5. Rural Development

Introduction

Agriculture is the major source of livelihood in the rural sector. Mahatma Gandhi once said that the real progress of India did not mean simply the growth and expansion of industrial urban centres but mainly the development urban centres but mainly the development of the villages. This idea of village development being at the centre of the overall development of the nation relevant even today.

What is Rural Development?

Rural development is a comprehensive term. It essentially focuses on action for the development of areas that are lagging behind in the overall development of the village economy. Some of the areas which are challenging and need fresh inittaitves for development in rural India include

1. Development of human resources including

• Literacy, more specifically, female literacy, education and skill development
• Health, addressing both sanitation and public health

2. Land reforms

3. Development of the productive resources of each locality

4. Infrastrucutre development like electricity, irrigation, credit, marketing, transport facilities including construction of village roads and feeder roads to nearby highways, facilities for agriculture research and extension, and information dissemination

5. Special measures for alleviation of poverty and bringing about significant improvement in the living conditions of the weaker sections of the population emphasizing access to productive employment opportunities

Credit and Marketing in Rural Areas

• Credit – Growth of rural economy depends primarily on infusion of capital, from time to time, to realise higher productivity in agriculture and non-agricuture 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. a major change occurred after 1969 when India adopted social banking and multiagency approach to adequately meet the needs of rural credit. Later, the National Bank for Agriculture and Rural Development (NABARD) was set up in 1982 as an apex body to coordinate the activities of all institutions involved in the rural financing system. The Green Revolution was a harbinger of major changes in the credit system as it led to the diversification of the portfolio of rural credit towards production-oriented lending. Recently, Self-Helf Groups (henceforth SHGs) have emerged to fill the gap in the formal credit system because 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. Since some king of collateral is required, vast proportion of poor rural household were automatically out of the credit network. 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 instalments at reasonable interest rates.
• Rural Banking – a Critical appraisal – Rapid expansion of the banking system had a positive effect on rural farm and non-farm output, income and employment, especially after the green revolution – it helped farmers to avail services  and credit facilities and a variety of loans for meeting their production needs. Famines became events of the past; we have now achieved food security which is reflected in the abundant buffer stocks of grains. However, all is not well with our banking system. With the possible exception of the commercial banks, other formal institution have failed to develop a culture of deposit mobilization lending to worthwhile borrwoeres and effective loan recovery. Agriculture loan defalult rates have been chronically high. Why farmers failed to pay back loans? It is alleged that farmers are deliberately refusing to pay bank loans. What could be the reasons? Thus, the expansion and promotion of the rural banking sector has taken a backseat after reforms. To improve the situation, In recent years, all the adults are encouraged to open bank accounts as a part of a scheme known as Jan-Dhan Yojan. Those bank account holders can get Rs.1-2 lakh accidental insurance coverage and overdraft facilities for Rs.10,000 and get their wages if they get any government-related jobs and works under MNREGA; old age pension and other social security payments of the government are transferred to bank accounts. There is no need to keep minimum bank balance.

Agricultural Market System

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

1. Let us discuss four such measures that were initiated to improve the marketing aspect  the first. The first step was regulation of markets to create orderly and transparent marketing conditions. By and large, this policy benefited farmers as well as consumers. However, there is still a need to develop about 27,000 rural periodic markets as regulated market places to realise the full potential of rural markets.
2. Second component is provision of physical infrastructure facilities like roads, railways, warehouses, god owns, 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, in realizing fair prices for farmer’s products, is the third aspect of government initiative. The success of milk cooperative in transforming the social and economic landscape of Gujarat and some other parts of the country is testimony to the role of cooperatives.

Emerging Alternate Marketing Channels – It has been realized that if farmers directly sell their produce to consumers, it increases their incomes. Some examples of these channels are Apni Mandi (Punjab, Haryana and Rajasthan); Hadaspar Mandi (Pune); Rythu Bazars (vegetable and fruit markets in Andhra Pradesh and Telangana) and 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 sees and other inputs but also assured procurement of the produce at prerecorded prices.

Diversification into productive activities

1. One relates to changes in cropping pattern and the other relates to a shift of workforce from agriculture to other allied activities (livestock, poultry, fisheries etc.) and non-agriculture sector. The need for diversification arises from the fact that there is greater risk in depending exclusively on farming for livelihood. Diversification towards new areas is necessary not only to reduce the risk from agriculture sector but also to provide productive sustainable livelihood options to rural people Much of the agricultural employment activities are concentrated in the Kharif season. But during the Rabi season, in areas where there are inadequate irrigation facilities, it becomes difficult to find gainful employment.
2. Therefore expansion into other sectors is essential to provide supplementary gainful employment and in realizing higher levels of income for rural people to overcome poverty and other tribulations. Hence, there is a need to focus on allied activities, non-farm employment and other emerging alternatives fo livelihood, though there are many other options available for providing sustainable livelihoods in rural areas.
3. The dynamic sub-sectors include agro-processing industries, food processing industries, leather industry, tourism, etc. Those sectors which have the potential but seriously lack infrastructure and other support include traditional home-based industries like pottery, crafts, handlooms etc. Majority of rural women find employment in agriculture while men generally look for non-farm employment. In recent times, women have also begun looking for non-farm jobs.

• Animal Husbandry – In India, the farming community uses the mixed crop-livestock farming system – cattle, goats, fowl are the widely held species. Livestock production provides increased stability in income, food security, transport, fuel and nutrition for the family without disrupting other food-producing activities. Today, livestock sector alone provides alternate livelihood options to over 70 million small and marginal farmers including landless labourers. A significant number of women also find employment in the livestock sector.  
• Fisheries – The fishing community regards the water body as ‘mother’ or ‘provider’.The water bodies consisting of sea, oceans, rivers, lakes, natural aquatic ponds, streams etc. are, therefore, an integral and life-giving source for the fishing community. In India, after progressive increase in budgetary allocations and introduction of new technologies in fisheries and aquaculture, the development of fisheries has come a long way. Presently, fish production from inland sources contributes about 65 per cent to the total value of fish production and the balance 35 per cent comes from the marine sector (sea and oceans). Today total fish production accounts for 0.9 per cent of the total GDP. In India, West Bengal, Andhra Pradesh, Kerala, Gujarat, Maharastra and Tamil Nadu are major fish producing states.
• Horticulture – Blessed with a varying climate and soil conditions, India has adopted growing of diverse horticultural crops such as fruits, vegetable, tuber crops, flowers, medicinal and aromatic plants, spices and plantation crops. These crops play a vital role in providing food and nutrition crops. These crops play a vital role in providing food and nutrition, besides addressing employment concerns. Horticulture sector contributes nearly one-third of the value of agriculture output and six per cent of Gross Domestic Product of India.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 many farmers engaged in horticulture has improved and it has become a means of improving livelihood for many unprivileged classes.
• Other Alternate Livelihood Options – The IT has revolutionized many sectors in the Indian economy. There is broad consensus that IT can play a critical role in achieving sustainable development and food security in the twenty-first century. Governments can predict areas of food insecurity and vulnerability using appropriate information and software tools so that action can be taken to prevent or reduce the likelihood of an emergency. It also has a positive impact on the agriculture sector as it can disseminate information regarding emerging technologies and its applications, prices, weather and soil conditions for growing different crops etc.

Sustainable Development and Organic Farming

In recent years, awareness of the harmful effect  of chemical-based fertilizers and pesticides on our health is on a rise. Conventional agriculture relies heavily on chemical fertilizes and toxic pesticides etc., which enter the food supply, penetrate the water sources, harm the livestock, deplete the soil and devastate natural eco-systems. Efforts in evolving technologies which are eco-friendly are essential for sustainable development and one such technology which is eco-friendly is organic farming.

Benefits of Organic Farming – Organic agriculture offers a means to substitute costlier agricultural inputs (such as HYV seeds, chemical fertilizers, pesticides etc.) with locally produced organic inputs that are cheaper and thereby generate good returns on investment. Organic agriculture also generates income through exports as the demand for organically grown crops is on a rise. Studies across countries have shown that organically grown food has more nutritional value than chemical farming thus providing us with healthy foods. Since organic farming requires more labour input than conventional farming, India will find organic farming and attractive proposition.

Conclusion

It is clear that until and unless some spectacular changes occur, the rural sector might continue to remain backward. There is a greater need today to make rural areas more vibrant through diversification into dairying, poultry, fisheries, vegetables and fruits and linking up the rural production centres with the urban and foreign (export) markets to realise higher returns on the investments for the products.