Solution: a)

The Scheme shall be implemented through a multi-agency framework by selected insurance companies under the overall guidance & control of the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Ministry of Agriculture & Farmers Welfare (MoA&FW), Government of India (GOI) and the concerned State in co-ordination with various other agencies; viz Financial Institutions like Commercial Banks, Co-operative Banks, Regional Rural Banks and their regulatory bodies, Government Departments viz. Agriculture, Co-operation, Horticulture, Statistics, Revenue, Information/Science & Technology, Panchayati Raj etc.

DAC&FW has designated/empanelled Agriculture Insurance Company of India(AIC) and some private insurance companies presently to participate in the Government sponsored agriculture /crop insurance schemes based on their financial strength, infrastructure, manpower and expertise etc.

The Scheme shall be implemented on an ‘Area Approach basis’ i.e., Defined Areas for each notified crop for widespread calamities with the assumption that all the insured farmers, in a Unit of Insurance, to be defined as ‘Notified Area’ for a crop, face similar risk exposures, incur to a large extent, identical cost of production per hectare, earn comparable farm income per hectare, and experience similar extent of crop loss due to the operation of an insured peril, in the notified area.

EXCLUSIONS: Risks and Losses arising out of following perils shall be excluded:-

Solution: d)

When urea is applied to the soil, it is first hydrolysed or broken by water into ammonium ions (NH4+), followed by oxidation to nitrite (NO2-) and, then, nitrate (NO3-) forms. This nitrification process is what makes the nitrogen, which is 46 per cent in urea, available to the crops. In normal urea, however, the conversion to nitrate happens very rapidly. As a result, up to two-thirds of the nitrogen is lost either through underground percolation (‘leaching’) of nitrates or ‘volatilisation’ (escaping into atmosphere).

Neem oil basically acts as a ‘nitrification inhibitor’ when coated on urea. By slowing down urea hydrolysis and nitrification, it allows a more gradual release of nitrogen, which can be used by the plant. “Neem-coating increases nitrogen use efficiency. Also, since the urea action is prolonged, the plants stay greener for a longer time. Farmers apply urea when they notice the leaves turning yellowish. But if the crop here is retaining greenness for an extended period, they would reduce the frequency of application.

http://indianexpress.com/article/india/india-fertiliser-sales-foodgrain-output-narendra-modi-neem-urea-4581174/

Solution: b)

Advantages and Disadvantages of Drip Irrigation

Advantages of Drip Irrigation:

1. Maximum use of available water.
2. No water being available to weeds.
3. Maximum crop yield.
4. High efficiency in the use of fertilizers.
5. Less weed growth and restricts population of potential hosts.
6. Low labour and relatively low operation cost.
7. No soil erosion.
8. Improved infiltration in soil of low intake.
9. Ready adjustment to sophisticated automatic control.
10. No runoff of fertilizers into ground water.
11. Less evaporation losses of water as compared to surface irrigation.
12. Improves seed germination.
13. Decreased to tillage operations.

Disadvantages of Drip Irrigation:

In spite of the fact that drip irrigation has so many potential benefits , they’re a certain limitation also, there are as follow:

1. Sensitivity to clogging
2. Moisture distribution problem
3. Salinity hazards
4. High cost compared to furrow.
5. High skill is required for design, install and operation

http://www.agriinfo.in/default.aspx?page=topic&superid=8&topicid=2243

Solution: d)

Although among the food crops, millets occupy relatively a lower position in Indian agriculture, they are quite important from the point of food security at regional/household level.  Millets can not only grow in poor soil/climatic conditions, due to their short growing season, these can very well fit into multiple cropping systems under irrigated as well as dry land farming; and provide  nutritious  grain  as well as  fodder  in  a  short  span. Their prolonged and easy storability under ordinary conditions has accorded them the status of “famine reserves”; and this feature is of great relevance for India, as our agriculture suffers from the vagaries of monsoon.

The millets commonly grown in India include: bajra (pearl millet), jowar (sorghum), ragi (finger  millet),  barri(proso/common millet),  jhangora (barnyard  millet),  kangni (foxtail/ Italian  millet),  kodra (kodo  millet) etc.

Very good articles(must read)

http://pib.nic.in/newsite/feacontent.aspx?relid=106818

Solution: d)

The Globally Important Agricultural Heritage Systems (GIAHS) Partnership Initiative was conceptualized and presented by Dr. Parviz Koohafkan the Task Manager of Chapter 10 of Agenda 21 in Food and Agricultural Organization of United Nations, FAO in 2002 during World Summit on Sustainable Development in Johannesburg, South Africa. This UN Partnership Initiative aims to identify, support and safeguard Globally Important Agricultural Heritage Systems and their livelihoods, agricultural and associated biodiversity, landscapes, knowledge systems and cultures around the world. The GIAHS Partnership recognizes the crucial importance of the well-being of family farming communities in an integrated approach while directing activities towards sustainable agriculture and rural development.

The International Fund for Agricultural Development (IFAD) is an international financial institution and a specialised agency of the United Nations dedicated to eradicating poverty and hunger in rural areas of developing countries. It was established as an international financial institution in 1977 as one of the major outcomes of the 1974 World Food Conference. Seventy-five percent of the world’s poor live in rural areas in developing countries, yet only 4% of official development assistance goes to agriculture.

Solution: d)

Ministry of Power, GoI launched Ujwal DISCOM Assurance Yojana (UDAY) which was approved by Union Cabinet on 5th November, 2015. 

The scheme envisages:

Financial Turnaround

Operational improvement

Reduction of cost of generation of power

Development of Renewable Energy

Energy efficiency & conservation

https://www.uday.gov.in/about.php

Solution: b)

District Mineral Foundation (DMF) is a trust set up as a non-profit body, in those districts affected by the mining works, to work for the interest and benefit of persons and areas affected by mining related operations. It is funded through the contributions from miners.

Its manner of operation comes under the jurisdiction of the relevant State Government.

Setting up of District Mineral Foundations (DMFs) in all districts in the country affected by mining related operations was mandated through the Mines and Minerals (Development & Regulation) Amendment Act, (MMDRA) 2015.  On 16 September 2015, Central Government issued a notification directing states to set up DMF.

In addition, the Central Government notified on 17 September 2015, the rates of contribution payable by miners to the DMFs.  In case of all mining leases executed before 12th January, 2015 (the date on which MMDR Amendment Act came into force) miners will have to contribute an amount equal to 30% of the royalty payable by them to the DMFs.  Where mining leases are granted after 12.01.2015, the rate of contribution would be 10% of the royalty payable (Subsequent to the enactment of MMDR Amendment Act, mining leases are given out after auctions; hence, a lower levy).

Thus, every holder of a mining lease or a prospecting licence-cum-mining lease shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which their mining operations are carried on. If the mining area is spread across several districts, the fund is shared on a pro-rata basis by these districts. DMF contribution would not be exceeding one-third of royalty and the Central Government retains the power to prescribe the rates of contribution, though DMF’s operation is under state governments. The contributions made to DMFs are collected by the State Governments and the details in this regard are not maintained centrally at the moment.

Under the above mentioned MMRD Amendment Act of 2015, a provision was made also to create a National Mineral Exploration Trust under the jurisdiction of central government, with 2% of royalty as levy, for boosting detailed exploration of minerals.

The contribution to DMFs has been made effective from 12 January, 2015 though DMF was notified only on 16 September 2015. At the above mentioned prescribed rates of contribution, it’s expected that, nearly Rs.6000 crore could be utilized for the development of mining areas of different States, at the current level of royalty collection.

DMF funds are treated as extra-budgetary resources for the State Plan. Efforts are made to achieve convergence with the State and the District Plans so that the activities taken up by the DMF can supplement the development and welfare activities already being carried out.

Further, using the funds generated by this contribution, the DMFs are expected to implement the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), launched on 17 September 2015 for the welfare of mining areas and affected population. The Central Government has issued a directive to the State Governments, under Section 20A of the MMDR Act, 1957, laying down the guidelines for implementation of PMKKKY and directing the States to incorporate the same in the Rules framed by them for the DMFs.

Source: Arthpedia

http://pib.nic.in/newsite/PrintRelease.aspx?relid=126983

Solution: d)

The Micro Units Development & Refinance Agency Ltd (MUDRA) was set up by the Government of India (GoI). MUDRA has been initially formed as a wholly owned subsidiary of Small Industries Development bank of India (SIDBI) with 100% capital being contributed by it. Presently, the authorized capital of MUDRA is 1000 crores and paid up capital is 750 crore, fully subscribed by SIDBI. More capital is expected to enhance the functioning of MUDRA.

Second statement is extrapolation – formal credit helps in formalisation

Non-corporate Small Business: Definition

It is the millions of proprietorship/partnership firms running as small manufacturing units, shopkeepers, fruits/vegetable sellers, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas.

Loosely referred to as the “unorganised” or “informal” sector, they are mostly self-organised.

Large portion of this sector runs as Own Account Enterprises (OAEs), with no employees … essentially self-employment.

https://www.mudra.org.in/AboutUs/Genesis

Solution: d)

Solution: b)

In 2016 UPSC asked similar question on – International Monetary and Financial Committee (IMFC)

Paris Club

The Paris Club is an informal group of official creditors, industrial countries in most cases, that seeks coordinated and sustainable solutions for debtor nations facing payment difficulties. Paris Club creditors provide debt treatments to debtor countries in the form of rescheduling or reduction in debt service during a defined period or as of a set date. Although the Paris Club has no legal basis, its members agree to a set of rules and principles designed to reach a coordinated agreement on debt rescheduling quickly and efficiently. This voluntary gathering dates back to 1956, when Argentina agreed to meet its public creditors in Paris. Since then, the Paris Club and related ad hoc groups have reached 433 agreements covering 90 debtor countries. The Paris Club and the IMF have extensive contact because the Paris Club normally requires countries to have an active Fund-supported program to qualify for a rescheduling agreement.

For more such clubs: http://www.imf.org/en/About/Factsheets/A-Guide-to-Committees-Groups-and-Clubs#CC

http://www.clubdeparis.org/en/communications/page/permanent-members

Answer – b

1. Global Innovation Policy Centre (GIPC) of US Chambers of Commerce had released the International Intellectual Property Index (IIPI). It is an annual Index which examines a country’s Intellectual Property (IP) framework across eight categories of indicators – patents, copyrights, trademarks, trade secrets and market access, enforcement, commercialisation of IP assets, systemic efficiencies and ratification of international treaties.
2. India has been ranked 44 out of 50 countries up from 43 out of 45 in 5th edition. India’s score has improved from 25% (8.75 out of 35) of total score in 5th edition to 30% (12.03 out of 40) in the sixth edition which is the highest improvement of any country measured

Answer – c

• The current account defcit has also widened in 2017-18 and is expected to average about 1.5-2 percent of GDP for the year as a whole. In the frst half of 2017-18, the oil and gold balance has improved (smaller defcit of $47 billion) but this has been offset by a higher trade defcit ($18 billion) and a reduced services surplus ($37 billion), the latter two reflecting a deterioration in the economy’s competitiveness.

Answer – c

1. When oil prices rises, the trade deficit for India increases as India imports most of its oil requirements. The trade deficit induces more supply of Indian Rupee which in turn makes it fall in value. Hence 1 is correct.
2. Increasing bond yields from the dollar means that investment in dollar is giving higher returns. Therefore investors will pull out the money from the Indian market, which means increasing supply of Rupee and thus depreciation. Hence 2 is also correct.

Answer – a

• Cash Reserve ratio is the amount of bank capital which is reserved by the banks with RBI to deter unforeseen circumstances, say people flogging for their deposits.
• If CRR increases, banks will have lesser money to lend and hence interest rates may rise.
• As the interest rates rise, there will be more people putting in their money in the banks.
• This will decrease the supply of money in the open market and therefore inflation will decrease.

Answer – c

• Money supply, like money demand, is a stock variable. The total stock of money in circulation among thepublic at a particular point of time is called money supply.
• RBI publishes figures for four alternativemeasures of money supply, viz. M1, M2, M3 and M4.
• They are defined as follows:

Narrow money

1. M1 = CU (currency (notes plus coins) held by the public) + DD (net demand deposits held by commercialbanks) The word ‘net’ implies that only deposits of the public held bythe banks are to be included in money supply. The interbank deposits, which a commercial bank holds inother commercial banks, are not to be regarded as part of money supply.
2. M2 = M1 + Savings deposits with Post Office savings banks

Broad money

1. M3 = M1 + Net time deposits of commercial banks
2. M4 = M3 +Total deposits with Post Office savings organizations (excluding National Savings Certificates)

• These gradations are in decreasing order of liquidity. M1 is mostliquid and easiest for transactions whereas M4 is least liquid of all. M3 is the most commonly usedmeasure of money supply. It is also known as aggregate monetary resources.

Answer – a

• Factor income is the oncome accuring to the owner of factor of production in return of services rendered for production. Any income which does not generate from participation in production is called as transfer or non-factor income, example subsidies.
• Since there are four factors of production – land, capital, labour and entrepreneurship, and therefore incomes corresponding to these factors – rent, interest, wages and profit are called as factor incomes

Answer – a

• Mutual funds are a congregation of investments in multiple stocks with varying percentages, managed by a professional investor. In any case, any investment in mutual fund is an investment in stocks.
• Any citizen or resident or foreign investor has to register himself/herself with a registered broker with SEBI to trade or invest in stocks. Zerodha, Sharekhan are such brokers.

Answer – b

• If food articles are allowed to be imported, it may contain inflation as the demand for imports will be higher only if their price is lesser than domestic produce. Import duties will only curtail their import, and hence will not help food inflation
• The procurement by FCI reduces the supply to the market, thus increasing inflation. However if the stocks with FCI are released strategically in the market based upon contingency of supply at a particular time, it also helps in containing food inflation.
• The stock limits make way for the enhanced supply in the market, which is critical for level food prices

Answer – c

• Construction of roads by a government agency at any tier will use public investment, thus crowding out private investment as well. This is one particular reason due to which most of the costruction is done through PPP mode. However in the long run, even public investment in infrastructure is good for the macroeconomy, notwithstanding the temporary impact on fiscal numbers.
• The implementation of state pay commission will lead to increase in wages and salaries of government employees. The burden on the exchequer will only increase henceforth resulting in fiscal deficit.

Answer – c

• Cost push inflation refers to the type in which the rise of prices is due to rise in costs of factors of production – entrepreneurship, land, capital and labour.
• As the NPAs of banks increase, they will be asking for stringent regulations and higher credit rate, which will make capital costly. Thus it is cost push inflation type.
• If there is shortage of labour, the wages demanded by the available will be higher, thus pushing cost of production higher. Hence it is also cost push type.