Rural Development

Meaning
of Rural
Development

• “It refers to continuous and

comprehensive socio-economic process,
attempting to improve all aspect of rural
life”.
 Process of Rural Development
• Development of Human Resources :
(a) Proper attention to literacy (b) Better health facilities

• Development of Infrastructure:
(a) Improvement in Irrigation, Electricity, credit marketing and transport
(b) Better facilities for agriculture research and information dissemination.

• Land Reforms:
(a) Elimination of exploitation in land relations (b) Actually achieve the goal of ‘land
to the tiller’ (c) Improvement in socio- economic conditions of rural poor by
widening their land base (d) Increasing agricultural productivity

• Alleviation of Poverty:
(a) 22% population is still living below poverty line so serious steps are required to
remove poverty.
• Development of productive resources to achieve opportunity of employment
(specially in other than farming)
Rural Credit:
Due to time gap between crop sowing
and realisation of income farmer are in
a strong need for credit . Actually
farmer borrow money for seeds ,
fertilizers , marriage , death,
religious ceremony etc.

• Sources of Rural Credit:

(a) Non – Institutional Sources
(b) Institutional Sources.
Non Institutional sources
 Non Institutional Sources

Trader
and
Money
Relatives Rich
commissio Landlord
Lenders: Informal n agent
Without loan carrying Exploit
no interest They mortgage
knowledge they crop at higher farmer by
manipulate and rate of Interest charging
peasant normally with condition
account and returned that crop will be higher rate
charge high
after sold to them at of interest
rate of interest low rate of
on loan.
harvesting interest
 Institutional Sources
• Two objectives of
Institutional Sources:
(a) To provide adequate
credit at a cheap rate of
Interest .
(b) To help small farmers in
raising their agricultural
productivity at maximum
their income
• A Major change
occurred in
1969 when India
adopted the
Institutional credit
approach through
various agencies.
 1. Co-operative Credit
• To liberate the
Indian peasantry
from the .clutches
of money lenders.
• To provide them
credit at low rates
of Interest.
 2. Land Development Bank
• To provide loan to
farmer
against the mortgage of
their lands.
• Loans are provided:
• For Improvement of
Land
• Purchasing additional
Land
• Repaying old debt.
 3. Commercial Bank Credit
• Commercial bank
played a
marginal role in
advancing
Rural credit.
• After nationalization in
1969, they expanded
their branches in rural
areas and
started directly
financing the farmers
 4. Regional Rural Banks
• Open in that area
where there are no
banking facility.
• Provide credit specially
to small and marginal
farmer, agricultural
labourers, artisans etc.
 5. Government
• These types of loans
are called TACCAVI
loans.
• Lent during
emergency like
famines, floods etc.
• The rate of interest
of interest is low as
6% P.A.
 6. National Bank for agricultural and Rural
Development (NABARD , JULY 1982)
• Apex bank which
coordinate the functioning
of different financial
institution, working for
expansion of rural credit.
• Objectives:
• To promote health and
strength of credit
institution.
• To provide financial
assistance to non- farm
sector.
 7. SELF HELP GROUP
• For those poor who have no
sustainable access to the formal
banking system.
• Targeted groups are small and
marginal farmer.
• Encourage saving with minimum
contribution of each member.
• Out of reserve needy member can get
loan at low rate of interest and can
repay in installments.
• 43 lakh SHGs has reportedly been
credit linked march 2012 yet.
• Borrow money mainly for
consumption purpose not for
productive purpose.
 Problem faced in Rural Banking
Insufficiency

Less coverage of institutional sources

Inadequate Amount of sanction

Less attention to poor farmer

Growing Overdue
Measures to Remove the
problem of Rural Banking
• Banks need to change their approach from just
being lenders to building up relationship banking
with borrower.
• Farmers should also be encouraged to inculcate the
habit of thrift ( Saving) and efficient utilisation of
financial resources.
Tamil Nadu Women in Agriculture (TANWA)
• Induces woman actively
participation and increase
family income.
• Form Farm women’s group,
and function like SHGs.
• Above group are creating
savings in their group by
functioning like mini banks.
• With the saving, they
promote household
activities like mushroom
cultivation, soup
manufacturing and doll
making etc.
Agricultural
Marketing
• A process that involves assembling
storage, processing, transportation,
packaging, grading and distribution of
different agricultural commodities
across the country.
 Problem faced by Farmers

Manipulation by big Trader: Faulty weighing and manipulation of

accounts

• Lack of market Information: Farmer were sold their crop at

low price due to lack of required information

Lack of storage facility: Due to lack of storage facility farmer had to

sold their crop at lower price

• Lack of Transportation: Due to lack of transportation facilities

farmer were unable to sold their crop in MANDIS. So they had to
sold it in their village market at lower price.
Measures to improve Agricultural
marketing
Emerging
Alternate
marketing
channels
1. Origin of Farmers Market: To sell farmers crop directly to
market and to get a fair price the concept of farmer market was
started.
Examples:
(a) Apni Mandi in Punjab, Haryana and Rajasthan
(b) Hadaspur Mandi in Pune
(c) Rythu Bazars in Andhra Pradesh
(d) Uzhavar Sandies ( farmers market in Tamil Nadu)
Alliance with
National and
Multinational
Companies
Diversification
of
Agriculture
• Definition: Diversification is a growth strategy that capitalizes on
market opportunities by allocating investment risk over different
asset classes.
• Need for diversification arises because:
1. There is greater risk in depending exclusively on farming for
livelihood; and
2. To provide production sustainable livelihood option to rural people.
 Benefits and Types of Diversification
• BENEFITS: as most of the
agricultural activities happen in
Kharif season . In Rabi season
it becomes difficult to find
gainful employment. So need
for diversification emerge:
• To provide supplementary
gainful employment;
• To enable them to earn higher
levels of income; and
• To enable rural people to
overcome poverty and other
troubles.
• TYPES:
• Diversification of
Crop Production ( A
shift from single
cropping system to
multiple cropping
system)
• Diversification of
Productive Activities
(shift of workforce
from agriculture to
other allied activities
and non-agriculture
sector).
 Non farm Acitivities
Animal
Husbandry

Horticulture Fisheries

Information
Dairying
Technology
Animal
Husbandry
• Definition: “It is that branch of agriculture which is concerned with
breeding, rearing and caring for firms animals. “
• It include cattle, goats and fowls (duck, goose etc.)
• India has rank one in livestock farming.
• It provide food security, transport , fuel and nutrition for
the family.
• Provide employment to 70 million small and marginal
farmer
• Poultry accounts for the largest share of 58% followed by
others ( camels, asses, horses, ponies and mules)
Dairying
Definition:
Dairying is that branch of
agriculture which involves
breeding, raising and
utilization of dairy animals for
the production of milk and
the various dairy products
processed from it.
Features:
• Due to successful
implementation of
‘operation flood’ India rank
1 st in the world in the milk
production.
• Production of milk increases
from 17 million tonnes in
1950 – 51 to 1.02.6 million
tonnes in 2006 – 07 and
increased to 165.4 million
tonnes in 2016 - 17
Operation
Flood

• Operation Flood or White Revolution:

• It was started by National Dairy Development Board (NDDB) in
1970 under the guidance of Dr. Verghese Kurien.
Objectives:
• Under the Operation Flood system, all the farmers pool their
milk produce according to different grades and the same is
processed and marketed to urban centers through cooperatives.
The farmers are assured of a fair price and income.
• Gujarat state is held as a success story in the efficient implementation
of milk cooperatives, which has been followed by many states.
Fisheries

• Definition: It refer to the occupation devoted to the catching,

processing or selling of fish and other aquatic animals.
Some important terms:
• Fishing community regards water body as ‘mother’
• Volume of Fish Production: (Inland source 64% and Marine
36%)
• Share in GDP: 0.8% of GDP
• Major contributors states: Kerala, Tamil Nadu, West Bengal,
Maharashtra Andhra Pradesh and Gujarat etc.
• Women Participation: 60% of workforce in Export Marketing
and 40% in Internal Marketing.
Problem
faced
in
fishing
Widespread Underemployment

Low per capital earning

Absence of mobility of labour to other sector

High illteracy rate and indebtness

 Measure to remove problem
• Problems like over fishing and
pollution need to be controlled.
• Welfare programme need to be
reoriented in a manner which can
provide long term gains and
sustenance of livelihoods.
Horticulture

•”It refers to the science or art of

cultivating fruits, vegetables, tuber
crops, flowers, medicinal and
aromatic plants, spices and
plantation crops”.
 Horticulture (Important Point)
• Contribution: 33% of agriculture output and 6% of
GDP
• Share in world Production: With production of
74,877 million tonnes of fruits and 1,46,554 million
tonnes of vegetables in 2010-11. India is the second
largest producer of fruit and vegetable in the
world.
• Improvement in Farmer’s condition.
• It also provide great scope for women
employment
Information Technology: It refers to that branch of
engineering that deals with the use of computers and telecommunications
to retrieve and store and transmit information.
Important points:
1. Government has been able to predict areas of food insecurity and
vulnerability.
2. It provide information regarding price, weather and soil conditions for
growing different crops etc.
3. Acts as a tool for increasing the potential and knowledge in the society and
also help in increasing employment.
Saansad Adarsh Gram Yojana (SAGY):
1. Started in 2014. 2. MPs need to identify and develop one village
from their constituencies. 3. Every MPs can develop one village as a
model village by 2015 and two village by 2019 covering over 2,500
villages in India. Village can have population of 3,000-5,000 in the plains
and in hills 1,000 -3,000. 4. MPs are expected to facilitate a village
development plan, motivate villagers to take up activities and built
infrastructure in the areas of health, nutrition and education .
Organic
Farming

• Meaning: “It is the form of agriculture

that relies on techniques such as crop
rotation , green manure, compost
and biological pest control”.
 Sustainable Development: "Sustainable
development is development that meets the needs of
the present, without compromising the ability of
future generations to meet their own needs."
Benefits and Challenges of Organic Farming
• Benefits: • Challenges:
• Economical farming • Less Popular
• Generate income • Lack of Infrastructure and
marketing facilities
through Exports
• Low yield
• Provide Healthy food
• Shorter food life
• Source of Employment • Limited choice of crop
• Safety of Environment
 Evaluation of Rural Development
1. Stress on Diversification: Need to stress on
diversification of production activity .
2. Rural and Urban Linkage: Need to link rural sector
with urban sector like happen in Gujarat.
3. Better facilities:
a) Infrastructure facilities like credit marketing
b) State agricultural department
c) Farmer friendly agricultural policies
d) Constant appraisal and dialogue between farmers
groups
4. More pressure on sustainable development: Need to
increase eco-friendly technique.
THANK
YOU