Chapter 5 Flashcards
Bring out the key issues in rural development.
Principal lingering challenges -
1- Challenge of rural credit
2- Challenge of rural marketing
Emerging challenges -
1- Need for diversification
2- Need for organic farming
Discuss the importance of credit in rural development.
1- Most rural people are poor with small and marginal holdings
2- Long gestation lag b/w sowing and harvesting
3- Funds for general and specific needs
4- Uncertain monsoon
Explain the role of micro credit in meeting credit requirements of the poor
• Small loans meant for poor
• No security and moderate interest rate
• Minimum legal formalities
Explain the steps taken by the govt. in developing rural markets (agricultural marketing)
• Regulated markets
• Cooperative marketing
• Provision of warehousing facilities
• Subsidised transport
• Dissemination of market info
• MSP Policy
Evaluate the role of rural banking system
Advantages
• Nationalisation of commercial banks
• Establishment of NABARD
• Institutional credit
Deficiencies
• Collateral requirement
• Laxity in loan recovery
• Thrift culture ❎
Necessity of agricultural diversification?
• Stabilisation of income
• Lower risk of price changes
What do you mean by agricultural marketing?
It’s a process that involves-
1- Gathering the produce after harvest
2- Processing
3- Grading acc. to quality
4- Packaging
5- Storing
6- Selling, when price is lucrative
Hindrances of agricultural marketing
1) Lack of transportation
2) Distress sale by farmers
3) lack of credit facilities
4) lack of storage facilities
5) presence of middlemen
6) lack of standard weights and measures
7) inadequate market information
Alternative channels for agricultural marketing
- Direct sale to consumers
- Direct sale contracts by companies
Distinguish between Green Revolution and Golden Revolution
Green Revolution - An epochal rise in agricultural products and productivity
Golden Revolution - An epochal rise in production of horticulture crops
Do you think various measures taken by the govt. to improve agricultural marketing are sufficient?
No, still a long way to go -
• Distress sale is still done by farmers
• 90% of agricultural marketing is still handled by the private traders
Explain the role of non-farm employment in promoting rural diversification.
Rural diversification is necessary for the following reasons -
• Crop farming is over-burdened and over-crowded
• Disguised employment in agriculture
Bring out the importance of animal husbandry, fisheries and horticulture as a source of diversification.
Animal husbandry -
• Also called livestock
• Income stability ⬆️
• Women employment ⬆️
• Employment generation
Fisheries -
• Coastal areas employment ⬆️
• 0.9% of total GDP
Horticulture -
• Farming families income ⬆️
• 1/3 of agricultural output and 6% of India’s GDP
• INDIA - 2nd largest producer
• 20% of total rural employment
IT plays a very significant role in achieving sustainable development and food security - comment.
• Important information regarding soil and climate change
• Employment generation in rural areas
What is organic farming and how does it promote sustainable development?
Organic farming is a system of farming that relies upon the use of organic inputs for cultivation and discards the use of chemical inputs.
It focuses on ‘soil health’ rather than ‘crop health’
Identify the benefits and limitations of organic farming
Benefits -
- Discards the use of non-renewable resources
- Environment-friendly
3- Soil fertility ⬆️
4- Healthier and tastier food
5- Inexpensive
6- Rising global demand
Limitations -
- Labour intensive
- Cattle manure needed
- Less productive
- Blemishes and a shorter shelf-life
Enlist some problems faced by farmers during the initial years of organic farming
- Awareness and willingness to adapt new technology acts as a hindrance
- Inadequate infrastructure and problem of marketing
- Yields are less than modern agricultural farming
- Blemishes and shorter shelf life
- Limited choice in production of off-season crops
Jan-Dhan-Yojana helps in rural development, do you agree?
It endeavours to provide a host of financial services like -
- Savings bank account
- Need based credit
- Remittances facility
- Insurance and pension
Thus, PMJDY is sure to act as a boon for rural development of our nation
