RURAL DEVELOPMENT

UNIT 2
SUMMARY SHEET
For NABARD Grade A/B 2019

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Contents
1 Classification of Workers based on Census 2011: ................................................................................................ 4
2 Data regarding Workers as per Census 2011: ...................................................................................................... 4
3 Classification of farm workers in India: ................................................................................................................ 4
4 Definition of Agricultural Labourers: .................................................................................................................... 5
5 Other Allied activities included under Agricultural Labourer: .............................................................................. 5
6 Agricultural Household: (According to the National Sample Survey Organization) ............................................. 5
7 Classification of Agricultural labourers: ................................................................................................................ 6
8 Problems of Agricultural Labourers ...................................................................................................................... 7
9 Causes for the Growth of Agricultural Labourers ................................................................................................. 7
10 Suggestions for the Improvement of Agricultural Labourers: .......................................................................... 7
11 Let us have a look at the landholding pattern in India: (As per Agriculture Census 2015-16) ......................... 7
12 SECC – 2011 (Socio-Economic Caste Census) data on Farmers and Agricultural Labourers: ........................... 8
13 Definition of an Artisan:.................................................................................................................................... 9
14 Nodal Agency for Handicrafts in India: ............................................................................................................. 9
15 Export of Handicrafts: .....................................................................................................................................10
16 Significance of Handicraft Industry:................................................................................................................11
17 Issues of Rural Artisans: ..................................................................................................................................11
18 Solutions .........................................................................................................................................................11
19 How important is Handloom Sector? .............................................................................................................12
20 Features of the Handloom Sector: .................................................................................................................12
21 Important parts of the textile sector in India: ................................................................................................12
22 Demographic Profile of Handloom Worker Households: (Source: The Third Handloom Census, 2010) .......13
22.1 Regional Distribution: .................................................................................................................................13
22.2 Other states with comparatively large handloom household concentrations are: ...................................13
22.3 Rural Urban Distribution:............................................................................................................................13
22.4 A caste-wise distribution of such households is given below: ...................................................................13
23 Handloom Exhibitions in India ........................................................................................................................14
24 Handloom Boards in India ..............................................................................................................................14
25 Problems faced by the Indian Handloom Industry: ........................................................................................15
26 Government Initiatives to Power Handloom Sector: .....................................................................................15
26.1 Integrated Handloom Development Scheme .............................................................................................15
26.2 Marketing and Export Promotion Scheme .................................................................................................16
26.3 Handloom Weavers Comprehensive Welfare Scheme ..............................................................................16
26.4 Mill Gate Price Scheme ...............................................................................................................................16
26.5 Diversified Handloom Development Scheme .............................................................................................16
26.6 Revival Reform and Restructuring Package (RRR) ......................................................................................16

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 26.7 Marketing Assistance:.................................................................................................................................17
26.8 Handloom Mega Cluster Scheme: ..............................................................................................................17
26.9 Deen Dayal Hathkargha Protsahan Yojana .................................................................................................17

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1 Classification of Workers based on Census 2011:
• The Census classifies Workers into two groups namely, Main workers and Marginal
workers.
• Main Workers are those workers who had worked for the major part of the reference period
i.e. 6 months or more.
• Marginal Workers are those workers who had not worked for the major part of the reference
period i.e. less than 6 months.

The Main workers are classified on the basis of Industrial category of workers into the following four
categories:

✓ Cultivators (CL)
✓ Agricultural Labourers (AL)
✓ Household Industry Workers and
✓ Other Workers (OW)

2 Data regarding Workers as per Census 2011:

3 Classification of farm workers in India:

From the classification mentioned in the above section, we see that the farm workers in India are
classified into two: Cultivators and Agricultural Labourers.

• Cultivators are those who work in their own land;

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 • Agricultural Labourers are those who work on the land of others for wages. An agricultural
labourer has no right of lease or contract on land on which she/he works.

Thus, Workers engaged in the agricultural sector = The cultivators and agricultural labourers
(except those engaged in plantation activities).

The table given in the previous section can be simplified further for better analysis regarding the
agricultural labourers and cultivators:

4 Definition of Agricultural Labourers:

• According to the Census of India 2001 "A person who works on another persons land for
wages in cash or kind or share will be regarded as agricultural labour".
• She or he has no risk in the cultivation but merely works on another land for wages.
• An agricultural labourer has no right of lease or contract on land which she/he works.
• For a major part of year they should work on the land of other on wages.

5 Other Allied activities included under Agricultural Labourer:

• The Second Agricultural Labour Enquiry Committee (1956-57) made the definition broader
and viewed agricultural labour to include not only labour employed in crop production but
also engaged in allied activities like animal husbandry, poultry and dairy.
• Thus several more categories of workers were brought within the scope of the term,
"Agricultural labour" in the second enquiry.

6 Agricultural Household: (According to the National Sample Survey Organization)

Households which derived more than 50 per cent of their total income during the last 365 days
preceding the date of survey from agricultural labour occupations only will be regarded as
agricultural labour households.

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To Summarize:

A person who has one or more of the following agricultural occupations in the capacity of a
labourer on hire or on exchange, whether paid in cash or in kind, or partly in cash and partly in kind,
is an agricultural labourer:

(i) farming, including the cultivation and tillage of soil, etc.,

(ii) dairy farming,

(iii) production, cultivation, growing and harvesting of any horticultural commodity,

(iv) raising of livestock, bees or poultry, and

(v) any practice performed on a farm as incidental to or in conjunction with the farm
operations (including any forestry or timbering operations) and the preparation for market
and delivery to storage or to market or to carriage for transportation of farm products.

It may be noted that working in ‘fisheries’ is excluded from agricultural labour. Further, carriage for
transportation in (v) above will refer only to the first stage of the transport from the farm to the first
place of disposal.

Agriculture labourers can be classified into two broad categories:

7 Classification of Agricultural labourers:

• Landless Agricultural Labourer: The labourers don’t posses land and can be further sub-
divided into:

✓ Permanent Labourers attached to cultivating households: Permanent or attached labourers

generally work on some sort of contract. The wages are determined by custom or tradition.

✓ Temporary or Casual Labourers: Casual labourers are engaged only during peak period for
work. The employment is temporary and labourers are paid at the market rate. These
labourers are not attached to any landlords.

• Small and Marginal Land-Owners: These are very small cultivators whose main source of
earnings due to their small and marginal holdings is wage employment. These labourers can
again be divided into three subgroups:
✓ Cultivators: Cultivators are small farmers, who possess very little land and therefore, have to
devote most of their time working on the lands of others as labourers.

✓ Share croppers: A sharecropper is a tenant farmer, someone who works on land that is
rented from its owner. Typically, a share cropper will pay the landowner with part of the
harvest, rather than money.
✓ Lease holders: Lease holders are the tenants who not only work on the leased land but also
work as labourers.

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8 Problems of Agricultural Labourers

✓ Agricultural Labourers are Scattered

✓ Unskilled and Lack Training
✓ Unorganized
✓ Low Social Status
✓ Abundance of Labour
✓ Low Bargaining Power

9 Causes for the Growth of Agricultural Labourers

✓ Increase in Rural Population
✓ Decline of Cottage Industries and Handicrafts
✓ Uneconomic Land Holdings
✓ Increase in Indebtedness
✓ Break-up of Joint Family System

10 Suggestions for the Improvement of Agricultural Labourers:

✓ Improvement in the Bargaining Position
✓ Efficient implementation of land reforms
✓ Creating Alternative Employment
✓ Improvements in Agricultural Sector
✓ Better Credit Availability
✓ Cooperative Farming
✓ Introduction of Skill development and Employment Schemes

11 Let us have a look at the landholding pattern in India: (As per Agriculture Census
2015-16)
• The total number of operational holdings in the country has increased from 138 million in
2010-11 to 146 million 2015-16 i.e. an increase of 5.33%.

• The data for 2015-16 Agriculture Census reveals that in a total of 146 million operational
holdings in the country, the highest number of operational holders belonged to Uttar
Pradesh (23.82 million) followed by Bihar (16.41 million), Maharashtra (14.71 million).

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 • As regards operated area, out of a total of 157.14 million ha, the highest operated area was
contributed by Rajasthan (20.87 million ha), followed by Maharashtra (19.88 million ha),
Uttar Pradesh (17.45 million ha).

• At all India level, percentage increase in number of operational holdings in 2015-16 as

compared to Agriculture Census 2010-11 worked out to 5.33% among states, the highest
variation was found in the case of Madhya Pradesh (12.74%) followed by Andhra Pradesh
(11.85%), Rajasthan (11.12%).

• There is a decrease in the operated area from 159.59 million ha. in 2010-11 to 157.14
million ha. in 2015-16 showing a decrease of 1.53%.

• Some states also showed decline in number of operational holdings. The sharpest fall has
been in Goa (28.17%) and lowest in Manipur (0.09%). However, operated area has shown
declining trends in most of the states.

• The average size of operational holding has declined to 1.08 ha. in 2015-16 as compared to
1.15 in 2010-11.

• The percentage share of female operational holders has increased from 12.79% in 2010-11
to 13.87% in 2015-16 with the corresponding figures of 10.36% and 11.57% in the operated
area. This shows that more and more females are participating in the management and
operation of agricultural lands.

• The small and marginal holdings taken together (0.00-2.00 ha) constituted 86.21% in 2015-
16 against 84.97% in 2010-11 while their share in the operated area stood 47.34% in the
current census as against 44.31% in 2010-11.

• Semi-medium and Medium operational holdings (2.00-10.00 ha) in 2015-16 were only
13.22% with 43.61% operated area. The corresponding figures for 2010-11 census was
14.29% and 44.82%.

• The large holdings (10.00 ha & above) were merely 0.57% of total number of holdings in
2015-16 and had a share of 9.04% in the operated area as against 0.71% and 10.59%
respectively for 2010-11 census.

12 SECC – 2011 (Socio-Economic Caste Census) data on Farmers and Agricultural

Labourers:

• Only 30% of rural households depend on cultivation as their main source of income.
• Whereas, 51.14% derive sustenance from manual casual labour (MCL).
• Fragmentation of landholdings has made it difficult for even farmers to support themselves,
let alone those dependent on MCL.
• Therefore, getting people out of farms will spur mechanization and consolidation of land
holdings, leading to increased agricultural productivity in the long run.

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 • In nearly 75 per cent of the rural households, the main earning family member makes less
than Rs.5,000 per month (or Rs.60,000 annually).
• In just eight per cent of households does the main earning member makes more than Rs
10,000 per month.
• 56.25% of rural households hold no agricultural land.
• The numbers also point to the subsistence level of farming that rural India currently
practices.
• Therefore, creation of gainful non-farm employment should receive top priority in policy
making.

13 Definition of an Artisan:
(Note: This definition is as per the National Sample Survey – NSS)

A skilled worker and handicraftsman working on own-account is an artisan. Persons engaged in the
following occupations are to be considered as artisans:

✓ weavers, knitters, carpet makers, etc.

✓ dress makers, upholsters, etc.
✓ shoe-makers and other leather workers.
✓ blacksmiths, goldsmiths, coppersmiths and other metal workers.
✓ carpenters, painters, etc.
✓ stone carvers, brick layers, plasterers, glazers, cement finishers, etc.
✓ printers (paper and textile), engravers, block makers, etc.
✓ potters, glass and ceramic workers, etc.
✓ basketry and mat weavers and related workers.
✓ makers of musical instruments, toys, sports goods, etc

14 Nodal Agency for Handicrafts in India:

• The Office of Development Commissioner (Handicrafts) under Ministry of Textiles,
Government of India is the nodal agency in the Government of India for craft and artisan-
based activities.
• It assists in the development, marketing and export of handicrafts, and the promotion of
craft forms and skills.
• The assistance is in the form of technical and financial support, including in the form of
schematic interventions implemented through its field offices.

Note: The data given below is obtained from the Office of Development Commissioner (Handicrafts)
webpage.

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15 Export of Handicrafts:
Export Promotion Council for Handicrafts (EPCH)

• The EXPORT PROMOTION COUNCIL FOR HANDICRAFTS (EPCH) is the apex government body
and operates under the administrative control of the Ministry of Textiles, Government of
India.
• EPCH has the distinction of being considered a ‘model council’, a self-sustaining body that self-
finances all its promotional activities.

• Handicrafts is a labor-intensive sector with high potential of employment for poorer section
of the society in rural areas. It is economically important because of low capital investment,
high value addition and negligible import content and high potential for export earnings.
• The emergence of handicrafts sector, as one of the sources of foreign exchange earnings for
the country, is evident from the data of exports of all India's handicrafts from India.

No. of Artisans: As per census of Handicrafts being conducted in the 11th Plan the major
highlights are as under:

Total 68.86 Lakhs

Male 30.25 Lakhs (43.87 %)
Female 38.61 Lakhs (56.13 %)

Demographic Profile of Artisans:

SC 20.8%
ST 7.5%
OBC 52.4%
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General 19.2%

Note: This is the data mentioned on the website of Development Commissioner (Handicrafts)
under Ministry of Textiles, Government of India.

16 Significance of Handicraft Industry:

✓ Economic growth
✓ Environmental benefits
✓ Social empowerment

17 Issues of Rural Artisans:

✓ Neglect by State and Central Governments

✓ Non-Coverage under Agricultural Relief Programmes
✓ Non-Involvement in Rural Developmental Programmes
✓ Lack of Skill Improvement and Technology Up-gradation
✓ Lack of Specialized Markets
✓ Non-existence of Infrastructural Facilities
✓ Non-Availability of Quality Raw Materials
✓ Weak Financial Power
✓ Inability to Get Bank Loans
✓ Poor Access to Information
✓ Lack of Linkages with Different Developmental Institutions
✓ Need of Social Security Mechanism

18 Solutions

✓ Certifying products and standardizing processes

✓ Improving design, product development and quality control
✓ Strengthening artisan institutions
✓ Conducting research, documentation and dissemination
✓ Influencing government policy and spending
✓ Handholding the artisan through the value chain
✓ Increasing demand for crafts and strengthening market linkages
✓ Strengthening the decentralized production model
✓ Building a multi-stakeholder approach

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19 How important is Handloom Sector?
• The Handloom Sector is one of the largest unorganized economic activities after agriculture
and constitutes an integral part of the rural and semi-rural livelihood.
• Handloom weaving constitutes one of the richest and most vibrant aspects of the Indian
cultural heritage.
• The sector has an advantage of being less capital intensive, minimal use of power, eco-
friendly, flexibility of small production, openness to innovations and adaptability to market
requirements.
• It is a natural productive asset and tradition at cottage level, which has sustained and grown
by transfer of skill from one generation to other.

20 Features of the Handloom Sector:

• Handloom weaving is largely decentralized, and the weavers are mainly from the
vulnerable and weaker sections of the society, who weave for their household needs and
also contribute to the production in the textile sector.
• The weavers of this industry are keeping alive the traditional craft of different States.
• The level of artistry and intricacy achieved in the handloom fabrics is unparalleled and
certain weaves/designs are still beyond the scope of modern machines.
• Handloom sector can meet every need ranging from the exquisite fabrics, which takes
months to weave, to popular items of mass production for daily use.

As per 3rd Handlooms Census, carried out in 2009-10, more than 43 lakh people are engaged in
weaving and allied activities which was 65.5 lakh as per 2nd handloom census conducted during
1995-96.

Its contribution to the total production of textile industry is 14%.

Note: The fourth Handloom Census has been initiated. Kindly follow the monthly Current Affairs
magazine and Reports and Schemes section for the latest updates.

21 Important parts of the textile sector in India:

✓ Modern textile mills
✓ Power looms (Independent)
✓ Handlooms and
✓ Apparel sector

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22 Demographic Profile of Handloom Worker Households: (Source: The Third
Handloom Census, 2010)

22.1 Regional Distribution:

• It is of interest to note the geographical location of people engaged in this sector to know
where the skills and potentials are largely concentrated, so that due focus and incentives
could be channeled into building up the industry.
• The reservoir of handloom skills is concentrated in the North-Eastern states, who together
account for 16.83 lakh (60.5%) handloom households.
• Assam alone accounts for 12.41 lakh (44.6%) handloom households, whereas Manipur and
Tripura have 1.79 lakh (6.4%) and 1.21 lakh (4.3%) such households, respectively.

22.2 Other states with comparatively large handloom household concentrations are:
✓ West Bengal: 4.07 lakh (14.6%).
✓ Andhra Pradesh: 1.77 lakh (6.4%).
✓ Tamil Nadu: 1.89 lakh (6.8%).
✓ Uttar Pradesh: 1.11 lakh (4.0%).

22.3 Rural Urban Distribution:

• Nearly 27.83 lakh handloom worker households have been enumerated across 29 states
and Union Territories of India.
• Of this, nearly 87 per cent are in rural areas and remaining 13 per cent in urban areas.
• The average family size of households engaged in handloom related activities is 4.59 persons
(4.63 in rural areas and 4.29 for urban areas).

22.4 A caste-wise distribution of such households is given below:

✓ OBCs: 11.39 lakh (40.9%).
✓ Others: 7.56 lakh (27.2%).
✓ STs: 6.15 lakh (22.1%).
✓ SCs: 2.73 lakh (9.8%).

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Handloom: A State Subject

• Handloom, being a state subject, its development is primarily the responsibility the State
Governments.
• The Central Government through various developmental schemes and interventions plays
the role of supplementing the efforts of state governments from time to time.

23 Handloom Exhibitions in India

• Surajkund Crafts Mela, Faridabad
• Pushkar Fair, Pushkar (Rajasthan)
• Goa Carnival, Goa
• Dushera Mela, Kota (Rajasthan)
• Baisakhi Mela, Punjab
• Kubh Mela, Haridwar
• Kutch Desert Festival, Gujarat
• Indian International Trade Fair (New Delhi)

24 Handloom Boards in India

Government of India has set up various Handloom Boards to look after the production level, export
and import facet, making schemes effective & providing necessary funds for the growth of
Handloom Industry.

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These are:
✓ All India Handloom Board
✓ Cotton Advisory Board
✓ Central Wool Development Board
✓ Jute Advisory Board
✓ Central Silk Board

25 Problems faced by the Indian Handloom Industry:

The present age of modernization and globalization has posed a number of challenges for the
handloom industry in India. The issues of concern to this industry are discussed below.

✓ Rising input costs

✓ Credit problem

✓ Marketing bottlenecks

✓ Lack of modernization

✓ Migration to other fields

✓ Poor infrastructure

✓ Inadequate research and development

✓ Lack of Reliable data

26 Government Initiatives to Power Handloom Sector:

• Recognizing the socio-economic importance of the handloom industry in the India's
economy, policies should be formulated in such a manner that they benefit the dis-
advantaged sectors of the society on one hand and ensure the flourishing growth of the
industry on the other hand in and outside the country.
• Besides, state help and intervention, private participation, modern outlook and induction of
younger generation is required to faster, sustainable and more inclusive growth of the
handloom industry.

26.1 Integrated Handloom Development Scheme

It provides need based inputs to clusters of 300 – 500 handlooms or Groups of 10 – 100 weavers for
making them self-sustainable by providing them financial assistance for margin money, new looms
and accessories, skill upgradation, marketing opportunities and for construction of worksheds etc.

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26.2 Marketing and Export Promotion Scheme

It provides platform to the weavers and their organizations to participate in the domestic as well as
international trade events and sell their products directly to the buyers.

Handloom Export Promotion Council:

The Handloom Export Promotion Council, itemized under the Companies Act, 1956, was established
in 1965 by the Government of India as the nodal agency for export promotion efforts related to the
cotton handloom textiles.

26.3 Handloom Weavers Comprehensive Welfare Scheme

This comprises of two separate schemes viz. the Health Insurance Scheme (HIS) for providing
Health Insurance to the Handloom weavers and Mahatma Gandhi Bunkar Bima Yojana (MGBBY) for
providing Life insurance cover in case of natural/ accidental death, total/partial disability due to
accident.

26.4 Mill Gate Price Scheme

• This scheme makes available all types of yarn at mill gate price to the eligible handloom
agencies to facilitate regular supply of basic raw material to the handloom weavers and to
optimize their employment potential.
• Under the scheme, the Government of India reimburses the transportation expenses
involved in the supply of yarn from mill to godown of the user agencies.

26.5 Diversified Handloom Development Scheme

This scheme provides assistance for technological and skill-upgradation of weavers for design and
product development through 25 Weavers’ Service Centres and 5 Indian Institutes of Handloom
Technology all over the country to improve the productivity and earnings of the handloom weavers.

26.6 Revival Reform and Restructuring Package (RRR)

• In order to open the choked credit lines to enable access to fresh credit for handloom sector,
GOI has approved RRR package for waiver of overdue loan for eligible apex and primary
weaver cooperative societies and individual weavers.
• The Government has also approved weaver credit card under institutional credit component,
providing margin money assistance @ Rs. 4200/- per weaver, 3% interest subvention for
three years and credit guarantee for 3 years by Credit Guarantee Trust Fund for Micro, Small
and Medium Enterprises.
• Focus is on assisting weavers with designs, marketing and improved wages.
• National Institute of Fashion Technology and leading members of the fashion industry have
been roped in for design support to weavers.

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 • At the same time equipment and raw material for producing clothes for the high end
customers and niche market are also being provided.
• Higher wage coming from high value production and reducing level of transactions in
marketing would enhance the wage of the handloom weavers substantially.

26.7 Marketing Assistance:

• In order to provide better marketing reach, the Ministry has launched an E-commerce
initiative Flipkart.
• This will strengthen the existing Primary Weaver Cooperative Society by assisting
entrepreneur from the weavers families for taking up production and supply directly to the
customers.
• Synergy of handloom, handicraft with tourism has been worked out in consultation with
Ministry of Tourism. State Chief Secretaries have been requested for identifying traditional
handloom weavers/handicraft artisans villages for development as “Adarsh Gram” as
tourists destination.

26.8 Handloom Mega Cluster Scheme:

• Development of Tassar handloom products like sarees, dress material and wide range of
home furnishing fabric for exports typical to Bhagalpur in Bihar has been initiated under
Handloom Mega Cluster Scheme.
• Another mega cluster is being developed at Trichy, Tamilnadu. Over 15,000 handloom
weavers will be directly benefited under each these two clusters.
• The remaining new mega clusters at Surat, Bareilly, Lucknow, Kutch and Mysore announced
in the Budget Speech are at various stages of implementation.

26.9 Deen Dayal Hathkargha Protsahan Yojana

• The scheme has been in operation since 2000.

• This is a scheme that was specially launched for the rich handloom sector of the country and
undertakes things like development of products, support in infrastructure, support at the
institutional level, weaver’s training, Supporting in technical and marketing terms etc.
• The scheme takes care of this and many other things at both Micro as well as Macro levels
and provides support to the weavers and their craft.
• This is aimed at increasing the efficiency of these weavers so that they may meet the rising
demands of their products in India and globally.
• The scheme further aims to provide technical assistance and also support in several other
aspects of their art which would channelize their creative energies into transforming their
arts.

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