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ICAR AIEEA-PG Management of Agricultural Input Marketing: practice questions

ICAR AIEEA-PG (Master's admission and PG scholarship) · India · National Testing Agency for ICAR

Original practice questions written to the published syllabus · not past papers
10worked here, free
32written to this exam in this subject
10syllabus 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 AIEEA-PG asks from it

ICAR AIEEA-PG Group 19 (Agri-Business Management) and SAU MBA-ABM admission

Light coverage: basic facts on fertiliser grades and subsidy, seed classes, input laws, channel levels and simple margin arithmetic.

Where the 32 questions fall

How our questions for ICAR AIEEA-PG spread across the units of Management of Agricultural Input Marketing. Difficulty: 21 easy, 10 medium, 1 hard.

Fertiliser market structure8
Nature of demand for agricultural inputs4
Promotional media for input marketing3
Seed marketing: policy and trade practices3
Fertiliser subsidy3
Pesticide market profile3
Tractor and farm machinery market segments and shares3
Dealer and distributor networks3
Farmer buying behaviour for pesticides1
Regulatory controls on inputs1

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 · easy

In the AIDA model used to plan promotion, the letters stand for

  1. Awareness, Information, Decision, Adoption
  2. Attention, Information, Demand, Acceptance
  3. Attention, Interest, Desire, Action
  4. Awareness, Interest, Demonstration, Action
Answer and working

C. Attention, Interest, Desire, Action

AIDA is Attention, Interest, Desire, Action. The alternatives mix in terms from adoption-process models (awareness, evaluation, trial, adoption), which is a different framework.

3 · Seed marketing: policy and trade practices · medium

Under India's Seeds Act, 1966, which statement about seed certification is correct?

  1. Certification is compulsory for all seed sold, and uncertified seed cannot legally be offered for sale
  2. Certification is voluntary, but notified kinds sold must meet minimum germination and purity and be labelled
  3. Only imported seed needs to meet minimum standards
  4. Seed quality is not regulated at all if the seed is uncertified, so truthfully labelled seed faces no minimum standards
Answer and working

B. Certification is voluntary, but notified kinds sold must meet minimum germination and purity and be labelled

Certification under the Act is voluntary; uncertified seed can be sold as truthfully labelled seed but must still meet the minimum limits and label requirements. Compulsory certification applies in some other countries, not under the 1966 Act.

4 · Fertiliser market structure · easy

A crop needs 120 kg N per hectare, all supplied as urea. How much urea is needed per hectare?

  1. 55.2 kg
  2. 666.7 kg
  3. 120.0 kg
  4. 260.9 kg
Answer and working

D. 260.9 kg

Urea = 120 ÷ 0.46 = 260.9 kg. Multiplying by 0.46 (55.2 kg) gives the N in 120 kg of urea, the reverse calculation; dividing by 0.18 (666.7 kg) uses DAP's N content.

5 · Fertiliser market structure · medium

The largest single cost in producing urea is usually

  1. the natural gas or other feedstock used to make ammonia
  2. phosphate rock and sulphuric acid bought on the world market
  3. bagging material
  4. potash ore
Answer and working

A. the natural gas or other feedstock used to make ammonia

Urea is made from ammonia, which is synthesised using hydrogen usually derived from natural gas; the feedstock and energy dominate cost. Phosphate rock and potash are raw materials for P and K fertilisers, not urea.

6 · Fertiliser subsidy · easy

The Abuja Declaration of 2006 set a target for African fertiliser use of

  1. 100 kg of nutrients per hectare
  2. 50 kg of nutrients per hectare
  3. 50 kg of urea per hectare of cropland
  4. 25 kg of plant nutrients per hectare
Answer and working

B. 50 kg of nutrients per hectare

The Africa Fertilizer Summit in Abuja in 2006 set a target of raising average use to 50 kg of nutrients per hectare. The target is in nutrients, not product.

7 · Tractor and farm machinery market segments and shares · easy

In India, the tractor horsepower band that has for many years accounted for the bulk of sales is

  1. below 20 hp
  2. above 75 hp
  3. 31 to 50 hp
  4. 21 to 30 hp
Answer and working

C. 31 to 50 hp

The 31–40 and 41–50 hp segments together have long made up most Indian tractor sales, suiting mid-sized holdings and haulage. Very small and very large tractors are niche segments in India.

8 · Dealer and distributor networks · easy

A carrying-and-forwarding (C&F) agent in an input company's channel typically

  1. buys stock from the company and resells it to dealers at its own risk and margin
  2. sells directly to farmers at retail
  3. manufactures the product under licence
  4. stores and dispatches stock for the company on commission without taking title
Answer and working

D. stores and dispatches stock for the company on commission without taking title

The C&F agent is a service provider: it holds company-owned stock and dispatches it to distributors for a commission. Distributors and dealers take title and bear stock and credit risk.

9 · Dealer and distributor networks · easy

The Diploma in Agricultural Extension Services for Input Dealers (DAESI) in India was started by

  1. MANAGE, Hyderabad
  2. the Central Insecticides Board
  3. NABARD
  4. the Fertiliser Association of India
Answer and working

A. MANAGE, Hyderabad

MANAGE (the National Institute of Agricultural Extension Management) started DAESI in 2003 to give input dealers formal training in agronomy, plant protection, input laws and extension.

10 · Regulatory controls on inputs · medium

Under India's Insecticides Act, 1968, the body that registers each pesticide product for specified crops and uses is the

  1. Central Seed Certification Board
  2. Registration Committee
  3. Fertiliser Monitoring System
  4. Bureau of Indian Standards alone
Answer and working

B. Registration Committee

The Central Insecticides Board advises on policy; the Registration Committee registers products. The Central Seed Certification Board is under the Seeds Act.

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Read the subject

Management of Agricultural Input MarketingThe full study manual, free ICAR AIEEA-PGFormat, sections and how it has changed

More ICAR AIEEA-PG practice

Agriculture & Food Systems (bridge)International Agri Trade & Export ManagementAgribusiness Law & EthicsBusiness Statistics & Quantitative MethodsFarm ManagementBusiness CommunicationAgricultural Marketing & Price AnalysisMicroeconomic Theory & ApplicationsAgricultural Production EconomicsFood Processing & Technology ManagementComputer Applications & MISManagerial (Applied Agribusiness) EconomicsAgricultural Extension Management & CommunicationMacroeconomics & PolicyAgribusiness Environment & PolicyRural Society, Polity & InstitutionsProject Management, Appraisal & Agri-EntrepreneurshipCooperatives & Farmer Producer OrganisationsMarketing ManagementAgri Infrastructure & WarehousingRural Development, Local Governance & LivelihoodsResearch MethodologyAgri Risk Management & InsuranceRural Marketing

Management of Agricultural Input Marketing for other exams

ICAR AICE-JRF/SRF · IndiaState agricultural university MBA admission · IndiaIBPS SO Agricultural Field Officer, CRP SPL-XVI · India

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