MasteryExams
Economics • Indian EconomyHard

Examine the micro-economic implications of the Uttarakhand Organic Commodity Board initiatives in establishing organic certification clusters across hill districts. How does this policy intervention alter the value realization for smallholder farmers practicing traditional baranahna agriculture?

A. It mandates the exclusive use of synthetic chemical fertilizers and genetically modified seeds across all terrace farms
B. It facilitates third-party organic certification, links traditional multi-crop produce to premium metropolitan markets, and commands price premiums that offset lower baseline yields✓ Correct Answer
C. It converts all agricultural land into commercial real estate golf courses
D. It prohibits farmers from selling any produce outside their native village panchayat

💡 Solution & Explanation

The Uttarakhand Organic Commodity Board promotes organic farming clusters, helping smallholder farmers transitioning from traditional diverse cropping systems like baranahna to secure certified organic status. This certification enables access to high-end urban retail markets, fetching premium prices that compensate for lower chemical-free yields and preserving agrobiodiversity. Traceability systems assure consumers of authentic Himalayan organic produce.

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