Kerala Plus One Economics Chapter Wise Previous Questions Chapter 6 Rural Development
Question 1.
‘Diversification into productive activities helps agricultural labourers to shift from agriculture to other allied activities for sustaining their livelihood’. Prepare a seminar report on this topic. (March 2011)
Answer:
Content of the Seminar.
Diversification of farm products has 2 aspects namely,
- Diversification of the crop production
- The shift of workforce from agriculture to other allied activities and non-agricultural factors.
As agriculture is overcrowded, a major proportion of the increasing labor force needs to find alternative employment opportunities in another non-farm sector. The non-farm economy has several segments in it, some possess dynamic linkages that permit growth while others are in a subsistence and low productivity proposition. The dynamic sub-sectors include agro-processing industries, food processing industries, leather industry, tourism, etc.
The above explanation shows that in agriculture there is an immediate requirement of diversification because there is greater risk in depending exclusively on farming for livelihood. Diversification towards new areas is necessary not only to reduce the risk from the agriculture sector but also to provide productive sustainable livelihood options to the rural people. Hence, expansion into other areas in essential to provide supplementary gainful employment and in realising higher amounts of income for rural people to overcome poverty and other tribulations. For this, the emphasis has been given on allied activities non-farms employment and other emerging alternatives of livelihood, though there are many other options available for providing sustainable livelihood in rural areas like:
a) Animal husbandry: In India, the farming community uses the mixed crop-livestock farming system-cattle, goats, fowl, are th widely held species. Livestock production provides increased stability in income, food security, transport, and nutrition for the family without disrupting other food-producing activities. Presently, the livestock sector provides alternate livelihood options to over 70 million small and marginal farmers including landless labourer. A significant number of women also find employment in this sector.
b) 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 .an integral and life-giving source for the fishing community. In India, after a progressive increase in bud¬getary allocation and the introduction of new technologies into the fisheries and agriculture the development of fisheries has come a long way.
c) Horticulture: India has adopted the growth of diverse horticultural crops such as fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, species, and plantation crops. These crops play a vital role in providing food and nutrition, besides providing employment opportunities to many people.
d) Other alternative Livelihood Option: There is a widely accepted view that it can play a critical role in achieving sustainable development and food security in the twenty-first century e.g. the ability of government to predict areas of food in security and vulnerability using appropriate information and software tools so that action can be taken to present or reduce the livelihood of on emergency. It also has a positive impact on the agriculture sector as it disseminates information regarding emerging technologies and its applications prices, weather and soil conditions for growing different crops etc.
Question 2.
“The farmers of Kerala are now getting fair prices for their products through ‘Vipanies’ (Co-operative marketing).” List the other measures initiated by the Government as a part of the agricultural market system in India. (March 2013)
Answer:
- Agricultural Cooperative marketing societies
- Regulated markets
- Grading and standardization
Question 3.
Prepare an article regarding the importance of diversification into productive activities to reduce the risk from agriculture. (March 2014)
(Hints: Animal husbandry, Fisheries, Horticulture, other livelihood activities)
Answer:
In the agricultural context, diversification can be regarded as the re-allocation of some of a farm’s productive resources, such as land, capital, farm equipment, and paid Igtlour, into new activities. These can be new crops or livestock products, value activities, provision of services to other farmers, and, particularly in richer countries, non-farming activities such as restaurants and shops. Factors leading to decisions to diversify are many but include; reducing risk, responding to changing con¬sumer demands or changing government policy, responding to external shocks, and, more recently, as a consequence of climate change.
Diversification in agriculture’ has a tremendous impact on the agro-socio-economic impact and uplifting of resource-poor farming communities. It generates income and employment for rural youth year-round for the ultimate benefits of the farmers in the country. It implies the use of local resources in a larger mix of diverse cropping systems and livestock, aquaculture, and other non-farm sectors in rural areas. With the globalization of markets in the WTO era, diversification in agriculture is one means to increase the total production and productivity in terms of quality, quantity, and monetary gains under diverse agro-climatic situations of the country. There are many opportunities of crop diversification both in the irrigated and non-irrigated vast areas in rural India. Diversification can be a response to both opportunities and threats.
Advantages of diversification
Changing consumer demand. As consumers in developing countries become richer, food consumption patterns change noticeably. People move away from a diet based on staples to one with a greater content of animal products (meat, eggs, and dairy) and fruits and vegetables. In turn, more dynamic farmers are able to diversify to meet these needs.
Changing demographics. Rapid urbanization in developing countries has an impact on consumption patterns. Moreover, a smaller number of farmers, in percentage terms at least, has to supply a larger number of consumers. While this may not imply diversification it does require adaptation to new farming techniques to meet higher demand.
Export potential. Developing country farmers have had considerable success by diversifying into crops that can meet export market demand. While concern about food miles, as well as the cost of complying with supermarket certification requirements such as for Global GAP, may jeopardize this success, in the long run, there remains much potential to diversify to meet export markets.
Adding value. The pattern witnessed in the West, and now becoming widespread in developing countries, is for consumers to devote less and less time to food preparation. They increasingly require ready-prepared meals and labor-saving packaging, such as pre-cut salads. This provides the opportunity for farmers to diversify into value addition, particularly in countries where supermarkets play a major role in retailing.
Changing marketing opportunities. The changing of government policies that control the way in which farmers can link to markets can open up new diversification possibilities. For example, in India, policy changes to remove the monopoly of the state “regulated markets” to handle all transactions made it possible for farmers to establish direct contracts with buyers for new products.
Improving nutrition. Diversifying from the monoculture of traditional staples can have important nutritional benefits for farmers in developing countries.
Question 4.
The development of rural areas is essential for India’s overall development. Give a suggestion for further development in rural areas in India. (March 2015)
(Hint: Rural credit, organic farming, agricultural marketing)
Answer:
Rural Credit: The growth of the rural economy depends primarily on the infusion of capital, from time to time, to realize higher productivity in agriculture and non-agriculture 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.
A major change occurred after 1969 when India adopted social banking and a multi-agency approach to adequately meet the needs of rural credit. Later, the National Bank for Agriculture and Rural Development (NABARD) was set up in1982 as an apex body to coordinate the activities of all institutions involved in the rural financing system.
The institutional structure of rural banking today consists of a set of multi-agency institutions, namely, commercial banks, regional rural banks (RRBs), co-operatives and land development banks. Recently, Self-Help Groups (hence for the 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. By March end 2003, more than seven lakh SHGs had reportedly been credit linked. Such credit provisions are generally referred to as micro-credit programmes.
Agricultural Marketing
Agricultural marketing is a process that involves the assembling, storage, processing, transportation, packaging, grading, and distribution of different agricultural commodities across the country. Let us discuss four such measures that were initiated to improve the marketing aspect.
- The first step was the regulation of markets to create orderly and transparent marketing conditions.
- Second component is the provision of physical infrastructure facilities like roads, railways, warehouses, godowns, cold storage, and processing units.
- Co-operative marketing, in realizing fair prices for farmers’ products, is the third aspect of a government initiative.
- The fourth element is the policy instruments like
- assurance of minimum support prices (MSP) for24 agricultural products
- maintenance of buffer stocks of wheat and rice by Food Corporation of India and
- distribution of food grains and sugar through PDS.
These instruments are aimed at protecting the income of the farmers and providing food grains at subsidized rate to the poor.
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 fertilizers 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 that are eco-friendly are essential for sustainable development and one such technology which is eco-friendly is organic farming.
Question 5.
Bring out the importance of animal husbandry, fisheries, horticulture, and IT-enabled services as a source of agricultural diversification. (Say 2016)
Answer:
Diversification in the agriculture sector includes two aspects. They are:
- Diversification of crops
- A shift of workforce from agriculture to other allied activities.
Some of the important agriculture allied activities are the following:
Animal Husbandry: The farming community in India undergoes a mixture crop of livestock farming system. India stands in second position in the production of livestock in the world. A significant achievement in this sector is the implementation of operation flood in 1966.
Fisheries: Fisheries sector provides 1 % of the total GDP in India. The majority of the workforce in export marketing are women.
Horticulture: India has to grow a large number of horticultural crops. The economic condition of the farmers engaged in horticulture has improved. To increase the production of the horticulture sector, the government introduced the Gold revolution. National Horticulture Mission was set up for increasing the production and employment opportunities in this sector.
Information Technology: It has made revolutionary changes in various sectors of the Indian economy. It can play a crucial role in achieving sustainable development, and food security in India. It also provides information to the agriculture sector regarding modern technologies and their applications weather and soil conditions for growing different crops, etc. It has also brought a ‘knowledge economy’. It has the potential for employment generation in rural areas.
Question 6.
Find the one which is NOT a measure for improving the agricultural market system. (March 2017)
a) Adoption of Green Revolution.
b) Assurance of minimum support price.
c) Maintenance of buffer stock.
d) Public Distribution System.
Answer:
d) Public Distribution System