English Twisted Ones for IBPS/BOM Exams |

Directions (1-10): Read the
following passage carefully and choose the best answer to each question out of
the five given alternatives.

This industry preys on pestilence for profits. As the primary sector thrives
under the benevolent gaze of the rain gods, according to the CMIE forecast for
Business Today, the production of food grains will touch 187 million tons in
1994-95-up from 182 million tons in 1993-94-pesticides are likely to be a key
input in the country’s race for a quantum jump in agricultural productivity.

That’s
because a not-insignificant 30 percent of the production of food grains in the
country is destroyed by insects, pests, plant pathogens, rodents, and birds
every year. And even though the per capita consumption of pesticides is
currently low-which is also a pointer to the industry’s potential – this
country is still the world’s third largest consumer of pesticides.

Classified
by target species, pesticides can be divided into four broad categories.
Insecticides-like monocrotophos and fenvalerate – are used for killing insects.
Herbicides – such as butachlor and anilophos – remove weeds and unwanted
plants. Fungicides – like nickel chloride – kill fungi. And fumigants and
rodenticides – such as zinc and aluminium phosphide – are used to kill rodents.

At
present, insecticides contribute to almost 75 percent of the turnover of the
pesticides industry in value terms and 85 percent in terms of volume. This is
at variance with the trend in the West, where insecticides account for just 32
percent of pesticides consumption: it is herbicides and fungicides which
account for the largest share of consumption in those countries.

In
terms of manufacturing technology, the production of pesticides can be
classified into two main categories; technical-grade materials and
formulations. Technical-grade-material-the basic chemical of high purity-is
manufactured in organized units, with the top 10 units accounting for more than
80 percent of production. Most of them have a dominant market share in one or
two key products.

However,
most pesticides are used as formulations, which are produced by the processing
of technical grade materials and are manufactured by both large and small-scale
units. In fact, the Insecticides Act of 1968 stipulates that 50 percent of the
production of technical-grade pesticides must be supplied by every manufacturer
to non-associated formulators.

While
the stipulation aims at ensuring the sale of pesticides at cheaper prices,
arbitrary control has led to a conflict of interests. Formulators complain that
technical-grade manufacturers operate a cartel. The latter, however, claim that
rising input costs-raw materials constitute 60 percent of the selling price of
pesticides-are forcing hikes in selling prices.

The
pesticides industry has over 80 registered technical-grade manufacturers and
about 800 registered formulators. About 160 formulators are associated with
technical-grade manufactures and boast of the advantage of being able to obtain
raw materials easily, even during the peak consumption season.

As
the level of technology required is relatively low, formulators have low fixed
investment per unit of output. At 35 percent, the pesticides industry’s average
capacity utilization is rather low. And this, notwithstanding the 1974 ban
imposed by the government on the addition of formulation capacity. However,
firms can expand their formulation capacities so long as such expansions are
linked to the increased production of technical-grade material.

One
of the main reasons for low capacity utilization in this industry is the
seasonal nature of the demand for pesticides. The maximum amount of sales is
recorded between July and November, which is reflected in the high inventories
that are built up in the first quarter of the year. As the active ingredient
deteriorates over time, a large number of formulations have a limited
shelf-life.

At
another level, the industry is characterized by the practice of credit sales to
the trade. These credits – which are typically for 60 to 90 days-coupled with
the high level of inventories-to cope with demand fluctuations-contribute to
the working capital-intensive nature of the industry. That’s why most
manufacturers have diversified, the most common diversification being
pharmaceuticals. An analysis of pesticides sales as a percentage of the total
sales of the major players confirms that most pesticides markers are
well-diversified.

Q1.
The growth in the production of food grains in 1994-95 over 1993-94 is
predicted to be roughly

(a) 187 million tons.

(b) 2 percent.

(d) 182 million tons.

(e) 7
billion

Q2.
This country is the third largest consumer of pesticides in spite of

(a) a low per capita consumption of pesticides.

(b) 30 percent of production being destroyed by insects.

(d) food grain production being insignificant.

(e)
poor technology.

Q3.
The market for technical-grade pesticides in India is dominated by

(a) insecticide manufacturers.

(b) small scale sector.

(d) large scale sector.

(e)
is because there is no cartel of manufacturers.

Q4.
The relationship between formulators and producers of technical-grade material

(a) is determined by the market.

(b) is rather strong in India.

(d) is partly governed by law.

(e)
the seasonal nature of demand.

Q5.
The hike in selling prices

(a) is blamed by formulators on manufacturers.

(b) is the consequence of administered pricing.

(d) is because there is no cartel of manufacturers.

(e)
our dependence on monsoons.

Q6.
The percentage of formulators who can boast of being able to obtain raw
materials easily is

(a) 60

(b) 10

(d) 20

(e)
45

Q7.
High inventories are built up during

(a) October, November, December.

(b) April, May, June.

(d) low per capita consumption.

(e)
None of these

Q8.
The pesticides industry is characterized by credit sales, the typical credit is

(a) 30 percent of sales.

(b) 2 to 3 months.

(d) 100 percent of sale.

(e)
7 months

Q9.
That the pesticides makers are well diversified is indicated by the

(a) dominance of pesticides sales in the total sales.

(b) reduction in pesticides production.

(d) hike in prices of pesticides.

(e)
small scale sector.

Q10.
Capacity utilization in the pesticides industry is low because of

(a) a ban on expansion.

(b) the seasonal nature of demand.

(d) low per capita consumption.

(e)
is determined by the market.

Directions (11-15): In each of the following sentences, parts of the sentence
are left blank. Beneath each sentence, five different ways of completing the
sentence are indicated. Choose the best alternative from among the five
options.

Q11. Cars __________ to accommodate wheelchair users are vital to
disabled people to get out and about and enjoy __________ lives.

(a) designed, their

(b) modified, healthy

(d) modified, itinerant

(e) adopted, itinerant

Q12. Some __________ defending, especially in the second half of
the game allowed the opposition to __________ and the defending champions lost
the game.

(a) slack, score

(b) superb, lose

(d) superb, score

(e) slack, lose

Q13. Print, paper, and newspapers
enabled the rise of new types of __________ based on expanded popular
participation.

(a) class conflicts

(b) cultural forms

(d) political systems

(e) ethical dilemmas

Q14. Businesses attempt to __________ the conflicts of interest
between groups to ensure __________ operation of the organization.

(a) compromise, profitable

(b) reconcile, efficient