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 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 ICAR AIEEA-PG spread across the units of Agribusiness Environment & Policy. Difficulty: 34 easy, 23 medium, 0 hard.
| Structure of agribusiness and linkages among farm supplies, production, processing and marketing | 9 | |
| FDI policy in agribusiness | 7 | |
| Definition and components of agribusiness | 6 | |
| WTO Agreement on Agriculture compliance | 6 | |
| Public distribution system | 5 | |
| Food safety and quality policy | 5 | |
| Emerging trends: private markets, contract farming, futures, e-NAM | 4 | |
| Pricing of outputs | 4 | |
| Role of agriculture in the economy | 3 | |
| Liberalisation, privatisation and globalisation reforms | 3 | |
| Import and export policy | 3 | |
| Environmental issues in agribusiness | 2 |
Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.
In Kuznets' classification, agriculture's role as a buyer of fertiliser, tools and consumer goods from industry is its
D. market contribution
The market contribution is agriculture as a purchaser of industrial output. Supplying food and raw materials is the product contribution, transfer of labour and savings is the factor contribution, and export earnings are the foreign exchange contribution.
Further reading: Kuznets, Economic Growth and the Contribution of Agriculture
Goldberg's 'commodity systems approach' studies
D. all participants in the chain of one commodity and the institutions that coordinate them
Goldberg's approach follows one commodity (such as wheat or oranges) from input suppliers through farmers, processors and distributors, together with coordinating institutions such as contracts, cooperatives, government programmes and futures markets. It is not confined to one stage.
Further reading: Goldberg, Agribusiness Coordination, 1968
According to transaction cost economics, which condition most strongly pushes a processor to use contracts or vertical integration rather than buying on the spot market?
D. High asset specificity, such as a processing line designed for one crop variety of exact quality
When an investment is valuable only in a specific relationship, the investor fears hold-up and prefers contracts or ownership. Standardised, storable goods with many traders are well served by spot markets.
Further reading: Williamson; transaction cost economics
Match the type of agribusiness institution with its main function. Which pairing is correct?
A. Export promotion agency - promoting exports of fruits, vegetables and processed foods
Export promotion agencies, such as Brazil's ApexBrasil, fund market development for exports. Warehouse regulators license warehouses and receipts; price commissions advise on support prices; refinance banks refinance cooperative banks; futures exchanges are overseen by commodity or securities regulators, not food safety authorities.
Under the Agreement on Agriculture, the conversion of import quotas and variable levies into equivalent tariffs is called
B. tariffication
Tariffication converted non-tariff barriers into tariffs. Binding sets a ceiling on a tariff; tariff escalation is higher tariffs on processed goods; de minimis is the exempt level of domestic support.
A country allows full foreign ownership of food trading only for food manufactured or produced within the country. The main policy aim is to
A. encourage investment in domestic food processing and local sourcing
Limiting the relaxation to domestically produced food rewards investors who process and source at home; India adopted such a rule in 2016. It does not raise tariff revenue, favour foreign farmers or change food safety inspection.
The National Food Security Act 2013 covers up to
D. 75 per cent of the rural population and 50 per cent of the urban population
The Act sets coverage of up to 75 per cent rural and 50 per cent urban, which together is about two-thirds of the population. The 67/67 option confuses the national average with the separate rural and urban ceilings.
Geographical indications such as Champagne, Parmigiano Reggiano, Café de Colombia and Darjeeling tea are
A. a form of intellectual property linking a product's qualities to its place of origin
GIs are intellectual property, protected under TRIPS and through national GI laws and EU quality schemes, that reserve a name for products from a defined area with qualities due to that origin. They are not seed certificates, food licences or pesticide registrations.
In a warehouse receipt system, what is the main role of a warehouse regulatory authority?
B. To license and inspect warehouses so receipts are trusted
A regulator licenses, inspects and sometimes insures warehouses so that a receipt reliably represents grain of stated grade and quantity, letting banks lend against it and buyers trade it. It does not set prices, own all warehouses or procure grain.
A country allows 100 per cent foreign ownership in food processing manufacturing but closes ordinary field-crop farming to FDI. Which rationale best explains the difference?
A. Processing brings capital and technology, while farmland is treated as a sensitive resource
Countries tend to open activities that bring capital, technology and market links while keeping land-based farming for nationals, because land is fixed, scarce and politically sensitive. Farming can be profitable, the WTO imposes no such requirement, and processing is not exempt from investment law.
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