Very short answere type questions

Q.1. Name the key issues relating to rural development .

Q.2. Define non-institutional sources of agricultural credit.

Q.3. What is agricultural marketing ?

short answer type questions

Q.1. Give two basic objectives of the co-operative credit societies .

Q.2. Why does the farmer need the services of a food marketing system ?

Q.3. What are the advantages of organic farming ?

Long answer type Questions

Q.1.What steps have been vinitiated by the government to improve agricultural market system in india ?

Q.2. Explain the various type of non- farm employment in rural areas . Bring out their significance .

Very Short Answers

Solution 2

Non-institutional sources of credit basically consists of the traders, money lenders, relatives, landlords and others. This source of credit was very popular among rural people at the time of independence and is sometimes also known as Informal Sector. At the time of independence, the non-institutional sources were the major source of credit and accounted for more than 90% of the total credit requirements. The money lenders and the zamindars often exploited the poor farmers. They charged exorbitant rates of interest and manipulated the accounts. As a result, the farmers were caught in a never ending debt-trap.

Solution 3

You can find the answer to the concerned question at the below mentioned link.

Short Answers

Solution 1

Co-operative credit societies had the following broad objectives.

a) To eliminate the role of money lenders as a source of credit.

b)To provide easy and adequate credit to the farmers.

Solution 3

Organic farming has some notable benefits which are as follows.

1.Discards Use of Chemicals-Unlike conventional farming, organic farming is free from synthetic chemicals. The chemicals present in the chemical fertilisers penetrate into the ground water and raises its nitrate content. This causes health hazards and also pollutes the environment. So, organic farming is an environment friendly method of farming.

2. Sustains Soil Fertility-The use of chemical fertilisers leads to erosion of soil fertility. Organic farming discards the use of chemical fertilisers. Therefore, this farming is practiced to produce non-toxic food for the consumers without degrading the soil fertility.

3.Healthier Food-Organically grown crops have high nutritional value than the conventionally grown crops. With higher nutritional value, the food crops grown organically are healthier in nature. It is due to this reason that the demand for organically produced food rises rapidly even at a higher price.

4.Inexpensive Technology for Small and Marginal Farmers- The small and marginal farmers constitutethe bulkof the farming.Organic farming offers an inexpensive farming technique to these small and marginal farmers as it does not involve the use of expensive fertilizers and other chemicals.


Long Answer

The following are the various steps/measures initiated by the Government of India to improve the Agricultural Marketing system.

1.Organisation of Regulated Markets-Regulated markets have been introduced where the sale and the purchase of the farm products are monitored by a Market Committee. These markets operate with the basic rationale of protecting farmers from fraudulent practices of the intermediaries. The Market Committee consists of farmers, government agents, brokers and traders. The government has also set of regulated market yards on the outskirts of major towns and cities. Here the farmers can sale their produce at a fair price and also avail the facility of storage for their crops. 

2.Infrastructure Development, Storage and Godown Facilities-Indian farmers always experienced lack of sufficient infrastructural development that forced them to sell their products just after harvesting even at unfavourable prices. Thus, in order to overcome this obstacle, the Indian government provided cold storages and warehousing facilities all across the country. This not only has helped the farmers to sell their products at the time when the price is attractive but has also enabled them to generate greater marketable surplus. The advancement of the Indian railways and roadways has also facilitated the farmers to extend their market to the urban areas where they are able to earn even higher profits

3.Propagation of Market Information-Prior to the introduction of the agricultural marketing system, Indian farmers being ignorant often fell easy prey to the intermediaries and traders. In order to safeguard them, it was very important to bridge up the information gap by making them aware of the prevailing market conditions such as current prices, sales, stock updates of the farm products, etc. These market updates were disseminated by All India Radio, Doordarshan, newspapers, etc. Programs such as the krishi darshanare broadcasted on Doordarshan and radio that provide infromation of various agricultural issues. All these facilities finally helped the farmers to sell their products at favourable time, thereby, fetching the maximum returns.

4. MSP Policy-Minimum Support Price is the minimum legislated price that a farmer may charge in return by selling his products. This policy enables farmers to sell their products in the open market at a higher price. The MSP insulates the farmers in case of price fall as this is the minimum price that they can receive. Under the uncertainties faced, such kind of assurance is of immense importance for the farmers.

5. Facilitation of Warehousing Facilities-With facilitation of warehousing facilities, it becomes easier for the farmers to invest in the crops and store their product. By storing the excess output, the farmers can sell them later at attractive prices. In this direction, some storage space has also been provided by the central and state warehousing corporations for storing excess agricultural product.

6. Facilitation of Transportation Facilities-With initiation of good transportation facilities, farmers were able to sell their products in the urban areas at higher prices. By selling their surplus output in the urban market, farmers can enhance their earnings.


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