Question

Identify the incorrect statement from the following.

• A. Expansion of rural credit has helped the Indian farmers to increase their production and productivity.
• B. The expansion and promotion of the rural banking sector has taken a backseat after the economic reforms.
• C. It is an accepted fact that if, farmers sell their produce directly to consumers, their profitability increases.
• D. Farmers who have the required information on prevailing prices often sell their produce at low prices.

Hint:

Farmers who know the market prices can bargain for a good rate. So the claim that they sell at low prices is the incorrect one.

Answer 1

The Correct Option is D

Step 1: Understand the task:
We must find the incorrect statement. So three options are correct statements and one is false.

Step 2: Check each option:
(A) Expansion of rural credit helped farmers increase production and productivity. This is correct, since credit buys seeds, fertiliser and tools.
(B) Rural banking expansion took a backseat after the economic reforms. This is correct, as rural branches grew slowly and credit growth slowed in the reform period.
(C) Farmers who sell directly to consumers earn more. This is correct, as they skip the commission of middlemen. Examples are Apni Mandi, Rythu Bazars and Uzhavar Sandhais.
(D) Farmers who know the prevailing prices often sell at low prices. This is wrong. Informed farmers bargain well and get better prices. It is the farmers without price information who sell cheap.

Final Answer:
Statement (D) is incorrect. Option (D).