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Rural Development and Market Challenges

The document discusses various aspects of rural development, including rural credit, agriculture marketing, organic farming, and the challenges faced in rural areas. It highlights the importance of improving infrastructure, human resources, and addressing poverty for the overall development of rural economies. Additionally, it outlines government measures to enhance agricultural marketing and the benefits of alternative markets and organic farming.
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0% found this document useful (0 votes)
132 views3 pages

Rural Development and Market Challenges

The document discusses various aspects of rural development, including rural credit, agriculture marketing, organic farming, and the challenges faced in rural areas. It highlights the importance of improving infrastructure, human resources, and addressing poverty for the overall development of rural economies. Additionally, it outlines government measures to enhance agricultural marketing and the benefits of alternative markets and organic farming.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

I PUC Economics Chapter 6 Rural Development

RURAL DEVELOPMENT 20marks (4+6)

1. What is rural credit?


Rural development means improvement of social economic life of rural people by providing basic infrastructures which make to engage in
productive activities.

2. Give the meaning of agriculture marketing?


It refers to process of assembling, storing, processing, grading, packing and distributing the agriculture products through out the
country.

3. What is organic farming?


It is the farming which relies on crop rotation, green manure, compost and biological pest for growing crops.
It is the system of farming that restores, maintenance and enhance the ecological balance.

4. Meaning of rural development?


• Rural development means improvement of social economic life of rural people by providing basic infrastructures which make to
engage in productive activities.
• In simple words, the term rural development refers to the overall development of rural economy.

5. Name the two life giving sources of fishing community.


• Rivers, lakes
• Oceans natural and aquatic ponds.

6. Name the areas which are challenging and need fresh initiatives for rural development?
• Development of human resources.
• Landforms.
• Development of the productive resources of each locality.
• Infrastructure development.
• Special measures for alleviation of poverty.

7. How money lenders exploited the rural farmers.


Money lenders & traders exploited small and marginal farmers and less land labourers by
• Charging very high rate of interest.
• Manipulating the accounts to keep them debt trap.
• Trespassing the agriculture land by misusing their illiteracy.
• Making debtors into bonded labourers

8. Name the institutional sources of rural credit?


• Commercial banks.
• Regional Rural Banks (RRBs).
• Cooperative societies.
• Land development banks.

9. Give two examples for alternative market?


• Rythara santhe in Karnataka.
• Rythu Bazzar in Andhra Pradesh.
• Apni mandi in Punjab, Haryana and Rajasthan.

10. Mention the benefits of organic farming?


• It offers are means to substitute costlier agriculture inputs (chemical fertilizers, pesticides) which cheaper ones.
• It generates income through exports.
• It contributes to ecological balance.
• Provides healthy and chemical free food.

11. List out the major problems of rural development?


The major problems which need fresh initiative for development of rural areas are:
1, Development of human resources:

Dept. Of
Economics, 1
I PUC Economics Chapter 6 Rural Development

The development of human resources includes promotion of literacy particularly female literacy, education and skill development, providing
healthcare by addressing both sanitization and public health.
2, land reforms:
The land reforms include ceiling on land holding, prevention of fragmentation and sub division of land and making the tiller as the owner of
the land.
3, infrastructure development:
The development of infrastructure like provision of electricity, irrigation, banking, marketing, transportation, agriculture research centres,
information etc.
4, poverty alleviation measures:
Special measures for poverty alleviation and bringing process among weaker sections of the population and giving importance to productive
employment opportunities is also part of major issues of rural economy.

2. Explain the drawbacks of agricultural market.


Agriculture marketing is a process that involves the assembling, storage, processing, transportation, grading and distribution of different
agricultural commodities across the country.
• The major drop as of agricultural marketing in India as follows:
• Long chain of middleman taking away the profits of farmers.
• No proper storage facilities to protect the agricultural products.
• Faulty methods of weighing/measuring agriculture products.
• Manipulation of accounts.
• Farmers are forced to sell their products at low prices due to lack of information.

3. Write a short note on alternative markets.


• Farmers directly cell there agricultural produce to consumers.
• Example: apni mandi in P.H.R, Rythubazzar-vegetables and fruits market in Andhra Pradesh, Uzhavzrsandies - a farmer market in
Tamilnadu.
• Agriculture contracts - several domestic and multinational companies entering agreements with Indian farmers in which farmers are
encourage to grow farm products of desired quality by providing them with not only seeds and other inputs but also assured procurement of
the produce at pre decided prices.
• The main benefits of alternative agriculture marketing channels are:
• The farmers get seeds and other agriculture inputs.
• Formals are the assured procurement of agricultural products are pre decided prices.
• Help in reducing price risk of farmers.
• Expansion of markets for farm products in India and abroad.

1. Explain the measures taken by the government to improve the agricultural marketing system?
The government in India is under taken the following steps to improve agricultural market in India.
1) Establishment of regulated market:
• The regulated markets are those markets which are controlled and managed by the government to provide orderly and transparent
marketing conditions like better storage facilities, fair prices, removing middleman etc.
• This has benefited the farmers and consumers.
2) Provision of infrastructural facilities:
• The provision of physical infrastructural facilities like roads, railways, ware houses, godowns, cold storage is and processing units will
make agricultural sector a commercial and profit oriented sector in India.
3) Establishment of cooperative marketing societies:
• The society are encouraged by the government to realise fair prices for agriculture products and ensure better income to the farmers.
• The success of milk cooperative societies in transforming the social and economic conditions of Gujarat is worth mentioning.
4) The other measures are:
• Assurance of minimum support prices(MSP) for agriculture a products to protect the farmers from loss.
• Maintenance of buffer talks of wheat and rice by food corporation of India.
• Distribution of essential commodities like wheat rice sugar and corrosion under public distribution system.

2. Write a short note on following.


a). Horticulture:
• It is one of the types of a farming in which cultivation of land is undertaken to grow crops like fruits, vegetables, flower, medicinal
plants, spices and plantation of crops.
• India is the second largest producer of fruits and vegetables.
• The economic condition of many farmers engaged in horticulture as improved and

Dept. Of
Economics, 2
I PUC Economics Chapter 6 Rural Development

horticulture has become a means of improving livelihood for many poor family se rural India.
• Flower harvesting, nursery maintenance, hybrid seed production and tissue culture, propagation of fruits and flowers and food
processing our highly remunerative employment for women labourers in India.
b). Fisheries:
• the fishing community regards the water body as mother.
• The major sources of life for fishing community are rivers, lakes, oceans natural and aquatic ponds.
• In India after progressive increase in budget allocation we can see development of fisheries.
• About 49% of which production comes from inland sources and remaining from ocean and sea.
• Among the states Kerala, Gujarat, Maharashtra and tamilnadu a major producers of Marine . products.

3. List out the benefits of organic farming.


• Organic farming is that farming which relies on crop rotation, green manure, compost and biological pest for growing crops.
• The main benefits of organic farming or as follows:
1. It offers a means to substitute costlier agriculture inputs with cheaper one.
2. It generates income through exports.
3. It contributes to ecological balance.
4. Provides healthy and chemical free food.
5. The organic farming provides to higher production and productivity.
6. In enhances quality and quantity of agriculture products.
7. Provides alternative employment opportunities to rural people.
8. Helps in prevention of deterioration in fertility and conservation of soil.

Dept. Of
Economics, 3

Common questions

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Organic farming contributes to ecological balance by using practices like crop rotation, green manure, compost, and biological pest control, which sustain soil fertility and avoid chemical inputs' detrimental effects. It enhances the ecological balance by maintaining biodiversity and reducing pollution. Economically, it substitutes costly chemical inputs, generates income through exports due to the growing demand for organic products, and improves the quality and quantity of agricultural products. Compared to conventional farming, organic farming offers sustainable practices that are economically and environmentally beneficial .

Rural development faces several significant challenges that require fresh initiatives. The major challenges include the development of human resources, land reforms, infrastructure development, and poverty alleviation. Addressing these challenges involves improving literacy, particularly female literacy, enhancing education and skill development, and providing better healthcare services. Land reforms need measures like preventing land fragmentation and ensuring land ownership for tillers. Infrastructure development involves the provision of electricity, irrigation, banking, marketing, and transportation facilities. For poverty alleviation, special measures are necessary to provide productive employment opportunities and support weaker population sections .

Money lenders have exploited rural farmers by charging exorbitantly high interest rates, manipulating accounts to trap farmers in debt, trespassing on agricultural lands due to the farmers' illiteracy, and forcing them into bonded labor. To protect farmers, measures can include strengthening institutional credit sources like commercial banks, regional rural banks, and cooperative societies, enhancing financial literacy programs, and enforcing regulations to curb exploitative practices. Legal reforms and development of microfinance institutions can also play a significant role in offering protection and alternatives to farmers .

To improve the marketing system for agricultural products in India, several strategies can be implemented: enhancing infrastructural facilities like storage and transport; establishing more regulated markets and cooperative marketing societies to ensure fair pricing and reduce middlemen exploitation; strengthening the Public Distribution System for essential commodities; ensuring minimum support prices for major crops to protect farmers; and promoting alternative marketing channels like direct sale markets. Additionally, leveraging technology for information dissemination and market linkages, as well as encouraging public-private partnerships, can lead to significant improvements .

Horticulture offers significant advantages as a means of rural development. It involves cultivating fruits, vegetables, flowers, and other plants, contributing to improved economic conditions for farmers. For women laborers, horticulture provides multiple remunerative employment opportunities, such as flower harvesting, nursery maintenance, hybrid seed production, and food processing. These activities not only improve livelihoods but also empower women by enhancing their self-sustainability and economic independence. Moreover, India being a major producer in this sector further boosts job opportunities and local economies .

The development of agricultural market infrastructure significantly impacts rural economic growth by facilitating better market access for farmers, which leads to more stable and higher incomes. Improved infrastructure, such as roads, storage facilities, and processing units, allows for efficient transportation and storage of goods, reducing post-harassment losses. This development makes the agricultural sector more commercial and profit-oriented, attracting investments and fostering economic activities in rural areas, thereby contributing to poverty alleviation and livelihood improvements .

Cooperative marketing societies play a crucial role in transforming the rural economy by ensuring fair prices for agriculture products and improving farmers' income. These societies, supported by government initiatives, empower farmers by helping them collectively market their produce, reducing price manipulations by intermediaries. Successful models, such as milk cooperatives in Gujarat, demonstrate how these societies can lead to significant socio-economic transformations, fostering community development and enhanced bargaining power for farmers. Despite their potential, the success of cooperative societies depends greatly on effective management and government support .

Fisheries contribute significantly to the rural economy by providing livelihood opportunities and driving economic growth, especially in coastal and inland regions. The fishing community relies on water bodies like rivers, lakes, and oceans for income. In India, progressive budget allocations and developmental efforts have increased fisheries' output, with approximately 49% of production from inland sources and the remainder from marine sources. Major producers of marine products in India include Kerala, Gujarat, Maharashtra, and Tamil Nadu, highlighting fisheries' substantial role in these states' economies .

Alternative agriculture marketing channels offer several benefits to Indian farmers, such as reduced price risks, assured procurement at pre-decided prices, and expanded markets for their products domestically and internationally. These channels, like direct-sale markets and contracted farming, allow farmers to obtain seeds and inputs directly from companies while guaranteeing sales. However, limitations include the risk of dependency on specific channels, potential exploitation through contract terms, and the need for infrastructure and knowledge to engage effectively with these markets .

Regulated markets benefit farmers by providing fair prices, reducing the dominance of middlemen, and ensuring a transparent marketing environment. They offer better storage facilities and help in eliminating faulty weighing methods and account manipulations. However, challenges include operational inefficiencies, bureaucratic management, sometimes lack of infrastructure, and the initial reluctance of farmers to transition to these markets. Additionally, smallholder farmers might find it difficult to navigate the regulatory framework and access these markets due to limited resources and knowledge .

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