Agriculture Economics For Competitive exam

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● Nationalization of Banks–On 19 July, 1969.

● ‘Agriculture Price Commission’—Implemented in 1965.

● Meaning of Economics—Law of House hold Management and formed by two words– Oikas = Home and Nomos = Law; Whereas the meaning of Agricultural Economics – is the management of eco-management in agriculture. ●

Famous Economist ‘Marshall’ defined ‘Principles of Economics’ in book Economics Subject is the physical welfare of man; while ‘Robbins’ has defined the economics in his words – Economics is the Science, that deals with the behaviour of human, under limited resources, their optional or alternative uses are possible and is related to targets.

● Wants—The desire, ability to complete it and has quickness or of its uses (i.e., Wants = Desire + Resources + Quickness)

● Seeds, Fertilizers / Manures, irrigation water, labour etc. are the working capital or cost whereas, buildings, machinery etc. on a farm are considered in fixed – cost / capital.

● Agriculture Cost and Price Commission (ACPC) was constituted in 1965, and the Indian Food Corporation (IFC) was also setup in 1965.

● In U.P., the work on ‘Zamindari Reform’ was started on July 1, 1952.

● All India Rural Credit Survey Committee was constituted in 1951 by Reserve Bank of India.

● In India, the climax Institute of Co-operative Marketing System is National Co-operative Marketing Federation.

● The Head Quarter of World Bank is Washington–D.C.

● As per Agricultural Census (1990-91),

(i) Marginal Holdings (less than 1 ha) with an average of 0·40 ha;

(ii) Small Holdings (1 to 4 ha)-av. 1·98 ha;

(iii) Medium Holdings (4 to 10 ha)-av. 5·88 ha,

(iv) Large Holdings (above 10 ha)–av. 17·16 ha and Total average 1·57 ha; while in Gujarat, the av. holding was 2·93 ha and in Kerala-0·33 ha.

#The States, those were found below the National Average holdings—H.P., Bihar, Assam, Tamil Nadu, West Bengal, U.P., J & K and Kerala; and above national average holdings–Rajasthan, Maharashtra, Gujarat, M.P., Haryana, Punjab, Karnataka and Andhra Pradesh.

● In 1994, the per family holding in India was 4·5 acre, whereas it was 7·5 in Punjab, 7 in Rajasthan and Gujarat, 6·5 in M.P., 6·3 in Maharashtra and 0·9 acre in Kerala.

● Presently, the average land holding of marginal farmer is 1·3 acre; Small–3·8, Medium–7·5 and large farmer–21·8 acres.

● In the country, National Pulse Technology Development Project was started in 1990, that has spread over a large area, comprising in 304 districts of the country with 75 : 25 (Central : State share) expenditure.

● National Agricultural Science Museum of NARC (ICAR)—Inaugurated by Dr. A.P.J. Abdul Kalam, the President of India—On Nov., 3, 2004, at New Delhi.

● In World, the rank of India is as; — Tea, Jute, Mango, Cashew, Banana, sesamum (Til), Milk and Cattle population— 

I Rank — Groundnut, Castor, Arable land, Rice, Rapeseed, Fruits and Goat population

II rank — Cereals, Cotton and Coconut

III rank — Coarse grain and Tractor

IV rank — Whereas, in irrigation potential, India’s rank is first (highest).

● India’s share in world market of spices is about 18%.

● The maximum area under pulses in the world is in India.

● The Government of India declares each year and fixes the minimum support price (MSP) of 24 major crops, looking to the welfare and need of self-sufficiency of farmers; like; rice, wheat, jowar, bajra, maize, ragi, oilseeds, coconut, cotton, jute, sugar and tobacco.

● During the crop year 2004-05, the minimum support price (MSP) of wheat is fixed Rs. 640 and of gram Rs. 1425 and Rs. 1700 per quintal of mustard.

● ‘NABARD’ (National Bank of Agricultural and Rural Development)—‘NABARD’ was established on 12 July, 1982, having the main objectives—to support and improving the ‘Agriculture and Rural Development’. Ist Chairman—was M. Ram Krishnayya

● Law of Diminishing Returns / or Law of Diminishing Marginal Returns—The in
crease in any crop produced by a unit increment of a deficient factor is proportional to the decrement of that factor from the maximum. / or in other words; As the amount of labour and capital on a unit land is increased, the increase in production, that is also called marginal increasing return, decreases continuously, compared to parallel rate.

● Opportunity Cost / or Principles of EquiMarginal Return—If each unit of labour, capital and land is used in such a way, so that maximum extra production (added or marginal return) is obtained, then maximum profit will be achieved.

● For successful management of any project, adopt ‘4M Programme’—M-Material, MMan power, M-Money and M-Marketing and M5-Monitoring. Meaning in One Sentence

Diversified Farming—A farm on which no single product or source of income equals as much as 50% of the total receipt.

Cost—Outlay of funds for product service, while, Fixed Cost—do not change as output changes.

Variable Cost—Expenses of farming, that are involved in production, e.g. labour, fertilizer, seed etc. — cost on purchase of these inputs.

Total Cost—Total variable cost plus total fixed cost, is called total cost.

Input-Output Relationship—Working-out the relationship between various inputs of production (seed, fertilizer, labour etc.) and outputs (wheat, rice, milk, meat etc.)

Base Year—In different types of statistical calculations, keeping the base of a certain year, the calculations of other years are done, is called base year.

Short-Term Loan—The loan, which is taken for a period of 3 to 12 months, generally meant for the purchase of variable inputs.

Face Value—Output / or account value of stock and share, on which value, the shares are issued, that is the face value of share.

Fixed Capital—That part of capital, invested on the purchase of permanent resources (machinery, raw material, tools, buildings of factory etc.) of the production, is called fixed Capital.

Economic Yield—Economically useful part of total dry matter production produced by a plant or crop in unit land area, e.g., tubers in potato, grain in wheat etc.

Economic Efficiency (Water)—It is the ratio of actual income (net or gross income) obtained with operating irrigation system, compared with the income expected under ideal conditions.

Subsidy—The capital (or sum) received from Government to the producers / or distributors for keeping the prices / costs on reduction or on fixed level.

Overhead Cost—Those cost, that do not reduce or rise along with production in short period, but that remains even on no production e.g., rent of a factory, interest on old loans etc.

Loan—The (loan) money borrowed from others by a person, company, Government or other Institutions.

Agro-Based Industries—Those enterprises, wherein agricultural products are used.

Long Term Loan—The loans, those are given for the period of 10 years or for long (more) duration.

Secondary Market—The markets located in Tahsil head quarter (H. Q.) or in large towns are called secondary market.

Subsistence farming—The system (management) of farming, wherein people grow crops only for their own purpose (consumption) but, not for sale in the market by producing extra foods.

Fixed Cost—Some components of costs, those are not changed in a fixed time, (like land rent, while working-out the cost of cultivation of crops).

Variable Cost—Those costs, which are varied in amount of out-put in a specified period, as per the changes.

Budget—A details of estimated income and expenditure for any given future period.

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