RURAL DEVELOPMENT�

Meaning of Rural Development:-

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

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Rural Development is a comprehensive term which essentially focuses on action for the development of areas that are lagging behind in overall development of the village economy.

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• 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.

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• So development in agriculture will contribute to the betterment of rural areas and rural people.

Key Issues in Rural Development�

• Rural credit facilities
• Development of rural Marketing
• Permanent means of irrigation
• Expansion of agricultural Research and facilities of information.
• Development of electricity.
• Alternative employment opportunities.
• Diversification of agricultural and commercialization of agriculture.

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Rural Development

�� Rural Credit:� �

• : Rural Credit means
• credit for buying additional land, implements and tools,
• fertilizers, seeds,
• paying off debt,
• personal expanses
• like marriage, death, religious ceremonies etc.

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Sources of Rural Credit

• Formal Sources-
• formal sources include
• co-operative societies,
• commercial banks
• regional rural bank and
• self-help groups.
• These sources provide loans at very low rate of interest and save farmers from exploitation.

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Informal Sources-�

• Informal Sources-
• these sources include
• money lenders,
• traders, commission agents,
• landlords,
• relatives and friends.
• These sources charge high rate of interest and exploit labours.

Limitations of Rural Banking�

• Problem of over dues and default rate.
• Inadequate finance.
• Regional inequalities
• Benefits to rich farmers only

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. Development of human resources:

• (a)Literacy, speedy female literacy
• (b)Education and skill development
• (c)Land reforms.
• (d)infrastructure development like roads, communication, irrigation facilities,
• credit and financing,
• marketing and research
• ICT etc.

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Poverty alleviation programmes

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Improvement in the living conditions of the weaker sections of the people.

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Over all development of socio-economic conditions and standard of living

Rural credit:- Importance

• Growth of rural economy depends on the timely infusion of capital to realize higher productivity in agriculture and non agriculture sectors. In agriculture farmers are in strong need for credit due to long time gap between crop sowing and realization of income.

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• Farmers borrow from various sources to meet initial investment on seeds , fertilizers, family expenses, so credit is one of the important factors which contribute to agriculture production. An efficient and effective rural credit delivery system is crucial for raising agricultural productivity and incomes.

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Source of Rural Credit

• Source of Rural Credit:-
• With growing modernization 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:-

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• Institutional Sources

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• Non- Institutional Sources

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Institutional Sources:-�

• Co-operative Credit
• Land development Banks
• Commercial bank credit
• Regional Rural banks
• The Government
• National Bank for Agricultural and Rural Development (NABARD)
• Self Help Group(SHG) bank linkages programme for Micro finance

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Non-Institutional Sources:-�

• Moneylenders
• Relatives
• Traders and Commission agents
• Rich landlords

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Agricultural Market System:-

• Agricultural marketing is a process that involves assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country.

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• It is defined as a process of collections storage, processing, transport, packing, classification and distribution of agricultural products.

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• Agricultural marketing system is an efficient system is an efficient way by which the farmers can dispose their surplus produce at a fair and reasonable price.

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• It involves different activities for movement of farm produce from the producer to the ultimate consumer.

Defects of Agriculture Marketing:

• Improper measuring for weighing, Grading.
• �No knowledge about the current prices.�
• Improper storage facilities.�
• Multiplicity of middleman�
• Inadequate means of transport and communication.�
• Inadequate market information.

Steps undertaken by the Government for improving Agricultural Marketing�

• Establishment of Regulated Markets.
• Development of Roads and Railways.
• Development of storage houses, cold storage and processing Units.
• Expansion of marketing Information.
• Minimum support price policy.
• Safe storage and public distribution system.

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Measures to improve Agricultural Marketing:-�

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Regulated Markets.

Infrastructural facilities.

Cooperative marketing.

Different Policy Instruments:-

(A) Minimum Support Prices(MSP).

(B) Maintenance of Buffer stock.

(C) Public Distribution System(PDS)

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Diversification of Agricultural

Diversification of Agricultural Activities

• Much of the agricultural employment activities are concentrated in the” Kharif” Season. During the “Rabi” season it becomes difficult to find gainful employment in the areas where there are inadequate irrigation facilities. So diversification into other sectors is essential :

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• To provide supplementary gainful employment.
• To enable them to earn higher levels of income
• To enable rural people to overcome poverty and others troubles.

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Types of Diversification:-�(i) Diversification of Crop Production�(ii) Diversification of Productive Activities

• Diversification of crop production: It means productions of a diverse variety of crops rather than one specialised crop. It would mean a shift from subsistence farming to commercial farming.

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• Diversity of Employment: - It means a shift from crop farming to other areas of productive activity with a view to raising income and exploring alternative revenue of sustainable livelihood.

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Non- Agricultural Sectors of Employment�

Animal Husbandry

Fisheries

Horticulture

Cottage and small scale industries

Information Technology.

Non-Farm Areas of Employment:-�

• (1) Animal Husbandry:-

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• Animal Husbandry is that branch of agriculture which is concerned with the breeding, rearing and caring for farm animals. India owns one of the largest livestock populations in the world.

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(2) Dairying:-�

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

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Non-Farm Areas of Employment:-�

Fisheries:-

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Fisheries refer to the occupation devoted to the catching, processing or selling of fish and other aquatic animals.

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Horticulture

Horticulture:- Horticulture refers to the science or art of cultivating fruits, vegetables,

tuber crops,

flowers,

medicinal and

aromatic plants,

spices

and plantation crops.

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Small Scale & Cottage Industry

5) Information and Communication Technology�

Importance of ICT

Development and Organic Farming:-�

• In recent years there is a considerable rise in awareness of the harmful effects of chemical-based fertilizers and pesticides. Conventional agriculture relies heavily on chemical fertilizers and toxic pesticides etc. which enter the food 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”.

Organic farming

• Organic farming is the form of agriculture that relies on techniques such as crop rotation, green manure ,compost and biological pest control.

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• This methods avoids the use of synthetic chemical fertilizers and genetically modified organisms.

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Benefits of Organic Farming:�

• 1. Economical farming.
• 2. Generates income through exports.
• 3. Provides Healthy Food.
• 4. Source of Employment.
• 5. Safety of environment.

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• THANKS