Chapter 5: Rural Development

To improve the system of agricultural marketing, the government came up with a variety of measures which are as follows:

1. Regulated markets organisation.

2. Minimum Support Price Policy

3. Development of cold storage, warehouses

4. Agriculture-themed programmes which were aired on radio and television

After all these initiatives, the system was successful in parts. Following are some of the obstacles that prevented a successful agricultural marketing system:

1. Farmers do not have a knowledge of market prices and market conditions, which leads to the sale of produce at a price lower than expected.

2. Insufficient storage spaces make farmers sell their produce at low rates.

3. Lack of availability of transportation makes farmers unable to reach new markets.

4. A large number of intermediaries are involved, which reduces customer interaction, and farmers get paid less.

5. Farmers become easy targets of false weighing techniques.

6. Lack of institutional credit forces farmers to borrow from moneylenders at a high-interest rate.

India as a country is mainly dependent on agricultural produce, and most of the population in rural areas is engaged in farming. Due to saturation in the agriculture field, the demand for non-farm activities has increased extensively. The agricultural industry is plagued by the problem of disguised unemployment. The non-farm sectors are less risky as compared to agriculture and also provide a proper livelihood for the rural people. Industries like agro-processing, leather, food processing, leather and the tourism industry are some of the dynamic sub-sectors where employment can be generated. There are other sectors which lack infrastructure and support, like pottery, handloom and crafts. Therefore, men and women from rural areas are seeking employment opportunities in these industries, which is a sign of rural diversification.

Animal husbandry contributes to non-farm employment in a significant way. Rural families opt for the rearing and sale of cattle and poultry in addition to farming. The farmers living in semi-arid and arid areas are mostly involved in livestock farming. In India, approximately 70 million people earn their income through livestock farming. The most important products obtained from livestock farming are milk, meat and eggs and also as products like skin which can be used to make leather items.

Fisheries

Fisheries form an important source of income for states in the coastal region such as Maharashtra, Kerala, Gujarat, Andhra Pradesh and Tamil Nadu. Fishing is primarily based on inland water bodies like rivers, ponds, fisheries and marine water bodies such as the sea. Funds have been allotted to this sector for improving production. Still, this segment has not contributed much towards GDP.

Horticulture

Horticulture is also one of the most important sources of livelihood in rural India. This includes fruits, vegetables, aromatic plants, flowers and medicinal plants. India is the second largest producer of fruits and vegetables. A rise in income levels has been witnessed in families engaged in horticulture. Horticulture generates around 19% of the total labour force in India.

Information technology (IT) plays a significant role in agriculture and helps in achieving sustainable development. It enables data storage associated with past and future conditions providing vital inputs for making decisions and also for taking various corrective measures necessary for the improvement of crop production. Weather and soil conditions can be determined with the help of information technology for improving crop productivity, and as such, if there is a chance of crop failure, it can be prevented using the information obtained from IT. It is possible for farmers to connect to Kishan Call Centers for any doubt regarding agriculture, it also helps in generating employment in rural areas in the form of kiosks. These kiosks serve as the source of information for improving productivity, better land usage, fertilisers, quality of seeds and other modern techniques that are required for agriculture. Hence, we can say that agriculture plays a significant role in achieving sustainable development.

Organic farming is a form of farming that puts an emphasis on preserving and enhancing the ecological balance. This type of farming uses organic inputs for cultivating crops. Traditional farming techniques use fertilisers and pesticides, which cause damage to the ecosystem. In organic farming, toxic-free agricultural products are produced while maintaining the fertility of the soil and contributing towards creating ecological balance.

1. Organic farming does not use harmful chemicals, so it is not harmful to the environment.

2. Chemical fertilisers cause the soil to lose its fertility after a period, whereas organic farming preserves soil fertility.

3. Crops that are grown organically have higher nutritional value as compared to standard-grown crops.

4. It is an inexpensive mode of farming suitable for small and marginal farmers.

5. International markets have a higher demand for organically produced crops.

Limitations of Organic Farming

1. Organic farming has a lesser yield than the yield obtained from conventional farming using fertilisers, hence less productivity.

2. As organic farming has low productivity, it is not popular amongst farmers.

3. Marketing of products and inadequate infrastructure are some concerns that need to be addressed.

4. Due to low yield, it is not seen as a financially viable option for small and marginal farmers.

It was observed during the initial years of organic farming that the yield produced was lesser than in modern farming. Due to this reason, the farmers were unable to take large-scale production. As it was having low yield per hectare, it was not seen as financially viable for small and marginal farmers. The organically produced varieties are perishable and have a short shelf life, and the choice of crops during the off-season is limited in the case of organic farming.

• Introduction to rural development
• Meaning of rural development
• Credit and marketing in rural areas
• Agricultural market system
• Emerging alternative marketing channels
• Diversification into productive activities
• Animal husbandry
• Fisheries
• Horticulture
• Other alternative livelihood options
• Benefits of organic farming