Explanation:

Factors/Policies Affecting the Price of Rice in India

1. Minimum Support Price (MSP)

The Government of India sets a minimum price for rice (and other crops) every year, known as the Minimum Support Price, at which it buys rice from the farmers, regardless of the market price. This policy is aimed at safeguarding the farmers from any sharp fall in the market price of rice. By setting an MSP, the government ensures that farmers get a minimum profit for their produce, which can lead to an increase in the price of rice in the market if the MSP is set higher than the prevailing market rates.

2. Government’s Trading

The government, through various agencies like the Food Corporation of India (FCI), also participates in the trading of rice. It buys rice from farmers at the MSP and sells it in the market or distributes it under various food security programs. This trading activity can influence the supply of rice in the market, thereby affecting its price. For instance, if the government decides to release more rice from its stocks into the market, it could lead to a decrease in rice prices, and vice versa.

3. Government’s Stockpiling

The government stockpiles rice for several reasons, including ensuring food security, stabilizing rice prices, and managing emergency situations. By holding significant quantities of rice, the government can influence rice prices. If the government stockpiles large amounts, it reduces the supply of rice in the market, which can lead to an increase in prices. Conversely, releasing rice from these stockpiles can help to lower prices.

4. Consumer Subsidies

The government provides rice at subsidized rates to a large section of the population under various welfare schemes, such as the Public Distribution System (PDS). These subsidies make rice affordable to the poor but can also influence market prices. By providing rice at lower prices, the demand for rice in the open market can be affected, which in turn can influence the market price of rice.

All these factors and policies are interconnected and play a significant role in determining the price of rice in India.

Explanation:

Interest Coverage Ratio (ICR)

The Interest Coverage Ratio (ICR) is a financial metric used to determine a company’s ability to pay the interest on its outstanding debt. It is calculated by dividing a company’s earnings before interest and taxes (EBIT) by its interest expenses for the same period. The formula is:

Interest Coverage Ratio = Earnings Before Interest and Taxes (EBIT) / Interest Expenses

Given the options and the explanation of what the Interest Coverage Ratio signifies, let’s evaluate each statement:

1. It helps in understanding the present risk of a firm that a bank is going to give loan to.

This statement is correct. The Interest Coverage Ratio is indeed used by lenders, including banks, to assess the risk level of lending to a firm. A higher ratio indicates that the firm is more capable of meeting its interest obligations from its operating income, which implies lower risk for the lender.

2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.

This statement is also correct. The Interest Coverage Ratio can be used to evaluate not just the current, but also the potential future risk associated with lending to a firm. If a firm’s ICR is declining, it may indicate emerging risks that could affect the firm’s ability to service its debt in the future.

3. The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.

This statement is incorrect. The opposite is true; a higher Interest Coverage Ratio indicates a better ability of the firm to service its debt. It means the firm generates significantly more earnings relative to its interest obligations, which is a positive indicator of financial health.

Given the analysis, the correct answer is:

a) 1 and 2 only

Explanation:

Public Investment in Agriculture

1. Fixing Minimum Support Price (MSP) for agricultural produce of all crops: While MSP is a crucial policy tool for ensuring farmers get a minimum price for their produce, it is not a direct investment in agricultural infrastructure or services. It’s more of a price support mechanism.

2. Computerization of Primary Agricultural Credit Societies (PACS): This is a direct investment in improving the efficiency and reach of financial services to farmers. By computerizing PACS, the government or public sector is directly investing in the agricultural sector’s infrastructure, making it easier for farmers to access credit and other financial services.

3. Social Capital Development: This involves investments in community-building activities, training, and development programs that enhance the social infrastructure within rural and farming communities. It’s a form of public investment aimed at improving the social fabric and cooperative capabilities among farmers, which indirectly supports agricultural productivity and sustainability.

4. Free Electricity Supply to Farmers: While providing free electricity can significantly reduce the operational costs for farmers, especially those relying on irrigation, it is more of a subsidy than a direct investment in agricultural infrastructure or services.

5. Waiver of Agricultural Loans by the Banking System: Loan waivers provide immediate financial relief to indebted farmers but do not contribute to the development of agricultural infrastructure or services. Like subsidies, they are financial support mechanisms rather than investments in the sector’s growth or efficiency.

6. Setting up of Cold Storage Facilities by the Governments: This is a clear example of public investment in agriculture. By establishing cold storage facilities, the government directly invests in the agricultural supply chain infrastructure, reducing post-harvest losses, and improving the marketability of agricultural produce.

Therefore, options 2 (Computerization of PACS), 3 (Social Capital Development), and 6 (Setting up of Cold Storage Facilities) are direct forms of public investment in agriculture, focusing on building or enhancing the sector’s infrastructure and services.

Explanation:

Cultivation of Sugarcane in India

1. A substantial saving in seed material is made when ‘bud chip settlings’ are raised in a nursery, and transplanted in the main field.

This statement is correct. The technique of using bud chip settlings involves taking small sections of the sugarcane stalks, each with a single bud, and initially growing them in a controlled nursery environment. This method is indeed more efficient and saves on seed material because each bud can potentially grow into a new plant, and the controlled conditions in the nursery ensure higher survival rates. This method also allows for better utilization of space and resources in the initial stages of growth.

2. When direct planting of setts is done, the germination percentage is better with single-budded setts as compared to setts with many buds.

This statement is incorrect. Generally, setts with multiple buds have a higher chance of successful germination compared to single-budded setts because they have more points from which new shoots can emerge. Additionally, setts with multiple buds have more stored energy, which can support the initial growth of the plant.

3. If bad weather conditions prevail when setts are directly planted, single-budded setts have better survival as compared to large setts.

This statement is generally considered incorrect. Larger setts, with more buds and more stored energy, are typically more resilient to adverse conditions such as drought or excessive moisture. They have a better chance of survival because they can sustain growth for a longer period without immediate external inputs.

4. Sugarcane can be cultivated using settlings prepared from tissue culture.

This statement is correct. Tissue culture is a modern agricultural technique that allows for the production of disease-free, genetically uniform plantlets in a laboratory setting. These plantlets can then be acclimatized and planted in the field. This method is used for sugarcane cultivation to ensure high-quality planting material that is free from diseases and pests, leading to better crop yields.

Explanation:

Solar Power for Running Pumps

Solar power can be utilized to run various types of pumps, including surface pumps and submersible pumps. These solar water pumping systems are highly versatile and can be designed to operate any type of pump.

Surface Pumps

Surface pumps are used to move water over short distances and are not submerged. They are ideal for applications where water needs to be transported from one location to another without the need for deep water sources like borewells.

Submersible Pumps

Submersible pumps, on the other hand, are placed underwater and used to lift water from deep sources such as borewells. These pumps are designed to handle higher lifts and are suitable for applications requiring water extraction from deeper sources.

Solar panels generate electricity that can power both surface pumps and submersible pumps, making the statement about solar power being used for both types incorrect.

Centrifugal Pumps and Piston Pumps

In addition to surface and submersible pumps, solar power can also be used to run centrifugal pumps and piston (or reciprocating) pumps.

Centrifugal pumps are commonly used for moving water in large volumes and are suitable for applications that require relatively low lift. They are efficient in transporting water over long distances.

Piston pumps, on the other hand, are suitable for applications that require higher lifts and can pump water from deeper sources. Although they may have lower flow rates compared to centrifugal pumps, they are capable of handling applications that require water extraction from greater depths.

The versatility of solar power systems allows them to be configured to provide the necessary power for both centrifugal pumps and piston pumps, making the second statement incorrect as well.

Therefore, neither statement 1 nor statement 2 is correct. The correct option is d) Neither 1 nor 2.

Explanation:

Cotton

Subtropical nature: Cotton thrives in warm climates and wouldn’t tolerate frost.
Frost-free days: The requirement of at least 210 frost-free days aligns with cotton’s long growing season.
Rainfall: Cotton needs moderate to high rainfall (50-100 cm) during its growth.
Soil: Light, well-drained soil with good moisture retention is ideal for cotton cultivation.
Jute and tea prefer more humid conditions with less rainfall compared to cotton. Sugarcane can tolerate some frost but wouldn’t require such a long frost-free period.

Explanation:

Black gram (Urad) is versatile and can be grown in both the kharif (summer) and rabi (winter) seasons in India. The choice of season depends on the specific agro-climatic conditions of the region.

Explanation:

Social Cost of Carbon

Social Cost of Carbon (SCC) is a concept used by economists and policymakers to quantify and monetize the long-term economic damages associated with an incremental increase in carbon dioxide emissions in a given year. This includes a wide range of impacts, such as changes in net agricultural productivity, human health, property damages from increased flood risk, and changes in energy system costs, among others. The SCC is used to estimate the value of damages avoided for a small emission reduction (or conversely, the damages incurred by an additional ton of carbon emissions). It provides a way to evaluate the economic benefits of policies that reduce greenhouse gas emissions by comparing them to the policy costs. Therefore, it plays a crucial role in the development of climate policy and environmental regulation by helping to inform cost-benefit analyses of climate actions.

Explanation:

National Policy on Biofuels – 2018

National Policy on Biofuels – 2018, approved by the Union Cabinet chaired by Prime Minister Shri Narendra Modi, represents a significant step towards promoting the use of biofuels in India. This policy is aimed at not only reducing the dependency on fossil fuels but also at enhancing the country’s energy security, reducing carbon emissions, and boosting the agricultural economy. Below are the detailed salient features of the policy and their implications:

Categorization of Biofuels

1. Basic Biofuels: These include First Generation (1G) bioethanol and biodiesel. These are primarily produced from food crops like sugarcane, corn, and vegetable oils through conventional processing techniques.
2. Advanced Biofuels: This category includes Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, and bio-CNG. Advanced biofuels are produced from non-food biomass, including agricultural residues, waste materials, and also through innovative technologies that offer better efficiency and environmental benefits.

Expansion of Raw Material Scope

The policy broadens the range of raw materials for ethanol production. It now includes sugarcane juice, sugar-containing materials (e.g., sugar beet, sweet sorghum), starch-containing materials (e.g., corn, cassava), and damaged food grains (e.g., wheat, broken rice) that are unfit for human consumption.

Support for Farmers

Recognizing the challenges faced by farmers during surplus production phases, the policy permits the use of surplus food grains for ethanol production, subject to the approval of the National Biofuel Coordination Committee. This move aims to provide an alternative market for farmers’ produce, potentially stabilizing prices and ensuring better returns.

Encouragement for Biodiesel Production

There is a clear emphasis on establishing supply chain mechanisms for biodiesel production from non-edible oilseeds, used cooking oil, and short gestation crops. This approach not only diversifies the raw material base but also addresses waste management issues.

Roles and Responsibilities

The policy document outlines the roles and responsibilities of various Ministries/Departments, ensuring a coordinated and synergistic approach towards biofuel promotion. This inter-ministerial collaboration is crucial for addressing the multifaceted challenges associated with biofuel production, distribution, and usage.

Source: Cabinet approves National Policy on Biofuels – 2018 (pib.gov.in)

Explanation:

Zero Tillage: A Sustainable Agricultural Practice

Zero tillage, also known as no-till farming, is an agricultural practice that promotes sustainable and profitable agriculture by minimizing soil disturbance. This method involves planting crops directly into the residue of previous crops without tilling the soil. Zero tillage is a key component of conservation agriculture, which aims to improve soil health, reduce erosion, and enhance the livelihoods of farmers.

Advantages of Zero Tillage

Zero tillage offers several advantages that contribute to sustainable farming practices:

1. Sowing of wheat without burning the residue of the previous crop: Zero tillage allows for the direct planting of wheat seeds into the residue of previous crops, eliminating the need for burning. This not only saves time and labor but also helps retain soil moisture, reduce erosion, and improve soil health by preserving organic matter.
2. Direct planting of paddy seeds in wet soil: Unlike traditional rice cultivation, zero tillage enables the direct seeding of paddy seeds into the field without the need for a nursery. This eliminates the labor-intensive process of transplanting saplings and can save water, reduce labor costs, and potentially increase yield.
3. Carbon sequestration in the soil: Zero tillage practices contribute to carbon sequestration by increasing the amount of carbon stored in the soil. By avoiding soil disturbance, carbon is retained in the soil as organic matter instead of being released into the atmosphere as CO2. This process not only improves soil health and fertility but also helps mitigate climate change by reducing greenhouse gas concentrations.