In India, which of the following can be considered as public investment in agriculture? 1. Fixing Minimum…
In India, which of the following can be considered as public investment in agriculture?
1. Fixing Minimum Support Price for agricultural produce of all crops
2. Computerization of Primary Agricultural Credit Societies
3. Social Capital development
4. Free electricity supply to farmers
5. Waiver of agricultural loans by the banking system
6. Setting up of cold storage facilities by the governments
Select the correct answer using the code given below:
1, 2 and 5 only
1, 3, 4 and 5 only
2, 3 and 6 only
1, 2, 3, 4, 5 and 6
Solution
Public investment must create durable capital/social assets. MSP is price support, not investment (1 wrong). PACS computerization (2 correct), social capital development (3 correct) and cold storage (6 correct) create lasting capital. Free electricity (4) and loan waivers (5) are subsidies/transfers, not investment. Answer: (c) 2, 3 and 6 only.