CBSE Class 11 Economics Rural Development Worksheet

CBSE Class 11 Economics Worksheet - Rural Development - Practice worksheets for CBSE students. Prepared by teachers of the best CBSE schools in India.

RURAL DEVELOPMENT

Rural development means a plan of action for the development of rural areas which are lagging behind in socio economic development
The key issues in Rural Development
➢ Development of human resource including literacy more specifically female literacy, education and skill development
➢ Land reforms
➢ Development of the productive resources of each locality
➢ Infrastructural development
➢ Special measures for alleviation of poverty

Importance of credit in rural development
➢ Growth of rural economy depends primarily on infusion of capital, from time to time, to realize higher productivity in agriculture and non-agriculture sectors
➢ As the time gestation between crop sowing and realization of income after production is quite long, farmers borrow from various sources to meet their initial investment on seeds, fertilizers, implements, and other family expenses of marriage, death religious ceremonies etc.

Sources of rural credit
Sources of rural or agricultural credit are broadly classified as
i. Non- institutional
ii. Institutional

Non-institutional sources- This includes (i) land lords (ii)village traders and (iii) money lenders are three important source of non-institutional rural credit in India. Traditionally, most credit needs of the farmers were met through these sources. They charge high rate of interest
Institutional sources- The institutional sources include (i) government (ii) cooperatives, (iii) commercial banks and (iv) the regional rural banks. Presently the 66% of rural credits are met by institutional sources

Brief description of some important institutional agencies offering rural credit in India
1. Cooperative credit societies - The cooperative credit societies provide adequate credit to the farmers at reasonable rate of interest. These societies also provide guidance in diverse agricultural operations with a view to raising productivity. Currently cooperatives account for16-17% of rural credit flow
2. Commercial banks- The commercial banks like SBI is also focus on rural credit. After the nationalization of commercial banks in 1969, they were directed to offer credit directly
3. Regional rural banks and land development banks- Regional Rural Banks and Land development banks were set up to promote credit supplies, particularly in the remote areas and backward districts. These banks operate at the district level and are under obligation to focus on credit needs of weaker sections of the rural population
4. National Bank for Agricultural and Rural Development (NABARD)- NABARD is an apex institution handling policy, planning and operations in the field of rural credit and related economic activities. It was set up in 1982. Its main functions are
➢ To serve as an apex funding agency for the institutions providing rural credit
➢ To take appropriate measures to improve credit delivery system
➢ To coordinate the rural financing activities of all credit institutions and maintain liaison with Government of India, RBI, and other national level institutions concerned with policy formulation

Rural banking or credit system – a critical evaluation

Positive effects-
➢ Rapid expansion of the rural banking system had a positive effect on rural farm and non-farm output, income and employment, especially after green revolution-it helped farmers to avail services and credit facilities and variety of loans for meeting their production needs
➢ We have now achieved food security which is reflected in the abundant buffer stocks of grains

Limitations/Drawbacks
➢ Except commercial banks, other formal institutions have failed to develop a culture of deposit mobilization- lending to worthwhile borrowers and effective loan recovery
➢ Agriculture loan default rates have been chronically high. It is alleged that farmers are deliberately refusing to pay back loans.

Suggestions to improve rural credit system
➢ Banks need to change their approach from just being lenders to building up relationship banking with the borrowers
➢ Inculcating the habit of thrift and efficient utilization of financial resources needs to be enhanced among the farmers too.

Role of Self-Help Groups (micro credit) in meeting credit requirements of poor
➢ Self-help groups is a small group of 15-20 people formed to mutually help each other. Self-Help groups help in promoting self-employment, credit awareness and saving. Banks in India support SHGs by means of bank linkage programme
➢ The SHGs promote thrift in small proportions by a minimum contribution from each member
➢ From the pooled money credit is given to the needy members to be repayable in small installments at reasonable interest rates
➢ SHGs have helped in the empowerment of women

Limitation- It is alleged that the borrowings are mainly confined to consumption purposes rather than productive investment.
Kudumbashree is a women oriented community based poverty reduction programme being implemented in Kerala. In 1995, a thrift and credit society was started as a small saving bank for poor women with the objective to encourage savings. The thrift and credit societies mobilized Rs.1 crore as thrift saving. These societies have been acclaimed as the largest informal banks in Asia in terms of participation and savings mobilized
Agricultural marketing.
Agricultural marketing is a process that involves the assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country.

Some obstacles that hinder the mechanism of agricultural marketing
➢ Prior to independence, farmers while selling their produce to traders, suffered from faulty weighing and manipulation of accounts.
➢ Farmers who did not have the required information on prices prevailing in the markets were often forced to sell at lower prices.
➢ They also did not have proper storage facilities to keep back their produce for selling later at a better price.

Measures taken by the government to improve agricultural marketing
1. Regulation of markets- The first step was to create orderly and transparent marketing conditions. By and large this policy benefited farmers as well as consumers.
2. Provision of physical infrastructure- Second component is provision of physical infrastructure facilities like roads, railways, warehouses, godowns, cold storage and processing units.
3. Cooperative marketing- Cooperative marketing, in realizing fair prices for farmer’s product is the third aspect of government initiatives. The success of milk cooperatives in Gujarat is the testimony to the role of cooperatives.
4. Policy instruments- The fourth element is the policy instruments like:
a. Assurance of minimum support prices for agricultural products
b. Maintenance of buffer stocks of wheat and rice by Food Corporation of India
c. Distribution of food grains and sugar through Public Distribution System

Drawbacks of measures taken to improve agricultural marketing
➢ There is still need to develop about 27000 rural periodic markets as regulated market places to realize the full potential of rural markets
➢ The current infrastructure facilities are quite inadequate to meet the growing demand and need to be improved
➢ Despite government intervention, private trade dominates agricultural markets

Alternate marketing channels for agriculture marketing

It has been realized that if farmers directly sell their produce to consumers, it increases their income. Some examples are
• Apni Mandi (Punjab, Haryana, Rajasthan)
• Hadaspar Mandi (Pune)
• Rythu Bazars (Andhra Pradesh and Telangana)
• Uzhavar Sandies (Tamil Nadu)
Agricultural Diversification- Agricultural diversification refers to the re- allocation of some of farm productive resources into new activities or crops reducing market risk

Agricultural diversification includes two aspects
➢ Change in cropping pattern
➢ Shift of workforce from agriculture to other allied activities
Need of agricultural diversification- It is essential for sustainable livelihoods
➢ The need for diversification arises from the fact that there is greater risk in depending exclusively on farming for livelihood
➢ It is necessary to reduce risk from agriculture sector and also to provide productive sustainable livelihood options to rural people
➢ As many agricultural employment activities are concentrated in Kharif season only, expansion into other sectors is essential to provide supplementary gainful employment and in realizing higher levels of income for rural people to overcome poverty

Role of non-farm employment in providing rural diversification

Non-farm sectors have the following subsectors:
1.The dynamic sub-sectors that permit healthy growth: The dynamic subsectors include agro processing industries, food processing industries, leather industry, tourism, etc.
2.Other sectors are in subsistence, low productivity propositions: Those sectors which have potential but seriously lack infrastructure and other support include traditional home based industries like pottery, crafts, handlooms etc.
Diversification of productive activities- Finding options of sustainable livelihood (other than crop farming an important emerging challenge of rural development in India. Some possible options are discussed below:

1. Animal husbandry
a) Livestock production provides increased stability in income, food security, transport, fuel and nutrition for the family without disrupting other food producing activities.
b) Today livestock sector alone provides alternate livelihood options to over 70 million small and marginal farmers including landless labour.
c) A significant number of women also find employment in the livestock sector.
d) Poultry accounts for the largest share with 58 percent of livestock in India.
e) Though in terms of numbers our livestock population is quite impressive but its productivity is quite low as compared to other countries.

Measures to increase livestock productivity
a) It requires improved technology and promotion of good breeds of animals to enhance productivity
b) Improved veterinary care and credit facilities to small and marginal farmers and landless labour would enhance sustainable livelihood options through livestock production
Performance of the Indian Dairy sector
➢ Milk production in the country has increased by more than 8 times between 1951-2014. This can be attributed mainly due to successful implementation of Operation Flood or white revolution ((The revolution associated with sharp increase in milk production in the country)
➢ Operation Flood is a system whereby all the farmers can pool their milk produced according to different grading and the same is processed and marketed to urban centers through cooperatives
➢ In this system the farmers are assured of a fair price and income from the supply of milk to urban markets

2.Fisheries
➢ Presently fish production from inland sources contribute about 64 % to the total value of fish production and the balance 36% comes from the marine sector
➢ Even though women are not involved in active fishing, about 60 % workforce in export marketing and 40 % in internal marketing are women
➢ Total fish production accounts for 0.8 per cent of GDP
➢ In India West Bengal, Andhra Pradesh, Kerala, Gujarat, and Tamil Nadu are major fish producing states

Problems faced by fishery sector
• A large share of fish worker families are poor.
• Rampant underemployment, low per capita earnings, absence of mobility of labour to other sectors and a high rate of illiteracy and indebtedness are some of the major problems fishing communities face today
Suggestions to improve Fishery sector
• There is need to increase credit facilities through cooperatives and SHGs for fisherwomen to meet the working capital requirements for marketing
• Problems related to over-fishing and pollution need to be regulated and controlled.

3. Horticulture
• Blessed with a varying climate and soil conditions, India has adopted growing of diverse horticultural crops such as 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 concern.
• Horticulture has emerged as a successful sustainable livelihood option. It contributes nearly one –third of the value of agriculture output and 6 per cent of GDP of India.
• India has emerged as a world leader in producing variety of fruits like mangoes, bananas, coconuts cashew nuts and a number of spices and is the second largest producer of fruits and vegetables.
Requirements for enhancing the role of horticulture
• Investment in infrastructure like machinery
• Cold storage system
• Marketing linkages
• Small- scale processing units
• Technology improvement and dissemination

TANWA-Tamil Nadu Women in Agriculture is a project launched in Tamil Nadu with a view to training women in diverse techniques of learning. This is expected to raise employment of women as well as their income through higher levels of productivity. Having required specialized skills through training, women are forming farm women’s group. These group function like SHGs and promote cottage and household production activity using their own pool of funds.
Role of Information Technology (IT) achieving sustainable development and food security
(i) Predicting areas of food security- Government can predict areas of food insecurity and vulnerability using appropriate information and software tools so that action can be taken to prevent or reduce likelihood of an emergency
(ii) Disseminate information- IT can disseminate information regarding emerging technologies and applications, prices, weather and soil conditions for growing different crops
(iii) Releasing the creative potential and knowledge- IT can act as a tool for releasing the creative potential and knowledge embedded in the society
(iv) Employment generation- IT also has potential of employment generation in rural areas

Organic Farming- Organic farming is an ecofriendly 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

Benefits of organic farming
(i) Helps sustainable development of agriculture- Since organic Farming is pesticide free and produced in an environmentally sustainable way it promotes sustainable agriculture
(ii) Offers a means to substitute costlier agricultural inputs- Locally produced organic input that are cheaper substitute costlier inputs and thereby generate good return on investment
(iii) Generates income through exports- Organic agriculture generates income through exports as the demand for organically grown crops is on rise
(iv) More nutritional value- Organically grown food has more nutritional value than chemical farming thus providing us with healthy foods
(v) Generates more employment- Since organic farming requires more labour input than conventional farming, India will find organic farming an attractive proposition

Problems /Limitations of organic farming
(i) The yield from organic farming are less than modern agricultural farming in the initial years
(ii) Organic produce may also have more blemishes and a shorter shelf life than sprayed produce
(iii)Choice in production of off-season crops is quite limited in organic farming
(iv) Marketing of organically produced good is another problem

Suggestions to promote organic farming
(i) Creating awareness and willingness on the part of farmers to adapt to new technology
(ii) Provision of adequate infrastructure
(iii) Problems of marketing the products need to be addressed
(iv) Appropriate agricultural policy

Objective Type questions

Question. Which one of the following is not a non-institutional source of credit
(a) money lenders
(b) Relatives
(c) Traders
(d) Land Development Bank
Answer. D

Question. A process that involves the assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country is known as
(a) Agricultural diversification
(b) Agricultural Banking
(c) Agricultural management
(d) Agricultural marketing
Answer. D

Question. Institutional sources of agricultural credit are :
(a) Land development banks
(b) NABARD
(c) Self-help group
(d) All of these
Answer : D

Question. Short term credit is needed for
(a) Period of 15 months
(b) Period 5 years
(c) Period of 15 years
(d) Period of 20 years
Answer : A

Question. The farming which relies on naturally occurring ecological process and biodiversity:
(a) Organic farming
(b) Conventional agriculture
(c) (a) and (b)
(d) None of the above
Answer : A

Question. SHG stands for :
(a) Self Human Group
(b) Sufficient Humidity Growth
(c) Self Help Group
(d) Self Human Growth
Answer : A

Question. Organic farming is needed because it
(a) Maintains and enhances the ecological balance
(b) is free from chemical based fertilizers
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer : C

Question. Which is related to microfinance:
(a) Self Help Group
(b) NABARD
(c) Both
(d) None
Answer : C

Question. Credit needs related to constructing fences and digging wells are fulfilled by:
(a) Short term credit
(b) Medium term credit
(c) Long term credit
(d) None of the above
Answer : B

Question. Which of the following is true about organic farming?
(a) Organically grown food is more healthier and tastier
(b) Yields in organic farming are lower than in chemical farming
(c) It adversely effects the fertility of the soil
(d) It is quite expensive method of farming
Answer : A

Question. Identify which of the following statement is not correct with Self Help Groups?
(a) Group members can borrow funds at nominal rate of interest
(b) Borrowing in micro credit system are mainly taken for consumption purpose
(c) Micro credit system has helped men in rural areas to become self-dependent
(d) Formal credit system has failed to provide credit to the needy people in the rural areas
Answer. C

Question. Identify the incorrect statement from the following.
(a) Diversification into other sector is essential to enable rural people to overcome poverty
(b) Diversification is an essential component because there is greater risk in depending exclusively on farming for livelihood
(c) Diversification provides supplementary gainful employment
(d) Diversification activities are not beneficial
Answer. D

Question. -------------- is the portion of agricultural produce which is sold in the market by the farmers, after meeting their self-consumption requirements
(a) Trade surplus
(b) Marketable surplus
(c) producer surplus
(d) Consumer surplus
Answer. B

Question. National Bank for Agriculture and Rural Development(NABARD) was set up in 1982 as a/the -------------- body to coordinate the activities of all institutions involved in the rural financing system
(a) Cooperative
(b) apex
(c) micro credit
(d) private
Answer. B

Question. The scheme of micro finance is extended through -------------------------
(a) Self-help Groups
(b) Land Development Banks
(c) NABARD
(d) Regional Rural Banks
Answer. A

Question. Name the which is held as a success story in efficient implementation of milk cooperative
(a) Maharashtra
(b) Karnataka
(c) Gujarat
(d) Andhra Pradesh
Answer. C

Question. What is the name for the vegetable and fruit market in Andhra Pradesh
(a) Apni Mandi
(b) Hadaspar Mandi
(c) Rythu Bazars
(d) Uzhavar Bazars
Answer. C

Question. ‘If India has to make real progress she has to develop its rural areas’ which of the following is the incorrect reason for the above mentioned statement?
(a) Approximately one-third population of rural India still lives in abject poverty
(b) More than 50 percent India’s population depends on agriculture for their livelihood
(c) Growth rate in the Indian Agriculture sector has been quite lower than of other sector
(d) Majority of rural people have access to the basic necessities of life
Answer. D

Question. The need for organic farming arises due to which of the following reasons
(a) It is environment friendly
(b) It sustains soil fertility
(c) Both (a) and (b)
(d) None of these
Answer. C

Question. Which of the following is not related to agriculture marketing?
(a) Storage (b) Preservation (c) processing (d) Use of chemical fertilizers .
In the following questions, Assertion (A) and reason (R) have been put forward.
Read both the statements carefully and choose the correct alternative Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not he correct explanation of Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
Answer. D

Question. Assertion (A) After independence there was an expansion in farm and non-farm output, income and employment
Reason (R) Rural banking has helped farmers to avail benefits of credit facilities for meeting their needs
Answer. A

Question. Assertion (A) Self Help Groups have emerged to fill the gap in the formal credit system
Reason (R) The formal credit delivery mechanism has not only proven inadequate but has also not been fully integrated into the overall rural social and community development
Answer. A

Question. Assertion (A) Cooperative marketing is a significant progressive step in the context of agricultural market system
Reason (R) Effective coordination between marketing cooperatives and processing cooperatives is the key characteristic of Indian system of cooperative marketing.
Answer. C

Question. Assertion (A) Since independence, the economic condition of many farmers across India has improved as they have adopted horticulture as a secondary source of income
Reason (R) Varying climatic and soil conditions have given India an added advantage to be the producer of diverse horticultural crops.
Answer. A

Question. Read the following statement carefully and choose the correct alternative given below:
Statement 1: The emergence of SHGs ensured the reduction in the fissures of the formal credit system
Statement 2: The borrowing from SHGs mainly confined to consumption purposes by its members
(a) Both the statements are true
(b) Both the statements are false
(c) Statement 1 is true and statement 2 is false
(d) Statement 2 is true and statement 1 is false
Answer. A

Question. The -----------was a harbinger of major changes in the credit system
Answer. Green revolution

Question. NABARD was established in the year --------------------
Answer. 1982

Question. KUDUMBASREE is a micro finance programme being implemented in the state -------------------
Answer. Kerala

CASE STUDY
Prior to independence, farmers, while selling their produce to traders, suffered from faulty weighing and manipulation of accounts. Farmers who did not have the required information on prices prevailing in markets were often forced to sell at low prices. They also did not have proper storage facilities to keep back their produce for selling later at a better price. Measures that were initiated to improve the marketing aspect.

Question:

Question. Government improve agriculture marketing system through (Control/Regulate)
Answer. Regulate

Question. Agricultural marketing is a process that involves the
(a) Transportation
(b) Packaging
(c) Grading
(d) All of these
Answer. (d) All of these

Question. The first step was regulation of markets to create orderly and transparent marketing conditions (True/Falls)
Answer. True

Short Answer questions

Question. Discuss the importance of credit in rural development.
Answer. Growth of rural economy depends primarily on infusion of capital, from time to time, to realize higher productivity in agriculture and non-agriculture sectors
As the time gestation between crop sowing and realization of income after production is quite long, farmers borrow from various sources to meet their initial investment on seeds, fertilizers, implements, and other family expenses of marriage, death religious ceremonies etc.

Question. ‘The prime minister urged to increase the rural income by increasing non-farm activities’. Explain how non-farm activities can lead to rise in income of people in rural sector?
Answer. It is important to increase employment and income in non-farm sector because agriculture is already overcrowded and cannot offer additional employment. These opportunities will enable the farmers to earn from alternative non-farm occupation such as food processing industries, leather industries, tourism pottery, crafts and handlooms. Promotion of non-farm activities help farmers in acquiring new skills, explore alternative sources of revenue and raise income. Moreover, since non-farm activities provide employment opportunity for the whole year, it will help in eradicating seasonal poverty from rural area

Question. Horticulture is an important sector for potential diversification and value addition in agriculture’ Comment.
Answer. Horticulture is an important sector for potential diversification and value addition in agriculture due to the following reasons
• India has emerged as a world leader in producing variety of fruits, vegetables and number of spices
• Horticulture has improved economic condition of many farmers and has become a means of improving livelihood for many unprivileged classes.
• Flower harvesting, nursery maintenance, etc. are highly remunerative employment option for women in rural areas.

Question. Differentiate between institutional credit and non-institutional credit
Answer. Institutional credit                                 Non-institutional credit
a Institutional credit is provided             Non –institutional credit is provided
   by banks and cooperatives                 by money lenders and traders
b It is mainly provided                          It is provided both for productive and
   for productive purposes                     non-productive purposes
c Since it is regulated by RBI,               Non- institutional credit is generally
   the rate of interest remains low          very expensive because it is not regulated by RBI

Question. Mention some obstacles that hinder the mechanism of agricultural marketing.
Answer. 1) Prior to independence, farmers while selling their produce to traders, suffered from faulty weighing and manipulation of accounts.
2) Farmers who did not have the required information on prices prevailing in the markets were often forced to sell at lower prices.
3) They also did not have proper storage facilities to keep back their produce for selling later at a better price.

Question.Mention the drawbacks of Rural credit system in India. Suggest some measures to improve rural credit system.
Answer. 1) Except commercial banks, other formal institutions have failed to develop a culture of deposit mobilization- lending to worthwhile borrowers and effective loan recovery
2) Agriculture loan default rates have been chronically high. It is alleged that farmers are deliberately refusing to pay back loans.
Suggestions
1) Banks need to change their approach from just being lenders to building up relationship banking with the borrowers
2) Inculcating the habit of thrift and efficient utilization of financial resources needs to be enhanced among the farmers too.

Question. Explain the importance of livestock production
Answer. 1) Livestock production provides increased stability in income, food security, transport, fuel and nutrition for the family without disrupting other food producing activities.
2) Today livestock sector alone provides alternate livelihood options to over 70 million small and marginal farmers including landless labourers.
3) A significant number of women also find employment in the livestock sector

Question. Why is agricultural diversification essential for sustainable livelihoods?
Answer. 1) The need for diversification arises from the fact that there is greater risk in depending exclusively on farming for livelihood
2) It is necessary to reduce risk from agriculture sector and also to provide productive sustainable livelihood options to rural people
3) As many agricultural employment activities are concentrated in Kharif season only, expansion into other sectors is essential to provide supplementary gainful employment and in realizing higher levels of income for rural people to overcome poverty

Question. ‘Information technology plays a very important role in achieving sustainable development and food security’ Comment
Answer. (i) Predicting areas of food security- Government can predict areas of food insecurity and vulnerability using appropriate information and software tools so that action can be taken to prevent or reduce likelihood of an emergency
(ii) Disseminate information- IT can disseminate information regarding emerging technologies and applications, prices, weather and soil conditions for growing different crops
(iii) Releasing the creative potential and knowledge- IT can act as a tool for releasing the creative potential and knowledge embedded in the society
(iv) Employment generation- IT also has potential of employment generation in rural areas

Question. Explain the role of micro credit in meeting credit requirements of the poor.
Answer. Micro credit has played very important role in meeting credit requirements of the poor in the following ways
a) The Self Help Groups promote thrift in small proportions by a minimum contribution from each member. From the pooled money, credit is given to the needy members to be repayable in small instalments at reasonable interest rates
b) Poor household do not have collateral required by formal credit institutions for providing credit. Such collateral is not required by micro- credit institutions.

Question. The measures taken by government to improve agricultural marketing was not sufficient. Support the statements with valid points
Answer. (i) The current infrastructure facilities are quite inadequate to meet the growing demand and need to be improved.
(ii) Despite government intervention private trade (by money lenders, rural political elites, big merchants and rich farmers) predominate agricultural markets.

LONG ANSWER TYPE QUESTIONS

Question. Briefly discuss the various measures adopted by the government of India to improve the system of agricultural marketing.
Answer. 1) Regulation of markets- The first step was to create orderly and transparent marketing conditions. By and large this policy benefited farmers as well as consumers.
2) Provision of physical infrastructure- Second component is provision of physical infrastructure facilities like roads, railways, warehouses, godowns, cold storage and processing units
3) Cooperative marketing- Cooperative marketing, in realizing fair prices for farmer’s product is the third aspect of government initiatives. The success of milk cooperatives in Gujarat is the testimony to the role of cooperatives
4) Policy instruments- The fourth element is the policy instruments like:
a. Assurance of minimum support prices for agricultural products
b. Maintenance of buffer stocks of wheat and rice by Food Corporation of India
c. Distribution of food grains and sugar through Public Distribution System

Question. Discuss various benefits and limitations of organic farming.
Answer. Benefits of organic farming
1) Helps sustainable development of agriculture- Since organic Farming is pesticide free and produced in an environmentally sustainable way it promotes sustainable agriculture.
2) Offers a means to substitute costlier agricultural inputs- Locally produced organic input that are cheaper substitute costlier inputs and thereby generate good return on investment
3) Generates income through exports- Organic agriculture generates income through exports as the demand for organically grown crops is on rise
4) More nutritional value- Organically grown food has more nutritional value than chemical farming thus providing us with healthy foods
5) Generates more employment- Since organic farming requires more labour input than conventional farming, India will find organic farming an attractive proposition
Problems /Limitations of organic farming
1) The yield from organic farming are less than modern agricultural farming in the initial years
2) Organic produce may also have more blemishes and a shorter shelf life than sprayed produce
3) Choice in production of off-season crops is quite limited in organic farming
4) Marketing of organically produced good is another problem

Question. Discuss the key issues of action plan for rural development in India.
Or
Explain any three challenges facing rural development in India.
Answer. The following are the key issues of action plan for rural development in India
1) Land reforms- Land reforms are measures to bring about changes in the ownership of land holdings to encourage equity. Land reforms providing a land system conducive for agricultural development should not only be enacted but also be faithfully implemented
2) Poverty Alleviation- Action plan for rural development includes high priority to poverty alleviation in the rural areas. For the overall development of each locality and in the rural areas special schemes like MNREGA should be launched
3) Human Capital Formation: Human capital formation is still a major task in rural areas of the Indian Economy. India has a huge pool of manpower resources but the available man power lacks basic skill and training. Therefore, in order to make the available resources strong and efficient, the action plan for rural development should consider the challenging issues like literacy health care, education, on the job training, etc.

CASE STUDY QUESTIONS

Question. Read the following News report and Answer the following questions on the basis of same
Answer. The central government will spend Rs. 9800 crores on livestock development over the next five years in a bid to leverage almost Rs. 55000 crore of outside investment into the Animal Husbandry Sector. It would do this by merging a slew of schemes of the Department of Animal Husbandry and Dairying into three main programmes, focused on indigenous cows and dairy development, livestock health and infrastructure development, an official statement said. The Cabinet Committee on Economic Affairs approved the implementation of the special livestock sector package by revising and realigning the various components of the existing schemes in order to boost growth and make animal husbandry more remunerative for the 10 crore farmers engaged in it.

Question. Livestock production provides ------------- for the family without disrupting other food producing activities
(a) Increased stability in income
(b) food security
(c) transport and fuel
(d) all of these
Answer. (d) all of these

Question. The central bank undertakes to invest on livestock development in ----------- (horticulture/ animal husbandry) sector
Answer. animal husbandry

Question. State one limitation of livestock sector in India
Answer. The livestock productivity is quite low as compared to other countries

2.Read the following passage and Answer following questions on the same

Prior to independence, farmers, while selling their produce to traders, suffered from faulty weighing and manipulation of accounts. Farmers who did not have the required information on prices prevailing in market where often sourced to sell at lower prices. They also did not have proper storage facilities to keep back their produce for selling later at a better price. Do you know that even today, more than 10 percent of goods produced in farms are wasted due to lack of storage? Therefore, state intervention became necessary to regulate the activities of the private traders.
The first step was regulation of markets to create orderly and transparent marketing conditions. Second component is provision of physical infrastructure facilities like roads railways warehouses, cold storages, and processing units. The next element is the policy instruments like (1) assurance of minimum support price (2) Maintenance of buffer stocks of wheat and rice by Food corporation of India (3) Distribution of food grains through PDS.

Question. Farmers depend on money lenders and traders, who charge ------------- rate of interest
(a) High
(b) low
(c) moderate
(d) zero
Answer: (a) high

Question. The aim of ------------ marketing is to realize fair price for farmers product
(a) financial
(b) agricultural
(c) Cooperative
(d) personalized
Answer: (c) cooperative

Question. -------- operates through a network of ration shops and fair price shops in which essential commodities are offered at a price below the market price to the weaker section of society
(a) FCI
(b) MSP
(c) NABARD
(d) PDS
Answer: (d) PDS

Question. Name some alternative marketing channels for agricultural marketing
Answer: Apni Mandi (Punjab, Haryana, Rajasthan)
Hadaspar Mandi (Pune)

Q1. What is Rural Development?
Q2. What are the issues in rural Development?
Q3. Enumerate the sources of rural credit. (Use diagram).
Q4. Distinguish between short term & medium term loans
Q5. Explain the role of the following in rural credit:
(a) Non-institutional agencies
(b) Cooperatives
(c) Commercial Banks
(d) NABARD
Q6. Discuss weaknesses of institutional agencies & give suggestions to improve rural credit system.
Q7. What is meant by an efficient marketing system?
Q8. What is the need for an efficient marketing system?
Q9. What are the weaknesses of the present marketing system?
Q10. Enumerate any 6 measures to improve the marketing system?
Q11. Write a short mote on :The role of cooperatives in Rural India .
Q12. What do you mean by agricultural diversifications? What are its advantages.?