class 12 th economics

1. RURAL
DEVELOPMENT
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

2. Introduction
• Mahatma Gandhi once said that the real
progress of India did not mean simple the
growth and expansion of Industrial Urban
Centres but mainly the development of the
villages
• More than two-third of India’s population
depends on agriculture
• One third of rural India still lives in abject
poverty.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

3. Meaning
• Rural development covers agriculture
development as well as all those aspects
which improve the living conditions of people
in the rural areas. Rural development is a
comprehensive process which targets
betterment in all aspects of rural areas. Thus
development agriculture implies improvement
of rural areas.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

4. Challenges
• Development of human resources
• Land reforms
• Development of infrastructure
• Alleviation of poverty
• Development of the productive resources of
each locality
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

5. Rural credit needs
According to Time
• Short term credit : loan ranges from 6 months to
15 months. To buy seeds , tools , manure,
fertilizers, etc.,
• Medium term credit : loan ranges between 15
months to 5 years. To buy machinery, equipment
digging wills, constructing cattle sheds etc.,
• Long term credit : loan ranges between 5 to 20
years . To buy tractors , land, heavy machines and
equipment etc.,
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

6. According to purpose
• Productive purpose : this credit is required to
enhance agriculture production
• Unproductive purpose : this credit is required
to meet social obligations.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

7. Sources of rural credit
Non – institutional sources
• Moneylenders
• Traders and commission agents
• Landlords
• Relatives
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

8. Institutional sources
• Cooperative credit societies
These contributes nearly 30% of the rural
credit.
• Land development banks
The crdit is granted against the mortgage
Long term credit
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

9. • Commercial bank credit
• Regional rural bank
To open the branches in those areas where
there no banking facilities available
To provide credit facilities to small and
marginal farmers.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

10. • Self help groups
• National bank for agricultural and rural
development (NABARD)
Apex agency
To promote the strength of credit institutions in
credit delivery system
To provide assistance in the non-farm sectors also
To control and evaluate the projects financed by it
It coordinates the functioning of different financial
institution involved in advancing rural credit.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

11. Shyama Prasad Mukherji Rurban
Mission (SPMERM)
• February 21, 2016
• Bridging the rural-urban divide
• Stimulating local economic development with
emphasis on reduction of poverty and
unemployment in rural areas
• Spreading development in the region
• Attracting investment in rural areas.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

12. Agricultural marketing system
• Agriculture marketing is a process that
involves the assembling, storage processing,
transportation, packaging, grading and
distribution of different agriculture
commodities across the country .
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

13. Measures initiated by government
• Regulation of markets
• Provision of physical infrastructure
• Cooperative marketing
• Minimum support price
• Grading and quality control
• Dissemination of information.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

14. Problem of agricultural marketing in
India
• Predominance of private traders
• Distress sale
• Lack of regulated markets
• Lack of infrastructural facilities
• Long chain of intermediaries
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

15. Suggestions to improve the
agricultural marketing system
• Government intervention should increase
• More of rural periodic markets should be developed
• There should be increased provision of more
infrastructural facilities
• Abolition of intermediaries
• Provision of standardizing and grading
• Dissemination of market related information through
electronic media
• New cooperative marketing societies
• Easy credit to the farmers
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

16. Alternative Marketing channels
• It has been realised that if farmers directly
well their produce to consumers, it increases
their income .
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

17. Diversification in agriculture
• Aspect of diversification
Diversification of crop production ( change in
cropping pattern)
Diversification of productive activities ( shift of
workforce from agriculture to other allied
activities and non-agricultural sector like live
stock , poultry, fisheries etc.,)
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

18. Tamil Nadu Women in Agriculture
(TANWA)
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

19. Non farm areas of employment
• Animal husbandry
• it provides stability in income, food security ,
transportation, fuel ad nutrition for the family
• 70 million small and marginal farmers provides
alternate livelihood
• Poultry account for the largest share with 58% followed
by others
• Diary sector over last 3 decades has been quite
impressive
• Operation flood – milk produced according to different
grading
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

20. • Fisheries
Fish production from inland sources
contributes about 64 % to the total fish
production and the balance 36% comes from
the marine sector
Today total fish production accounts for 0.8%
of total GDP.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

21. • Horticulture
It contribute nearly one third of the value of
agriculture output and 6% of GDP of India.
2014-15 production of fruits and vegetables
was around 87 million tons and 170 million
tons respectively
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

22. • Options Other alternative livelihood –
increasing role of information technology
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

23. Organic farming
• Needed
 It is an economic farming technology. It can be picked
up by small and marginal farmers
 There is urgent requirement to optimally utile our
scarce resources so that they can be preserved for
future generations too to promote sustainable
development.
 Conventional farming methods use chemical based
fertilitsers and topic pesticides which deplete the soil
and devastate natural eco system, so there is urgent
need of an eco-friendly technology like organic
farming.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

24. Benefits of organic farming
• Economical
• Generation of income
• Healthy food
• Environment friendly
• Generates employment
• Maintains natural eco-system
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

25. Challenges before organic farming
• Needs popularization
• Inadequate infrastructure and marketing
• Less output
• Shorter shelf life
• Limited choice in production
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

26. Thank you
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

27. Bibliography
• https://youtu.be/RCuTVSjdrrg
• https://youtu.be/DcY0KEdBA2A
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,