Contract Farming

Question

National and multinational fast food chains entering into contracts with farmers provide them with:

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Question (English)

National and multinational fast food chains entering into contracts with farmers provide them with:

  1. Only land for cultivation
  2. Seeds, inputs and assured procurement at pre-decided prices ✓ Correct
  3. Free labour for farming
  4. Government subsidies
Explanation:
Correct Answer Explanation

Fast food chains provide farmers with not only seeds and other inputs but also assured procurement of the produce at pre-decided prices.

Key Points:
  • These arrangements help in reducing price risks of farmers.
  • They expand markets for farm products.
  • Farmers cultivate products of desired quality (vegetables, fruits etc.).
  • This is part of emerging alternate marketing channels.
Why Other Options Are Wrong
  • A: They provide inputs, not land.
  • C: Labour is not provided by these chains.
  • D: Subsidies come from government, not private chains.

📚 About this Topic — CH-5: RURAL DEVELOPMENT

This multiple choice question is from CH-5: RURAL DEVELOPMENT, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-5: RURAL DEVELOPMENT to strengthen your preparation.

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