rural development
a plan of actions for the development of rural areas which are lagging behind socio-economic development
importance of rural development
2/3 population is still depends on agriculture and 1/4 of the rural population still lives in abject poverty
challenges facing rural development in India
- development of human resource/ humand capital
- infrasture development
- allevation of poverty
- land reforms
- development of the prodictivity of each locality
problems of informal/ non-institutional credit in rural India
- generally exploit the landless labourers, small and marginal framers by charging a higher interest rates on loan as compared to formal source of credit
- manipulating their accounts, which pushs the poor family into a ‘debt trap’
full form of NABARD
national bank for agriculture and rural development
when was NABARD set up?
1982
functions of NABARD
- It plans and evaluates policies related to rural credit needs
- it coordinates the activites of all insitutions involved in rural financing system
what happened in 1969?
- social banking
- multi aggency approach
drawbacks faced by rurual banking system
- banks failed to develop a culture of deposit mobilisation
- problem of overdue in agriculture credit continues
- formal credit deliviery mechanism has proven inaquate
- formal credit system not been fully integrated into the overall rural social and community development
self help groups
micro finance groups of people which promote thrift in small proportions by a minimum contribution from each member
role of self help group in meeting credit requirement of the poor in rural area `
- enchance formal credit system
- sense of community
- prvides fund at concessional rate to this section of society
- empowerment of women
by may 2019, about 6 crore women in India have become members in 54 lakh women SHG - about 10000-15000 per SHG and another 2.5 lakh per SHG as a community investment are provided to part of renoavality fund to take up self employment for incomr genraation
agricultural marketing
process that involves the assembling, storage, processsing, transportation, packaging, grading and distribution of different agricultural commodites across the country
conditions of market channels prior to independence
- framers, while selling their products to traders, suffered from faulty weighing and manipulation of accounts
- framers who did not have the required information on prices prevaling in the market were often forced to sell at low prices
- there was a lack of proper storage facilities to keep back their produce for selling later at better price
measures to improve agricultural marketing system in India since Independence
- regulation of markets
- provision of physical infrasture
- cooperative marketing
- policy instruments
how does a well structure and regulated agricultural system help framers?
- increase in sale
- provision for better infrasture facilities
- protects from explolitation of middlemen and intermediaries
cooperative marketing
a system in which the framers pool their marketable surpurlus of crops and distribute the sale proceeds on the basis of each individual shares
policy instruments are divided to
- minimum support prices
- public distribution system
obstacles that hinder the mechanisms of agricultural marketing
- private trade predominates agricultrual markets
- inadequate infrastructural facilities
reasons for cooperatives have received a setback during the recent past
- inadequate coverage of framer members
- lack of appropriate link between marketing and processing cooperatives
- inefficient financial management
two emerging alternate marketing channel for agricultural marketing
- marketing channels for direct selling
- national and multinational fast food chains
examples of direct market
- apni mandi
punjab, haryana and rajsthan - hadraspar mandi
pune - Rythu Bazar
Andra pradesh and telangana
benefits of national and multinational fast food chain
- it will help in reducing the price risks of framers
- it would also expand the markets for fram products
agricultural diversification
change in cropping pattern or a shift of workforce from a agriculture to other allied activitites and non-agricultural sector.
agricultural diversification is further divided to
- change in cropping patern
- a sift of workforce from agriculture to other allied activites
