UPSC Prelims 2017 · Question 58 of 99

UPSC Prelims 2017 question on National Agriculture Market

What is/are the advantage/advantages of implementing the ‘National Agriculture Market’ scheme?

1. It is a pan-India electronic trading portal for agricultural commodities.

2. It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce.

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
Show answer

Answer: C. Both 1 and 2

Verdict

The answer is both 1 and 2. The National Agriculture Market is a pan-India electronic trading portal and it gives farmers access to a nationwide market at quality linked prices.

Analysis

Statement 1 is CORRECT. The eNAM platform networks existing APMC mandis to create a unified national market for agricultural commodities through a single electronic portal. Statement 2 is CORRECT. By promoting uniform procedures, assaying and transparent online auction, it removes information asymmetry between buyers and sellers, enables real time price discovery based on actual demand and supply, and gives the farmer access to a nationwide market with prices commensurate with the quality of the produce.

Source

Press reporting on agricultural market reform.

How to crack it

The two statements describe the same reform at two levels, the mechanism and its intended outcome, and where a question pairs mechanism with outcome in this way both usually stand unless one contains an error. Note the structural limit worth carrying: eNAM networks mandis but does not abolish the APMC system, so a statement claiming it replaces or bypasses the mandi would be false, and that is the natural next question in this area.

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