Question : Assertion: Institutional sources of credit offer financial support to promote agricultural mechanization.
Reason: They provide loans for purchasing modern farm machinery and equipment.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer:
Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Institutional sources of credit do offer financial support to promote agricultural mechanization, and the reason for this is that they provide loans for purchasing modern farm machinery and equipment.
Agricultural mechanization involves the use of modern machinery and equipment in various farming operations, such as land preparation, sowing, irrigation, harvesting, and post-harvest handling. Mechanization can improve productivity, efficiency, and profitability in agriculture.
Recognizing the importance of agricultural mechanization, institutional sources of credit, such as banks, cooperatives, and government lending institutions, offer specific loan schemes and provisions to facilitate farmers' access to finance for purchasing modern farm machinery and equipment. These loans can be used for buying tractors, combine harvesters, threshers, irrigation systems, and other agricultural machinery.
By providing financial support, institutional sources of credit enable farmers to invest in mechanization, which can result in higher productivity, reduced labor requirements, improved crop quality, and overall farm profitability. Mechanization also helps in reducing drudgery, increasing operational efficiency, and addressing labor shortages in agriculture.
Therefore, the assertion that institutional sources of credit offer financial support to promote agricultural mechanization is true, and the reason that they provide loans for purchasing modern farm machinery and equipment is the correct explanation for this assertion.
