Consider the following statements about agricultural markets in India:
(A) Despite government intervention, private trade predominates agricultural markets.
(B) Private trade in agricultural markets is carried on by moneylenders, rural political elites, big merchants and rich farmers.
(C) The need for government intervention is imminent when a large share of farm products is handled by the private sector.
(D) Some scholars argue that commercialisation of agriculture raises farm incomes provided government intervention is increased.
(E) Under contract farming, the produce is bought at the price prevailing on the day of harvest.
How many of the statements given above are correct?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Three
Statements (A), (B) and (C) are correct.
(A) Despite government intervention, private trade predominates agricultural markets. — Correct. Private trade still dominates.
(B) Private trade in agricultural markets is carried on by moneylenders, rural political elites, big merchants and rich farmers. — Correct. These are the private traders named.
(C) The need for government intervention is imminent when a large share of farm products is handled by the private sector. — Correct. A large private share makes intervention necessary.
(D) Some scholars argue that commercialisation of agriculture raises farm incomes provided government intervention is increased. — Incorrect. They say this holds if government intervention is restricted.
(E) Under contract farming, the produce is bought at the price prevailing on the day of harvest. — Incorrect. It is bought at pre-decided prices.
NCERT (2026-27): “5.4 Agricultural Market System … However, despite government intervention, private trade (by moneylenders, rural political elites, big merchants and rich farmers) predominates agricultural markets. The need for government intervention is imminent particularly when a large share of agricultural products, is handled by the private sector. Agricultural marketing has come a long way with the intervention of the government in various forms. Some scholars argue that commercialisation of agriculture offers tremendous scope for farmers to earn higher incomes provided the government intervention is restricted. …” “5.4 Agricultural Market System … Further, several national and multinational fast food chains are increasingly entering into contracts/ alliances with farmers to encourage them to cultivate farm products (vegetables, fruits, etc.) of the desired quality by providing them with not only seeds and other inputs but also assured procurement of the produce at pre-decided prices. …” |