In India, which of the following can be considered as public investment in agriculture?
- Fixing Minimum Support Price for agricultural produce of all crops.
- Computerization of Primary Agricultural Credit Societies.
- Social Capital Development.
- Free Electricity supply to farmers.
- Waiver of agricultural loans by the banking system.
- Setting up of cold storage facilities by the government.
Select the correct answer using the code given below:
- 1, 2 and 5 only
- 1, 3, 4 and 5 only
- 2, 3 and 6 only
- 1, 2, 3, 4, 5 and 6
Explanation
Statement 1 is incorrect
- MSP is a policy tool used by the government to ensure that farmers receive a minimum price for their crops. While it provides financial security to farmers, it is not considered a direct public investment. Instead, it is a price support mechanism.
Statement 2 is correct
- This involves investing in technology to enhance the efficiency and accessibility of credit services for farmers. By modernizing these institutions, the government aims to improve the management and distribution of agricultural credit, making it a direct form of public investment.
Statement 3 is correct
- Investments in social capital include building community networks, infrastructure, and services that indirectly support agricultural development. For example, developing rural infrastructure, improving education and training, and fostering community participation can enhance agricultural productivity and sustainability.
Statement 4 is incorrect
- Providing free electricity is a form of subsidy designed to reduce the cost burden on farmers. While it supports agricultural operations by making energy more affordable, it is not a direct public investment in infrastructure or services.
Statement 5 is incorrect
- Loan waivers are financial relief measures intended to alleviate the debt burden on farmers. Although it provides short-term financial relief, it does not involve direct investment in agricultural infrastructure or services.
Statement 6 is correct
- Establishing cold storage facilities is a direct investment in agricultural infrastructure. These facilities help preserve perishable produce, reduce wastage, and improve market access, thereby supporting farmers’ productivity and income.
