9. Agricultural Sector - VA Flashcards
(16 cards)
What is one major cause for concern in the agricultural sector related to currency fluctuations?
The depreciation of the Indian rupee against major global currencies
This has raised significant concerns, making the agricultural sector sensitive to currency fluctuations.
What government action was taken in response to the rupee’s fall and global price rise?
The Union Cabinet approved a subsidy of Rs 3,500 per tonne on Di-Ammonium Phosphate (DAP)
This subsidy aims to offset the impact of the rupee’s fall and global price rise.
Why is agriculture particularly sensitive to currency fluctuations?
Agriculture is closely linked to both domestic and international markets
This connection makes it highly sensitive to currency fluctuations.
Cloze: The Union Cabinet approved a subsidy of Rs ___ per tonne on Di-Ammonium Phosphate (DAP).
3,500
This subsidy is meant to mitigate the effects of the currency depreciation.
Cloze: DAP composition includes ___% Nitrogen and ___% Phosphorus (P2O5).
18% Nitrogen, 46% Phosphorus (P2O5)
DAP is vital for plant nutrition.
Cloze: DAP is highly ___ and essential for plant uptake.
water-soluble
This property aids in efficient nutrient absorption by plants.
Cloze: India is a major importer of ___, ___, and certain cereals.
edible oils, pulses
These imports significantly impact the agricultural economy.
Cloze: ___ form a large portion of agricultural imports, impacting household budgets.
Edible oils
The high cost of these imports affects food prices.
What are some key issues faced by the agricultural sector due to currency fluctuations?
- Higher input costs: fertilizers, machinery
- Export challenges: global competition
- Import woes: edible oils, pulses
- Inflation: food prices
- Profit erosion: farmers, exporters
These issues lead to economic strain on various stakeholders in agriculture.
What are some proposed solutions to address challenges in the agricultural sector?
- Diversify imports: alternative sources
- Promote local: domestic production
- Financial support: farmers, companies
- Currency hedging: manage volatility
- Incentivize production: high-demand goods
These solutions aim to stabilize the agricultural sector.
What is a suggested way forward for improving the agricultural sector?
- Strengthen supply chains
- Invest in technology
- Policy reforms: trade, subsidies
- Support sustainable agriculture
- Enhance export competitiveness
These measures can help bolster the sector’s resilience.
What is one dual use of DAP apart from agricultural use?
Non-agricultural uses include fire retardant, industrial, food industry
This versatility highlights the importance of DAP beyond just farming.
What is the impact of India’s dependency on edible oil imports?
It affects food security
High dependency on imports can lead to vulnerabilities in food supply.
What is the importance of currency hedging in agriculture?
It serves as a risk management tool
Effective currency hedging can mitigate financial losses due to currency fluctuations.
What role do government subsidies play in the agricultural sector?
They help stabilize input costs
Subsidies can make farming more economically viable for producers.
What is a challenge posed by global competition in agriculture?
The need for India to innovate in agri-exports
Competing on a global scale requires advancements in production and marketing.
