In India, majority of the poor people live in rural areas, where they do not have access to the basic necessities of life. Around 30% of our total population still lives below the poverty line.
Agriculture, with maximum share of rural economy, has grown at a meager rate of 2.7% in the last fifty years
The share of agriculture sector to GDP was on a decline and there has been increase in the share of industrial and service sector. However, the population dependent agricultural sector did not show any significant change.
Moreover, after the economic reforms of 1991, the growth rate of agriculture sector decelerated to 3%, which was lower than the earlier years

MEANING OF RURAL DEVELOPMENT

Rural Development refers to continuous and comprehensive socio-economic process, attempting to improve all aspects of rural life.

• In India, agriculture is the major source of livelihood in the rural sector, with more than two-third of India’s population depending on it. So, development in agriculture will contribute to the betterment of rural areas and rural people.

• However, the term rural development includes not only agricultural development, but it involves all those aspects, which improves quality of life of people. It aims at improving the economic and social conditions of people living in villages.

• Rural people account for about 3/4th of total population. However, they have always lagged much behind the overall progress of the economy.

• In order to overcome this undesirable trend, special programmes for rural development began to be designed since the seventies, in addition to provisions of Five-Year Plans of the country.

PROCESS OF RURAL DEVELOPMENT

Rural development aims at comprehensive change and improvement of rural life in all the aspect sum of the areas which a challenging and need fresh initiatives for development of India includes.

1. Development of Human Resources:

The quality of the human resource needs to be improved through following measures

• Proper attention to literacy (specifically on female literacy), education and skill development; and

• Better Health facilities for the physical growth

2 Development of Infrastructure:

It involves:

• Improvement in electricity, irrigation, credit, marketing and transport facilities (including construction of village roads and feeder roads to nearby highways);

• Better facilities for agriculture research and extension and information dissemination.

3. Land Reforms:

It includes the following objectives:

• Elimination of exploitation in land relations;

• Actualisation of the goal of land to the tiller’;

• Improvement of socio-economic conditions of rural poor by widening their land base;

• Increasing agricultural productivity and production.

4. Alleviation of Poverty:

As stated earlier, around 30% of total population is still below the poverty line. So, there is a serious need for taking serious steps for alleviation of poverty and bringing significant improvement in living conditions of weaker sections.

5 Development of the productive resources of each locality to enhance opportunities of employment (particularly other than farming)

Rural

In agriculture farmers are in the strong need for credit due to a long time gap between crop sowing and realisation of income

Sources of rural credit

There are two types of rural credit

• Non Institutional sources

• Institutional sources

• Non Institutional sources

Non institutional sources of credit have been the traditional source of agricultural credit in India the major non institutional sources are

1. Moneylenders:

From the very beginning, moneylenders have been advancing a major share of farm credit. The peasants are exploited through exorbitant (very high) rates of interest. Quite frequently, their accounts are manipulated without their knowledge

2. Relatives:

Cultivators borrow funds from their own relatives in times of crisis. These loans are a kind of informal loans and carry no interest and are normally returned after harvest.

3. Traders and commission agents:

They provide credit to the peasants on the mortgage of crops at high rates of interest, on a condition, that the crops will be sold to them at low prices.

4. Rich Landlords:

Small as well as marginal farmers and tenants, take loans from landlords, for meeting their financial requirements. Landlords also charge high rates of interest on such loans and exploit the peasants, particularly small farmers and tenants.

Institutional sources

The various non-institutional sources used to exploit small and marginal farmers by lending to them on high interest rates and by manipulating the accounts to keep them in debt-trap.

1. Co-operative credit:

The primary objective of the co-operative is to liberate the India peasantry from the clutches of moneylenders and to provide them credit at low maximizing their income.

2. Land development banks:

They provide credit to the farmers against the mortgage of their lands. Loans are provided for permanent improvement of land, purchasing agriculture implements and for repaying old debts.

3. Commercial bank credit

Initially, commercial banks played a marginal role in advancing rural credit . however , after nationalization role in 1969, they expanded their branches in rural areas and started directly financing the framers.

4. Regional rural banks:

They are opened up in those areas where there are no banking facilities . Their main objective is to provide credit and their facilities , especially to small and marginal farmers , agricultural labourers , artisans and small entrepreneurs in rural areas.

5. National bank of agriculture and rural development (NABARD:

It is the apex bank which coordinates the functioning of different financial institutions, working for expansion of rural credit.

• Its objective is to promote health and strength of credit institution (namely , cooperatives , commercial banks and regional rural banks)

• Besides providing finance to credit institutions, NABARD also provides financial assistance to the non-farm sector, to promote integrated rural development and prosperity of backward rural areas.

Recently, self-help groups (SHGs) have proportion of poor rural households could not avail credit facilities because because of their inability to provide some kind of collateral.

Self-help group (SHG) bank linkages programme for micro finance: SHG has emerged as the major micro finance programme in the country in recent years.

• Their focus is largely on those rural poor, who have no sustainable access to the formal banking system.

• So, their target groups comprise of small and marginal farmers , agriculture and non-agriculture laborers , artisans, etc..

• SHGs promote thrift in small proportions by a minimum contribution from each member .

• From the pooled money, credit is given to the needy members at reasonable interest rates , which is to be repaid in small proportion installments.

• By march 2012 , more than forty three lakh SHGs had reportable been credit linked.

• SHGs have also helped in the empowerment of women. However , the borrowings are mainly confined to consumption purpose and negligible proportion is borrowed for agricultural purposes .

CRITICAL APPRAISAL OF RURAL BANKING

Rapid expansion of the banking system had a positive effect on rural farm and non-farm output , income and employment . after the green revolution , credit facilities helped farmers to avail variety of loans for meeting their production needs.

1. Insufficiency :

The volume of rural credit in the country is still insufficient in comparison to its demand.

2. Inadequate coverage of institutional sources:

The institutional credit arrangement continues to be inadequate as they have failed to cover the entire rural farmers of the country.

3. Inadequate amount of sanction:

The amount of loan sanctioned to the farmers is also inadequate . as a result, farmers often divert such loans for unproductive purpose , which dilute the very purpose of such loan.

4. Less attention to poor or marginal farmers :

Lesser attention has been given on the credit requirement of needy (small and marginal) farmers. On the other hand, well-to-do farmers are getting more attention due to better credit worthiness.

5. Growing overdues:

The problem of overdues in agricultural credit continues to be an ccarea of concern.

• The basic reason for growing overdues is the poor repaying capacity of farmers as a result, credit agencies are becoming cautious of granting loan to farmers.

• Agriculture loan default rates have been chronically high. Moreover, 50% of the defaulters were categorized as ‘wilfull defaulters’, which is a threat to the smooth functioning of banking system and needs to be controlled.
Thus, the expansion and promotion of the rural banking sector has taken a backseat after reforms. Expect the commercial banks , other formal institutions failed to develop a culture of deposit mobilization , lending to needy borrowers and effective loan recovery.

To improve the situation

(I) Banks need to change their approach from just lenders to building up relationship banking with the borrowers; and

(II) Farmers should also be encouraged to inculcate the habit of thrift (saving) and efficient untilisation of financial resources.
For “features of an effective rural credit system ‘’, refer power booster section.

AGRICULTURAL MARKET SYSTEM

Rural people not only face problems with regard to finance, but also encounter difficulties in marketing their goods. Thus, issue of ‘ agriculture marketing ‘ needs urgent attention in the scheme of securing rapid rural development .

MEANING OF AGRICULTURE MARKETING

Agricultural marketing is a process that involves assemble , storage , processing , transportation , packaging , grading and distribution of different agriculture commodities across the country.
Problems faced by farmers

• Manipulations by big traders :

Prior to independence , farmers suffered from faulty weighing and manipulation of accounts while selling their produce to traders.

• Lack of market information :

Farmers often forced to sell at low prices due to lack of required information on prices prevailing in markets .

• Lack of storage facilities :

They also did not have proper storage facilities to keep back their produce in farms are wasted due to lack of storage.

Measures to improve agricultural marketing

After independence , the government of India adopted the following measures to improve the system of agriculture marketing :

1. Regulated markets:

The first measure was regulation of markets ,to create orderly and transparent marketing conditions. Regulated markets have been organized with a view to protect the farmers from the malpractices of sellers and brokers. With a view to protect the farmers from the malpractice of sellers and brokers this policy benefited farmers as well as consumers.

2. Infrastructural facilities :

The government aims to provide physical infrastructure facilities like roads , railways , warehouses , godowns , cold storage and processing units. The current infrastructure facilities are quite inadequate to meet the growing demand and need to be improved .

3. Cooperative marketing :

The aim cooperative marketing is to realize fair price for farmers products . under this , marketing societies are formed by farmers to sell the output collectively and to take advantage of collective bargaining , in order to obtain better price.

However, cooperatives have received a setback during the recent past because of

# inadequate coverage of farmer members;

# lack of appropriate link between marketing and processing cooperatives;

# inefficient financial management.

4. Different policy instruments;

In order to protect the farmers, the government has initiated the following policies;

• Minimum supporter price (MSP) : to safeguard the interest of farmers government fixes the minimum support prices of 24 agricultural products like wheat, rice ,maize , cotton, sugarcane pulses , etc… such a price may be regarded as an offer price , at which government is willing to buy any amount of grains from the farmers.

• Maintenance of buffer stocks: the food corporation of India (FCI) purchases wheat and rice at the procurement prices, to maintain buffer stock . buffer stock is created in the years of surplus production and is used during shortages. it helps to ensure regularity in supply and stability in prices.

• Public distribution system (PDS) : the public distribution system in our country operates though a network of ratio shops and fair price shops. Fair price shops offer essential commodities like wheat , rice , kerosene , etc.. at a price below the market price , to the weaker of the society.

Emerging Alternate Marketing Channels

1. Origin of Farmers Market:

Farmers can increase their income, if they directly sell their produce to consumers. As a result, the concept of “Farmers Market” was started, to give boost to the small farmers by providing them provide direct access to the consumers and eliminating the middlemen.
Some examples of these channels are:

• ApniMandi in Punjab, Haryana and Rajasthan;

• Hadapsar Mandi in Pune;

• Rythu Bazars in Andhra Pradesh; and

• UzhavarSandies (farmers market in Tamil Nadu).

Alliance with National and Multinational Companies:

Several national and multinational fast food chains are increasingly entering into contracts/alliances with farmers. • They encourage the farmers to cultivate farm products (vegetables, fruits, etc.) of the desired quality

• They provide them with not only seeds and other inputs, but also assure procurement of the produce at pre-decided prices.

It is argued that such arrangements will help in reducing the price risk of farmers and expand the market for farm products.

DIVERSIFICATION OF AGRICULTURAL ACTIVITIES

The need for diversification arises because:

(i) There is greater risk in depending exclusively on farming for livelihood; and

(ii) To provide productive sustainable livelihood options to rural people. Benefits of Diversification

Benefits of Diversification

. 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 of Diversification

Diversification includes two aspects:

(i) Diversification of Crop Production (Change in Cropping Pattern);

(ii) Diversification of Productive Activities (shift of workforce from agriculture to other allied activities and non agriculture sector).

Diversification of Crop Production

It involves a shift from single-cropping system to multi-cropping system.

• Diversification involves a shift in cropping pattern from food grains to cash crops. Basically the main aim is to promote shift from subsistence farming to commercial farming.

• In India, agriculture is still dominated by subsistence farming and farmers give prime importance to the cereals in the cropping system

• Multi-cropping system reduces the dependence of farmers on one or two crops as are engaged in growing a wide variety of crops.

Diversification of Productive Activities

As agriculture is already overcrowded, a major proportion of the increasing labour force needs to find alternative employment opportunities in other non-farm sector.

• It would Provide alternative avenues of sustainable livelihood and would raise the level of income.

• Non-farm Activities has several segments, Some segments of non-farm activities posses dynamic linkage that permit healthy growth, while others are in subsistence, low productivity propositions.

• The dynamic sub-sectors include agro-processing industries, food processing industries,leather industry, tourism, etc.

• Those sectors which have the potential but seriously lack infrastructure and othersupport,include traditional household-based industries, like pottery, crafts, handlooms etc.

Animal Husbandry

Animal Husbandry (or Livestock farming) is that branch of agriculture, which is concerned with the breeding, rearing and caring for farm animals.

• Under livestock farming, cattles, goats and fowls (duck, goose, etc.) are the widely held species. India owns one of the largest livestock population in the world.

• Livestock production provides increased stability in income,food security, transport, fuel and nutrition for the family,without disrupting other food producing activities.

• Livestock sector provides alternative livelihood options to over 70 million small and marginal farmers, including landless laborers

• A significant number of women also find employment inthe livestock sector.

• In India, poultry accounts for the largest share of 58%,followed by others (camels, asses, horses, ponies and mules).

Dairying

Dairying is that branch of agriculture which involves breeding, raising and utilisation of dairy animals for the production of milk and the various dairy products processed from it.

Dairying is the business of producing, storing and distributing milk and its products.

• The performance of the Indian dairy sector over the last three decades has been quite impressive.

• Due to the successful implementation of ‘Operation Flood’, India ranks first in the world in milk production. India’s milk production increased from 17 million tonnes in 1950-51 to 102.6 million tonnes in 2006-07 and increased to 165.4 million tonnes in 2016-17.

Operation Flood (or White Revolution) was started by National Dairy Development Board (NDDB) in 1970 under the expert guidance of then chairman, Dr. VergheseKurien. The objective of this programme was to create a nationwide milk grid.

• Under the Operation Flood system, all the farmers pool their milk produce according to different grades and same is processed and marketed to urban centres 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 Co-operatives, which has been followed by many states.

• Meat, eggs, wool and other by-products are also emerging as important productive sectors for diversification.

Fisheries

• Fishing community regards water body as ‘mother’:

The water bodies (sea, oceans, rivers, lakes, natural aquatic ponds, streams) are considered as ‘mother’

• Volume of Fish Production:

Presently, fish production from inland sources contributes about 64% to the total fish production and the balance 36% comes from the marine sector

• Share of Fishing in GDP:

The total fish production accounts for 0.8% of the total GDP.

• In India, West Bengal, Andhra Pradesh, Kerala, Gujarat, Maharashtra and Tamil Nadu are major fish producing states.

• Women Participation in Fishing:

Even though women are not involved in active fishing, still, 60% of the workforce in export marketing and 40% in internal marketing are women.

• Problems faced in Fishing:

A large share of fishworker families are poor. Some of the major problems faced by these communities include:

1. Widespread Underemployment;

2. Low per capital earnings;

3. Absence of mobility of labour to other sectors;

4. High Illiteracy rate and indebtedness.

Horticulture

Horticulture refers to the science or art of cultivating fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, spices and plantation crops. These crops play a vital role in providing food and nutrition, besides addressing employment concerns.

• India has adopted horticulture as it is blessed with a varying climate and soil conditions.

• It is an important sector for potential diversification and value addition in agriculture.

Important Points About Horticulture

1. Contribution:

Horticulture sector contributes nearly one-third of the value of agriculture output and 6% of GDP of India

2. Share in World’s Production:

India has emerged as a world leader in producing a variety of fruits, like mangoes, bananas, coconuts, cashew nuts and a number of spices. With production of 74.877 million tonnes of fruits and 146.554 million tonnes of vegetables in 2010-11, India is the second largest p-oducer of both fruits and vegetables in the world.

3. improvement in Economic Condition:

Horticulture has improved economic condition of many farmers and has become a means of improving livelihood for many unprivileged classes too

4. Great Scope for Women Employment:

Flower harvesting, nursery maintenance, hybrid seed production and tissue culture, propagation of fruits and flowers and food are highly remunerative employment options for women in rural areas.

Information Technology

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.

Information Technology 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. Information Technology has revolutionized many sectors in the Indian economy. There broad agreement that it will play a critical role in achieving sustainable development and to security in the 21st century. Important points about Information

Technology

• Through appropriate information and software tools, government has been predict areas of food insecurity and vulnerability, to prevent or reduce the likelihood of an emergency

• It also have a positive impact on agriculture as it circulate info about modern technology and its application price weather and soil condition.

• It act as a tool for realizing the creative potential and knowledge embedded in society.

SUSTAINABLE DEVELOPMENT AND ORGANIC FARMING

Conventional agriculture relies heavily on chemical fertilisers and toxic pesticides etc., which enter the food supply, penetrate the water sources, harm the livestock, depletethe soil and devastate natural eco-systerlit

Meaning of Organic Farming

Organic farming is the form of agriculture that relies on techniques such as crop rotation, green manure, compost and biological pest control. This method avoids the use of synthetic chemical fertilizers and genetically modified organisms.

• Organic farming is the process of producing safe and healthy food, without leaving any adverse impact on the environment

• In short, organic agriculture is a whole system of farming that restores, maintains andenhances the ecological balance.

• There is an increasing demand for organically grown food, to enhance food safety throughout the world.

Benefits of Organic Farming

Organic Farming is beneficial because of following reasons:

1. Economical Farming:

Organic Farming offers a means to substitute costlier agricultural inputs (such as HYV seeds, chemical fertilisers, pesticides, etc.) with locally produced cheaper organic inputs.

2. Generate income through exports It generates income through international exports as demand for organically grown crops is on a rise.

3. Provides Healthy Food:

It provides healthy food as organically grown food has more nutritional value than food grown through chemical farming.

4. Source of Employment

Organic farming generates more employment opportunities as it requires more labour input than conventional farming

5. Safety of environment:

The produce of organic farming is pesticide-free and is produced in an environmentally sustainable way.

Challenges before Organic Farming

1. Less Popular:

Organic farming needs to be popularized by creating awareness and willingness on the part of farmers, for adoption of new technology. There is a serious need for an appropriate agriculture policy to promote organic farming.

2. Lack of infrastructure and marketing facilities:

Organic farming faces problems of inadequate infrastructure and marketing facilities.

3. Low Yield:

Organic farming has a lesser yield in the initial years as compared to modern agricultural farming. As a result, small and marginal farmers find difficult to adapt to large-scale production.

4. Shorter food life:

Organic produce has a shorter shelf life as compared to sprayed produce.

5. Limited choice of crops:

The choice in production of off-season crops is quite limited in organic farming.
In Spite of all these limitations, organic farming helps in sustainable development of agriculture and
India has a clear advantage in producing organic products, for both domestic and international markets.

EVALUATION OF RURAL DEVELOPMENT

1. Stress on Diversification:

There is a need to make rural areas more vibrant through diversification into dairying, poultry, fisheries, vegetables and fruits.

2. Rural and Urban Linkage:

Efforts should be made to link up the rural production centres With the urban and foreign (export) markets to realise higher returns on the investment for the products.

3. Better facilities:

Proper efforts should be made to develop:

• Infrastructure elements like credit and marketing;

• State agriculture departments;

• Farmer-friendly agricultural policies;

• Constant appraisal and dialogue between farmers groups. The aim is to achieve full potential of the rural sector.

4. More emphasis on Sustainable Development:

There is need to invent or procure alternate sets of eco-friendly technologies that lead to sustainable development in different circumstances.