Rural Development

Question 1. What do you mean by rural development? Bring out the key issues in rural
development.

Answer. Rural development is a comprehensive term which essentially focuses on action for the
development of areas that are lagging behind in the overall development of the village economy. It
is the economic and social transformation of the village economy. It focuses mainly on the
development of the backward areas of rural India.

The key issues in rural development that needs to be corrected by implementing various initiatives
are as follows:

1) Poverty: The weaker section of the rural economy survives in substandard living conditions. Care
must be taken to provide productive employment opportunities to the people so that their living
conditions can be improved.

2) Education: literacy, especially for women and children and skill development is a vital issue that
needs to be addresses for improving the present and future conditions of rural India.
3) Health & Sanitation: Due to poverty, most people do not have access to basic sanitation which
affects health negatively over time. Initiatives are being taken to provide affordable access to
healthcare and sanitation facilities at workplace and homes. Also, education needs to be imparted
so that the people have acceptance towards changes in their sanitation systems. For example: Mr.
Arunachalam Murugunantham, a social entrepreneur, actually took the initiative of improving
sanitation of women during their menstruation period by manufacturing biodegradable sanitary
napkins but the acceptance among women of the rural economy is difficult because of lack of
education and a blocked mindset.
4) Infrastructure: facilities like roads, railways, land needs to be developed. Infrastructure
development like electricity, better credit facilities, marketing, transportation, storage, processing
units, facilities for agricultural research and extension, etc. are also required for improving living
conditions.
5) Employment: farming is the major employment of people in villages and since, it is seasonal in
nature, the marginal farmers or labourers migrate to urban areas seasonally or permanently or they
take credit in the off period to sustain their living conditions and often fall into a debt trap. Thus,
they need to be provided with better means to increase productivity of grains and fruits and
vegetables and also be given opportunities to diversify non-farm activities like food processing.
6) Implementation of Land reforms: It includes:

a) Elimination of exploitation in land relations

b) Actualisation of the goal of “land to the tiller”
c) Improving of socio-economic conditions of rural poor by widening their land base
d) Increasing agricultural productivity and production

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Question 2. Discuss the importance of credit in rural development.

Answer:
The rural economy majorly depends on agriculture for their livelihood and unless, they get paid for
selling their crops and produce, they borrow money from various sources. This money is borrowed
to infuse as capital for seeds, fertilisers, pesticides and also meet their basic day to day requirement
since the gestation time period between the sowing of the crops to realisation of income from their
production is quiet long. Thus, establishment of proper credit facilities and institutions is vital for
progressive development of the rural sector at low rate of interests to meet the requirement of the
people. Farmers need money to buy additional land, implements and tools, fertilizers and seeds,
paying off old debt, personal expenses like marriage, death, religious ceremonies, etc. Since the
gestation period between crop sowing and realisation of income after sale of agricultural produce is
very long, farmers need to take credit.

Question 3. Explain the role of micro-credit in meeting credit requirements of the poor.
Answer. SHGs (Self-Help Groups) and micro credit programmes promote thrift in small
proportions by a minimum contribution from each member. From the pooled money, credit needs
are fulfilled. The member has to repay the credit in small instalments at low rate of interest. The
borrowings are mainly for consumption purposes.

Self-Help Groups (SHGs) have been established in rural sectors to promote prudent spending by
people and save in small proportions. Thus, this helps the people to make a minimum contribution
to the group. The pooled money would be used to give credit to needy members repayable in small
instalments at a small rate of interest. This is credit facility is known as micro-credit programmes.
The loan is mostly used for consumption purposes and less often for agricultural purposes. It has
promoted savings and thrift amongst the poor.

Question 4. Explain the steps taken by the government in developing rural markets.
Answer. Earlier, the private traders and money lenders would exploit the farmers through various
ways which included faulty weighing of farmer’s produce, manipulation of their account, purchasing
agricultural produce at very low prices due to farmers’ inadequate information on prevailing market
prices, etc. The Government then took initiative to protect the farmers from private traders and
develop rural markets. Four such measures taken by the government are as follows:

1. Establishment of Regulated Markets. Government has formed regulated markets to remove

most of the evils of an unorganised market system and to create orderly and transparent marketing
conditions which benefitted both farmers and consumers.

Functions of regulated markets are:

(i) Enforcement of standard weights.
(ii) Fixation of charges, fees, etc.
(iii) Settling of disputes among the operating parties in the market.
(iv) Prevention of unlawful deductions and control of wrong practices of middlemen.
(v) Providing reliable market information.

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2.Provision of Infrastructural Facilities. The government has taken measures to develop;
infrastructural facilities like roads, railways, warehouses, warehousing cold storages and processing
units. This prevented the farmers from selling their produce at low costs because of lack of storage
facilities.

3. Co-operative Market. Co-operative marketing is a measure to ensure a fair price to fanners for
their products. Member farmers sell their surplus to the co-operative society which substitutes
collective bargaining in place of individual bargaining. It links rural credit farming marketing
processes to the best advantage of the farmers.

4. Important Instruments to Safeguard the Interests of Farmers. The Government has also
developed some instruments to safeguard the interests of farmers. These instruments are:

(i) Fixation of Minimum Support Price (MSP): It is an offer price at which the govt is willing to
buy any amount of grains from the farmers.

(ii) Buffer Stock: The Food Corporation of India (FCI) purchases wheat and rice at the
procurement prices, to maintain buffer stock. Buffer stock ensures regularly in supply and stability
in prices.

(iii) Public Distribution System (PDS): PDS operates through a network of ration shops and
fair price shops, in which essential commodities like wheat, rice, kerosene etc are offered at a price
below the market price, to the weaker sections of the society.

These instruments protected the farmers’ income and also provided food to the poor at a
subsidized rate.

Question 5. Why is agricultural diversification essential for sustain-able livelihoods?

Answer. The agricultural diversification means diversification of crop production and shifting of
agricultural workforce to other allied activities such as livestock, poultry, fisheries, etc and non-
agriculture sector to raise income and to explore alternative sources of revenues. This is essential
because:
1. A substantial portion of Indian farming is dependent on the vagaries of monsoon, making it a
risky affair to rely upon solely. Accordingly, the need for diversification is required to enable the
farmers to earn from other alternative non-farm occupations. This lessens excess burden on
agriculture by reducing disguised unemployment.

2. The kharif season opens up ample opportunities for agricultural employment. However, owing to
lack of irrigation facilities, the farmers fail to get gainful employment opportunities during the Rabi
season. Therefore, the need of diversification arises during the Rabi season.

3. Agriculture being over crowded cannot further generate employment opportunities. Therefore,
the prospects of the non-farm sectors should be opened up in the rural areas to provide job
opportunities, thereby, diverting workforce from the already crowded agricultural sector.

4. The non-farm sector has several segments that possess dynamic linkages. Such linkages enhance
the healthy growth of an economy.

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Question 6. Critically evaluate the role of the rural banking system in the process of rural
development in India.

Answer: Since 1969, when the nationalisation of commercial banks took place, rural banking has
expanded a great deal. Significant expansion of rural banking system played a positive role in:

1. Raising farm and non-farm output by providing services and credit facilities to farmers.
2. Providing long term loans with better repayment options. It, thus helped in eliminating
moneylenders from the scene.
3. Generating credit for self-employment schemes in rural areas.
4. Achieving food security which is clear from the abundant buffer stocks of grains.

Limitations of rural banking are:

1. The sources of institutional finance are inadequate to meet the requirements of agricultural
credit. Farmers still depend on money-lenders for their credit needs.
2. There exist regional inequalities in the distribution of institutional credit.
3. Rural banking is suffering from the problems of large number of over dues and default rate.
4. Small and marginal farmers receive only a very small portion of the institutional credit. A
large portion of institutional credit is taken away by the rich farmers.

Question 7. What do you mean by agricultural marketing?

Answer. Agricultural marketing is a process that involves assembling, warehousing, processing,

packing, grading, transportation and distribution of various agricultural commodities across the
country. Thus, it is the marketing of farm products to the buyers and consumers.

Question 8. Mention some obstacles that hinder the mechanism of agricultural

marketing.
Answer: Some obstacles that hinder the mechanism of agricultural marketing are as follows.

1. Inadequate Warehouses: Lack of cold storages and cold supply chain results in huge wastage
of fruits, vegetables and other perishable items.

2. Multiplicity of Middlemen: Very high involvement of private players in procurement means

that many farmers are still at the mercy of moneylenders and merchants.

3. Malpractices in Unregulated Markets: Improper Measuring for Weighing, Grading and

Standardisation.

4. Lack of Adequate Finance: Lack of adequate finance facilities create obstacles to farmrsin case
of marketing their produce.

5. Inadequate means of Transport and Communication: Lack of proper connectivity through

roads and railways debars the farmers from proper access to the market.

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 6. Inadequate Market Information: Lack of information on real time prices prevents farmers
from ensuring optimum profits.

Question 9. What are the alternative channels available for agricultural marketing? Give
some examples.

Answer: In India, alternative marketing channels are emerging. Through these channels’ farmers
directly sell their produce to the consumers. This system increases farmers’, share in the price paid
by the consumers. Important examples of such channels are: (a) Apani Mandi (Punjab, Haryana
and Rajasthan), (b) Hadaspar Mandi (Pune); Rythu Bazars (Vegetable and fruit market in Andhra
Pradesh) and (c) Uzhavar Sandies (Tamil Nadu), (d) Several national and international fast food
chains and hotels are also entering into contracts with the farmers to supply them fresh vegetables
and fruits.
There are two types of alternative channels available for agricultural marketing. In many states; like
Punjab, Himachal Pradesh and Andhra Pradesh; mandis are available where farmers can directly
sell to the buyers. This helps the farmers in earning good profit. Another trend has recently developed
and that is of contract farming. Large MNCs make contracts with farmers. As per the contract, a
farmer has to grow a particular crop exclusively for the MNC. The company provides seeds and
inputs and ensures that all the farm produce would be bought by the company. This has helped many
farmers in getting a steady source of income.

Question 10. Explain the term ‘Golden Revolution’.

Answer. The period between 1991-2003 is called ‘Golden Revolution’ because during this period, the
planned investment in horticulture became highly productive and the sector emerged as a
sustainable livelihood option. India has emerged as a world leader in producing a variety of fruits
like mangoes, bananas, coconuts, cashew nuts and a number of spices and is the second largest
producer of fruits and vegetables.

Question 11. Explain four measures taken by the government to improve agricultural
marketing.
Answer. The government has taken various steps for improving agricultural marketing system.
These are:

1. Establishment of Regulated Markets. Government has formed regulated markets to

remove most of the evils of an unorganised market system. Functions of regulated markets
are:
(i) Enforcement of standard weights.
(ii) Fixation of charges, fees, etc.
(iii) Settling of disputes among the operating parties in the market.
(iv) Prevention of manful deductions and control of wrong practices of middlemen.
(v) Providing reliable market information.

2. Provision of Infrastructural Facilities. The government has taken measures to develop

infrastructural facilities like roads, railways, warehouses, go downs, cold storages and
processing units.
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 3. Co-operative Market. Co-operative marketing is a measure to ensure a fair price to
farmers. Member farmers sell their surplus to the co-operative society which substitute’s
collective bargaining in place of individual bargaining. It links rural credit farming
marketing processes to the best advantage of the farmers.

4. Important Instruments to Safeguard the Interests of Farmers. The Government has

also developed some instruments to safeguard the interests of farmers. These instruments
are:
(i) Fixation of Minimum Support Price (MSP)
(ii) Buffer Stock
(iii) Public Distribution System (PDS).

Question 12. Explain the role of non-farm employment in promoting rural diversification.
Answer. The non-form areas of employment are essential with a view to raise income and exploring
alternative avenues of sustainable livelihood besides agriculture. The following are the importance of non-
farm employment opportunities in promoting rural diversification:

(i) A substantial portion of Indian farming is dependent on the vagaries of monsoon, making it is a risky
affair to rely upon solely. Hence, non-farm employment opportunities are to be explored to enable the
farmers to earn from alternative non-farm occupations. This will lessen the excess burden on agriculture by
reducing disguised unemployment.

(ii) The Kharif season opens up ample opportunities for agricultural employment. However, due to lack of
irrigation facilities, the farmers fail to get gainful employment opportunities during the Rabi season.
Therefore, absence of opportunities in agricultural sector should be compensated in non-farm sectors.

(iii) Agriculture being overcrowded cannot further generate employment opportunities to the farmers,
Therefore, the prospects of the non-farm sectors should be opened up in the rural areas to provide job
opportunities, thereby, diverting workforce from the already crowded agricultural sector.

(iv) The non-farming sector has several segments that have dynamic linkages. Such linkages enhance the
healthy growth of the rural areas.

(v) The non-farm sector provides employment opportunities for the whole year as compared to the farming
occupation. So, it helps to eradicate poverty from the rural areas.

(vi) Most of the output of non-farm sectors acts j as input for the large-scale industries. For example, agro
processing industries, food processing industries, leather industry, tour-ism, etc. This has two-fold benefits.
First, the large-scale industries can specialise in their final output by relying on the processed inputs from
the non-farm sectors. Secondly, such dependence of the large-scale industries provides impetus to the non-
farm sectors reducing the urban-rural regional disparities.

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Question 13. Bring out the importance of animal husbandry, fisheries and horticulture as
a source of diversification.
Answer.

1. Animal Husbandry
(a) In India, the farming community uses the mixed crop-livestock farming system—cattle,
goats, fowl are the widely held species.
(b) This system provides increased stability in income, food security, transport, fuel and
nutrition for the family without disrupting other food-producing activities.
(c) Today, livestock sector alone provides alternate livelihood options to over 70 million
small and marginal farmers including landless labourers.
(d) Poultry accounts for the largest share. It is 42 per cent of total livestock in India.
(e) Milk production in the country has increased by more than four times between 1960-
2002.
(f) Meat, eggs, wool and other by-products are also emerging as important productive
sectors for diversification.

2. Fisheries
(a) The fishing community regards the water body as ‘mother’ or ‘provider’. The water bodies
consist of sea, oceans, rivers, lakes, natural aquatic ponds, streams, etc.
(b) Presently, fish production from inland sources contributes about 49 per cent to the total
fish production and the balance 51 per cent comes from the marine sector (sea and oceans).
Today total fish production accounts for 1.4 per cent of the total GDP.
(c) Among states, Kerala, Gujarat, Maharashtra and Tamil Nadu are the major producers of
marine products.
3. Horticulture
(a) Due to varying climate and soil conditions, India has adopted growing of diverse
horticultural crops such as fruits, vegetables, tuber crops, flowers, medicinal and aromatic
plants, spices and plantation crops..
(b) These crops play an important role in providing food, nutrition and employment.
(c) India has emerged as a world leader in producing a variety of fruits like mangoes,
bananas, coconuts, cashew, nuts and a number of spices and is the second largest producer
of fruits and vegetables.
(d) Flower harvesting, nursery maintenance, hybrid seed production and tissue culture,
propagation of fruits and flowers and food processing are highly profitable employment
opportunities for rural women. It has been estimated that this sector provides employment
to around 19 per cent of the total labour force.

Question 14. ‘Information technology plays a very significant role in achieving

sustainable development and food security’—comment.

Answer. Many modern thinkers believe that IT can play a significant role in achieving sustainable
development and food security. IT by itself cannot bring change but proper use of IT as a tool can
help in changing the scenario Information technology plays a very significant role in achieving
sustainable development and food security in the following ways:
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 1. It can act as a tool for releasing the creative potential and knowledge embedded in our
people.
2. Issues like weather forecast, crop treatment, fertilizers, pesticides, storage conditions, etc.
can be well administered if expert opinion is made available to the farmers.
3. The quality and quantity of crops can be increased manifold if the farmers are made aware
of the latest equipment, technologies and resources.
4. IT has ushered in a knowledge economy.
5. It has potential of employment generation in rural areas.

The government can use information technology to disseminate timely information about areas
susceptible to food insecurity so that timely action could be taken. Farmers can get real time
information regarding weather, seed price and farm produce price. They can also get relevant
information about best practices of farming if they can be connected through internet. Today,
mobile phone has reached to most of the villages in India and it can be used as a tool to reach the
benefits of information technology to the farmers.

Question 15. What is organic farming and how does it promote sustainable development?
Answer. Organic farming is a system of farming that maintains, enhances and restores the
ecological balance.

Need for organic farming arises because:

1. In the past, modem farming methods made excessive use of chemical fertilizers and pesticides.
It led to soil, water and air pollution, loss of soil fertility and too much chemical contents in
food grains.
2. There is urgency to conserve the environment and eco-system and promote sustainable
development.
3. Organic farming is an inexpensive farming technology. It can be purchased by small and
marginal farmers.

Question 16. Identify the benefits and limitations of organic farming. .

Answer. The advantages of organic farming are:

1. Inexpensive Process: Organic agriculture offers a means to substitute costlier agricultural

inputs (such as HYV seeds, chemical fertilizers, pesticides, etc.) with locally produced
organic inputs that are cheaper and thereby generate more return on investment.
2. Generates Income: It generates income through international exports as the demand for
organically grown crops is on a rise.
3. Healthier and Tastier Food: Organically grown food has more nutritional value than
food grown with chemical farming. It, thus, provides us with healthy foods.
4. Solves Unemployment Problem. Since organic farming requires more labour input than
conventional farming, it will solve unemployment problem.
5. Environment Friendly: The produce is pesticide-free and produced in an environmentally
sustainable way. It helps in preventing pollution of soil and groundwater
6. Sustainability maintained: Organic farming helps in promoting sustainable development

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Limitations of organic farming are:

1. Less yield: It has been observed that the yield from organic farming is much less than modern
agricultural farming. Thus, goods produced organically command a higher price.
2. Lack of awareness among farmers: Small and marginal farmers may not adapt to this type
of farming due to lack of awareness and limited choice of alternate production in off-seasons.
3. Shorter shelf life: Organic produce may have a shorter shelf life.

Question 17. Enlist some problems faced by farmers during the initial years of organic
farming.
Answer.

1. Organic farming requires:

(a) Organic Manure
(b) Bio-fertilizers
(c) Organic Pesticides
Although they are cheaper to attain, yet farmers find it difficult to get them during
the initial years of organic farming
2. The yield from organic farming is much less than modem agricultural farming.
3. The price of organic foods is high, so it is difficult to sell them.
4. Organic produce generally has a shorter shelf life.

Some of the other problems faced by farmers can be as follows:

• Lack of finance to buy farm inputs

• Fear of losing revenue because of low farm output

• Risk of losing farm produce because of shorter shelf life
Question 18: What is organic farming and how does it promote sustainable development?
Answer: Farming which is done without use of synthetic fertilizers and pesticides is called organic
farming. We know that excess use of chemical fertilizers and pesticides has resulted in soil pollution
and groundwater pollution. It has also resulted in many harmful chemicals reaching our biological
system through food chain. Organic farming, on the other hand, does not carry the risk of soil
pollution or groundwater pollution. Risk of harmful chemicals reaching our body through food is
also minimized if we use organic farm produce. Thus, organic farming is the way which can be
sustained in the long run. It can be said that organic farming promotes sustainable development.

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Question 19. Distinguish between ‘Green Revolution’ and ‘Golden Revolution.
Answer:

Green Revolution Golden Revolution

1. The combined use of HYV The rapid growth in the

seeds and increased use of production of the horticultural
fertilisers and developed crops such as fruits, vegetables,
irrigation facilities jointly to tuber crops, flowers, etc. is
increase the production of rice known as Golden Revolution.
and wheat. This increase in the
production of the food grains
is known as the Green
Revolution.

2. It led to increase in the It led to increase in production of

production, especially, of rice fruits, vegetables, flowers,
and wheat. aromatic plants, spices, etc.
2. As a result of this revolution, As a result of this revolution,
India became self-sufficient in India became a world leader in
the production of wheat and the production of mangoes,
rice. bananas, coconut and spices.

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