6

RURAL DEVELOPMENT

LEARNING OBJECTIVES
6.1 INTRODUCTION
6.2 MEANING OF RURAL DEVELOPMENT
6.3 PROCESS OF RURAL DEVELOPMENT
6.4 RURAL CREDIT
6.5 SOURCES OF RURAL CREDIT
6.6 CRITICAL APPRAISAL OF RURAL BANKING
6.7 AGRICULTURAL MARKET SYSTEM
6.8 DIVERSIFICATION OF AGRICULTURAL ACTIVITIES
6.9 NON-FARM AREAS OF EMPLOYMENT
6.10 SUSTAINABLE DEVELOPMENT AND ORGANIC FARMING
6.11 EVALUATION OF RURAL DEVELOPMENT

6.1 INTRODUCTION
In India, majority of the poor people live in rural areas, where they do not have access to the
basic necessities of life. Around 22% of our total population still lives below the poverty line.
Agriculture, with maximum share of rural economy, has grown at a meagre rate of 2.7%
in the last fifty years. During 2007-12, agriculture output has grown at 3.2%.
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 on agricultural

sector did not show any significantchange

sector
Moreover, after the economic reforms of 1991, the growth rate of agriculture
decelerated to 3% p.a. during 1991-2012, which was lower than the earlier years.

So, real prog8 rural people are developed, so that overall

of India is possible only when rural areas and
ogress
gTOwth of India could be achieved.

6.1
6.2
Economics for Ciaes
6.2 MEANING OF RURAL DEVELOPMENT
Rural
Development refers to continuous and comprehensive socio-economic process,, attempta
to improve all
aspects of rural life.
I n India, agriculture is the rural sector, with
major source of livelihood in the ith mone
mores.t
two-third of India's population in
depending on it. So, development agriculture
contribute to the betterment of rural areas and rural
peopie
However, the term rural development includes not only agricultural development
at improv
b elopment, bu,
involves all those aspects, which improves quality of life of people. It aims at impro
the economic and social conditions of people living in villages.
Rural people account for about 34thof total population. However, they have always lag
much behind the overall progress of the economy.
ag
In order to overcome this undesirable trend, special programmes for rural developme
began to be designed since the seventies, in addition to provisions of Five-Year Plans
the country.
I n this chapter, we will discuss:
Credit and Marketing facilities for rural people;
Dirersification of Agricultural Activities; and
Organic Farming and its significance in sustainable development.
6.3 PROCESS OF RURAL DEVELOPMENT
Rural development aims at comprehensive change and
Some of the areas, whih are challemging and
improvement of rural life in all aspecs
need fresh initiatives for development in India inchur
1. Development of Human Resources: The quality of the human resource needs to be
through following measures: improve
Proper attention to
literacy (specifically on female
development; and literacy), education and s
Better Health facilities for the
physical growth
2
Development of Infrastructure: It involves:
.Improvement in electricity, irrigation, credit, marketing
(including construction village roads and
of andtransport faciu
Better facilities for feeder roads to
agriculture research and extension and nearby highways)
3. Land Reforms: It includes the information disseminnatir
following
Elimination of exploitation in land objectives:
Actualisation of the goal of land to relations;
the
tiller';
Improvement of soaoeconomic conditions of
Increasing agricultural productivity and ruralpoor by widening their lan
production.
RralDeve/opiment 6.3

ation ot P'overty: As stated earlier, around 30% of total population is still below the
4. All

erty line. So, there is a serious need for taking serious steps for alleviation of poverty

and
d bringing SIgniicant improvement in living conditions of weaker sections.
of the of
5. Development c
productive resources of each locality to enhance opportunities
employment
(particularly other than farming).
PROCESS OF RURAL DEVELOPMENT
Development of Development of Land Reforms Alleviation of Development
Infrastructure of Productive
Human Resources (Involves elimination Poverty Resources of
(Through proper Cinvolves of exploitation in (Taking steps to
attention to improvement in land relations, improve living each Locality
education and electricity, irrigation, providing land to conditions of weaker
health facilities) marketing, etc.) tiller, etc.) sections)

6.4 RURAL CREDIT

Growth of rural economy depends on timely infusion of capital, to realise higher productivity
in strongneed for credit
inagriculture and non-agriculfure sectors. In agriculture, farmers are

due to long time gap between crop sowing and realisation of income.
Farmers borrow from various sources to meet initial investment on seeds, fertilisers, implements
and other family expenses of marriage, death, religious ceremonies, etc. So, credit is one of the

important fuctors, which contribute to agricultural production. An efficient and effective rural credit
ieliovery system is crucialfor raising agricultural productivity and incomes.
Creditneeds of farmers can be examined on the basis of Time' and Purpose'. For a detailed discussed
on this, refer Power Booster Section.

6.5 SOURCES OF RURAL CREDIT

With growing modernisation of agriculture during post-green revolution period, the requirement
of agricultural credit has also increased in the recent years. Broadly, there are two sources, from
Which the farmers can raise loans:
Non-Institutional Sources (ii) Institutional Sources
4t 15
now discuss these two sources of agricultural credit in India.
soURCES OF RURAL CREDIT

Non-Institutional Sources Institutlonal Sources

Moneylenders -Co-operative Credit

Relatives -Land Development Banks
raders and Commercial Bank Credit
Commission Agents
Rich Landlords Regional Rural Banks
The Government
National Bank for Agricultural and Rural Development (NABARD)
Lself-Help Group Bank Linkages Programme for Micro Finance
6.4 Economics for Clasy

Non-Institutional Sources
Non-institutional sources have been the traditional source of agricultural credit in India n

major non-institutional sources are:

1. Moneylenders: From the very beginning, moneylenders advancing a
have been majorsh
ate
exorbitant (very high) rates of intere
of farm credit. The peasents are exploited through est
without their knowledge.
Quite frequently, their accounts are manipulated

2. Relatives: Cultivators borrow funds from their own

relatives Theseloan.
in times of crisis.

are a kind of informal loans and carry no interest

and are normally after harves
returned

credit to the peasants on the mortgagesi

3. Traders and commission agents: They provide
o n a condition,
that the crops will be sold to them atlox
crops at high rates of interest,
prices.
farmers and tenants, take loans from landlords
4. Rich Landlords: Small as well as marginal
for meeting their financial requirements.
Landlords also charge high rates of intereston
small farmers and tenants.
such loans and exploit the peasants, particularly
Non-Institutional Sources", refer Power Booster
Section.
For "Exploitation by

Institutional Sources
to exploit small and marginal farmers by lending|
The various non-institutional sources used
to them on high interest rates
and by manipulating the accounts to keep them in a debt-trap.A
1969, when India adopted the institutional credit approach through variouS
major change occurred after
agencies.
Government established the institutional sources with the following objectives:
To provide adequate credit to farmers at a cheaper interest rate
To assist small and marginal farmers in raising their agricultural productivity an
maximising their income.

Some of the important institutional sources of agricultural credit are:

1. Co-operative Credit: The primary objective of the co-operatives is to liberate the Indla
easantry from the clutches of moneylenders and to provide them credit at low rate
interest.
2. Land Development Banks: They provide credit to the farmers against the mortgage ortheir
lands. Loans are provided for permanent improvement of tural

implements and for repaying old debts.

land, purchasing agric
3. Commercial Bank Credit: Initially, commercial banks played a marginal role in advancu
rural credit. However, after nationalisation
in 1969, they
expanded their branches inr
areas and started directly financing the
farmers.
4. Regional Rural Banks: They are
opened up in
those areas where there are no anking

Their main objective is to provide credit

facilities. 1and
and other
marginal farmers, agricultural abourers, artisans facilities, especially rural
to
s
and small areas.

entrepreneur
n e u r s in
A u r a lD e v e l o p m e n t

6.5

5 .The Government: ihe loans provided by the government are known as taccavi loans and

are lent during emergency or distress, like famines, floods, etc.

etc. The
The rate
rate of
of interest charged
n e s , floods, interestcharged
ainst such
such loan is as
as low as 6%.
as 6%
against
6. National Bank
for Agricultural and Rural
Development
ABARD): It is the Apex Bank which coordinates the
(N
functioning of different financial institutions, working for
expansion ot
rural credit.
. Its objective is to promote health and strength of credit
institutions (namely, cooperatives, commercial banks and
regional rural banks).

Besides providing finance to credit institutions, NABARD

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 emerged because of inadequacy of formal credit delivery
facilities because
mechanism. Moreove, vast proportion poor rural households could not avail credit
of
of their inability to provide some kind of collateral.
7. Self-Help Group (SHG) Bank Linkages Programme for Micro Finance: SHG has emerged
as the major micro finance programme in the country in recent yearsS.

Their focus is largely on those rural poor, who have nosustainable access to the formal
banking system.
and marginal farmers, agricultural and non-
So, their target groups comprise ofsmall
agricultural labourers, artisans, etc.
minimum contribution from each
SHGs promote thrift in small proportions by a

member.
to the needy members at reasonable interest
From the pooled money, credit is given
in small installments.
rates, which is to be repaid
more than forty
three lakh SHGs had reportedly been credit linked.
By March 2012,
However, the borrowings are
SHGs have also helped in the empowerment of women.
and negligible proportion is borrowed foor
to consumption purposes
mainly confined
productive purposes. Section.
refer Power Booster
enefits ofInstitutional Sources",
6.6 CRITICAL APPRAISAL OF RURAL BANKING
effect onrural farm and non-farm
had a positive
expansion of the banking system credit facilities helped farmers to
employment. After the green revolution, famines
ncome and
needs. With buffer stocks of grains,
avail variety o their production
beraiey of loans for meeting
became events of the past.
6.6

Even then, there are

conomics for Cla
number of Problems faced by the
Some of the agricultural credit structure ofthe
problems faced in rural banking are: coun
the coun
1.
Insufficiency: The volume of rural credit in the
PROBLEMS FACED IN RURAL BANKING
country is still insufficient in comparison to its
demand. - Insufficiency

2.
Inadequate Coverage of institutional sources: Inadequate Coverage of Inetitutional Soe
The institutional credit Inadequate Amount of Sanction
Source
to be
arrangement continues
inadequate as they have failed to cover -Less Attention to Poor or Marginal men
the entire rural farmers of the
country. Growing Overdues 2
3.
Inadequate Amount of Sanction: The amount of loan sanctioned to the tarmers is
ale
inadequate. As a result, farmers often divert such loans for unproductive purposes, whic
dilute the very purpose of such loan.
. Less attention to poor or
marginal farmers: Lesser attention has been given on the cre
requirements of needy (small and marginal) farmers. On the other hand, well-to-do
farme
are
getting more attention due to better credit worthiness.
5.
Growing Overdues: The problem of overdues in agricultural credit continues to be
of concern. an are
.The basic reason for growing overdues is the
result, credit agencies are
poor repaying capacity of farmers. Asa
becoming
cautious of granting loan to farmers.
Agriculture loan default rates have been
chronically high. It is alleged that farme:
are
deliberately refusing to pay back loans. It is a threat to the smooth functioning
banking system and needs to be controlled.
Thus, the expansion and promotion of the rural
banking sector has taken
reforms. Except the commercial banks, other a backseat afe
formal institutions failed
deposit mobilization, lending to needy borrowers and
effective loan
to develop a culturr
To improe the situation: recovery.
G) Banks need to change their approach from just
banking with the borrowers; and being lenders to building up relationsu
(i) Farmers should also be
utilisation of financial
encouraged to inculcate the habit of
resources. thrift (saving) and e ient
n
For "Features of an Effective Rural Credit System ,
refer Power
Booster Section.
TamilNadu Women in Agriculture
(TANWA)
TANWA is a project initiated in lamil Nadu to traln women in
.It induces women to latest
actively paricipate
income. in
raising agriculturalagricultural techniques
Women are forming productivity and famiuy
Farm womens Groups, which
function like SHG
 Rural Development 6.7

Many other Farm Women's Groups are creating savings in their group byfunctioning like
mini banks through a micro-credit system.
With the accumulated savings, they promote small-scale household activities like
mushroom cultivation, soap manufacture, doll making or other income-generating
activities.

The food grains, vegetables and fruits that we consume daily, come from different parts of the country
The mechanism through which these goods reach different places depends on marketing of agricultural
goods. Let us now discuss the Agricultural Marketing System"

6.7 AGRICULTURAL MARKET SYSTEM

Fural people not only face problems with regard to finance, but also encournter difficulties in
marketing their goods. Thus, issue of'Agricultural Marketing' needs urgent attention in the scheme
of securing rapid rural development.

Meaning of Agricultural Marketing

Agricultural marketing is a process that involves assembling, storage, processing, transportation,
packaging, grading and distribution of different agricultural commodities across the country.
Agricultural marketing system is an efficient way by which the farmers can dispose their
surplus produce at a fair and reasonable price. It involves different activities for movementof
farm produce from the producer to the ultimate consumer.
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 were 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 for selling later at a better price. Even today, more than 10% of goods produced
in farms are wasted due to lack of storage.
Therefore, government intervention became necessary to regulate the activities of the privatetraders

Measures to Improve Agricultural Marketing

After Independence, the Government of India adopted the following measures to improve the
system of agricultural marketing

MEASURES TOIMPROVE AGRICULTURAL MARKETING

DIfferent Pollcy
Regulated Infrastructural Cooperatlve
Instrumente
Markete Facilitles Marketlng
(Toprotect farmers (To provide (To realise falr (LIke Minimum Support
from malpractlces of facilities like roads, price for farmers Prices, Maintenance of
sellers and brokers) warehouses, eto.) products) Buffer Stocks, PDS)
6.8 Economics for Claa
1. Regulated Markets: The first regulation of markets, to
measure was
to
orderly a create
create orderly:and
transparent marketing conditions. Regulated markets have been organised
policy
with
benefite
avi
view
to protect the farmers from the malpractices of sellers and brokers. This policy benefi
farmers as well as consumers.
However, there is still a need to develop about 27,000 rural periodic markeis as regulated marke
et
places in order to realise the full potential of rural markets.

Regulated market yards benefit farmers as well as consumers

2. Infrastructural Facilities: The Government aims to
like roads, railways, warehouses,
provide physical infrastructure facilities
godowns, cold storages 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 of cooperative marketing is to realise fair
products. Under this, marketing societies are formed by farmers to sell the price for farmers
bargaining, in order to obtain better price. Milk collectively in
to take advantage of collective output and
Gujarat have been very successful in Cooperatives
transforming
Gujarat and some other parts of the country.
the social and economic
condition of
However, cooperatives have received a setback
during the recent past because of:
Inadequate coverage of farmer members;
Lack of appropriate link between marketing and
Inefficient financial management. processing cooperatives;
4. Different Policy Instruments: In order to
the following policies: protect the farmers, the d
Minimum Support Prices MSP): To
government has inina
theminimum support prices of safeguard the interest of
sugarcane, pulses, etc. Such a agricultural products, like
farmers, government n
ernment
ixes

price
may be regarded as
Government is willing to buy any amount wheat,
rice, maize, cotto ton,

an offer ice, at
Maintemance of of price, at which
whicn th
Buffer
Stocks: The Food grains from the farmers.
rice at the
procurement prices, to Corporation
maintain
of India
(FCI) purchases
urchases wheatand
years of surplus
production and is used buffer stock. wheat
in supply and
stability
in
prices. during shortages.Buffer
It
stock is created
created inithe

helps to ensure reg

regularity
A u r a lD e v e l o p m e n t
6.9
*******"***

. Public Distribution System (PDS): The public distribution system in our country operates
through a network of ration 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 sections of the society.
at subsidised
These instruments
atm to protect the income of farmers and to provide foodgrains a

rate to the poor.

Conclusion
However,
Tricultural marketinghas come a long way with the intervention of government.
the
Agric
intervention:
despite of government rural
traders like moneylenders,
Agricultural markets are still dominated by the private
political leaders, big merchants and rich farmers.
and consumer
handled by the government agencies
The quantity of agricultural products,
constitutes only 10%, while the rest is handled by
the private sector.
cooperatives,
tremendous scope for
often argued
It is by some scholars that commercialisation of agriculture offers
restricted.
incomes provided the government intervention is
farmers to earn higher to
Marketing in India" and "Remedial Measures
on "Defects of Agricultural
For a detailed discussion
refer Power Booster Section.
Improve Agicultural Marketing",
Channels
Emerging Alternate Marketing
can increase their
1. Origin of Farmers Market: Farmers
to consumers. As
incomes, if they directly sell produce
their
Market" w a s started, to give
a result, the concept of
"Farmers
them provide direct
boost to the small farmers by providing
middlemen.
and eliminating the
access to the consumers

are:
Some examples of these channels
and Rajasthan;
Apni Mandi in Punjab, Haryana "Apni Mandi" is an initiative to
encourage farmers to directly
Hadaspar Mandi in Pune; market their produce without being
Pradesh; and exploited bymiddlemen or traders
Rythu Bazars in Andhra
market in Tamil Nadu).
Uzhavar Sandies (farmers multinational
nies: Several national and
2. Alliance with National and Multinational C
c o n t r a c t s / a l l i a n c e s with
farmers.
into
increasingly entering of the
products (vegetables, fruits, etc.)
dst food chains are
cultivate farm
farmers to
hey encourage the
desired quality. and other inputs, but also
assure procurement
seeds
with not only
ney provide them
Ot the produce at pre-decided prices. the price risk of farmers and
arrangements
will help in reducing
ts argued that such
farm products.
pand the market for
 Economics for
6.10 Class X
6.8 DIVERSIFICATION OF AGRICULTURAL ACTIVITIES

Reason for Diversification

economic development. However, the .
Agriculture plays a very important role in the risk in depending only on agriculh
of rural people work on land and there is greater
majority
The need for diversification arises because:
on farming
for livelihood; and
There is greater risk in depending exclusively
0 to rural people.
(i) To provide productive sustainable livelihood options
Benefits of Diversification
Kharit season. Durin
concentrated in the
Much of the agricultural employment activities are
it becomes difficult to find gainful employment
in the areas where there a
the Rabi season,
diversification into other sectors is essential:
inadequate irrigation facilities. So,
To provide supplementary gainful employment;
T o enable them to earn higher levels of income; and
other troubles.
T o enable rural people to overcome poverty and
Types of Diversification
Diversification includes two aspects:
a) 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).
The focus of this chapter is only on allied activities, non-farm employment
and other emerging alternatives of livelihood, though there are many
other options available for providing sustainable livelihoods in rural Jaggery making is an alled
areas.
activity of the farming sector

TYPES OF DIVERSIFICATION

Dversification of Crop Production Dlverslfication of

(Involves shift from single-cropping Productlve Actvitles
to multi-cropping system) Invoves shift of workdorce
alled actvitles and from agriculture too oher
non-agricuture sector
Diversification of Crop Production
It involves a shift from single-cropping system to
multi-cropping system.
Diversification involves a shift in cropping pattern fronm food
the main aim is to promote shift from grains to cash crops. Basicaly
subsistence farming to
I n India, agriculture is
still dominated by commercial farming
subsistence farming prime

importance to the cereals in the cropping system. and farmers give p

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

6.11
r e is a need to encourage farmers to take up cuitivation of a wide vanety of C "

also raise their income.

will

ersification of roductive Activities

vers
lture ais already oTercrourded, a major proportion of the increasing labour force neea5
ulture
45 T I
mrloyment opportunities in other non-farm sectors
It would provide altermative avenues ofsustainable livelihood and would raise the leve
of income.

on-farm Activities has several segments. Some segments of non-farm activibes POs

dynamic linkages that permit healthy growth, while others

productivity propositions.
are in subsistence. low
.The dynamic sub-sectors include agro-processing industries, food processing DausinS
leather industry, tourism, etc.
Those sectors which have the potential but seriously lack infrastructure and other support
cude traditional household-based industries, like pottery, crafts, handlooms, etc

69 NON-FARM AREAS OFEMPLOYMENT

s no disCuSs some of the important non-farm areas ofemploymeni.
Information Technology
(Involves use of computers and
telecommunications to retrieve and
store and transmit information)

Animal Husbandry Horticu

(Concermed with breeding, reaning (nvolves autiating iuis
and caring for farm animals) Non-Farm
Areas of
vegetabies aber oops, e
Employment
Dairying Fisheries
(lInvotves breeding, raising and invohves catching. procs
Utilisation of dairy animals for or selling of fish and oher
various dairy products) aquatic animals

ATumalHusbandry and Dairying

nimal Husbandry
Husbandry (or Livestock farming) is that branch of agriculture,
uhich is ncerned
uwith the breeding, rearing and caring for farm
mimals.
Under livestoo farming, cattles, goats and fowls (duck,
nder livestock
g00se, etc.) are the widely held
species. Sheep Rearing is an
ndia owns one of the largest livestock populations in the income augmentin
world. n rural aress
6.12
*********************************************************sebwan*****w****************evekmne sas*sawesnssane.*seneranea eane*estannennvn.n srohasnnnnnnasoteeon amsusasses* .stsea*
*****"*
Economics for ClasA
.**sn*mr********************** *************** en

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 alternate livelihood options to

over

70 million small and farmers, including landless marginal

labourers.
A significant number of women also find employment in
the livestock sector.
Poultry has the largest share
In India, poultry accounts for the largest share of 58%, of total livestock in India
tollowed by others (camels, asses, horses, ponies and mules).

Dairyin
and utilisation ofdairy animals
Dairying is that branch of agriculture which involves breeding, raising
it.
for the production of milk and the various dairy products processed from
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 watk
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
under the guidance of then chairman, Dr. Kurien. T
NDDB) in1970 expert
objective of this programme was to create a nationwide milk grid.
Verghese
Under the Operation Flood system, all the farmers
pool their milk produce accordug
to different grades and same is processed and
marketed to urban centres throu
cooperatives. The farmers are assured of a fair price and income.
Gujarat state is held as a success story in the efficient nilk
cooperatives, which has been followed by many states. of implementation
Meat, eggs, wool and other by-products are also
for diversification. as emerging important productive se ectors

Evaluation of Livestock Farmin9

() In terms of numbers, our livestock
is quite low as compared to otherpopulation quite
is
countries. impressive. However, its productivy
(Gi) There is a need for
improved
enhance productivity. technology and promotion of
good breeds of animals, T
Gii) Improved veterinary care and credit
sustainabletacilities
labourers would enhan small and to
livelihood options marginal farmers and landles through livestockproduction.
Rurel Development 6.13

For Your Knowledge Enrlchment

According to estimates of the Central Statistics Office (CsO), the value of outputfrom livestock
sector at current prices was about 4,59,051 crore during 2011-12, which is about 24.8% of

thetotalvalue of outputfrom totalagricultural and llied sector at current prices

Fisheries

Fisheries refer to the occupation devoted to the catching, processing or selling of fish and other aquatic
animals. Fisheries sector plays an important role in the socio-economic development of the country.

In ndia, after progressive increase in budgetary allocations and introduction of new technologies
infisheries and aquaculture, the development of fisheries has
come a long way.

Important Points About Fishing

Fishing community regards water body as 'mother': The water bodies (sea, oceans, rivers,
lakes, natural aquatic ponds, streams) are considered as 'mother or 'provider' as they
provide life-giving source to the fishing community.
2. 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
(sea and oceans).
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 ishing: Even though women are not involved in active fishing,
still, 60% of the workforce in export marketing and 40% in internal marketing are women.
There is a need to increase credit facilities in the form of cooperatives and self-house groups
SHC) for fisherwomen to meet their working capital requirements for marketing
5. Problems faced in Fishing: A large share of fishworker families are poor. Some of the major

problems faced by these communities include:

) Widespread Underemployment;
i) Low per capita earnings;
ii) Absence of mobility of labour to other sectors;
iv) High Illiteracy rate and indebtedness.

Evaluation of Fishing9
() Problems like over-fishing and pollution need to be regulated and controlled.
which
() Welfare programmes for the fishing community have to be reoriented in a manner,
can provide long-term gains and sustenance of livelihoods.
For Your Knowledge Enrlchment
As per the estimates of CSO, the value of output from fisheries sector at current price was
which is about 4.15%
during 2011-12, value of agricultural and
of the
about 76,699 crore

allied sector output at current price

 6.14 Economics t e

Horticulture
Horticulture refers to the science or art ofcultitvating fruits, vegetabies,
tuber crops, flowers, medicinal and aromatic plants, spices ana
plantation crops. These crops play a vital role in providing tood
and nutrition, besides addressing employment concerns
with a varying
India has adopted horticulture as it is blessed
climate and soil conditions.
and
I t is an important for potential diversification
sector Emphasis on Horticna
is on a continuous
value addition in agriculture. increase in the coun

Important Points About Horticulture one-third of the value

of agricule
contributes nearly
1. Contribution: Horticulture sector
India.
and 6% of Gross Domestic Product of
output world leader in producing a vare
Share in World's Production: India has emerged as a spices. W
number of
cashew nuts and a
of fruits, like mangoes, bananas, coconuts, tonnes of vegetabies it
of fruits and 146.554 million
production of 74.877 million tonnes
of both fruits and vegetables in the wori
2010-11, India is the second largest producer
Condition: improved economic conditiond
Horticulture has
3. Improvement in Economic
livelihood for many unpriviegei
many farmers
and has become a m e a n s of improving
classestoo
Great Scope for Women Employment: Flower harvesting, nursery hybrn~
maintenance,
4.
of fruits and flowers and food procesig
seed production and tissue culture, propagation
for w o m e n in rural areas.
a r e highly remunerative employment options

Evaluation of Horticulture
Horticulture has emerged as a successful sustainable livelihood option and needs to be
encouraged significantly. Enhancing its role requiresivestmentin infrastructure, like electricy
cold storage systems, marketing linkages, small-scale processing units and technology
improvement and dissemination.

Information Technology
Information Technology (IT) refers to that branch of engineering that deals with the use ofom
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 criical role in achieving sustainable development and
security in the 21st century.

Important points about Information Technology

Through appropriate information and software tools,
predict areas of food insecurity and government has been a
an emergency.
vulnerability, prevent or reduce the likelihood
to
Rural Development 6.15

I t also has a positiveimpact on the agriculture sector as it circulates information regarding

emerging technologies and its applications, prices, weather and soil conditions for growing
different crops, etc.
.It acts as a tool for releasing the creative potential and knowledge embedded in the society.
It also has potential of employment generation in rural areas.
The aim for increasing the role of Information Technology is to make every village a knowledge center,
where it provides a sustainable option of employment and livelihood.

Adoption of Village by Parliamentarians (For Knowledge Enrichment)

In October, 2014, The Government of India introduceda new scheme called Saansad Adarsh
Gram Yojana (SAGY).
Under this scheme, Members of India's Parliament need to identify and develop one
village from their constituencies.
To begin with, MPs can develop one village as a model village by 2016, and two more by
2019, covering over 2,500 villages in India.
According to the scheme, the village can have a population of 3,000-5,000 in the plains
and 1,000-3,000 in the hills and should not be MPs' own or their spouse's village.
.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.

6.10 SUSTAINABLE DEVELOPMENT AND ORGANIC FARMING

In recent years, there is a considerable rise in awareness of the harmful effects of chemical-
based fertilisers and pesticides. Conventional agriculture relies heavily on chemical fertilisers and
toxic pesticides etc., which enter thefood supply, penetrate the water sources, harm the livestock, deplete
the soil and devastate natural eco-systems
So, efforts have been made to evolve technologies, which are
eco-friendly and are essential for
sustainable development. One such eco-friendly technology is Organic Farming'

Meaning of Organic Farming

Organic farming is theform 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.
I n short, organic agriculture is a whole system of farming that restores, maintains and
enhances the ecological balance.
There is an increasing demand for organically grown food, to enhance food safety
throughout the world.
6.16 Economics for Class

Benefits ofOrganic Farming

Organic Farming is beneficial because of following reasons:
1. Economical Farming: Organic Farming offers a means to substitute costlier agricultu

with locally producd

inputs (such as HYV seeds, chemical fertilisers, pesticides, etc.)
cheaper organic inputs.
2. Generates income through exports: It generates income through international exportsas

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.

Popularity ofOrganic Food (For Knowledge Enrichment)

Organic food is gaining popularity across the world. Many countries have around 10% of
their food system under organic farming.
Now a days, many retail chains and supermarkets are accorded with green status to sell
organic food.
Moreover, organic foods command higher prices of around 10-100% as compared to
conventional ones.
Organically Produced Cotton in Maharashtra
in 1995, Kisan Mehta of Prakruti (an NGO) first suggested that
cotton, which uses maximum
chemical pesticides, could be grown organically. At present, 130 farmers have committed
1,200 hectares of land to grow cotton organically on the International Federation of
Organic
Agriculture Movement's standards.
Chalenges before Organic Farming
Organic Farming suffers from following drawbacks:
1. Less Popular: Organic farming needs to be
willingness on the part of farmers, tor adoption popularized
of new
by creating awareness aand
for an appropriate agriculture policy to technology. There is a serious n e
promote organic farming.
2. Lack of infrastructure and
marketing facilities:
inadequate infrastructure and marketing facilities. Organic farming ces
faces problems of
problen
a Low Yield: Organic farming has a lesser
yield in the initial
agricultural farming. a result, small and marginal years as compared to mou ern
As
large-scale production. farmers adapt to
find difficult to
adapt
AurcalD e v e / o p m e n t
6.17

Shorter food life: Organic produce has a shorter shelf life as comparedto sprayed produce.

imited choice of crops: The choice in production of off-season crops

5. L i m i t e d
is quite limited in

organic farming.
and
of all these
Inspite ofall
limitations, organic farming helps in sustainable development of agriculture
in international markets.
has aa clearadvantage producing organic products, for both domestic and
clear.
has
Imdia

ORGANIC FARMING

Benefits Challenges
Economical Farming- Less Popular
Generates Income through Exports Marketing Facilities
Lack of Infrastructure and
Provides Healthy Food- FLow Yield
Source of Employment- Shorter Food Life
Safety of Environment -Limited Choice of Crops

6.11 EVALUATION OF RURAL DEVELOPMENT

The rural sector will continue to remain backward until and unless some spectacular changes
accur. Some of the changes which need to be taken for development of rural sector are outlined
below:
1. Stress on Diversification: There is a need to nake 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 likecredit and marketing
State agricultural departments;
Farmer-friendly agricultural policies;
Constant appraisal and dialogue between farmers groups.
he aim is to achievefull potential of the rural sector
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.