Ch.5 Notes 12 IED

Chapter-5 RURAL DEVELOPMENT
Definition: An action plan for the economic & social growth of the rural areas. It is a
continuous comprehensive socio-economic process, attempting to improve all aspects of rural life.
Significance: Bulk of our population lives in rural areas in abject poverty. Overallgrowth
of the economy would be a distant dream unless it is aligned with the growth & development
of rural areas.
CHALLENGES OF RURAL DEVELOPMENT
LINGERING CHALLENGES
❖ Rural Credit ❖
❖ Rural Marketing ❖
AGRICULTURAL MARKETING
(Lingering Challenge)
➢ Gathering the produce after harvesting.
➢ Processing the produce.
➢ Grading the produce as per its quality.
➢ Packaging as per the preferences of the buyers.
➢ Storing the produce for future sale.
➢ Selling the produce when the price is lucrative.
Thus, Agricultural marketing a process which involves assembling, storage,processing,

transportation, packaging, grading and distribution of different agricultural commodities across
the country.
GOVERNMENT MEASURES TO IMPROVEAGRICULTURAL MARKETING

➢ Regulated Markets: Regulated markets have been established to create orderly and
transparent marketing condition. This is organized in order to protect farmers from
malpractices of sellers and brokers.
pg. 1
➢ Cooperative Marketing: Marketing societies are formed by farmers to sell the output
collectivelyand to take advantages of collective bargaining for obtaining a better price.
Cooperatives have notbeen functioning properly in recent past due to inadequate coverage of
farmer members and processing cooperatives and also inefficient management.
➢ Infrastructural facilities: Govt. has also provided infrastructural facilities like roads,
railways,warehousing, cold storage and processing units.
➢ Standardization and Grading: Grading & Quality control helps farmers to get good
price for qualityproducts produced by them.
➢ Minimum Support Price: To safeguard the interest of the farmers, government fixes the
minimum support price for agricultural products like wheat, rice, maize, cotton, sugarcane,
pulses etc. The government offers to buy any amount of grains from the farmers at a price
higher than the market price in order to help them recover their loss. The Government
in turn supplies these products in public distribution system to BPL & APL card holders.
LIMITATIONS OF AGRICULTURALMARKETING IN INDIA

❑ Lack of storage facilities: for food grain and crops has damaged the products either by rats
or insects or due to rain.
❑ Distress Sale: Most Indian farmers are poor and they have no capacity to wait for better price.
They sell the commodities at whatever the price available immediately. As a result, they go
for distress sale of their output tothe village money lenders or traders for poor price.
❑ Lack of transportation: as a result, farmer cannot reach nearly mandis to sell their produce
at a fair price.
❑ Long chain of middleman: or intermediaries between the cultivator and the consumer will also
reduce the profit of the producer.
❑ There are also other defects like lack of institutional finance, lack of professional guidance
etc. This makes Indian marketing system disorganized.
AGRICULTURAL DIVERSIFICATION
Definition: Re-allocation of some of farm’s productive resources into new activities or
crops reducing market risk.
AGRICULTURAL DIVERSIFICATION HAS TWO ASPECTS
DIVERSIFICATION OF PRODUCTIVE ACTIVITIES

(Emerging Challenge)
❖ Agriculture is already overcrowded & hence, major portion of the increasing labour force needs
to find alternate employment opportunities in other non- farm sectors.
❖ This will provide alternate sustainable livelihood and would raise the level of income.
❖ Some of the non- farm activities are animal husbandry, dairy farming, fishers, horticulture,
agro-processing industries, food processing industries leather industry, tourism etc.
❖ These sectors have the potential but they lack infrastructure and other financial support.
pg. 2
❖ Operation flood is a system, whereby all the farmers can pool their milk produce
according to different grading and the same is processed and marketed to urban centers
through cooperatives.
❖ The period of 1991-2003 is known as Golden Revolution because during this period,
the planned investment in horticulture became highly productive and the sector emerged
as a sustainable livelihood option.
ROLE OF INFORMATION TECHNOLOGY INRURAL DEVELOPMENT

Information Technology has revolutionized many sectors in Indian economy. There is a broad
agreement that IT will play critical role in achieving sustainable development and food security
in the 20th century.
Through proper information and software tools, govt has been able to predict area of food
insecurity and vulnerability to prevent or reduce the livelihood of an emergency.
It also has a posture impact on the agricultural sector as it circulates information regarding
technologies and its application, prices, weather andsoil condition for growing different
crops.
This has increased the scientific knowledge about farming and minimizedassociated risks.
The aim for increasing the role of information technology is to make everyvillage a
knowledge Centre where IT provides a sustainable option of employment and livelihood.
ORGANIC FARMING
(Emerging Challenge)
❖ Organic farming is the process of producing food naturally.
❖ This method avoids the use of synthetic chemical fertilizers and genetically modified
organisms.
❖ It is eco-friendly and is deeply linked with sustainable development.
❖ It maintains, restores & enhances the ecological balance. Animal manures & composts are
the basic organic inputs.
❖ It focuses on maintaining ‘Soil-health’ rather than ‘Plant-health’.
❖ In most of the developed countries, nearly 10% of their food system comes under organic
farming.
❖ To encourage sale of organic food, retail chains & supermarkets are awarded with GREEN
STATUS.
❖ Organic foods command higher price than the conventionally grown foods.
❖ It offers an inexpensive farming technology to small & marginal farmers.
LIMITATIONS OF ORGANIC FARMING

❖ Organic farming needs to be popularized by creating awareness and willingness on the
part of the farmers for adoption of new methods.
❖ There is no proper infrastructure and marketing facilities for these productsalone.
❖ An appropriate agricultural policy should be brought in for organic farming. The fields for
organic farming are less than modern agricultural farming in theinitial years.
❖ Therefore, small and marginal farmers may find it difficult to adapt to large scale
production.
❖ Organic food items are costlier than the conventionally produced food items.
Do the following questions in your register:

1. ‘The challenge is to build cost effective IT based system to improve the living standard of Indian rural
population.’ Justify the statement.
2. Critically examine the role of the Rural Banking Sector in India.
3. Mention some obstacles that hinder the mechanism of agricultural marketing.
4. “Regulation of Agricultural Marketing is pre-requisite for rural development. Illustrate.
5. How sustainable development can be achieved in rural sector? Explain.
6. Bring out the importance of animal husbandry, fisheries and horticulture as a source of diversification.
7. Jan Dhan Yojana helps in rural development." Do you agree with this statement? Comment.
pg. 3

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Chapter-5 RURAL DEVELOPMENT

Thus, Agricultural marketing a process which involves assembling, storage,processing,

GOVERNMENT MEASURES TO IMPROVEAGRICULTURAL MARKETING

LIMITATIONS OF AGRICULTURALMARKETING IN INDIA

AGRICULTURAL DIVERSIFICATION HAS TWO ASPECTS

DIVERSIFICATION OF PRODUCTIVE ACTIVITIES

ROLE OF INFORMATION TECHNOLOGY INRURAL DEVELOPMENT

LIMITATIONS OF ORGANIC FARMING

Do the following questions in your register:

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