[NCERT] Rural Development Solutions Indian Economic Development Class12

NCERT Solutions for class 12 Indian Economic Development Chapter 5 Rural Development.

NCERT Solutions for Class 12 Economics Chapter 5 Rural Development is considered an exceptionally helpful resource while preparing for the CBSE Class 12 Economics examinations. This study resource provides students with in-depth knowledge, and the NCERT solutions collated by the subject-matter experts are highly useful for scoring good marks in the annual examination. This chapter is a brief introduction to the concept of Rural Development.

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Q. 1. What do you mean by Rural Development? Bring out the key issues in rural development.

Ans.

Rural Development is an ongoing process that aims to improve the economic and social conditions in rural areas. Here are some important areas to focus on:

(1) Improving Human Resources: We need to enhance the quality of our workforce by focusing on better education and healthcare services.

(2) Better Infrastructure: This means improving facilities like electricity, irrigation, credit systems, market access, and transportation.

(3) Land Reforms: This includes:

• Stopping the exploitation in land ownership.
• Ensuring that land is given to those who work on it.
• Helping the rural poor by increasing their access to land.
• Boosting agricultural productivity and production.

(4) Reducing Poverty: We should take strong actions to lessen poverty and improve the living conditions of the less fortunate people.

(5) Developing Local Resources: It’s essential to enhance the productive resources in each community to create more job opportunities, especially jobs that are not just about farming.

Q. 2. Discuss the importance of credit in rural development.

Ans.

In farming, there is often a long wait between when farmers plant their crops and when they actually earn money from them. Because of this, farmers really need loans to get started. They need money to buy seeds, fertilizers, tools, and to cover other family expenses like weddings, funerals, and religious events. Therefore, getting loans is very important for helping farmers grow their crops. Having a good system for providing loans in rural areas is essential for increasing farm productivity and helping farmers earn more money.

Q. 3. Explain the role of micro-credit in meeting credit requirements of the poor.

Ans.

Micro-credit and Self-Help Groups (SHGs) have become important microfinance programs in our country in recent years.

(1) These groups mainly help people in rural areas who do not have easy access to formal banks. Their focus is on small and marginal farmers, workers in agriculture and other fields, and artisans.

(2) SHGs encourage saving by asking each member to contribute a small amount of money regularly.

(3) With the money collected, they can provide loans to members who need financial help at reasonable interest rates. This money is paid back in small amounts over time.

(4) By March 2003, more than 700,000 SHGs were connected to credit services, which means they could offer loans to their members. These micro-credit programs have also played a key role in empowering women.

Q. 4. Explain the steps taken by the government in developing rural markets.

Ans.

The government has taken several steps to help develop rural markets. Here are some important measures:

(1) Regulated Markets: These markets are set up to protect farmers from unfair treatment by sellers and brokers. This system helps both farmers and consumers by ensuring fair transactions.

(2) Infrastructural Facilities: The government is working to improve physical infrastructure like roads, railways, warehouses, storage facilities, and processing units. These improvements are essential for better market access.

(3) Cooperative Marketing: The goal of cooperative marketing is to help farmers get a fair price for their crops. In this system, farmers come together to sell their surplus harvests and share the money they earn based on the amount each person contributed.

(4) Various Policy Instruments: To protect the interests of farmers, the government has introduced several policies:

(i) Minimum Support Prices (MSP): These are prices set by the government to ensure that farmers receive a basic level of income for their crops. The government promises to buy grains from farmers at these prices, no matter how much they produce.

(ii) Maintenance of Buffer Stocks: The Food Corporation of India (FCI) buys wheat and rice at specific prices to maintain a buffer stock. This stock helps ensure a stable supply of food and keeps prices steady.

(iii) Public Distribution System (PDS): The PDS works through ration shops and fair price shops, where essential items like wheat, rice, and kerosene are sold at lower prices to help less fortunate people in society.

These measures are all aimed at supporting farmers and improving rural markets.

Q. 5. Why is agricultural diversification essential for sustainable livelihoods?

Ans.

Agricultural diversification means having a variety of crops and jobs in farming, as well as exploring related activities like fishing, raising chickens, and livestock, and even working in non-farming jobs. Here are some key reasons why agricultural diversification is important:

1. Many farmers in India rely on the monsoon season for rain to grow their crops, which can be risky. Diversifying their work helps farmers make more money from jobs outside of traditional farming.
2. The Kharif season offers many farming opportunities, but the Rabi season can be tough due to irrigation issues, leading to less work. Diversification provides farmers with other ways to earn money during these times.
3. The agriculture job market is becoming crowded and isn’t creating enough new jobs. Exploring opportunities in non-agricultural sectors can open up new sources of income.
4. Many non-farm jobs are connected to agriculture and can contribute to overall economic growth, helping communities thrive.

Q. 6. Critically evaluate the role of the rural banking system in the process of rural development in India.

Ans.

The rapid growth of banks has had a good effect on both farming and other jobs in rural areas, improving income and providing more job opportunities. After the Green Revolution, banks started offering a variety of loans to help farmers with their production needs. Because of better grain storage, famines are now much less common.

However, there are still some problems with banking in rural areas:

(i) Insufficient Credit: The total amount of money available for rural credit is still not enough to meet the needs of farmers.

(ii) Limited Reach of Banks: Many banks don’t reach all the farmers in the countryside, so not everyone can access the help they need.

(iii) Low Loan Amounts: The money that banks are willing to lend to farmers is often too little.

(iv) Neglect of Poor Farmers: There is not enough focus on helping poorer and smaller farmers get the loans they need.

(v) Increasing Loan Defaults: Many farmers are struggling to pay back their loans, which is a serious issue. Some people believe that farmers are purposely not paying back their loans, which affects how banks operate.

As a result, after reforms, the growth of rural banking has slowed down. Other than commercial banks, many financial institutions have not managed to encourage saving, lend to those in need, or ensure that loans are paid back properly.

To make things better:

• Banks should change how they operate, focusing on building relationships with borrowers instead of just providing loans.
• Farmers should also be encouraged to save money and use their financial resources wisely.

Q. 7. What do you mean by agricultural marketing?

Ans.

Agricultural marketing is all about how we get farm products from the fields to the people who will buy and use them. It involves a series of steps that help ensure farmers, middlemen, and customers are all satisfied with the process.

Here are the main steps in agricultural marketing:

1. Collecting the Product: After the harvesting is done, the collected crops are gathered.
2. Processing the Product: The harvested products are then processed to be ready for sale.
3. Grading the Product: The products are sorted according to their quality so that customers receive what they expect.
4. Packing the Product: The products are carefully packed for safe transportation.
5. Storage: The packed products are stored properly until they can be sold.
6. Selling the Product: Finally, the products are sold in the market at a price that is fair for everyone involved.

Q. 8. Mention some obstacles that hinder the mechanism of agricultural marketing.

Ans.

Some of the challenges that make agricultural marketing difficult are:

(i) Private traders, such as moneylenders, local politicians, big merchants, and wealthy farmers, have a strong influence over agricultural markets.

(ii) Only about 10% of agricultural products are managed by government agencies and consumer cooperatives; the remaining 90% is handled by private companies.

(iii) Lack of Storage Facility:- There aren’t enough good storage facilities for food grains and commercial crops, which makes it hard to keep the products safe for a long time.

(iv) Lack of Transportation:-Transportation is an issue. Because there are not enough proper roads, farmers often have to sell their crops right in their village markets.

(v) Lack of Market Information:- Farmers often sell their products at lower prices because they don’t have enough information about current market prices.

Q. 9. What are the alternative channels available for agricultural marketing? Give some examples.

Ans.

There are several alternative ways for farmers to market their products:

1. Farmers Markets:

Farmers markets have been created to help small farmers by letting them sell directly to consumers, cutting out the middlemen. Some examples of these markets include:

• Apni Mandi in Punjab, Haryana, and Rajasthan
• Hadaspar Mandi in Pune
• Rythu Bazars in Andhra Pradesh
• Uzhavar Sandies (farmers markets in Tamil Nadu)

2. Partnerships with National and Multinational Companies:

Many national and international fast food chains are forming partnerships with farmers.

(i) These companies encourage farmers to grow certain farm products, like vegetables and fruits, that they need.

(ii) They don’t just help by providing seeds and other supplies; they also promise to buy the farmers’ produce at agreed prices.

(iii) These partnerships help reduce the risk of price drops for farmers and broaden the market for their products.

Q. 10. Distinguish between ‘Green Revolution’ and ‘Golden Revolution’.

Ans.

S.N	Green Revolution	Golden Revolution
1	Green Revolution refers to the large increase in production of food gains due to use of high yielding variety (HYV) seeds	The period during which there was rapid growth in the production of horticultural crops such as fruits, vegetables, flowers, etc. is known as Revolution
2	it led to increase in the production, especially, of rice and wheat	It led to increase in production of fruits, vegetables, flowers etc.
3	Green Revolution made India self-sufficient in the production of food grains.	Golden Revolution made India a world leader in the production of mangoes, bananas, coconut and spices.

Q. 11. Do you think various measures taken by the government to improve agricultural marketing are sufficient? Discuss.

Ans.

The government has introduced several measures to improve agricultural marketing. These include regulating markets, building better infrastructure, promoting cooperative marketing, and implementing policies like Minimum Support Prices (MSP) and the Public Distribution System (PDS). Despite these efforts, there are still some challenges in making agricultural marketing work effectively:

(i) Many agricultural markets are still heavily influenced by private traders, such as moneylenders, political leaders in rural areas, large merchants, and wealthy farmers.

(ii) The current infrastructure is not enough to meet the increasing needs, and it requires improvements.

(iii) Cooperatives face issues, such as not reaching enough farmers, lacking a good connection between marketing and processing cooperatives, and struggling with financial management.

(iv) Government agencies and consumer cooperatives only handle about 10% of agricultural products, while the majority is managed by the private sector.

Q. 12. Explain the role of non-farm employment in promoting rural diversification.

Ans.

Non-farm employment opportunities are really important for supporting rural diversification. Here are a few reasons why:

(i) Relying only on farming can be risky. Non-farm jobs provide sustainable ways for people in rural areas to earn a living.

(ii) Most farming work happens during the Kharif season, but it can be hard to find jobs during the Rabi season in places without enough irrigation. That’s why exploring non-farm jobs is very important.

(iii) Non-farm activities come in different forms. Some of these activities are connected in ways that help them grow and succeed.

(iv) The products made in non-farm sectors can be used as raw materials for larger industries, like agro-processing and the leather industry.

Q. 13. Bring out the importance of animal husbandry, fisheries and horticulture as a source of diversification.

Ans.

Animal husbandry, or livestock farming, is really important for several reasons:

1. It offers alternative ways for over 70 million small farmers and landless workers to earn a living.
2. It helps families earn a stable income, ensures food security, and provides transport, fuel, and nutrition, all while not interfering with other farming activities.
3. Many women also find work in the livestock industry.

The fisheries sector is also crucial for the country’s social and economic growth:

1. States like West Bengal, Andhra Pradesh, Kerala, Gujarat, Maharashtra, and Tamil Nadu are known for producing a lot of fish.
2. A significant number of women work in fishing. Around 60% of the workers in exporting fish and 40% in selling fish locally are women.
3. Fish production adds 0.8% to India’s GDP.

Horticulture is another key area that can help diversify agriculture and add value to it. India is now a top producer of various fruits, vegetables, and spices.

1. Horticulture has improved the economic situations of many farmers and has helped many underprivileged families.
2. Jobs like flower picking and taking care of nurseries are very good opportunities for women in rural areas.

Q. 14. ‘Information technology plays a very significant role in achieving sustainable development and food security’ – Comment.

Ans.

Information Technology (IT) has changed many industries in India. It is clear that IT will be very important for achieving sustainable development and food security in the 21st century.

With the help of the right information and software tools, the government can predict where food insecurity might happen. This helps them prevent or lessen emergencies related to food shortages.

IT also shares valuable information about new technologies, their uses, prices, weather conditions, and soil types for growing various crops.

The IT sector is also creating jobs in less developed areas. For instance, info kiosks (which are computers with internet, scanners, etc.) have been set up in rural areas. These kiosks allow their owners to earn a fair income by offering services like email and video conferencing.

The goal of IT is to turn every village into a center of knowledge, providing sustainable job options and means of livelihood for the community.

Q. 15. What is organic farming and how does it promote sustainable development?

Ans.

Organic farming is a type of agriculture that uses natural methods to grow food. Some techniques include rotating crops, using green manure, composting, and controlling pests through natural means.

The goal of organic farming is to produce safe and healthy food while protecting the environment. Unlike conventional farming, it avoids harmful synthetic fertilizers and genetically modified organisms (GMOs). This approach not only promotes sustainable development but also helps to restore and maintain the natural balance of ecosystems. Food sourced from organic farming is free from pesticides and is grown in a way that is kind to the planet.

Q. 16. Identify the benefits and limitations of organic farming.

Ans.

The benefits of organic farming are:

(i) Economical Farming:

Organic Farming offers a means to substitute costlier agricultural inputs (such as HYV seeds, chemical fertilisers, pesticides, etc.) with locally produced cheaper organic inputs.

(ii) Generates income through exports:

It generates income through international exports as demand for organically grown crops is on a rise.

(iii) Provides Healthy Food:

It provides healthy food as organically grown food has more nutritional value than food grown through chemical farming.

(iv) Source of Employment:

Organic farming generates more employment opportunities as it requires more labour input than conventional farming.

(v) Safety of environment:

the produce of organic farming is pesticide-free and is produced in an environmentally sustainable way.

The limitations of organic farming are:

(i) Less Popular:

Organic farming needs to be popularized by creating awareness and willingness on the part of farmers, for adoption of new technology. There is a serious need for an appropriate agriculture policy to promote organic farming.

(ii) Lack of infrastructure and marketing facilities:

Organic farming faces problems of inadequate infrastructure and marketing facilities.

(iii) Low Yield:

Organic farming has a lesser yield in the initial years as compared to modern agricultural farming. As a result, small and marginal farmers find difficult to adapt to large-scale production.

(iv) Shorter food life:

Organic produce has a shorter shelf life as compared to sprayed produce.

(v) Limited choice of crops:

The choice in production of off-season crops is quite limited in organic farming.

Q. 17. Enlist some problems faced by farmers during the initial years of organic farming.

Ans.

Here’s a simpler version of the text for class 12 students:

Farmers face several challenges when they start organic farming:

(i) In the beginning, organic farming usually produces less food than modern farming. This makes it hard for small farmers to manage large-scale crops.

(ii) There aren’t enough facilities for infrastructure and marketing when it comes to organic farming.

(iii) Organic fruits and vegetables tend to spoil faster than those treated with chemicals.

(iv) There are limited options for growing crops out of season in organic farming.