Below is given a passage followed by several possible inferences which can be draw from the facts stated in the passage. You have to examine each inference separately in the context of the passage and decide upon its degree of truth or falsity.
The immediate challenge is on the food front. Shortfalls in production have been allowed to affect supplies and hence prices. The government is planning to focus on investment in irrigation and strategy. It appears that the Green Revolution instruments to encourage farmers to invest are no longer effective. The Green Revolution strategy was based on the state taking out the risk of collapse in prices. Farmers were offered remunerative prices and a guaranteed procurement of their produce in case the open market could not absorb it. Farmers could them borrow from banks, acquire the Green Revolution Technology and produce as much as they could. The pressure on the food subsidy was manageable as long as there was a food shortage. Prices in the open market then tended to be above the procurement prices. But with the food surpluses the situation has changed. The situation was unsustainable not merely because of the magnitude of this subsidy. It was also inefficient. It meant farmers were being led to produce crops based just on the pieces Government fixed and not in relation to any legal demand. In these circumstances, the Government was reluctant to keep increasing procurement prices at the pace that used to be the norm in earlier years.

Question 19

Demand is much higher than the quantity of crops produced by the farmers.


The 10th line states that the farmers are producing crops on the basis of the government's rate but not on the basis of demand.Also,the passage never mentioned about demand available in the market.Hence,it cannot be inferred from the passage and is definitely false.So,E is correct.

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