Detailed, Step-by-Step NCERT Solutions for Class 12 Economics Chapter 12 Rural Development Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.
Rural Development NCERT Solutions for Class 12 Economics Chapter 12
Rural Development Questions and Answers Class 12 Economics Chapter 12
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 actions for the development of economically and socially backward rural areas. The following are the key issues of action plan for rural development in India:
- Land Reforms: Technical reforms in agriculture should be supplemented with land reforms.
- Poverty Alleviation: Measures need to be taken, to alleviate poverty and improve the living conditions of the weaker section of the area.
- Human Capital Formation: Investment in human capital through education, training and medical care is required to make the manpower resources strong and efficient.
- Development of Productive Resources: The development programmes should be launched to improve the condition of landless labourers and non-farming communities and generate employment opportunities particularly in the non-agricultural areas.
- Development of Infrastructure: It includes provision of credit facilities to the farmers, facilities in agricultural research, efficient means of transport, communication and power resources for development of rural areas.
Question 2.
Discuss the importance of credit in rural development.
Answer:
In India, people living in rural areas are mostly farmers. These farmers are poor and cannot afford modem tools and equipment to perform agricultural and allied activities. Moreover, there is a long time gestation between crop sowing and realisation of income after production. Therefore, farmers need credit to meet their initial investment on seeds, fertilisers, implements and other family expenses. They can obtain funds by borrowing loans for their general and specific need. Thus, credit plays a vital role in the rural development.
Question 3.
Explain the role of micro-credit in meeting credit requirements of the poor.
Answer:
Self Help Groups (SHGs) are formed to organise rural poor, particularly women, into small groups and pool their savings. A typical SHG consists of 15-20 members. These members usually belong to one neighbourhood, who meet and save regularly. Saving per member depends on the ability of the people to save.
The SHG can extend these savings as small loans or micro-credit to the needy members from the group itself. Although the group, charges interest .on these loans, it is still less than what the moneylenders charge. If the group saves regularly for a year or two, it becomes eligible for availing loan from the bank.
Question 4.
Explain the steps taken by the government in developing rural markets.
Answer:
The government has taken the following steps for developing rural markets:
(i) Regulated Markets: Regulated markets have been developed with, a view to protect the farmers from the malpractices of intermediaries. The system of regulated markets helps farmers to secure fair prices for their produce and conduct dealing in the market without the fear of being cheated.
(ii) Use of Standard Weights: The government has appointed Weight Inspectors to check the use of standard weights to eliminate the chances of farmers being cheated by brokers.
(iii) Grading and Standardisation: It means preparation, shifting and sorting of goods according to a certain criteria. Grading the goods confirms their quality and encourages the farmers to grow quality products. Moreover, it provides confidence to the consumers.
(iv) Dissemination of Market Information: There is a need to develop an efficient information system to ensure availability of knowledge to the farmers regarding prevailing market prices. All India Radio and Doordorshan broadcast prices of agricultural goods on a regular basis.
(v) Marketing Inspection, Research and Training: There is an urgent need to market adequate arrangements for education, research extension, market inspection and occasional surveys of market. This will go a long way to help in identifying problems and finding solutions for efficient marketing system. The Directorate of Marketing an d Inspection undertakes inspection of major agricultural products throughout the country.
(vi) Provision of Warehousing Facilities: To prevent distress sale by the farmers, particularly the small and marginal farmers, due to prevailing low prices, rural godowns have been set up. The Central Warehousing Corporation was set up in 1957 with the purpose of constructing and running godowns and warehouses for the storage of agricultural produce. The states have also set up the State Warehousing Corporations for the same purpose.
(vii) Organisation of Cooperative Marketing Societies: The government has encouraged the establishment of cooperative marketing societies such as National Cooperative Development Corporation (NCDC) to promote programmes for the production, processing, storage and marketing of agricultural produce.
(viii) Development of Means of Transport: Under various Five Year Plans, the government has paid attention towards the development of means; of transport to facilitate cheap and easy transportation of agricultural produce.
Question 5.
Why is agricultural diversification essential for sustainable livelihoods?
Answer:
Agricultural diversification refers to change in cropping pattern and/or a shift of workforce from agriculture to other allied activities and non-agriculture sector. There are two major problems associated with agriculture:
(i) In India, most of the farm labourers get engaged during kharif season and many of them remain unemployed during rabi season, It happens especially’ in the areas with poor irrigational facilities.
(ii) Agriculture is burdened with excess supply of labour’, Due to these reasons, many people suffer from disguised and seasonal unemployment. Diversification in agriculture is essential to avoid the greater risk associated with the sole dependence on farming for livelihood.
Question 6.
Critically evaluate the role of the rural banking system in the process of rural development in India.
Answer:
Rapid expansion of the banking system had a positive impact on rural farm and non-farm output, income and employment. Rural banking has helped farmers to avail services and credit facilities. Moreover, it has become a source of variety of loans to farmers to meet their production needs.
India has achieved food security since the events of famines have been reduced significantly. At present, FCI maintains abundant stock of grains. However, formal institutions, except commercial banks, have failed to ensure availability of loans to the rural poor. Owing to the political populism, the government often becomes inconsiderate towards the recovery of loans.
Moreover, there has been a high default rate on part of the farmers. Therefore, the banking sector needs to take up the role of customer relationship specialist to ensure proper disbursal and recovery of loans.
Question 7.
What do you mean by agricultural marketing?
Answer:
Agricultural marketing is a process that involves the assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country.
Question 8.
Mention some obstacles that hinder the mechanism of agricultural marketing.
Answer:
Over the years, the government has taken several steps to improve the mechanism of agricultural marketing in India. Although progress has been made in this sphere, there are still many shortcomings in the existing system of agricultural marketing.
(i) Selfish Private Traders: Private traders misguide farmers through faulty weighing, manipulated accounts and incorrect information about prevailing market prices.
(ii) Sale at Village Level: It has been discovered that despite a network of the regulated markets, farm produce is still being bought by the traders in the villages. 40-50 per cent of the total production of paddy was being sold directly to the rice mills. On an average only 50 per cent of the total marketed surplus was brought to the market.
(iii) Inadequate Transport and Storage Facilities: Transport facilities have been inadequate. Farmers experience a lot of difficulty in carrying produce from fields to their homes and from villages to markets. Moreover, there is inadequate access to proper storage facilities, which results in huge wastage of perishable items.
(iv) Non-availability of Information: The farmers do not get information about the prevailing prices in the market. As a result, the farmers have to accept whatever prices are quoted to them and prevent them from obtaining optimum profits.
Question 9.
What are the alternative channels available for agricultural marketing? Give some examples.
Answer:
Alternate marketing channels have been emerging through which farmers can directly sell their produce to consumers. It increases their share in the price paid by the consumer. Example of Alternative Marketing Channels
- Apni Mandi in Punjab, Haryana, Rajasthan
- Hadaspur Mandi in Pune
- Rythu Bazar – a vegetable and fruit market in Andhra Pradesh
- Uzhavar Santhai – a farmers markets in Tamil Nadu
Question 10.
Distinguish between green Revolution’ and golden Revqt&tion’.
Answer:
Green Revolution was a strategy adopted by India after independence to achieve self-sufficiency in foodgrains. Introduction of HYV seeds along with fertilisers, insecticides and modern irrigational facilities resulted in increased crop yields of foodgrains like wheat and rice. Golden revolution refers to the period between 1991-2003
when the planned investment in horticulture became highly productive and it emerged as a sustainable livelihood option in India. 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 the second largest producer of fruit and vegetables.
Question 11.
Do you think various measures taken by the government to improve agricultural marketing are sufficient? Discuss.
Answer:
Various measures have been taken by the government to improve agricultural marketing, which include regulation of markets, provision of infrastructural facilities, promotion of cooperative marketing and adoption of policy instruments to protect farmers’ income. Despite of all the measures undertaken so far, there are still many obstacles in attaining successful agricultural marketing.
- Farmers often get trapped by defective weighing techniques and misappropriation of accounts.
- Farmers have limited knowledge of market prices and conditions and hence, they are forced to sell their output at a lower price.
- Storage facilities are not sufficient which expose the crops to the attacks by pests and bad weather.
- Existence of moneylenders for obtaining credit is still predominant because of the lack of institutional sources of finance.
- Insufficient transportation facilities limit the farmers from selling their produce at far off places.
Question 12.
Explain the role of non-farm employment in promoting rural diversification.
Answer:
Indian agricultural sector is already overcrowded. This creates the problem of disguised and seasonal ; unemployment. Thus, the rapidly increasing labour force needs to find alternate employment opportunities in non-farm sectors. A shift of work force from agriculture to other allied activities and non-agriculture sector promotes agricultural diversification.
Non-farm economy has several segments such as food processing industries, leather industries, tourism, pottery, crafts and handlooms. Promotion of non-farm activities helps farmers in acquiring new skills, explore alternative sources of revenues and raise income.
Question 13.
Bring out the importance of animal husbandry, fisheries and horticulture as a source of diversification.
Answer:
Animal husbandry, fisheries and horticulture have emerged as important sources of diversification. : Their role and contribution to the Indian economy have been discussed below.
(i) Animal Husbandry: Animal husbandry is a branch of agriculture-related to the management and care of farm animals such as cattle, sheep, pigs, hens and goats. It is integrated with the I rural sector of Indian economy. Livestock plays a significant role in the rural development.
At present, the livestock sector alone provides alternate livelihood options to over 70 million small 1 and marginal farmers and landless labourer. India’s wealth of cattle stands around 300 million, j which includes 108 million buffaloes (2012). The performance of the Indian dairy sector has been quite impressive over the last three decades. Meat, eggs, wool and other by-products are ! also emerging as important productive sectors.
(ii) Fisheries: The water bodies consists of sea. oceans, rivers, lakes, natural aquatic ponds, streams etc. These are an integral and life-giving source for the fishing community. Kerala, Gujarat, Maharashtra and Tamil Nadu are the major producers of marine products.
There has been a significant development of fisheries in India due to progressive increase in budgetary allocations and introduction of new technologies. At present, inland sources contribute about 64 per cent to the total fish production and the remaining 36 per cent comes from the marine secton Tubes total fish production in India accounts for 0.7 per cent of the total GDP.
(iii) Horticulture: Horticulture.is 1- the art and science of cultivating fruits, vegetables,tuber crops,flowers, medicinal and aromatic plants, spices and plantation crops. India has varying climate and soil conditions, which facilitates growing of diverse horticultural crops, These crops play Im a crucial role in providing food and nutrition, besides addressing employment concerns.
India has emerged as a world leader in producing a variety of fruits like mangoes, bananas, coconuts, cashew nuts and a number of spices. Horticulture has contributed significantly in improving the economic condition of many farmers.
Question 14.
‘Information technology plays a very significant role in achieving sustainable development and food security’-Comment.
Answer:
Various information and software tools have been developed, which help the governments predict areas of food insecurity and vulnerability. Accordingly, necessary action can be taken to prevent or reduce the likelihood of an emergency. It also benefits the agriculture sector as it can disseminate information about emerging technologies and their applications, prices, weather and soil conditions for growing different crops.
IT acts as a tool for releasing the creative potential and knowledge embedded in society. It also has potential of employment generation in rural areas. Thus, information technology plays a significant role in achieving sustainable development and food security.
Question 15.
What is organic farming and how does it promote sustainable development?
Answer:
Organic farming includes the entire system of farming that restores, maintains and enhances the ecological balance. Organic farming promotes sustainable development by rendering the following benefits:
- Provides nutritional and healthy foods
- Uses locally produced and cheap inputs to produce organic products
- Produces goods in an environmentally sustainable way
- Minimises the risk chemical fertilisers and pesticides
- Prevents soil and groundwater pollution
Question 16.
Identify the benefits and limitations of organic farming.
Answer:
The benefits and limitation of organic farming are discussed below:
Benefits of Organic Farming
- Organic agriculture uses locally produced and cheap, organic input, thereby generating good returns on investment.
- It has a potential of income generation through exports as the demand for organically grown crops is rising.
- Organically grown food has more nutritional value than the food grown through chemical farming. This provides us with health foods.
- Organic farming requires more labour input and hence is an attractive proposition in India.
- The produce is pesticides free and produced in an environmentally sustainable way.
Limitations of Organic Farming
- Yields from organic farming are less compared to the yield from modem agriculture farming, at least in the initial years.
- Organic produce may also have more blemishes and shorter shelf life than sprayed produce,
- Infrastructural facilities are inadequate to encourage small farmers to adopt organic farming
- There is a limited choice to produce off-season crops in organic farming.
Question 17.
Enlist some problems faced by farmer’s during the initial years of organic farming.
Answer:
Problems faced by farmers during the initial years of organic farming are:
- Limited or no knowledge regarding organic farming methods
- Lack of financial support to buy farm inputs
- Fear of losing revenue since yields from organic farming are low
- Risk of losing farm output because of shorter shelf life