Instructions

Below are given two passage followed by several possible inferences which can be drawn from the facts stated in the passages. You have to examine each inference separately in the context of the each passage and decide upon its degree of truth or falsity.

Mark answer (1) if the inference is “definitely true” i.e. it properly follows from the statement of facts given.
Mark answer (2) if the inference is “probably true” though not “definitely true” in the light of the facts given.
Mark answer (3) if the data are inadequate i.e. from the facts given you cannot say whether the inference is likely to be true or false.
Mark answer (4) if the inference is “probably false” though not “definitely false” in the light of the facts given.
Mark answer (5) if the inference is “definitely false” i.e. it cannot possibly be drawn from the facts given or it contradicts the given facts.

Passage-I
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 even revival of agricultural extension system what is probably needed is a fresh dose of Green Revolution 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 then 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 prices Government fixed and not in relation to any real 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 193

As the open market prices are lower, all the burden of procurement of crops is on the Government.

Solution

The given statement is definitely true as it is given in the passage that the farmers were offered remunerative prices and a guaranteed procurement of their production in case the open market could not absorb it.

Thus, the inference is “definitely true”.

=> Ans - (A)


Create a FREE account and get:

  • Banking Quant Shortcuts PDF
  • Free Banking Study Material - (15000 Questions)
  • 135+ Banking previous papers with solutions PDF
  • 100+ Online Tests for Free

cracku

Boost your Prep!

Download App