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ICAR AICE-JRF/SRF Management of Agricultural Input Marketing: practice questions

ICAR AICE-JRF/SRF (PhD admission and fellowship) · India · National Testing Agency for ICAR

Original practice questions written to the published syllabus · not past papers
10worked here, free
89written to this exam in this subject
11syllabus units

What this subject covers

Selling to farmers: how demand for seed, fertiliser, pesticides and machinery behaves, how those markets are structured and regulated, and how dealer networks work.

In the exams: agribusiness management PhD entrance and fellowship examinations, marketing of agricultural inputs (present); light in agricultural master's entrance examinations

What ICAR AICE-JRF/SRF asks from it

ICAR AICE-JRF/SRF (PhD) Agri-Business Management

Unit 4 'marketing of agricultural inputs': derived demand, input demand estimation, fertiliser subsidy history (RPS, decontrol, NBS, DBT), seed policy and the seed generation system, pesticide industry structure, dealer margins and channel design, input credit and interlinked markets.

Where the 89 questions fall

How our questions for ICAR AICE-JRF/SRF spread across the units of Management of Agricultural Input Marketing. Difficulty: 8 easy, 52 medium, 29 hard.

Fertiliser subsidy12
Regulatory controls on inputs10
Seed marketing: policy and trade practices9
Tractor and farm machinery market segments and shares9
Promotional media for input marketing8
Input credit8
Nature of demand for agricultural inputs7
Farmer buying behaviour for pesticides7
Dealer and distributor networks7
Fertiliser market structure6
Pesticide market profile6

10 practice questions, worked

Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.

1 · Nature of demand for agricultural inputs · easy

A profit-maximising farmer uses a variable input up to the point where

  1. its average product is at a maximum, where the input is used most efficiently
  2. the value of its marginal product equals its price
  3. its marginal product is zero
  4. total output is at a maximum, whatever the input's price
Answer and working

B. the value of its marginal product equals its price

Profit is maximised where VMP = input price. Using the input until marginal product is zero (or total output is maximum) ignores the input's cost; that is the technical, not economic, optimum.

2 · Promotional media for input marketing · medium

A field day for a new rice fungicide is best timed

  1. when treated and untreated plots differ most visibly
  2. before the product has been applied, so farmers see the untreated crop
  3. immediately after sowing
  4. after harvest when the field is bare
Answer and working

A. when treated and untreated plots differ most visibly

The purpose of a field day is to let farmers see the result. Holding it before application or on a bare field shows nothing; for a fungicide the contrast is clearest some days after treatment during disease pressure.

3 · Promotional media for input marketing · medium

For launching a genuinely new crop-protection molecule among smallholders, which promotional method is generally most effective in creating trial?

  1. On-farm demonstrations with host farmers who are local opinion leaders
  2. National television advertising alone, with no field contact with farmers
  3. Price discounts to distributors alone
  4. Billboards on highways
Answer and working

A. On-farm demonstrations with host farmers who are local opinion leaders

New products need farmers to see results on local fields, which demonstrations with respected hosts provide. Mass advertising builds awareness but seldom creates trial of an unproven product; distributor discounts move stock into the channel, not into farmers' fields.

4 · Fertiliser subsidy · medium

Nigeria's Growth Enhancement Support scheme (launched 2012) is notable for

  1. nationalising all fertiliser distribution
  2. abolishing all fertiliser subsidies
  3. paying subsidy only to manufacturers based on audited production cost, with fertiliser sold through state-owned depots
  4. delivering subsidy entitlements to registered farmers via mobile e-wallets redeemable at private agro-dealers
Answer and working

D. delivering subsidy entitlements to registered farmers via mobile e-wallets redeemable at private agro-dealers

GES registered farmers and sent entitlements to their phones, to be redeemed at participating private dealers, aiming to cut leakage and build private distribution. It did not nationalise distribution or pay cost-plus producer subsidy.

5 · Farmer buying behaviour for pesticides · hard

A farmer's pesticide 'failed' last season. Which explanation is LEAST likely to be solved by switching to another brand of the same active ingredient?

  1. A counterfeit product with little active ingredient
  2. An expired product bought from one dealer
  3. Pest resistance to that mode of action
  4. Incorrect advice on dose from one dealer
Answer and working

C. Pest resistance to that mode of action

Resistance is to the mode of action, so another brand of the same active will also fail; the remedy is rotation to a different group. Counterfeit, expired stock or poor advice may be fixed by changing brand or source.

6 · Tractor and farm machinery market segments and shares · medium

Tractor sales typically fluctuate more than farm output from year to year because

  1. a tractor is a large durable purchase that farmers postpone or advance
  2. tractors are consumed within one season and must be replaced every year by most farmers
  3. tractor prices are fixed by government
  4. tractor demand does not depend on credit
Answer and working

A. a tractor is a large durable purchase that farmers postpone or advance

Durable purchases respond to income and credit expectations: good years bring purchases forward, bad years postpone them, magnifying swings. Tractors are not consumed in a season, prices are not generally fixed, and credit matters a great deal.

7 · Input credit · medium

A dealer's working capital requirement is 1,849,315 and it is financed entirely by a bank cash-credit limit at 12 per cent a year. What is the annual interest cost?

  1. about 221,918
  2. about 22,192
  3. about 18,493
  4. about 2,071,233
Answer and working

A. about 221,918

Interest = 1,849,315 × 0.12 ≈ 221,918. 18,493 is one month's interest; 2,071,233 is principal plus interest. 22,192 slips a decimal, using 1.2 per cent.

8 · Regulatory controls on inputs · medium

In the European Union, active substances in plant protection products are approved at EU level and products are authorised by member states under

  1. Regulation (EC) No 1107/2009
  2. Regulation (EU) 2019/1009
  3. Regulation (EC) No 1831/2003
  4. Regulation (EU) 2019/6
Answer and working

A. Regulation (EC) No 1107/2009

1107/2009 covers plant protection products. 2019/1009 covers fertilising products, 1831/2003 feed additives and 2019/6 veterinary medicinal products.

9 · Regulatory controls on inputs · easy

Which of the following is NOT a standard principle of input regulation?

  1. Registration of products before sale
  2. Fixing a single brand for each input nationally
  3. Licensing of manufacturers and dealers
  4. Sampling and testing by inspectors
Answer and working

B. Fixing a single brand for each input nationally

Input laws commonly rest on registration, licensing, quality standards, labelling, inspection and enforcement. Mandating a single brand for an input is not a general regulatory principle.

10 · Tractor and farm machinery market segments and shares · medium

Which of the following is the most important non-price determinant of tractor demand in countries where most tractors are bought on loan?

  1. Availability and terms of institutional and non-bank finance
  2. The colour of the tractor
  3. The number of pesticide dealers
  4. World prices of potash
Answer and working

A. Availability and terms of institutional and non-bank finance

Where most tractors are financed, down-payment requirements, interest rates and lenders' willingness to lend decide whether a purchase happens. The other options have no direct link.

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Read the subject

Management of Agricultural Input MarketingThe full study manual, free ICAR AICE-JRF/SRFFormat, sections and how it has changed

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