, and management of land. - It entails redistribution of the rights of ownership and/or use of land away from large landowners and in favour of cultivators with very limited or no landholdings. - At the time of independence, ownership of land was concentrated in the hands of a few. This led to the exploitation of the farmers and was a major hindrance towards the socio-economic development of the rural population. - Equal distribution of land was therefore an area of focus of Independent India's government. Laws for land ceilings were enacted in various states during the 50s & 60s, which were modified on the directives of the central government in 1972.

Under the Kisan Credit Card (KCC) scheme, short-term credit support is provided to farmers for purposes that directly support agricultural activities and the farm household. **Statement 1 is correct.** The KCC scheme provides working capital for the maintenance of farm assets, which includes things like irrigation, fertilizers, and labor costs. **Statement 2 is incorrect.** The KCC scheme does not cover the purchase of capital-intensive assets such as combine harvesters, tractors, and mini trucks. These are typically financed through long-term loans, not short-term credit. **Statement 3 is correct.** The KCC scheme provides credit for consumption requirements of the farm household, like daily needs and family expenditures. **Statement 4 is correct.** The KCC scheme can also be used for post-harvest expenses, including costs for storage, transportation, and marketing of produce. **Statement 5 is incorrect.** The construction of a family house and setting up of village cold storage facilities are not covered under the KCC scheme, as these are typically considered long-term capital expenditures. The list of eligible activities for KCC are: - To meet the short-term credit requirements for cultivation of crops - Post-harvest expenses, - Produce marketing loan - Consumption requirements of farmer household. - Working capital for maintenance of farm assets band activities allied to agriculture like dairy animals, inland fishery etc. - Investment credit requirement for agriculture and allied activities like pumpsets, sprayers, dairy animals etc. Hence, option B is the correct answer.

**Statement 1 is not correct.** The Government of India subsidizes fertilizers to ensure that fertilizers are easily available to farmers and the country remains self-sufficient in agriculture. This has been achieved largely by controlling the price of fertilizer and the amount of production. For example, as per the New Urea Policy of 2015, the government fixes the market price of urea. **Statement 2 is correct.** Fertilizer production uses 1.2% of the world's total energy out of which 90% is used for ammonia production, which is a key ingredient in the production of nitrogen fertilizers. Ammonia can be produced from natural gas. **Statement 3 is correct.** Sulfur is a major by-product of oil refining and gas processing. Most crude oil grades contain some sulfur, most of which must be removed during the refining process to meet strict sulfur content limits in refined products. Also, Sulphur is used in phosphoric acid fertilizer (There is a process known as 'The Wet Process' for producing the same). Hence, option B is the correct answer.