Unit III- Rural Development
Ques 1 What do you mean by rural development? Bring out the key issues in rural development.
Ans: Rural development refers to the actions and initiatives taken for the social and economic development of the rural or backward areas.
The key issues in rural development are as follows:
1. Human Capital Formation- It refers development of human resources by investing in education, technical skills development through
on-the-job training, health care, etc.
2. Development of Productive Resources- Development of productive resources helps in generating employment opportunities and
reduces excess burden on the agricultural sector and increase income of the rural people.
3. Development of Rural Infrastructure- It includes development of bank, credit societies, electricity, means of transport, means of
irrigation, development of markets, facilities for agricultural research, etc.
4. Land reforms- Land reforms enable the use of modern techniques and methods, thereby, increasing the productivity and aggregate
volume of farm output.
5. Lessening Poverty- An important step that should be taken in order to tackle t poverty is to develop income-earning assets. Such assets
would generate income, raise living standards and make rural people self-sufficient.
Ques 2 Discuss the importance of credit in rural development.
Ans: The importance of credit in rural development is as follows:
1. Credit helps the farmers to commercialise their farming i.e. to produce other than traditional crops like flowers, vegetables, cotton, fruits
etc.
2. Credit is needed to the farmers for meeting their initial requirements of farm inputs like seeds, fertilizers etc.
3. Farmers require funds for meeting their expenses on marriage, death, religious ceremonies etc.
4. In the absence of good monsoon or crop failure, crop insurance and farm credit save farmers from such tragedy.
5. Credit is required for purchasing machinery, constructing fences, digging wells etc.
Ques 3 Explain the role of micro-credit in meeting credit requirements of the poor.
Ans: Micro credit refers to credit services provided to the poor through Self Help Groups (SHGs). The Self Help Groups inculcate or
promote the saving habits among the rural households. The individual savings of many farmers are pooled together to meet the financial
requirements of the needy members of the SHGs at reasonable rate of interest and without any security and less legal formalities. Presently,
more than seven lakhs SHGs are operating across different rural areas. Beside this SHGs provides a platform to discuss the social issues
like health, domestic violence etc.
Ques 4 Explain the steps taken by the government in developing rural markets.
Ans: The following are the various steps initiated by the Indian government to develop the rural markets:
1. Regulated Markets: The government came up with the concept of regulated market by the Market Committee to infuse greater
transparency in the marketing system through the use of proper scales and weights.
2. Infrastructure Development: Indian government provided cold storages, subsidised transport facilities and warehouses that help the
farmers to sell their product at the time when the price is attractive.
3. Co-operative Agricultural Marketing Societies: The government also started co-operative marketing under which the farmers get access
to fair prices. This is due to the better bargaining power of the farmers via collective sale in the market.
4. MSP Policy: Minimum Support Price saves the farmers in case of price fall.
Ques 5 Why is agricultural diversification essential for sustainable livelihoods?
Ans: The agricultural diversification implies diversification of crop production and shifting of agricultural workforce to other allied such as
livestock, poultry, fisheries, etc. and non-agriculture sector.
The importance of agricultural diversification can be explained with the help of the following points:
1. The shift from the crop farming to non-farm employment is essential in order to raise income.
2. Farming is uncertain and risky activity. Therefore diversification is required to enable the farmers to earn from other alternative non-
farm occupations.
3. This lessens excess burden on agriculture by reducing disguised unemployment.
4. Agriculture being over crowded cannot further generate employment opportunities. Therefore, non-farm sectors should be opened up in
the rural areas to provide job opportunities.
5. Cash crops along with food crops may bring more income and prosperity for the farmers.
6 To maintain the fertility of land.
Ques 6 Critically evaluate the role of the rural banking system in the process of rural development in India.
Ans: The rural banking system had a positive effect on rural farm and non farm output, income and employment .But all is not well with
our banking system .Some of the shortcomings of our banking system are as follows:
1. A number of farmers cannot avail credit in absence of security or collateral required.
2. The commercial banks failed to encourage the habit of thrift/saving among farmers.
3. Increased defaulter’s rate and financial unfeasibility of the rural banks due to not repaying of borrowed loans by the farmers.
4. Biasing by banks in lending loans.
Ques 7 What do you mean by agricultural marketing?
Ans: Agricultural marketing refers to all those processes that are involved from harvesting to final sales of the products by the farmers.
These processes involve:
a) Gathering the product after harvesting.
b) Processing the product
c) Grading the product, according to, different quality norms
d) Packaging the product
e) Storing the product for future use
f) Transportation of product
f) Selling the product at attractive prices
Ques 8 Mention some obstacles that hinder the mechanism of agricultural marketing.
Ans: Agricultural marketing does not simply refer to the farmers’ act of bringing their product to the market for the purpose of sale. But it
also includes all those activities that help the farmers to fetch the maximum price for their product. The following are some of the obstacles
that hinder the mechanism of agricultural marketing:
i. Faulty weighing.
ii. Manipulation in accounts.
iii. Inadequate information of market prices and market conditions. Being ignorant, farmers are forced to sell their product at lower prices.
iv. Lack of adequate finance.
v. Inadequate means of transportation and communication.
vi. The farmers lack access to proper storage facilities to store their produce for future sell at better prices.
vii. The farmers cannot avail agricultural credit, leading to their exploitation by the moneylenders and mahajans.
viii. Multiplicity of middlemen.
Ques 9 What are the alternative channels available for agricultural marketing? Give some examples.
Ans: The small and marginal farmers, selling their product through the middlemen, were exploited by these middlemen. The farmers were
not given appropriate price for their product. In this context; there arose a need for an alternative marketing channel. Under this channel,
the farmers can sell their product directly to the consumers that would fetch them comparatively higher price, thereby, attractive profits.
Some of the examples of alternative agricultural marketing are ApniMandi in states like Punjab, Haryana and Rajasthan, HadasparMandi .
Another alternative channel for agricultural marketing is the contract of direct sales between the farmers and the national and international
companies. These companies offer advance payments to the farmers for supplying products at pre-determined rates. These alternative
agricultural channels raise farmer’s income and simultaneously reduce price risk for the small and marginal farmers.
Ques 10 Distinguish between ‘Green Revolution’ and ‘Golden Revolution’
Green Revolution Golden Revolution
[Link] rapid growth in the production of foodgrains (rice and [Link] rapid growth in the production of the horticultural crops
wheat) due to use of HYV seeds, fertilisers and developed such as fruits, vegetables, flowers, etc. is known as Golden
irrigation facilities is known as the Green Revolution. Revolution.
2. Started in 1967 [Link] in 1991
3. As a result of this revolution, India became self-sufficient in 3. As a result of this revolution, India became a world leader in
the production of wheat and rice. the production of mangoes, bananas, coconut and spices and
second largest producer of fruits and vegetables.
Ques 11 Bring out the importance of animal husbandry, fisheries and horticulture as a source of diversification.
Ans: Animal Husbandry (Livestock Farming): It is the most important non-farm employment in India. Poultry, cattle and goats/sheep
are the important components of livestock farming in India. Most of the rural families carry out livestock farming together with crop
farming in order to increase their income. The share of livestock farming is comparatively higher in the semi arid and arid areas than the
irrigated areas. This is because the arid areas have lesser access to irrigation facilities and thereby, crop farming is less feasible. Further,
capital investment in livestock farming is comparatively less than that in crop farming.
Fisheries: ‘Fisheries’ are an important source of livelihood in the coastal states such as Kerala, Maharashtra, Gujarat and Tamil Nadu. The
fishing community in India depends on water bodies- both inland and marine water bodies. Inland sources include rivers, lakes, ponds, and
streams, while, the marine sources include seas and oceans.
Horticulture: Horticulture is emerging as an important source of livelihood in the rural areas. Horticultural crops include fruits,
vegetables, medicinal and aromatic plants and flowers. Presently, India is the second largest producer of fruits and vegetables that includes
mangoes, bananas, coconuts, cashew nuts and variety of species. There has been a considerable rise in the income levels of families
engaged in horticultural production. The increase in horticultural production has lowered the vulnerability of small and marginal farmers.
This has provided a gateway of opportunities for employment for women. It generates employment for 19% of India’s total labour force.
Hence, horticulture must be promoted with sufficient investment and infrastructure.
Ques 12 ‘Information technology plays a very significant role in achieving sustainable development and food security’ — comment.
Ans: IT plays a very significant role in achieving sustainable development and food security. In the following ways:
1) With the help of IT, weather conditions can be forecast. If, for example, there is a probability of crop failure, then preventive measures
can be taken to avoid or mitigate the impact of food insecurity.
2) IT provides information on emerging technologies, weather and soil conditions for growing various crops etc. and helps in decision
making process.
3) Now days, the farmers can consult Kisan Call Centres and various web sites providing valuable information regarding measures to
improve farm productivity and quality of farm inputs, seeds, fertilisers and various modern techniques.
4 It has potential of employment generation in rural areas.
Ques 13 What is organic farming and how does it promote sustainable development?
Ans: This system of farming relies/depend upon the use of organic inputs such as animal manures and composts for cultivation and discard
the use of chemical fertilisers, toxic pesticides, etc. that harms the eco system drastically.
It promotes sustainable development in the following ways:
1. Sustains Soil Fertility
2. Produce High quality nutritious food for future generations.
3. Prevents water and air pollution.
Thus organic farming is eco friendly.
Ques 14 Identify the benefits and limitations of organic farming.
Ans: The advantages/benefits of the organic farming are as follows:
1. Environment friendly as it is free from the use of Chemicals
2. Sustains Soil Fertility because Organic farming discards the use of chemical fertilisers.
3. Healthier and TastierFood
4. Inexpensive Technology for Small and Marginal Farmers
5. Generates Income from Exports because of huge international demand for organic crops.
Limitations of Organic Farming:
1. In the initial years, Organic Farming offers lesser yield than the conventional farming.
2. Due to the low yield per hectare, this technique was not financially viable for the small farmers.
3 The products obtained from organic farming have shorter life and are quickly-perishable.
4 Choice in production during off-season is quite limited in Organic Farming.
