Chapter 5: Rural Development || Economics Class 11th || NCERT CBSE || NOTES IN ENGLISH || 2024-25

  


Chapter: Rural Development 

Introduction

  • Rural Development refers to actions aimed at improving the living standards of people in rural areas, where the majority of India's population lives.

  • Agriculture is the primary source of livelihood, but rural areas also suffer from poverty, lack of infrastructure, and low literacy rates.

  • Mahatma Gandhi emphasized that true progress in India can only happen with the development of villages.


What is Rural Development?

  • Rural development is a comprehensive term that involves improving the human resources (education, health, and skills), infrastructure (roads, electricity, irrigation), and productive resources (land reforms and agricultural resources).

  • It focuses on:

    • Literacy and Education: Especially female literacy and skill development.

    • Health and Sanitation: Providing access to healthcare and improving public health.

    • Infrastructure: Improving access to credit, transport, agricultural research, and information.

    • Poverty Alleviation: Special measures to improve living standards and provide employment opportunities for weaker sections of society.


Credit and Marketing in Rural Areas

  • Credit: Farmers need credit to purchase seeds, fertilizers, and machinery since there is a gap between planting crops and selling them.

    • In the past, rural farmers were often exploited by moneylenders charging high interest rates.

    • Social Banking: Since 1969, a multi-agency approach has been introduced, including NABARD (National Bank for Agriculture and Rural Development), cooperative banks, and self-help groups (SHGs), to provide affordable credit.

    • Self-Help Groups (SHGs): Small savings groups that provide credit to their members, which has empowered women and improved access to micro-credit.

  • Marketing: Farmers face challenges such as low prices and lack of storage. Marketing systems must be improved for better distribution of agricultural products.

    • Government interventions include setting up regulated markets, minimum support prices (MSP) for crops, and buffer stocks to protect both farmers and consumers.

    • Emerging Channels: Direct marketing from farmers to consumers through initiatives like Apni Mandi and Rythu Bazars help increase farmers' income by eliminating middlemen.


Agricultural Market System

  • Agricultural Marketing: Refers to the processes involved in moving agricultural products from farms to consumers, including storage, transportation, packaging, and distribution.

    • Farmers face issues such as faulty weighing, manipulation of accounts, and lack of storage facilities, leading to product wastage.

    • Government introduced measures like regulated markets, cooperative marketing, and minimum support prices (MSP) to support farmers.

    • Success Stories: Examples like milk cooperatives in Gujarat have shown how cooperative marketing can transform the agricultural landscape.


Diversification into Productive Activities

  • Diversification: Refers to both changes in cropping patterns and shifts from agriculture to allied activities (like livestock, fisheries) and non-agriculture sectors.

    • Rural employment is concentrated during certain agricultural seasons, making it essential to find alternative livelihood options in the off-season.

    • Animal Husbandry: Livestock, such as cattle, goats, and poultry, provide a stable income. Programs like Operation Flood helped develop the dairy sector, while states like Gujarat became leaders in milk production.

    • Fisheries: Contributes 0.9% to the GDP. It is a key source of livelihood for states like West Bengal and Andhra Pradesh.

    • Horticulture: India is a leader in fruit production, with crops like mangoes, bananas, and coconuts being vital for employment and food security.


Sustainable Development and Organic Farming

  • Sustainable Development: Involves farming practices that do not harm the environment or deplete resources.

    • Organic Farming: Is an eco-friendly method that avoids harmful chemicals and uses organic inputs, like compost and natural fertilizers.

    • Organic products have higher nutritional value, are in high demand globally, and generate income through exports.

    • Benefits of Organic Farming: It reduces the cost of agricultural inputs, improves soil health, and ensures environmental sustainability. However, it requires more labor and initial investment.


Conclusion

  • Rural Development: Must focus on improving infrastructure, diversifying employment, and linking rural areas to urban markets for higher returns.

  • Organic Farming: Presents a promising alternative for sustainable development and food security.


Recap

  • Rural development involves improving infrastructure, credit systems, marketing, and education in rural areas.

  • Diversification into non-agricultural activities is essential for providing stable livelihoods.

  • Organic farming is an environmentally sustainable alternative that can improve income and promote long-term development.



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