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.<\/li>\n<\/ul>\nQuestion 2.
\nDiscuss the importance of credit in rural development.
\nAnswer:
\nIn 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.<\/p>\n
<\/p>\n
Question 3.
\nExplain the role of micro-credit in meeting credit requirements of the poor.
\nAnswer:
\nSelf 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.<\/p>\n
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.<\/p>\n
Question 4.
\nExplain the steps taken by the government in developing rural markets.
\nAnswer:
\nThe government has taken the following steps for developing rural markets:
\n(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.<\/p>\n
(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.<\/p>\n
(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.<\/p>\n
(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.<\/p>\n
<\/p>\n
(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.<\/p>\n
(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.<\/p>\n
(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.<\/p>\n
(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.<\/p>\n
Question 5.
\nWhy is agricultural diversification essential for sustainable livelihoods?
\nAnswer:
\nAgricultural 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:<\/p>\n
(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.<\/p>\n
(ii) Agriculture is burdened with excess supply of labour\u2019, 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.<\/p>\n
Question 6.
\nCritically evaluate the role of the rural banking system in the process of rural development in India.
\nAnswer:
\nRapid 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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
<\/p>\n
Question 7.
\nWhat do you mean by agricultural marketing?
\nAnswer:
\nAgricultural marketing is a process that involves the assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country.<\/p>\n
Question 8.
\nMention some obstacles that hinder the mechanism of agricultural marketing.
\nAnswer:
\nOver 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.<\/p>\n
(i) Selfish Private Traders: Private traders misguide farmers through faulty weighing, manipulated accounts and incorrect information about prevailing market prices.<\/p>\n
(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.<\/p>\n
(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.<\/p>\n
(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.<\/p>\n
<\/p>\n
Question 9.
\nWhat are the alternative channels available for agricultural marketing? Give some examples.
\nAnswer:
\nAlternate 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<\/p>\n
\n- Apni Mandi in Punjab, Haryana, Rajasthan<\/li>\n
- Hadaspur Mandi in Pune<\/li>\n
- Rythu Bazar – a vegetable and fruit market in Andhra Pradesh<\/li>\n
- Uzhavar Santhai – a farmers markets in Tamil Nadu<\/li>\n<\/ul>\n
Question 10.
\nDistinguish between green Revolution\u2019 and golden Revqt&tion\u2019.
\nAnswer:
\nGreen 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<\/p>\n
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.<\/p>\n
Question 11.
\nDo you think various measures taken by the government to improve agricultural marketing are sufficient? Discuss.
\nAnswer:
\nVarious 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\u2019 income. Despite of all the measures undertaken so far, there are still many obstacles in attaining successful agricultural marketing.<\/p>\n
\n- Farmers often get trapped by defective weighing techniques and misappropriation of accounts.<\/li>\n
- Farmers have limited knowledge of market prices and conditions and hence, they are forced to sell their output at a lower price.<\/li>\n
- Storage facilities are not sufficient which expose the crops to the attacks by pests and bad weather.<\/li>\n
- Existence of moneylenders for obtaining credit is still predominant because of the lack of institutional sources of finance.<\/li>\n
- Insufficient transportation facilities limit the farmers from selling their produce at far off places.<\/li>\n<\/ul>\n
<\/p>\n
Question 12.
\nExplain the role of non-farm employment in promoting rural diversification.
\nAnswer:
\nIndian 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.<\/p>\n
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.<\/p>\n
Question 13.
\nBring out the importance of animal husbandry, fisheries and horticulture as a source of diversification.
\nAnswer:
\nAnimal husbandry, fisheries and horticulture have emerged as important sources of diversification. : Their role and contribution to the Indian economy have been discussed below.<\/p>\n
(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.<\/p>\n
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.<\/p>\n
(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.<\/p>\n
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.<\/p>\n
(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.<\/p>\n
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.<\/p>\n
Question 14.
\n\u2018Information technology plays a very significant role in achieving sustainable development and food security\u2019-Comment.
\nAnswer:
\nVarious 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.<\/p>\n
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.<\/p>\n
<\/p>\n
Question 15.
\nWhat is organic farming and how does it promote sustainable development?
\nAnswer:
\nOrganic 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:<\/p>\n