Topics

 INTRODUCTION
 What is rural development?
 Challenges in Rural Development
 Rural credit
 Sources of rural credit
 Distress sale
 TANWA
 Agricultural Marketing System
 Agricultural Diversification
 Organic farming
Introduction
 Agriculture ,with maximum share of rural
economy ,has grown at a meagre rate of
2.7%.
 The share of agriculture sector to GDP is

decline and there has been increase in the

industrial and service sector.
 Moreover , after the economic reforms of

1991,the growth rate of agriculture sector

decline to 3% p.a.
What is rural development?
 It refers to continuous and comprehensive
socio-economic process , attempting to
improve all aspects of life.
Challenges in Rural
development
 Development of human resources including-
literacy , education and skill development ,
health ,addressing both sanitation and
public health
 Land reforms
 Development of the productive resources of

each locality
 Infrastructure development
 Special measures for poverty allievation
Rural Credit
 Growth of rural economy depends upon the
timely infusion of capital , to realise higher
productivity in Agriculture and non-
agriculture sector.
 Farmers borrow from various sources to

meet initial investment on seeds ,

fertilizers ,implements and other family
expenses of marriage ,death etc.
 So , credit is one of the important factor

which contribute to agriculture production.

Rural Credit
Short term credit: Basically
required for the purchase of inputs like
seeds, fertilizers, pesticides and
insecticides.
 Small and marginal farmers needs

this credit.
 Period ranging from 6 months to 12

months.
Rural Credit
 Medium-term Credit: Required for

(a) the purchase of machinery

(b) construction fences
(d) digging the wells.

Such loans are raised for a period ranging

between 12 months to 5 years.
Rural Credit
Long-term credit:
Required for

(a) Purchase of additional land

(b) For carrying out permanent improvements
on the existing land.

The period of such loans ranging between 5

to 20 years.
Sources of Rural credit
Non institutional Sources
• Money lenders
• Relatives
• Traders and Commission Agents
• Rich landlords

Institutional Sources
• Co-operative credits
• State Bank of India and other Commercial Banks
• Commercial bank credit
• Regional rural bank
• The Government
• NABARD
• Self Help groups
Cooperative credit
societies:
Currently cooperative account for 16 to 17
percent of rural credit flow.
These societies are to ensure:
(a) Timely and rapid flow of credit to the
farmers.
(b) Elimination of the moneylenders as credit
agencies,
(c) Spread credit facilities across all regions of
the country.
State Bank of India and Other
Commercial Banks
 The state Bank of India was set up in 1955
for the rural credit.
 Government realized that rural credit needs

could not be met with the cooperative

societies ,commercial banks should play an
important role.
 In 1969 ,commercial banks were

nationalised .
Regional Rural Banks and Land
Development Banks
 These were set up to promote credit
supplies in the remote and backward areas.
 These banks operate at the district level

and are for the weaker section of the rural

population.
NABARD
 An apex institution for the rural credit.
 Main functions are:

1) To serve as an apex funding agency for the

institution providing credit in the rural areas.
2) To take appropriate measures to improve
the credit delivery system.
3) To coordinate the rural financing structure of
all credit institutions.
4) To undertake monitoring and evaluation of
projects refinanced by it.
SHGS and micro financed
 Promotes saving habits among the poor
household.
 Small savings are mobilised by the SHGs

and offered as credit to its different

members depending on their need.
 Credit is offered without any security and at

the moderate rate of interest.

 Also known as Micro credit programme.
Distress sale
 Refers to the situation when farmers are
compelled to sell their produce immediately
after the harvest, no matter how low the
market price is.
 The compulsion to sell arise because (i) the

farmers need immediate cash to pay off

their debt
 (ii) They lack storage facilities or the cost of

storage is high.
Critical Appraisal of Rural
Banking
 Insufficiency
 Inadequate coverage of institution sources
 Inadequate amount of Sanction
 Less attention to poor or marginal farmers
 Growing overdues
TANWA
 It induces women to participate in raising
agriculture productivity and family income.
 Women are forming Farm Women’s Group,

like SHG.
 Many other Farm Women’s Groups are

creating savings in their group by functioning

like mini banks through a micro-credit
system.
 With the accumulated savings ,they promote

small-scale activities .
Agriculture Marketing
System
 It is a process that involves assembling ,
storage , processing, transportation,
packaging, grading and distribution of
different agriculture commodities across the
country.
Problems faced by farmers
 Manipulation by Big traders

 Lack of market information

 Lack of storage facilities

Challenges of Agricultural
Marketing
1) Gathering the produce after harvesting
2) Process the produce
3) Grading the produce according to their
quality
4) Packaging the produce according to the
buyers preference
5) Storing the produce for future sale.
6) Selling the produce when price is
lucrative.
Measures to improve
Agricultural Marketing
 1. Regulated Markets

 2. Infrastructural facilities

 3. Cooperative Marketing
Measures to improve
Agricultural Marketing
 4. Different policy instruments

Minimum support price

Maintenance of Buffer stocks

Public distribution system

Alternative marketing
channels
 Direct sale by the farmers to the
consumers.

 Big Bazar

 Apni Mandi Punjab

 Rythu Bazaar Andhra Pradesh

Alternative marketing
channels
 Uzhavar Sandies Tamil nadu:

 Reliance Fresh
Agriculture Diversification
 Refers to the reallocation of some of farm’s productive
resource into new activities or crop reduce market
risks.
 Has two aspects:

1. Diversification of crop production:

• Implies production of variety of crops rather than one

specialised crop.
• Implies a shift from single-cropping system to multi-

cropping system.
• Choice of cropping pattern in accordance to the price

structure in the market.

• Minimise the market risk due to price fluctuation.
• Minimise risk due to monsoon failure.
Agriculture Diversification
2)Diversification of Production Activity:
Implies a shift from crop farming to other
areas of production activity.
Raises income as well as stabiles it.
Animal Husbandry
 Also called livestock farming.
 Cattles, goats , fowls are the widely held animals.
 Increased stability in income , food security ,
transport , fuel and nutrition for the family without
disrupting other food-procuring activities.
 Poultry accounts for the largest share with 58 percent
followed by others.
 Camels , asses , horses , ponies and mules are the
lowest rung.
 Livestock sector provides alternate livelihood options
to over 70 million small farmers , including landless
laborers .
 Women also find employment in the livestock sector.
Dairying
 It involves breeding , raising and utilisation
of dairy animals for the production of milk
and the various dairy products processed
from it.
 Business of producing , storing and

distributing milk.
 Due to Operation Flood , India ranks first in

the world in milk production.

 Meat , eggs,wool and other by-products are

also emerging .
Operation flood
 Operation flood was started by National
Dairy Development Bank in 1970 under the
expert guidance of then chairman Dr.
Verghese Kurien.
 All farmer pool their milk produce according

to dfferent grades and same is processed

and marketed to urban centre.
 The farmers are assured to get fair price

and income.
 Gujrat state
Fisheries
 Refers to the occupation devoted to the catching ,
processing or selling of fish and other aquatic
animals.
 Important points:

1. Fishing community regards water body as mother.

2. 64% contribution to the total fish production and
36% comes from the marine sector.
3. Total fish production accounts 0.8% of GDP in
India.
4. Maharashtra , West Bengal, Andhra Pradesh,
Kerela , Gujarat and Tamil Nadu
5. Largest workers are poor.
Horticulture
 Refers to the science or art of cultivating fruits ,
vegetables , tuber crops , flowers, medicinal
plants , spices and plantation crops.
 Contributes one third of agriculture output and
6% of GDP in India.
 World leader in producing of fruits, like
mangoes , bananas , coconuts, cashew nuts
and number of spices.
 Improved economic condition of many farmers.
 Great scope for women employment.
Information Technology
 Refers to the branch of engineering
That deals with the use of computers and telecommunications to retrieve and store and
transmit information.
Through appropriate information and software tools, government has been able to
predict areas of food insecurity and vulnerability.

It also has a positive impact 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
 In october , 2014 The government of India introduced a new
scheme called Saansad Adarsh Gram Yojna [SAGY].

 Under this scheme, members of India parliament need to identify

and develop one village from their constitiuencies
 To begin with , MPs can develop one village can have as a model
village by 2016 and two more by 2019 covering over 2500 villages
in India.
 According to the scheme the village can have a population of
3000-5000 in the plains and 1000-3000 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 activies and built infrastructure in
areas of health, nutrition and education.
ORGANIC FARMING
&
SUSTAINABLE
DEVELOPMENT
Organic Farming
 System of farming that relies upon the
organic inputs for cultivation.
 Animal manures and composts are the basic

organic inputs.
 Discard the use of chemical inputs.
Why organic farming?

 Discards the use of Non-renewable

Resources
 Environment friendly
 Sustains soil fertility
 Healthier and tastier food
 Inexpensive technology for the small and

marginal farmers
Challenges before organic
farming
 Less popular
 Less of infrastructure and marketing

facilities
 Low yield
 Shorter food life
 Limited choice of life
THANK YOU