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State a few factors which are a challenge for the rural development.

Some of the areas which pose a challenge to the progress of our nation include:


Land Reforms

Human Resource development which includes increasing the literacy levels, especially female literacy, female development and also health issues like sanitation and public health.
Developing the productive resources of each locality.
Infrastructural development like electricity, irrigation, transport, credit, construction of village roads and connectivity to highways, fostering agricultural research, extension and information dissemination.
Special measures for eradicating of poverty and bringing about significant changes in the standards of living of the weaker sections of the population.



Give a brief account of the credit facilities that were available to the rural sector and the improvements that have been brought about in them.

During the time of independence marginal and small farmers were exploited brutally by the money lenders who lent amounts at high interest rates and lured the farmers into debt trap.
In 1969, India adopted social banking and multi agency approach in order to adequately meet the rural credit.
The National bank for Agriculture and Rural Development (NABARD) was set up in 1982 as an apex body to coordinate all the activities involving the finance of the rural sector.
The Green Revolution also brought in major change in the credit system and it led to the diversification of the rural credit portfolio, making it a more production oriented lending.
A set of multi agency institutions namely regional rural banks (RRBs), cooperative and land development banks for the institutional structure of rural banking today.
The multi agency system is aimed at dispensing adequate credit at cheaper rates.
The formal credit delivery mechanism has proved to be inadequate and has not fully integrated the overall rural social and community development.
Hence in order to fill the gap created by the formal credit delivery system, Self Help Groups (SHGs) have emerged recently.
Some collateral was required for getting credit and hence a large proportion of the poor rural households found themselves out of the credit network. SHGs on the other hand promote savings and thrift.
They encourage savings in small proportions by having a minimum contribution from each member. The money thus pooled, is then given as loans to needy members with reasonable return rates and repayable in easy installments.



Give an account of the measures taken to improve the marketing scenario.

Some of the measures that were taken in order to improve the marketing scenario were:


The initial step taken was to regulate the markets to create orderly and transparent market conditions. This was very beneficial for the farmers as well as the consumers but there still around 27000 rural periodic markets as regulated market places is required in order to realize the full potential of the rural market.
Next, the provision of physical infrastructural facilities like railways, roads, warehouses, godowns, cold storage and processing units were being introduced but the current infrastructural facilities are quite inadequate.
The third initiative taken was to introduce cooperative markets so as to realize fair prices for the farmer’s produce. The success of the milk cooperatives in Gujarat is a testimonial of the success of this initiative taken. The milk cooperatives have transformed the social and the economic landscapes of Gujarat and have made a big impact on the standard of living of the farmers. The cooperatives have had a setback during the recent past due t lack of proper coverage of farmer members, improper and insufficient links between the marketing and processing cooperatives and inefficient management of the finances.
The fourth initiative taken is the introduction of policy instruments like:


Assurance of minimum support price (MSP) for 24 agricultural products.
Using the Food Corporation of India to maintain a buffer stock of rice and wheat.
Using the PDS to distribute rice and grains.



Name a few channel which encourage the direct selling of the goods by farmers themselves.

Some examples of channels which promote the direct selling by the farmers themselves are: Apni Mandi (Punjab, Rajastan and Haryana), Hadaspar Mandi (Pune), Rythu Bazars( fruit and vegetable markets in Andhra Pradesh) and Uzhavar Sandies ( the farmer markets of Tamilnadu).


Name a few areas into which the farming community can diversify


A few areas in which the farming community can diverse are:

Animal Husbandry


Give a brief account of Operation Flood and its success

Operation flood is a system in which all the farmers can pool their milk produce according to different grading based on the quality of the milk produced. This pooled milk is then processed and marketed to the urban areas through the cooperatives. In this system, the farmers are assured of a fair price and income. Gujarat is the prime example of the success of this endeavor.


What are the challenges faced in fisheries?

Problems faced in fisheries are overfishing and pollution. Also the development programs should be made into long lasting and sustainable ones.


What are the challenges faced in horticulture?

Horticulture requires investments in cold storage, market linkages, electricity, small scale processing units and technological advancements.


List the benefits of organic farming.

Organic farming aims at substituting HYVs.
The produce is more than that got by conventional methods.
The export demand is more and hence profits are more.
The food is healthy.
The produce is pesticide free and environment friendly.

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