ABOUT ME NAME- APURVA JHA GRADUATED IN ECONOMICS. MATHS AND STATISTICS MASTERS IN APPLIED ECONOMICS FROM CHRIST UNIVERSITY BANGALORE HOBBIES- WATCHING MOVIES, READING BO0KS, COOKING RATE, REVIEW AND RECOMMEND
CHAPTER 6 RURAL DEVELOPMENT
OBJECTIVES Rural development and the major issues associated with it How crucial the rural development is for India's overall development Critical role of credit and marketing systems in rural development Importance of diversification of productive activities to sustain livelihoods Significance of organic farming in sustainable development
RURAL DEVELOPMENT ???? . Focuses on the development of areas that are lagging behind in the overall development of village economy . Some of these areas are i. Development of human resources Literacy, education and skill development Heath (addresses both sanitation and public health) ii. Land Reforms iii. Development of productive resources iv. Infrastructure development (Electricity, irrigation credit, marketing and transport facilities, agricultural research) Special measures for alleviation of poverty. v.
CREDIT IN RURAL AREAS . Growth of rural economy depends on capital to achieve higher productivity in agricultural and non-agricultural sectors. . Long time gap between crop sowing and realisation of income . Farmers have to borrow for both agricultural and non agricultural activities. During the Time of Independence, moneylenders and traders used to lend to the farmers Debt Trap 1969, India adopted social banking (SHGs) and multi-agency (commercial banks, regional rural banks, cooperatives and land development banks) 1972, NABARD> to coordinate the activities of all institutions involved in the rural financing system Green Revolution- diversification of the portfolio of rural credit towards production- oriented lending.
MICRO CREDIT PROGRAMMES 2 ways in which SHGs work > SHGs collect minimum contribution from each member . Pooled money credit is given to the needy members (low interest rates, small instalments) Banks provide loans to SHGs SHGs decide whom to lend this money 2003 More than 7 lakhs SHGs had been credit linked
RURAL BANKING CRITICAL APPRAISAL POSITIVE IMPACT Expansion of banking system had a positive effect on rural farm and non farm output, income and employment Green Revolution Variety of loans were provided Food security LIMITATIONS Banks have failed to develop a culture of deposit mobilisation Default rates are high Farmers are deliberately refusing to pay back loans SUGGESTIONS . Build relationship with the borrower . Saving habits and efficient utilisation of financial resources
AGRICULTURAL MARKET SYSTEM Measures to improve marketing aspect i. Regulating markets to create orderly and transparent marketing condition i. Provide physical infrastructure ii. Cooperative marketing(No middlemen) iv. Policy instruments Assurance of MSP for agricultural products Buffer stocks of wheat and rice by FCI Distribution of food grains and sugar through PDS
ALTERNATE MARKETING CHANNELS FARMERS CONSUMER Increase Income Apni Mandi (Punjab, Haryana, Rajasthan) Hadaspur Mandi (Pune) Rythu Bazar (AP and Telangana) Uzhavar Sandies (TN) . Multi National Fast Food Chains *They provide good quality inputs to the farmers * Assure procurement of the produce at pre determined prices
DIVERSIFICATION INTO PRODUCTIVE ACTIVITIES Agro processing industries, food processing industries, leather industry, tourism etc. Traditional home based industries such as pottery, crafts, handlooms etc.. TANWA- Tamil Nadu Women in Agriculture in women in latest agricultural techniques Tra ANIMAL HUSBANDRY -Farming community is mixed crop-livestock farming system Increased stability in income, food security, transport, fuel and nutrition Provides livelihood to over 70 million farmers including women
B.Sc (EMS), MA(Applied Economics), Public speaker, nail art designer. Reading books, listening music, singing and watching movies.