Question 1.

Rural development is important for India. Why?

Answer:
Rural development is important because around two-third of
India’s population lives in rural areas.

Question 2.
State the various infrastructural facilities which should be
developed in rural areas for their development.
Answer:
Infrastructural facilities such as electricity, irrigation and
transport facilities should be developed to promote rural
development.

Question 3.
Explain why do farmers need credit?
Answer:
Farmers need credit to buy additional land, tools, fertilisers and
seeds, for paying off old debt and even for personal expenses
like marriage, death, religious ceremonies, etc.

Question 4.
Why are Indian farmers caught in a debt trap?
Answer:
The Indian farmers borrow year after year and are not in a
condition to pay off debts taken at high rate of interest. The
debt mounts year after year. This has created a class of
landless labourers who are in a debt trap.

Question 5.
Why have Self Help Groups (SHGs) been established?
Answer:
Self Help Groups (SHGs) have been set up to fill the gap in the
formal rural credit system which has proved to be inadequate
and has not been fully integrated into the rural, social and
community development.
Question 6.
Explain the meaning of rural development.
Answer:
Rural development is a process through which attempts are
made to improve the standard of living of rural people.

Question 7.
State any two challenges in rural development.
Answer:
The two challenges are as follows

 Provision of adequate credit in rural areas.

 Improving agricultural marketing.

Question 8.
What is meant by rural credit?
Answer:
Rural credit means providing credit for the farming community.

Question 9.
Name any two institutional sources of credit.
Answer:
Two institutional sources of credit are as follows

 National Bank for Agriculture and Rural Development.

 Regional Rural Banks.

Question 10.
Categorise the borrowing needs of farmers.
Answer:
Borrowing needs of a farmer can be categorised as follows

 Productive borrowings These borrowings include loans to

buy seeds, fertilisers and agricultural equipment and
implements.
 Unproductive borrowings These borrowings include loans
for social purposes such as marriage and festive
occasions, or to meet expenditure on illness, death, etc.
Question 11.
Explain how Kisan Credit Card fulfills the credit needs of rural
population?
Answer:
Kisan Credit Card (KCC) scheme is an example of credit facility
which was introduced by the government in 1998-99.
It facilitates access to credit from commercial banks and
Regional Rural Banks. Under the scheme, the eligible farmers
are provided with a Kisan Card and passbook from the relevant
bank. The farmers can make withdrawals and repayments of
cash within the credit limit as specified in the Kisan Credit Card
(KCC).

Question 12.
Enumerate the functions of cooperative credit societies.
Answer:
The cooperative credit societies pursue the following functions

 They ensure timely flow of credit to the farmers.

 They provide adequate credit support, covering all areas of
needs of farmers.

Question 13.
Discuss the importance of credit in rural development. (NCERT)
Answer:
The rural economy can grow only if it has adequate flow of
finance. It is capital only which can ensure higher productivity
in agriculture. Provision of rural credit enables a farmer to buy
improved seeds, fertilisers, organic pesticides and equipments.
All these inputs help hire to increase his agricultural
productivity and his income.

So, importance of credit in rural development can be perceived

as a means to break the!vicious circle of low capital, low
productivity and low savings of the rural poor.
Question 14.
Explain the role of micro-credit in meeting credit requirements
of the poor. (NCERT)
Answer:
Micro-credit plays an important role in meeting the credit
requirements of the poor. Under micro-credit programmes,
farmers get adequate credit at cheaper rates. Micro-credit
programme promotes thrift in small proportions by a minimum
contribution from each member. From the pooled money, credit
is given to the needy members, which is repayable in small
instalments at reasonable interest rates. Micro-credit
programme removes the need of any kind of collateral. It also
helps in women empowerment.

Question 15.
Write a brief note of Saansad Adarsh Gram Yojana.
Answer:
In October, 2014, the Government of India introduced a new
scheme called Saansad Adarsh Gram Yojana (SAGY). Under this
scheme, Members of Parliament (MPs) need to identify and
develop one village from their constituency. MPs are expected
to facilitate a village development plan, motivate villagers to
take up activities and build infrastructure in the areas of health,
nutrition and education.

Question 16.
Discuss the traditional and modern challenges related to rural
development.
Answer:
Traditional challenges are those which the rural areas have
been facing for a long time. Rural credit and agricultural
marketing are examples of traditional challenges.

Modern challenges are those which the rural areas face with
the changing times. Diversification of agricultural activities and
problems related to organic farming are examples of modern
challenges.
Question 17.
Chtegorise rural credit on the basis of time pehriod.
Answer:
Rural credit may be classified as

 Long-term credit These loans are for a period of 5 to 20

years. These loans are required to acquire permanent
assets like I tractors, land, costly equipment, tubewells,
letc.
 Medium-term credit Such loans generally Stretch over a
period of 12 months to 5 years. These loans are required
for purchasing machinery, constructing fences and digging
wells.
 Short-term credit These loans are for a period of 6 to 12
months. These loans are required for buying seeds, tools,
manure, fertilisers, etc. These loans are given to the needy
borrowers by cooperatives moneylenders and banks.

Question 18.
Rural banking has not been able to fulfill the credit needs of
farmers. Why?
Answer:
Rural banking has not been able to give adequate credit to
farmers. This is mainly due to lack of proper infrastructure and
instruments to dispense credit to needy farmers. It has also
failed to develop a culture of deposit mobilisation, lending to
worthwhile borrowers and effective loan recovery. Agriculture
loan default rates are also high with high incidence of overdue
instalments by the farmers.

Question 19.
As an agriculturist, suggest any two measures to improve the
existing system of agricultural finance.
Answer:
As an agriculturist, I would offer following suggestions to
improve the existing system of agricultural finance
  The supply of finance should be fully institutionalised and
dependence on private sources for credit should be
eliminated.
 It should be ensured that finance is used for production.
Loans can be given in the form of goods like seeds,
fertilisers, etc.

Question 20.
Why is rural development important for India?
Answer:
Rural development is important for India because of the
reasons stated below

 Even today, nearly 70% of the population of India resides

in rural areas. So, if there is growth and prosperity in these
areas, it will fesult in the growth and prosperity of the
nation as a whole.
 Rural development will help to create employment
opportunities in the rural areas. This will not only raise the
standard of living of the rural population, but also check
the problem of migration.
 Rural development creates opportunities in . rural areas
for education and skill development. This helps to increase
the efficiency, productivity, mobility, income and standard
of living of the people.

Question 21.
What steps should be taken relating to finance, so that the
objective of rural development is achieved?
Answer:
To achieve the objective of mral development, following steps
related to finance can be taken

 The supply of finance should be fully institutionalised and

dependence on private sources for credit should be
eliminated.
 The general interest rate should be low. The banks should
charge different rates for different uses.
  The basis of credit should not be mortgage of any security.
Production or productivity of land should be the basis for
the approval of loans.
 The conditions of repayment of loans should be different
so as to suit different circumstances.
 It should be ensured that finance is used for production.
Loans can also be given in the form of goods like seeds,
fertilisers, etc.
 There should be adequately trained and devoted
personnel to manage the financial institutions. The
persons should have full knowledge of agriculture and
interest of farmers.

Question 22.
Give the advantages and limitations of rural banking.
Answer:
Advantages of rural banking are as follows

 Farm and non-farm output raised with the help of advisory

services and credit facilities.
 Food security is achieved. Abundant buffer stock of grains
is available now.
 Credit has been provided for self-employment schemes,
leading to increase in rural employment levels.

Limitations of rural banking are as follows

 Small and marginal farmers receive only a very small

portion of the institutional credit.
 Rural banking is suffering from the problems of large
amount of over dues and default rate.
 The sources of institutional finance are inadequate to meet
the requirements of agricultural credit.
 There exist regional inequalities in the distribution of
institutional credit.
Question 23.
Write a short note on NABARD.
Answer:
NABARD was set up in 1982 as an apex body to coordinate the
activities of all institutions involved in rural credit.
The main functions of NABARD are

 To grant long-term loans to the State Government for

subscribing to the share capital of cooperative societies.
 To take the responsibility of inspecting cooperative banks,
Regional Rural Banks (RRBs) and primary cooperative
societies.
 To promote research in agriculture and rural development.
 To serve as a refinancing agency for the institutions
providing finance to rural and agricultural development.
 To help tenant farmers and small farmers to consolidate
their landholdings.

Question 24.
What do you mean by rural development? Bring out the key
issues in rural development. (NCERT)
Answer:
Rural development is a comprehensive term which essentially
focuses on action for the development of areas that are lagging
behind in the overall development of the village economy. It is
a process whereby the standard of living of rural people,
especially rural poor people, rises continuously.
Following are the key issues in rural development

 Development of the productive resources of each locality.

 Development of human resources by providing
opportunities for adult literacy, female literacy, education
and skill development.
 Development of human resources by providing health
facilities, addressing both sanitation and public health.
 Honest implementation of land reforms.

Question 25.
What is the meaning of regulated markets?
Answer:
Regulated markets have been established by the government
where sale and purchase of agricultural produce is monitored
by market committee consisting of representatives of
government, farmers and traders.

Question 26.
Why do people look for employment in non-farm sectors?
Answer:
As agriculture is already overcrowded and cannot offer
additional employment, people seek employment in non-farm
sectors.

Question 27.
Name any two non-farm activities which should be developed in
rural areas.
Answer:
The two non-farm activities which should be developed in rural
areas are

 Handicrafts
 Poultry

Question 28.
Name some horticultural crops.
Answer:
Fruits, vegetables, tuber crops, flowers, medicinal and aromatic
plants, spices and plantation crops are the examples of some
horticultural crops.

Question 29.
Name the major states which are producers of marine products.
Answer:
Kerala, Gujarat, Maharashtra and Tamil Nadu are the major
producers of marine products.

Question 30.
What do you mean by agricultural marketing? (NCERT)
Answer:
Agricultural marketing is a process that involves assembling,
storage, processing, transportation, packaging, grading and
distribution of different agricultural commodities across the
country. The agricultural marketing system is a link between
the farm and the non-farm sectors.

Question 31.
Which policy assures a minimum income to the farmers?
Answer:
The policy of Minimum Support Price (MSP) assures a minimum
income to the farmers.

Question 32.
Which government body maintains buffer stocks of crops?
Answer:
Food Corporation of India

Question 33.
Which period is referred to as the ‘golden revolution’?
Answer:
The period between 1991 and 2003 is referred to as golden
revolution.

Question 34.
What is the role of buffer stocks in the context of agricultural
marketing?
Answer:
The Government of India has adopted the policy of buffer
stocks to minimise the fluctuations in the food prices. Buffer
stocks serve as shock absorbers in the economy and provide a
defence mechanism against the widely fluctuating price levels.

Under the buffer stock policy, the government builds up stocks

of food through direct purchases from the farmers and releases
these stocks for sale in the domestic market where prices are
increasing. Also, buffer stock operations aim at eliminating
unduly low prices consequent to bumper crops.
Question 35.
What is the importance of developing proper storage facilities
in rural areas?
Answer:
Farmers are forced to sell their crops at very low prices to
traders because of the fear of it getting damaged from fire,
rodents or pests due to lack of proper storage. It is essential to
develop proper storage facilities in rural areas so that farmers
can wait for better price for their produce in the market.

Question 36.
Explain the meaning of the term ‘distress sale’?
Answer:
Lack of agricultural marketing infrastructure often forces the
farmers to sell their produce at low prices for fear of spoilage or
to pay off an imminent debt. This is termed as distress sale.
Farmers tend to suffer highly on account of these sales,
because they not only get a low price for their produce, but are
also cheated by use of false weights and are charged a high
commission.

Question 37.
Write a brief note on ‘Operation Flood’.
Answer:
It is a system whereby all the farmers can pool their milk
produced according to different grading {based on quality) and
the same is processed and marketed to urban centres through
cooperatives.

In this system, farmers are assured of fair price and income

from the supply of the milk to urban markets. Gujarat state
holds a success story of the efficient implementation of milk
cooperatives, which has been followed by many states.

Question 38.
What is organic farming and how does it promote sustainable
development? (NCERT)
Answer:
Conventional agriculture relies on chemical fertilisers and toxic
pesticides for higher yields of crops. These chemicals and
pesticides enter the food supply, penetrate the water sources,
harm the livestock, deplete the soil and damage the natural
environment. Organic farming is an eco-friendly technique of
growing crops, which promotes sustainable development.

In other words, organic agriculture is a whole system of farming

that restores, maintains and enhances the ecological balance
and enhances the food safety, thus encouraging the practices
towards sustainable development.

Question 39.
Has globalisation helped the farmers in marketing their produce
and raising their standard of living?
Answer:
Globalisation has expanded the market of the national
companies and has allowed various MNCs to operate in India.
So, several national and international fast food chains and
hotels have been opened in India. These organisations enter
into contracts with the farmers to supply them farm products of
the desired quality at reasonable prices, thus helping the
farmers to market their produce.

Question 41.
Explain the role of multinational companies in rural
development.
Answer:
Economic reforms offered the opportunities to multinational
companies to expand their functions all around the country.
Many multinational companies are entering in the rural
marketing.

They are doing well for the sake of farmers as stated below

 They are making contracts with farmers.

 They are motivating farmers to grow desirable food, fruits
and vegetables of the desired quality.
 They are providing them seeds and other inputs.
 They are offering them pre-decided prices.
Question 42.
Why is agricultural diversification essential for sustainable
livelihoods? (NCERT)
Answer:
Diversification is essential because there is greater risk in
depending exclusively on farming for livelihood and to provide
productive sustainable livelihood options to rural people. Most
of the agricultural employment activities are concentrated in
the Kharif season while during the Rabi season it becomes
difficult to find gainful employment in areas lacking in irrigation
facilities.

Therefore, expansion into other sectors is essential to provide

supplementary gainful employment and in realising higher
levels of income for rural people to overcome poverty and other
problems. Hence, there is a need to focus on allied activities,
non-farm employment and other emerging alternatives of
livelihood for providing sustainable livelihoods in rural areas.

Question 43.
Mention some obstacles that hinder the mechanism of
agricultural marketing and create a need for the government to
interfere in this sector. (NCERT)
Answer:
Some obstacles that hinder the mechanism of agricultural
marketing are

 Faulty weighing and manipulation of accounts by traders

which results in exploitation of farmers when they sell
their products to traders.
 Farmers do not have proper storage facilities to store their
produce for selling later at a better price. Hence, they are
forced to sell even at lower price to save the produce from
decaying.
 Due to lack of knowledge about the prices prevailing in the
markets, farmers are forced to sell their produce at low
prices.
Question 44.
What are the alternative channels available for agricultural
marketing? Give some examples. (NCERT)
Answer:
Alternative marketing channels were developed to bring the
farmers in direct contact with the consumers. These channels
help in increasing farmers’ share in prices paid by the
consumers’. Some examples of these channels are

 Apni Mandi (Punjab, Haryana and Rajasthan)

 Hadapsar Mandi (Pune)
 Rythu Bazars (vegetable and fruit markets in Andhra
Pradesh)
 Uzhavar Sandies (farmers markets in Tamil Nadu)

Further, several national and multinational fast food chains are

increasingly entering into contracts/ alliances with farmers to
encourage them to cultivate farm products (vegetables, fruits,
etc) of the desired quality by providing them with not only
seeds and other inputs but also assured procurement of the
products at pre-decided prices.

Question 45.
Do you think various measures taken by the government to
improve agricultural marketing are sufficient? Discuss. (NCERT)
Answer:
Government has adopted various measures for improving
agricultural marketing such as regulation of markets, provision
of physical infrastructure, co-operative marketing and policy
measures like MSP, etc. But even after these measures taken
by the government, agricultural markets are still predominated
by moneylenders, rural political elites, big merchants and rich
farmers which are doing private trade.

The current infrastructure facilities are inadequate to meet the

growing demand, and need to be improved further.
Cooperatives are also suffering from problems like inadequate
coverage of farmers as members, lack of appropriate link
between marketing and processing co-operatives and
inefficient financial management.

Question 46.
Explain the role of non-farm employment in promoting rural
diversification. (NCERT)
Answer:
Agricultural sector in India is already overcrowded and suffering
from the problem of disguised unemployment. A major
proportion of the increasing labour force needs to find alternate
employment opportunities in other non-farm sectors.

Animal husbandry, fisheries, horticulture and information

technology are the key areas of non-farm activities which have
helped in promoting rural diversification. Rural workforce is
actively engaged in various non-farm activities to augment
their earnings.

Question 47.
“Information technology plays a very significant role in
achieving sustainable development and food security.”
Comment. (NCERT)
Answer:
Information technology plays a very significant role in achieving
sustainable development and food security in the following
ways

 It can act as a tool for releasing the creative potential and

knowledge embedded in our people.
 Issues like weather forecasting, crop treatment, fertilisers,
pesticides, storage conditions, etc can be well
administered, if expert opinion is made available to the
farmers.
 The quality and quantity of crops can be increased
manifold, if the farmers are made aware of the latest
equipments, technologies and resources.
 It has potential of employment generation in rural areas.
Question 48.
Enlist some problems faced by farmers during the initial years
of organic farming. (NCERT)
Answer:
The problems faced by farmers during the initial years of
organic farming are

 Organic farming requires inputs like organic manure, bio-

fertilisers and organic pesticides. Though they are cheaper
yet farmers find it difficult to get them.
 The yield from organic farming is much less than that of
modern agricultural farming.
 The price of organic food is high, so it is difficult to sell
them.
 Organic products generally have more . blemishes and
shorter shelf life.

Question 49.
Explain the steps taken by the government in developing rural
markets. (NCERT)
Answer:
Following are the steps taken by the government in developing
rural markets
(i) Regulation of markets: The government has established
regulated markets where the sale and purchase of the produce
is mbnitored by Market Committee consisting of
representatives of government, farmers and traders. Regulation
of markets helps to create orderly and transparent marketing
conditions.

(ii) Improvement in physical infrastructure: Through this

measure, the government ensures the improvement in physical
infrastructure such as roads, railways, warehouses, cold
storages etc.

(iii) Cooperative marketing: The government encourages

farmers to form producer marketing cooperative societies so
that they get better price of their produce through collective
sale.
(iv) Supportive policies: In addition to the above policies, the
following supportive policies have also been introduced to
develop rural markets

 Minimum Support Price (MSP): The government fixes MSP

for agricultural output. This policy assures a minimum
income to the farmers.
 Maintenance of buffer stock of wheat and rice: When
market price falls much below the MSP, then government
purchases the produce from the farmers at MSP and
maintains buffer stock.
 Distribution of foodgrains and sugar The buffer stocks are
distributed among the poor through the Public Distribution
System (PDS) at subsidised prices.

Question 50.
Differentiate between ‘Green Revolution’ and ‘Golden
Revolution’.
Answer:
Difference between ‘Green Revolution’ and ‘Golden Revolution’:

Green Revolution Golden Revolution

The introduction of High Yielding The rapid growth in the producti
Varieties (HYV) of seeds and the diverse horticultural crops such a
increased use of fertilisers, pesticides fruits, vegetables, tuber crops, fl
and irrigation facilities which led to medicinal and aromatic plants, s
substantial increase in output of cereals and plantation crops is known as
is known as the green revolution. golden revolution.
It led to increase in the productio
It led to increase in the production of rice
fruits, vegetables, flowers, arom
and wheat.
plants, spices etc.
Golden revolution made India a w
Green revolution made India self-
leader in the production of mang
sufficient in the production of foodgrains.
bananas, coconut and spices.
Green revolution provided food security Golden revolution provided nutri
and raised agricultural incomes. and sustainable livelihood option
Question 51.
Bring out the importance of animal husbandry, fisheries and
horticulture as a source of diversification. (NCERT)
Answer:
(i) Importance of animal husbandry: The following points bring
for the importance of animal husbandry as a source of
diversification

 Today, this sector alone provides alternate livelihood

options to a significant number of women and over 70
million small and marginal farmers including landless
labourers.
 Milk production of the Indian dairy sector has increased by
more than five times between 1960-2009 with the
successful implementation of ‘Operation Flood’.
 Meat, eggs, wool and other by-products are also emerging
as important productive sectors for diversification.

(ii) Importance of fisheries The water bodies consisting of sea,

oceans, rivers, lakes etc are a source of living for the fishing
community. This sector is important for the reasons
enumerated below:

 Today, toted fish production accounts for 0.8 % of the total

GDP. Kerala, Gujarat, Maharashtra and Tamil Nadu are the
major producers of marine products.
 Fishing has become a source of women empowerment.
Even though women are not involved in active fishing,
about 60% of the workforce in export marketing and 40%
in internal marketing are women.

(iii) Importance of horticulture Diverse horticultural crops such

as fruits, vegetables, tuber crops, flowers, medicinal and
aromatic plants, spices and plantation crops are grown in India.
This sector is important for the reasons enumerated below:

 These crops play a vital role in providing food and

nutrition, alongwith sustainable employment opportunities.
  During 1991-2003, ‘Golden Revolution’ took place.
Horticulture became highly productive during this period
due to planned investment and the sector emerged as a
sustainable livelihood option.
 India has emerged as a world leader in producing a variety
of fruits like mangoes, bananas, coconuts, cashew nuts
and a number of spices and is the second largest producer
of fruits and vegetables.
 Economic condition of farmers engaged in horticulture has
improved.
 Flower harvesting, nursery maintenance, hybrid seed
production and tissue culture, propagation of fruits and
flowers and food processing are highly remunerative
employment options for women in rural areas.

Question 52.
Identify the benefits and limitations of organic farming. (NCERT)
Answer:
Following are the benefits of organic farming

 Organic fanning substitutes costlier agricultural inputs

such as HYV seeds, chemical fertilisers, pesticides, etc
with locally produced organic inputs which are cheaper
and thereby generate better returns on investment for
farmers.
 Organic farming generates income through exports as the
global demand for organically grown crops is increasing.
 Organically grown food has more nutritional value than
food grown through chemical farming thus creating a
positive effect on health.
 Organic farming is appropriate for India as organic farming
is more labour intensive than conventional farming.
 Organic farming promotes soil that is teaming with life and
rich in micro nutrients which can be used for decades to
grow crops virtually year round in many parts of the world.

Following are the limitations of organic farming

 Organic farming is labour intensive. Thus, it is beneficial
only for small farmers who have abundant labour in his/her
family.
 Organic farming is very expensive, the farmer has to carry
out the transition, modify the soil structure, etc.
 Organic produce is not traded in many markets, therefore
marketing is difficult.
 Organic food prices are not stable and keep fluctuating
time to time.
 Organic farming requires a lot of time and greater
interaction between a farmer and his crop.