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State agricultural university MBA admission Agri Infrastructure & Warehousing: practice questions

State agricultural university MBA (ABM) admission · India · State agricultural universities via ICAR AIEEA-PG Group 19

Original practice questions written to the published syllabus · not past papers
10worked here, free
45written to this exam in this subject
10syllabus units

What this subject covers

Storage and market infrastructure for agriculture: the public programmes that fund it, how warehouses work, and how stored produce becomes collateral for credit through warehouse receipts.

In the exams: agricultural development bank officer recruitment, farm engineering and storage (present)

Where the 45 questions fall

How our questions for State agricultural university MBA admission spread across the units of Agri Infrastructure & Warehousing. Difficulty: 22 easy, 23 medium, 0 hard.

Material handling7
Types of warehouses6
Functions of warehouses5
Warehouse documentation5
IT in warehouse management5
Agricultural infrastructure and the schemes that fund it4
Warehousing capacity and storage gaps worldwide4
Agriculture Infrastructure Fund3
Warehouse receipts3
Collateral financing against stored produce3

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 · Agricultural infrastructure and the schemes that fund it · medium

A programme pays a credit-linked capital subsidy for small rural godowns built by individuals and cooperatives. What is its main purpose?

  1. Letting small farmers store near home, delay sales and borrow against stock
  2. Replacing public food reserves with private stocks held by a few large traders
  3. Financing steel silos for the national food agency at railheads through full grants
  4. Building rural roads that connect villages to regulated market yards
Answer and working

A. Letting small farmers store near home, delay sales and borrow against stock

Rural godown subsidies aim to put storage close to small farmers so they can hold produce and pledge it instead of selling at harvest. Roads, railhead silos for a food agency and the replacement of public reserves are different policy goals.

Further reading: Acharya and Agarwal, Agricultural Marketing in India

2 · Agriculture Infrastructure Fund · easy

A government credit facility for agricultural post-harvest infrastructure would most plausibly list which of these as an eligible borrower?

  1. An urban residential housing society
  2. A foreign sovereign wealth fund
  3. A farmer producer organisation
  4. A retail bank's own branch premises
Answer and working

C. A farmer producer organisation

Such facilities typically list farmers, FPOs, primary cooperatives, marketing cooperatives, SHGs, joint liability groups, agri-entrepreneurs, start-ups and public agencies. The other options have no link to agricultural post-harvest infrastructure.

Further reading: Interest subvention and credit guarantee design

3 · Functions of warehouses · medium

How does storage help stabilise agricultural prices over the year?

  1. By raising prices at harvest above lean-season levels so that farmers earn more when they sell early
  2. By absorbing supply at harvest when prices are low and releasing it in the lean season
  3. By holding produce permanently out of the market
  4. By fixing a single price for the whole year
Answer and working

B. By absorbing supply at harvest when prices are low and releasing it in the lean season

Stockholding moves supply from the glut season to the lean season, lifting harvest prices and lowering lean-season prices, which narrows the seasonal swing. It does not remove produce permanently, reverse the seasonal pattern or fix prices.

Further reading: Kohls and Uhl, Marketing of Agricultural Products

4 · Functions of warehouses · medium

Cross-docking in a distribution warehouse means:

  1. Re-bagging produce into smaller consumer packs for retail shelves before it is stored
  2. Swapping stock between two depositors
  3. Storing goods on docks at a seaport
  4. Moving goods from inbound to outbound vehicles with little or no storage in between
Answer and working

D. Moving goods from inbound to outbound vehicles with little or no storage in between

Cross-docking transfers goods straight from receiving to shipping, cutting storage time. Re-bagging into small packs is break-bulk, and swapping stock between depositors is not a warehouse function.

Further reading: Bowersox et al., Supply Chain Logistics Management

5 · Types of warehouses · medium

A field warehouse, in storage-backed lending, is best described as:

  1. A warehouse inside a seaport for export cargo
  2. An open field used for drying grain
  3. Storage at or near the borrower's premises, controlled by an independent custodian for the lender
  4. A government-owned warehouse built in the middle of farm fields and leased to farmer groups at a fixed rent
Answer and working

C. Storage at or near the borrower's premises, controlled by an independent custodian for the lender

Field warehousing lets a lender finance goods without moving them, by placing them under a collateral manager's control. Location in fields or drying yards has nothing to do with it; port warehouses are a separate type.

Further reading: Lacroix and Varangis (1996)

6 · Types of warehouses · medium

A flour mill's own grain store used only for the mill's stock is an example of a:

  1. Bonded customs warehouse
  2. Government warehouse
  3. Private warehouse
  4. Public warehouse for hire
Answer and working

C. Private warehouse

A private warehouse is owned and operated by a firm for its own goods. A public warehouse stores for anyone paying charges; bonded holds duty-unpaid imports; a government warehouse is publicly owned.

Further reading: Acharya and Agarwal, Agricultural Marketing in India

7 · Material handling · easy

Which is a basic principle of material handling?

  1. Move goods in a zig-zag path to spread wear on floors
  2. Keep stacks as low as possible regardless of space
  3. Minimise handling
  4. Handle each bag separately to check it
Answer and working

C. Minimise handling

Every handling step adds cost and risk without adding value, so handling is minimised, loads are unitised and flow is straight-line. Handling bag by bag, zig-zag paths and wasting height all raise cost. In practice this means minimising the number of times goods are handled.

Further reading: Frazelle, World-Class Warehousing and Material Handling

8 · Material handling · medium

A stack of 50 kg bags has a base area of 40 square metres. Each bag occupies 0.4 square metres lying flat and the stack is 12 bags high. How many tonnes does the stack hold?

  1. 1,200 tonnes
  2. 600 tonnes
  3. 60 tonnes
  4. 5 tonnes
Answer and working

C. 60 tonnes

Bags per layer = 40 / 0.4 = 100; x 12 = 1,200 bags; x 50 kg = 60,000 kg = 60 t. One layer only gives 5 t; 1,200 is the bag count; 600 confuses tonnes with quintals.

Further reading: Capacity arithmetic

9 · Warehouse receipts · medium

Which statement about the holder of a negotiable warehouse receipt is correct?

  1. The holder owns a share in the warehouse
  2. The lawful holder can take delivery on surrendering the receipt and paying outstanding charges
  3. The holder can take delivery without paying storage charges owed, since these fall on the original depositor
  4. The holder must be the original depositor
Answer and working

B. The lawful holder can take delivery on surrendering the receipt and paying outstanding charges

A negotiable receipt passes title to the holder, who can claim the goods, subject to the warehouse keeper's lien for charges. Holding it does not give a share in the warehouse.

Further reading: FAO/World Bank, Designing warehouse receipt legislation

10 · Types of warehouses · easy

A warehouse owned by a marketing cooperative for storing its members' produce is a:

  1. Government-owned warehouse
  2. Cooperative warehouse
  3. Private warehouse of a single firm
  4. Bonded customs warehouse
Answer and working

B. Cooperative warehouse

Ownership by a cooperative for members defines a cooperative warehouse. Bonded warehouses relate to customs; private warehouses serve a single firm's own goods.

Further reading: Acharya and Agarwal, Agricultural Marketing in India

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Read the subject

Agri Infrastructure & WarehousingThe full study manual, free State agricultural university MBA admissionFormat, sections and how it has changed

More State agricultural university MBA admission practice

Agriculture & Food Systems (bridge)Agribusiness Law & EthicsBusiness CommunicationFood Processing & Technology ManagementComputer Applications & MISAgricultural Marketing & Price AnalysisInternational Agri Trade & Export ManagementManagement of Agricultural Input MarketingMarketing ManagementProject Management, Appraisal & Agri-EntrepreneurshipManagerial (Applied Agribusiness) EconomicsRural MarketingFood Retail & Agri-food Retail ManagementPrinciples of Management & Organisational BehaviourAgri Value Chain ManagementSector-specific Agribusiness ElectivesAgri Supply Chain & Logistics Management

Agri Infrastructure & Warehousing for other exams

ICAR AIEEA-PG · IndiaNABARD Assistant Manager Grade A · IndiaNABARD Manager Grade B · India

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