4/3/24, 1:54 PM NCERT Class 11 Economics Chapter 6: Rural Development YouTube Lecture Handouts- Examrace

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NCERT Class 11 Economics Chapter 6: Rural Development

YouTube Lecture Handouts
Get video tutorial on: Examrace YouTube Channel [https://www.youtube.com/c/Examrace]
NCERT Class 11 Economics Chapter 6: Rural Development
[https://www.youtube.com/watch?v=dhotQib1rvA]
Majority of poor live in rural areas
Rural area – Agriculture is main livelihood (2⟋3rd population depends on it)
Development of villages is development of nation – MK Gandhi

Rural Development
Development of area lagging behind in overall development of village economy
Literacy, education and skill development
Health and public health
Land reforms
Productive resources of locality
Infrastructure development
Alleviate poverty – uplift weaker sections of society
Engage people in farm and non-farm activities
Share of agriculture to GDP was on decline but population related to this sector didn՚t
show any change
Inadequate infrastructure, lack of alternate employment opportunities in industry or
service sector, increasing casualization of employment etc. impede rural development

Credit
Growth of economy is governed by infusion of capital & higher productivity
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4/3/24, 1:54 PM NCERT Class 11 Economics Chapter 6: Rural Development YouTube Lecture Handouts- Examrace

As gestation time between sowing and real income is high – farmers borrow for initial
investment on seeds, fertilizers, implements and religious ceremonies
At independence, money lenders and traders exploited small and marginal farmers and
landless labourers by high interest rate and debt trap
After 1969, social banking & multiagency approach for rural credit – NABARD (National
Bank for Agriculture and Rural Development) was set in 1982 to coordinate rural
financing system
Green revolution – led to diversification of credit towards production oriented lending
Now, RRB (Regional Rural Banks) , cooperatives and land development banks – dispense
credit at cheap rate
SHGs – fill the gap in formal credit system because formal credit delivery mechanism has
not only proven inadequate – for loans collateral is required and SHG promotes thrift in
small proportions by minimum contribution from each member – credit is given from
the pooled money (repayable in small installments at reasonable interest rate) – micro
credit programs
‘Kudumbashree’ : Women-oriented community-based poverty reduction program
implemented in Kerala. In 1995, a thrift and credit society was started as a small savings
bank for poor women with the objective to encourage savings.
Thrift and credit society mobilized Rs 1 crore as thrift savings. These societies have been
acclaimed as the largest informal banks in Asia in terms of participation and savings
mobilized.

Rural Banking
Positive impact on output, income, employment to avail services and credit
Food security as buffer stocks
Except commercial banks, other formal institutions failed to develop deposit mobilization
(lending to worthwhile borrowers and effective loan recovery)
Agriculture loan default rate is high

Agricultural Market System

Involves the assembling, storage, processing, transportation, packaging, grading and
distribution of different agricultural commodities
Farmers who did not had idea of the existing price were forced to sell at lower price
Lot of goods were wasted due to storage issues (so intervention of private traders
became must)

Methods to Improve Marketing

Regulating market to create orderly transparent marketing conditions (develop 27,000
rural periodic markets as regulated markets)

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4/3/24, 1:54 PM NCERT Class 11 Economics Chapter 6: Rural Development YouTube Lecture Handouts- Examrace

Provision of physical infrastructure facilities like roads, railways, warehouses, godowns,

cold storages and processing units
Cooperative marketing for fair prices – received setback due to inadequate coverage of
farmer members, lack of appropriate link between marketing and processing
cooperatives and inefficient financial management
Assurance for Minimum Support Price (MSP)
Maintain buffer stock by FCI
Distribution of foodgrains and sugar by PDS

Alternate Marketing Channels

Apni Mandi (Punjab, Haryana and Rajasthan)
Hadaspar Mandi (Pune)
Rythu Bazars (vegetable and fruit markets in Andhra Pradesh and Telangana)
Uzhavar Sandies (farmers markets in Tamil Nadu)
Fast food chains are entering in contract with farmers to cultivate farm products of desired
quality – provide them seeds, inputs and procurement at pre-decided prices
It reduces price risk of farmers
Expands market for farm products
Raise income of small farmers

Diversification into Productive Activities

Change in cropping pattern
Shift of workforce from agriculture to allied activities
Provide sustainable livelihood options to rural people (gainful employment in rabi
season when irrigation is inadequate)
Non-farm activities – agro-processing industries, food processing, leather, tourism
Meat, egg, wool
Women in agriculture and men in non-farm activities
Animal Husbandry: mixed crop livestock farming system – provides stable income, food
security, transport, fuel and nutrition requirements
Livestock provides option to 70 million small and landless laborers (poultry accounts for
58%)
2012 – India has 300 million cattle, 108 million buffaloes
Milk production increased 8 times from 1951 to 2014 by operation flood
Improved technology & promotion of good breeds of animals to enhance productivity
Improved veterinary care & credit facilities

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Fisheries – fishing community considers water as mother or provider. Inland fish

production contribute to 64% value and 36% to marine sector.
Total fish production account to 0.8% of total GDP (major states - West Bengal, Andhra
Pradesh, Kerala, Gujarat, Maharashtra and Tamil Nadu)
60% workforce in export marketing & 40% in internal marketing are women in fishery
Horticulture – fruits, vegetables, tubers, flowers, spices
1⟋3rd of value of agricultural output & 6% of GDP
India is leader in mangoes, bananas, coconuts, cashew nuts and a number of spices and
is the second largest producer of fruits and vegetables
Employment options – Flower harvesting, nursery maintenance, hybrid seed production
and tissue culture, propagation of fruits and flowers and food processing
IT revolution – sustainable development and food security
Tamil Nadu Women in Agriculture (TANWA) : Project initiated in Tamil Nadu to train women
in latest agricultural techniques. It induces women to actively participate in raising
agricultural productivity and family income - in Thiruchirapalli run by Anthoniammal

Sustainable Development & Organic Farming

Conventional agriculture relies heavily on chemical fertilisers and toxic pesticides – harm
livestock, deplete soil and devastate natural ecosystem
Organic farming - whole system of farming that restores, maintains and enhances the
ecological balance; increasing demand for organically grown food to enhance food safety
Saansad Adarsh Gram Yojana (SAGY) : MPs need to identify and develop one village from
their constituencies. To begin with, MPs can develop one village as a model village by
2016, and two more by 2019, covering over 2,500 villages in India.

Benefits of Organic Farming

Substitute costlier agricultural inputs with locally produced organic inputs which are
cheap
Income by exports
More nutritional value
Requires more labor input
Pesticide free and environmentally sustainable way
Awareness for new technology
More blemishes and a shorter shelf life
Limited choice in production of off season crops
1995: Kisan Mehta of Prakruti (an NGO) first suggested that cotton, biggest user of chemical
pesticides, could be grown organically. Tested by German Accredited Agency, AGRECO
✍ Manishika
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