10th Social Science: Economics
Chapter 3: Food Security and Nutrition
VI. Answer in detail
1. Elucidate why the Green Revolution was born.
(i) When priority was given to industrialisation, it affected agriculture and led to droughts.
(ii) So India was pushed to be dependent on imports of food grains.
(iii) India had to plead for food grains from richer countries at concessional rates.
(iv) United States of America came forward to help India through PL 480 scheme.
(v) India with a massive population growing hungry was perceived to be a potential candidate for revolution.
(vi) The American administration and philanthropic organisations like Ford Foundation formulated a plan to increase food production by introducing high yielding variety of wheat and rice.
(vii) This programme was implemented in select districts where irrigation was assured
(viii) As the results were promising, the programme was extended to a larger number of districts.
(ix) Thus Green Revolution was born in India leading to self sufficiency in food grain production.
2. Explain Minimum Support Price.
(i) Minimum Support Price is a price fixed by an expert group for a particular crop by considering various costs involved in the cultivation of that crop.
(ii) After announcing the MSP, the State will open procurement centres in places where these crops are widely grown.
(iii) However, the farmers are free to sell the crops in the open market if they get a better price for their crop produce.
(iv) On the other hand, if the open market price is lower than the MSP, the farmers would get an assured price (the MSP) by selling their produce to the Food Corporation of India.
3. Elaborate the Public Distribution System.
Tamil Nadu has adopted an universal PDS. Under universal PDS all the family ration card holders are entitled to the supplies from PDS.
Targeted PDS:
(i) The rest of the states adopt targeted PDS. Under targeted PDS, the beneficiaries are identified based on certain criteria and given their entitlements, leaving out the rest.
(ii) Both the union and the state governments subsidise the supplies distributed through PDS.
(iii) The level and quantum of subsidy also vary across states.
(iv) The National Food Security Act of 2013 covers 50% of urban households and 75% of rural households.
(v) These households are known as priority households. These priority households have the right to food supplied through PDS.
(vi) The Union government supplies rice at the rate of ₹ 3 per kg, wheat at the rate of ₹ 2 per kilo, and millets at the rate of ₹ 1 per kg under NFSA.
(vii) In Tamil Nadu rice is supplied free of cost to all card holders.
4. What are the factors affecting the purchasing power and explain them.
Over population:
Large population leads to increase in demand, but supply does not increase as the demand. So, the price goes up. It affects purchasing power, especially in rural population.
Increasing prices of essential goods:
Even though there has been a constant growth in the GDP and growth opportunities in the Indian economy, there have been steady increase in the prices of essential goods. The continuous rise in the prices erodes the purchasing power and adversely affect the poor people.
Demand for goods:
When demand for goods increases, the price of goods increases and then the purchasing power is affected.
Price of goods affect the value of currency:
When the price increases the purchasing power decreases and finally the value of currency decreases and vice versa.
Production and supply of goods:
When the production and supply of goods decline, the price of goods increases, then the purchasing power is affected.
Poverty and inequality:
There exists a huge economic disparity in the Indian economy. Some people are becoming richer and richer. This has led to an increase in the poverty level in the society. Generally unequal distribution of wealth and poverty affect purchasing power.
5. What are the main objectivies of the new Agricultural Policy?
Raising the productivity of inputs:
One of the important objectives of India's agricultural policy is to improve the productivity of inputs so purchased like, HYV seeds, fertilisers, pesticides, irrigation projects etc.
Raising value-added per hectare:
Agricultural policy is to increase per hectare value - added by raising the productivity of agriculture in general and productivity of small and marginal holding in particular.
Protecting the interests of poor farmers:
Agricultural policy is proposed to protect the interests of poor and marginal farmers by abolishing intermediaries through land reforms, expanding institutional credit support to poor farmers etc.
Modernising agricultural sector:
Agricultural policy supports the introduction of modern technology in agricultural operations and application of improved agricultural inputs like HYV seeds, fertilizers etc.
Environmental degradation:
Agricultural policy of India has set another objective to check environmental degradation of natural base of Indian agriculture.
Removing bureaucratic obstacles;
The policy has set another objective to remove bureaucratic obstacles on the farmers' co-operative societies and self-help institutions so that they can work independently.