 Majority of our population living in rural

areas, where they don’t get even basic needs.

 Share of agriculture in GDP has declined in
comparison to service and industrial sector
but our most of the population is still
dependent on agriculture.
 Real progress of India is possible only when
rural areas and rural people are developed, so
that overall growth of India could be
achieved.
 It means to improve the quality of living of
rural people.
 It does not mean the development of
agriculture only but to improve their
economic and social conditions.
 To improve this govt. has taken steps in Five
year plans.
 Rural population is more and they are always
lagged behind.
 1. Development of Human Resources- through
proper attention to education and health facilities.
 2. Development of Infrastructure- involves
improvement in electricity, irrigation, marketing etc.
 3. Land Reforms- involves elimination of exploitation
in land relations, providing land to tiller etc.
 4. Alleviation of Poverty- taking steps to improve
living conditions of weaker sections.
 5. Development of Productive Resources of each
Locality- to enhance opportunities of employment
other than farming.
 In agriculture, farmer need credit because of
long time gap between crop sowing and
realization of income.
 Proper and timely credit is required for better
agricultural productivity and income.
 If farmers don’t get proper credit they can’t
give the high productivity of their land.

 On the Basis of Time:-
 1. Short- Term Credit- credit given for less than
15 months. Given for- seeds, fertilizers, paying
wages etc. Repaid- out of current income.
 2. Medium- Term Credit- 15 months to 5 years.
Given for- purchasing cattle, agricultural
implements, expenditure on marriage, various
functions etc.
 3. Long- Term Credit- more than 5 years, extend
to 15 to 20 years. Given for- improvements on
land, tube wells, machines, tractors, repay old
debts.
 On the Basis of Purpose:-
 1. Productive Loans- helps in raising
agricultural production and productivity.
 Given for- seeds, fertilizers, improvements of
land.
 2. Unproductive Loans- don’t help to raise
agricultural production and productivity.
 Given for- marriage, supporting family in
time of crop failure, setting of old debts etc.
 Non Institutional Sources:-
 1. Money Lenders- they exploit the small and
marginal farmers, because they don’t have
proper knowledge.
 2. Relatives- these are informal loans with no
interest, repaid even after harvest.
 3. Traders and commission agents- provide
loan at high rates and also take their crops.
 4. Rich Landlords- small and marginal
farmers take from them, they get exploited
by them with high rates.
 Institutional Sources:-
1 . Co- operative Credit- they stop their exploitation from
moneylenders, provide at low rates.
 2. Land Development Banks- given against their land. Given for-
improvement of land, purchasing agricultural implements, repay old
debts.
 3. Commercial Bank Credit- play marginal role in advancing rural credit.
 4. Regional Rural Banks- opened in rural areas where there is no bank.
Given to small, marginal farmers, agricultural laborers etc.
 5. The Government- loans provided by them is- taccavi loans. Given
during emergencies, natural calamities, with low rates.
 6. National Bank for Agricultural and Rural Development(NABARD)- Apex
Bank, promote health and strength of credit institutions. Promote rural
prosperity.
 7. Self- Help Group (SHG) Bank Linkages Program for Micro Finance-
focus- those poor people which don’t get any banking service in rural
areas. Target- small and marginal farmers etc. Also empower women.
1. High Interest Rates
2. Manipulation of
Accounts
3. Unfavorable Loan
Conditions
 1. Stops exploitation.
 2. Rate of interest is low.
 3. Give loans according to
time period.
 4. Improve the quality of
agriculture.
 1. Low Interest Rate- if low interest rate is
given than only farmers is ready to take loan
and improve their quality of farming.
 2. Convenience to Farmer- if farmers were
given Convenience of repaying in easy
installments and after harvesting it is good
for them.
 3. Equity to the Farmer- if case they are not
be able to repay loan, then after proper
balance with farmer, then only property has
to be taken.
 1. Insufficiency- credit is low as compared to
demand.
 2. Inadequate Coverage of Institutional Sources- they
are short in number to cover whole rural farmers.
 3. Inadequate Amount of Sanction- farmers are not
given proper amount of loan so they utilize it for
unproductive purposes also.
 4. Less Attention to Poor or Marginal Farmers- small
farmers are not getting loan, on behalf of them well-
to-do farmers are taking loans.
 5. Growing Overdues- sometimes farmers are not be
able to repay loans, that’s why banks are getting
cautious for giving loans.
 Agricultural Marketing needs urgent attention
in the scheme of securing rapid rural
development.
 Meaning- involves assembling, storage,
processing, transportation, packaging,
grading and distribution of different
agricultural commodities across the country.
 In this farmers get fair prices for their crops.
 Movement- farm produce- producer-
ultimate consumer.
 1. Manipulations by Big Traders- faulty
weights.
 2. Lack of Market Information- selling at low
prices, because don’t have knowledge about
market.
 3. Lack of Storage Facilities- don’t have
proper storage facilities, their products get
wasted due to lack of this, and they also have
to sell at low price.
 1. Regulated Markets- to protect farmers
from malpractices of sellers and brokers.
 2. Infrastructural Facilities- to provide
facilities like roads, warehouses etc.
 3. Cooperative Marketing- to realize fair price
for farmers products.
 4. Different Policy Instruments- like Minimum
Support Prices, Maintenance of Buffer Stocks,
Public Distribution System.
 1.Origin of Farmers Market- implemented to
remove the exploitation by middle men, they
can directly sell their products.
 Ex- Apni Mandi in Punjab, Haryana and
Rajasthan.
 Hadaspar Mandi in Pune.
 Rythu Bazars in Andhra Pradesh.
 Uzhavar Sandies in Tamil Nadu.
 2. Alliance with National and Multinational
Companies- they get connected with farmers
and tell them to grow farm products like
vegetables, fruits, etc.
 They provide seeds, and also ensure them
pre-decided prices for their produce.
 Famers get assurance and they do the work in
full swing.
 1. Lack of Storage Facility
 2. Distress Sale- some farmers are so poor that they can’t
wait for better price so they are forced to sell at current
price.
 3. Lack of Transportation- due to lack of proper roads
farmers have to sell their products in villages itself at low
rates.
 4. Long Chain of Middlemen- large chains reduce the
returns of the cultivators due to their high margins.
 5. Lack of Institutional Finance- no proper govt. aid, so
they have to clutch in the hands of moneylenders.
 6. Lack of Grading- they don’t rate their products as good
or bad, so they don’t get the right price.
 7. Lack of Market Information- farmers are unaware of
right price and time for selling their produce, so they get
exploited by money lenders and big traders.
 1. Extension of Storage and warehousing
facilities.
 2. Establish Regulated Markets.
 3. Improve transport facilities.
 4. Cheap Credit.
 5. Provision of Grading.
 6. Supply Market Information
Meaning- reducing the share of labor force in
agriculture sector and finding employment in
non- farm activities.
Reason- 1. To reduce the risk of earning from
agriculture sector.
2. To give wider choice.
Benefits- 1. Reduce risk from agriculture
sector.
2. Additional employment opportunities.
3. Higher level of income.
4. Helps in overcoming poverty.
 1. Diversification of Crop Production-
Involves shift from single cropping to multi-
cropping system.
 2. Diversification of Productive Activities-
Involves shift of work force from agriculture
sector to other related and non- agriculture
sector.
 1. Animal Husbandry- means breeding,
rearing and caring of farm animals.
 Also called Livestock.
 Meat, eggs, wool and other by products are
source of income for farmers.
 Provides livelihood to over 70 million small
and marginal farmers.
 Major source of women employment.
 Provides increased stability in income, food
security, transport etc.
 2. Dairying- business of
producing, storing and
distributing milk and its product.
 Includes breeding and raising of
dairy animals like: goat, buffalo,
sheep etc. for production of milk.
 3. Fisheries- Involves catching and selling of
fish, prawns and other aquatic animals.
 It has emerged as important source of
livelihood in the states of Kerala,
Maharashtra, Gujarat and Tamil Nadu.
 Around 60% of work force in exports and 40%
in internal marketing are women.
 It contributes 1.4% to India’s GDP.
 4. Horticulture- Involves cultivation of fruits,
vegetables, flowers etc.
 India is world leader in producing a variety of
fruits like: Mango, Banana etc.
 It generates employment for 19% of India’s
total Labor Force.
 5. Information Technology- involves use of
computers and telecommunications to
retrieve and store and transmit information.
 It plays a positive role in agriculture by
providing latest irrigation techniques, seeds
etc.
 Aim- make every village a knowledge center,
where it provides a sustainable option of
employment and livelihood.
 Conventional agriculture systems harm the
livestock, deplete the soil that’s why organic
farming is needed.
 Organic Farming- It is eco-friendly and
essential for sustainable development.
 It relies on crop rotation, green manure,
compost and biological pest control.
 Produce safe and healthy food.
 1. Reduced exposure to Pesticides and
Chemicals- Pesticides allow disease
resistance to build up in plants, weeds, plant-
eating insects, bacteria. Synthetic chemicals
cause soil erosion.
 2. Generates income through exports
 3. Provides Healthy Food
 4. Source of Employment- more labor
required.
 5. Safety of Environment- pesticide free,
environment friendly.
 1. Less Popular- create awareness for the
adoption of new technology, tell them it is
beneficial for us.
 2. Lack of Infrastructure and marketing facilities
 3. Low Yield- famers don’t get much amount of
crop from it.
 4. Limited choice of crop- off season crop can’t
be irrigated.
 Inspite of limitations, it helps in sustainable
development of agriculture and India has a clear
advantages in producing organic products, for
both domestic and international markets.
 It can’t be get better without adopting several
things :-
 1. Stress on Diversification- make rural sector
diversified into – dairying, poultry, fisheries,
vegetables and fruits.
 2. Rural and Urban Linkage- rural farmers
products should be sent to urban and foreign
countries to get higher returns of their products.
 3. Better Facilities- develop infrastructure, state
agricultural depts, farmer- friendly policies.
 4. More Emphasis on Sustainable Development-
need to develop eco- friendly techniques.