Correct Answer: Option A) 1 and 2 only
Statement 1: Low productivity in Indian agriculture is partly due to the small size of landholdings.
This statement is correct. India has one of the smallest average farm sizes in the world, with most holdings being less than 2 hectares. Small landholdings lead to:
Inability to achieve economies of scale
Difficulty in mechanization
Fragmented farming practices
Limited access to modern technology and credit
Statement 2: Indebtedness among farmers is primarily due to high dependence on informal moneylenders.
This statement is correct. Despite institutional credit expansion, many farmers still rely heavily on:
Private moneylenders who charge high interest rates
Commission agents and traders
Informal credit sources due to easier access and fewer documentation requirements
This dependence often leads to debt traps and farmer distress
Statement 3: Commercialization of agriculture has rapidly expanded into rainfed regions.
This statement is incorrect. Commercialization of agriculture has been:
Primarily concentrated in irrigated areas
Limited in rainfed regions due to water scarcity and climatic uncertainties
Rainfed areas still largely practice subsistence farming
Green Revolution benefits were mainly confined to irrigated wheat and rice areas
