Rural Development

Mahatma Gandhi said that the real progress of India would mean the development of its villages, because a majority of Indians still live in rural areas and depend on agriculture. Rural development is an action plan for the development of areas that lag behind. It focuses on human resources such as literacy, skills and health, land reforms, infrastructure, and the alleviation of poverty. The chapter examines rural credit: the role of moneylenders, the nationalisation of banks in 1969, NABARD, set up in 1982, cooperatives, regional rural banks, and the Kisan Credit Card. You will also study self-help groups and micro-credit, which have helped poor women. In agricultural marketing, measures to improve it include regulated markets, storage, cooperative marketing, minimum support prices and buffer stocks, and alternative markets like Apni Mandi, Rythu Bazars and Uzhavar Sandies. The chapter also discusses diversification into non-farm activities: animal husbandry with dairy cooperatives such as Amul and Operation Flood, fisheries, horticulture and information technology. It ends with sustainable development and organic farming, which avoids chemical inputs.

Detailed Worksheet: Rural Development Section A - Definitions (10 marks) 1. What is meant by rural development? (2 marks) 2. What is NABARD? When was it set up? (2 marks) 3. What is a self-help group? (2 marks) 4. What is agricultural marketing? (2 marks) 5. What is organic farming? (2 marks) Section B - Calculations and Applications (15 marks) 6. A farmer borrows Rs 50,000 from a moneylender at 36% annual interest and Rs 50,000 from a bank under the Kisan Credit Card at 7%. Calculate the simple interest payable on each loan for one year and the saving from borrowing from the bank. (3 marks) 7. The minimum support price of wheat is Rs 2,275 per quintal, while the local trader offers Rs 2,000. Calculate the extra income for a farmer selling 40 quintals at the MSP. Why does the government fix MSP? (3 marks) 8. A self-help group of 20 women saves Rs 200 each per month. Calculate the total savings in a year. If the bank lends 4 times the savings, calculate the loan available. (3 marks) 9. A farmer sells 10 quintals of tomatoes at Rs 800 per quintal to a middleman, who sells them at Rs 2,000 in the city. Calculate the middleman's margin. If the farmer sells directly at a Rythu Bazar at Rs 1,500 per quintal, calculate his extra earnings. (3 marks) 10. India's milk production rose from 17 million tonnes in 1950-51 to about 210 million tonnes in 2020-21. Calculate the increase and how many times production has grown. Name the programme behind this growth. (3 marks) Section C - Diagrams (10 marks) 11. Draw a flowchart showing the sources of rural credit in India: institutional and non-institutional. (4 marks) 12. Draw a flowchart showing how a dairy cooperative such as Amul works, from the farmer to the consumer. (3 marks) 13. Draw a chart showing the alternative marketing channels in different states and how they help farmers. (3 marks) Section D - Analysis and Higher-order Thinking (15 marks) 14. 'Rural credit through formal institutions has helped farmers but has not removed dependence on moneylenders.' Discuss with reasons. (5 marks) 15. Explain the need for diversification into non-farm activities in rural areas. Explain the role of animal husbandry, fisheries and horticulture. (5 marks) 16. Explain the benefits and limitations of organic farming. Why is it important for sustainable development? (5 marks) Instructions: Time allowed 2 hours. Attempt all sections. Show the steps of all calculations. Data are approximate or illustrative.