Mahadeva, a groundnut farmer in Anantpur district of Andhra Pradesh, faced losses in the reform period. Consider the following statements about his case:
(A) The government did not undertake any major irrigation project in his drought-prone district.
(B) Research and extension work went down due to lower government expenditure.
(C) Subsidy was reduced on machinery and bullock power, which raised his cost of cultivation.
(D) Local markets were flooded with cheap imported edible oils after restrictions on imports were removed.
(E) Even before the reforms, his income from groundnut was less than his cost of cultivation.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (D) only
(A) The government did not undertake any major irrigation project in his drought-prone district. — Correct. Anantpur is drought-prone, yet no major irrigation project was taken up.
(B) Research and extension work went down due to lower government expenditure. — Correct. Lower government spending cut research and extension work.
(C) Subsidy was reduced on machinery and bullock power, which raised his cost of cultivation. — Incorrect. The subsidy cut was on material, that is seeds and fertilisers, not on machinery or bullock power.
(D) Local markets were flooded with cheap imported edible oils after restrictions on imports were removed. — Correct. Removing import restrictions let cheap imported edible oils into local markets.
(E) Even before the reforms, his income from groundnut was less than his cost of cultivation. — Incorrect. He used to spend Rs. 10,000 and earn Rs. 14,000, so his income was more than his cost.
Note: The Mahadeva story sits in a ‘Work These Out’ activity, yet every line of it can become a statement. Read such activity passages as part of the chapter.
NCERT (2026-27): “Work These Out Groundnut is a major oilseed crop in Andhra Pradesh. Mahadeva, who was a farmer in Anantpur district of Andhra Pradesh, used to spend Rs. 10,000 for growing groundnut on his plot of half an acre. The cost included expenditure on raw material (seeds, fertilisers, etc.), labour, bullock power and machinery used. On an average, Mahadeva used to get two quintals of groundnut, and each quintal was sold for Rs. 7,000. Mahadeva, thus, was spending Rs. 10,000 and getting an income of Rs. 14,000. Anantpur district is a drought-prone area. As a result of economic reforms, the government did not undertake any major irrigation project. Recently, groundnut crop in Anantpur is facing problems due to crop disease. Research and extension work has gone down due to lower government expenditure. Mahadeva and his friends brought this matter repeatedly to the notice of the government officials entrusted with this responsibility, but failed. Subsidy was reduced on material (seeds, fertilisers) which increased Mahadeva’s cost of cultivation. Moreover, the local markets were flooded with cheap imported edible oils, which was a result of removal of restriction on imports. Mahadeva was not able to sell his groundnut in the market as he was not getting the price to cover his cost. …” |