FYBA RD – SEM – II ENG-munotes

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1Unit -1
RURAL ADMINISTRATION
Dr. Pravin T. Sanaye
Unit Structure :
1.0 Objectives
1.1 Introduction
1.2 Historical background of Panchayat Raj system
1.3 Panchayat Raj
1.4 Panchayat Raj in Maharashtra
1.5 Gram Sabha
1.6 Gram Panchayat
1.7 Panch ayat Samiti
1.8 Zilla Parishad
1.9 Summary
1.10 Self-Study
1.0 Objectives
To study the historical background of panchayat raj system
To study the development of panchayat raj system
To review the Maharashtra panchayat raj systems structure and
functions
To review the panchayat raj three tier systems officers and their
functions
1.1 INTRODUCTION
The panchayati raj is a south Asian political system mainly in
India, Pakistan, Bangladesh and Nepal. It is the oldest system of
local government in the Indian Subcontinent. The word "panchayat"
literally means "assembly" (ayat) of five (panch) wise and respected
elders chosen and accepted by the local community. However,
there are different forms of assemblies. Traditionally, these
assemblies settl ed disputes between individuals and villages.
Modern Indian government has decentralized several
administrative functions to the local level, empowering elected gram
panchayats. Gram panchayats are not to be confused with the
unelected khappanchayats (or c aste panchayats) found in some
parts of Northern India.munotes.in

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21.2 HISTORICAL BACKGROUND OF PANCHAYAT
RAJ SYSTEM
In the time of the Rig -Veda (1700 BC), evidences suggest
that self -governing village bodies called 'sabhas' existed. With the
passage of time, thes e bodies became panchayats (council of five
persons). Panchayats were functional institutions of grassroots
governance in almost every village. The Village Panchayat or
elected council had large powers, both executive and judicial. Land
was distributed by this panchayat which also collected taxes out of
the produce and paid the government's share on behalf of the
village. Above a number of these village councils there was a larger
panchayat or council to supervise and interfere if necessary.
Casteism and fe udalistic system of governance under Mughal rule
in the medieval period slowly eroded the self -government in
villages. A new class of feudal chiefs and revenue collectors
(zamindars) emerged between the ruler and the people. And, so
began the stagnation an d decline of self -government in villages.
During the British rule, the autonomy of panchayats
gradually declined with the establishment of local civil and criminal
courts, revenue and police organisations, the increase in
communications, the growth of in dividualism and the operation of
the individual Ryotwari '(landholder -wise) system as against the
Mahalwari or village tenure system.
During British rule, the panchayat had never been the priority
of the British rulers. The rulers were interested in the creation of
'controlled' local bodies, which could help them in their trading
interests by collecting taxes for them. When the colonial
administration came under severe financial pressure after the 1857
uprising, the remedy sought was decentralisation in terms of
transferring responsibility for road and public works to local bodies.
However, the thrust of this 'compelled' decentralisation was with
respect to municipal administration.
"The panchayat was destroyed by the East India Company
when it was gran ted the office of Diwan in 1765 by the Mughal
Emperor as part of reparation after his defeat at Buxar. As Diwan
the Company took two decisions. The first was that it abolished the
village land record office and created a company official called
Patwari. Th e Patwari became the official record keeper for a
number of villages. The second was the creation of the office of
magistrate and the abolition of village police. The magistrate carried
out policing functions through the Darogha who had always been a
state functionary under the Faujdar. The primary purpose of these
measures was the collection of land revenue by fiat. The
depredations of the Patwari and the Darogha are part of our folkloremunotes.in

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3and it led to the worst famine in Bengal. The effects of the famine
lingered right to the end of the 18th century. These two measures
completely disempowered the village community and destroyed the
panchayat. After 1857 the British tried to restore the panchayat by
giving it powers to try minor offences and to resolve villa ge
disputes. But these measures never restored the lost powers of the
village community."
From 1870 that Viceroy Lord Mayo's Resolution (for
decentralisation of power to bring about administrative efficiency in
meeting people's demand and to add to the f inances of colonial
regime) gave the needed impetus to the development of local
institutions. It was a landmark in the evolution of colonial policy
towards local government. The real benchmarking of the
government policy on decentralisation can, however, b ea t t r i b u t e d
to Lord Ripon who, in his famous resolution on local self -
government on May18, 1882, recognised the twin considerations of
local government: (i) administrative efficiency and (ii) political
education. The Ripon Resolution, which focused on tow ns,
provided for local bodies consisting of a large majority of elected
non-official members and presided over by a non -official
chairperson. This resolution met with resistance from colonial
administrators. The progress of local self -government was tardy
with only half -hearted steps taken in setting up municipal bodies.
Rural decentralization remained a neglected area of administrative
reform.
The Royal Commission on Decentralisation (1907) under the
chairmanship of C.E.H.Hobhouse recognised the importan ce of
panchayats at the village level. The commission recommended that
"it is most desirable, alike in the interests of decentralisation and in
order to associate the people with the local tasks of administration,
that an attempt should be made to constitu te and develop village
panchayats for the administration of local village affairs".
But, the Montague -Chemsford reforms (1919) brought local
self-government as a provincial transferred subject, under the
domain of Indian ministers in the provinces. Due t o organisational
and fiscal constraints, the reform was unable to make panchayat
institutions truly democratic and vibrant. However, the most
significant development of this period was the 'establishment of
village panchayats in a number of provinces, that were no longer
mere ad hoc judicial tribunal, but representative institutions
symbolising the corporate character of the village and having a
wide jurisdiction in respect of civic matters'. By 1925, eight
provinces had passed panchayat acts and by 1926, s ix native
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4The provincial autonomy under the Government of India Act,
1935, marked the evolution of panchayats in India. Popularly
elected governments in provinces enacted legislations to further
democratise institut ions of local self -government. But the system of
responsible government at the grassroots level was least
responsible. D.P. Mishra, the then minister for local self -
government under the Government of India Act of 1935 in Central
Provinces was of the view t hat 'the working of our local bodies... in
our province and perhaps in the whole country presents a tragic
picture... 'Inefficiency' and 'local body' have become synonymous
terms.
In spite of various committees such as the Royal
Commission on Decentralization (1907), the report of Montague
and Chemsford on constitutional reform (1919), the Government of
India Resolution (1919), etc., a hierarchical administrative structure
based on supervision and control evolved. The administrator
became the focal point of rural governance. The British were not
concerned with decentralised democracy but were aiming for
colonial objectives.
The Indian National Congress from the 1920s to 1947,
emph asized the issue of all -India Swaraj, and organized
movements for Independence under the leadership of Mahatma
Gandhi. The task of preparing any sort of blueprint for the local
level was neglected as a result. There was no consensus among
the top leaders r egarding the status and role to be assigned to the
institution of rural local self -government; rather there were divergent
views on the subject. On the one end Gandhi favoured Village
Swaraj and strengthening the village panchayat to the fullest extent
and on the other end, Dr. B.R. Ambedkar opposed this idea. He
believed that the village represented regressive India, a source of
oppression. The model state hence had to build safeguards against
such social oppression and the only way it could be done was
through the adoption of the parliamentary model of politics. During
the drafting of the Constitution of India, Panchayati Raj Institutions
were placed in the non -justiciable part of the Constitution, the
Directive Principles of State Policy, as Article 40. T he Article read
'the State shall take steps to organise village panchayats and
endow them with such powers and authority as may be necessary
to enable them to function as units of self -government'. However,
no worthwhile legislation was enacted either at t he national or state
level to implement it.
In the four decades since the adoption of the Constitution,
panchayat raj institutions have travelled from the non -justiciable
part of the Constitution to one where, through a separate
amendment, a whole new st atus has been added to their history.munotes.in

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51.3 PANCHAYAT RAJ
Panchayat Raj is a System of Governance in which gram
panchayats are the basic units of administration. It has 3 levels:
Gram (village, though it can comprise more than one village),
Janpad (block ) and Zilla (district).
The term "panchayat raj" is relatively new, having originated
during the British Administration. Raj literally means "rule".
Mahatma Gandhi advocated Panchayati Raj, a decentralized form
of Government where each village is respons ible for its own affairs,
as the foundation of India's political system. The term for such a
vision was Gram Swaraj ("village self -governance").The leader of
the panchayat was generally called theMukhiya, a position which
was both hereditary and elected.
The Balwant Rai Mehta Committee (1957)
In 1957, Balwant Rai Mehta Committee studied the
Community Development Projects and the National Extension
Service and assessed the extent to which the movement had
succeeded in utilising local initiatives and in c reating institutions to
ensure continuity in the process of improving economic and social
conditions in rural areas. The Committee held that community
development would only be deep and enduring when the
community was involved in the planning, decision -making and
implementation process.
The suggestions were for as follows: -
An early establishment of elected local bodies and
devolution to them of necessary resources, power and
authority,that the basic unit of democratic decentralisation was at
the block / samiti level since the area of jurisdiction of the local
body should neither be too large nor too small. The block was large
enough for efficiency and economy of administration, and small
enough for sustaining a sense of involvement in the citizens,such
body must not be constrained by too much control by the
government or government agencies,the body must be constituted
for five years by indirect elections from the village panchayats,its
functions should cover the development of agriculture in all its
aspe cts, the promotion of local industries and others services such
as drinking water, road building, etc., and the higher level body,
Zilla Parishad, would play an advisory role.
The PRI structure did not develop the requisite democratic
momentum and failed to cater to the needs of rural development.
There are various reasons for such an outcome which include
political and bureaucratic resistance at the state level to share
power and resources with local level institutions, domination of localmunotes.in

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6elites over th e major share of the benefits of welfare schemes, lack
of capability at the local level and lack of political will.
Ashok Mehta Committee (1978)
With the coming of the Janata Party into power at the Centre
in 1977, a serious view was taken of the weakn esses in the
functioning of Panchayati Raj. It was decided to appoint a high -level
committee under the chairmanship of Ashok Mehta to examine and
suggest measures to strengthen PRIs. The Committee had to
evolve an effective decentralised system of developm ent for PRIs.
They made the following recommendations: -
The district is a viable administrative unit for which planning,
coordination and resource allocation are feasible and technical
expertise available, PRIs as a two -tier system, with Mandal
Panchay at at the base and Zilla. Parishad at the top, the PRIs are
capable of planning for themselves with the resources available to
them,district planning should take care of the urban -rural
continuum,representation of SCs and STs in the election to PRIs on
the basis of their population, four -year term of PRIs, participation of
political parties in elections,any financial devolution should be
committed to accepting that much of the developmental functions at
the district level would be played by the panchayats. The states of
Karnataka, Andhra Pradesh and West Bengal passed new
legislation based on this report. However, the flux in politics at the
state level did not allow these institutions to develop their own
political dynamics.
G.V.K. Rao Committee (1985)
The G.V.K.Rao Committee was appointed to once again
look at various aspects of PRIs. The Committee was of the opinion
that a total view of rural development must be taken in which PRIs
must play a central role in handling people's problems. It
recommended the following:
1) PRIs have to be activated and provided with all the required
support to become effective organisations,
2) PRIs at district level and below should be assigned the work of
planning, implementation and monitoring of rural development
programmes, and
3) The block development office should be the spinal cord of the
rural development process.
L.M. Singhvi Committee (1986)
L.M. Singhvi Committee studied panchayati raj. The Gram
Sabha was considered as the base of a decentralised democra cy,
and PRIs viewed as institutions of self -governance which wouldmunotes.in

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7actually facilitate the participation of the people in the process of
planning and development. It recommended:
1) Local self -government should be constitutionally recognised,
protected a nd preserved by the inclusion of new chapter in the
Constitution,
2)Non-involvement of political parties in Panchayat elections.
The suggestion of giving panchayats constitutional status
was opposed by the Sarkaria Commission. But the idea, however,
gained momentum in the late 1980s especially because of the
endorsement by the late Prime Minister Rajiv Gandhi, who
introduced the 64th Constitutional Amendment Bill in 1989. The
64th Amendment Bill was prepared and introduced in the lower
house of Parliam ent. But it got defeated in the Rajya Sabha as non -
convincing. He lost the general elections too. In 1989, the National
Front introduced the 74th Constitutional Amendment Bill, which
could not become an Act because of the dissolution of the Ninth
Lok Sabha . All these various suggestions and recommendations
and means of strengthening PRIs were considered while
formulating the new Constitutional Amendment Act. The 73rd
Constitutional Amendment Act.
The idea which produced the 73rd Amendment was not a
respons e to pressure from the grassroots, but to an increasing
recognition that the institutional initiatives of the preceding decade
had not delivered, that the extent of rural poverty was still much too
large and thus the existing structure of government needed to be
reformed. It is interesting to note that this idea evolved from the
Centre and the state governments. It was a political drive to see
PRIs as a solution to the governmental crisis that India was
experiencing. The Constitutional (73rd Amendment) Act, passed in
1992 by the Narsimha Rao government, came into force on April
24, 1993. It was meant to provide constitutional sanction to
establish "democracy at the grassroots level as it is at the state
level or national level". Its main features are as foll ows:
a)The Gram Sabha or village assembly as a deliberative body to
decentralised governance has been envisaged as the
foundation of the Panchayati Raj System.
b)Au n i f o r mt h r e e -tier structure of panchayats at village (Gram
Panchayat —GP), intermed iate or block (Panchayat Samiti —
PS) and district (Zilla Parishad —ZP) levels.
c)All the seats in a panchayat at every level are to be filled by
elections from respective territorial constituencies.
d)Not less than one -third of the total seats for membership as well
as office of chairpersons of each tier have to be reserved for
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8e)Reservation for weaker castes and tribes (SCs and STs) have
to be provided at all levels in proportion to their population in the
panchayats.
f)To supervise, d irect and control the regular and smooth
elections to panchayats, a State Election Commission has to be
constituted in every State and UT.
g)The Act has ensured constitution of a State Finance
Commission in every State/UT, for every five years, to sugge st
measures to strengthen finances of panchayati raj institutions.
h)To promote bottom -up-planning, the District Planning
Committee (DPC) in every district has been accorded
constitutional status.
i)An indicative list of 29 items has been given in El eventh
Schedule of the Constitution. Panchayats are expected to play
an effective role in planning and implementation of works
related to these 29 items.
Present scenario
At present, there are about 3 million elected representatives
at all levels of the panchayat 1/2th [of which are women. These
members represent more than 2.4 lakh Gram Panchayats, about
6,000 intermediate level tiers and more than 500 district
panchayats. Spread over the length and breadth of the country, the
new panchayats cover abou t 96 per cent of India's more than 5.8
lakh villages and nearly 99.6 percent of rural population. This is the
largest experiment in decentralisation of governance in the history
of humanity.
The Constitution visualises panchayats as institutions of self -
governance. However, giving due consideration to the federal
structure of our polity, most of the financial powers and authorities
to be endowed on panchayats have been left at the discretion of
concerned state legislatures. Consequently, the powers and
functions vested in PRIs vary from state to state. These provisions
combine representative and direct democracy into a synergy and
are expected to result in an extension and deepening of democracy
in India. Hence, panchayats have journeyed from an institutio n
within the culture of India to attain constitutional status.
This is one the biggest democracy in the world where village
level democratic structures are functioning for their development.
1.4 PANCHAYAT RAJ IN MAHARASHTRA
Local government in Maha rashtra
Local government in Maharashtra State follows the general
structure of Local Governance in India and is broadly classified intomunotes.in

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9two categories: Urban Local Governance and Rural Local
Governance.
Urban Local Governance
Urban local governance can be classified as either by
Municipal Corporation or by Municipal Council.
Municipal Corporations
Large urban areas are governed by Municipal
Corporations(also called just Corporations). The area under each
Corporation is further divided up into Wards. An individual ward or
collection of wards within a corporation sometimes have its own
administrative body called a Ward Committee.There are 26
Municipal Corporations in Maharashtra.
Municipal councils
Smaller urban areas are governed by Municipal Counci lor
Municipal Boards (also called just Municipalities). Municipalities are
further subdivided into Wards, which may be grouped together into
Ward Councils. One or more corporators are elected to represent
each ward. There are 433 municipalities in Maharash tra.
Rural Local Governance
Rural governance in India is based on the Panchayati Raj
system. It is a three tier system, with the Zilla Parishad at the
district level, Blocks at the middle level and Village Council at the
lowest level.
Zilla parishad
Zilla Parishad(commonly known as ZP) is a local
government body at the district level in India. It looks after the
administration of the rural area of the district and its office is located
at the district headquarters.
There are 33 Zilla Parishads in Ma harashtra, one each in
every district.
Panchayat samiti
Panchayat Samiti is a local government body at the Tehsil or
Taluka level in India. It works for the villages of the Tehsil or Taluka
that together are called a Development Block. The Panchayat
Sam iti is the link between the Gram Panchayat and Zilla Parishad.
There are 355 panchayat samitis or block panchayats in
Maharashtra.
Gram panchayat
Gram Panchayats are local self -government bodies at the
village level. They are a cornerstone of the Panc hayati Raj System.munotes.in

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10A gram panchayat can be set up in villages with a population of
more than five hundred. There is a common gram panchayat for
two or more villages if the population of these villages is less than
five hundred, whereupon it is called a gro up-gram panchayat.
There are 33 Zilla Parishads, 351 Panchayat Samities and
27896 Gram Panchayats in Maharashtra.
1.5 GRAM SABHA
Gram sabhas includes all the adult citizen voters of the
village. It is empowered to support or topple down the gram
panchayat body. This gr am sabha can contribute to the number of
decisions taken by the gram panchayat and can facilitate to modify
weak decisions whenever they feel. The gram panchayat can be
established for a village having a population more than 750 to
25,000. The villages hav ing less population are grouped under
group -gram sabha. The member count usually ranges from 7 to 17
depending on the strength of the village population. These form
various Committees, viz. Agriculture, Animal Husbandry, Public
Works, Social Welfare and He alth and sanitation in village Gram
Panchayat.
Gram sabhas meetings
According to Sec 6 (3) of APPR ACT, the meeting of a gram
sabha should compulsorily be held twice in a year. The
Government also notifies the two dates on which the meeting is to
be held compulsorily. The gram sabha meeting should be held on
every 14 April and 3 October. Conduct of gram sabha twice yearly
is a minimum, not maximum -Gram sabha can be convened as
and when necessary and as many times as possible, depending on
the need. In S tates like Andhra Pradesh, Arunachal Pradesh, Bihar,
Karnataka, Punjab, Sikkim and Uttar Pradesh there are statutory
provisions to hold the gram sabha two times a year, whereas in
states like Assam, Goa, Gujarat, Himachal Pradesh, Kerala,
Madhya Pradesh, T amil Nadu, Orissa, Chhattisgarh and Rajasthan
the gram sabhas are held 4 times a year. Gram sabhas are held 6
times in a year in Maharashtra.
Videographing of gram sabha proceedings
The Ministry of Panchayati Raj has advised the State
Governments and Un ion Territories that in regard to sensitive,
controversial and contentious issues such as those relating to
forest produce, land acquisition, mining & natural resources likely to
affect the traditions and way of life of the community, and on which
the cons ensual agreement of the Gram Sabha is necessary and
transparency of decision making is imperative, to make a full video -
and-audio -graphic record of all gram sabha meetings andmunotes.in

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11proceedings therein and the members present. The Ministry has
also advised the S tate Governments to retain a copy of such record
in both the Panchayat office and in the District Panchayat
Secretary's office and to issue directions to the District Collectors/
ZP/ CEOs to take necessary administrative action to enable the
gram panchayat to make and keep such records.
1.6 GRAM PANCHAYAT
AGram Panchayat is a local self -government institution at
the village or small town level in India and has a Sarpanch as its
elected head. Under British Colonial rule, the role of panchayats
were strengthened, whereas under post -independence they were
given little right of co -determination. After attempts to deal with local
matters at the national level, panchayats were reintroduced as
institutions of local self -governance in 1992. As of 2002 there were
about 265,000 gram panchayats in India. The gram panch ayat is
the corner stone of the panchayati raj system.
The Sarpanch, or elected head, has the responsibilities of
Maintaining street lights, construction and repair work of roads in
villages and also the village markets, fairs, collection of tax,
festiva ls and celebrations.
Keeping a record of births, deaths and marriages in the
village. Looking after public health and hygiene by providing
facilities for Sanitation and drinking water. Providing free education.
To organise the meetings of Gramsabha and G rampanchayat
A gram panchayat consists of between 7 and 20 members,
elected from the wards of the village, and they are called a "panch".
People of the village select a panch, with one -eighth of seats
reserved for female candidates. To establish a gram panchyat in a
village, the population of the village should be at least 500 people
of voting age.
Sources of income
The main source of income of the gram panchayat is the
property tax levied on buildings and open spaces within the village.
Other sources of income include professional tax, taxes on
pilgrimage, animal trade, grant received from the State Government
in proportion of land revenue and the grants received from the
District Councils of India –Zilla Parishad
The gramsevak / gram vikas officer is the communicator in
government and village panchayat and works for the sarpanch. The
district planning commission (DPC) is also responsible for
disbursing cash to the gram panchayat.munotes.in

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121.7 PANCHAYAT SAMITI
Panchayat samiti is a local government body at the tehsil
(taluka) level in India. It works for the villages of the tehsil that
together are called a Development Block . The Panchayat Samiti is
the link between the Gram Panchayat(village council) and the Zilla
Parishad(district board) .T h e r ea r ean u m b e ro fv a r i a t i o n si nt h e
name of this institution in the various states. For example, it is
known as M andal Praja Parishad in Andhra Pradesh, Taluka
Panchayat in Gujarat, and Mandal Panchayat in Karnataka.
Composition
Typically, a panchayat samiti is composed of ex officio
members (all sarpanchas of the panchayat samiti area, the MPs
(Rajya Sabha and Lo kS a b h a )a n dM L A s( V i d h a nS a b h a )o ft h e
area, and the Sub Divisional Officer of the subdivision), otherwise
unrepresented members (representatives of Scheduled caste and
Scheduled Tribes and women), associate members (such as a
farmer of the area, a repres entative of the cooperative societies,
and one from the agricultural marketing services sector), and the
elected members of that panchayat block (tehsil) on the Zilla
Parishad(district board).
The samiti is elected for five years and is headed by a
chair man and deputy chairman elected by the members of the
panchayat samiti.
Composition of mandal parishads
A Mandal Parishad is constituted for a revenue Mandal, as
such, both the Mandal Parishads and the revenue Mandals are
coterminous. A mandal Parishad is composed of the following
members:
Mandal Parishad Territorial constituency members.
Members of the Legislative Assembly having jurisdiction over the
Mandal. Members of the House of people having jurisdiction over
the Mandal. Members of the council o fS t a t e sw h oa r ev o t e r si nt h e
Mandal. One co -opted member, belonging to minorities. The
Mandal Parishad Territorial constituency (MPTC) members are
directly elected by the voters, whereas, the Mandal President is
elected by the MPTC members. The members a re elected for a
term of five year. The elections to MPTC s is done on political party
basis. The elections are conducted by the state election
commission. The Sarpanches of the Villages in the Mandal are
permanent invitees to the Mandal Parishad meetings.munotes.in

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13Departments
The most common departments found in a panchayat samiti
are:
Administration
Finance
Public works (especially water and roads)
Agriculture
Health
Education
Social welfare
Information Technology
Each department in a panchayat sam iti has its own officer,
most often these are state government employees acting as
extension officers, but occasionally in more revenue -rich panchayat
samiti, these may be local employees. A government appointed
block development officer (BDO) is the super visor of the extension
officers, and executive officer to the panchayat samiti and
becomes, in effect, its administrative chief over all operations.
Sources of income
The income of the panchayat samiti comes from three
sources:
Taxes levied upon land and water usage, professional taxes,
liquor taxes and others income generating programmes grants -in-
aid and loans from the State Government and the local zilla
parishad voluntary contributions.
For many of the panchayat samiti the main source of income
becomes state aid. For others, the traditional taxing function
provides the bulk of revenues. Tax revenues are often shared
between the gram panchayats and the panchayat samiti.
Functions and Powers of Panchayat Samiti
Panchayat Samiti collects all the p rospective plans prepared at
Gram HYPERLINK "http://en.wikipedia.org/wiki/Gram_Panchayat"
HYPERLINK
"http://en.wikipedia.org/wiki/Gram_Panchayat"Panchayat level and
processes them for funding and implementation by evaluating them
from the angles of financ ial constraints, social welfare and area
development. It also identifies and prioritize the issues which needs
to be addressed at block level.
1) Panchayat Samiti has to channel all development programs
which would evoke people involvement and participat ion within
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142) They have to exercise the powers for planning, executing and
evaluating their programs.
3) Panchayat Samiti has to secure firm support of the people for
which the program is implemented and continued.
4) The powers are used to make efficient use of local resources for
whole taluka.
5) The powers are utilized to sanction the budget, plans and
modification or the village level work at various locations.
6) The loans available with Development Department through
banks may be spent and recovered timely.
7) The President and Members of the Panchayat Samiti need to
include economical, social and cultural aspects of Development
Block.
8) Panchayat Samiti acts as intermediary for handing over the
activities or official progr am sanctioned by the government at
village level.
9) Block Development Officer has to supervise overall programs of
the Panchayat Samiti and keeps on reporting to the higher
authorities. He is supported with Subject Matter Specialist and
Ministerial staff at his head quarter.
10) Panchayat Samiti has to reach the grass root level with felt
need based programs to the people. It has to certain the very
specific local problems of different nature and the same have to
be presented in the form of proposals to higher authority.
1.8 ZILLA PARISHAD
The District Council or Zilla Parishad or Zilla Parishad,
District Panchayat ,or Zilla Panchaya ti st h et h i r dt i e ro ft h e
Panchayati Raj system. Zilla Parishad is an elected body.
Chairpersons or Block Pramukh of Block Samitis are also
represented in Zilla Parishad. The members of the State
Legislature and the members of the Parliament of India are
members of the Zilla Parishad.Members of the Zilla Parishad are
elected from the district on the basis of adult fr anchise for a term of
five years. Zilla Parishad has minimum of 50 and maximum of 75
members. There are seats reserved for Scheduled Caste,
Scheduled Tribes, backward classes and women. Councillors
chosen by direct election from electoral divisions in the District and
The Chairmen of all the Panchayat Samitis form the members of
Zilla Parishad. The Parishad is headed by a President and a Vice -
President.munotes.in

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15Administrative structure
The Chief Executive Officer (CEO), who is an IASofficer,
heads the administrative machinery of the Zilla Parishad. He may
also be District Magistrate in some states. The CEO supervises the
divisions of the Parishad and executes its development schemes.
Function
Provide essential services and facilities to the rural
population and the planning and execution of the development
programmes for the district. Supply improved seeds to farmers.
Inform them of new techniques of train ing. Undertake construction
of small -scale irrigation projects and percolation tanks. Maintain
pastures and grazing lands.Set up and run schools in villages.
Execute programs for adult literacy. Run libraries.Start Primary
Health Centres and hospitals in v illages. Start vaccination drives
against epidemics and family welfare campaigns. Construct bridges
and roads.Execute plans for the development of the scheduled
castes and tribes. Run ashram shala’s for adivasi children. Set up
free hostels for scheduled c aste students.
Encourage entrepreneurs to start small -scale industries like
Cottage industries, handicraft, agriculture produce processing mills,
dairy farms, etc. Implement rural employment schemes. They
construct roads,schools, & public properties. And they take care of
the public properties. They even supply work for the poor people
(scheduled tribes, scheduled caste, lower caste).
Sources of income
Taxes on water, pilgrimage, markets, etc.Fixed grant from
the State Government in proportion with the land revenue and
money for works and schemes assigned to the Parishad.The Zilla
Parishad can collect some money from the panchayats with the
approval of the government. It gets a share from the income from
local taxes.
1.9 SUMMARY:
The word "panchaya t" literally means "assembly" (ayat) of
five (panch) wise and respected elders chosen and accepted by the
local community. However, there are different forms of assemblies.
Traditionally, these assemblies settled disputes between individuals
and villages. Modern Indian government has decentralized several
administrative functions to the local level, empowering elected gram
panchayats. The Constitution visualises panchayats as institutions
of self -governance. However, giving due consideration to the
federal structure of our polity, most of the financial powers and
authorities to be endowed on panchayats have been left at the
discretion of concerned state legislatures. Consequently, themunotes.in

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16powers and functions vested in PRIs vary from state to state. This
is one the biggest democracy in the world where village level
democratic structures are functioning for their development.
1.10 SELF -STUDY:
1.Explain the three -tier system of Panchayat Raj system.
2.Explain the structure and the working of Gram Panchayat.
3.Explain the structure and the working of Panchayat Samiti.
4.Explain the structure and the working of Zilla Parishad.
5.Write short notes: -
Powers and duties of Gramsevak.
Powers and duties of Block Development Officer.
Powers and duties of Chief Executive Officer.
Gramsabha.
Royal Commission on Decentralisation (1907)
References:
Rudra Dutt, K.P. M. Sundaram, S. Chand & Company, Delhi,
2000 -“Indian Economics”.
Mishra S. K & Puri S. K., Himalaya Publishing House, New
Delhi, 2006 -“D e v e l o p m e n t a lI s sues of Indian Economy”.
Jain L. C., B. V. Krishnamurthy and P. M. Tripathy, Sage
Publications (India) Pvt. Ltd., New Delhi, 1985 -“Grass without
Roots”.
Desai vasant, Himalaya Publishing House, Mumbai, 2005 -
“Rural Development in India -Past Present and Future”.
Reddy K. Venkata, Himalaya Publishing House, Mumbai, 2001 -
Agriculture and Rural Development”.
munotes.in

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17Unit -2
LAND REVENUE ADMINISTRATION
Dr. Clementine Rebello
Unit Structure :
2.0 Objectives
2.1 Introduction
2.2 Departments of Revenue Administration
2.3 Revenue Division
2.4 Revenue Officers -their powers and duties
2.5 Duties and fu nctions of circle officers & Circle Inspectors
2.6 Talathis / Patwaris
2.7 Summary
2.8 Self-study
2.0 OBJECTIVES
Main Objective of Land Revenue Administration is;
1.To assess and collect of land revenue, collection of local cess
on behalf of loca l bodies, collection of court fees, recovery of
loans and advances, other dues of various departments, and all
other dues recoverable as arrears of land revenue,
2.To Prepare and maintain "Land Records" related to revenue
accounts,
3.To exercise the s tatutory powers endowed under the
Maharashtra Land Revenue Code, 1966, the Mamlatdar Courts
Act, the Land Acquisition Act, 1894 and various other land
reform enactments.
2.1 INTRODUCTION
The history of Land Administration dates back to the olden
days o f kings and Kingdoms. The Land Revenue was the major
source of revenue for the kings. The prosperity of the kingdom was
depending upon levy of tax and its recovery. The Minister of Vijapur
kingdom Todarmal was the founder of Ryotwari land revenue
system. T his system was introduced by Chhatrapati Shivaji Maharaj
in his "Hindavi Swaraj". This system became so popular that British
rule was compelled to adopt this system In old Bombay Province.munotes.in

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18The present system of preparing and maintaining land records is a
scientific form of Ryotwari Land Revenue System.
2.2 DEPARTMENTS OF REVENUE ADMINISTRATION
Revenue administration is divided into four separate
departments which are as mentioned below:
i.Recovery of Revenue
ii.Measuring of lands
iii.The regist ration of land alienations and
iv.Treasury
i)Recovery of Revenue -
Every person in the state comes in contact with this
department as it performs duties like issue of ration cards, caste
certificate, election duties, etc along with the revenue recov ery
work. The top to bottom order of officers working for this
department is as follows:
Revenue Minister
Secretary, Addl. Secretary Asst. Secretary etc.
Divisional Commissioners
Collectors
Sub-Divisional Officers
Tahasildars / Naib Tahasildars
Circle Inspectors/Circle Officers
Talathis/Patwaris
Kotwals
Measuring of Lands -
This department is commonly known as Survey Department.
This department deals with the measuring of land, fixing boundaries
of holdings, settling assessment of the agricult ural land. They
determine boundaries of villages, cities and towns and fixes
boundary marks. They also keep land records. Top to bottom order
of Revenue Officers of this department is as mentioned below: -
Revenue Minister
Secretary
Settlement Commission er
Director of Land Records
Dy. Director of Land Records
Superintendent of Land Records
District Inspector of Land Records
Taluka Inspector of land Recordsmunotes.in

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19Surveyor or Survey Tahasildar
Land Measurer
The registration of land alienations -
The t ransfer of land is legal and valid if the same is
registered as per provisions of Transfer of Property Act, and the
Indian Registration Act, 1908. The land transfers are registered with
the Sub -Registrar who is having his office in each Taluka.
Treasur y-
The land revenue was the main source of income of the
state. Therefore it was necessary to have treasury department on
Taluka level to deposit the amount collected by revenue officers.
During the course of time the control of treasury was taken over b y
finance department and since then this department seized to be
part of revenue department. However it is duty of collector to visit
and inspect this department as he is the head of the district
administration.
Check your progress
Q-What are the differ ent departments of Revenue Administration?
2.3 REVENUE DIVISION
For the purpose of revenue administration the Government
has divided State into 6 divisions 35 districts and 399 talukas. Each
District is divided into Subdivisions for administr ative convenience.
Each Division may consist of 4 to 5 talukas. These talukas are
further subdivided into revenue circles and circles into revenue
sazas. Sazas consist of a group of villages. Divisional
Commissioner is in charge of the "Division". District administration
is under control of Collector Officer in charge of Sub -Division is
called Sub -Divisional Officer and Tahsildar is chief officer on taluka
level. On village level Circle Inspector / Officer is head of revenue
circle and saza is under charge of a Talathi.munotes.in

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202.4 REVENUE OFFICERS: THEIR POWERS AND
DUTIES
Divisional Commissioner
In the revenue matters Divisional Commissioner is the Chief
Controlling Authority under the superintendence, direction and
control of the State Government. All the powers in respect of
revenue matters are delegated to the Divisional Commissioner.
Collector
The Collector occupies a central place in the district
administration. He is the head of the Revenue administration in the
district and acts as the coordina ting officer among all the officers of
the Government in the district. He plays a pivotal role in the
administration of the district.
The collector is empowered to convert use of land from one
purpose to another purpose. The collector is responsible in r espect
of (1) fixation, (2) collection and (3) accounting of the land revenue
of the lands which are liable to payment of land revenue.
The Collector is also responsible for the collection of fees
and taxes under various other Acts such as the Indian Sta mp Act,
the Indian Court Fees Act, the Bombay Entertainment Duty Act, the
Sales Tax Act, the Bombay Village Panchayats Act, etc. Thus the
collector and his establishment have to undertake the recovery of
such dues when neces sary as arrears of land revenue under the
provisions of various Acts. In regard to the administration of the
Indian Forests Act, the ultimate responsibility for the administration
of the Forest depart ment, so far as his district is concerned, lies
with him and the Divisional Forest Officer is his assistant for the
purpose except in matters relating to the technique of forestry.
The administration and implementation of the various land
tenure abolitio n Acts including the Bombay Tenancy and
Agricultural Lands Act, 1948 and the Maharashtra Agricultural
Lands (Ceiling on Hold ings) Act, 1961, rests with the Collector. He
is also an appellate authority to hear appeals under various
sections of these Acts.
According to the Maharashtra Agricultural Lands (Ceiling on
Holdings) Act, 1961, a particular ceiling limit has been fixe di nt h e
district. Thus the excess land has to be taken over by Government
by paying compensation and the disposal of such surplus land has
to be made by the Collector. He is empowered to award
compensation under the Land Acquisition Act. Although the powe rs
and functions under this Act are delegated to the Special Landmunotes.in

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21Acquisition Officers he exercises the control over such officers and
also takes review of the work done by them.
As a District Registrar, the Collector controls the
administration of the r egistration department in the district.
Collector also acts as the District Magistrate in case of
maintenance of Law and Order and General Administration, as
District Election Officer in case of conduct of Election. Collector
plays a key role during natu ral disaster period like flood,
earthquake, landslide, cyclone/storm damage or fire incidence. He
generally takes prompt action whenever situation arises in any part
of the district, and provides assistance either in cash or kind to the
victims according t ot h en a t u r eo fd a m a g e .
The Collector is assisted by number of officers at the
headquarters.
Resident Deputy Collector -
The Resident Deputy Collector is appointed to relive the
Collector of his ordinary routine duties. In the absence of collector
he is to look after important urgent work and to see that work of
collectorate goes on smoothly. He has to coordinate the work of
District offices with that of subordinate offices functioning at Taluka
levels and Sub -Divisional levels.
Sub-Divisional Offic er-
Officer in charge of Sub -Division is called Sub -Divisional
Officer or Dy. Collector or Asst. Collector. In revenue matter he acts
as coordinator in between Tahsildars of his Sub -Division and the
District Collector. The Sub divisional Offices are a re plica of
Collectorate in the matter of number of sections. The Sub -Divisional
Officer is the first appellate authority in respect of revenue matters
handled by his subordinates Sub Divisional Officer is also the Sub
Divisional Magistrate having jurisdictio n over his division.
The Sub -Divisional Officer is also the Returning Officer for
Assembly constituencies and he is the Asst. Returning Officer for
the Parliamentary Constituency in his sub -division.
Tehsildar and Naib Tehsildars -
The officer in -charge of a tahsil is called Tahsildar. Tahsildar
has powers of coordination and distribution of work among Circle
Revenue Officers, the Tehsildar and Naib -Tehsildars are
responsible for collection of land revenue and other dues payable
to the Government. The yr e m a i ni nt o u c hw i t ht h es u b o r d i n a t e
revenue staff. They observe the seasonal conditions and condition
of crops. They listen to the difficulties of the cultivators. The
Tehsildar and Naib -Tehsildars extensively tour the areas in theirmunotes.in

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22jurisdiction. They decide urgent matters on the spot, like correction
of entries in the account books, providing relief to the people faced
with natural calamities, etc. They also sit in the courts to settle
disputes in connection with Land Reformation Acts, entries in
accou nt books, etc. Any application regarding land revenue is to be
addressed to the Tahasildar. Tahasildar takes decision on the
application after due enquiry. For elections to the Vidhan Sabha, a
Tahsildar is, invariably be appointed as Assistant Returning Of ficer
for the constituency / constituencies falling in his Tahsil.
They hold the powers of Executive Magistrate.
Circle Inspector / Officer
Circle Inspector is village level Revenue Officer working
under Tehsildar and Naib Tehsildar. The Circle Offic er and the
Circle Inspector in charge of a circle shall exercise such powers
over the Talathi in his circle and perform such duties and functions
as may from time to time be prescribed.
Check your progress
Q-What are the powers and duties of Revenue officers?
2.5 DUTIES AND FUNCTIONS OF CIRCLE OFFICERS
AND CIRCLE INSPECTORS
1) Subject to the orders of the Tahsildar or, as the case may be,
Naib -Tahsildar, every Circle Officer and Circle Inspector shall be
responsible for the supervision of the revenue administration and
the land records of every village in their circles. They shall, from
time to time in each year inspect every village in their respective
jurisdiction, get themselves acquainted with the qualifications and
conduct of the vill age officers and the state of crops and the
condition of the people in such village and report promptly to the
Tahsildar or, as the case may be, the Naib -Tahsildar, any matter
requiring orders of superior officers and shall see that the orders
passed by s uch officers are properly and expeditiously
implemented.
2) In particular, the Circle Officer and the Circle Inspector shall -(a)
inspect the works for which loans have been granted to themunotes.in

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23villagers under the provisions of the Agriculturists Loans Act, 1883,
or the Land Improvement Loans Act, 1884, or as the case may be
the Bombay Non -Agriculturists' Loans Act, 1928 to ascertain -
i)that the tagai advances have been duly recorded in the Record
of Rights;
ii)that they have been spent for' the purpos es for which they were
given; and
iii)that the conditions attached to the grant of such advances are
properly observed by the persons concerned;
(b) inquire into the collection of Government revenue, ascertain the
reason why such revenue is in arrears ,e x a m i n et h eT a l a t h i 's
balance and ascertain that remittances to the treasury are duly
made;
(c) test a reasonable number of receipts in respect of land revenue
paid and other dues by oral examination of the persons concerned
and by comparison with the ledger; and, where any corrections are
made by them in the receipt books, initial against such corrections
and record a note at the end of a village ledger stating by their
numbers which accounts have been verified;
(d) note down the dates of their visi ts and inspections in the diary
and visit book of the Talathi, as well as in their own diaries;
(e) examine the diary of the Talathi, make remarks in the column
provided for the purpose and note them briefly in his own diary;
(f) assist in the preparat ion of annual valuation of crops of every
village in their circle; and satisfy themselves that due publicity has
been given to orders regarding suspension or remission of land
revenue;
(g) during the period commencing from 1st July and ending on 30th
September, compile taluka statistical return and do such
officeworks as the Tahsildar or as the case may be Naib -Tahsildar
or the District Inspector of Land Records may direct;
(h) verify whether all fragments have been duly entered in the
Record of Rights and notices of entries in the register of mutation in
the prescribed form given to the parties concerned as required by
sub-section (2) of Section 6 of the Bombay Prevention of
Fragmentation and Consolidation of Holdings Act, 1947 ;
(i) check whether an y transactions have taken place in
contravention of the provisions of the relevant tenancy law and the
Bombay Prevention of Fragmentation and Consolidation of
Holdings Act, 1947, and whether such transactions have beenmunotes.in

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24reported to the Tahsildar for action; and whether, in making the
entries in respect of such transaction in the Record of Rights, the
procedure laid down by Government in that behalf, if any, has been
duly followed;
(j) inquire whether a tenant actually cultivating land is the same as
entere d in the Record of Rights ; and whether all cases of
discrepancies, if any, are duly reported to the Tahsildar ;
(k) check whether landlords issue receipts as required by the
provisions in the relevant tenancy law, and verify whether any
landlord recover s rent in excess, or in the form of labour or service
in contravention of the provisions of such law, and whether all such
cases are reported to the Tahsildar for action;
(l) check whether any tenant has subdivided or sub -let the land and
where in any ca se the tenant has so subdivided or sub -let the land,
report such cases to the Tahsildar for action;
(m) check building operations to see whether any law for the
prevention of urban development has been contravened, and if so,
see what further steps have been taken;
(n) verify, periodically, the non -agricultural plots, the plots in the
gaothan leased or granted, the lands given out on special terms
and the lands vesting in the village panchayat with a view to
detecting encroachments and breaches of such terms;
(o) inspect all inam lands and report cases of sales, leases and
transfers of land made in contravention of the terms of the grant or
of the provisions of the Code or any law for the time being in force;
(p) check whether the conditions attache dt og r a n t so fl a n d so r
impartible or inalienable tenure are properly observed by the
grantees;
(q) perform as many crop cutting experiments as required for the
purpose of fixing annewari of crops and assessing the rents under
the relevant tenancy law;
(r) check whether the register showing cases of discrepancy in
maps, village atlas, and the Record of Rights as compared to the
actual state of things in the holdings, which require regularisation is
maintained up -to-date;
(s) when no special staff for the purpose has been appointed, verify
the food stocks in Government godowns in their circle, by making a
percentage check of bags of each kind of grain, and inspect fair
price shops;munotes.in

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25(t) check the list of survey numbers situated on the banks of rivers
and nallas, which are subject to alluvial and diluvial changes;
(u) ensure that action is taken in time to revise the assessment, the
guarantee period of which is about to expire and renew leases
before the expiry of their respective terms;
(v) report t o the Tahsildar or, as the case may be, Naib -Tahsildar,
the auctionable items like melon beds and eksali leases; and
(w) report to the Tahsildar, the Sub -divisional Officer and the
Collector the occurrence of natural and other calamities such as
flood, f ire, frost, hailstorm, locust swarm, epidemic diseases relating
to human beings or animals and failure of crops in villages in their
circle and send a rough estimate of loss due to such calamities.
3. Duties of Circle Officers and Circle Inspectors in ti me of scarcity -
Every Circle Officer and Circle Inspector shall watch every season
for detecting the signs of impending scarcity and be ready to report,
whenever called upon, the crop condition of their circle. On receipt
of information that the crops of any village are adversely affected by
the unfavourable nature of the season, or excessive or insufficient
rainfall or any other reason, they shall forthwith visit that village and
make requisite enquiries and observations and report the result of
such obse rvations to the Tahsildar or, as the case may be, Naib
Tehsildar. Whenever any scarcity or conditions akin to scarcity, are
reported, the Circle Officer and Circle Inspector shall perform such
functions relating to relief measures as may be entrusted to th em
by the State Government or by their superior officers.
4. Circle Officer and Circle Inspector to intimate their tour
programme Except during the period commencing on the 1st day
of July and ending on the 15th day of September, every Circle
Officer, or as the case may be, Circle Inspector shall send every
Saturday to the District Inspector of Land Records and the
Tahsildar, as the case may be, Naib -Tahsildar, a postcard showing
the villages in which he expects to be working on each day of the
following fortnights.
5. Touring -Every Circle Officer and Circle Inspector shall ordinarily
tour for twenty days in a month during the fair season (i.e., the
period commencing on the first day of October and ending on the
30th day of June) and for not less than thirty days in the aggregate
during the period commencing o n the 1st day of July and ending on
the 30th day of September. They shall make at least fifteen night
halts outside their circle headquarters in each month during the fair
season and six night halts during other seasons. If, for any reason
they are prevent ed from attaining this standard in any month they
shall make up the deficiency in the month following.munotes.in

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266. Diary of Circle Officer and Circle Inspector -Every Circle Officer
and Circle
Inspector shall submit in such form as may be determined in
that beh alf by the State Government, a diary monthly to the
Tehsildar or, as the case may be, the Naib -Tahsildar who shall
forward it with remarks through the District Inspector of Land
Records to the Sub -divisional Officer by whom it shall be returned
also throu gh the Tahsildar. The Circle Officer, or as the case may
be, the Circle Inspector shall not ask for orders on any point in the
diary but shall make a separate report in the matter after making a
note in the diary about the circumstances under which such re port
is made. An office copy of the diary containing copies of all remarks
made by the superior officers shall be kept by the Circle Officer or,
as the case may be, the Circle Inspector in his office. This entry of
remarks shall be invariably made before f inally returning the diary
of record to the Tehsildar. The office copy of the diary shall be
produced for perusal of any superior officer on his visit for
inspection.
7. Inward and outward register -Every Circle Officer and Circle
Inspector shall keep a single register for inward and outward
correspondence in the form prescribed by the State Government for
the purpose, the pages of which shall be stamped and numbered at
the taluka office on the 1st day of August.
8. Circle Officer and Circle Inspector to reside in their respective
Circle -Every Circle Officer and the Circle Inspector shall reside in
their respective circles in a village fixed by the Collector.
9. Report about unauthorised diversion of land -Every Circle
Inspector and Circle Officer shall be responsible for detecting and
reporting to the Tahsildar or, as the case may be, the Naib -
Tahsildar every case of conservation of use of land from the
purpose for which it was assessed to another. The report shall be
accompanied by a sketch map sh owing the extent of the land, the
use whereof is so converted, its assessment and proposals
regarding its re -assessment on the basis of prescribed rates and
other factors governing the re -assessment.
10. Inspection of sub·divisions -Every Circle Officer and Circle
Inspector shall inspect the register showing the newly formed sub -
divisions and amalgamated sub divisions and report to the District
Inspector of Land Records through the Tahsildar every year,
information about the number of subdivisions to be measured
through the Tahsildar.
11. Duties of Circle Officer and Circle Inspector while on inspection
-Whenever a Circle Officer and Circle Inspector visits a village formunotes.in

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27inspection, he shall select survey numbers of both cultivated and
waste lands in d ifferent parts of the village for inspection in such
manner as to cover within one year all varieties of crops grown in
the village. In every five years or such longer period not exceeding
ten years as the Collector may determine having regard to the size
of the circle, each survey number shall be inspected at least once,
in order to avoid the recurrence of errors and misunderstanding on
the part of the Talathi and to ensure that the Talathi shall really
inspect the survey number. The Circle Officer and Cir cle Inspector
shall inspect holding to test the recording of hissas and tenancies,
the entry of fruit trees, and other valuable trees and details of
irrigation works in the record of rights and crop statement entries of
areas under crops in the crop statem ent and the maintenance of
village map.
12. Inspection when Talathi has failed to fill in crop statement -
Where the Circle Officer or the Circle Inspector finds at the time of
his visit to a village that the Talathi of the village has not duly filled
inthe crop statement, he shall record that fact in his diary with the
substance of the Talathi's explanation and shall inspect any
selected survey numbers with the Talathi who shall record the
result of the inspection in the crop statement.
13. Crop state ment, etc. to be kept in Chavdi -The Circle Officer
and the Circle Inspector shall ensure that crop statement and forms
of all other land records and maps prescribed for a village under
Section 156 of the Code are kept in the Chavdi.
14. Registration of double crops and crop mixtures -Every Circle
Officer and Circle Inspector shall during inspection give careful
attention to the correct registration of double and mixed crops.
Where two crops one after the other, are sown and reaped in the
same area in t he same year, each shall be credited with such full
area. Where on account of the failure of the crop sown first, a
second crop is sown, such second crop only shall be registered. In
mixed crop of all kinds, the area shall be apportioned between each
varie ty of the crop with as great an accuracy as possible.
15. Registration of fallow and other lands -Every Circle Officer and
Circle Inspector shall
(i) Verify whether any land is lying uncultivated for two or more
consecutive years through the default of the landlord or the tenant
and report such cases to the Tahsildar or, as the case may be, the
Naib -Tahsildar;
(ii) Cause to be registered in the crop register, all lands which have
been actually sown; irrespective of whether there is a yield of crops
or not, and all fallow lands and the areas there of;munotes.in

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28Provided that no such registration shall be necessary -
(a) In the case of dry crop lands, if the area is not more than 0.1012
hectare; (b) in the case of garden land, of the area is not more than
0.025 3 hectare; and (c) in the case of crops sown in the Pot Kharab
lands:
Provided further that whether on account of the failure of any
variety of crop sown in any land fresh sowing of another variety of
crop has been made in that land, the crop which is so wn afresh
shall be registered in the crop register.
16. Inspection of lands -The Circle Officer and the Circle Inspector
shall detect all encroachments and unauthorised occupation of any
land which is the property of the State Government and shall
inspe ct all waste lands disposed of in accordance with the rules
regulating the disposal of waste land with a view to verifying
whether they are brought under cultivation and whether the
conditions subject to which they were granted have been fulfilled by
the g rantee. Where in any case the Circle Officer or the Circle
Inspector detects encroachment on any lands which are the
property of the State Government or detects unauthorised
cultivation, he shall forthwith report those cases to the Tahsildar for
necessary action.
17. Inspection of boundary and survey marks -It shall be the duty
of the Circle Officer and the Circle Inspector to inspect the
boundary and survey marks (not being those under the control of
the Forest Department).
18. Repairs to boundary and survey marks -The repairs to
boundary and survey marks for which the State Government is
responsible shall be made by the Circle Officer and Circle Inspector
at Government cost.
19. Report to District Inspector of Land Records in certain cases -
When t he Circle Officer or, as the case may be, the Circle Inspector
cannot fix a boundary or survey mark without the field book, or if he
is in doubt as to how to deal with any case, he shall report the
matter to the District Inspector of Land Records for order s.
20. Inspection of live -stock return -
(1) Every Circle Officer and Circle Inspector shall check the entries
in the live -stock return prepared by the Talathi as hereinafter
provided, namely: -
(i) In villages having less than five hundred population.
(ii) In villages having more than five hundred but less than one
thousand population.
(iii) In villages having more than one thousand populationmunotes.in

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29Checking shall be made by house -to-house visitation,
supplemented by inquiry from the residents in the villa ges
concerned and by frequent references to the previous returns.
Where all entries are not checked, the entries not checked during
any visit to the village shall be selected for checking in the
subsequent visit to that village. The Circle Officer or, as t he case
may be, the Circle Inspector shall note in his diary, the serial
number of the first and the last of the entries checked.
(2) Every Circle Officer or, as the case may be, Circle Inspector
shall show in his diary the number of entries checked, the number
of entries found incorrect and the number and kind of errors
detected. Whenever any errors are to be corrected, he shall do so
in red ink by bracketing the error and inserting the correct entries by
interlineation or, side notes or, by inserting en tirely fresh entries,
and authenticate such interlineations, side notes or, as the case
may be, fresh entries by his signature. Where any gross
carelessness is noticed, he shall take the Talathis explanation and
forward it to the Tahsildar for orders.
(3) Every Circle Officer and Circle Inspector shall take note of the
increase or decrease in the figures of the census of Ii ve -stock of
different kinds and shall inquire into causes thereof and record the
explanation given thereof by the Talathi.
21. Reco rding sources of water supply -Every Circle Officer and
Circle Inspector shall cause to be indicated, by appropriate
symbols, in the village map prepared in accordance with Section
156 of the Code, all wells, bandharas and tanks in all holdings in
the vil lage and report the matter to the District Inspector of Land
Records.
22. Inspection of sources of water supply -Every Circle Officer and
Circle Inspector shall frequently check quinquennial register of
water supply maintained by the Talathi and visit w ells and other
sources of water supply in the gaothan and wells, tanks and
bandharas in all holdings in the village for testing the said register.
If the entry in the register is found to be correct, the Circle Officer
or, as the case may be, the Circle In spector shall initial against it
and if the entry is not correct, he shall correct it in red ink.
23. Circle Officer and Circle Inspector to perform functions
entrusted to them by
Collector -Without prejudice to the foregoing provisions, every
Circle Officer and Circle Inspector shall, subject to orders of the
State Government, perform such other functions relating to the
revenue and general administration of the district for which the
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30Collect or and shall carry out such special and general directions as
may be given by the Collector in that behalf.
2.6 TALATHIS / PATWARIS
Whereas, the collector is regarded as the pivot of the district
administration, the Talathi is the representative of G overnment at
the village level. He has usually one to five villages in his charge.
His local knowledge is so extensive that there is hardly any
information about the village and its occupants of which he is not
aware or of which he cannot make a guess. As such, he is viewed
as the eyes and ears of the Collector. The duties of the Talathi
includes field inspections, recording of crops, revision reports
relating to mutations, partitions, recovery of revenue or rents, and
all amounts recoverable as arrears of land revenue, preparations
and maintenance of the "Records of Rights". He is also required to
assist in providing relief to agriculturists in distress or in census
operations. It is also the duty of a Talathi to prepare, whenever
called upon by any superio r revenue or police officer of the taluka
or district to do so all writings connected with the concerns of a
village which are required either for the use of the Central or State
Government or the public, such as notices, reports of inquests, and
depositio ns and examinations in criminal matters.
Duties and function of Talathis are specified in various
sections of the code and the rules thereunder. Some of the sections
and rules are as follows: -
Under Section 44 Sub -Section (4) The person to whom (Non
Agricultural) permission is granted or deemed to have been granted
has to inform the Tahsildar in writing through the village officers
(Talathi) the date on which the change of user of land commenced.
Talathi has to inform to Tahsildar, the change of use of land within
three days on receipt of information received to him by person
concerned. Section 76 Section
Every revenue officer and every Talathi receiving payment of
land revenue shall, at the time when such payment is received by
him, give a written rec eipt for the same.
Check your progress
Q-Write short note on Talathis / patwaris.munotes.in

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31Maharashtra Land Revenue Code 1966:
One of the objectives of land revenue administration is to
recover the revenue. So it is obvious that failure to pay arrears o f
land revenue makes the holding liable to forfeiture. On forfeiture the
occupancy ceases to be property of the occupant under section 72
of MLR Code 1966. The forfeited land shall not change hands by
way of inheritance or by will. Under section 36 A, the land of a
Tribal cannot be transferred in favour of any non -Tribal without
permission of State Government and/or Collector as the case may
be.
Bombay Tenancy and Agricultural Lands Act, 1948:
To gain maximum revenue from the land in India the British
rulers introduced three major forms of land settlements namely
Zamindari, Ryotwari and Mahalwari. Under the influence of these
systems actual cultivators turned into tenants. These land system
created intermediary between the State and the actual tillers of the
soil. These intermediaries had no interest in improvement of the
land. Against this background intermediary interests were abolished
by the Government by framing policy "Land to the tillers" In the
Maharashtra under section 32 of the Bombay Tenancy a nd
Agricultural Lands Act, 1948 provides compulsory transfer of
ownership rights of tenanted lands to the tenants from 1st April
1957 which is known as the "Tillers' Day". There is complete sale
and purchase on the tiller’s day. The title of landlord passe s
immediately to the tenant on the tiller’s day. The tiller who
purchased the land under this act is classified as an Occupant
Class II. The land of Occupant Class II is heritable but transfer of
land is valid subject to fulfilling conditions imposed by th e
Government.
No land purchased by tenant under section 32, 32F, [32I, 32
O, 33 C, or 43 ID or sold to any person under section 32 P or 64
shall be transferred by sale, gift, exchange, mortgaged, leased or
assignment, without the previous sanctioned of t he collector.
Sanctioned is not required when land is to be mortgaged in favour
of Government.
The collector may grant permission for transfer of land in any
of the following circumstances, namely: -
That the land is required for agricultural purpose by industrial
or commercial undertaking in connection with any industrial or
commercial operations carried on by such undertaking;
That the transfer is for the benefit of any educational or
charitable institution;
That the land is required by a co -opera tive farming society;munotes.in

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32That the land is being sold in execution of a decree of a Civil
Court or for the recovery of arrears of land revenue under the
provision of the code;
That the land is being sold bonafide for any non agricultural
purpose;
That the land is being sold by a land owner on the ground that –
i. He is permanently giving up the by profession of an agriculturist,
or
ii. He is permanently rendered incapable of cultivating the land
personally;
That the land is being gifted in favour of -
i. The bodies or institution mentioned d in section 88A and clauses
a& b of section 88B or ii. A member of landowners family;
1) That the land is being exchanged -
i.With the land of equal or nearly equal value owned and
cultivated personally by the m ember of the same family; or
ii.With the land of equal or nearly equal value situate in the same
village owned and cultivated personally by another land owner
with a view to forming compact block of his holding or with view
to having better management o ft h el a n d :
Provided that, the total land held and cultivated personally by
any of the parties to the exchange whether as a owner or tenant or
partly as does not exceed the area as a result of exchange;
i)That the land is being leased by a landowner who is a minor; or
a widow or person subject to any physical or mental disability
or the member of the armed forces or among the land owners
holding the land jointly;
ii)That the land is being portioned among the heirs or survivors of
the deceased l and owner;
iii)That the land is being mortgaged in favour of society registered
or deem to be registered under the Maharashtra Co -op
Societies Act 1960 for raising a loan for paying the purchase
price of such land.
iv)That the land is being transferre d to the person who by reason
of acquisition of his land for any development project has been
displaced and requires to be resettled.
Where sanctioned for sale of land given in the circumstances
specified in the clauses a, b, c, e, or f it shall be subje ct to the
condition of the land owner paying to the State Government a
nazrana equal to 40 times assessment of the land.
In the case of portioned sanctioned under clause ‘j’ it shall
be subjected to the condition that the are allotted to each sharermunotes.in

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33shall not be less than the unit specified by the State Government
under clause c of sub section I of sub -section 27.
Transfer to non agriculturist barred under Section 63
No sale, gifts, exchange or lease of any land shall be valid in
favour of person who is not an agriculturist. However collector may
grant permission for transfer under the below mentioned conditions:
a)Such a person bona fide requires the land for a non agricultural
purposes; or
b)The land is required for the benefit of an industrial or
commercial undertaking or an educational or charitable
institution; or
c)Such land being mortgaged, mortgage has obtained from
collector a certificate that he intends to take the profession of an
agriculturist and agrees to cultivate the land persona lly; or
d)The land is required by co -op society; or
e)The land is required for cultivating it by a personally by a
person, who, not being an agriculturist, intends to take to the
profession of agriculture and to whom collector has given
certificate that such person is intend to take to the profession of
agriculture and is capable of cultivating land personally; or
f)Such land is being sold in execution of decree of a civil court, or
recovering arrear of land revenue.
Transfer to non agricultur ist for bonafide industrial use:
No permission is required to sell the land to the person who
may or may not be an agriculturist for the purpose of bonafide
industrial use if the land situated within the industrial zone of a draft
plan or final regional p lan or draft of final town planning scheme
prepared under the MRTP Act 1966 and the area where no such
plans or scheme exists.
The Bombay Prevention of Fragmentation and Consolidation of
Holdings Act, 1947 :
Under this act government is empowered to dec lare the area
as a “local area” for determine minimum size of any class of land
that can be cultivated profitably as a separate plot. The size of the
land so determined is called standard area. Fragments means plot
of agricultural land of less extent than the appropriate standard
area determined for the local area.
Under section 7:
“Fragment” is not allowed to transfer except to the owner of
a contiguous survey number or recognized sub -division of survey
numbers. Also no land shall be transferred so as t o create
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34Under section 8:
No land in local area shall be transferred or partitioned so as
to create fragment.
Under section 27:
There is ban on transfer of land, execution of awards and
decrees during the continuance of the consolidation of holdings.
Under section 31:
There are restrictions on alienation and sub division of
consolidated holdings.
Maharashtra Agricultural land Ceiling on Holding Act, 1961
The basic objective of fixation of ceiling on landholdings is to
acquire land above a certain level from the present landholders for
its distribution among the landless. It is primarily a redistributive
measure based on the principle of socio -economic justice.
This act is restricting the size of holdings which a person or
family c an own. Acquisition of land in excess of the ceiling is
prohibited. Land rendered surplus to the ceiling is taken over by the
state and distributed among the weaker sections of the community.
Any person or family cannot hold land in excess of ceiling area
fixed on 26th September 1961. Person or family can not transfer
surplus land until the land in excess of the ceiling area is
determined under the act.(Section 8) A person possessing land in
excess of ceiling area can not acquire land by transfer. (Sectio n9 )
The land held by individual or the family of the Maharashtra State
or the part of India is to be taken into consideration while
calculating the ceiling area. For fixing ceiling areas lands have been
classified in five classes as detailed below
Ceiling Area Classo fL a n d
Hectares Acres
Land with assured supply of water for irrigation
and capable of yielding at least two crops in a
year7-28-43 18
Land which has assured supply of water for only
one crop.10-92-65 27
Land which has un -assured sup ply of water for
only one crop.14-56-86 36
Dry Land situated in Mumbai Sub Urban District
and Districts of Thane, Raigad, Ratnagiri,
Sindhudurg, Bhandara, Gadchiroli, Sironcha
talukas of Chandrapur District which is under
paddy cultivation for continuo us period of three
years.14-56-86 36
Dry Crop Lands other than all above lands. 21-85-29 54munotes.in

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35The Maharashtra Co -op Act, 1960 : While taking loan from
co-operative society member is furnishing undertaking to the
society that he is mortgaging his own agr icultural land against the
said loan amount. Under section 48, a charge on land continues
until the whole debt, due to the society is satisfied.
Transfer of Property Act, 1882
Section 52 of the Transfer of Property Act provides that
during the pendency of any litigation affecting the immovable
property it can not be transferred or otherwise dealt with by any
party to the suit so as to affect the rights of the other party under
any decree or order which may be made therein.
Registration Act, 1908
i)Section 17 of the Registration Act, 1908 lays down different
categories of documents for which registration is compulsory.
The documents relating to the following transactions of
immovable properties are required to be compulsorily
registered; Instruments of gift of *immovable property
ii)Lease of immovable property from year to year or for any term
exceeding one year or reserving a yearly rent.
iii)Instruments which create or extinguish any right or title to or in
an immovable property of a value o fm o r et h a no n eh u n d r e d
rupees.
*“Immovable property includes : “Land, buildings, hereditary
allowances, rights to ways, lights, fisheries or any other benefit to
arise out of land, and things attached to the earth, or permanently
fastened to any thing which is attached to the earth, but not
standing timber, growing crops nor grass.”
Under section 49 of the above act, if the registration of the
above transactions are not made the transactions are to be treated
as a null and void.
Wakf Land
Wakf is a permanent dedication of movable or immovable
properties for religious, pious or charitable purposes as recognized
by Muslim Law. No transfer of immovable of a wakf, by way of sale
or mortgage, exchange or lease for period of exceeding three years
is vali dly allowed without previous sanctioned of the Wakf Board.
Trust Lands
These lands attract the provisions of the charitable Trust
Acts. The trustees are competent to dispose of the trust property
exercising the powers vested in them by the Trust Deed.munotes.in

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362.7 SUMMARY
The Land Revenue was the major source of revenue for the
kings. The prosperity of the kingdom was depending upon levy of
tax and its recovery. The Minister of Vijapur kingdom Todarmal was
the founder of Ryotwari land revenue system. This sy stem was
introduced by Chhatrapati Shivaji Maharaj in his "Hindavi Swaraj".
This system became so popular that British rule was compelled to
adopt this system. Every person in the state comes in contact with
this department as it performs duties like issu e of ration cards,
caste certificate, election duties, etc along with the revenue
recovery work. It is duty of collector to visit and inspect this
department as he is the head of the district administration.Tahsildar
has powers of coordination and distribu tion of work among Circle
Revenue Officers, the Tehsildar and Naib -Tehsildars are
responsible for collection of land revenue and other dues payable
to the Government. Talathi is viewed as the eyes and ears of the
Collector.
2.8 SELF -STUDY:
1.What are t he powers and duties of revenue officers?
2.What are the duties of circle officers and circle inspectors?
3.Write in short about the different land ceiling acts in
Maharashtra 1961.
4.Write short note on Bombay Tenancy and Agricultural Lands
Act, 1948’.
5.Explain the functions and duties of Talathis.
6.Write in short the main objective of Land Revenue
Administration.
References:
www.gov.nic.inHYPERLINK "http://www.gov.nic.in/"
Rudra Dutt & K.P.M. Sundaram, S. Chand & Co mpany, Delhi,
2000 -“Indian Economics”.
Reddy K. Venkata himalaya Publishing House, Mumbai, 2001 -
“ Agriculture and Rural Development”.
Desai Vasant, Himalaya Publishing House, Mumbai, 2005 -
Rural Development in India -Past Present and Future”.
Mish ra S. K & Puri V. K., Himalaya Publishing House, New
Delhi, 2006 -“ Development Issues of Indian Economics”.
munotes.in

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37Unit -3
RURAL ECONOMY
Dr. Clementine Rebello
Unit Structure :
3.0 Objectives
3.1 Introduction
3.2 Concept of Agriculture
9.2.1 Types of farming
3.3 Role of Agriculture in Rural Development
3.4 Types of Land Holding
3.5 Concept of Agricultural Labourers
3.6 Reasons for Increase in the Number of Agricultural
Labourers
3.7 Problems of the Agricultural Labourers
3.8 Measures to Solve the Problems of the Agricultural
Labourers
3.9 Summary
3.10 Self-Study
3.0 OBJECTIVES:
1)To study basically the Nature of the Agriculture, Types of Land
Holdings and agricultural labourers.
2)To study the Role of Agricultural Occupation in Rural
Development.
3)To understand the problems of the Agricultural Labourers and
Suggest measures for the same.
3.1 INTRODUCTION
Agriculture is looked upon as the oldest occupation in the
world. Since the ancient period agriculture is looked upon as the
source of livelihood. Out of the total population of India 68% live i n
villages. The main occupation of this population is agriculture. So
India is regarded as Agricultural Land. The requirements of the
basic needs like food -grains and vegetables, fruits are available
through agriculture. The raw material needed for the ind ustries in
the Indian economy is obtained through agriculture only. Out of themunotes.in

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38total labour available in the country 65% labour gets work from
agricultural operations. The main occupation of the people in the
rural India is agriculture. Agriculture has a m ajor share in the
countries national income.
3.2 CONCEPT OF AGRICULTURE
India’s main occupation is agriculture. Majority population’s
occupation is agriculture and operations related to it. Indian
agriculture is very peculiar. It can be explained as f ollows.
1) Indian agriculture is devoid of any of the consolidation of
Indian agriculture is not defective because of its nature of land
holding pattern.
2) If we compare other occupations and agriculture the utilization
of resources in agriculture is very less.
3) As majority population of the country’s population depends on
agriculture, there is more stress on the agriculture.
4) Indian agricultural production is very less compared to the
countries agricultural production in the world.
5) India n agriculture is seasonal so partial unemployment,
disguised unemployment is seen on large scale in this sector.
6) Indian agriculture is based on traditional methods, so factors
necessary to increase the agricultural production is less.
7) Indian agri cultural land has become infertile due to continuous
usage of same cultivating pattern everywhere and every time.
8) Indian agriculture depends on the natural rainwater and so the
favourable and unfavorable conditions affect this occupation.
Depending o n nature is one of the characteristic features of
Indian agriculture.
9) One more characteristic feature of Indian agriculture is its
barren land. Out of the total land available for agriculture most
of the land is kept barren. This barren land can be b rought
under cultivation.
10) Indian agricultural land is subdivided and fragmented. Illiteracy
amongst the farmers, their disposition, law of inheritance in
India, improper implementation of the laws in existence are
some of the reasons.
11) Indian f armers are illiterate and most of the conditions of the
farmer’s economic status is not so good.
12) The profit of the agricultural production does not reach the
farmers but the sellers of this agricultural production and the
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3913) There are lots of middlemen in the Indian trading system as it
is not perfect. The result is that the Indian agricultural trading
system (sales and purchase) system has been corrupted.
14) Food grains production is more in the Indian a gricultural
sector. Production of commercial crops proportion is very less.
15) Indian agriculture still uses traditional methods of agriculture.
But to a small extent scientific method is used to increase the
agricultural production.
3.2.1 Types of farming
As India is a land of geographical diversities there are
variations in the type of farming. There are different types of
farming existing all over India. They are as follows.
1) According to the size:
The size of the farm is taken into consider ation for cultivation
and planting. Accordingly there are three types of farming.
a)Small Farming
b) Medium Farming
c) Large Farming
Due to geographical diversity and variations in the soil types
the size of the farm is changeable.
2) According t o the price of the agricultural productivity:
The agricultural product produced also decides the type of
farming. It can be divided into types.
a) Specialized Farming -When, income is generated by taking only
one specific crop it is called specialized fa rming.
b) Normal Farming -When, income is generated by growing
different types of crops then that type of farming is called normal
farming.
3) Nature of the Occupation:
While adopting the farming occupation the production
purpose and its usage decide t he type of farming. It is divided into
two types.
a)Farming as a source of livelihood -When farming is done as a
source of livelihood; the production obtained is used only for the
family consumption. This type of farming is called livelihood
farming.
b)Commercial Farming -In this type of farming the production is
taken only for selling in the market. Profit is the only motive
behind this type of farming.munotes.in

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404) Organized Farming:
Agricultural occupation is a very wide concept. This
occupation is a n organized nature of work and is divided into six
types. They are as follows.
A) Individual Farming:
In this type the farming is based on personal nature or
individual type. The farmer carries the farming operations out
himself and he also takes help of his family members. This type of
farming is called individual farming.
B) Joint Farming:
In this type of farming the factors like land, labour, capital
required for the production of crops are synthesized together
equally and then the production is distributed equally amongst
them. This type of farming is called joint farming.
C) Co -operative Farming:
In this type of farming farmers come together to cultivate the
land on co -operative basis. The production is distributed on the
basis of co -operati on they have given to each other. This type of
farming is called co -operative farming.
D) Corporate Farming:
In this type of farming capital factor is utilized on a large
scale. Farming also is done on large scale. The labourers work in
the fields to e arn from farming. In -charge manager is appointed to
supervise on the labourers. To earn maximum profit is the main aim
of the capital investor.
E) State Farming:
This type of farming requires large amount of capital
investment. The government invests l arge amount of capital in this
type of farming. The government manages the farming. Paid
workers work under the observation of the management of the
government.
F) Collective Farming:
In collective farming the land does not belong to any
individual but all the farmers own it collectively and they collectively
do the farming operations. The agricultural implements used, are
their own. The farmer gets his share according to the contribution
he has done to get the production.
5) Based on Land Ownership
Depending on the availability of land factor it is of two types.munotes.in

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41A) Share Cropping:
In this type of farming the landlord provides the land required
for farming. In return the landlord is given a section. Out of the total
production excluding the pro duction from the given section to the
owner the remaining production goes to the farmer.
B) Peasant Proprietorship:
In this type of farming the required land for farming is
acquired from the government. In return a section of land is given to
the gove rnment. In the same way the land given is of conventional
in nature and can be transferred.
6) Nature of Labour
There are different types of works to be done in farming.
Depending on the availability of labour there are two types of
farming. They are as follows.
A) Family farming:
There are different types of farming operations while
cultivating the land. The farmer takes help of his family members to
do the labour work in the farming operations.
This type of farming is called family farming.
B)Labour Farming:
In this type of farming the agricultural operations are done
with the help of paid labourers. The labourers are given wages in
return of the work done on the farms. The above type of farming
cannot be strictly practiced. The agricultural o ccupation is very
complicated.
3.3 ROLE OF AGRICULTURE IN RURAL
DEVELOPMENT
Mahatma Gandhi had said that agriculture is the source of
livelihood of Indian people. People practicing agriculture live in
villages. If the villages are to be developed pre ference has to be
given agricultural development and its allied activities and
subsidiary occupations.
Countries economic development depends on agricultural
development. Agriculture is the base of countries economy.
Agriculture contributes to around 43% in the national income.
Agriculture plays an important role in the economic development.
As modernization takes place dependency on agriculture
decreases. The raw material required for industrial development is
supplied by the agricultural sector. Agricul ture plays an important
role to meet the needs of the increasing population and its demandmunotes.in

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42for food supply, national income in the economy, raw material
required for industries, to help to increase employment.
Agricultural sector plays an important role in the economic
development. It is as follows.
Source of Livelihood of Majority of Population:
Out of total India’s population more than 70% population
depend on agricultural sector for their livelihood. The population
depending on agricultural sector decreased by 6%. It means still
majority of population is depending on agriculture for its livelihood.
Share in the National Income:
Agricultural sector plays an important role in India’s National
Income. Out of total national income agriculture gives 4 2% of its
share. Out of the total population of the country 67% of it is
engaged in the primary sector i.e. agriculture. 12.7% engaged in
the secondary sector i.e. industries; while 20.5% population in the
tertiary sector i.e. small scale and cottage indus tries.
Economic stability:
It is said that the economic inequality amongst the
developed and developing nations in the world has increased
because of the increase in population depending on agriculture.
Out of India’s total population majority of it liv es in rural areas and
its main occupation is agriculture. This agricultural sector has
generated employment depending on agriculture and allied &
subsidiary occupations. As a result the majority rural population has
attained a state of stability.
Importa nt from the point of view of social and political:
We have to consider from the social and political point of
view when we think of agricultural sector in India. Even though it is
the farmer’s personal view regarding what to grow, where to sell;
the gover nment has declared various schemes for agricultural
development. So it has to be considered from the social point of
view. Agriculture is the main source of income for the government
also. So it is very essential to coordinate these two sources -social
and political and develop healthy relations amongst each other.
5) Fodder for Domestic Animals:
Different types of crops are grown to fulfill the needs of the
country’s population. The main produce i.e. the seeds are used to
fulfill the needs of the count ry’s food -grains demand while the
remains or sub products i.e. leaves, fodder, etc. are used to fulfill
the needs of the domestic animals. The problem of fodder is faced
on a large scale in a country like India having maximum domestic
animals. To fulfill t he needs of these domestic animals agriculture
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43Source of income to the government:
Agriculture plays an important role in the Indian economy.
Secondary and tertiary sector depending on agriculture play an
important role in the co untry’s economy. Different taxes levied by
the government on agriculture are a source of income to the
country. Agriculture is looked upon as a sure source of income to
the government.
Beneficial for industrial development:
Industries play an important role in the industrial
development of the country. The agricultural produce has a lot of
importance in the industrial development. As the agricultural sector
provides raw material throughout the year the industrial production
continues throughout the year in full fledge.
Importance in Trade:
There are two types of trades the internal and external trade.
The agricultural produce obtained from the agricultural sector plays
an important role in the internal trade of the country. Large scale of
country’s po pulation is engaged in this type of trade like to reach
the agricultural produce from the agricultural sector to the
consumer -in the same way a good consumer for the farmers
agricultural produce, help to get a proper price for the produce,
wholesalers and retailers, traders, co -operative consumers
societies, store rooms, distributing institutions, processing
industries, etc. the source of livelihood of all of these is the
agricultural produce.
In external trade the trade is done with other countries. In
this type of trade the food grains and other agricultural produce is
exported to other countries of the world. We get a lot of foreign
currency by exporting goods like sugar, cotton, grapes, onions,
sweet -limes, oranges, mangoes, bananas, roses etc.
Supply of Food Grains to the people:
The countries population has to depend on the agricultural
produce obtained from agricultural sector in the country. To fulfill
the needs of the countries food grains cereals, pulses are grown in
the farms. There is need of one more Green Revolution to fulfill the
needs of the increasing population.
10) Development of the means of Transport and
communication:
It is very important to develop the means of transport and
communication for agricultural development. The farm ers should be
able to take the agricultural produce to the market and also should
know about the information of the goods that have come and that
have been sent out from the market. In the same way he has to
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44communication system is very useful. All this contributes to an
increase in the farmer’s agricultural production. The development
of transport and agriculture was possible because of its association
with the sale of agricultural produce.
Check your progress
Q-1 Explain the role of agriculture in Indian economy.
3.4 LAND REFORMS INTRODUCTION
There are many reasons behind less agricultural productivity
in India. If development is to be thought of then we have to think of
the inc rease in the agricultural production. Factors such as social,
economic and mental are related to the increase in the agricultural
production. If an individual has to be given benefit of technology it
has to be seen whether the person has favourable mentali ty, how
much benefit he will get directly.
Indian land reforms have an adverse effect on the
agricultural development. To improve agriculture these land reforms
are to be studied in detailed. In this land reform it is studied whether
the land belongs to the farmer himself or he has given land on
lease to cultivate.
The distribution and division of land in India is uneven. The
main occupation of the rural people is agriculture. The existing
class structure in rural India is based on the ownership of lan d. Big
farmers, medium farmers, small farmers and agricultural labourers
class is seen in rural India. The distribution of land is uneven in
these classes. This distribution of land is related to the ownership of
land.
Land Reforms in India
Land reforms existed in India from the ancient period. They
are as follows:
1) Zamindari System -
During the British reign in 1793 Lord Cornwallis brought this
system in India in which a dependent class of Zamindars was
created. The main aim behind this was to collec tr e v e n u ef r o m
Indian people to run the British administration. As the revenuemunotes.in

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45collection was on permanent basis the middlemen appointed by the
British took benefit of this and started exploiting the cultivators. The
British government felt the need to cre ate such a group to be in
power so they gave the ownership of land to the middlemen
collecting revenue on their behalf. From this the Zamindars class
emerged.
There were two systems in Zamindari system.
a) Stable system -
In this system the agricultu ral tax to be paid to the
government was fixed. After paying the agricultural tax to the
government collected from the peasants the Zamindars would get a
commission of 9% of the revenue paid.
b) Unstable system -
In this system the agricultural tax to be paid was fixed for a
period of 20 -40 years. In this unstable system the period was fixed
for a long period of 40 years, which was a very long period, and it
would get converted into stable system.
In this system the Zamindars themselves would not cul tivate
the land. They would give some section of land to other people to
cultivate or to the bonded labourers. In return the cultivators or
bonded labourers had to give a share in the form of the crop
production. This resulted in the dominance of the Zamin dars and
exploitation of the bonded labourer or cultivator.
Mahalwari System:
In Mahalwari system the available land in the village whether
fertile cultivable land or barren land belonged to the whole of the
village and to any one in person. As it was village owned land it
was called as Mahalwari system. In the Mahalwari system as the
land was owned by the village it was duty of the whole village to
pay the tax to the government. The tax to be paid to the
government by the village as a whole was fixed f or 30 -40 years.
After some years it was changed. As it was the duty of the whole
village to pay the tax the villagers were given land on rent and the
tax was collected according to the section of land given to cultivate.
The village had appointed a person called Labardar to collect the
taxes from the cultivators and then paying to the government. The
tax collector belonged to the village itself. For this work the
Labardar was paid a part or commission of 5% or panchotra by the
village.
Rayatwari System:
In this system there used to be an owner of the land, but the
ultimate owner of the land was the government. The government
used to give land to cultivate to the rayats. In return the rayats had
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46called as agricultural tax. In this system if the rayat doesn’t pay the
agricultural tax to the government, then his ownership on land
comes to an end. The rayat has the right to use the land or hand
over for cultivation or sell the land till he pays t he agricultural land.
The government and the rayat are the two relations and the
operation is that the rayat pays the agricultural tax to the
government. If the government increases the agricultural tax, then it
can use it for the development works. If t here is no increase in the
agricultural tax then after paying the tax the remaining amount
remains with the rayat. Rayat uses that remaining extra amount for
agricultural development. In this system the tax is collected on a
temporary basis on the assessme nt of land.
Check your progress
Q Explain the different types of land reforms in India existing since
the ancient period.
3.5 AGRICULTURAL LABOURERS:
Introduction
India is an agricultural country. People living in the rural
areas mainl y depend on agriculture for their livelihood. If the
distribution of agricultural land is observed it is seen that some
people have large section of land while some don’t have a single
piece of land. The big farmers owning big portion of land
themselves do n’t cultivate the land. They require other people to
cultivate this land. While those who don’t have land they have to
work on other’s land for their livelihood. This people working on
other’s farm and getting returns in the form of money are called
agricu ltural labourers. Amongst the people living in rural areas and
depending on farming 68 -70% people are agricultural labourers.
While learning agricultural economy a study of these agricultural
labourers is very important.
Concept of Agricultural Labourer s
Total cultivable land in our country is 305 million hectare and
out of that 142 million hectare land is under cultivation. As
agriculture is a primary occupation a single farmer cannot do it
alone. There are different works in the agricultural operation sa n d
these are time bound works. To complete these work in time themunotes.in

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47farmer engages his family members in this work and sometimes he
also has to take other people’s help.
Those people working on other’s farm or agricultural land are
called agricultural la bourers.
The proportion of these agricultural labourers in rural India is
more. Agricultural labour mainly works in the agricultural fields only.
In return of his work he takes money in the form of labour. There
are different views regarding the concept of agricultural labour.
Different definitions are to be taken in view to clearly understand
the nature of agricultural labourers.
Agricultural Labour Investigation Committee of 1950 -51
“The one who is engaged in the agricultural work and accept
money for the work done on the farm is called an agricultural
labourer.”
Second Agricultural Labour Investigation Committee of 1956 -57
“People engaged in agricultural work are agricultural
workers, but people engaged in allied activities or subsidiary
occupat ions like dairy industry, animal husbandry, poultry, etc. are
also called agricultural labourers.”
National Labour Commission
An unskilled and unorganized labourer depending on his
labour for his livelihood is called an agricultural labourer. From the
above reason the concept of agricultural labour is very clear.
A specific society or a class cannot be included in the
concept of agricultural labourer. There are two types of agricultural
labourers. The first is the one who is an agricultural labourer b ut
has no land to cultivate. The only source of his livelihood is his
labour.
Second type of agricultural labourer is the marginal farmer
the one who has a small portion of land for cultivation. But the
income generated from that is not enough for his li velihood. He has
to work on other’s farm to earn his livelihood by giving his labour
and in return earning money from that to fulfill his family needs.
The definition given by the agricultural labour investigation
committee of 1950 -51 is incomplete. The agricultural labourers
working on the farms do not work for the whole year. Certain
changes had to be made while clearing the concept of agricultural
labourer. Those people working in the fields for more than 50% of
the days of the year should be called ag ricultural labourers. The
family whose earning members work for more than 50% of the
income to be earned through agriculture as its main occupation,
then that family is to be called as agricultural labourer family.munotes.in

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48The second agricultural labour investiga tion committee of
1956 -57 also made changes in the definition given by it. They have
included in it the people engaged in allied and subsidiary
occupations like animal husbandry, dairy industry, poultry, etc. in
the definition of agricultural labourers.
National labour commission defined agricultural labourer as
those labourers whose earn a maximum income from the
agriculture, those who have only labour to be sold and those who
are unskilled and unorganized are to be called as agricultural
labourers. Fro m the above definition it can be seen that there is
difference of opinion while thinking of the concept of agricultural
labourer.
3.6 REASONS BEHIND THE INCREASE IN THE
NUMBER OF AGRICULTURAL LABOURERS
The agricultural labourers class was not there ti ll the
Britishers came to India. In the beginning of the 19thcentury
population did not increase too much, people were engaged in
agriculture and other occupations. As an individual couldn't get
work on the farms he used to engage himself in other villag e
industries. But after few years there was an increase in the number
of agricultural labourers.
There are different reasons for the increase in the number of
agricultural labourers.
They are as follows -
1) Increase in the Population
Out of the tota lp o p u l a t i o n7 4 %l i v e si nr u r a la r e a sa n di t s
main source of livelihood is agriculture. Increasing population is a
stress on agriculture. There is no increase in agricultural land nor
any occupations are developed based on agriculture, as a result
the rura lp o p u l a t i o nh a sn oo t h e ra l t e r n a t i v et h a nt od e p e n do n
agriculture.
2) Unavailability of employment
In the olden days villages were self -sufficient. People were
engaged in village industries and barter system prevailed in olden
days. But as population increased there was no increase in the
allied occupations and other employment assurances. There was
no other alternative than agriculture as other occupations or
industries were not developed. As a result this population worked
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493) Indebtedness
For all the agricultural operations farmer needs money. As
the farmer had small land holding or marginal land holding he
couldn’t get the benefit of the monetary institutions established to
provide loan to the farmers f or agricultural purpose. As the farmer
doesn’t get timely monetary help he has to take loan from the
moneylender by keeping his land as a pledge. This results in the
farmer turning to an agricultural labourer.
4) Subdivision and Fragmentation
The subdiv ision and fragmentation of land is increasing at a
great speed. As the agricultural land is divided it does not remain
as profitable cultivable land. The result is that the farmer’s only
source of livelihood the land doesn’t give him income. So the owner
oft h el a n dh a dt ow o r ko no t h e r ’ sf a r mt oe a r nh i sl i v e l i h o o d ,a s
there is no other alternative.
5) Deterioration of Village Industries
Before the British came to India the villages were self
sufficient in nature. Village industries were there on a lar ge scale in
rural India. After the British came to India these village industries
deteriorated and came to an end. Centralized production of goods
in the industries affected the village industries and they were no to
be seen. The people engaged in village industries had no other
source of income so they had to divert themselves towards
agriculture and they started to work as agricultural labourers in the
agricultural sector.
6) Bonded Farm Labourers Problems
New discoveries brought new inventions in the agricultural
field. Due to mechanization of agriculture the owner himself started
to cultivate the land. The bonded farm labourers who cultivated the
land for owner years after years had no work in the fields after the
mechanization in agriculture. As the bonded farm labourer was
unorganized and financially weak he couldn’t fight for justice. The
bonded farm labourer had no other alternative than to work on
other big farmers land.
7) Costlier Production Technology
After independence many new discoveries and inventions
were made to improve agricultural sector in India. But in India a few
people own majority of land that started using this new technology
in their fields. As the new technique to be used is costlier and
needs the small farmers and marginal f armers could not use lot of
capital. The small and marginal farmers couldn’t withstand this
competition in the agricultural sector. As a result they had no other
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50Check your progress
Q-What are the rea sons behind the increase in the number of
agricultural labourers ?
3.7REASONS FOR THE DETERIORATING
CONDITION OF FARM LABOURERS
The proportion of the farm labourers working in the
agricultural sector is very large in India. They are looked upo na s
inferior class as they are financially weak. The reasons for this
deteriorating condition of farm labourers are as follows:
1) Illiteracy of the farmers
As the economic condition of the farmers is not so good,
even though there are educational oppo rtunities and facilities they
are not able to avail these facilities. The farm labourer is illiterate so
he doesn’t have knowledge about the facilities, legal rights he can
take benefit of. This results in the exploitation and cheating of the
farm labourer by the zamindar, big farmers and moneylenders in
the village. Even the other people from the village cheat them, as
they are illiterate.
2) Unemployment
Farm labourer works in the agricultural sector. Agriculture is
of seasonal nature so there is work on the farms for a specific
period only. Rest of the time he has to engage himself in some
other work. As he immediately doesn’t get work in other sectors he
has to remain unemployed compulsorily. It means he has to face
partial unemployment.
3) Rate o fL a b o u r
The working hours of the agricultural labourer in the
agricultural sector are 10 -12 hours. It depends on the situation how
many hours he has to work in the fields. The reason for this is that
as agriculture is depending on nature if the conditio ns are
favourable for agricultural operations the farm labourer has to work
for many hours, as the work has to be completed within the
favourable period only. But the labour the agricultural labourer gets
compared to his working hours, nature of work, and period of work -
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514) Number of Members in the Family
The source of entertainment is very less or not at all in the
homes of the agricultural labourers in the rural areas. The only
source of entertainment for him is sex that is available. As a result
the work of procreation continues after every two years. Therefore
the number of members in the family is more. The farmer has to
work hard to compensate the needs of the family members due to
his economically weak condition and the increasing num ber of
family members
5) Land Owners Policy
The landowner’s policy plays an important role in case of the
agricultural labourer. The agricultural labourers are exploited to a
great extent by the landowners to save their money and increase
the income lev el
They are not ready to increase the labour given to labourers
as they have a tendency that if they increase the labour of the
labourers their income level will decrease. In the same way their
policy is to increase the working hours of the labourers an dt o
increase their own income.
6) Gloomy Nature of Government Policy
The gloomy nature and attitude of the government is
responsible for the low -income status, inferior status in the society.
The government to improve the status of the agricultural la bourers
framed many schemes and laws. The machinery to implement the
laws for the agricultural labourers is not framed in a proper manner
7) Unorganized Agricultural Labourers
The rural agricultural labourers are not well organized as the
industrial sect or workers are. Due to their ignorance and illiteracy
they are unaware of the benefits of the well -organized sector. The
nature of agricultural work and the labourers wages are the factors
responsible for the unorganized sector of the agricultural labourer s.
Check your Progress
Q-What are the reasons for the Deteriorating Condition of Farm
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523.8 REMEDIES AND SUGGESTION TO IMPROVE THE
CONDITIONS OF THE AGRICULTURAL LABOURERS
The number of agricultural labourers is on the increase in
India and it is essential to improve their deteriorating condition. To
improve their condition government has made different laws and
policies have been framed
1) Development of Village and Cottage industries -
Agriculture in rural India is of seasonal nature and the
employment generated also is of seasonal nature. As a result
during the off -season the labourer has to remain unemployed.
During the seasonal unemployment various allied and subsidiary
occupations such as village industries and cottage indu stries
should be generated based on agriculture. So that it would help to
reduce the unemployment and raise the economic level of the
agricultural labourer in the society.
2)To fix the working hours of the labour -
As per the Indian industries act the w orking hours of the
workers working in the industrial sector is fixed. If they work for
more than the fixed hours they are liable to overtime wages
separately As the working hours are not fixed the question of giving
overtime wages doesn’t arise. Due to wh ich physical exploitation
and exertion is forced by the landlord.
3)Implementation of the labour law -
Minimum wages law was passed by the central government
in 1948. According to this law the labourer should get minimum
wages for his work. This was to be implemented by the state
government. But it is seen that the state government has not shown
keen interest in implementing this law. It is the state government
who has to take initiative in implementing this minimum wages law.
4) Technical education -
As the rural agricultural labourers are not trained technically
the only type of work they can do is of physical labour. They don’t
have any technical skill. But if they are given technical education
during the seasonal unemployment in agriculture they can
temporarily work in the industrial sector and earn income for their
livelihood to raise their standard of living in the society.
5)Organization of agricultural labourers -
The agricultural labourers are unorganized even though they
are in huge numbers . They are not aware of their rights and also do
not demand their rights, due to which they do not get facilities
available for them. The need of the hour is to organize the
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536) Distribution of the different work undertaken by the
government to the agricultural labourers organization -
Government undertakes different task under rural
development like construction of roads, digging of lakes, building
dams, nalla bunding etc. that requires labourers. Government
should establish labourers organization and should assign them the
different task of the government on contract basis so that
employment is generated in the seasonal unemployment period
and the labourers economic status can be improved.
7) Improvement in the agricultural pattern -
Indian agriculture depends on rain. Employment is
generated on large scale in the agricultural sector on the rainy
season only. In the non -seasonal season the labourers have to
remain unemployed. By making development and changes in the
agricultural pat tern employment can be generated all the year
round.
Check your progress
Q-Give some remedies and suggestion to improve the conditions
of the agricultural labourers.
3.9 SUMMARY
India is an agricultural country whose economy depends on
agriculture. But still agricultural occupation is not considered as an
occupation, but is seen as a means of livelihood of the rural
population. Agriculture plays an important role in the Indian
economy. Therefore need for new developments and remedies are
essential. Changes in the land holding patterns are to be made if
agricultural occupation is to be considered as an occupation and
not a source of livelihood. Land to the tiller law should be strictly
implemented so that the farmer would have love and affecti on for
the land and he put all his efforts in the agricultural operations to
increase the agricultural operations. The agricultural labourers
should be given justice by implementing the laws made for them so
that agricultural production can be increased wh ich in turn will
increase agricultural income and can be used for agricultural
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543.10 SELF STUDY
1.Explain the different types of farming’s.
2.What is the role of agriculture in rural development?
3.Write in short about the different land refor ms in India?
4.What are the reasons behind the increase in the number of
agricultural labourers?
5.Give reasons for the deteriorating conditions of farm labourers.
6.Suggest remedies to improve the condition of the agricultural
labourers.
References:
A.N.Sadhu, Amarjeet Singh, Himalaya Publishing House, 2004 -
“Fundamentals of Agricultural Economics”.
Sharma Sanjay Prakash, Vista international Publishing House,
Delhi, 2006 -“Rural Life in India”.
Rudra Dutt & K.P.M.Sundaram, S Chand & Company, Delhi ,
2000 -“Indian Economics”.
A.Banerjee, D. Mazumdar, ABS Publishing House, Kolkata,
2000 -“Elementary Economics”.
Mathur B. L. RBSA Publishers, Jaipur, 2000 -“Economic
Development
munotes.in

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55Unit -4
IMPORTANCE OF NATURAL
RESOURCES IN RURAL DEVELOPMENT
Dr. Clementine Rebello
Unit Structure :
4.0 Objectives
4.1 Introduction
4.2 Concept of natural resources
4.3 Factors of the natural resources and its importance in Rural
Development
4.3.1 Land
4.3.2 Water
4.3.3 Weather
4.3.4 Forests Resources
4.3.5 Animal Resources
4.3.6 Fisheries
4.3.7 Energy Resources
4.4 Importance of agricultural allied and subsidiary occupations
4.5 Agricultural allied activities and subsidiary occupations
4.6 Integrated Farming System
4.7 Determinants of farming system
4.8 Development of Rural Backyard Poultry
4.8.1 Dairy Farming
4.8.2 Goat and Sheep Rearing
4.8.3 Piggery
4.8.4 Duck Rearing
4.8.5 Apiculture
4.8.6 Fishery
4.8.7 Sericulture
4.8.8 Mushroom Cultivation
4.8.9 Agroforestry
4.9 Farming System Approach to Research Development
4.10 Core characteristics of Farming system approach
4.11 Summary
4.12 Self studymunotes.in

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564.0 OBJECTIVES
1)To study the concept of Natural Resources.
2)To study the factors of Natural Resources.
3)To study the importance of Natural Resources in rural
development.
4)To review the contribution of allied and subsidiary occupations
in rural development.
5)To study the different occupations related w ith the agricultural
allied activities.
6)To study the subsidiary occupations based on agriculture.
4.1 INTRODUCTION
Human beings are always in search of way to develop
himself. With the available technique and technology, research and
hard-work he always has tried to raise his standard of living. The
numerical changes and the qualitative changes that are brought in
the living standard of human beings is called as the developmental
process. Natural resources are very important in this developmental
process. With the cooperation of the natural resources other similar
supportive arrangements can work to their efficiency. In this
development process changes take place in the economic, social,
cultural, political and environment point of view.
India i s an agricultural country. Even though efforts were
taken to make India like other developed countries after
independence, still we are lagging behind. 70% of our population
lives in villages and their main occupation is agriculture. 72% of the
farmers in India are small, very small and marginal farmers. For
these people agriculture is a supplementary activity is done only for
livelihood. As a result the production of crops is less and does not
fulfill the needs of the family.
Their agriculture depends on rain i.e. the four months from
June to September. This type of agriculture is of seasonal type. The
remaining months these farmers work on others farm to earn
livelihood. But still agriculture in India does not provide an all round
employment and income s ource. An alternative source for income
generation is therefore necessary. This alternative source can be
the agricultural allied activities and subsidiary occupations based
on agriculture. This results in an all round employment throughout
the year in the villages and they need not migrate to other regions
in search of jobs. Their problem of earning a livelihood and income
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574.2 CONCEPT OF NATURAL RESOURCES
Natural resources play an important role in the proc ess of
development. The natural resource are used on a large scale for
the rapidly increasing population, industrialization and the race
between different countries to become economically strong.The
major problem in front of the world is to preserve the q uantity and
quality of the natural resources and also to keep stable the
available resources.
Natural Resource can be divided into two types:
Natural Resources
Renewable source Non Renewable source
Renewable source of energy means it can be regenerated.
Plants, animals, air, water etc.
Non–Renewable source of energy means it cannot be
regenerated.
Metal minerals are available in the na tural form. If used its
shape and form can be changed but its existence is not destroyed.
But if mineral oil is used they cannot be regenerated. It takes years
and years for the formation of mineral oil. It is not formed again and
again. So they have to be used very carefully as they are extinct.
Man has started to make use of natural resources to make
progress in the industries and technology long back. For this he
made use of available natural resources. In other words we can say
the developmental process is but to raise the standard of living of
human beings. In this process contribution of plants has great
importance. So it is essential to study rural development and
natural resources in totality.
Robert Mcnamara has defined rural development as -“Rural
Development means an overall development of the rural areas by
giving stress on the development of the weaker sections of the
society like small farmers, landless agricultural laborers and rural
artisans”.
Rural development is a process and natural re sources is
essential for this. These natural resources are available in land,
weather, forest, animals, oceans, energy, human resource and
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58everywhere. It is available in different forms and in differ ent quantity
in different places. It is used as per its availability. So the available
natural resource in different places more or less is to be used very
skillfully. If developmental planning is done taking into consideration
the availability of natural resource then the desired objectives can
be achieved.
4.3 FACTORS OF NATURAL RESOURCES
10.3.1 Land
Land is an important factor of the natural resources. Man
uses land for different purposes. Land is considered as an
important factor of the production factor. Depending on the Ph
value the fertility of the soil is decided and accordingly it is brought.
Land value depends on the fertility of the soil. Weather and climate
of the region, composition of land, type of soil, formation of soil and
other factor s affect the fertility of the soil.Classification of the soil
can be done on the Ph factor of the soil. The quality and possible
production of food grains can be estimated. We can increase the
production capacity of the soil by making some technical change s
and using the biotic factors which can increase the fertility of the
soil.
Land is one of the factors of production. Land and soil are
non renewable sources as they cannot be produced. So a proper
planning and management of the utilization of the usag eo fl a n di s
to be done. Land is an important factor in the agricultural process.
Out of the total land available in India 60% of the land is under
agricultural sector. The geographical condition in different region is
different. Depending on the type of s oil it is used accordingly. To
increase the fertility of the soil it has to be maintained and
conserved. But due to industrial development in the rural areas land
in the respective areas is utilized for setting up industries and for
the infrastructure requ ired. As a result percentage of the productive
land is decreased. Along with rural development infrastructural
development includes water supply, electricity, transport and
communication uses the productive land decreases the percentage
of productive land. The usage of productive land for industrialization
reduces the percentage of agricultural production.
Due to industrialization in the rural areas more land is
required for setting up new industries. Agricultural land is used
along with barren land for setting up industries has resulted in the
decrease in the land under crops.Some regions have the problem
of high salinity of the soil. So such land is used for industrial
projects. The problem of employment of the laborers working in the
agricultural field s has come in light due to rural industrialization.
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59population, land conservation has to be counted for. Fertility of the
soil is disturbed due to water logging in the fields, use of chemical
fertilizers in an unorganized manner, wrong methods of agricultural
operations and overall usage of land or industrial purpose which
results in the decrease in the agricultural productivity. Out of the
total geographical land 40% is under barren land. This la nd is
unused. But if this land is maintained properly it can be used for
agricultural purpose. For ex -this land can be used for horticultural
plantations (mango plantation).
4.3.2 Water
Water factor depends on many other factors. Water is a
limited natural resource and conservation of it is very essential.
Water is to be stored for agriculture and other purposes. Under
water level of the ground can be increased by means of water
saving methods like percolating the water in the ground, it can be
stopped by building bunds to stop flowing water and equal
distribution of water. This water can be utilized during the non -rainy
seasons.Dueto new technology underground water is utilized on
larger scale reducing the water to a larger level. Sugarcane crop
requires water on a large scale. Those regions taking sugarcane
crops require large quantity of water.
Water conservation methods are implemented everywhere
to deal with the water storage problem. Available water is related to
the various factors like soi l conservation, afforestation, and bunding
on the mountain slopes. The more conservation of water the more
availability of water. During the rainy season konkan region
receives more than 100% of the rain, but still they face the water
problem. It is not th e nature but we are responsible for the water
problem. we should take more efforts to conserve water through
bunding and making the water percolate in the soil to increase the
surface water and the underground water level. So planning is
essential so that we don’t face the water problem.
Water is required for industrialization, increasing population,
urbanization, and other reasons. More water will be required due to
increasing industrialization, population, urbanization and other
reasons. To fulfill the se needs millions of rupees have been
invested on various schemes for the same. Water facilities were
provided to the urban areas through the water schemes from the
rural areas. But the fact is that no measures were taken for water
conservation in the rura l areas, which is the greatest demerit of our
planning. Because of this even after 66 years of independence we
are not able to solve the water problem of our country.There is
consistency of rainfall in our country with increase or decrease in
the proportio no fr a i n f a l l .I ft h er a i n -water is conserved at the time
of rainfall we won’t ever face drinking water problem in future.
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60oceans. Even water from the melted ice from the Himalayas flows
down the rivers in large proportions. This gift of nature is to be
preserved and conserved and utilized in an organized manner.
4.3.3 Weather
It is one of the important dominant factors. It is not possible
for us to control weather. It is beyond the capacity of human beings
to gain control on weather. But it is possible to study it and use it to
increase our agricultural production. Plants, trees, fruits, flowers,
vegetables grow in the region having favorable climate for it. As a
result we can study the effec ts of climate and weather in a region
and the crops related to it will help us to take agricultural production
on a large scale.The other profession related to weather is fishery.
A detailed study of weather and climate is to be made to provide
necessary i nformation related to this to the people depending on
agriculture and other occupations related to it. This will help in the
increase in the production and subsequently raise their standard of
living.
4.3.4 Forests Resources
Plants and trees are very i mportant factors of natural
resources. Land under forest is also important like the land under
agriculture. Welfare and happiness of the human being is in the
conservation of forest resources. Forest resources motivate human
development. Forest includes de nse cluster of trees, dispersed
trees, pastures, shrubs, grass, creepers. These different factors
protect and conserve the forest. Forest resources help to stop soil
erosion due to the rain. Fertility of the soil is improved with the help
of different bypr oducts of trees like leaves, flowers, fruits, stems,
twigs and other byproducts. Trees help to percolate the flowing
water in the soil. Trees help to reduce the pollution created by the
growing industries. Major solution to solve the pollution problem is
to grow more trees. Trees and plants help to make the human life
happier.
Forest is also related to birds and animals and other wild
animals. Forest provides food, fodder and shelter to the animals
and birds. It also protects the animals on the verge of extinction.It
provides medicines and medicinal herbs for human beings. Fruits,
flowers, leaves, stems, twigs, barks of the tree is used for making
different types of medicines, organic fertilizer and compost fertilizer.
Forest help in the development of hu man life. But still man has
deteriorated the forest in large proportion. Only industrialization
doesn’t mean development. Forests have been destroyed for
urbanization and industrialization.
To fulfill the needs of growing industrialization and
urbanizat ion trees are cut down on large proportion, forests are
destroyed on large scale. Forest resource is renewable but it alsomunotes.in

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61requires time. We cannot grow trees in one day. As a result we are
facing the problems like pollution of all the resources, ecologica l
balance is disturbed, global warming problem has come up. If this
deterioration goes on continuing human life will be in danger. This
problem has to be taken very seriously. To some extent people
have understood the demerits of deforestation. Programs of
Afforestation, Van Mahotsav, plant more trees, social forestry have
been undertaken. Constructive work has to be undertaken for forest
conservation.
4.3.5 Animal Resources
Rural economy of India depends on agriculture. For doing
agricultural operation s animal resources are used. Rearing animals
is also one of the allied activities and subsidiary occupation of the
farmers. Animal husbandry, poultry occupations are undertaken as
subsidiary occupations along with agriculture. In some places these
occupati ons are practiced as main occupations. The objectives
behind practicing these occupations are the necessity of food,
requirement of money or utilizing the available manpower.
Transport facilities like truck, tractors cannot reach the farms in the
remote vi llages of India. So animal resources are used for
cultivating land, transport of goods and other related works.
Majority of the rural people are non -vegetarian. Allied activities and
subsidiary occupations help to solve the non -vegetarian food
problem in t he rural areas. We get food and milk from animals,
transport and agricultural problem is solved with the help of
animals. We also get manure from the dung of animals.
Animals have significant importance in the rural economy.
Integrated Rural Development program was implemented to solve
the poverty problem in the rural areas. This program utilized the
available animal resources in the rural areas. Some of the families
do not have land for cultivation, but they can use the barren land or
meadows for rearin g animals. By doing this it was expected that
these families earn a minimum income for their living. Out of the
total available animal resources in the world 1/6 of it is in India. It is
our responsibility to take proper care of our animal resources.
Food, fodder, health and hygiene, shelter, cleanliness of the animal
shelter and the surrounding area along with medical facilities are
the essential things to be taken care of.
Human beings made use of animals for fulfilling their needs
and for their benefi t. But they did not take proper care of the animal
resources as a result the animals of pure breed have become rare.
It is very essential to preserve our animal wealth so that the good
quality breeds can improve their production capacity and can
increase t he employment opportunities in the rural areas. For this a
proper planning and implementation of the program for the animal
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624.3.6 Fisheries
Fish available in the sea is also a natural resource. Fish has
high protein content useful for human beings. Nowadays fishing is
done on large scale with the help of mechanized boats. The net
used in this type of fishing not only catches big fishes but also small
fishes that are not grown properly. It results in the decrease of
proportion of fi shes in the sea. Mechanized boats have not only
minimized the fish catch in the sea but also the problem of
employment and source of living has aroused. Fish food is also
available from rivers and ponds from which the need is fulfilled. To
increase the pro duction of fishes in the sea fishermen should be
taken into confidence to accept the idea of marine park, so the
problem of fishermen employment and their income can be
increased in turn raise their standard of living.
4.3.7 Energy resources
Energy re sources have a greater significance in the
development process. It is necessary for agricultural processes,
transport, in industries, cooking process, for domestic use. In India
traditional sources of energy are used to fulfill the need for energy.
This in cludes wood, coal, cow -dung, kerosene, diesel and petrol.
As these sources of energy are available naturally they are limited.
The unlimited use of these natural resources (i.e non -renewable
source of energy) by human beings is on the verge of extinction. As
a result an imbalance in the nature has been created. A solution to
this problem is to find an alternative source of energy. In other
words we can say we have to use renewable source of energy like
solar energy, wind energy, hydroelectricity, nuclear po wer for
peaceful purpose.
In rural areas the proportion of animals is more compared to
the urban areas, as a result their waste is collected on large scale.
In the same way waste from agricultural products, human excreta
are also available which can be used in the biogas plant. The
methane gas produced in this is used for fuel purpose and the
slurry produced from this is used as fertilizer for crops. The use of
slurry increases the fertility of soil and increases the productivity.
Biogas has solved the p roblem of fuel in the rural areas. Cutting of
wood for fuel has stopped to a great extent and the environmental
has been maintained in the rural areas. Human brain and human
power is also a natural resource that has to be utilized with the help
of science and technology. But while doing this balance in the
environment has to be maintained which will lead to a better future
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63Check your progress
Q-Explain in detail the factors of natural resources.
4.4 IMPORTAN CE OF AGRICULTURAL ALLIED AND
SUBSIDIARY OCCUPATIONS
Agriculture is the main occupation in rural areas but allied
activities and subsidiary occupations are also practiced along with
it. In order to increase the income, development and effective
growth in agricultural production these activities have great
significance.
1)Very less capital is required to begin these activities:
As the allied and subsidiary occupation are on small scale
the capital required is very less. These activities can be starte da t
home or in the rest of the land not used for agriculture. Activities
like fishery, bee -keeping, poultry, animal husbandry can be started
at home or in the farms wherever land is available. There is no
need to spend money to purchase land or build shad e for animals.
These activities do not require purchasing land, construction work,
taking land on rent, costly machineries or transport cost. So it can
be done with minimum capital required. As the farmers are poor
they don’t have big sum of money to inves t on large scale. If these
type of activities are started in the villages the development process
will take momentum.
2)Minimum skill required:
These activities do not require special skills to start.
Experience is the only thing that helps in these a ctivities. No
technical knowledge is required. Minimum skill is required for this.
For ex: -milching the cows and buffaloes is the only skill required
when cows and buffaloes are reared for dairy business. This
knowledge is acquired hereditary from father and mother to the
son.
Observations also help to learn the minimum skills required
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643)Availability of locally available raw material for these
activities:
The allied activities and subsidiary occupations are
depending on agriculture, sothe required raw material is available
from the agricultural operations and in the rural areas. Here no
transport cost has to be borne by the people as the raw material is
available locally. This business is never in loss or closed due to
unavailability of the raw material. As the raw material is available all
the year round the business is in good conditio na n dp r o v i d e s
employment throughout the year in the rural areas.
4)Availability of employment in large scale:
Even though agriculture is an all round activity the
employment generated is of seasonal nature. But due to the allied
activities and subsidiary occupations employment is generated in
the non -seasonal period. I n the dairy business it is the human
power that is required and not the machines.
5) It solves the unemployment problem:
Rural unemployment is a big problem. Seasonal
unemployment, disguised unemployment, incomplete
unemployment arethe types of unemplo yment seen in the rural
areas. Employment is available only in the agricultural season. The
conditions of the farmers in the non -agricultural season is very
critical. The allied activities and subsidiary occupations would
create employment on a large scal e prove helpful to solve the
problem of unemployment.
6)Distribution of the goods produced is not a problem:
The production taken in the allied and subsidiary
occupations is based on the requirements of the people in the area
and is of local nature. So the demand for the goods does not
decrease in the village or the nearby villages. As the goods
produced are frequently in need it is not necessary to produce the
goods on a large scale. The goods produced are consumed and
therefore there is no extra sto ck left due to which the businessman
has to suffer loss.
7)Goods produced are as per the consumers demand:
The goods produced in the allied and subsidiary occupations
are produced as per the demands of the consumer. The goods
produced are manufactured with the help of raw material available
in the village itsel f.There is great demand for the produce as it is
sold in the local village market itself. Goods are supplied as per the
demand. Scarcity of goods is never generated from this type of
business. Goods are produced as per the demand of the consumer
and as a result no problem of artificial scarcity of goods, hoarding of
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658)Helps to keep away the inequality in the rural society:
Economic inequality persists in large proportion in the rural
areas. It is because in rural areas few people have more land and
many people have less land. People having large percentage of
land ar e the landlords and the horticulturists. While people having
less land are marginal farmers. Economic disparity can be seen on
large scale in this category. To reduce this disparity in the rural
areas allied and subsidiary occupations are to be created in the
rural areas. This will create employment opportunities for the poor
and a rise in their income will be seen.
9)Poverty eradication is possible:
Poverty is one of the biggest issue faced by the rural people.
Most of the population lives not only in poverty but lives below the
poverty line. Their minimum needs are also not fulfilled. If this
situation is to be cha nged rural industrialization is a solution.
Agricultural allied activities and subsidiary occupation are to be
started in the rural areas, which will generate employment and their
basic minimum needs would be fulfilled.
10)Availability of foreign curr ency through exports:
Goods produced from the allied and subsidiary activities can
be exported to other countries and in return the rural areas can be
developed with money earned through foreign exchange. It is for
this reason Indian government has adopte d the liberalization policy.
Government has consented to produce only export goods in the
agricultural sector. Agricultural related activities like poultry, fishery,
sericulture, animal husbandry can be started in the rural areas. The
produce from these ac tivities can be exported to other foreign
countries, and foreign exchange can be generated.
11)Migration to the urban areas can be minimized to a great
extent:
Due to unemployment in the rural areas the rural community
started migrating towards the ur ban areas on large scale. It can be
changed by generating employment through allied activities and
subsidiary occupations in the rural areas. Migration of people from
rural areas to urban areas will be stopped. The problem of
increasing slums in the urban areas, pollution and other related
problems can be minimized.
12)Economic development will gain momentum:
If agricultural allied activities and subsidiary occupations are
made available to the people in the rural areas the large human
power and the available natural resource can be utilized to its
fullest and thus will give momentum to the economic development
of the country. If this happens naturally savings of income will
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66the rural areas. Our countries economic development can be done
at a fast er rate due to the rural development.
Check your progress :
Q 1 Explain the importance of agricultural allied activities and
subsidiary occupations in the rural development of our country?
4.5 AGRICULTURAL ALLIED ACTIVITIES AND
SUBSIDIARY OCCU PATIONS
To meet the multiple objectives of poverty reduction, food
security, competitiveness and sustainability, several researchers
have recommended the farming systems approach to research and
development. A farming system is the result of complex inte ractions
among a number of inter -dependent components, where an
individual farmer allocates certain quantities and qualities of four
factors of production, namely land, labour, capital and management
to which he has access. Farming systems research is cons idered a
powerful tool for natural and human resource management in
developing countries such as India. This is a multidisciplinary
whole -farm approach and very effective in solving the problems of
small and marginal farmers. The approach aims at increasin g
income and employment from small -holdings by integrating various
farm enterprises and recycling crop residues and by -products within
the farm itself.
The Indian economy is predominantly rural and agricultural,
and the declining trend in size of land ho lding poses a serious
challenge to the sustainability and profitability of farming. In view of
the decline in per capita availability of land from 0.5 ha in 1950 -51
to 0.15 ha by the turn of the century and a projected further decline
to less than 0.1 ha b y2 0 2 0 ,i ti si m p e r a t i v et od e v e l o ps t r a t e g i e s
and agricultural technologies that enable adequate employment
and income generation, especially for small and marginal farmers
who constitute more than 80% of the farming community. The crop
and cropping syste m based perspective of research needs to make
way for farming systems based research conducted in a holistic
manner for the sound management of available resources by small
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674.6 INTEGRATED FARMING SYSTEM
Under the gradual shrinking of land ho lding, it is necessary
to integrate land based enterprises like fishery, poultry, duckery,
apiary, field and horticultural crops, etc. within the biophysical and
socio -economic environment of the farmers to make farming more
profitable and dependable. No s ingle farm enterprise is likely to be
able to sustain the small and marginal farmers without resorting to
Integrated Farming Systems (IFS) for the generation of adequate
income and gainful employment year round. Farming systems
approach, therefore, is a va luable approach to addressing the
problems of sustainable economic growth for farming communities
in India. The basic aim of IFS is to derive a set of resource
development and utilization practices, which lead to substantial and
sustained increase in agric ultural production. There exists a chain
of interactions among the components within the farming systems
and it becomes difficult to deal with such inter -linking complex
systems. This is one of the reasons for slow and inadequate
progress in the field of f arming systems research in the country.
This problem can be overcome by construction and application of
suitable whole farm models. However, it should be mentioned that
inadequacy of available data from the whole farm perspective
currently constrains the d evelopment of whole farm models.
Integrated farming systems are often less risky, if managed
efficiently, they benefit from synergisms among enterprises,
diversity in produce, and environmental soundness. On this basis,
IFS model have been suggested by s everal workers for the
development of small and marginal farms across the country.
The farming systems can be described and understood as
by its structure and functioning. The structure in its wider sense
includes among others, the land use pattern, prod uction relations,
land tenures, size of holding and their distribution, irrigation,
marketing including transport and storage, credit institutions and
financial markets and research and education. Thus, the “farming
system” is the result of a complex inter action among a number of
interdependent components. To achieve it, the individual farmer
allocates certain quantities and qualities of four factors of
production: land, labour, capital and management, which has
access the processes, like crop, livestock an d off farm enterprises
in a manner, which within the knowledge he possess will maximize
the attainment of goal he is striving for.
The Farming System, as a concept, takes into account the
components of soil, water, crops, livestock, labour, capital, ener gy
and other resources with the farm family at the center managing
agricultural and related activities. The farm families functions withinmunotes.in

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68the limitation of its capability and resources, the socio -cultural
setting, and the interaction of these components w ith the physical,
biological and economic factors.
Farming system focuses on:
a)The interdependencies between components under the control
of household and, how these components interact with the
physical, biological and socio -economic factors, whic hi sn o t
under the control of household.
b)Farm household is the basic unit of farming system and
interdependent farming enterprises carried out on the farm.
c)Farmers are subjected to many socio -economic, bio -physical,
institutional, administrative an d technological constraints.
d)The operator of the farming system is farmer or the farming
family.
Check your progress
Q-Give the importance of agricultural allied and subsidiary
occupations.
4.7 DETERMINANTS OF FARMING SYSTEMS
The key cat egories of determinants influencing farming
system are as follows:
i) Natural Resources and Climate: The interaction of natural
resources, climate and population determines the physical basis for
farming systems. The increased variability of climate, and thus
agricultural productivity, substantially increases the risk faced by
farmers, with the concomitant reduction in investment and input
use. Certain soil and water regimes are suitable only for given type
of crops. Similarly, some of the physical and ge ographical features
e.g. drainage characteristics, elevations and slopes as well as
climatic factors e.g. total rainfall and its distribution, minimum and
maximum temperature, humidity and intensity of sunlight etc. are
other factors which have to be taken in to considerations while
making decision with respect to selection of enterprise for a farming
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69ii) Science and Technology: Investment in agricultural science
and technology has expanded rapidly during the last four decades.
During this period , major technical and institutional reforms
occurred, which shaped the pattern of technology development and
dissemination.
The research driven growth in developing countries has
been green revolution, where it achieved considerable achievement
in the fi eld of food grain production and for this the policy and other
aspects supported the farming system for such achievement.
Research has been focused principally upon intensifying crop and
livestock production. There has been for less research on
integrated technologies for diversifying the livelihoods of small
farmers in developing countries and increasing the sustainability of
land use.
Despite these weaknesses, the natural and global research
agenda is gradually moving from a focus on individual crop
performance to a growing acceptance of the importance of
increased system productivity. There has been emphasis in recent
agriculture of targeting technologies towards women farmers and
poorer households.
iii) Trade Liberalization and Market Development: Markets have
a critical role to play in agricultural development as they form the
linkages between farm, rural and urban economics upon which the
development processes depend. As a result of the reduction of
impediments to international trade and investment, the process of
trade liberalization is already generating changes in the structure of
production at all levels -including smallholder -farming systems in
many developing countries. Not only the market development is
accelerating, but patterns of production and natural resources
usage are also changing profoundly in response to market forces.
The availability of new production, post harvest and transport
technologies will also change demand patterns due to delivery of
new products or established products in new forms to markets,
where they have been previously unattainable.
iv)Policies, Institutions and Public goods: The development of
dynamic farming systems requires a conducive policy environment.
Moreover, the establishment of the farm -rural-urban link ages
requires effective demand. Policy makers have increasingly shifted
their attention to the potential to increase the efficiency of service
delivery through the restructuring of institutions. The production
incentives have dramatic effect on farming sys tems. Policies on
land ownership, water management and taxation reform etc have a
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70v) Information and Human Capital: The evolution of farming
systems based upon increasing specialization (e.g. large scale
broiler units) or integrated intensification (e.g. rice -fish-ducks) has
required extra knowledge on the part of farm operators. The need
for better information and enhanced human capital has also
increased, as production systems have become mor ei n t e g r a t e d
with regional, national and international market systems.
Lack of education, information and training is frequently a
key limiting factor to smallholder development. Many observers
anticipated an information revolution i.e. bridge gap of kno wledge
between scientists and farmers will be very key factor for
agricultural growth of these small farmers. Whilst in the past many
development efforts failed women -because planners had a poor
understanding of the role women play in farming and household
food security -greater efforts are being made to take account of their
actual situations. It is increasingly recognized and acknowledged by
development workers that the empowerment of women is the key to
raising levels of child and family nutrition, improv ing the production
and distribution of food and agricultural products, and enhancing
the living conditions of rural populations. It has been concluded
that, if women in
Similarly, better access to credit, land and extension
services would enable women t o make an even greater contribution
to eliminating rural hunger and poverty. As gender bias is
progressively eliminated during coming years -often in the face of
severe cultural and religious barriers productivity within many
farming systems will be trans formed.
vi) Indigenous Technological Knowledge: Indigenous technical
knowledge is the knowledge that people in a given community has
developed over times, and continues to develop. It is based on
experience, often tested over long period of use, adapted to local
culture and environment, dynamic and changing, and lays
emphasis on minimizing risks rather than maximizing profits. The
ITK covers a wide spectrum –soil water and nutrient management;
pasture and fodder management; crop cultivation; plant prote ction;
farm equipment, farm power, post -harvest preservation and
management; agroforestry; biodiversity conservation and also
exploitation; animal rearing and health care; animal products
preservation and management; fisheries and fish preservation; and
ethnic foods and homestead management. Thus, the ITK of a
farmer has a great influence in managing the farm and farming
system.
Components of Farming Systems
The potential enterprises which are important in farming
system in the way of making a significa nt impact of farm bymunotes.in

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71generating adequate income and employment and providing
livelihood security are as follows:
Crop production is an important farming practice adopted
invariably by every farmer. It is an integral part of farm activities in
the country . Cropping systems based on climate, soil and water
availability have to be evolved for realizing the potential production
levels through efficient use of available resources. The cropping
system should provide enough food for the family, fodder to the
cattle and generate sufficient cash income for domestic and
cultivation expenses. These objectives could be achieved by
adopting intensive cropping. Methods of intensive cropping include
multiple cropping and intercropping. Intensive cropping may pose
some pr actical difficulties such as shorter turnaround time lapse for
land preparation before the succeeding crop and labour shortage at
peak periods of agricultural activities. These practical handicaps
can easily be overcome by making modifications in the cropp ing
techniques. Alteration of crop geometry may help to accommodate
intercrops without losing the base crop population.
Check your progress
Q-What are the determinants of Farming Systems ?
4.8 DEVELOPMENT OF RURAL BACKYARD
POULTRY
With rapi d growth in population providing food security has
taken the Govt. as well as planner in a quandary. The availability of
agricultural land being limited, increased production in agriculture
front has become a matter of concern for every Government.
Governm ent of India is according top priority for increasing the food
production so as to double it by the end of five year plan. In poultry
sector these exists a large scope to enhance food production
through both layer and broiler farming. If these sectors will be
explored then it will hugger in multiplier effects both in production
and employment. 80% of the population of the State in rural areas
eke out their livelihood mostly from agriculture and allied activities.
Because of variations in weather, lack of in puts required for
agriculture it has been observed that agriculture hardly provides
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72employment for an additional 40 -45 days are derived from wage
employment, service and other activities. Thus an average
individual gets employment for half a year. Government has been
laying thrust in providing gainful employment for the rest period of
the year for the work force and in this backdrop the challenge
before the Govt. is to expand activities under allie d sector. Besides,
providing employment this will generate additional income for the
rural household. Added to this, this sector will be in a position for
utilization of the unproductive woman power in a productive
manner. To amplify this assumption it has been calculated that a
backyard poultry unit of 25 to 50 can generate employment for 40
to 50 size man days.. In addition to this commercial activities under
this sector will also encourage unemployed educated youths in a
great manner youths to set up the ir own units. These activities will
create sustainable means of livelihood in the rural areas along with
bridging the gap in demand and production in egg, meat and milk.
4.8.1 Dairy Farming
Dairy farming is an important source of income to farmers.
Besides producing milk and/or draft power, the dairy animals are
also good source of farm yard manure, which is good source of
organic matter for improving soil fertility. The farm byproducts in
turn are gainfully utilized for feeding the animals. Though the total
milk production in the country as per current estimates have
crossed 90 million tons /annum marks, the per capita availability of
milk is still about 220g/day against the minimum requirement of
250g/day as recommended by Indian Council of Medical Re search.
The dairy sector in India is characterized by very large number of
and very low productivity. Around 70% of Indian cows and 60% of
buffaloes have very low productivity. This sector is highly livelihood
intensive and provides supplementary incomes to over 70% of all
rural and quite a few urban households. The sector is highly gender
sensitive and over 90% of the households dairy enterprise is
managed by family’s women folk.
(a) Cattle Rearing: Cattle rearing in India are carried out under a
varie ty of adverse climatic and environmental conditions. The cattle
are broadly classified into three groups.
(i)Draft breeds: The bullocks of these breeds are good draft
animals, but the cows are poor milkers, e.g. Nagore, Hallikar,
Kangeyam, Mali.
(ii)Dairy breeds: The cows are high milk yielders, but the bullocks
are of poor draft quality, e.g., Sahiwal, Sindhi, Gir.
(iii)Dual purpose: The cows are fairly good milkers and the bullocks
are with good draft work capacity, e.g., Hariana, Ongole and
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73Exotic breeds: The exotic breeds are high milk yielder e.g.,
Jersey, Holstein -Friesian, Ayrshire, Brown Swiss and Guernsey.
(b) Buffaloes: Important dairy breeds of buffalo are Murrah, Nili
Ravi (which has its home tract in Pakistan), Mehsana, Su rti,
Jafarabadi, Godavari and Bhadawari. Of these Godavari has been
evolved through crossing local buffaloes in coastal regions of
Andhra Pradesh with Murrah.
4.8.2 Goat and Sheep Rearing
The system of sheep and goat rearing in India is different
from that adopted in the developed countries. In general, smaller
units are mostly maintained as against large scale in fenced areas
in the developed countries.
(i) Goat Rearing : In India, activity of goat rearing is sustained in
different kinds of environments, including dry, hot, wet and cold,
high mountains or low lying plains. The activity is also associated
with different systems such as crop or animal -based, pastoral or
sedentary, single animal or mixed herd, small or large scale. Goat
is mainly reared for meat, milk, hide and skin. Goat meat is the
preferred meat in the country. A goat on hoof (live goat) fetches a
better price than a sheep on hoof.
(ii) Sheep Rearing: S heep are well adapted to many areas. They
are excellent gleaners and make use of much of the waste feed.
They consume large quantities of roughage, converting a relatively
cheap food into a good cash product. Housing need not be
elaborate or expensive. How ever, to protect the flock from
predatory animals, the height of the fencing should be raised to two
meters. Breeds of Indian Sheep: There are three types of sheep in
India based on the geographical division of the country.
(i)The temperate Himalayan r egion: Gurez, Karanah, Bhakarwal,
Gaddi, Rampur -Bushiar.
(ii)Dry western Region: Lohi, Bikane ri, Marwadi, Kutchi, Kathiawari
(iii)Southern Region: Deccani, Nellore, Bellary, Mandya, Bandur
4.8.3 Piggery
Pigs are maintained for the production of pork. They are fed
with inedible feeds, forages, certai n grain by products obtained
from mills, meat byproducts damaged feeds and garbage. Most of
these feeds are either not edible or not very palatable to human
beings. The pig grows fast and is a prolific breeder, farrowing 10 to
12 piglets at a time. It is c apable of producing two litters per year
under good management conditions. The carcass return is high at
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744.8.4 Duck Rearing
Ducks account for about 7% of the poultry population in
India. They are popular in states like West B engal, Orissa, Andhra
Pradesh, Tamil Nadu, Kerala, Tripura and Jammu and Kashmir.
Ducks are predominantly of indigenous type and reared for egg
production on natural foraging. They have a production potential of
about 130 -140 eggs/bird/year. Ducks are quit e hardy, more easily
brooded and resistant to common avian diseases. In places like
marshy riverside, wetland and barren moors where chicken or any
other type of stock do not flourish, duck rearing can be better
alternative.
4.8.5 Apiculture
Apiculture is the science and culture of honeybees and their
management. Apiculture is a subsidiary occupation and it is a
additional source of income for farm families. It requires low
investments and so can be taken up by small, marginal and
landless farmers and ed ucated unemployed youth.
4.8.6 Fishery
Ponds serve various useful purposes, viz., domestic
requirement of water, supplementary irrigation source to adjoining
crop fields and pisciculture. With the traditional management,
farmers obtain hardly 300 -400 kg of wild and culture fish per ha
annually. However, composite -fish culture with the stocking density
of 5000 -7500 fingerlings/ ha and supplementary feeding can boost
the total biomass production.
Species of fish:
(i)Among the Indian major carps, Catl a (Catla catla) is the fast
growing fish. It consumes a lot of vegetation and decomposing
higher plants. It is mainly a surface and column feeder.
(ii)Rohu (Labeo rohita) is a column feeder and feeds on growing
fish. It consumes a lot of vegetation and decomposing higher
plants. It is mainly a column and surface feeder.
(iii)Calbasu (Labeo calbasu) is a bottom feeder on detritus. Mrigal
(Cirrhinus mrigala) is also a bottom feeder, taking detritus to
large extent, diatoms, filamentous and other algae an dh i g h e r
plants. Common carp (Cyprinus carpio) is a bottom feeder and
omnivorous.
(iv)Silver carp (Hypophthalmichthys molitrix) is mainly a surface
and phytoplankton -feeder and also feeds on micro -plants.
(v)Grass carp (Ctenopharyngodon idella) is a specialized feeder
on aquatic plants, cut -grass and other vegetable matter. It is
also a fast growing exotic fish.
Composite Fish Culture: The phytophagous fish (Catla, Rohu and
Mrigal) can be combined with omnivorous (Common carp),munotes.in

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75plankton -feed (Silve rc a r p )a n dm u d -eaters (Mrigal and Calbasu) in
a composite fish culture system.
4.8.7 Sericulture
India is the second largest producer of silk in the world with
an annual silk production of 23,679 MT (Provisional) in 2012 -13.
India has the unique dis tinction of being the only country producing
all the five kinds of silk namely, Mulberry, Eri, Muga, Tropical Tasar
and Temperate Tasar. Among them, mulberry silk is the most
popular variety, which contributes around 79% of the country’s silk
production. S ericulture is an important labour -intensive and agro -
based cottage industry providing gainful occupation to around 7.63
million persons in rural and semi -urban areas in India. Of these, a
sizeable number of workers belong to the economically weaker
section s of society. There is substantial involvement of women in
this Industry.
In India, sericulture is mostly a village -based industry
providing employment opportunities to a large section of the
population. Although sericulture is considered as a subsidia ry
occupation, technological innovation has made it possible to take it
up on an intensive scale capable of generating adequate income. It
is also capable of providing continuous income to farmers. Silk and
silk goods are very good foreign exchange earners . The present
global scenario clearly indicates the enormous opportunities for the
Indian silk Industry.
Central Silk Board
For the development of silk industry in India, the Central Silk
Board, a statutory body, is functioning under the administrative
control of the Ministry of Textiles, Govt. of India with its
Headquarters at Bengaluru.
The following are the important functions assigned to the
Board.
Promoting the development of silk industry by such
measures as it thinks fit.
Undertaking, assis ting and encouraging scientific,
technological and Economic Research.
(c) Devising means for improved methods of mulberry cultivation,
silkworm rearing, developing and distributing healthy silkworm
seeds, improving methods of silk reeling, improving the quality and
production of raw silk.
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76The collection and compilation of statistics relating to the sector.
Advising the Govt. of India an all matters relating to the
development of silk industry including import and export of raw silk.
The silk goods exports from India comprise mainly items of
natural silk, fabrics, made -ups, readymade garments, silk carpets
and silk waste. The category of silk fabrics viz., dress materials,
sarees and scarves & stoles constitut e the bulk of silk exports
followed by readymade garments with contribution around 60% and
30%, respectively to the total silk export earnings of the country.
The Indian silk goods have high export potential because of their
distinctiveness and low product ion cost. Indian silk exports, which
reach more than 190 countries, have increased over the years. The
demand for Indian silk is not only in the domestic market but in
global markets too. The USA, the UK, Italy, the UAE, Germany and
Spain are the top impor ters of Indian silk products. Indian silk are
steadily gaining greater demand in the new markets like Latin
America and Russia also.
4.8.8 Mushroom Cultivation
Mushroom is an edible fungus with great diversity in shape,
size and colour. Essentially mus hroom is a vegetable that is
cultivated in protected farms in a highly sanitized atmosphere. Just
like other vegetables, mushroom contains 90% moisture with high
in quality protein. Mushrooms are fairly good source of vitamin C
and B complex. The protein h ave 60 -70% digestibility and contain
all essential amino acids. It is also rich source of minerals like
Calcium, Phosphorus, Potassium and Copper. They contain less fat
and CHO and are considered good for diabetic and blood pressure
patients.
4.8.9 Agro forestry
Agroforestry is a collective name for land use systems and
technologies, in which woody perennials (trees, shrubs, palms,
bamboos etc) are deliberately combined on the same land -
management unit as agricultural crops and/or animals, either in
some form of spatial arrangement or in a temporal sequence.
In agroforestry systems, there are ecological and economical
interactions among different components. That implies that: (i)
agroforestry normally involves two or more species of plants (or
plants and animals) at least one of which is woody perennials; (ii)
an agroforestry system always has two or more outputs; (iii) the
cycle of an agroforestry system is always more than one year; and
(iv) even the simplest agroforestry system is structurally,
functionally, and socio -economically more complex than a
monocropping system. Agroforestry is important for meeting fodder,
fuel wood and small timber of farmers, conserving soil and water,munotes.in

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77maintenance of soil fertility, controlling salinity and waterlogging,
positive environment impact and alternate land use for marginal
and degraded lands. Selection of proper land use systems
conserve biophysical resources of non -arable land besides
providing day -to-day needs of farmer and livestock within the
farming system .
The different commonly followed agroforestry systems in
India are: (1) Agri -silviculture (crops + trees), which is popularly
known as farm forestry (2) Agri -horticulture (crops + fruit trees); (3)
Silvi-pasture (Trees + pasture + animals); (4) Agri -horti-silviculture
(crops + fruit trees + MPTS + pasture); (5) Horti -silvi-pasture (fruit
trees + MPTs+ Pasture); (6) Agri -silvi-pasture (crops + trees +
Pasture); (7) Homestead agroforestry (multiple combination of
various components); (8) Silvi -apiculture ( trees + honey bees); (9)
Agri-pisci-silviculture (crops + fish + MPTS); (10) Pisci -silviculture
(Fish + MPTs) etc. 20
4.9 FARMING SYSTEM APPROACH TO RESEARCH
AND DEVELOPMENT
Farming system research has emerged as a major theme in
international agricul tural research and rural development. The
farming system approach to research and rural development has
two interrelated thrusts. One is to develop an understanding of the
farm household, the environment in which it operates, and the
constraints it faces, together with identifying and testing potential
solutions to those constraints. The second thrusts involve the
dissemination of the most promising solutions to other farm
households facing similar problems. The central issue of the
approach is that the ana lysis of farming systems within which the
rural poor live and work can provide powerful insights in to strategic
priorities for the reduction of the poverty and hunger now affecting
so many of their lives.
Farming System Research (FSR ) Concept
The FSR concept was developed in 1970s in response to
the observation that groups of small -scale farm families operating in
harsh environment were not benefiting from the conventional
agricultural research and extension strategies.
The farming system, as a conc ept, takes into account the
components of soil, water, crops, livestock, labour, capital, energy
and other resources with the farm family at the center managing
agricultural and related activities. The farm family functions within
the limitations of its ca pability and resources, socio -cultural setting
and interaction of these components with physical, biological and
economic factors. The term FSR in its broadest sense is anymunotes.in

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78research that views the farm in a holistic manner and considers
interactions (betwe en components and of components with
environment) in the system.
This type of research is most appropriately carried out by
interdisciplinary teams of scientists, who, continuously interact with
farmers in the identification of problems and in advising w ays of
solving them. It aims at generating and transferring technologies to
increase the resource productivity for an identified group of farmers.
Objectives and Principles
The FSR advocates that: (i) development of relevant and
viable technology for sm all farmers having the full knowledge of the
existing farming system and (ii) that technology should be
evaluated not solely in terms of its technical performance but in
terms of its conformity to the goals, need and socio -economic
circumstances of the ta rgeted small farm system with special
reference to profitability and employment generation.
FSR is based on the following basic principles:
Make the farm household self -sufficient and make the farm
free being vulnerable from external forces.
Enterpri se diversification to increase income, employment,
risk minimization, improvement in natural resources, environment
and diet of farm families.
The interactions between the components and the
components with the environments
Check your progress
Q-Wha t is Farming System Approach to Research and
Development?
4.10 Core Characteristics of Farming System
Research:
Many of the core activities of FSR / E can be operationalized
in different ways. The approach is open to multiple interpretation.
Despite the variations in their perceptions about FSR / E among themunotes.in

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79practitioners the approach has certain distinctive core characters.
These are:
i) It is problem solving: As an applied problem solving approach,
it emphasizes on developing and transferrin ga p p r o p r i a t e
technologies to overcome production constraints through
diagnosis of biophysical, socio -economic and institutional
constraints that influence technological solutions.
ii) It is holistic: The whole farm is viewed as a system
encompassing int eracting subsystems, and no potential
enterprise is considered in isolation.
iii) It acknowledges the location specificity of technological
solutions: Recognizing the location specific nature of
agricultural production problems, it emphasizes on testing and
adaptation of technological solutions based on agro -ecological
and socio -economic specificities.
iv) It defines specific client groups: Emphasis is made on the
identification of specific and relatively homogeneous groups of
farmers with similar probl ems and circumstances for whom
technology is to be developed as the specific client groups. On
the basis of common environmental parameters, production
patterns and management practices, relatively homogeneous
recommendation domains need to be identified.
v) It is farmer participatory: It revolves round the basic principle
that successful agricultural research and development efforts
should start and end with the farmers (Rhoades and Booth,
1982). Farmer participation is ensured at different stages of
technology generation and transfer processes such as system
description, problem diagnosis, design and implementation of
on-farm trials, and providing feedback through monitoring and
evaluation.
vi) It gives weightage to ITK system: The Indigenous Technica l
Knowledge (ITK), which is time tested at the farmer's level for
sustainability through a dynamic process of integrating new
innovations into the system as they arise, has to be properly
understood by the scientists and utilised in their research
activiti es.
vii) It is concerned with ‘Bottom -up’ research strategy: It begins
with an understanding of existing farming system and the
identification of key production constraints.
viii) It is interdisciplinary: It lays greater emphasis on
interdisciplinary c ooperation among the scientists from
different areas of specialisation to solve agricultural problems
that are of concern to farmers.
ix) It emphasizes extensive on -farm activities: It involves problem
analysis through diagnostic surveys, on -farm testing of the
developed technologies, and providing feedback throughmunotes.in

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80evaluation to influence the research agenda of the experiment
stations. It provides a structural framework for the farmers to
express their preferences and apply their evaluation criteria for
selecting technologies suiting to their circumstances.
x) It is gender sensitive: While explicitly acknowledging the
gender -differentiated roles of farm family in agriculture, it
emphasizes the critical review of farming systems in terms of
activities ana lysis, access and control over resources and
benefits and implications in developing relevant research
agenda.
xi) It is iterative: Instead of trying to know everything about a
system at a time, it requires step -by-step analysis of only key
functional r elationships.
xii) It is dynamic: It involves recurrent analysis of the farming
systems, permitting continuous learning and adaptations.
xiii) It recognizes interdependencies among multiple clients: The
generation, dissemination and adoption of relevan t
technologies to improve the productivity and sustainability of
agriculture require productive and interactive linkages among
the policy planners, scientists, developmental agencies and
farmers. The approach attaches more importance for this
critical fact or.
xiv) It focuses on actual adoption: It is to be judged by the extent to
which it influences the production of socially desirable
technologies that diffuse quickly amongst specified groups of
farmer clients.
xv) It focuses on sustainability: It seek s to harness the strengths
of the existing farming practices, and to ensure that
productivity gains are environmentally acceptable. Towards
preserving the natural resource base and strengthening the
agricultural production base, it attempts to develop
technologies that are environment friendly and economically
viable.
xvi) It complements experiment station research: It only
complements but does not substitute on station research. It
has to draw upon the scientific knowledge and technologies
generated at r esearch stations. It has to be kept in mind that
the approach is not being promoted as panacea for all
maladies of local agricultural production systems.
Procedures and Methodologies: Generally farming system
research is conducted by the following three possible ways:
FSR: On -farm Adaptive Research (OFAR)
FSR: On -station studies
FSR: Study of farming system by modeling, using suitable
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81On-farm research: On -farm research refers to the research
which is conducted at farmers’ field in relatively large plots
compared to conventional on -station research with active
participation of the farmers with the hope that technology generated
through the combined efforts of researchers and farmers will be
realistic to the socio -economic environmen t of the resource poor
group and the problematic situations that the farmers practically
face during the process of farming. While conducting on -farm
research in farming system perspective the following principles
needs to be considered.
i)The whole fa rm viewed as a system -the research is conducted
with recognition and emphasis on choice of priorities that reflect
the whole farm.
ii)Avoid complex procedures that require scarce and highly
qualified individuals to collect and analyse data.
iii)Maxi mise the returns by making results more widely applicable.
This means defining target groups of farmers (recommendation
domains) in broad terms.
Check your progress
Q-What are the core characteridstics of Farming Systems
Approach?
4.11 SUMMAR Y
Human beings always strive for their development. For this
he makes use of the different factors available in the nature for ex -
animals, land, plants etc. his progress and prosperity depends on
the available natural resources. But in the developmental process
man has started destroying the natural resources available to him,
which has created problems of environmental imbalance and global
warming. So it is very essential for man to make use of the
available natural resources very carefully. For the surv ival of human
being man has to conserve these available natural resources. To
meet the multiple objectives of poverty reduction, food security,
competitiveness and sustainability, several researchers have
recommended the farming systems approach to researc ha n d
development. A farming system is the result of complex interactions
among a number of inter -dependent components, where anmunotes.in

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82individual farmer allocates certain quantities and qualities of four
factors of production, namely land, labour, capital and ma nagement
to which he has access.Government has been laying thrust in
providing gainful employment for the rest period of the year for the
work force and in this backdrop the challenge before the Govt. is to
expand activities under allied sector. Besides, p roviding
employment this will generate additional income for the rural
household. Added to this, this sector will be in a position for
utilization of the unproductive woman power in a productive
manner.
4.12 SELF -STUDY
1.What are natural resources and ex plain the factors of it?
2.Explain the importance of natural resources in rural
development.
3.Explain agricultural allied and subsidiary occupations and its
importance in rural development?
4.Explain in short the different allied and subsidiary occupations
what can be done along with agriculture?
5.Explain the relation of dairy and animal husbandry to
agriculture?
6.Write in detail -Farming System Research
What are the determinants of farming systems?
Development of Rural Backyard Poultry -write in short.
7.Discuss the core characteristics of Farming System Approach.
8.Write short notes on:
i)On farm research
ii)Sericulture
iii)Agroforestry
iv)Mushroom cultivation
References:
1) Grover Indu, Yadav Lalit and Grover Deepak, Agrotech
Publishing Academy Udaipur, 2002 - “ Extension
Management”.
2) Desai Vasant Himalaya Publishing House, Mumbai, 2005 -“
Rural Development in India -Past Present and Future”.
3) Randhara M.S Indian Council of Agricultural Research, New
Delhi, 2002 -“Agric ultural Research in India”.
4) Patel Asha, published by Decent Books, New Delhi, 2005 -
“Gandhian Vision of Rural Development -Its Relevance in
Present Times”.
5) Shepherd Andrew, published by Macmillan press Ltd, Britain,
1998 -“Sustainable Rural Deve lopment”.
munotes.in

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83Unit -5
RURAL INFRASTRUCTURE
Dr. Clementine Rebello
Unit Structure :
5.0 Objectives
5.1 Introduction
5.1.1 Level of Infrastructure Development
5.1.2 Rural Infrastructure and Agricultural Development
5.1.3 Rural Infrastructure and Poverty All eviation
5.1.4 Rural Infrastructure and International Competitiveness
5.2 Problems of the poor
5.3 Strategy for Sustainable development
5.4 Importance of rural infrastructure in rural development
5.5 Concept of rural infrastructure
5.6 Role of Rural Infrastructure in Rural Development
5.7 Development of Infrastructure
5.8 Summary
5.9 Self study
5.0 OBJECTIVES
1.Can study the rural basic infrastructures
2.Can study the problems of the poor and strategy for sustainable
developme nt
3.To know the importance of rural infrastructure in rural
development
4.To understand the concept of rural infrastructure
5.To know the role of infrastructure and its development
5.1 INTRODUCTION
Infrastructure plays a crucial role not only fo r the country’s
economic growth but also in the progress of human development.
Rural areas account for a larger part of the geographical area in
India. Census 2011 reports that there are 6.4 lakh villages in India,
which shelter more than two -third of the country’s population. It has
been a major problem to provide basic infrastructure facilities to thismunotes.in

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84large section of the population, which is spread across 3.28 million
square kilometer of the country’s geographical area.
Infrastructure development plays a key role in both the
economic growth and poverty reduction of the country and it must
become more inclusive as the country matures.
The developing countries having low income have many
rural infrastructural deficiencies despite having a large variatio ni n
the rural infrastructure.
The deficiencies in rural infrastructure in transport system,
energy, telecommunication, etc. leads to poor functioning of the
other related infrastructural facilities. It is very true that the
development of rural infrastru cture promotes growth and poverty
alleviation and the economic rates of return to the investments are
also high.
A country’s prosperity depends upon the countries
agricultural sector, its market and development in the industrial
sector. Electricity, supp ly of finance and transport facility, machines,
tools and implements, skilled workers, energy, market place are all
important and all the above said facilities are called as the
infrastructures of the economy. The infrastructure facility is very
important from the point of view of development of the country.
India being land of villages developing India means developing the
Indian villages in reality. Infrastructures play an important role in
rural development as transport and communication connect the
villages to the market areas, and energy & irrigation are necessary
for agriculture and village industries.
Scientific development, information technology mobilizes the
development of agricultural industries. Development of human
resources depends on the educ ation and health facilities provided.
Investment in rural infrastructure is the need of today. Planning
commission realized the need of the hour and from the first five
years plan it decided to make an increase in the investments in
rural infrastructures. Increase in the investment in countries
infrastructure is seen as per the necessity.
5.1.1 Level of Infrastructure Development
Development of physical as well as social infrastructure
plays an important role in the overall advancement of the rural
econom y, by directly contributing to employment generation and
asset creation. Improved network of physical infrastructure facilities
such as well -built roads, irrigation, rail links, power and
telecommunications, information technology, food storage, cold
chain s, market -growth centers, processing of produce and social
infrastructure support, viz., health and education, water andmunotes.in

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85sanitation and veterinary services & co -operatives are essential for
the development of the rural economy, especially in the era of
liberalization, privatization and globalization (LPG).
5.1.2 Rural Infrastructure and Agricultural Development
The importance of good infrastructure for agricultural
development in developing economies is widely recognized.
“Roads, electricity supplies, t elecommunications, and other
infrastructure services are limited in all rural areas, although they
are of key importance to stimulate agricultural investment and
growth.” (Food and Agriculture Organisation of the United Nations -
FAO 1996 chapter 10, page -15) It also said, “Better
communications are a key requirement. They reduce transportation
cost, increase competition, reduce marketing margins, and in this
way can directly improve farm incomes and private investment
opportunities” (ibid). Investment in infrastructure increases farmer’s
access to input and output markets, helps to stimulate the rural
non-farm economy, increases consumer demand in rural areas and
facilitates the integration of less -favoured rural areas into national
and international econ omies.
5.1.3 Rural Infrastructure and Poverty Alleviation
The impact of rural infrastructure on poverty level is
significant and particularly in the context of achieving Millennium
Development Goals (MDG) in the developing countries. Investment
on the i nfrastructural facilities leads to an increase in the real
income in both agriculture and non -agriculture sectors leading to a
decline in the poverty level. A direct contribution to poverty
alleviation is made by reducing the consumption level and by
provi ding necessary services like health, housing, safe drinking
water, basic sanitation in the initial stage of development. Providing
little finance along with basic infrastructural facilities can generate
incomes in both small -scale agriculture and non -agric ultural rural
enterprises. Rural infrastructure acts as a catalyst in alleviating
poverty but still large disparity is found in the rural and urban areas
in India.
5.1.4 Rural Infrastructure and International Competitiveness
Without making significant investments in rural infrastructure
like roads, transportation and market faci lities the potential benefits
of trade liberalization and globalization in a developing country like
India where majority of the population lives in rural areas and
agriculture playing an important role can’t be obtained. Better
domestic infrastructure cou ld contribute to international
competitiveness through the three channels. They are a) Improving
Price Competitiveness; b) Improving Non -Price Competitiveness;
and c) Attracting Foreign Direct Investments (FDI).munotes.in

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86Check your Progress :
Q-Infrastructure p lays a crucial role not only for the country’s
economic growth but also in the progress of human development.
Explain.
5.2 PROBLEMS OF THE RURAL POOR
Its high time for a change in the planning strategy. The rural
development programmes should i dentify the problems of the poor
and address the local needs, instead of forcing them to accept the
preconceived plans. There should be equal opportunity for the
people and active participation by the people in the society
including the weaker sections and women should be there. The
programme should facilitate sustainable management of natural
resources and environmental protection and lead to better quality of
life. The reasons for rural poverty can be attributed to lack of
resources, confidence among the poor and management for
implementing the development programmes.
Lack of Resources: Most of the rural families depend on agro -
based activities for their livelihood, where land is the limiting factor.
Over 75% of the farmers own less than two hectares of land. As the
percentage of agricultural land is under irrigation is less and the
much is under rainfed areas, a large number of people are
seasonally employed, causing severe underemployment for over
250 days in a year. Many farmers are not able to invest in
necessary inputs to increase their agricultural production even
though they have good quality land along with assured source of
water. Lack of improved germ -plasm, inadequate nutritional
supplement and poor plant protection are the other reasons for
lower crop yields. The average crop yield in India is 1.9 tons as
compared to the world average of 2.5 tons/ha and 4 tons/ha in
China. Motivating the farmers to adopt improved crop management
practices with timely supply of critical inputs will help to boost the
agricultural production.
Lack of Confidence among Poor People:
Due to lack of education, awareness and confidence our
natural resources are not used optimally. This has resulted in the
negligence of various development schemes introduced formunotes.in

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87sustain able use of the available resources. It is feasible to make
sustainable use of the available natural resources through
application of appropriate technology and use of unemployed
labour. To ensure success it is necessary to support the people
with an appro priate technology package with critical inputs and
build a strong infrastructure at various levels to provide necessary
services.
Inspite of many success stories, most of the small and poor
farmers are not confident about their ability to participate in the
development programmes. Neither are they confident about the
appropriateness of the technologies, nor are they convinced about
the capabilities of the development agencies involved in launching
these projects. Poor farmers who have been receiving finan cial
assistance in the past from the Government and other donor
agencies lack adequate motivation and training. In the absence of
their felt needs, they have been misusing these inputs for
unproductive purposes or for mere survival without fulfilling the
project goals. In this process, many poor farmers have developed
a ‘dependency syndrome’ and expect outsiders to provide the
means for their livelihood. They have lost confidence in themselves
as well as in the outsiders.
Lack of Management:
Rural dev elopment projects are often implemented without
adequate planning. Sectorial development activities may not give
expected results in the absence of an integrated approach to tackle
the multidimensional interrelated problems. Apart from integration
of vari ous sectors, many of these projects lack proper planning and
resource mobilisation. Unlike industries, rural development projects
are not implemented on sound management principles taking into
consideration the required inputs, technologies, human skills a nd
opportunities for marketing the produce.
Check your Progress :
Q-Discuss the problems of the rural poor.munotes.in

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885.3 STRATEGY FOR SUSTAINABLE DEVELOPMENT
The development programme should identify the problems
and options to solve these problems , based on the available
resources and technologies. The agricultural development
programme should identify the available resources such as quality
of the land, quantity of water, weather conditions and select
suitable crops that are most productive. A sui table market where
price recovery for the produce will be maximum is ensured if timely
supply of inputs, finance are provided in a project.
Developing the capacity of the target groups through
establishment of local organisations is also necessary. Even after
the project is terminated and the services of outside resource
persons are withdrawn such organisations can organise
procurement and distribution of necessary inputs and marketing of
the produce. Availability of labour and their educational level to
adopt necessary skills is also an important consideration.
However, in most of the villages, idle labour is available in plenty
and skills required for implementing agro -based projects are less
sophisticated. Hence, the labour availability is not a criti cal factor,
but motivating them to take active part in the programme is the key
to success.
5.4 IMPORTANCE OF RURAL INFRASTRUCTURE IN
RURAL DEVELOPMENT
Social and economic infrastructure is very important in the
rural development. Development is faster due to the infrastructural
facilities. Rural infrastructure plays an important in the development
of human resources. It can be described in the following ways.
1) To reduce the rural backwardness
To gain momentum for economic development infrastructural
facilities are very much essential. Constructions of roads make way
for the transport facility, so that the agricultural produce can be
taken to the market. Due to transport and communication facilities
the farmer can communicate with the market area. Ther efore he
can take decisions related to the production and sales of his
agricultural produce. Spread of education and cultural give and take
is possible due to the infrastructural facilities. Increase in the
agricultural production can be done through moder nization of
agriculture. Standard of living of the rural areas increases and rural
backwardness decreases.
2) Development of human resources
Development of human resources depends on the important
factors like education, health and pure drinking water. Sk illed manmunotes.in

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89power is available by educating the mass. Poverty can be
minimized if there is growth in the industrial sector. Growth in the
population can be controlled. The human resources can be healthy
and strong due to the provision of health facilities an d pure drinking
water.
3) Increase in the momentum of production factors
If the rural infrastructure is developed it can be connected to
the various modes of transport and communication media. This
helps in the give and take of ideas, market and product information
at faster rate. Information regarding the employment, trade, capital,
etc is available.
4) For the development of the agricultural sector
Modernization of agriculture depends on the availability of
the infrastructural amenities. Irrigation fa cilities help to increase the
agricultural production. Electrical pumps can be used if electricity is
there. More land can be brought under cultivation with the use of
modern irrigation facilities like drip irrigation and sprinkler irrigation.
Extension of transport and communication facilities and the market
areas, help in gaining proper market value for the agricultural
produce. Development in the agricultural sector is possible because
of all these facilities.
5) Momentum to the rural industrial sector
Infrastructural facilities are essential for the development of
industries. If facilities like water, electricity, transport,
communication, markets, financial institutions, etc are provided in
the rural areas, industrialist would be eager to start industr ies in the
rural areas. Industries based on processing of agricultural produce
will gain momentum. People will get employment locally and
problem of unemployment will be overcome.
6) Decrease in the poverty
Economic development is due to rural infrastruc ture. There
is an increase in the agricultural production and industrialization
gains momentum. The employment is generated in the agricultural
and non -agricultural sector. As a result there is an increase in the
income and poverty is minimized.
7) Social and Cultural progress
Transport and communication facilities are developed due to
infrastructure. Exchange of ideas and culture is possible. We get
information of different methods of production from other various
areas, their culture and traditions. New ideas are generated and are
helpful in the development process.
Infrastructure is one of the social capitals. Infrastructural
investment leads rural development. But the fact is there is nomunotes.in

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90desired progress in the rural infrastructure. As a result the
development of the rural areas is very slow and there are obstacles
in the path in the development process. The big farmers took
benefit of the big and medium irrigation projects. Small and
marginal farmers did not get the benefit due to the negligence of
thesmall irrigation projects.
Check your Progress :
Q-Explain the importance of rural infrastructure in rural
development.
5.5 CONCEPT OF RURAL INFRASTRUCTURE
Rural infrastructure plays an important part in the economic
and social development o f the country. Basic infrastructure is the
capital of the society. It is difficult to define social and economic
infrastructures because of their flexibility. Paul, Rosenten, Reigner,
and Narks have defined social and economic as ‘Investment done
in the wo rk which is socially beneficial’. Those social investments
that are indirectly beneficial to the production processes are termed
as basic infrastructure. Rural infrastructure directly does not
produce goods but create a favorable condition for raising the
economic level.
To achieve the goal of rural development, to gain momentum
in the development process rural infrastructure plays an important
part. Social and cultural development also depends on the
infrastructure. After adopting the concept of welfare state
government is making a large investment in the rural infrastructure.
By adopting the policies of privatization, liberalization and
globalization since 1990 private sector is investing on large scale
on the infrastructure. Due to which there was a dra stic change in
the infrastructural facilities.
Following factors are included in the rural infrastructure:
1) Public Amenities -
a)Electricity for the agricultural and industrial sector.
b)Transport and communication –indivisible factor of the
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91c)Supply of drinking water through taps for people’s health.
d)Disposal of filth and waste matter for health and cleanliness.
2) Public construction -
a)Construction of roads for the transport of agricultural produce,
raw material and fi nished products from the industrial sector.
b)Irrigation projects to supply water to the agricultural sector.
3) Public transport service -
a)Transport is one of the important factors of the basic
infrastructure. It includes road transport, railway tra nsport,
waterways and airways. Transport service is very essential for
transporting the agricultural produce to the market. Economic
and social development takes place because of transport
service.
Check your Progress :
Q–Explain the concept of rural i nfrastructure.
Since independence, many government initiatives have
taken place like IRDP, Indira Awas Yojana, etc. The policy makers
have tried to upgrade the rural infrastructure over the last few
decades. Information and Communication technolog y( I C T )h a s
also played a significant role in education and healthcare sector. At
the grass -root level e -Panchayats have played an important role in
implementing effective governance.
The development of only urban areas will lead to
catastrophic conseque nces in the long run. Therefore a need was
felt to implement various policies / programs in rural India. Rural
Infrastructure Development Fund (RIDF), Bharat Nirman, Mission
2007 have emerged with specified goals to be achieved.
Developing the infrastructu re has to be one of the priorities in rural
India. Social development is not possible if basic amenities and
developing infrastructure in rural areas are not provided. As it is not
possible for the government to reach every nook and corner, NGOs
/SHGs / pr ivate parties to participate in the development process
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925.6 ROLE OF RURAL INFRASTRUCTURE IN RURAL
DEVELOPMENT
In any country, infrastructure plays a very important role in
supporting nations econo mic growth. Typically, rural infrastructure
assumes great importance in India because of the country’s
predominantly rural nature and the crucial linkages of rural
infrastructure to economic growth, poverty alleviation and human
development as a whole in t he country. In fact, as per Census
2011, there are 6.4 lakh villages in India, which shelter more than
two-third of the country’s population. In such a scenario, the role
and importance of rural infrastructure in India cannot be negated.
It is to be noted that rural infrastructure includes irrigation, rural
housing, rural water supply, rural electrification and rural
telecommunication connectivity. In general, rural infrastructure can
provide basic amenities that improve the quality of life of the rural
people. It is also very crucial for agriculture and agro -industries. For
example, development of rural infrastructure can lead to improved
access to market centres for the rural producers, better availability
of inputs and raw materials at reduced prices and improved
mobility.
If we talk about the rural road infrastructure, then it can
provide mobility and connectivity to more than 800 million people
living in rural areas. Better network of rural roads can provide a
boost to the agricultural activities by mak ing water, seeds and other
raw materials needed for farming reach in time to the farmer. Rural
roads can provide better connectivity by enhancing employment
opportunities too in the non -agriculture sector as masses can move
freely from one place to another . Rural roads can ensure that the
rural areas are served with better public services and all the
benefits offered by the state reach the far -flung and remotest areas
easily. Thus overall, rural road infrastructure can help in eradicating
poverty in rural a reas as it can provide better livelihood to people
and better access to education and health services and other basic
services.
Further, rural electrification infrastructure can very well cater
to the requirements of agriculture and other activities inclu ding
irrigation pump sets, small and medium industries, khadi and village
industries, cold storage chains, healthcare, education and rural IT.
Rural water supply system infrastructure can lead to sustainability
of systems and sources and tackle the problem of water quality,
thereby, increasing good health of people. As far as rural housing
infrastructure is considered, it can improve the living standard of the
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93Development of rural power, irrigation, water, sanitation and
road infrastructure can increase productivity, savings, income and
tourism and result in better jobs and health of rural people. Thus,
better infrastructure has the potential to promote overall growth of
the rural community and impact the country’s economy as well.
India has de veloped a reasonably wide road network in the
last few decades. As far as rural India is concerned, the road
network has been increased from 3,54,530 km in 1971 to 24,50,559
km in 2008 (including10,61,809 lakh km roads constructed under
Jawahar Rozgar Yoja na and Pradhan Mantri GramSadak Yojana)
registering an annual compound growth rate of 5.4 percent over
this period. However, the rural surfaced road coverage is just 33
percent of the total rural road network in India. The kutcha roads,
which are highly vu lnerable and inaccessible particularly during the
rainy season, cover a large portion in total rural road network.
Given the wide diversity in physical structure of the country, the
need for greater surfaced road connectivity is important particularly
in the hilly terrains and low lying areas.
Power Electricity has become a necessity for every
household. The governments at the Centre and States have been
trying to push various reforms in power sector in order to provide
Electricity to people at affordable prices. According to the Central
Electricity Authority, Government of India, a total of 5,56,633
villages have been electrified, which stands at 87 percent of total
villages in the country at present. However, even within the
electrified villages, many hou seholds are not connected with
electricity. The Census 2011 indicates that 45 percent of the rural
households are not connected with electricity and depend on
kerosene and other means for lighting. In terms of the per capita
power consumption level, India continues to be among the low
performing countries in the world.
The Central Government has launched a few policies like
provisioning of 1 kwh of free power per day to the BPL families. The
hybrid electricity provisioning through off -grid connectivity and
power supply from cogeneration, solar and micro -hydro projects
have been some of the programmes implemented by the Central
Government to bring the remote villages under the coverage of
power supply.
Housing
The housing conditions in rural India have not improved
much. According to Census 2011, as much as 20.7 percent of the
total 206 million (or 20.6 crore) occupied rural houses are with
thatched roofs. These houses are not safe for living, highly
vulnerable to rainfall, wind blow, fire and many other acc idents.
Some of the government interventions, such as, Indira Awasmunotes.in

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94Yojana (IAY), operation of corpus funds like Rural Infrastructure
Development Fund (RIDF) by the National Bank for Agriculture and
Rural Development (NABARD) and Rural Housing Fund by the
National Housing Bank, aim at promoting rural housing in the
country. However, a lot more needs to be done to provide better
housing facilities to the rural population.
Education
The 8thAll India School Education Survey (AISE) report
shows that there are 6.75 lakh primary schools functioning in rural
areas in the country, which means that on an average every village
in India has a primary school. Even in terms of the number of
classrooms, availability of safe drinking water facilities, toilet
facilities e tc. the school infrastructure in rural India needs a lot more
improvement. Therefore, governments at various levels need to be
pro-active to develop and maintain the infrastructure for education
in rural areas.
Health
Health infrastructure in rural India is still quite inadequate. As
on March 2011, the total of 6.4 lakh villages in the country were
covered with only 23,887 Primary Health Centres (PHCs) and
1,48,124 Sub -Centres. This shows that, on an average, 4.3 villages
have one sub -centre and only one P HC exists for as many as 27
villages. Added to this, many health centres are also run without
doctors (or absentee doctors) and in some cases treatment is done
by unskilled healthcare workers. Absence of connectivity to the
villages and inadequate number o f health centres and skilled health
workers still endangers the life of rural population in the country.
Drinking Water and Sanitation
Provisioning of safe drinking water to every household
should be one of the basic policy priorities. However, the Census
2011 reports a mere 30 percent of rural area being covered with
tapped water supply. Households in the remaining rural areas in the
country depend on other means like hand pumps, bore well and
fetching water from nearby rivers and canals etc. The poor
sanitation facilities in the rural belt have been an equally
challenging issue for the government. The Census 2011 report
reveals that 69.3 percent of rural households in the country still
resort to open defecation. The Union Ministry of Drinking Water and
Sanitation also reports that many Primary Schools and Anganwadi
Centres in the rural areas do not yet have toilets. Hence,
provisioning of safe drinking water and sanitation facilities in rural
areas need to be a top priority for the government now. We need to
remember that rural economy still plays a significant role in India’s
overall economy. The rural sector has a very high potential in terms
labour and natural resources, which are the basic inputs in
production process. However, among other factors, lack ofmunotes.in

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95adequate infrastructure has been driving the rural labour into
poverty and deprivation.
Provisioning of basic infrastructure facilities would help in
tapping the vast resources in the rural areas in India. Therefore, the
gaps in rural infrastructure n eed to be addressed properly so as to
achieve redistributive growth and alleviate poverty in the country.
Check your Progress :
Q-What role does rural infrastructure play in rural development?
5.7 DEVELOPMENT OF INFRASTRUCTURE
To sort out the above problems, we need to develop a strong
infrastructure at various levels. Apart from mobilising people,
infrastructure is also necessary to organise input supply, finance,
post-production processing and marketing of the produce.
Inadequate marketing ne twork is another major bottleneck in
agriculture. The farmers should be oriented to make a swift
forecast of the demand for various commodities and exploit the
opportunities. There is good scope for setting up market outlets to
reach the customers withou t involving too many middlemen. Such
agencies can support farmers with seeds of improved varieties,
finance and other critical inputs for optimising their crop yields.
The Agricultural Marketing Boards, Milk Cooperatives and
Federations that are ineffici ent and politically oriented presently
provide marketing services. Many of these cooperatives are not
competent and are outdated. Very often they end up in losses
because of mis -management and ignorance. In this process, the
innocent farmers suffer heavy losses. Presently, only a few
Farmers’ Organisations, Sugar Cooperatives, Milk Unions, Grape
Growers Cooperatives, Apple Growers Cooperatives and Tea
Growers’ Association, etc. are fairly successful only because of
their professional approach in operating the business. The strength
of these organisations can be extended to other crops in different
regions. Development of village level farmers’ organisations, which
can directly deal with reliable business houses or trade outlets
should also be encouraged. Industries can play a significant role in
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96Self Help Group (SHG) of 10 -20 farmers can be an effective
non-formal organisation to provide necessary services and facilities
to the members. The SHGs should preferably consist of a
homogeneous group of members, preferably separate for men and
women. These groups can share their concerns and plans on
various development activities to be undertaken jointly and
individually. They can also organise pro curement of agricultural
inputs, credit, technical services and marketing of the produce.
Several SHGs can jointly form a village level or block level Farmers’
Association or Cooperative Federation to organise technology
transfer, processing, marketing and other services.
Voluntary Organisations working at the block level can play a
significant role in capacity building of the SHGs and Farmers’
Organisations and facilitate a close link between the SHGs and
Gram Panchayats. NGOs can also help the SHGs to a rrange
processing and marketing of the produce through various industries
and consumer organisations. The role of Technology Development
Institutions and Financial Institutions can also be made very
effective, if they can establish a close link with the v illage level
organisations and SHGs.
Agricultural extension services are presently being provided
by the Zilla Panchayat through Gram Sevaks. However, most of
them are ineffective in dealing with farmers who are located far
away and are least receptive. Thus, the technology transfer in
backward areas is extremely slow. Even the earlier effort to
disburse bank loans to farmers either directly or through the
cooperative societies has not been successful due to lack of
motivation and inadequate pressure fr om their peer groups. These
drawbacks can be minimised through the formation of SHGs and
involvement of local voluntary organisations.
Check your Progress :
Q-Write short note on development of infrastructure.
5.8 SUMMARY
Infrastructure plays a crucial role not only for the country’s
economic growth but also in the progress of human development.munotes.in

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97The deficiencies in rural infrastructure in transport system, energy,
telecommunication, etc. leads to poor functioning of the other
related infrastru ctural facilities. Infrastructures play an important
role in rural development as transport and communication connect
the villages to the market areas, and energy & irrigation are
necessary for agriculture and village industries.
Scientific development, i nformation technology mobilizes the
development of agricultural industries. Development of human
resources depends on the education and health facilities provided.
Investment in rural infrastructure is the need of today. Planning
commission realized the ne ed of the hour and from the first five
years plan it decided to make an increase in the investments in
rural infrastructures. Increase in the investment in countries
infrastructure is seen as per the necessity. Rural infrastructure acts
as a catalyst in al leviating poverty but still large disparity is found in
the rural and urban areas in India. Without making significant
investments in rural infrastructure like roads, transportation and
market facilities the potential benefits of trade liberalization and
globalization in a developing country like India where majority of the
population lives in rural areas and agriculture playing an important
role can’t be obtained. Rural infrastructure assumes great
importance in India because of the country’s predominantly rural
nature and the crucial linkages of rural infrastructure to economic
growth, poverty alleviation and human development as a whole in
the country.
5.9 SELF STUDY
1.Infrastructure plays a crucial role not only for the country’s
economic growth but als o in the progress of human
development. Explain.
2.Discuss the problems of the rural poor.
3.Explain the importance of rural infrastructure in rural
development.
4.Explain the concept of rural infrastructure.
5.What role does rural infrastructure play in rural de velopment?
6.Write short note on development of infrastructure.
7.Write short notes on:
Rural Infrastructure and Agricultural Development and
poverty alleviation
Lack of Confidence among Poor People
Lack of resources and managementmunotes.in

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98Strategy for Sustainable Dev elopment
Factors included in the rural infrastructure
Drinking Water and Sanitation
References:
www.academia.edu/198095/RURAL_INFRASTRUCTURE_AND… ..
www.lupindia.in/606/IJI_Rural_ Infrastructure_7.html
www.cbgaindia.org (Sridhar Kundu)
Development of Infrastructure for Rural Prosperity ,N.G. Hegde
Development of Infrastructure for Rural Prosperity. Proc. of the
National Seminar on Rural Prosperity and Agriculture: Policies and
Strategies. Infrastructure and Institutional Support held on Nov. 5 -6,
1999. National Institute of Rural Development, Hyderabad.
Sept.,2000. : 60 -71.

munotes.in

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99Unit -6
TRANSPORT, COMMUNICATION,
DRINKING WATER AND
ELECTRIFICATION
Dr. Anjali D. Patil
Unit Structure :
6.0 Objectives
6.1 Introduction
6.2 Transport and Communication
6.2.1 Transport
6.2.2 Information and Commu nication technology (ICT)
6.3 Drinking Water
6.3.1 Drinking water supply and sanitation in India
6.3.2 Sanitation
6.3.3 Demand -driven approaches in rural water supply
6.4 Rural Electrification
6.5 Summary
6.6 Self-Stud y
6.0OBJECTIVES
To study the importance of Transport and Communication.
To know about the drinking water facilities in the rural areas.
Information regarding rural electrification will be available.
6.1 INTRODUCTION
Rural roads are an importa nt sector in rural development,
which deals in all aspects of development including agriculture,
health, education, forestry, fisheries, small -scale industries, trade,
commerce etc. that depends on good communication.
Technology has become a part of lif ea n dl i v e l i h o o do fa n y
country. In the 20th century, rapid technological advances led to
rising standards of living, literacy, health and life expectancy.
Transport and communication helps in connecting with the world in
no time. The lack of adequate san itation and safe water has
significant negative health impacts. India’s huge and growingmunotes.in

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100population is putting a severe strain on all of the country’s natural
resources. Most water sources are contaminated by sewage and
agricultural runoff. India has made progress in the supply of safe
water to its people, but gross disparity in coverage exists across the
country. Therefore it is very important to provide safe drinking
water, safe and hygienic environment and sanitation facilities in
rural areas.
Rural el ectrification program has been the extension of the
grid to cover the rural areas, so far not covered. This has certainly
helped in making electricity available to a significant section. Only
recently, most of the planners and policy makers have realized t he
futility of trying to achieve 100% electrification through grid
extension. There is need for more comprehensive approach to rural
electrification.
6.2 TRANSPORT AND COMMUNICATION
Transport and Communication are an integral part of rural
development .
6.2.1 Transport :
Rural road connectivity is not only the key component of
Rural Development in India, but also recognized as an effective
poverty reduction program. An improved accessibility to all quarters
of a village is an indispensable prerequ isite for the provision of
adequate living conditions in rural areas. The interdependency in
change of land use and transportation is not promoted in rural
areas and this keeps the economic system inactive in these areas.
The absence of roads in rural area s leads to stagnation of socio -
economic conditions of the villagers.
The network planning should promote the objectives like
accessibility and connectivity to most of the places in the region. A
proper skeleton of road network will create a promotional impact of
land use activity.
Transportation is the movement of people, animals and
goods from one location to another. Modes of transport include air,
rail, road, water, cable, pipeline and space. Transport is important
because it enables trade between people, which is essential for the
development of civilizations.
Roadways
Ar o a di sa ni d e n t i f i a b l er o u t e ,w a yo rp a t hb e t w e e nt w oo r
more places. Roads are typically smoothed, paved, or otherwise
prepared to allow easy travel, though they need not be, and
historically many roads were simply recognizable routes withoutmunotes.in

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101any formal construction or maintenance. In urban areas, roads may
pass through a city or village and be named as streets serving a
dual function as urban space easement and route. Road transport
offers a complete fre edom to road users to transfer the vehicle from
one lane to the other and from one road to another according to the
need and convenience. It is possible to provide door -to-door
service only by road transport.
Rail Transport
Railways are an important means of land transport. The
India railway system is today the largest in Asia and the second
largest in the world. The Indian railways carry crores of passengers
and heavy and bulky goods from one part of country to another.
Railways connect all the impo rtant towns and cities. Railways
provide a cheap and fast means of transport. In many times of
crisis, such as floods, famines and wars, railways carry men and
materials to places where they are most needed. In big cities, we
have local train service also. Kolkata is the only city in our country,
which has an underground railway system, called the Metro
service. Freight trains traditionally used boxcar sHYPERLINK
"http://en.wikipedia.org/wiki/Box_car", requiring manual loading and
unloading of the cargo .Railways have directly or indirectly have
created employment opportunities throughout. Transport of goods
has become easier from different parts of the country. It has
resulted in the growth of industrial sector in the country.
Air Transport
Aero planes are the fastest means of transport. All our major
cities are connected to one another and to almost every part of the
world through air transport. Air transport has made not only our
country but also the entire world very small.
Helicopters and aeroplanes are pressed into service in times
of floods, ot her natural calamities or accidents. However, air travel
is expensive. It is also not possible to transport heavy and bulky
goods by air.
The development of fast means of transport has increased
the trade not only within the country, but also between dif ferent
countries of the world. It is now possible to buy goods produced in
other parts of the country, and the world, from our local market.
Water Transport
Ships and boats are means of water transport. Ships sail in
the oceans and seas, carrying all ty pes of goods from one part of
the world to another. India has many ports along its long coastline.
Steamers and boats sail along big rivers carrying passengers and
goods from town to town, along their banks in India. Big rivers like
the Ganga and Brahmap utra are used extensively as an inlandmunotes.in

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102means of water transport. The backwaters of Kerala are also widely
used for water transport. Water transport may be slow as compared
to road, rail or air transport but it is a cheap way to transport bulky
goods over l ong distances. In the same way water transport is
carried out through rivers, lakes, canals, creeks.
Check your Progress:
Q-Explain the various modes of transport.
6.2.2 Information and Communication technology (ICT)
Since early 90s Informa tion and Communication
Technologies are playing a pivotal role in the development process.
In the globalization era, India using ICTs to promote their
development programs as well as reaches the poor to strengthen
their livelihood.
Technology is a double -edged sword in present days. It has
become a part of life and livelihood of the people in the country. In
the 20th century, rapid technological advances led to rising
standards of living, literacy, health and life expectancy. The
promise of Information an d Communication Technologies (ICTs) for
the 21st century likewise presents both opportunities and
challenges. ICTs, like all technologies, are tools. In the era of
globalization information revolution and the extraordinary increase
in the spread of knowled ge have given birth to a new era -one of
knowledge and information that affects directly economic, social,
cultural and political activities of all regions of the world, including
India.
In easy terms ICT is defined as technologies that facilitate
commun ication, processing and transmission of information in the
electronic format. The progress of any market mainly depends on
the access to information. The Information and Communication
Technologies (ICTs) greatly facilitate the flow of information and
knowl edge by presenting the rural consumers extraordinary
opportunities to attain their own entitlements. There is a
comprehensible relationship between ICTs and the rural consumer
empowerment.
ICT can be used as an effective tool for rural consumer
empowerm ent. The rural consumer acting solely will be able tomunotes.in

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103obtain the information they require once they have access to
Internet. The knowledge obtained is sufficient to begin the process
of identifying and mobilizing proper information resources. It can be
used to create the demand that will generate the detailed
information requirements necessary for the construction of useful
information system.
Beneficial for the farmers
One of the benefits of ICT lies in providing timely and
accurate information. Now th e rural consumer can get information
about the weather, including monsoon and threat of floods and
other natural calamities. It reduces the farmer’s dependence on
uncontrollable natural factors and also allows them to plan their
crops accordingly. It acts as a warning signal and helps the farmers
to avoid risks.
ICT has remarkable potential to make the information
available at the right time thereby empowering the rural consumer.
It is considered as the lifeline of economic and social development
of the r ural consumers.
Hindrances in implementing ICT in rural areas -
a)Due to lack of awareness about information technology and
illiteracy it can be a hindrance in implementing ICT in rural areas
b)Inadequate, inconsistent and unpredictable power supp ly in the
rural areas poses a serious threat to efficiency of ICT.
c)Non-accessibility of secure, robust and economical broadband
connectivity in rural market continues to hamper the growth of
ICT.
d)Poor people and disadvantaged group like women m ay have
restraint in the use of ICT for their specific purpose.
e)Software packages and content not in local language is another
hindrance for rural consumers as most of the rural consumer
are not comfortable in English language.
f)Short lifecycle of IT assets due to high rate of depreciation and
obsolescence is another factor acting as a threat to the viability
of ICTs.
Developing ICT for Rural Consumers -Planning and
Implementation:
Assessing the information needs are very essential elements
inthe context of ICT for rural consumers. The marketers and
software developers should keep in mind wide range of resources
and applications of ICT that are of potential use to the consumers.
Actually it is the information that has direct impact on the dema nds
of the rural market so it is of paramount importance that anymunotes.in

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104applications should be developed only after an accurate
assessment of the needs and wants of the rural consumers. The
organizations have to use rapid and participatory rural appraisals
and o ther survey instruments to ensure timely and accurate
information about the rural market. These tools could be used in the
context of ICT initiatives. Once the information needs of the
consumers are assessed, marketing plan and software applications
should be developed with continuous involvement and feedback
from rural consumers. For effective utilization of information about
the rural consumers, the information has to be divided into different
information networks and organized accordingly. The working
group of the ministry of IT recommended computer education at the
block level by establishing computer education amenities in rural
areas. This is a segment where investment is required incessantly
in order to improve the educational standards of the rural
consumer.
Initiatives for rural consumers need to be approached with a
measure of carefulness. The challenge is to help build the capacity
of market intermediaries or assist in the establishment and
promotion of consumer information centers. To achieve
sustainability marketing strategy must deal with the real needs of
the rural consumers. The rural youth has to be given a major place
in the whole plan. Training the youth to broaden the concept of ICT
successfully is very essential. It should be made mandat ory for the
sarpanch to be computer literate. Software packages in local
languages need to be developed to have a wider usage of ICT by
rural consumers. Incentive should be provided to encourage the
rural consumer to adopt the program. The Panchayat can pr opose
the names of few persons to get training in information technology.
There is also a gender dimension to the information needed. For
instance, quite often women require specific health related
information. The position of women has to be dominant in t he
villages. Rural women have proved their mettle in many endeavors
like in the development of cooperatives and SHGs (Self Help
Group). The women have to assume larger responsibilities, as they
are the promoters of tomorrow’s citizens. The rural consumers
should have a sense of ownership of the knowledge management
centers; otherwise it will be difficult to sustain them.
The ICT network should include information on preventive
health issues, to prevent any possible spread of epidemics and
other diseases. Ministry of Information technology (MIT) has also
initiated a development project on telemedicine in association with
leading medical institutes. Community radio and the All India Radio
can be of immense help in communicating up to date information to
those who will benefit from it. In order to reach to the bottom of the
pyramid level an integrated ICT system is of supreme value. It is
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105consumer in their local language so that they decipher the content
easily. Mobile phones can be also used as a potential source of
growth. Mobiles allow communication to bridge the digital divide by
leapfrogging and breaking the hierarchical pattern of technology
diffusion. Short message Service (SMS) can be used to deliver a
wide range of information to rural consumers like crop prices,
weather patterns, utility services etc. Panchayat are the movers of
rural economy. To promote ICT in rural market, the best way is to
make panchayat IT savvy. The development of on line panchayat
will lead to efficient selling and distribution of crops. With the
availability of the Internet in rural market, the procurement process
can be reorganized. The requirement of the middlemen will be
reduced to a great extent. Farmers can deal with the end users like
the industrial buyer and consumers directly. It will bring about
synergy of farmers and manufacturers and equally benefit them.
Farmers will receive more value and the industrial buyer will enjoy
less cost and better quality of agr icultural products. This will make
panchayat hub of distribution and selling in the rural market and
thus can protect the farmers from exploitation.
One of the important methods is by arranging seminars at
the village level. Education is the moral fiber of any state. In this
regard, exclusive programs and television channels are dedicated
to direct the education chapters. This has become possible in rural
areas as they cannot leave the daily employment and come to
nearby towns to avail education. In this regard, educational
programs on television are a forward step.
Some private companies have been extremely successful in
implementing ICT in villages. It has brought about exceptional
transformation in the rural market and is helping to lessen the rural
seclusion. It has lead to more transparency for farmers and
improved their productivity and incomes. It demonstrates that a
large corporation can play a major role in organizing markets and
increasing the efficiency of an agricultural system in ways that
benefit both farmers and stakeholders.
The rapid expansion of Information and communication
technology will significantly improve the living standards of the rural
consumers. The need to carry out research on implementation of
ICT in the rural market is of utmost importance. The application of
ICT in various sectors of rural market such as education, health,
agriculture, farming and rural economic development will definitely
accelerate the rural growth. Despite the fact that ICT has
significantly entered into all aspects of our lives, impact of ICT in
rural areas is very limited. The answer therefore lies in effective
transfer of funds from the urban areas to the rural areas to initiate
the development in the rural areas. At the same time the attitude of
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106developmental work is the task of government only. It can be
observed that at the village level, where the panchayats are given
money for various projects and they get the work done by villagers
bypaying them meager amount. They are thus exploited because
of illiteracy and general ignorance. Hence the slogan of consumer
involvement works only when the villagers see some tangible
benefits. We can infer from our experience that a close and
continuing association between information providers and
consumers is essential for effective information delivery.
Check your Progress :
Q-Explain the different means of Communication.
6.3DRINKING WATER
India’s huge and growing population is putt ing a severe
strain on all of the country’s natural resources. Most water sources
are contaminated by sewage and agricultural runoff. India has
made progress in the supply of safe water to its people, but gross
disparity in coverage exists across the count ry. Hygiene practices
also continue to be a problem in India. Latrine usage is extremely
poor in rural areas of the country; only 14% of the rural population
has access to a latrine. Hand washing is also very low, increasing
the spread of disease. In order to decrease the amount of disease
spread through drinking water, latrine usage and hygiene must be
improved simultaneously.
6.3.1Drinking water supply and sanitation in India continue to be
inadequate, despite longstanding efforts by the various level so f
government and communities at improving coverage. The level of
investment in water and sanitation, albeit low by international
standards, has increased in size during the 2000s. Access has also
increased significantly. At the same time, local governme nt
institutions in charge of operating and maintaining the infrastructure
are seen as weak and lack the financial resources to carry out their
functions. In addition, only two Indian cities have continuous water
supply and an estimated 69% of Indians still lack access to
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107A number of innovative approaches to improve water supply
and sanitation have been tested in India, in particular in the early
2000s. These include demand -driven approaches in rural water
supply since 1999 , community -led total sanitation, a public -private
partnerships to improve the continuity of urban water supply in
Karnataka, and the use of micro -credit to women in order to
improve access to water. The government of Delhi decided that
beginning on 1 Janu ary 2014 it will provide 666 liters of free water
every day to households with functioning water meters.
Water supply and water resources -
Depleting ground water table and deteriorating ground water
quality are threatening the sustainability of both urban and rural
water supply in many parts of India. The supply of cities that
depend on surface water is threatened by pollution, increasing
water scarcity and conflicts among users.
In some coastal areas seawater desalination is becoming an
important source of drinking water supply.
Responsibility for water supply and sanitation
Water supply and sanitation is a State responsibility unde r
the Indian Constitution. States may give the responsibility to the
Panchayat Raj Institutions (PRI) in rural areas. At present, states
generally plan, design and execute water supply schemes (and
often operate them) through their State Departments (of Pu blic
Health Engineering or Rural Development Engineering) or State
Water Boards. Highly centralized decision -making and approvals at
the state level, which are characteristic of the Indian civil service,
affect the management of water supply and sanitation services.
6.3.2 Sanitation
Most Indians depend on on -site sanitation facilities.
Recently, access to on -site sanitation has been increased in both
rural and urban areas. In rural areas, total sanitation has been
successful. In urban areas, a good prac tice is the Slum Sanitation
Program in Mumbai that has provided access to sanitation for a
quarter million slum dwellers. Sewerage, where available, is often
in a bad state. Of the 2.5 Billion people in the world that defecate
openly, some 665 million live in India. This is of greater concern as
88% of deaths from diarrhea occurring because of unsafe water,
inadequate sanitation and poor hygiene.
Policy and regulation
Various Ministries share the responsibility for water supply
and sanitation at the cen tral and state level. At the central level
three Ministries have responsibilities in the sector: The Ministry of
Drinking Water and Sanitation (until 2011 the Department of
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108responsible for rura l water supply and sanitation; the Ministry of
Housing and Urban Poverty Alleviation and the Ministry of Urban
Development share the responsibility for urban water supply and
sanitation. Rural areas .T h e r ea r ea b o u ta1 0 0 , 0 0 0r u r a lw a t e r
supply systems in India. At least in some states, responsibility for
service provision is in the process of being partially transferred from
State Water Boards and district governments to Panchayat Raj
Institutions (PRI) at the block or village Where this transfer has
been initiated, it seems to be more advanced for single -village
water schemes than for more complex multi -village water schemes.
Households themselves in the form of latrines typically provide rural
sanitation.
Innovative approaches
A number of innovative approaches to improve water supply
and sanitation have been tested in India. These include community -
led total sanitation, demand -driven approaches in rural water
supply, and the use of micro -credit to women in order to improve
access to water.
Community -led total sanitation
Ad e m a n d -driven and people -centered sanitation program
was initiated under the name Total Sanitation Campaign (TSC) or
Community -led total sanitation. It evolved from the lim ited
achievements of the first structured program for rural sanitation in
India, the Central Rural Sanitation Program, which had minimal
community participation. The main goal of Total Sanitation
Campaign is to eradicate the practice of open defecation by 2017.
Community -led total sanitation is not focused on building
infrastructure, but on preventing open defecation through peer
pressure and shame. In Maharashtra where the program started
more than 2000 Gram Panchayats have achieved "open defecation
free" status. Villages that achieve this status receive monetary
rewards and high publicity under a program called Nirmal Gram
Puraskar.
6.3.3 Demand -driven approaches in rural water supply
Most rural water supply schemes in India use a centralized,
supply -driven approach, i.e. a government institution designs a
project and has it built with little community consultation and no
capacity building for the community, often requiring no water fees to
be paid for its subsequent operation. The program, called
Swaja ldhara , decentralizes service delivery responsibility to rural
local governments and user groups. Under the new approach
communities are being consulted and trained, and users agree up -
front to pay a tariff that is set at a level sufficiently high to cover
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109Since water users have to pay lower or no tariffs under the
supply -driven approach, this discourages them to opt for a demand -
driven approach, even if the likelihood of the systems operating on
a sustainable basis is highe ru n d e rad e m a n d -driven approach.
Cost recovery in rural areas is low and a majority of the rural water
systems are defunct for lack of maintenance. Some state
governments subsidize rural water systems, but funds are scarce
and insufficient.
Check your Progress :
Q–Give the importance of Drinking Water.
6.4 RURAL ELECTRIFICATION
Rural electrification is the process of bringing electrical
power to the rural and remote areas. Electricity is used not only for
lighting and household purposes , but it also for mechanization of
many farming operations, such as threshing, milking, and hoisting
grain for storage. In areas facing labor shortages, this allows for
greater productivity at reduced cost.
Rural areas in India are electrified non -unifor mly, with richer
states being able to provide a majority of the villages with power
while poorer states still struggling to do so. The Rural Electrification
Corporation Limited was formed to specifically address the issue of
providing electricity in all th e villages across the country. Poverty,
lack of resources, lack of political will, poor planning and electricity
theft are some of the major causes which has left many villages in
India without electricity, while urban areas have enjoyed growth in
electric ity consumption and capacity. Programs such as the JNN
solar mission, Pradhan Mantri Gram Vidyut Yojana have been
implemented to fasten the pace of electrification and diversify the
procedure. The work is also on going for reducing wastage,
providing bette r equipments and improving the overall infrastructure
for electrical transmissions in villages.
6.4.1 Background
One of the key challenges of the electricity sector is
development of rural electrification. This has been a problem not
only in India but also across the globe. Even today, vast majoritiesmunotes.in

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110of the people in the rural areas in the developing and
underdeveloped countries do not have access to commercial forms
of energy like electricity. Most of these people are dependent on
the traditional fue ls of wood, dung and crop residue and often use
primitive and inefficient technologies. For many, this combination
barely allows fulfillment of the basic human needs of nutrition,
warmth and light, let alone the possibility of harnessing energy for
product ive uses which might begin to permit escape from the cycle
of poverty.
Indian Story
There are different parameters used to measure the level of
rural electrification. For the current practice, the emphasis is on the
number of villages connected to the grid. Initially, a village was
classified as electrified if electricity was being used within its
revenue area for any purpose whatsoever. Subsequently, this
definition of village electrification was reviewed in consultation with
the State Governments and State Electricity Boards and modified,
as “A village will be deemed to be electrified if electricity is used in
the inhabited locality within the revenue boundary of the village for
any purpose whatsoever.”
On a deeper analysis, this data reveals very l ittle. It does not
truly represent the extent of electrification in the rural areas.
Interestingly, only 44 % of the rural households have access to
electricity. 6 of the 27 Indian states have more than 80% of the rural
households without access to electri city.
In order to make the metric for measuring level of rural
electrification somewhat meaningful, it has been decided to revise
the definition of village electrification and a new proposed definition
of village electrification is as under:
1)Basic infrastructure such as Distribution Transformer and
Distribution lines are provided in the inhabited locality as well as
the Dalit Basti/ hamlet where it exists. (For electrification
through Non Conventional Energy Sources a Distribution
transformer may no t be necessary).
2)Electricity is provided to public places like Schools, Panchayat
Office, Health Centres, Dispensaries, Community centers etc.
and
3)The number of households electrified should be at least 10% of
the total number of households in the village.
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1116.4.2 Rural Electrification Approach
So far the interpretation of rural electrification programs has
been the extension of the grid to cover the rural areas, so far not
covered. T his has certainly helped in making electricity available to
a significant section. However, there are several limitations to the
approach of rural electrification being treated as a grid extension
issue. Only recently, most of the planners and policy maker sh a v e
realized the futility of trying to achieve 100% electrification through
grid extension. There is need for more comprehensive approach to
rural electrification.
Rajiv Gandhi Yojana
Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) was
launched in A pril 2005. It aims at providing electricity in all villages
and habitations in four years and provides access to electricity to all
rural households. Importantly this program has been brought under
the ambit of Bharat Nirman. Under RGGVY, electricity dist ribution
infrastructures envisaged to establish Rural Electricity Distribution
Backbone (REDB). This infrastructure would cater to the
requirements of agriculture and other activities in rural areas
including irrigation pump sets, small and medium industri es, khadi
and village industries, health care, education and IT. This would
facilitate overall rural development, employment generation and
poverty alleviation. Subsidy towards capital expenditure to the tune
of 90% will be provided Rural Electrification C orporation Limited
(REC), which is a nodal agency for implementation of the schemes.
Electrification of the un electrified Below Poverty Line (BPL)
households will be financed with 100% capital subsidy @ Rs 1500/ -
per connection in rural habitations. The M anagement of Rural
Electrification is mandated through franchisee. The services of
Central Public Sector Undertakings (CPSU) are available to the
states for assisting them in the execution of Rural Electrification
Projects.
6.4.3 Rural Electrification & Panchayati Raj
The Constitution (73rd Amendment) Act, 1992 provided a
constitutional status to the Panchayati Raj Institutions (PRIs). There
has been a paradigm shift in the approach for rural development
focusing on decentralization and devolution of fi nancial &
administrative power. The three -tier PRI structure would have
powers and responsibilities the preparation of plans for economic
development and social justice. The 11th schedule of the 73rd
Amendment specifies 29 areas of responsibility covering different
aspects of village life, which the State may transfer to the PRIs
along with the necessary means and decision -making ability. Rural
electrification including electricity distribution is the 14th subject of
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112Pursuant to the Amendment, many of the States have
initiated moves to transfer the electricity distribution and rural
electrification tasks to the Panchayats. Government of Maharashtra
had constituted a study group to analyze the issues related to
Transfer of Mah arashtra State Electricity Board’s Rural Electricity
Distribution & Rural Electrification Scheme to Panchayats.
Check your Progress :
Q–Give the importance of rural electrification in rural development.
6.5 SUMMARY
From the modes of transp orts it is understood that these
modes of transport are very important to bring about the economic
and social development in the rural areas. It is due to the transport
facilities new investments would be attracted in the rural areas and
give momentum to r ural development. A proper skeleton of road
network will create a promotional impact of land use activity.
Technology is a double -edged sword in present days. The
application of ICT in various sectors of rural market such as
education, health, agriculture ,f a r m i n ga n dr u r a le c o n o m i c
development will definitely accelerate the rural growth. Ad e m a n d -
driven and people -centered sanitation program was initiated under
the name Total Sanitation Campaign (TSC) or Community -led total
sanitation. Rural water supply schemes in India use a centralized,
supply -driven approach. Only recently , most of the planners and
policy makers have realized the futility of trying to achieve 100%
electrification through grid extension.
6.6 SELF –STUDY
1.Give the information of th e various modes of transport.
2.Explain the importance of Information and Communication
Technology.
3.Explain the important factors of rural infrastructures.
4.Short notes
a) Drinking water
b) Rural Electrification
c) Cleanliness and Hygiene
d) Rural hea lth, nutrition, water supply, and cleanliness.munotes.in

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113Reference:
www.researchgate.com
G. Rajnikanth & R.R Prasad, Discovery Publishing House, New
Delhi, 2006 -“Rural Development and Social Change”.
Mishra S.K & P uri V.K Himalaya Publishing House, 2006 -
Development Issues of Indian Economics”.
Lalitha. N, Dominant Publishers, New Delhi, 2004 -“Rural
Development in India”.
www.Yourarticlelibrary.comHYPERLINK
"http://www.yourarticlelibrary.com/"

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114Unit -7
RURAL INFRASTRUCTURE
(MARKET AND FINANCE)
Dr. Anjali D.Patil
Unit Structure :
7.0 Objectives
7.1 Introduction
7.2 Markets
7.2.1 Types of agricultural markets
7.2.2 Importance of Agricultural Marketing System
7.2.3 Defects in the distribution system
7.2.4 Measures to remove the drawbacks in the agricultural
distribution system
7.3 Finance
7.3.1 Types of loans
7.3.2 Reasons and effects of rural indebtedness
7.3.3 Institutions providing financial assistance in the rural
areas
7.4 Summary
7.5 Self-study
7.0OBJECTIVES
Will get information regarding agricultural markets
Can study the sources of rural finance
Can study in detail the rural markets and finance
7.1 INTRODUCTION
Societies economic stat us proves whether the society is
developed or not. Rural economic status and progress depends on
the agriculture and allied activities. Indebted is also seen on large
scale in the rural society. Even though the government institutions
provide financial ass istance at low rate rural community depends
on the non -institutional sources for financial assistance. Instead of
using loan for productive purpose it is used for unproductive
purpose. As a result indebtedness has increased in the rural
society.munotes.in

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1157.2 MARK ETS
Success of any business depends on the production and
effective and efficient market strategy. The agricultural production
also needs an efficient and coherent market like that of industrial
market. In the olden days agricultural production was only for the
livelihood of the farmers and if a little surplus was sold in the
market. Taking agricultural production for market purpose was not
all the motive of the farmers. During the British rule agriculture was
commercialized and the production was taken f or market purpose.
After independence agricultural movement gained momentum. Due
to green revolution agricultural production increased and there was
a necessity to take the surplus agricultural production to the market.
The agricultural production increase d consistently due to the
increase in institutional finance and basic infrastructural facilities.
So there was a need of markets to sell the agricultural produce.
Market is such a system due to which the producer and
buyer are brought together and a favo rable climate is created for
trade and business. In agricultural trading traders, middlemen and
agents are the link between the producer and the consumer.
‘Market’ is a wide concept. It includes the trading of goods and
services and other related activitie s and businesses.
7.2.1 Types of Agricultural Markets
1) Village Market -If the weekly market place is far away and the
goods produced are in less quantity then the farmer sells his
produce in the village market only. Other than this there are other
reasons like need of money, inadequate transport facility,
indebtedness and many other minor things are responsible to force
the farmer to sell the agricultural produce in the village market.
2) Primary Market -If the farmer has little surplus producti on then
he sells the agricultural produce in the primary market. Such village
is the center point of nearby 8 -10 villages. The farmer gets more
money if he sells goods in this market compared to the village
market.
3) Wholesale Market -Trading of agricultural goods takes place on
large scale in this market. Primary wholesale market and secondary
wholesale market are the two types of wholesale markets. In the
primary market the traders buy and sell the goods, while in the
secondary mark et the traders sell the goods to other traders.
Farmers are not a part of this market.
4) Central Market -The goods purchased in the whole year by the
traders from the secondary market step by step are sold in themunotes.in

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116central market. The consumers purchas et h eg o o d sa sp e rt h e i r
need.
5) Village Fair -Temporary markets are set -up at places of
pilgrimage. Goods like food -grains, vegetables and animals are
traded here.
Agricultural trading has to be made efficient for getting
proper price for the agricultural goods. The chain of middlemen will
be eli minated and the farmer and the consumer would get justice.
For this government and co -operatives have taken initiative by
establishing the markets. They are as follows:
Cooperative Institutes for sale and purchase of goods
Co-operative institutions ar e set up to give suitable price for
the agricultural commodity. A three -tier system of institutions is
established for this. At village level primary sale and purchase
institutions are setup. At taluka or zilla level central co -operative
sale and purchase institute and at state level state co -operative
sale and purchase institute has been established.
Government sale and purchase mechanism
If the prices of commodities start decreasing after the
agricultural season this system or institution compulsory pu rchases
the agricultural goods, gives a supportive price for the goods. This
institution works on the basis of integrated system of sale and
purchase.
Agricultural Marketing Committees
With the help of specific rules and regulations the state
government establishes these agricultural marketing committees
and they are to work abiding the laws. They provide a suitable price
for the commodity and agricultural distribution system to the
farmers. These markets are established to eliminate the middlemen
in the marketing of agricultural produce.
Check your progress
Q-Name the different types of markets.munotes.in

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1177.2.2 Importance of Agricultural Marketing System
Development of agricultural sector depends on the
distribution of agricultural marketing syste m. If the marketing and
distribution system is well organized and efficient then only the
agricultural production can be increased. Importance of agricultural
marketing and distribution can be briefed in the following manner.
1) Inspiration for producti on-
Inspiration or motivation is always necessary while taking
production in any sector. This is very much helpful in case of
agricultural production. An appropriate market is essential to sell
the surplus agricultural goods. If the marketing system is e fficient, it
helps in inspiring the farmers to increase the agricultural production
to a large extent.
2) Fair price for the crops -
If the market system is effective the farmers will receive a
fair price for their agricultural product. If the farmers g et a fair price
for his crops they will be inspired to increase the production. Due to
increase in the agricultural production industrial development will
gain momentum and indirectly will be helping in the economic
development of the country.
3) Stabili ty in the prices -
Marketing system is very important for the prices of
agricultural commodity to be stable. Relevant market system,
storage facilities help the farmers to wait till proper time comes for
the product to be sold and stability in the prices is created.
4) High standard of living -
Agricultural produce gets good price due to a well organized
and well mobilized market which gives a hike in the income of
farmers and his standard of living is raised. Even the good demand
for industrial goods from the farmers, helps to create a favorable
environmen t for the industrial development.
5) A universal price level -
About 70% of the daily consumption goods are related to
agriculture. A change in the price of agricultural produce brings
about a change in the overall price level. A suitable market keep
the prices stable and it results stability in the universal prices also.
7.2.3 Defects or demerits or drawbacks in the distribution
system
Market system of the rural economy is defective. As a result
the organized traders cheat the farmer. The defects a re as follows:munotes.in

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1181) Unorganized Farmers -
Farmers are illiterate and financially poor as a result they are
cheated by the organized trading community. There were no efforts
taken to organize the farmers.
2) Unnecessary Chain Of Middlemen -
There is a chain of unwanted middlemen and traders in the
agricultural market who cheat the farmers. As a result the farmers
get very low price for their agricultural produce or they go in loss
and the middlemen take the profit.
3) Unauthorized Weights and Scale Measures -
Middlemen cheat the farmers by using unauthorized weights
and scale measures in the agricultural markets. These middlemen
cheat the farmers by using unfair means of weighing, like they use
bigger weights while purchasing and smaller weights wh ile selling
the agricultural goods.
4) Inadequate Storage Facilities -
A good storage facility helps the durability of the agricultural
produce. Due to lack of storage facility the farmer cannot store his
agricultural produce for longer period. He has to sell it at a price
determined by the trader or at a very low rate and thus incur loss.
The storage facilities and capacity to store the goods is poor in our
country, so the farmers have to sell the goods during the season as
there is no other alternativ e.
5) Ignorance about the Market Condition -
Agricultural prices are unstable now and then and the
farmers are ignorant about the changes in the market prices. As a
result farmer cannot take right decision regarding the production to
be taken and selli ng it at the right time and right place.
6) Lack of Standardization and Grading -
To get a fair price for the agricultural products grading them
is essential. Standardization of all the agricultural products is not
decided. Still those goods which are s tandardized, that are to be
sold in the market there are no grading facilities in all the markets
before the goods are sold. As a result the farmers don’t get good
price for their agricultural produce.
7) Deceitful Practices in the market -
Farmers do n ot get full payment as per the decided price for
the agricultural goods. After selling the goods they have to money
in the form of taxes like octroi, brokerage or commission, porter’s
charges, charity, etc. keeping in view the profit of traders the
middlem en betray the farmers by cheating them. Brokers charge
heavy brokerage charges from the farmers. For all the abovemunotes.in

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119reasons and other malpractices the farmers get entangled in
indebtedness.
As the agricultural distribution system is having many
demerits a nd loopholes farmers get cheated and indebtedness is
on the increase. Demerits in the agricultural distribution have to be
eradicated so that the farmers get proper prices for their agricultural
produce to be sold in the market.
Check your Progress :
Q-Give the demerits in the agricultural distribution system.
7.2.4 Measures to remove the drawbacks in the agricultural
distribution system -
1) Establishment of Controlled Markets -
Royal Commission in the year 1930 recommended the
establish ment of controlled markets in India to eradicate the
interference of middlemen in the agricultural markets and to give a
proper price for the agricultural produce to the farmers. Due to
controlled markets the farmers could not be cheated and they
started g etting suitable price for their produce. The Market
committees control the controlled markets.
2) Standardization of Weights and Measures -
As the weights are not standardized farmers are cheated.
The remedial measure implemented on this was the introd uction of
Indian Standard Institute (ISI) method. As a result the traders
compulsory had to use standardized weights and measures.
3) Expansion of storage facilities -
Farmers don’t have proper storage facility so he has to sell
the agricultural produc e at the rate at which he gets. So the co -
operative institutions, state warehousing commission, central
warehousing commission developed storage and warehousing
facilities for the farmers. If the farmers are able to store their goods
they can sell the good sw h e nt h e yw a n t .
4) Standardization and Grading -
Indian Standard Institution was established in 1947 to
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120product is given the seal of AGMARK is given after standardizing
and grading the ag ricultural produce.
5) Organized Farmers Community -
As the farmer class is not united the middlemen take the
benefit of them. The farmers are to be united to increase their
trading capacity and to fight against injustice. For this the farmer
organizati ons have to be established in large numbers.
6) Elimination of the Middlemen -
The chain of middlemen has to be eliminated for the benefit
of farmers and the consumers. For this government institutions are
to be established. Due to controlled markets th e chain of
middlemen has come to an end to some extent. But still in the rural
areas the chain of middlemen still dominates the agricultural
market.
7) The Market information to the farmers -
The middlemen take advantage of the farmer’s ignorance
relate d to the market information. The farmers are to be updated of
the market condition through various means of communication
media and technology. By this the farmers can take appropriate
decision for his produce.
8) Development of distribution system on C o-operative basis -
Co-operative institutions are to be developed on large scale
to give appropriate price for the agricultural produce. They provide
storage facilities and give loans on the agricultural produce.
Check your progress
Q-Suggest remedies to reduce and eliminate the demerits or
drawbacks of agricultural distribution system.
7.3 FINANCE
Rural economy mainly depends on agriculture, allied and
subsidiary occupations, cottage industries, village industries.
Marginal and small far mers are large in number in agriculture. Due
to poverty they cannot invest in agriculture. As a result
indebtedness is seen on large scale. It is said that Indian farmer ismunotes.in

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121born in indebtedness, lives in indebtedness and dies in
indebtedness.
Even though there are many institutions providing loan to the
farmers, they find it difficult to cope up with the paperwork of the
financial institutions. So the rural population depends on the private
money -lenders as they provide the loan on demand.
7.3.1 Type so fL o a n s
Types of loans depend on the requirement of the farmers
maybe for agricultural purpose or for personal use.
1) Productive loan -Productive loan is used to invest for
agricultural purpose and its development.
2) Unproductive Loan -Indian farmers are poor, traditional. They
take loans to celebrate festivals, functions and also for livelihood
and consumption purpose.
3) Loans based on Period of Time -Farmers take loan for
different period of time. Accordingly they are of different types.
A] Short term loan -Loan taken for daily expenses for agricultural
purpose are said to be short -term loans. For ex -Cultivation,
fertilizers, seeds, harvesting, operation of beating the grains, etc.
The duration of this loan is 15 to 8 months.
B] Med ium term loan -Farmers require loan for building bunds,
leveling of land, to purchase milch animals and many also for many
other reasons. The farmer cannot repay this loan in short period.
So he is given medium term loan. Tis loan is repaid progressively.
The duration of this term is 1 -5 years.
C] Long term loan -Theamount taken is big as it is used to repay
the previous loan, to purchase new land, to purchase new tractor or
to make permanent changes in the agricultural land. The duration
of this loan 20 -25 years.
Check your progress
Q-Write a note on the types of loans.munotes.in

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12213.3.2 Reasons for Rural Indebtedness
As agricultural operations are seasonal poverty,
unemployment is seen occasionally which results in rural
indebtedness. The main reasons behind this are
1) Land ownership pattern -
Due to inheritance and new land reforms the land was
divided amongst the family members due to which it was divided,
subdivided and fragmented into very small sections. The result was
there was less production from the small portion of land. To fulfill
the daily needs of consumption of the family the farmer had to take
loan from the moneylender. This loan went on increasing resulting
in indebtedness.
2) Uncertain Production -
Due to irregular and uncertain rain there is uncertainty in the
agricultural production. The uncertainty in the production forces the
farmers to take loan for their expenses.
3) Loan Inheritance -
Farmers not only inherit the property from their previous
generation but also the indebtedn ess of his parents. As the amount
of loan taken is used for their day to day needs the amount of loan
goes on increasing and is never repaid resulting in the
indebtedness generation to generation. So it is said that Indian
farmer is born in indebtedness, l ives in indebtedness and dies in
indebtedness.
4) Deception in the agricultural distribution system -
Agricultural Distribution system is defective. The traders and
middlemen cheat the farmers while grading, weighing, etc. As a
result the farmers don’t get fair price for their products. Again
resulting in taking of loans for their needs.
5) Cultural an dS o c i a lf u n c t i o n s -
Rural people spend more money on cultural and social
functions than their income to maintain their status in the society. If
necessary they take loans to celebrate some functions in the family.
This again converts into indebtedness, a st h el o a ni sn o tr e p a i d .
6) Judicial Fights -
In rural areas disputes take place on the matters like
distribution of water, borders of the farms, roads. These disputes
are taken to the court. This court matters are fought by selling the
property or by taking loan from the money -lenders. As these fight
are prolonged in the court the farmers go on taking loan in hope to
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1237) Joint Families -
In rural areas size of the family is big i.e. joint families. The
head of the family has the responsibility to feed and fulfill the needs
of the family. The agricultural production taken is less, compared to
the family size. So he resorts to take loan to fulfill the needs of his
family.
Effects of rural indebtedne ss-
Due to ignorance and Illiteracy of the rural people, they are
cheated by the traders, moneylenders etc. Practice of allied and
subsidiary activities are inadequate or nil here. As a result the
farmer has no alternative than to opt for taking loan. Fo llowing
demerits or effects of indebtedness can be seen.
1) Growth in landless laborers -Majority of the farmers are small
and marginal farmers. In the time of crisis when taking loan he has
to mortgage his livelihood source of income. As the loan is n ot
repaid in time the amount goes on increasing and if not repaid he
has to sell his land or asset. In this way a small or marginal farmer
becomes landless agricultural laborer.
2) Rise in poverty -Indebtedness leads to negligence towards
agriculture, r esulting in the low productivity of agricultural products.
As the money -lender also provides loan, so the farmer purchases
goods at a low rate. This only adds to poverty. Poverty and
indebtedness induces the farmer for suicide attempts.
3) Decrease in t he agricultural production -Toreduce the loan
amount, farmer tries to repay it from the income he gets after
selling the produce.As a result no money left to invest for
agricultural operations. A decrease in the agricultural production is
there due to u navailability of necessary equipments.
4) Increase in the addiction of bad habits -Indebtedness leads to
tension and negligence towards agriculture and work. The loan is
not repaid even after many efforts. So he resorts to addiction of
alcohol and many o ther bad habits.
Check your progress
Q-Explain the reasons and effects of indebtedness.munotes.in

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1247.3.3 Institutions providing Finance in the rural areas
To fulfill his necessities a farmer adopts different methods to
obtain finance. These are called the sources of finance for
agriculture.
Sources of agricultural finance
Non-institutional sources Institutional sources
Money lenders a )Government
Traders /m i d d l e m e n b)Co-operative banks
Relatives c)Commercial banks
d)Regional rural banks
e)NABARD
1) Non -Institutional Sources of Finance
a) Money Lenders -Heis an important source of finance as he
provides money to the farmers anytime, anywhere without asking
for any papers. As a result rural people depend more on him for
finance than any other source. After 1959 as the network of
banking spread taking lo an from the moneylenders decreased to
some extent. But still he is an important source of finance to the
rural people.
b) Traders / middlemen -Theyprovide money to the farmers for
different works in the agricultural season in advance. Farmers after
getting the agricultural production sell it to the traders/middlemen
and repay the loan or money taken in advance.
c) Relatives -To solve the temporary problems farmers take loan
from their relatives either on interest or without interest. The
amount take n from them is very small. As soon as he gets his
production he repays the money taken.
2) Institutional sources of Finance -After independence many
financial institutions were set up to provide finance to the farmers
for agricultural purpose.
They a re as follows -
a) Government -The government provides fund for agricultural
development. During natural crisis financial assistance is provided.
Subsidies are given or the repayment of loan is also waved away to
stop the farmer from committing suicide. G overnment also provides
loan for land and other agricultural purpose.
b) Co -operative Societies -Recognizing the need for agricultural
finance in the rural sector co -operative act was passed in 1904. So
the co -operative societies were established to pro vide finance for
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1251) Co -operative Societies Providing Short Term and Medium
Term Loan -
a) Primary Agricultural Co -operative Societies -
This is the basic institution providing finance. They are
established at the village level for the development of the farmer’s
economic development. Short -term loan is given to purchase
fertilizers, seeds and medium term loan is given for land leveling, to
purchase agricultural implements, etc. The main aim is to put habit
of saving to the members, and to provide loan on easy instalment
and also its recovery. These institutions are managed and
controlled by democracy method.
b) District Central Co -operative Banks -
This bank is financially stable and well organized and leads
for the overall development of the area selected for cooperation.
The most important work done by this bank is to provide loan to the
co-operative banks provided by the state co -operative bank and
also to recover the loan within the given specific period. This bank
is recognized as the central machinery for providing finance to the
primary co -operative institution.
c) State Co -operative Bank -
This bank works as the bankers bank for the district central
co-operative bank. This bank provides finance for to the co -
operative institutions by taking loan from the monetary market. It
also provides loan to the rural industries and industrial co -operative
institutions in the rural areas. It supervises, controls and brings
systematization in the working of the di strict central co -operative
banks.
2) Land Development banks providing Long Term loans -
Long -term loans are required for agricultural purpose. Land
development bank gives long term loans for repayment of old
loans, purchasing of new land, agricultural implements and such
other works. This bank has two -tier system. District Land
development at district level and state Land Development bank at
state level. These banks give loan to the farmer for a period of 20
years on mortgage of land. While giving loan they legally check the
documents of land, the reason for loan, and the capacity to repay
the loan and then only they sanction the loan.
C] Commercial Banks -
Commercial Banks were established for commercial
purpose. In the initial stage they financed business and industries.
Due to risk and uncertainty in agricultural sector these banks didn’t
provide finance for agriculture. After nationalization of banks in
1969 commercial banks started providing finance to the agricultural
sector. Even the weaker sections were provided finance. Rural
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126Village adoption scheme, integrated interest rate are the imp ortant
programs implemented by the commercial Banks.
D] Regional Rural Banks -
These banks were established to provide finance to the rural
landless laborers, craftsmen, financial needs of the small and
marginal farmers. These banks provide personal loans and also
loans to their institutions. They also provide loans to the co -
operat ive institutes, businessmen in the production industry.
E) National Banks for Agriculture and Rural Development -
(NABARD)
NABARD is the highest ranking bank providing finance to the
agricultural sector. This bank was established on 12 July 1982.
Reser ve bank has given both the funds to this bank for agricultural
development. It also provides indirect finance to the agricultural
sector like other banks.
Check your progress
Q-Give the different sources of finance for agricultural sector.
7.4 SUMMARY
While studying market and finance information of different
types of markets in the rural areas is given. Markets established by
the government and co -operative institutions and its importance is
given. Agricultural distribution system is defe ctive, as a result
agricultural produce does not get proper price. A review is taken so
that defects in the agricultural distribution system can be eliminated
and remedies be suggested for the same. While studying rural
financial institutions information r egarding the different types of
loans, rural indebtedness, its reasons and effects is given. Non -
institutional sources like moneylenders, traders and middlemen,
relatives etc. are studied. Institutional sources like government, co -
operative banks, commerci al banks, regional rural banks;
NABARD, etc. are studied here.munotes.in

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1277.5 SELF STUDY
1.Give the defects in the agricultural marketing system and
suggest remedies.
2.Give detailed information of the different types of agricultural
markets.
3.Write in detail th e institutional sources of finance.
4.Write short notes on: -
Agricultural distribution
Money -lenders
Rural Indebtedness
References:
Rudra Dutt & K. P. M. Sundaram, S Chand & Company, 2000 -
“Indian Economy”.
Mishra S.K & Puri V. K, Himalaya Publishing House, New Delhi,
2006 -“Developmental Issues of Indian Economics”.
www.slideshare.comHYPERLINK "http://www.slideshare.com/"
Bhargava Harsh & Kumar Deepak, Published by The ICFAI
University press ,H y d e r a b a d ,2 0 0 6 -“Rural Transformation -Socio
Economic Issues”.
munotes.in

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128Unit -8
KEY ISSUES OF RURAL DEVELOPMENT
POVERTY, LITERACY AND HEALTH
Dr. Anjali D. Patil
Unit Structure :
8.0 Objectives
8.1 Introduction
8.2 Concep t of rural infrastructure
8.3 Importance of rural infrastructure in rural development
8.4 Education (Total Literacy Program)
8.4.1 Sarva Shiksha Abhiyan
8.4.2 Education to the deprived section of the society
8.4.3 Alternative education schemes:
8.4.4 Problems in the primary education in the rural areas
8.4.5 Remedies for the compulsory primary education
8.5 Health (National Rural Health Campaign)
8.6 Summary
8.7 Self-Study
8.0 OBJECTIVES
Can study the rural basic infrastructures
Can lea rn about the total literacy program
Help in understanding the importance of national rural health
campaign
8.1 INTRODUCTION
Any countries prosperity depends upon the countries
agriculture, its market and development in the industrial sector.
Electri city, supply of finance and transport facility is essential for
agricultural production. Machines, tools and implements, skilled
workers, energy, market place and transport facility is important. All
the above said facilities are called as the infrastructu res of the
economy. The infrastructures are very important from the point of
view of development of the country. India is land of villages. So
developing India means developing the Indian villages in reality.
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129Transport and communication connect the villages to the market
areas. Energy and irrigation are necessary for agriculture and
village industries. Scientific development, information technology
mobilizes the development of agricultural industr ies. Development
of human resources depends on the education and health facilities
provided. Investment in rural infrastructure is the need of today.
Planning commission realized the need of the hour and therefore
from the first five years plan it was deci ded to make an increase in
the investments in rural infrastructures. Increase in the investment
in countries infrastructure is seen as per the necessity.
8.2 CONCEPT OF RURAL INFRASTRUCTURE
Rural infrastructure plays an important part in the economic
and social development of the country. Basic infrastructure is the
capital of the society. It is difficult to define social and economic
infrastructures because of their flexibility. Paul, Rosenten, Reigner,
and Narks have defined social and economic as ‘I nvestment done
in the work which is socially beneficial’. Those social investments
that are indirectly beneficial to the production processes are termed
as basic infrastructure. Rural infrastructure directly does not
produce goods but create a favorable co ndition for raising the
economic level. To achieve the goal of rural development, to gain
momentum in the development process rural infrastructure plays an
important part. Social and cultural development also depends on
the infrastructure. After adopting the concept of welfare state
government is making a large investment in the rural infrastructure.
By adopting the policies of privatization, liberalization and
globalization since 1990 private sector is investing on large scale
on the infrastructure. Due t o which there was a drastic change in
the infrastructural facilities. Following factors are included in the
rural infrastructure: -
1)Public Amenities -
Electricity for the agricultural and industrial sector.
Transport and communication –indivisible f actor of the
development process.
Supply of drinking water through taps for people’s health.
Disposal of filth and waste matter for health and cleanliness.
2)Public construction -
Construction of roads for the transport of agricultural
produce, raw material and finished products from the
industrial sector.
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1303) Public transport service -
Transport is one of the important factors of the basic
infrastructure. It includes road transport , railway transport,
waterways and airways. Transport service is very essential for
transporting the agricultural produce to the market. Economic and
social development takes place because of transport service.
Check your progress
Q–Explain the conc ept of rural infrastructure.
8.3 IMPORTANCE OF RURAL INFRASTRUCTURE IN
RURAL DEVELOPMENT
Social and economic infrastructure is very important in the
rural development. Development is faster due to the infrastructural
facilities. Rural infrast ructure plays an important in the development
of human resources. It can be described in the following ways.
To reduce the rural backwardness
To gain momentum for economic development infrastructural
facilities are very much essential. Constructions of roads make way
for the transport facility, so that the agricultural produce can be
taken to the market. Due to transport and communication facilities
the farmer can communicate with the market area. Therefore he
can take decisions related to the production and sales of his
agricultural produce. Spread of education and cultural give and take
is possible due to the infrastructural facilities. Increase in the
agricultural production can be done through modernization of
agriculture.
Standard of living of the rural areas increases and rural
backwardness decreases.
Development of human resources
Development of human resources depends on the important
factors like education, health and pure drinking water. Skilled man
power is available by educating the mass. Poverty can be
minimized if there is growth in the industrial sector. Growth in the
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131and strong due to the provision of health facilities and pure drinking
water.
Increase in the momentum of production factors
If the rural infrastructure is developed it can be connected to
the various modes of transport and communication media. This
helps in the give and take of ideas, market and product information
at faster rate. Information regarding the employment, trade, capital,
etc is available.
For the development of the agricultural sector
Modernization of agriculture depends on the availability of
the infrastructural amenities. Irrigation facilities help to increase the
agricultural production. Electrical pumps can be used if electricity is
there. More land can be brought under cultivation with the use of
modern irrigation facilities like drip irrigation and sprinkler irrigation.
Extension of transport and communication facilities and the market
areas, help in gaining proper market value for the agricultural
produce. Development in the agricultural sector is possible because
of all these facilities.
Momentum to the rural industrial sector
Infrastructural facilities are essential for the develo pment of
industries. If facilities like water, electricity, transport,
communication, markets, financial institutions, etc. are provided in
the rural areas, industrialist would be eager to start industries in the
rural areas. Industries based on processing of agricultural produce
will gain momentum.
People will get employment locally and problem of
unemployment will be overcome.
Decrease in the poverty
Economic development is due to rural infrastructure. There
is an increase in the agricultural produc tion and industrialization
gains momentum. The employment is generated in the agricultural
and non -agricultural sector. As a result there is an increase in the
income and poverty is minimized.
Social and Cultural progress
Transport and communication fac ilities are developed due to
infrastructure. Exchange of ideas and culture is possible. We get
information of different methods of production from other various
areas, their culture and traditions. New ideas are generated and are
helpful in the development process.
Infrastructure is one of the social capitals. Infrastructural
investment leads rural development. But the fact is there is no
desired progress in the rural infrastructure. As a result themunotes.in

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132development of the rural areas is very slow and there a re obstacles
in the path in the development process. The big farmers took
benefit of the big and medium irrigation projects. Small and
marginal farmers did not get the benefit due to the negligence of
the small irrigation projects.
Check your progress
Q-Explain the importance of rural infrastructure in rural
development.
8.4 EDUCATION
Education is an important principle of change. Education
inculcates good values and behavioral changes in a human being.
Nations development depends on educ ation. If the human
resources is literate, intelligent and inculcating good values in them
an a t i o ni sd e v e l o p e dv e r yw e l l .I n1 9 7 1t h e r ew a s3 9 . 4 9 %m a l e
and 18.47% literacy in India. As per 2001 census 34.62% of the
population in India was illiterate. The literacy percentage in the
states of Bihar, Jharkhand, Madhya Pradesh, Orissa, Rajasthan is
47 to 64 %. The Adivasi districts Nandurbar and Gadchiroli in
Maharashtra have low literacy rate of 56.6% and 60.52%
respectively, while the female literacy is 46. 53% and 50.64%. Due
to poverty and indebtedness 30 -50% children from the backward
class are not able to complete even their primary education.
Education before independence
As the educationist and social reformers knew the
importance of education they felt the need to educate people in the
pre independence period. Like –
1.Presentation of Mahatma Jyotirao Phule in front of Hunter
commission 1882.
2.Compulsory education for all in Baroda province by Sayajirao
Gaikwad in 1906.
3.A resolution put forward by Gopal Krishna Gokhale regarding
compulsory education in the legislative council in 1910 -11.
4.Compulsory education scheme by Rajarshi Shahu Maharaj in
1917 -18.
5.The national education conference held under the chairmanship
of Mahatma Gand hi-The Wardha Education Scheme.munotes.in

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133Post independence education system -
Indian government understood the seriousness of educating
people only after independence and started to work on it.
Ignorance, illiteracy, superstitions are the obstacles in the
devel opment process. Taking into consideration the obstacles
different schemes and programs like literacy program, social
education, adult education, and compulsory primary education were
started. Accordingly education was made compulsory for girls and
boys in the age group of 6 -14 by the act 45 of the Indian
constitution. Even though primary education was made compulsory
only half of the students came to school or were enrolled. Due to
the dropout of students only half of the students would reach up to
standard four. To eradicate total illiteracy in India from 5th May
1988 a program was launched to attain 100% literacy. Facilities for
primary, secondary and higher secondary education, higher
education and technical education were provided by the
government in a ll the states.
Boarding schools were started in the remote and distant hilly
adivasi regions for educating their students. The students were
provided with writing material, food, books and other facilities. Part
time classes were started for the student s who left school in the
middle of the term. Teachers are provided with incentives and an
increase in the salary.
Blackboard operation provided the school with two rooms
and a gallery, minimum two teachers out of which one would be a
female teacher, bl ack board, maps etc. were provided. Adult
education centers were started to spread literacy in distant places.
Indira Gandhi Open University at national level and Yashwantrao
Chavan Open University in Maharashtra were started to give
facilities to the adul ts who would like to take higher education.
Types ofE d u c a t i o n
1) Formal Education
Education given in schools and colleges, using books, the
course of study, examinations, etc. is called Formal Education.
Formal education is designed in a specific mann er. Factors like
study course, school building, time -table, teaching and learning
material, etc. are very essential. The students are evaluated after
completing the study course in the given period of time.
2) Non -Formal Education
Going out of the way of formal education the adults and
children from the specific age group are selected and given
education in a different way and different methods are used to
educate. Such a type of education is called Non -Formal Education.
Rural people are not able to pa rticipate in the education process
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134critical financial condition. As a result they remain illiterate. With the
aim to literate them to educate them Non -Formal Education
program was implement ed so that they can at least learn to read
and write. This program was implement through the following
means:
Adult Education or Education scheme -
This program was meant to educate the people who could
not attend school in their childhood.
Corresponde nce Education -
This program was meant for the people who were not able to
attend school or college on regular basis.
Part-Time Education:
This program was meant for the students of age group
between 6 -14 who had to stop their education for some or the other
reason.
8.4.1 Sarva Shiksha Abhiyan
Sarva Shiksha Abhiyan is a well -planned program that
develops the human capabilities and gives opportunities to the
children in the society under 6 -14 age group to get quality
education to all boys and girls. T his campaign of education to all is
a scheme promoted by central government and primary education
has to be made universal.
This responsibility has been entrusted to the Maharashtra
primary education department an autonomous institution Mumbai.
This prog ram was started on 18 January 2002 to fulfill the
objectives as per the central government in Maharashtra under by
the Sarva Shiksha Abhiyan.
Objectives of Sarva Shiksha Abhiyan
Pre –primary and primary education is the base of higher
education. To ma ke India the most powerful nation till 2020 it is
essential to raise the standard of primary education. Accepting this
a program ‘Sarva Shiksha Abhiyan’ was prepared to implement in
the 10 th five -year plan.
Everyone should be given five years of primar y education
before year 2000.
Everyone should be given eight years of primary/secondary
education before the year 2010.
To eliminate the deficiency at all levels, social and sex
discrimination by the year 2000 and by providing an equal
opportunity to get primary education to all till 2010. 4) To retain themunotes.in

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135girl and boy students in school till the year 2010 and provide quality
education to them.
Scope of Sarva Shiksha Abhiyan
There are two sides of Sarva Shiksha Abhiyan.
1)Sarva Shiksha Abhiyan is a no u t l i n eo ft h eu n i o no fd i f f e r e n t
programs under primary education program that was meant to
be universal.
2)To arrange financial assistance to achieve the objective of
universal primary education. More importance was given to the
role played by the t eachers in intermediary and the decision -
making process and attention was paid to develop their
capacity.
Main aim of Sarva Shiksha Abhiyan
1)Mutual cooperation between the parents and teachers and
Panchayat Raj institutions.
2)Education for the gi rls from the scheduled caste and tribes and
primary education for each girl child.
Syllabus and educational planning school be prepared
focusing on the child.
Voluntary organizations, Village (Gram) Education
Committee and savings group of women should participate in the
management of school.
Funds are available from the central and state government
for the Sarva Shiksha Abhiyan. This scheme has funds for
providing nutritious food for children in the school itself, allowance
for being present in the s chool, books and uniform free of cost, 4%
material cost given for the school, Ahilyabai Holkar free travel
scheme, studying and teaching material distribution, Savitribai
adoption scheme,free health check -up, scholarships for the
physically handicapped chi ldren by the social welfare department
and many other such schemes.
According to the 1986 National Education Policy and as per
the decision taken in 1990 –1991 mobilization to the
universalization of education in Maharashtra, survey of the
necessary edu cational facilities in the village, taking into
consideration the geographical necessities with the help of people’s
participation Village (Gram) Education Committee was established.munotes.in

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136Check your Progress :
Q-Give the scope and objectives of the Sa rva Shiksha Abhiyan.
8.4.2 Education to the deprived section of the society
100% registration of students, their attendance and standard
education are the essential things necessary for the
universalization of primary education. Government has laid
emphasis on the education of students (boys and girls) from
different sectors and communities, children from the deprived
sections of the society to bring them along with the main stream
and to maintain their attendance in the school by giving standar d
education to the children. Many children face difficulties and
problem while taking education. They are from some specific
section deprived of education.
Deprived section of people in the society
Children from Nomadic tribes and scheduled tribes.
Physically and mentally challenged children.
Children of the migrants.
Children from the economically weaker section of the
society.
Poverty in the rural areas, unconcern about education due to
illiteracy, rites and rituals, customs and traditions, reg ional
languages not included in the education system, migration are the
various factors responsible for the drop -outs in the school.
Government has made many good programs and schemes for the
education of children from the deprived sections.
Different government schemes for the deprived section in the
society
Boarding schools for the adivasi children.
Allowance to the girl child for attending the school.
Study material to be prepared by using local language
spoken.
Educational allowance for the adi vasi children.
Provision of study material and uniform.
Giving scholarship and waiving of the school exam fees.
Savitribai Phule children adoption scheme.munotes.in

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137Free health checkup and free services.
Scholarship to the physically disabled children by the So cial
Welfare Department.
Integrated educational scheme or the disabled children.
Check your progress
Q-Give information or write short on the education of the deprived
section of the society.
8.4.3 Alternative education schemes
1) Mahatm a Phule Education Guarantee Scheme -
This scheme is prepared for the children between age group
6-14 who have left school while studying in standards Ist to IVth.
The classes are conducted by the local social workers.
2) Boarding Schools -
Boarding sch ools can be started where there is no school in
the village or in the vicinity of 1 km area. If there are 10 girls and 15
boys students who want to study these schools can be started. The
gram -panchayat provides place and the required material for the
scho ol.
3) Temporary seasonal school for the children of brick factory
workers -
The classes in this school are conducted for the students of
age between 6 -14 of standard Ist to IVth who have missed their
school for a longer period in summer vacation for 45 days. The
students are provided stay and food free of cost.
4) Integrated Handicapped Education Scheme -
In this scheme there is a handicapped unit of minimum 8
students who are physically handicapped and mentally challenged.
The students are provided wi th the necessary handicapped
students instruments, uniform and school study material free of
cost.
5) Temporary school for the sugarcane cutting workers and
other seasonal workers -
This temporary school was started on 20 th October 1996 in
the vicinity of the sugarcane factories for the children of sugarcanemunotes.in

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138cutting workers and other seasonal workers. The sugar factories
bear the cost of food for the students staying in these schools.
6) Motivation classes -
These class es are conducted for the students who do not
have the skill and capacity necessary for education so that they
should not develop inferiority complex in them. School is the main
center of personality development. While achieving the educational
objectives t hrough the study course mode of doing things is also
taught. It also helps in preserving the values of equality, dignity of
labor, national integrity. Excellent education and development of
human capabilities are the important factors considered by the
Sarva Shiksha Abhiyan.
Check your Progress :
Q-Give the various Alternative Education Schemes.
8.4.4 Problems in the primary education in the rural areas
Primary education is an important stage in the education
process. In -order to eradicate ign orance and illiteracy in the rural
areas and to spread literacy primary education is made compulsory
and free through Sarva Shiksha Abhiyan. But due the
backwardness of the society, illiteracy, poverty in the society it was
unsuccessful. Following are the reasons for the problems in the
primary education.
1)School dropouts :
Poverty is one of the main reasons for the primary school
dropouts. The number of families below the poverty line is more in
the rural areas. Due to poverty children from these famil ies are
prefered to go to work rather than going to school. Such families
are forced to migrate in search of jobs on large scale. As a result
number of school dropouts is more in such families. Early
marriages or child marriages is also one of the obstacle si np r i m a r y
education. Elderly girl child has the responsibility to look after her
younger brothers and sisters.as a result female child school
dropout is seen more in rural areas.
2) Lack of educational environment
For the educational development of a child a healthy
environment is essential. But due to the unavailability of the factors
like lack of proper place and space, school buildings not in propermunotes.in

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139condition, lack of good sitting arrangement, unhygienic toilet and
bathroom, lack of pure drinking w ater facility, playing ground,
computers, library educational environment cannot be created.
3) Absentee of the children in schools
As the rural society believes in traditions and culture lots of
festivals and functions are celebrated in the rural areas .A sar e s u l t
due the functions like festivals, family and social get -together,
marriages, agricultural season children don’t go to school. Adivasi
children remain absent in school as they go to collect flowers of
moha tree. Ignorance among the parents and adults is the main
reason behind the children being absent in school. As the children
are irregular in school their educational graph is not satisfactory.
4) Extra activities given to the teachers other than the school -
work :
The primary school teachers are given some extra work
other than their school work. For ex: -election duty, census work,
making list of the families below the poverty line, to search the no of
migrated families, smart -card work, survey of the sea shore etc. the
teachers are supposed to this extra work during the school hours
only. As a result teaching is affected and the progress of the
students in school is not satisfactory and the studies are neglected.
5) Indolent Inactive school education committees
According to the new educ ation policy village school
committees were formed in the rural areas. They play an important
role in the school development. But in reality their contribution is
very less, irregular meetings, all the members don’t attend the
meeting, members are not elec ted as per the given criteria. As a
result the objective to form the village education committee is not
achieved.
6) Lack of education material
For the overall development of the children educational
facilities like television, computers are essential in school. But they
are not provided. Even though if they are provided due indifferent
attitude, ignorance, repairing of the instruments, load shedding and
other problems are faced by the school.
7) Drawbacks in the school nutrition scheme
To provide n utritious food to the school children this scheme
was started under the Sarva Shiksha Abhiyan. But to the hike in
prices of goods and commodities and low allowance there are
problems in providing the nutritious food to the children.munotes.in

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1408)Appointment of teachers
Appointment of teachers in the primary school is only for three
years as a school attendant. This results in the diversion of good
talented teachers in other fields for their future prospects.
9) Other Problems
There are many loopholes in the implementation of the
boarding schools, education guarantee scheme. Quality of the
uniforms is not up to the mark due to insufficient funds.
Responsibility of maintenance of the classrooms is given to the
teachers. Many such other problems are observed in the primary
education.
Check your progress
Q-Write about the problems in primary education.
8.4.5 Remedies for the compulsory primary education:
Competent village education committees:
The village education committees have to become
compet ent and active for the universalization of primary education.
For this members of the committee are to be elected as per the
rules and regulation laid, all the members should compulsory attend
the meeting and make way for the development of the school.
To stop the extra curricular work given to the teachers:
It is very essential that the burden of extra work given to the
teachers should be stopped. If this work is given to the educated
unemployed people and if some remuneration given then the
unemploymen t problem will reduce to some extent and teachers
can totally concentrate on their schoolwork and teaching.
To create a healthy environment for studying and provision
of basic amenities:
For the overall development of the students amenities like
school building, playground, cleans toilet and bathrooms, pure
drinking water, computers and other study material if provided an
educational environment will be created and progress in the studies
of students can be seen.munotes.in

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141Training to the teachers by the exp erts:
It is very important that the teachers have to improvise them
by attending the training sessions organized by the experts so that
they can be updated with the new technology and advanced
knowledge to make themselves competent with the changing
educa tional field and world. So regular training sessions are to be
arranged for the teachers.
Concept of teacher attendant should be totally stopped:
Appointment of teachers should be made permanent while
joining rather than teacher attendant if the status of education is to
be raised and if intelligent and good quality teachers are to remain
in the educational field.
Check your Progress :
Q-Suggest remedies to reduce the problems in the primary
education.
8.5 Health (National Rural Health Mi ssion)
TheNational Rural Health Mission (NRHM) is an initiative
undertaken by the government HYPERLINK
"http://en.wikipedia.org/wiki/Government_of_India" HYPERLINK
"http://en.wikipedia.org/wiki/Government_of_India"ofHYPERLINK
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K "http://en.wikipedia.org/wiki/Government_of_India" to address the
health needs of underserved rural areas. Founded in April 2005 by
IndianHYPERLINK
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LINK "http://en.wikipedia.org/wiki/Prime_Minister_of_India"
HYPERLINK
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Manmo hanHYPERLINK
"http://en.wikipedia.org/wiki/Manmohan_Singh" HYPERLINKmunotes.in

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142"http://en.wikipedia.org/wiki/Manmohan_Singh"Singh ,the NRHM
was initially tasked with addressing the health needs of 18 states
that had been identified as having weak public health in dicators.
National Rural Health Mission (2005 -2012), was formally
launched in Uttaranchal on 27th of October 2005 by Hon'ble
Cabinet Health Minister Dr. Anbumani Ramadoss. Its focus is to
strengthen primary health care through grass root level public
health interventions based on community ownership.
Under the NRHM, the Empowered Action Group (EAG)
States as well as North Eastern States, Jammu and Kashmir and
Himachal Pradesh have been given special focus. The thrust of the
mission is on establishing a fully functional, community owned,
decentralized health delivery system with inter -sectoral
convergence at all levels, to ensure simultaneous action on a wide
range of determinants of health such as water, sanitation,
education, nutrition, social and gend er equality. Institutional
integration within the fragmented health sector was expected to
provide a focus on outcomes, measured against Indian Public
Health Standards for all health facilities.
As per the 12th Plan document of the Planning Commission,
the flagship programme of NRHM will be strengthened under the
umbrella of National Health Mission. The focus on covering rural
areas and rural population will continue along with up scaling of
NRHM to include non -communicable diseases and expanding
health c overage to urban areas. Accordingly, the Union Cabinet, in
May 2013, has approved the launch of National Urban Health
Mission (NUHM) as a sub -mission of an overarching National
Health Mission (NHM), with National Rural Health Mission (NRHM)
being the other sub-mission of the National Health Mission.
It constituted a spectrum of systemic deficiencies in the
health system. These included lack of holistic approach, absence of
linkages with collateral health determinants, gross shortage of
infrastructure and human resources, lack of community ownership
and accountability, non -integration of vertical disease control
programs, non -responsiveness and lack of financial resources.
The NRHM employed five main approaches while
addressing these issues –communitizat ion, flexible financing,
improved management through capacity building, monitoring
progress against standards, and innovations in human resource
management.
Development of village health plan through Village Health
and Sanitation Committee (VHSC) and its integration into the
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143planning, inter -sectoral convergence, implementation and
monitoring, was instituted as the fulcrum of decentralization.
Convergence of all programs is being ensured at village and facility
level. Effective integration of health concerns with other health
determinants like sanitation and hygiene, nutrition and safe drinking
water through district health plan is being made. Panchayat Raj
Institutions (PRIs), self -help gr oups, and health, nutrition and
sanitation committees have been activated to seek local
accountability in the delivery of programs.
In the process of communitization, the role of Non -
governmental Organizations (NGOs) is critical for the success of
NRHM. Their partnership is being utilized under the disease control
programs, reproductive and child health, routine immunization and
special immunization activities (SIAs). To this effect, a highly
imaginative Janani Suraksha Yojana (JSY) is already making us e
of partnerships of various NGOs. Efforts are being made to involve
NGOs at all levels of the health delivery system and more
infrastructures in training of Accredited Social Health Activists
(ASHAs).
Initiatives
Some of the major initiatives under National Health Mission
(NHM) are as follows:
Accredited Social Health Activists
Community Health volunteers called Accredited Social
Health Activists (ASHAs) have been engaged under the mission for
establishing a link between the community and the healt h system.
ASHA is the first port of call for any health related demands of
deprived sections of the population, especially women and children,
who find it difficult to access health services in rural areas. ASHA
Programme is expanding across States and has particularly been
successful in bringing people back to Public Health System and has
increased the utilization of outpatient services, diagnostic facilities,
institutional deliveries and inpatient care.
Rogi Kalyan Samiti (Patient Welfare Committee) / H ospital
Management Society
The Rogi Kalyan Samiti (Patient Welfare Committee) /
Hospital Management Society is a management structure that acts
as a group of trustees for the hospitals to manage the affairs of the
hospital. Financial assistance is provid ed to these Committees
through untied fund to undertake activities for patient welfare.
Untied Grants to Sub -Centres
Untied Grants to Sub -Centers have been used to fund grass -
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1441)Improved effica cy of ANMs in the field that can now undertake
better antenatal care and other health care services.
2)Village Health Sanitation and Nutrition Committees (VHSNC)
have used untied grants to increase their involvement in their
local communities to addres s the needs of poor households and
children.
Health care contractors
NRHM has provided health care contractors to underserved
areas, and has been involved in training to expand the skill set of
doctors at strategically located facilities identified by t he states.
Similarly, due importance is given to capacity building of nursing
staff and auxiliary workers such as ANMs. NHM also supports co -
location of AYUSH services in Health facilities such as PHCs,
CHCs and District Hospitals.
Janani Suraksha Yojana (JSY)
JSY aims to reduce maternal mortality among pregnant
women by encouraging them to deliver in government health
facilities. Under the scheme cash assistance is provided to eligible
pregnant women for giving birth in a government health facility.
Large scale demand side financing under the Janani Suraksha
Yojana (JSY) has brought poor households to public sector health
facilities on a scale never witnessed before.
National Mobile Medical Units (NMMUs)
Many un -served areas have been covered through National
Mobile Medical Units (NMMUs).
National Ambulance Services
Free ambulance services are provided in every nook and
corner of the country connected with a toll free number and reaches
within 30 minutes of the call.
Janani Shishu Suraksha Karyakr am (JSSK)
As part of recent initiatives and further moving in the
direction of universal healthcare, Janani Shishu Suraksha
Karyakram (JSSK) was introduced to provide free to and fro
transport, free drugs, free diagnostic, free blood, free diet to
pregnan t women who come for delivery in public health institutions
and sick infants up to one year.
Rashtriya Bal Swasthya Karyakram (RBSK)
A Child Health Screening and Early Intervention Services
has been launched in February 2013 to screen diseases specific to
childhood, developmental delays, disabilities, birth defects and
deficiencies. The initiative will cover about 27 crore children
between 0 –18 years of age and also provide free treatmentmunotes.in

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145including surgery for health problems diagnosed under this
initiat ive.
Mother and Child Health Wings (MCH Wings)
With a focus to reduce maternal and child mortality,
dedicated Mother and Child Health Wings with 100/50/30 bed
capacity have been sanctioned in high case load district hospitals
and CHCs which would create additional beds for mothers and
children.
Free Drugs and Free Diagnostic Service
An e wi n i t i a t i v ei sl a u n c h e du n d e rt h eN a t i o n a lH e a l t h
Mission to provide Free Drugs Service and Free Diagnostic Service
with a motive to lower the out of pocket expenditu re on health.
District Hospital and Knowledge Center (DHKC)
As a new initiative District Hospitals are being strengthened
to provide Multi -specialty healthcare including dialysis care,
intensive cardiac care, cancer treatment, mental illness, emergency
medical and trauma care etc. These hospitals would act as the
knowledge support for clinical care in facilities below it through a
tele-medicine center located in the district headquarters and also
developed as centers for training of paramedics and nurse s.
National Iron+ Initiative
The National Iron+ Initiative is an attempt to look at Iron
Deficiency Anaemia in which beneficiaries will receive iron and folic
acid supplementation irrespective of their Iron/Hb status. This
initiative will bring together existing programmes (IFA
supplementation for: pregnant and lactating women and; children in
the age group of 6 –60 months) and introduce new age groups.
What the future holds for NRHM should be seen through the
lens of similar challenges ahead. Complexit ies in attaining inter -
sectoral convergence; multidimensional strategy at district, block
and village levels; cross -linkages with the issues of poverty,
illiteracy, and social inertia; governance issues, including ongoing
empowerment of PRIs; vibrant VHSC including safe water
management; impediments in release of funds; and assured
availability of incremental outlays for mission period are going to
test the endurance of NRHM. The inherent riddles in public -private
partnership will continue to examine the pr o-people character of
NRHM for a very long period. There is also a need to explore
linkages with the ongoing programs like MNREGA, added with the
deployment of rich repository of human resource of elderly men and
women, who could be used for community mobi lization. Social audit
for community action is the call of the day to ensure that dreams of
Mahatma Gandhi for Swaraj come true.munotes.in

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146Check your Progress :
Q-Give the objectives and policies of the National Rural Health
Mission.
Q-Give the important factors of National Rural Health Mission.
8.6 SUMMARY
Any countries prosperity depends up on the countries
agriculture, its market and development in the industrial sector. The
infrastructures are very important from the point of view of
development of the country. Transport and communication connect
the villages to the market areas. Energy and irrigation are
necessary for agriculture and village industries.
Scientific development, information technology mobilizes the
development of agricultural industries. Development of human
resources depends on the education and health facilities provided.
Rural infrastructure directly does not produce goods but create a
favorable condition for raising the economic level.
8.7 SELF -STUDY
1.Give the information of rural infrastructure.
2.Give the importance of rural infrastructure.
3.Give the objectives an d policies of Sarva Shiksha Abhiyan.
4.Give information of the National Rural Health Mission.
5.Short notes
Alternative Education
Education for the deprived sections of the society
Primary Health Centre
AYUSH services and Janani Suraksha Yojana.munotes.in

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147Refer ences:
www.yourarticle.com
Mr M. L. Maurya, Shree Publishers and Distributors, 2008 -”Rural
Urban India -Imbalance in Growth”.
Rudra Dutt & K.P. M.Sundaram, S Chand & Company, 2000 -
“Indian Economics”.
www.gov.nic.comHYPERLINK "http://www.gov.nic.com/"
Bhargava Harsh & Kumar Deepak, published by The ICFAI
University press, 2006 -“Rural Transformation -Socio Economic
Issues”.
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148Unit -9
KEY ISSUES OF RURAL COMMUNITIES
(POVERTY, INDEBTEDNESS AND
AGRARIAN CRISIS & FARMERS SUICIDE)
Dr. Anjali D. Patil
Unit Structure :
9.0 Objectives
9.1 Introduction
9.2 Causes of rural indebtedness
9.3 Consequences of rural indebtedness
9.4 Measures to eradicate rural indebtedness
9.5 Globalization, Liberalization & rural society
9.6 Farmers suicide
9.7 Summary
9.7 Self-study
9.0 OBJECTIVES
Can study the causes of rural indebtedness
Can study the consequences of rural indebtedness
Can suggest measures to eradicate rural indebtedness
To study the effects of globalization and liberalization
To study the causes of farmers suicide
9.1 INTRODUCTION:
Rural indebtedness has been the evergreen companion of
the Indian peasants. Accor ding to a well -known saying, the Indian
peasant is born in debt, lives in debt and dies in debt. The
prevalence of poverty among agricultural labouring households is
underlined by the prevalence of the rural indebtedness. With the
increase in the level of poverty, the level of debt increases.
The burden of debt is passed on from generation to
generation. The number of those in the grip of this vicious problem
is even now very large, despite vigorous attempts to solve it. Rural
indebtedness has eaten into the very vitals of our rural socialmunotes.in

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149structure. Hence it has drawn the attention of sociologists,
economists, planners, bureaucrats and others since long time past.
While borrowing money the borrower does not pay attention to his
repaying capacity and for him even a little debt becomes a trap out
of which he cannot come out. Loans from the money -lender support
the farmer as the hangman’s rope supports the hanged. Rural
borrowing and rural debt signify two different things. There is
nothing wrong in borrowin g especially when the funds are required
for agricultural operations. But indebtedness arises when the
income of the farmer is not sufficient to repay the debt incurred or
when he spends his income for unproductive purposes and does
not save for the purpos eo fp a y i n go f fh i sd e b t .W h e nt h eb o r r o w e r
fails to repay the loan in time and the loan goes on accumulating,
he becomes indebted.
9.2 CAUSES OF RURAL INDEBTEDNESS
The factors accounting for rural indebtedness are many and
varied. They are as follows:
1)Poverty of the farmers
The basic cause of the rural indebtedness in India is the
extreme poverty of the farmers. The farmers being poor have to
borrow for various purposes. Sometimes, the crops fail because of
the failure of monsoons, or because of fl oods etc. They have to
purchase seeds, implements, cattle etc. and since they have no
past savings to draw upon, they are forced to borrow. Just as
poverty forces him to borrow, it is his poverty again which forces
him to have so little for paying off his debt.
2)Passion for land
The farmers in the Indian context have a tremendous
passion for land. They are keen to make improvements on land.
They do it mostly through borrowing.
3)Ancestral debt
The most important cause of the existing rural indebtedn ess
is the ancestral debt. Many agriculturists start their career with a
heavy burden of ancestral debt and drag the loan for the whole of
their lives, taking it to be a religious and social obligation. This
increases the debt burdens on the inheritors, ev ery time the debt is
thus passed on. The Royal Commission on Agriculture has aptly
described this situation, in its observation that the farmer “is born in
debt, lives in debt and dies in debt.”
4)Ease of taking loan
Institutional agencies have fixed h ours and stipulate that
some formalities should be observed before the loans aremunotes.in

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150sanctioned and then paid. On the other hand, a money lender has
been easily approachable even at odd hours. This encourages
borrowing.
5)Litigation
Litigation, civil or cri minal, is another cause of rural
indebtedness. Agriculturists of standing are generally involved in
various kinds of disputes such as intra -family disputes, inter -family
disputes, and disputes over boundary lines, theft of crops, and
division of ancestral lands etc. which often force them to go to
courts of law. Such prolonged litigations involve heavy expenditure
and to meet these expenses, farmers take loans which further
aggravates the burden of rural indebtedness.
6)Small sized holdings
Approximatel y 72.6 per cent of the operational holdings in
India are less than 5 acres in size. When the holdings are small,
modernisation of agriculture becomes impossible. The cultivation
ceases to be economical even in the best of years and the yield
from land beco mes insufficient for the maintenance of the farmer
and his family.
On account of this reason the farmer incurs debt.
7)Illiteracy and ignorance
The illiteracy and ignorance of the peasants stand in the way
of improving the economic conditions. They a re not conscious
about the utility of small family norms. In view of the large size of
the family, they are compelled to borrow money for fulfilling the
basic necessities of life.
8)Extravagant expenditure
Being bound to customs and tradition, the rura lites consider
the expenses on the occasion for marriage, birth, death, and caste
dinners on auspicious occasions and on some religious observance
as unavoidable. Being poor, they have no reserve to fall back upon.
This makes them to borrow.
They borrow at least for two reasons. In the first place, if
they do not spend on these occasions, their image in the public
eyes will be tarnished. Secondly, they have ambition to excel others
in pomp and grandeur.
9)Malpractices of the money -lenders
The private money -lenders are known to have adopted
various malpractices.
a)They have been charging exorbitant rates of interest varying
between 40 to 60 per cent per annum.munotes.in

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151b)They have also been found keeping false accounts.
c)They are more interested in for cing the borrowers to part with
their land by encouraging the farmers to borrow from them and
get their lands mortgaged to them. (d) They have been
purchasing the crops of the farmers at very low price when the
latter approach them for selling their crops in order to repay their
debts.
e)When the farmers’ debt has accumulated to a sufficient amount,
they take away the land of the borrowers. Like a fly in the
cobweb, which can rarely escape, similarly, the farmer once
caught by the money -lender can rarely come out of his clutches.
10)High rates of interest
The high rates of interest also compel the cultivators to
borrow. The rates vary from state to state but due to the poor
economic condition of the peasants, the interest accumulates every
year. Quite often it is extremely difficult to clear up even interest
charges alone. The Bombay Banking Committee rightly observes,
“It is not that the agriculturist” repays too little, he often repays too
much. It is the high rate of interest and the malpractices fol lowed by
the money -lenders that tend to perpetuate his indebtedness.”
11)Pulls of high standard of living
Sometimes high standard of living constitutes the cause of
indebtedness. Of late, the benefits of urbanization have reached
the doorsteps of the r uralites. Poor peasants have fallen a prey to
the consumeristic culture. They are attracted by the temptations of
the amenities of city life. They are induced to buy them even if there
is no great need for them.
12)Excessive burden of land revenue and r ent
During the British rule, the land revenue was fixed high. So
the farmers were not able to pay in time. Hence, they were forced
to borrow. Even in the Post -Independent India excessive land
revenue with its rigid procedure of collection is squarely resp onsible
for aggravating the problem of rural indebtedness.
The rent is tasking for the small and marginal farmers. The
dues being fixed, they are bound to pay even when production
suffers during conditions of flood and drought. Therefore, the
farmers are forced to take loans to make these payments.
Consequently the burden of indebtedness increases.
13)Addiction to drinking
Drinking leads to rural indebtedness in two ways. In the first
place, it gives rise to a number of quarrels and crimes resulting in
litigation. Litigation as all of us know entails unnecessary
expenditure. Secondly, drinking is itself an expensive habit and a
good share of the peasant’s income is spent for drinking.munotes.in

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15214)Inflation
Inflation unaccompanied by corresponding increase in t he
income of the ruralites compels them to borrow to meet their basic
needs.
15)Inadequate infrastructural facilities and institutional
arrangements
Inadequate infrastructural facilities stand in the way of
improving the economic condition of the farme r. Due to inadequate
marketing facilities, he has no other alternative but to sell away the
produce immediately after harvest at the unreasonable prices. The
heavy indebtedness of the farmer also makes it difficult for him to
store the produce for sale on favourable terms at a later date.
Check your progress
Q-What are the different factors accounting for the causes of rural
indebtedness?
9.3 CONSEQUENCES OF RURAL INDEBTEDNESS
Rural indebtedness is dysfunctional for the rural society in
more ways than one. Some of its evil consequences are as follows:
1.From the economic point of view, increasing rural indebtedness
leads to growing pauperisation of the small and marginal farmers.
They mortgage their landed property to the money -lenders an d
ultimately lose it to the latter.
In this way, they join the ranks of the landless labourers. The
small farmer gets a low price while selling his produce and pays
high prices for buying inputs. Hence rural indebtedness is both the
cause and effect of t he growing poverty of the Indian farmers.
2.Increasing rural indebtedness has also undesirable social
consequences. In the first place, it creates a class of landless
labourers and tenants in the place of independent farmers.
Secondly, the heavily indebted farmers are forced to pledge
their ow n person and become bonded slaves to the landlords and
moneylenders. Sometimes their women fall prey to money -lenders’
caprice and vice. This has led to moral degradation of rural society.munotes.in

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153Thirdly, in many parts of the country, the small peasants who
have lost their land to the money -lenders have revolted against the
latter in a violent manner. In such states the high caste money -
lenders have exploited the innocent and illiterate advises and have
deprived them of their meager land ownership.
Quite natura lly this has been the direct cause of Naxalite
movements in these areas. Dr. Thomas aptly observes, “A society
steeped in debt is necessarily a social volcano. Discontent between
classes is bound to arise and shouldering discontent is always
dangerous.”
3.Rural indebtedness has far -reaching political implications for the
rural society. The money -lenders become unscrupulous politicians
and exploit the heavily indebted farmers when elections to village
Panchayats, co -operative societies, state assembly and L ok Sabha
are held. Democracy becomes a mockery.
4.From the psychological angle we observe that the borrowers are
always a frustrated lot. They always remain in the grip of worry and
tension.
5.Deterioration of agriculture
As a result of indebtednes s, the condition of agriculture also
deteriorates. Two reasons may be attributed to this state of affairs.
In the first place, the heavily indebted farmers because of paucity of
funds are not in a position to modernize agriculture. This would
cripple their capacity to increase their income level. Secondly, most
of the farmers have to work on the moneylender’s land as servants.
Obviously they lack interest in work.
6.Low standard of health
The farmers burdened with a heavy debt grow weaker
because they are beset with the problem of repaying it. They work
hard to repay the loan which sometimes tell upon their health. They
also cannot afford to have medical facilities for themselves and for
their children. They cannot have any nourishing diet. All these lead
to the lowering of their health standards.
Check your progress
Q-What are the consequences of rural indebtedness?munotes.in

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1549.4 MEASURES FOR ERADICATING INDEBTE DNESS
The Government has undertaken several measures since
long to put an end to rural indebtedness. They are as follows: -
1) (a) Removing the need for borrowing:
i)Steps have been taken to reduce the effective burden of
land revenue and to make its payment convenient through
greater elasticity in its administration and collection.
ii)Adequate irrigation facilities have been provided to the
farmers.
iii) Inputs have been made available at cheap rates.
iv)Agro -based industries have been promo ted in the rural
areas.
v) Improvement has been effected in the sphere of means of
communication and transportation. Better marketing facilities
have been made available to the peasants.
(b) Protecting the assets of the agriculturists from passing into the
hands of moneylenders:
For this purpose various Acts have been passed in the past
e.g. the Land Alienation Acts, the Encumbered the Estates Relief
Act of 1876 etc.
(c)Regulation of the activities of moneylenders:
For this purpose various legislat ive measures have been
enacted. They are as follows:
i)The Deccan Agriculture Act, 1879:
Under this Act the courts were allowed to go behind the contract
of debt and to modify it in favour of the borrower.
ii)The Various Loans Act, 1918:
This Act tried to improve the legal position of the borrower.
iii)The Regulation of Accounts Act, 1930:
It aimed at protecting the debtor from manipulated accounts by
prescribing forms of accounts and insisting on the debtor being
supplied with these regu larly.
(d)The Punjab Relief of Indebtedness Act, 1934:
It drew a distinction between secured and unsecured loans
for purposes of rate of interests.
e) Various Acts like the Punjab Registration of Moneylenders Act,
1938 provided for the registration a nd licensing of money lenders.
f) The Acts like the Punjab Restoration of Mortgaged Lands Act and
the Punjab Debtor’s Protection Act provided for restoration ofmunotes.in

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155mortgaged lands on payment of nominal compensation and
exempted ancestral property from attac hments as also standing
crops.
Nationalisation of Commercial Banks:
The commercial banks were nationalised in 1969. Since then
special efforts have been made to increase the involvement of
public sector banks in the development of agriculture and other
associated activities in the rural areas. At present, the commercial
banks are mandated to earmark 18% of their total annual lending to
agricultural sector as part of priority sector lending.
They have also been associated with the rural finance
through some other important schemes such as the Lead Bank
Scheme, Village Adoption Scheme, Service Area Plan, Intensive
Centre Scheme, Agricultural Finance Corporation etc.
Regional Rural Banks:
Regional Rural Banks have been established since 1975 as
a new so urce of finance in the rural areas. The main objective of
these banks is to provide credit and other facilities to the small and
marginal farmers, agricultural labourers, artisans and small
entrepreneurs. These banks are sponsored by the nationalised
comme rcial banks. So far as the area of operation is concerned,
such a bank covers one or more districts of a state.
At present, there are 196 Regional Rural Banks in the
country and these have about 14500 branches.
Twenty -Point Economic Programme:
Under t he 20 -point programme launched in July, 1975, the
government had declared a moratorium on the recovery of debt by
money -lenders from farmers, landless labourers and rural artisans.
Liquidation of rural indebtedness and abolition of bonded labour
were two dynamic aspects of the old 20 -point economic
programme.
Co-operative Credit Institutions:
Co-operative finance is the best and the cheapest source of
rural credit. It is because loans are advanced for productive
activities and also at very low rates of interest as compared to
those charged by the money -lenders and various other institutions.
The Primary Agricultural Co -operative Credit Societies generally
advance short -term and medium -term loans to the farmers, the
Primary Land Development Banks cater t ot h el o n g -term financial
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156Report of the Sivaram Committee:
In its report submitted in April, 1976 the Sivaram Committee
outlined the following proposals pertaining to rural indebtedness.
(a)Consumption loans for marriag es, births and deaths, religious
expenses, medical expenses, education etc. should be provided
by the government corporations and nationalised banks to small
farmers, landless labourers and artisans.
(b)Banks and Cooperatives should provide similar loans to
marginal farmers.
(c)Schemes should be devised to enable these classes of people
to return these loans.
7. National Bank for Agriculture and Rural Development:
NABARD was set up by the Governme nt of India on 12th
July, 1982 with an authorised capital of Rs. 500 crore and a paid up
capital of Rs. 100 crore. It plays the role of a catalyst of rural
resurgence through injection of adequate finance for approved
development projects. It is an apex in stitution entrusted with the
responsibility of bringing about rural prosperity.
The number of schemes sanctioned as well as the financial
assistance extended by the Bank for these schemes has been
constantly increasing. NABARD has been paying special att ention
in extending credit facilities in less developed banked areas. Of
late, the bank has been taking special steps for augmenting credit
flow to the North East Region.
The role of NABARD in providing funds for the promotion of
self-help groups, especi ally the ‘Rural Women’s Development and
Empowerment Scheme’ is, indeed, commendable.
Recently, the bank prepared a model scheme for the
commercial banks to issue ‘Kisan Credit Cards’ to the farmers. The
purpose of the KCC scheme is to facilitate short te rm credit to the
farmers. The scheme has gained popularity and its implementation
has been taken up by 27 commercial banks, 187 Regional Rural
Banks and 334 Central Cooperative Banks.
Since its inception till the end of March 2004, more than 41
million K CCs have been issued and total loans sanctioned
amounted to Rs. 97,710 crores. KCC holders are also provided
personal accident insurance cover of Rs. 5,000 for death and Rs.
25,000 for disability.
Suggestions for removing Rural Indebtedness:
Several su ggestions have been made for eradicating rural
indebtedness. Of them, major ones are the following:munotes.in

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1571.Measures should be devised for cancelling old debts.
2.Measures should be adopted for limiting fresh borrowing to the
minimum necessary and to the productive type.
3.The government should make arrangements for giving loans to
the farmers at low rates of interest.
4.In order to make loans available to the villagers, the formal
procedure for the grant of loans in the co -operative societies
and b anks should be made as simple as possible.
5.The laws preventing money -lender to take possession of
farmer’s land should be strictly put to practice.
6.Efforts should be made to desist ruralites from undertaking
unproductive and wasteful expenditure. Hence they ought to be
educated about the harmful consequences of unproductive
debts.
7.In order to reduce the dependence of the ruralites on local
money -lenders, the network of institutional credit structure
comprising cooperatives, commercial banks a nd regional rural
banks should be rapidly expanded throughout the country to
cater to the credit needs of the small farmers and artisans.
8.There should be a check on the practice of private money
lending. The account register of the moneylenders should be
checked to find out how far they have increased their landed
property during the period under review. Besides, only the
registered and licence holders should be allowed to advance
loans.
In fine, the problem of rural indebtedness is linked with the
larger issue of rural poverty. Poverty alleviation measures have to
be taken up on a war footing to augment the income of the ruralites.
Mobilisation of local, social and economic resources, an equitable
distribution of benefits of new agricultural strate gy and
establishment of a good number of co -operatives and commercial
banks will go a long way in mitigating the magnitude of rural
indebtedness from the rural social matrix.
Check your progress
Q-What measures are taken to eradicate rural indebtedness?munotes.in

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1589.5 GLOBALIZATION, LIBERALIZATION AND RURAL
SOCIETY
The policy of liberalisation that India has been following
since the late 1980s have had a very significant impact on
agriculture and rural society. The policy entails participation in the
World Trade Organisation (WTO), which aims to bring about a
more free international trading system and requires the opening up
of Indian markets to imports. After decades of state support and
protected markets, Indian farmers have been exposed to
competiti on from the global market. For instance, we have all seen
imported fruits and other food items on the shelves of our local
stores –items that were not available a few years ago because of
import barriers. Recently, India has also decided to import wheat, a
controversial decision that reverses the earlier policy of self -
reliance in foodgrains. And bring back bitter memories of
dependence on American food grains in the early years after
Independence.
These are indicators of the process of globalisation of
agriculture, or the incorporation of agriculture into the larger global
market –a process that has had direct effects on farmers and rural
society. For instance, in some regions such as Punjab and
Karnataka, farmers enter into contracts with multinationa l
companies (such as PepsiCo) to grow certain crops (such as
tomatoes and potatoes), which the companies then buy from them
for processing or export. In such ‘contract farming’ systems, the
company identifies the crop to be grown, provides the seeds and
other inputs, as well as the know -how and often also the working
capital. In return, the farmer is assured of a market because the
company guarantees that it will purchase the produce at a
predetermined fixed price. Contract farming is very common now in
the production of specialised items such as cut flowers, fruits such
as grapes, figs and pomegranates, cotton, and oilseeds. While
contract farming appears to provide financial security to farmers, it
can also lead to greater insecurity as farmers become dep endent
on these companies for their livelihoods. Contract farming of
export -oriented products such as flowers and gherkins also means
that agricultural land is diverted away from food grain production.
Contract farming has sociological significance in that it disengages
many people from the production process and makes their own
indigenous knowledge of agriculture irrelevant. In addition, contract
farming caters primarily to the production of elite items, and
because it usually requires high doses of fertil isers and pesticides,
it is often not ecologically sustainable.
Another, and more widespread aspect of the globalisation of
agriculture is the entry of multinationals into this sector as sellers ofmunotes.in

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159agricultural inputs such as seeds, pesticides, and fert ilisers. Over
the last decade or so, the government has scaled down its
agricultural development programmes, and ‘agricultural extension’
agents have been replaced in the villages by agents of seed,
fertiliser, and pesticide companies. These agents are oft en the sole
source of information for farmers about new seeds or cultivation
practices, and of course they have an interest in selling their
products. This has led to the increased dependence of farmers on
expensive fertilisers and pesticides, which has re duced their profits,
put many farmers into debt, and also created an ecological crisis in
rural areas.
Check your Progress :
Q-Write short notes on:
a) Globalization
b) Liberalization
9.6 FARMERS’ SUICIDES
The spate of farmers’ suicides that has been occurring in the
different parts of the country since 1997 -98 can be linked to the
‘agrarian distress’ caused by structural changes in agriculture and
changes in economic and agricultural policies. These include: the
changed pattern of landholdings; changing cropping patterns
especially due to the shift to cash crops; liberalisation policies that
have exposed Indian agriculture to the forces of globalisation;
heavy dependence on high -cost inputs; the withdrawal of the state
from agri cultural extension activities to be replaced by multinational
seed and fertiliser companies; decline in state support for
agriculture; and individualisation of agricultural operations.
According to official statistics, there have been 8,900 suicides bymunotes.in

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160farmers between 2001 and 2006 in Andhra Pradesh, Karnataka,
Kerala and Maharashtra (Suri 2006:1523).
While farmers in India for centuries have periodically faced
distress due to drought, crop failures, or debt, the phenomenon of
farmers’ suicides appears to be new. Sociologists have attempted
to explain this phenomenon by looking at the structural and social
changes that have been occurring in agriculture and agrarian
society. Such suicides have become ‘matrix events’, that is, a range
of factors coalesce together to form an event. Many of the farmers
who have committed sui cides were marginal farmers who were
attempting to increase their productivity, primarily by practising
green revolution methods. However, undertaking such production
meant facing several risks: the cost of production has increased
tremendously due to a de crease in agricultural subsidies, the
markets are not stable, and many farmers borrow heavily in order
to invest in expensive inputs and improve their production. The loss
of either the crop (due to spread of disease or pests, excessive
rainfall, or drough t), and in some cases the lack of an adequate
support or market price, means that farmers are unable to bear the
debt burden or sustain their families. Such distress is compounded
by the changing culture in rural areas in which increased incomes
are requir ed for marriages, dowries, and to sustain new activities
and expenses such as education and medical care (Vasavi 1999a).
The pattern of farmer’s suicide point to the significant crises that the
rural areas are experiencing. Agriculture for many is becomi ng
untenable, and state support for agriculture has declined
substantially. In addition, agricultural issues are no longer key
public issues, and lack of mobilization means that agriculturists are
unable to form powerful pressure groups that can influence policy
making in their favor.
Check your progress
Q-Write in short about farmers suicide.
9.7 SUMMARY
Rural indebtedness has been the evergreen companion of
the Indian peasants. According to a well -known saying, the Indian
peasant is born in debt, lives in debt and dies in debt. The burden
of debt is passed on from generation to generation. Ruralmunotes.in

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161indebtedness has eaten into the very vitals of our rural social
structure. Rural indebtedness is dysfunctional for the rural society
in more ways than one. The farmers burdened with a heavy debt
grow weaker because they are beset with the problem of repaying
it. the problem of rural indebtedness is linked with the larger issue
of rural poverty. Poverty alleviation measures have to be taken up
on a war footing to augment the income of the ruralites.
Mobilisation of local, social and economic resources, an equitable
distribution of benefits of new agricultural strategy and
establishment of a good number of co -operatives and commercial
banks will go a long way in mitigating the magnitude of rural
indebtedness from the rural social matrix.
9.8 SELF -STUDY
1) Write short note on rural indebtedness.
2) What are the causes of rural indebtedness?
3) What are the consequences of rural indebtedness?
4)Give measures for eradicating indebtedness.
5) Give suggestions to remove rural indebtedness.
6) Write short notes on: Globalization and liberalization
7) Write in short -Farmers Suicide
References:
Agarwal A.N -Indian Economy, Problems of Deve lopment and
Planning
Mamoria C.B & Tripathy B.B -Agricultural Problem, Kitab Mahal,
1991
Thaplia (Ed) Hyderabad NIRD 2002 -Challenge of Liberalisation to
Indian Agriculture
Bhargava Harsh & Kumar Deepak (2006) “Rural Transformation -
Socio Economic Issues ”, published by The ICFAI University press.
Maunibal Singh 2002 -Population and Poverty in Developing World
A.Vinayak Reddy & G. Bhaskar New Century Publications, New
Delhi, 2005 -“Rural Transformation in India -The impact of
Globalisation”.
www.researchgate.net
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Modified Pattern of Question Paper for Semester End Assessment implemented
from 20 20-2021 For Rural Development courses at F.Y.B.A.
Duration of examination = 3 hours Total Marks = 100 (per semester)

All 5 questions carry 20 marks and are compulsory.
There will be internal choice in each Question.

Q1.Attempt any two questions ( module 1 )
20 marks

A
B
C

Q2.Attempt any two questions ( module 2)
20 marks

A
B
C

Q3.Attempt any two questions ( module 3 )
20 marks

A
B
C

Q4.Attempt any two questions ( module 4)
20 marks

A
B
C

Q5.Attempt any two questions ( module 1 ,2,3,4 . One question from each module )
20 marks

A
B
C
D

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