ASRB NET and ARS / SMS / STO recruitment · India · Agricultural Scientists Recruitment Board (ICAR)
Original practice questions written to the published syllabus · not past papersWhat agribusiness is, how its sub-sectors link up, and the reforms, trade rules and policies that shape it.
In the exams: agribusiness management PhD entrance and fellowship examinations, agribusiness environment and policy (heavy); agricultural master's entrance examinations, agribusiness institutions (heavy)
How our questions for ASRB NET and ARS / SMS / STO recruitment spread across the units of Agribusiness Environment & Policy. Difficulty: 0 easy, 24 medium, 10 hard.
| WTO Agreement on Agriculture compliance | 7 | |
| Pricing of outputs | 6 | |
| Import and export policy | 6 | |
| Emerging trends: private markets, contract farming, futures, e-NAM | 5 | |
| Environmental issues in agribusiness | 3 | |
| Role of agriculture in the economy | 2 | |
| Structure of agribusiness and linkages among farm supplies, production, processing and marketing | 2 | |
| Public distribution system | 2 | |
| Liberalisation, privatisation and globalisation reforms | 1 |
Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.
In a federal country whose constitution gives agriculture and markets to the states or provinces, why does national marketing reform often rely on 'model acts' that each state may adopt?
A. The states hold the power to legislate on agricultural markets, so each must enact the reform itself
Where markets are a state subject, the centre can only draft model laws and persuade states to enact them; India's model marketing acts (2003, 2017, 2018) are an example, and the United States uses uniform model codes in a similar way for commercial law. The WTO and central banks have no such role.
A consumer pays 30 currency units per kg for a vegetable and the farmer received 18 per kg. What is the producer's share in the consumer's price?
C. 60 per cent
Producer's share = 18 / 30 x 100 = 60 per cent. 40 per cent is the price spread as a share; 167 per cent inverts the ratio; 12 per cent confuses currency units with per cent.
Under a nutrient-based subsidy, suppose the subsidy is 40 currency units per kg of nitrogen (N) and 50 per kg of phosphorus as P2O5. A fertiliser contains 18 per cent N and 46 per cent P2O5. What is the subsidy per tonne of the fertiliser?
A. 30,200
One tonne has 180 kg N and 460 kg P2O5. Subsidy = 180 x 40 + 460 x 50 = 7,200 + 23,000 = 30,200. 90,000 multiplies 1,000 kg by both rates; 3,020 is a place-value slip; 27,400 swaps the rates (180 x 50 + 460 x 40 = 9,000 + 18,400). The rates here are illustrative.
Wheat is quoted at 250 US dollars per tonne FOB. Freight is 30 dollars and insurance 5 dollars per tonne, the exchange rate is 83 currency units per dollar, the import duty is 10 per cent of CIF value, and port handling is 500 currency units per tonne. What is the import parity price at the port, in currency units per tonne?
C. 26,520.50
CIF = 250 + 30 + 5 = 285 dollars = 285 x 83 = 23,655. Duty = 10% x 23,655 = 2,365.50. Import parity = 23,655 + 2,365.50 + 500 = 26,520.50. 23,655 omits duty and handling; 26,020.50 omits handling; 25,730 levies the duty on the FOB value only (10% x 20,750 = 2,075) and omits handling.
The difference between a WTO member's bound tariff and its lower applied tariff on a product is often called
D. water, or policy space
The gap between bound and applied rates is 'water'; it lets a country raise applied tariffs without breaching commitments. Tariff escalation is rising tariffs with processing; de minimis concerns domestic support.
When the domestic price of a product lies between its export parity price and its import parity price, the product is
A. effectively non-traded at the margin: exporting is unprofitable and importing too costly
Exporting pays only if the domestic price falls below export parity; importing pays only if it rises above import parity. In between, neither is profitable.
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