Question

In India, which of the following can be considered as public investment in agriculture?

1. Fixing Minimum Support Price for agriculture produce of all crops

2. Computerization of Primary Agriculture Credit Societies

3. Social Capital development

4. Free electricity supply of farmers

5. Waiver of agriculture loans by the banking system

6. Settingupofcoldstorage facilities by the governments

Select the correct answer using the code given below:

(a) 1, 2 and 5 only

(b) 1, 3, 4 and 5 only

(c) 2, 3 and 6 only

(d) 1, 2, 3, 4, 5 and 6

Answer 1

Correct option is (c) 2, 3 and 6 only

• Investment is a term associated with the capital part of the budget. So "subsidy" - a revenue part is not an example of 'public investment'. Economic Survey 2019-20 page 84 also confirms this.
• Free electricity to farmers involves the government paying subsidy to the electricity company. Therefore 4 is wrong. Setting up of cold storage facilities can help in preservation of the perishable agricultural commodities so #6 is valid. So, answer should be "c".