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in
 A. Read the passage given and answer the following questions on the basis of the passage
in your own words.

The amendments passed by Parliament to the National Bank for Agriculture and Rural
Development (NABARD) Act, 1981 support the government’s push to boost the rural and
agricultural sector. The amendments recognise the vital role of micro, small and medium
enterprises (MSMEs), as defined under the MSME Development Act of 2006, in rural
entrepreneurship and are intended to make financing easier for them.

The 1981 Act was enacted to establish a development bank to provide and regulate credit
and other facilities in order to promote and develop agriculture, small-scale industries,
cottage and village industries, handicrafts, and allied economic activities in rural areas.

In March 2017, the Finance Ministry listed a slew of factors which necessitated amendments
to the 1981 Act.

In the statement of objects and reasons for the National Bank for Agriculture and Rural
Development (Amendment) Bill of 2017, the government explained that with its expanding
activities, NABARD needed to be provided with additional equity from time to time to enable
it to meet its objectives of promoting rural development and sustainable rural prosperity. It
said certain existing commitments of NABARD relating to the long-term irrigation fund and
enhanced refinance support to cooperative banks required urgent infusion of equity.

The government reasoned that as the current authorised capital of NABARD is fully paid-up,
there was a need to increase it to enable the Central government to infuse additional equity
as and when required.

The Reserve Bank of India (RBI) holds 0.4% of the paid-up capital of NABARD. The remaining
is held by the Central government. This causes conflict in the RBI’s role as banking regulator
and shareholder in NABARD, the statement said.

The government said its focus was on the employment potential in rural areas, medium
enterprises, and handlooms. It proposed to include these enterprises in the ambit of
refinance activities of NABARD.

The NABARD (Amendment) Bill, 2017 provides for empowering the Central government to
increase the authorised capital of NABARD from ₹5,000 crore to ₹30,000 crore in consultation
with the RBI. The amendments primarily seek to transfer the RBI’s balance equity of ₹20,000
crore in NABARD to the Central government.

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 Read the passage given above and answer the following questions on the basis of the
passage in your own words.

Q.1) Briefly describe objectives of amendments to NABARD Act, 1981?

1) The objectives of the amendments to NABARD Act 1981 includes:

a) To empower government to infuse additional equity from time to time as per the
requirement, the immediate cause being the equity fund needed for long term irrigation
fund and refinancing of cooperative banks,

b) To relieve RBI from the position of shareholder in NABARD to avoid the conflict of
interest as both the shareholder and the regulator, thereby transferring RBI’s balance
equity of Rs 20000 crore in NABARD to central government.

c) To propose to include medium enterprises and handloom firms in the ambit of

refinance activities of NABARD.

Q.2) Discuss the requirement of urgent equity infusion according to the Amendment Bill
of 2017?

2) As per the passage there was requirement for urgent equity infusion as per the
Amendment Bill of 2017. This was because of the certain obligations of NABARD related
to/(the requirement of funds allocation) for the long term irrigation fund and enhanced
refinancing for cooperative banks. Government envisaged this as the necessary step to
achieve rural development and sustainable rural prosperity.

Q.3) Describe the purpose of amendments in refinancing ambit of NABARD?

3) The amendments proposed to include medium industries and handloom enterprises in

the ambit of refinance facility of NABARD. Government has taken this step with a purpose
to generate employment in rural areas and to bring development to rural areas.

Q.4) Discuss the primary purpose of NABARD (Amendment) Bill, 2017 w.r.t the
Government and RBI?

4) The primary purpose of the NABARD (amendment) Bill, 2017 w.r.t. government and
RBI is to resolve the conflict-of-interest issue in case of RBI. RBI was holding 0.4% of the
paid-up capital of NABARD. At the same time RBI also acted as the regulator of NABARD.
To end this conflict in RBI’s role, the amendment aimed at transferring RBI’s balance
equity of Rs 20000 crore in NABARD to the central government.

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 Q.5) Briefly describe the Author’s purpose to write this article?

5) The author, through the passage, presents a description of the amendments to the
NABARD Act, 1981. The rationale behind the amendments and the proposed
amendments have been discussed by the author along with the intended outcome of
those steps. The purpose of the passage can be described as the dissemination of
information on the amendments proposed by the government.

B. Read the passage given and answer the following questions on the basis of the passage
in your own words.

India's already large population is expected to become the world's largest in the next 20
years, while its economy will soon overtake Japan's to become the world's third largest. The
resulting increase in the demand for food will need to be met through higher agricultural
productivity or by increasing food imports.

India has a particularly large agricultural sector. While the sector's share of GDP has halved
in the past 30 years to around 15 per cent, it still employs around half of India's workforce
and accounts for much of the volatility in Indian GDP. India has the second largest area of
arable land in the world and is a major producer of a number of agricultural products. Around
the turn of the century, India overtook the United States as the world's largest producer of
milk and is also a major producer of pulses, such as chickpeas and lentils, which are major
sources of protein in vegetarian diets.

Growth in agricultural output over the past three decades has been strong and, importantly,
crop production has been able to broadly keep pace with the demands from a growing
population. The introduction of high-yielding seeds (such as improved strains of wheat) from
the mid-1960s and the increased use of chemical fertilisers epitomised what became known
as the ‘green revolution’. Wheat production increased by nearly 150 per cent between the
mid-1960s and mid-1970s and the country became self-sufficient in grain production by the
end of the 1970s. The increase in agricultural production boosted rural incomes while also
causing food prices to fall. This had the effect of reducing rural poverty (World Bank 2004).

Despite the productivity improvements in the Indian agricultural sector over recent decades,
yields remain low by international standards and growth in yields has only been marginally

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 higher than the world average. In particular, yields for cereals and vegetables remain
substantially lower than the world average. Crop yields have increased much more for rice
and wheat than for other cereals, such as barley, or for pulses. Wheat yields have tripled over
the past 50 years and rice yields have doubled, while yields for pulses improved little over
this period.

A major institutional factor that has limited agricultural productivity in India is regulation of
land holdings. In order to address the highly concentrated ownership structure of land in
India prior to independence, the Government instituted land reforms that placed ceilings on
land holdings. As a result, agriculture in India is dominated by a large number of small-scale,
owner-occupied farms. The most recent estimates suggest that around 100 million
households were engaged in agricultural production in 2002, roughly 70 per cent of all rural
households and only marginally lower than the share of rural households engaged in
agriculture in the early 1960s.

The Government is gradually improving access to insurance through the National Insurance
Scheme (NIS), although in 2009 only 18 million farmers were insured under the scheme. The
scheme covers farmers who produce cereals, millets, pulses, oilseeds, sugarcane, cotton and
potatoes. In certain areas, farmers growing these crops and accessing Seasonal Agricultural
Operations loans from financial institutions are required to purchase this insurance, while
others can opt in voluntarily. Importantly, the scheme covers drought and other weather
events as well as loss of production due to pests and disease. Premium rates are typically
between 1.5 per cent and 3.5 per cent of the value insured, with those farming less than 2
hectares receiving a 50 per cent subsidy.

To help alleviate poverty and to shield Indian consumers from global food price fluctuations,
the Government subsidises food purchases for many consumers. The Government procures
agricultural goods from producers, who must sell a share of their output to the Government
at minimum support prices (MSPs), which are typically below market prices. Procured food is
sold through the Targeted Public Distribution System (TPDS), which consists of about half a
million ‘fair price shops’. In order to purchase food through this system, households apply for
ration cards, which indicate whether they are assessed to be Above Poverty Line (APL) or
Below Poverty Line (BPL).

Water management is crucial to improving conditions in agriculture. India currently has

around 5,000 large dams that are able to store more than 220 teralitres, which ranks seventh
in the world in terms of capacity. While dams in other parts of the world are built for flood
mitigation, power generation and water supply, the primary purpose of India's dams is

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 irrigation. Around 40 per cent of crop areas are now irrigated, and these areas produce
70 per cent of India's crop output. A significant proportion of farms have limited or no access
to irrigation, and therefore still rely on rainfall as their sole source of water.

India's agricultural sector is still very important to the Indian economy, although its share of
the economy has decreased over the past 50 years. India has made significant advances in
agricultural production in recent decades, including the introduction of high-yield seed
varieties, increased use of fertilisers and improved water management systems. Reforms to
land distribution, water management and food distribution systems will further enhance
productivity and help India meet its growing demand for food.

Read the passage given above and answer the following questions on the basis of the
passage in your own words.

Q.1) Discuss the importance of Agriculture sector and its share in Indian Economy.

India is an agricultural country with a large agricultural sector. India being a highly populated
country generates a high demand for food. So agriculture here plays a crucial role as it will
meet the food demands of the people. Life without food is not possible and agriculture is the
key to provide food to the people. India’s growth in agricultural sector in the past 3 decades
has been strong and it has met the growing food demands of the growing population. Further,
green revolution had increased food production by the end of 1970. Agricultural sector
provides a source of income to the rural population. This helps in reducing rural poverty. India
became the largest producer of milk leaving behind USA.

India’s agricultural sector share in GDP has come down to half in past 3 decades,
approximately 15%. Indian yields have remained low as per International Standards, inspite
of all the improvements made in agricultural sector. Although agricultural sector share in
Indian economy has decreased over past 5 decades, but still, it plays a crucial role in Indian
economy. A broader picture shows increase in agricultural productivity, improvements in
methods of agriculture, Government Institution Schemes, improved water management,
land distribution reform, food distribution systems etc. in spite of decreased agriculture
sector in Indian economy.

Q.2) Discuss the obstacles faced by Agriculture sector of India and measures taken by
the Government.

2) India is a highly populated country. Food demand increases with the growing population.
India has improved its agriculture sector over the past 3 decades to meet the food needs of
the growing population. India also became the largest producer of milk leaving behind USA.

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 It also became major producer of pulses. But all this was not sufficient somewhere taking into
consideration India’s population and weather conditions. As a result, Government introduced
high yielding seeds and chemical fertilizers which further increased agriculture productivity
and also boosted rural incomes.

Regulation of land holding was another obstacle faced by the Indian agriculture sector. Land
holding was concentrated in the hands of few people before independence. For this,
Amendments introduced ceilings on land holdings. As a result, there are now around 70%
rural households engaged in agriculture production.

Yet another obstacle faced by Indian agriculture sector was that seeds and crops of farmers
were not insured. For this Government introduced National Insurance Scheme to protect
farmers from drought, weather, loss of production due to pest and diseases. This helps
farmers to focus on farming activity without thinking of situations which are beyond his
control. The insurance scheme provides a security shield to farmers.

Proper management of water for agriculture sector was another challenge. For this purpose
Government constructed large capacity dams. These dams help farmers in irrigation,
prevents flood, supports in water supply and power generation.

So above discussed were the obstacles faced by the Indian agriculture sector and the measure
taken by the Government to cope with it.

Q. 3) Outline the main aspects of the passage in your own words.

Ans 3. It is anticipated that India will become world’s largest population in next 20 years and
its economy will become world’s 3rd largest overtaking Japan’s economy. India became the
major producer of milk by overtaking USA. It is also a major producer of pulses. India has
witnessed agricultural growth in past 3 decades and introduction of Green Revolution, high
yield seeds increased use of chemical fertilizers have further improved the agriculture
production. Improvements in agriculture production have in turn resulted in an increase in
rural incomes. Court introduced land reforms.

It is estimated that now approximately 70% rural households are engaged in agricultural
production. Government introduced National Insurance scheme to protect farmers against
drought, weather and loss of production due to pests and diseases. Government also
purchases agriculture goods from the producers and sell it through Targeted Public
Distribution System consisting of fair price shop. This will not only help in eradicating poverty
but also in saving Indian consumers from fluctuations in global food price. Proper agriculture
requires proper water management and for this Government has constructed around 5000

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 very large dams which will help farmers in irrigation, flood mitigation, power generation and
water supply. India’s agriculture sector plays a very important and inevitable role in spite of
its decreased share in Indian economy. But it is worth mentioning that India has made
significant improvement in agriculture production in past few decades.

C. Read the passage given and answer the following questions on the basis of the passage
in your own words.

Agriculture in India constitutes 14% percent of GDP, 44 percent of employment and is the
backbone of the rural economy but contributes only 16% of Gross Value Addition (GVA).
Hence, government intervention and assistance is highly essential to facilitate
implementation of both policy and structural reforms to address some of the key challenges
in agriculture. Rising incomes and changing consumption patterns are expected to continue
the increased demand in horticulture and proteins which is likely to have a cascading impact
on inflation which is a key focus area for the government. Hence, increasing storage
capacities, improving availability of pulses, reduction in import dependence in areas like
oilseeds and enhancing farmer livelihoods will be some of the key areas that the budget could
target.

In the forthcoming budget it is expected that the government would look at Direct Benefit
Transfer (DBT) for agri-input subsidy using Aadhaar linkages so as to eliminate leakages. This
would also help in putting money directly in the hands of the right beneficiary. The DBT of
input subsidy would also encourage farmers to follow the proper package of practices with
respect to input usage and not go only by subsidy considerations thereby leading to higher
productivity.

The government may consider favorably tweaking the quantum and coverage of the Pradhan
Mantri Kisan Samman Nidhi (PMKISAN) scheme which provides a guaranteed income to small
and marginal farmers. At the same time, the government may consider providing incentives
and increased budgetary provisions for agri-extension services and programs which are
essential if the aim of “doubling farmers’ income" is to be achieved. The government can
facilitate spurring of capital formation by incentivizing agri term-loans via interest subvention
or credit guarantee fund covering a wider range of crops and agri-industries. Extending the

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 ambit of such schemes has the potential to lead to greater gross capital formation in
agriculture across the spectrum and not be limited to only the major crops.

Another step would be to consider broadening the purview of PM Fasal Bima Yojana (PMFBY)
as currently it covers 3 major types of crops, food, oilseeds and horticulture crops, which
constitute only 30% of the total crop loans given by banks1. The PMFBY could bring more
crops under its portfolio which would widen the farmer base with access to this scheme. With
the current government highlighting water as the key focus area in this term, it could start a
provision to audit irrigation and groundwater management, implementing standard
operating processes to rationalize water usage. This could not only lead to efficient water
usage for crops but would also facilitate wider access to irrigation facilities for the whole
farmer community.

Agricultural productivity has a positive correlation with level of farm mechanization. With the
steep rise in labor cost, the inflection point where mechanized farming is cost-effective is
imminent in next 8-10 years. Farm mechanization constitutes a key area wherein policy
reforms in the form of incentives and interest subvention schemes are expected in the
upcoming budget. The government may also increase the ambit of the Rashtriya Krishi Vikas
Yojana (RKVY) to support rural storage infrastructure which will enable small producers to
hold the produce till market prices are remunerative enough to sell. This will help achieve the
2 prong benefits of augmenting farmer income as well as minimizing post-harvest losses and
preventing distress sale. An important aspect of the rural supply chain is storage
infrastructure especially cold storages. Policy measures that can be expected to accelerate
growth in the cold chain sector are innovative rural financing models to provide capital and
viability gap funding as well as use of alternate fuels that are locally available to reduce cost.

Apart from this, extending such policy reforms towards efforts in increasing infrastructural
support in agriculture is another focus area. Infrastructural gaps like lack of scientific storage
solutions, last mile connectivity and lack of market access plague Indian agriculture. This issue
may be addressed in the budget by increased allocation to creating agri-infrastructure as well
as promoting incentives schemes. A similar approach could also be applied to the food
processing sector wherein the mega food park scheme, which currently covers Greenfield
projects, could be extended to bring the existing food processing units under its ambit. This
measure could assist in rapid growth of the sector through the extension of this successful
scheme. At the same time, such schemes and measures need to be supplemented with
budgetary provisions for setting up of new and upscaling existing R&D facilities and skill
development centers so as to implement the best practices & produce trained manpower.

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 With the finance minister emphasizing on “Gaon-Garib-Kisan" (Village-Poor-Farmer) as the
cornerstone of policymaking, the upcoming budget may see increased attention on the
agriculture sector with a two pronged approached to policy reforms and technical
intervention. The former could concentrate on farmer welfare, structural reforms and
doubling farmer income whereas the latter could see more focus on increasing productivity,
efficiency and output across the agriculture business value chain.

Read the passage given above and answer the following questions on the basis of the
passage in your own words.

Q.1) Discuss the key areas of focus w.r.t agriculture in the next budget as discussed in the
passage.

(1). The finance minister has adopted Gaon Garib kisan(village-poor-farmer) as the
policymaking mantra and as such the key areas are doubling farmers’ income and enhancing
farmer livelihoods. Input subsidy through DBT is necessary for productivity. Capital formation
in agriculture is another area which can be incentivized. Crop insurance through PMFBY is set
to be widened. Efficient water usage and irrigation availability is a priority of the government
as well. Farm mechanization is a key area where policy reforms are expected. Storage
infrastructure in the form of cold storage is vital for minimizing post harvest losses and
preventing distress sale. Agri infrastructure and upscaling of mega food parks is yet another
area for the government’s possible intervention.

Q.2) Describe the need for and importance of mechanized farming to enhance the
agriculture sector.

(2). With agricultural productivity having a positive correlation with the level of farm
mechanization and mechanized farming appearing to be cost effective in the next 8-10 yrs,
farm mechanization has emerged as an important area and related incentives and interest
subvention schemes may find a place in the upcoming budget. Mechanization raises the
efficiency of labour and enhances the farm production per worker. It also results in a
significant modification of the social structure in rural areas. It frees the farmers from much
of the labourious, tedious, hardwork on the farms. The pressure on land decreases and the
status of the farmers improves.

Q.3) Briefly describe the importance of the agricultural schemes launched by the
government as discussed in the passage.

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 (3). The agricultural schemes discussed in the scheme are:

PMKISAN: this is a guaranteed income support scheme for small and marginal farmers

PMFBY: this is a crop insurance scheme which currently covers three major kinds of crop:
foodcrops, oilseeds and horticultural crops

RKVY: this scheme aims to make agriculture more remunerative by incentivizing states to
spend more on agriculture through central grants

D. Read the passage given and answer the following questions on the basis of the passage
in your own words.

Some of the misplaced economic policies in the recent past have excluded a majority of rural
society from partaking in India’s journey of development, resulting in a sense of deprivation
and dissatisfaction among a large percentage of people in the Indian villages.

Poverty in rural India is rampant with the average annual earning of a small and marginal
farmer household at ₹79,779 in 2015-16, according to the Committee on Doubling of
Farmers’ Income. The disparity in per capita rural and urban income has remained
persistently high, with an average urban worker earning over eight times an average
agricultural worker, according to NITI Aayog. The widening urban-rural divide is also evident
in the inequalities in consumption, quality of life, and availability of physical and social
infrastructure. To ensure inclusive economic growth, the government needs to urgently focus
on transforming the agrarian economy to pull the maximum number of people out of
subsistence farming and give them a much more remunerative role.

With two-thirds of India’s billion-plus people living in villages, jump-starting the economic
engine of rural India will have a multiplier effect on investment, consumption, government
expenditure and exports. The potential of rural India can be gauged by the fact that
agricultural startups have raised nearly $130 million in about 70 deals in the past five years
to 2018, according to a news report.

Although agriculture contributes to about 17% of India’s gross domestic product (GDP), its
significance to the people of India cannot be overemphasized. In addition to feeding the
country, agriculture has nearly half of our 1.3 billion-plus population depending on it for their

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 livelihood. The bad news is agricultural growth is slowing. Between fiscal 2014 and 2019, agri-
GDP grew at 2.9% per year compared with a 3.7% per annum growth between fiscal 2005
and 2014.

The Narendra Modi-led government has its task cut out. It will need to focus on agri-
technologies that can boost agricultural productivity, create value-added farm products and
tap “farm-to-fork opportunities" to ensure better realization for farmers. It will also need to
create millions of micro-entrepreneurs and thousands of economic clusters in rural India,
besides investing in rural roads, rural electricity, irrigation networks and national cold chain
grids.

To re-energise the rural economy, the Modi government has been trying to bring in some
policy reforms like e-markets, farmer producer organizations (FPOs) and the Model Contract
Farming Act, 2018. As Indian farmers have the smallest landholding on the planet, they lack
individual bargaining capacity in the open market for their small produce. In such a scenario,
the creation of FPOs can give them a competitive edge because they can pool in their
produce, invest in cold storage facilities and better negotiate with large buyers. In fact, these
FPOs can tie up with business schools to build the knowhow for developing a robust
entrepreneurial ecosystem that leads to the creation of a vibrant rural economy. If we can
create villages that can directly sell produce to global markets then we will see the ripple
effects of a micro-entrepreneurial economy flowing through rural India.

While smart government policies, financial inclusion initiatives and investments in

infrastructure can help, greater use of technology can fire the entrepreneurial spirit and spur
innovation in rural India. Technology can also help farmers’ access to high-quality inputs, crop
health and yield data and crucial weather related information. Adoption of advanced
agriculture technology through machines and equipment that use data analytics, Internet of
Things and robotics can help optimize inputs and enhance yields. Moreover, using technology
and data science can help build more efficient supply chains that connect retail grocery stores
with food processors and FPOs.

Even as we move on the policy front, we must also bridge the huge knowledge gap in Indian
agriculture between farmers on one side and crop scientists on the other. Farmers should be
trained on micro-irrigation, micro propagation, latest farming technology, smart use of
fertilisers, better understanding of crop rotation etc.

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 To conclude, to kick-start the rural economy, we must formulate policies that focus on
helping people emerge from an existence of perpetual disadvantage through incentives not
hand-outs. A bridging of the urban-rural divide is imperative for long-term sustainable growth
of the economy.

Read the passage given above and answer the following questions on the basis of the
passage in your own words.

Q.1) Briefly discuss the menace of Urban-Rural divide in India in context of the passage.

(1). Shortsighted economic policies have resulted in the rural economy faring a lot worse than
its urban counterpart. According to NitiAyog, an average urban worker earns over eight times
an average agricultural worker, an astounding disparity in rural vs urban income. This results
in widespread inequities in consumption patterns, quality of life and availability of physical
and social infrastructure. The unrewarding nature of Indian farming results in more and more
migration to cities and living as daily wage and manual labourers. The average annual earning
of a small and marginal farmer is Rs.80,000 which is a fraction of the income of an urban
worker. As small and marginal farmers make up the vast majority of farmers, there is a very
considerable rural-urban divide to be concerned about.

Q.2) Discuss the growth of Agri-economy and its potential in India.

(2). The contribution of agriculture in India’s GDP is only about a sixth, but nearly half of our
population is engaged in agriculture. With two-thirds of our population residing in rural areas
and agriculture being the mainstay of the economic engine in rural India, agri-economy holds
great relevance. However, it is a matter of concern that growth in agriculture has slowed
down from 3.7% per annum in 2005-14 to 2.9% in fiscal 2014-19. Agricultural startups raised
about $130 million in 70 deals in the past 5 years, highlighting the massive potential of the
agri-economy. Rejuvenating the rural economy will lead to enhanced investment,
consumption, government expenditure and exports, leading to uptick of GDP.

Q.3) Discuss the measures taken by the government to revive the rural economy.

(3). The government has been trying to boost the agricultural value chain through the
development of e-markets, FPOs and the Model Contract Farming Act 2018. Farmer Producer
Organisations help farmers with small landholdings to pool in their produce, invest in cold
storage facilities and give them an advantage in bargaining with big buyers. This can greatly
help with the development of micro-entrepreneurship fueling the rural economy. Also,
financial inclusion schemes such as PM Jan Dhanyojna, investment in infrastructure and
technology initiatives can be helpful. The current government has vowed to double farmers’

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 income through improvement of agricultural productivity, value addition of farm products
and tap “farm-to-fork” opportunities. Boosting of micro-entrepreneurship and cold chain
infrastructure is also on their list of priorities.

Q.4) According to the passage, discuss the role Technology can play in rural economy of
India.

(4). Technology can be a huge boon to the agricultural community as a ready source of
information on inputs, crop health and weather. Advanced technologies such as data
analytics, Internet of Things and robotics can greatly boost yields and productivity. Supply
chain efficiency can be enhanced by direct connection of retail grocery stores with food
supply chains and FPOs. Overall, the mass proliferation of technology can be the missing link
in development of innovation and entrepreneurship so needed in transforming the rural
economic landscape.

Q.5) Briefly describe the Author’s purpose to write this article

(5). Through this article the author has attempted to highlight the rural urban divide, to
demonstrate how despite being home to the vast majority of Indian citizens, the rural
landscape and its economy has failed to benefit from government economic policy and how
the gap between rural and urban earnings have widened to a massive gulf. The author puts
forward several ideas to jumpstart the rural economy which will surely have a positive impact
on investment, consumption, growth and exports. The author strongly supports the idea of
weaning farmers away from the culture of handouts and promotes the idea of micro-
entrepreneurship and economic clusters whereby small farmers can form FPOs and be in a
favourable bargaining position and ultimately sell their produce directly to local and global
buyers. Thus the author seems to favour equity among rural and urban economic outcomes
and calls for farmers breaking out of perpetual disadvantage and generational poverty.

E. Read the passage given and answer the following questions on the basis of the passage
in your own words.

With a majority of its population living in villages, rural poverty is a major problem in India.
The disparity between the urban and rural incomes is also on the rise. This leads to migration
to urban areas resulting in urban blight as well. Therefore, addressing the problem of rural

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 poverty assumes urgency. National Agro Foundation (NAF) has addressed this wicked
problem.

Since its inception in 2000, NAF has been involved in a range of interventions—infusion of
technology, soil enrichment, efficient farm and water management, improved cattle
development, functional literacy, rural sanitation and public health, human resource
development, establishment of self-help groups particularly among women, self-
employment opportunities and facilitating institutional credit—to address the problem of
farm productivity in India. The NAF focuses on the poor and marginal farmers, women,
unemployed youth, and depressed communities.

NAF works in about 250 villages and has reached 30,000 rural families. A large part of NAF’s
effort with farmers is to help break their initial emotional barriers to new technologies. This
has provided the platform to launch into other initiatives. The success of these measures has
had a demonstrative impact on the farmers’ willingness to adopt and internalize new
technologies. This may be considered an attitudinal breakthrough.

Another initiative, the Center for rural development (CFRD), a training cum village knowledge
center, has been established with classrooms, computer lab with internet facilities, input and
product handling center, farm machinery workshop, model experimental farm, residential
complex for trainees and an open air theatre to cater to the needs of various sections of rural
community. NAF has also established a Research and Development Center in Chennai
housing a comprehensive soil testing laboratory, food safety and standards laboratory and a
plant tissue culture lab to provide agriculture support services.

Some highlights of the outcomes as a result of these NAF interventions have been agriculture
productivity improvements through resource conserving "Lean Farming”: Paddy (55%),
Groundnut (113%), Vegetables (116%), Sugarcane (40%), and Corn (150%). Through
successful lead farmers, technology transfer has been effective over an area of 10,000 acres
with a "Lead Farmer—Lead Village” concept. Addressing the agriculture value chain—soil
testing, facilitation of inputs and credit, market linkage, and field advisory services—is part
and parcel of agriculture development initiatives. Promotion of climate resilient agriculture,
resource conserving technologies and promotion of use of Information Communication
Technology (ICT) in agriculture are being attempted too.

Watershed and natural resource management initiatives have resulted in increase in water
table ranging from 3.5 meters to 5 meters in the project area of over 6,000 hectares. Cropping
intensity has been doubled (two crop cultivation in a year instead of one crop) and about 20%

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 additional area which had been left fallow has also been brought under cultivation. Soil
erosion, nutrient loss, damage due to flooding during rainy seasons have reduced
significantly.

Over 6,500 high yielding cross bred cattle with a milk yield improvement to the extent of
300% has also been achieved through NAF’s animal husbandry initiatives. To sustain the
benefits derived, the Social Development initiatives of NAF have helped village communities
in establishing community-based institutions like Farmers Clubs (160), Self Help Groups and
Joint Liability Groups (900), Farmers Producer Organizations (6), Watershed committees (25)
etc. for collective decision and action. Over 6,000 people have been made functionally
literate through adult literacy program. Over 1,900 beneficiaries have established micro-
enterprises for which microfinance has been facilitated. 30 children are passing through
every year through its play school for the past six years. The children are provided nutritious
food in order to ensure nutritional security to the underprivileged. Over 1,400 toilets have
been built with people participation under sanitation initiatives.

Training is imparted on "technology-oriented” and "participation-oriented” modes to various

stakeholders of agriculture and rural development like farmers, youth, women, socially
excluded, functionaries of NGOs, water users, producer groups, input suppliers, bankers,
students etc. Over 50,000 people have benefited in the past decade.

Reducing income inequality is not just a matter of charity, it is a challenge for innovation. NAF
is an interesting experiment. The problem is so large, will more corporations step forward to
collaborate with organizations like NAF to tackle this challenge?

Read the passage given above and answer the following questions on the basis of the
passage in your own words.

Q.1) Discuss the target areas and important functions of NAF.

1) National Agro Foundation focuses on income inequality among rural and urban population
and poverty arising due to it. It has been involved in improvisation of various sectors related
to farming, agriculture and technology, self-help groups for women, literacy, cattle related
problems, to improve farm productivity in India. It has focused on women empowerment,
generation of employment, and helping poor and minor communities. Assisting 250 villages
and 30,000 rural families NAF has helped farmers to opt new agriculture technologies. NAF
has established Centre for Rural Development (CFRD), providing training and knowledge to
the rural population with facilities like internet, computers, agriculture related workshops

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 and place to reside for trainees. Research Development Centre in Chennai under NAF has soil
related, food safety and tissue culture related laboratories for better agriculture services.

Q.2) Describe the outcomes of initiatives undertaken by NAF.

2) The results of various steps taken by NAF have shown increase in agriculture productivity,
with the concept of ‘Lean Farming’ and ‘Lead Framer-Lead Village', there is a hike in
productivity of few crops like paddy, groundnut, sugarcane, Corn and vegetables and
effective technology implementation in 10,000 acres of land respectively. Increment in water
table from 3 to 3.5 has been seen by Watershed Management and Natural Resource
Management, in 6000 acres land. Animal husbandry initiatives have shown increase in milk
yield up to 300% and NAF has also helped in setting up of various institutions such as 160
Farm clubs, 900 Self-help groups and Joint Liability Groups, 6 Farmer Producing Organizations
and up to 25 Watershed committees. Thousands of villagers have been benefitted through
literacy, micro-enterprises. Data shows 30 children pass out annually for every 6 years, also
ensuring their nutritional security. Sanitation has also been given importance by construction
of thousands of toilets. Around 50,000 have obtained benefits out of technology and
participation-oriented trainings.

Q.3) Briefly outline the importance of the foundations like NAF in reshaping the rural
economy.

3) NAF has been providing multidimensional platforms related to agriculture, technology

implementation in agriculture, literacy, employment generation among youth, food security
assuring the nutritional needs, training programmes to bring innovation among rural society
and to sharpen the skills of rural people or the socially excluded communities. It not only
focuses on poor but only takes into account women, ensuring women empowerment. Such
foundations not only can be proved beneficial for the economic aspects but also curb the
problems related to environment, leading to sustainability of agriculture and environment.
Such steps can lead to linkage of markets to urban areas also stop the migration of rural
community towards the urban areas, it could curb the problem of income inequality and
poverty among rural dwellers to a great extent. Incorporation of more such organisations is
needed to overcome this huge challenge of poverty and income disparity.

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