;

L-6 Rural development

It is a continuous and comprehensive socio- economic process trying to improve all the
aspects of rural life.

In other words, rural development is a comprehensive term which essentially focuses

on action for the development of area which is lacking behind in the overall
development of village economy.

The overall development of rural economy comes under rural development.

Such as

Development of human resources

Development of infrastructure

Land reforms

Poverty alleviation program etc

Agricultural credit

It refers to the credit for the farming. Due to involvement of long time period and
uneven distribution of land, credit becomes the lifeline of Indian agriculture.

Sources of Agricultural credit

There exist 2 type of sources which provide agricultural credit in rural areas.

1. Non institutional sources

2. Institutional sources

1. Non institutional sources

It is the most common sources of rural credit

It includes

Money lenders

Zamindar

Sahukar
Relatives
 Trades

Merits of taking credit from non institutional sources

No legal formalities are required

Loan is provided anytime

Ease in taking loan

Demerits of taking credit from non institutional sources

High rate of interest

Exploitation of farmers

Farmers were forced to sell their products to the lenders at low price

Institutional sources

It refers to organizations which are legally meant to provide credit.

Co- operative credit societies:-

They provide adequate credit to the farmer at reasonable rate of interest. They also
provide directions in agriculture operations to farmer so that they can increase their productivity

Commercial banks

It is institution which performs the functions of accepting deposit granting loans and
making investment with the aim of earning profit.

Example :- SBI(state bank of India) PNB (Punjab national bank ) canara bank etc.

The government realized that agricultural credit needs can not be solely met by
cooperative credit societies and commercial banks should play an Important role.

Regional rural bank (RRB)

These banks are set up to promote credit facilities in rural ad backward areas of the
country they operate at district levels and focus on the credit requirements of the sections
of the societies

NABARD (National bank for Agriculture and rural development)

It is an Apex bank in agricultural and rural credit (established in 1982)the bank has been
entrusted with the matters concerning policy planning and operations in the field of credit for
agricultural and other economic activities in rural areas of the country.
 The basic objective of this s to remote the strength of agricultural credit in rural areas

Self help groups (SHGs)

Self help groups are mall groups of poor people. They help each other tosolve their
problems. SHGs promote small savings among their members. The saving are kept with the
bank with the name of the self help group. Later on this common fun is used to give small
lone its members

The government also provide partial financial assistance to SHGs.

Agriculture marketing-

Indian farmer always faces the problem of selling their product in the market at the
right price. The basis deficit they faces the problem to market their product, and hence the
requirement of agriculture marketing arises.

Agriculture marketing:- is a process that includes assembling storage

processing transportation packaging grading and distribution of different
agriculture commodities across the country

In other words it includes the services involved in moving the agricultural products from
farm to the ultimate consumer

A good marketing system is essential to mobilize the surplus agricultural products from farm to the
ultimate consumer.

A good marketing system is essential to mobilize the surplus agricultural products (food rains and raw
materials) to feed urban populations and and industries.

Defect s of agriculture marketing

Lack of storage facility

Lack of effective transportation in rural areas

Lack of marketing information in farmers

Lack of adequate finance

Inadequate communication

Measures take for agriculture marketing

Regulated market:-

It is a type of market which was established by the government of india for

transparency in buying and selling of agriculture commodities. The buying and selling of
commodities under is market is monitored by the committe which includes the representatives
of government farmers and traders. is established just for protecting farmers from fraud by
middleman and to provide them adequate price for their commodities.

Co-operative agriculture marketing societies

it refers to the type of marketing societies are formed by the farmers to sell the output collectively
and to take advantage of collective bargaining in order to get better price for the crops.

Minimum support price(MSP)

In order to give better price and to increase the incentive for producing agriculture
products the government of india gives minimum support price to the farmers for their
crops. It can be treated as the offer rice by the government to the farmers for their
crops. It can be treated as the offer price by the government to the famers for their
crops. The government purchase the products from the farmers at minimum support
price and stores it in the godowns of food corporation of india (FCI)

Subsidised transport

In order to promote and strengthen agriculture in the economy the government

introduced subsidized transport system for the farmers. Railway offer low rate transport
to the farmers for bringing their produce to the urban markets where they may get a
better deal.

Public distribution system

Concept of ration shopes and fair price shops operates the public distribution system in
the economy. Fair price shops offer essential commodities like rice wheat pulses
kerosene etc, at a lower price to the financially lower sections (below poverty line) of
the societies.

Standardization and grading

Grading is the process of dividing the products in to different lots which have similar
characteristics n shape size type quality performance etc. Products of different qualities
should be separated in to groups and similar quality products are put in to a grading and
quality controls help the farmers to secure more price for better quality of products and
to earn more.

Example- different grades of rice are basmati Arborio brown jasmine white etc.

Diversification of Agricultural activities

Due to huge amount of rise and sole dependence of rural areas on agriculture there
exist a need to diversify the agricultural activities

Divesrsification refers to the shift from crop farming to other areas of production for
employment :It raises the level of income and reduces the heavy rise. Finding livelihood
away from crop farming becomes more important when it is realized that crop farming
sector is overburdened.

It has 2 aspects

1. Diversification of crop production

It refers to changing the single cropping system in to multi – cropping system. Earlier
a single food grain is produced on a piece of land “the basic agenda of diversifying
this is to change the cropping pattern from food grains to cash crops multi- cropping
pattern from food grains to cash crops.
Multi- cropping refers to production of more than 1 crops as they are now engaged
in production of variety of crops.

2. Diversification of productive activities

Due to overburden of crop farming sector major portion of the increasing work force
were given employment opportunities in non farming sectors.
Non- farming primary sector includes

Animal husbandry (includes breeding caring and rearing of farm animals like cattle s
goats duck etc)

Fisheries (includes catching processing and selling of water animals)

Horticulture (Includes cultivation of fruits vegetables flowers medicinal plants etc)

(The revolution connected to horticulture is known as golden revolution)

Sustainable development and organic farming

The development of our present generation without hampering the development of
future generation is known as sustainable development.

Organic Farming
 It is a process of producing food naturally under such farming the use of chemical
fertilizers and high yielding variety of seeds is totally prohibited.
It is an eco- friendly method of cultivation which brings sustainable development in
the country.

In order words, it is a type of farming system in which the total farming restores,
maintain and enhance the balance of ecological system.

This methods of farming is very popular across the globe many countries produces
around 10% of their food output through organic farming.

Benefits of organic farming

Eco – friendly system of production

(Due to non involvement of fertilizers)

It is a less expensive method because of use of traditional technique of production.

Increases the level of income as the demand for organic products is increasing
rapidly in international market

It provides healthier and tastier food

Provides more employment opportunities as it is labour intensive.

Labour Intensive technique

It refers to the technique which requires large amount of labour to produce
the goods
Labour force
It refers to the actual number of people available for work

Summary

Development of human resources

Development of infrastructure
Land reforms
Poverty Alleviation program etc.
Agricultural credit
Sources of Agriculture credit
Non Institutional sources
 Institutional sources
Agriculture marketing
Defects of agriculture marketing
Lacks of storage facility
Lack of effective transportation n rural areas
Lack of marketing information in farmers
Inadequate communication

Measures taken for agriculture marketing

Regulated market
Co-operative agriculture marketing societies
Minimum support price (MSP)
Subsidised transport
Public distribution system
Standardization and grading

Diversification of agriculture activities

Sustainable development
Organic farming
Benefits of organic farming

Questions according to the examination

Short answer type questions

1. Define the term rural development
2. What do you understand by’ non institutional sources of agricultural credit
3. What are the merits of taking credit from institutional sources
4. What do you understand by ‘co –operative credit societies’
5. Write the full from of NABARD
6. What do you understand by the term Agriculture marketing’
7. Define ‘ minimum support price
8. Write down any 2 defects of agriculture marketing
9. What do you understand by the term diversification of agricultural activities.
10. Define sustainable development
11. Define any 2 benefits of organic farming.

Long answer type questions

1. Write a short note on national bank for agriculture and rural development.
2. Explain the concept of self help groups
3. Explain the concept of ‘Regulated market’
4. Define public distribution system
5. What do you understand by diversification of productive activities
Explain the concept of organic farming. Also list down any 3 merits of organic
farming.