SHORT ANSWER QUESTIONS

Questions of 3-4 Marks Each.

Q.1. Explain the need for rural development.
Ans. More than two-third of India's population
depends on agriculture and about 60% of India's
population lives in rural areas. Hence, India's economic development requires speedy rural
development. Following points highlight the need for rural development:
(i) Increase in Productivity Rural development is needed to provide rural people with various
-

means that will help them increase

productivity. This will make agriculture a
profitable
venture. There can be no development without rural development.
 (i) Employment Rural development is needed to create employment opportunities particularly
non-farm activities.
in rural areas. This will be possible by promoting
(7) Better Living - Rural development is needed to improve standard of living of rural people by

healthcare, education and sanitation.

providing better access to
Q.2. State the challenges of rural development.
Or
What are the main problems of rural development ?
Ans. Following are the main problems of rural development :
) Growth Rate of Agriculture - The growth rate of agriculture is very less due to decline in

public investment in agriculture. As a result, there is a large scale poverty in rural areas.
) Inadequate Infrastructure There is inadequate economic infrastructure like irrigation,
electricity, credit, marketing, transport etc. There is inadequate social infrastructure like health
and education.
(ii) Lack of Non-farm Activities - There is inadequate non-farm activities to support agriculture
such as animal husbandry, dairying, fisheries etc. Non-farm activities provide supplementary
gainful employment and enable people to overcome poverty.
Q.3. State the sources of agricultural credit in India.
Ans. The sources of agricultural credit in India may be grouped into non-institutional sources and
institutional sources.
(a) Non-institutional sources Non-institutional sources of credit are the conventional sources
and incude landlords, village traders, relatives and moneylenders. These sources accounted
for 93% of the total borrowing of the farmers in 1951.
(b) Institutional Sources - Institutional sources of credit are non-conventional sources and include
cooperative credit societies, commercial banks, Regional Rural Banks, NABARD and other
government agencies. With the passage of time, role of institutional sources of credit is
increasing day-by-day.
Q4. Discuss the importance of credit in rural development. [NCERT
Ans. Following points highlight the importance of credit in rural development:
() Personal Needs-The gestation period between sowing of crops and realisation of income after
production is quite lorng. Hence, credit is required by the farmers to meet their personal needs.
(i) Investment on inputs Credit is required by the farmers to make investment on seeds,
fertilisers, implements etc.
(ii) Investment on Non-farm activities - Since majority of the rural people are poor, they do not
have sufficient personal resources to make investment for taking up non-farm activities and
cottage and small scale industries.
Q.5. Critically evaluate the role of the rural banking system in the process of rural development in
India. [NCERT] [CBSE 2020
Ans. The role of the rural banking system in the process of rural development in India may be described
as under
) Less dependence on moneylenders Rural banking system has minimised the dependence of
farmers on the moneylenders and traders who used to exploit the small and marginal farmers
by many ways.
(i) Easy terms - Rural banking system has helped the farmers to avail credit at lower rates of
interest and easy terms.
(in) Commercialisation of Agriculture and Promotion of Non-farm activities Rural banking
system has faciitated direct finance to the farmers for farming operations and input such as
seeds, fertilisers etc. Rural banking system has provided credit facilities to non-farm activities
also.
 .6. Explain the role of micro-credit in
meeting credit requirements of the poor. INCERT
Or
Write a note on
Self-Help Groups.
Ans. One of the institutional source of rural credit is Self-Help Groups which provide micro-credit. 1ne
Self-Help Groups promote thrift in small
proportions by a minimum contribution irom td
member. From the pooled
money, credit is given to the needy members to be repayable at smal
instalments at reasonable rate of interest. Micro-credit programme abandons the need of any Kina
of collateral security to be offered by the borrower. It has helped in the empowerment of women.
Q.7. State any three main drawbacks of rural
banking.
the three drawbacks of rural
Ans. Followingare banking:
(i) Inadequate - The volume of rural credit in India is not sufficient to meet the demand of rural

credit.
(ii) Less Attention to Poor Farmers - Most of the lenders insist on security before granting loans.
Since poor farmers are not in a position to offer any security for loans, poor farmers do not avail
credit facilities. Well-to-do farmers get more attention.
(ii) Unfavourable Conditions - Lenders often impose unfavourable conditions for granting loans
including high interest rates.
Q.8. Explain the role of Minimum Support Price (MSP) and Buffer Stocks in the context of agricultural
marketing in India.
Ans. Role of Minimum Support Price - The Government of India has adopted the policy of minimum
support price to safeguard farmers from undue fluctuations in market prices of agricultural
odities. Under this policy, the government well in advance of the sowing season
minimum prices at which the government will purchase various commodities. It means that the
declares the
farmers have an option to sell their output to the government if the market prices fall below these
minimum support prices. However, if the market prices are higher, the farmers are free to sell in the
market.
Role of Buffer Stocks - The Government of India has adopted the policy of buffer stocks to

minimise the fluctuations in the food prices. Buffer stocks serve as shock absorbers in the economy
and provide a defence mechanism against the widely fluctuating price levels. Under the buffer
stocks policy, the government builds up stocks of food through direct purchases from the farmers
and releases these stocks for sale in the domestic market when prices are increasing. Buffer stock
operations aim at eliminating unduly low prices consequent to bumper crops.
Q.9. Discuss the role of horticulture in the direction of rural development. ICBSE 2020]
Ans. Horticulture is an allied activity of the agriculture. It will not be a difficult task for the farmers to
adopt this activity. The role of horticulture
may be discussed as under:
) Horticulture will reduce the risk of agriculture sector.
(i) Horticulture will provide productive sustainable livelihood options to the people in rural
areas.
(in) Horticulture will reduce overcrowding of agriculture. This will result in reduction of the
poverty level and rise in their standard of living.
Q10. Distinguish between "Green Revolution" and "Golden Revolution", [NCERT| [CBSE 2020]
Ans. Basis of Green Golden
Distinction Revolutiom Revolution
() Relation It is related to agriculture i.e., food It is related to horticulture i.e.,
grains. fruits and vegetables.
(i) Impact It provided food security and It provided nutrition and
raised farmers, income. sustainable livelihood options.
 (ii) Period Period of green revolution is Period of golden revolution is
1967-78. 1991-2003.
(iv) Result It changed India's status from Jt made India a world leader and
a food deficient country to a cxporter of fruits.
leading agricultural country.
Q.11. What are the alternative channels available for agricultural marketing? Give some examples.

Ans. Following are the two alternative channels available for agricultural marketing:
INCERT
() Farmers Market - Farmers should directly sell their produce to consumers. It means that

there should be no intermediaries between the farmer and the consumers. Some examples aro
Apni Mandi (Punjab, Haryana and Rajasthan); Hadaspar Mandi (Pune); Rythu Bazaars
(Andhra Pradesh).
(i) Alliance Farmers and national and international fast food chains may enter into contracts or
alliances under which farmers shall cultivate the products of the desired quality. For this purpose.
farmers will be provided with seeds and other inputs. There will be an assured procurement of the
produce at predetermined prices. Such arrangements will help in reducing the price risk of farmers
and expand the market.
Q.12. Why is agricultural diversification essential for sustainable livelihoods? INCERT]
Or
How agricultural diversification is helpful for farmers ? Explain.
Ans. Agricultural diversification includes two aspects:
() Diversification of crop production.
(i) Shifting of workforce from agriculture to other allied activities and non-agriculture sector.
Agricultural diversification is helpful for farmers in following ways:
) Reduction of Risk - Diversification implies a shift from subsistence farming to commercial

farming. It offers choice of cropping pattern which minimises the risk from agricultural sector.
(i) Employment - Diversification provides sustainable livelihood options to the people living in

rural areas. Diversification is essential to provide supplementary gainful employment

opportunities.
(ii) Reduction of Poverty Diversification provides alternate employment opportunities in non
farm sectors which will reduce overcrowding of agriculture. This will result in reduction in the
poverty level and rise in their standard of living.
Q.13. Explain the role of non-farm employment in promoting rural diversification. [NCERT]
Ans. The role of non-farm employment in promoting rural diversification may be described as under
) Livelihood If there is no non-farm employment, farmers would depend exclusively on
farming. Non-farm employment provides various livelihood options to people.
(i) Seasonal Employment - During the Rabi season of farming, a large number of farmers do not

find employment due to inadequate irrigation facilities. Non-farm employment keeps farmers
employed during period of seasonal unemployment.
(ii) Alternate Employment- Non-farm employment provides alternate opportunities which will
shift workforce from agriculture to other activities.
(io) Industrialisation - Many non-form activities provide input to the large scale industries

particularly food-processing industry, leather industry etc.

Q.14. Bring out the importance of animal husbandry, fisheries and horticulture as a source of
diversification. [NCERT
Ans. Animal husbandry, fisheries and horticulture play an important role as a source of diversification.
Animal husbandry, fisheries and horticulture are allied activities of the agriculture. It will not be a
difficult task for the farmers to adopt these activities. Shifting to these activities will reduce the risk
 of agriculture sector. Further, these activities will ons
provide productive
to the people living in rural areas. A significant number of women sustainable liveinoou oP
will also find employment in
these sectors.

o.15. "Information technology plays a very significant role in achieving sustainable developmenta
food security." Comment.
INCERTI
Ans. Information technology plays a very significant role in achieving sustainable development and
food security. Information technology can be used
by the to predict areas or
insecurity and vulnerability. As a consequence, a governmentgovernment Tooor
can take suitable action to prevent
reduce the likelihood of an emergency. Further, information technology can be used by the farmers
for receiving up to date information regarding emerging technologies and its applications, prices
weather and soil cornditions for growing different crops etc. Information technology has potential
of employment opportunities in rural areas.
Q.16. Write a note on National Bank for Agricultural and Rural Development (NABARD).
Ans. National Bank for Agricultural and Rural Development (NABARD) is the apex institution which

coordinates the functioning of various financial institutions working for expansion of rural credit.
Its objective is to promote health and strength of credit institutions such as commercial banks,
cooperative societies and regional rural banks operating in rural areas. It provides finance to credit
institutions. It also provides financial assistance to the non-farm sector to promote integrated rural
development.

LONG ANSWER OQUESTIONS

Questions of 6 Marks Each.
Q.1. What do you mean by rural development ? Bring out the key issues in rural development
[NCERT
Ans. Rural development refers to a comprehensive plan of action to improve socio-economic aspects of
rural life.
Following are the key issues in rural development:
() Human Resources - Rural development requires development of human resources by providing
more educational facilities and health services in rural areas.
i) Land Reforms Rural development requires implementation of land reforms to eliminate
exploitation in land relations and to improve socio-economic conditions of rural poor by
their land base.
widening
(it) Local Productive Resources Rural development requires development of the productive
resources of each village to enhance opportunities of employment particularly in non-farming
areas.
(io) Infrastructure Another key issue in rural development is development of infrastructure
which includes irrigation, transport, electricity, credit of facilities etc.
() Employment Opportunities Rural development requires creating more employment
opportunities in the rural areas under poverty alleviation programmes which will lead to

significant improvement in living conditions.

Q2. "Rural Economie development is essential for Indian Economic development." Do you agres
with the given statement ? Support your answer with valid reasons. CBSE Sample Paper 2019]
Ans. Mahatma Gandhi had always maintained that the real growth of India lies in the growth of
villages. The importance of rural development inIndia lies in thefact that 2/3rd of the population
still (directly orindirectly) depends on agriculture and around 1/3rd of the rural population still
ives in abject poverty.
 Some of the prime areas for the development of the rural India may be quoted as follows:
Infrastructure development Is the key to any development process. Basic infrastructr
requirement like electricity, irrigation, credit availability, transport facilities, construction o
are the area which still need attenfio
village roads and feeder roads to nearby highways, etc.
of the government so as to gain commanding heights.
Alleviation of poverty - Poverty in rural India is an area that should be taken up as a mission
for improvement in the living conditions of particularly those Iiving at the bottom of pyramid
This problem may be tackled by emphasising on greater access to productive employment

opportunities.
Development of Human Capital - Rural human capital must be developed by taking sincere

steps in the direction of education and health.

?
Q.3. What strategy would you suggest for rural development
Ans. We would suggest following measures to be taken as strategy for rural development:
() Land Reforms There should be a speedy implementation of land reforms to eliminate
exploitation in land relations and to increase agricultural productivity.
(in) Non-farming Activities There should be promotion of non-farming activities such as food
processing, fisheries, animal husbandry etc. in the rural areas. This will enhance opportunities
of employment.
(it) Access to Health Care People living in rural areas should be provided better and more
affordable access to health care, sanitation facilities etc. at workplaces and homes.
(iv) Education People living in rural areas should be provided better and more affordable
educational and vocational facilities. This will improve the quality of human resources.
(o) Development of Infrastructure - There should be improvement in electricity, irrigation, credit
and transport facilities. Priority should be given to construction of village roads.
(vi) Alleviation of Poverty Around 30% total population resides in rural areas. Hence, poverty
alleviation programmes should be implemented to improve the living conditions of the poor.
Q4. It has been realised that agricultural finance is not available in sufficient quantity at right time
and at reasonable rate of interest. As an agriculturist, suggest the various measures to make the
existing system of agricultural finance serve fully the needs of agriculture effectively.
Ans. As an agriculturist, I would offer following suggestions to improve the existing system of agricultural
finance
(i) Institutional Sources Since various non-institutional sources have exploited small and
marginal farmers by lending on high interest, the supply of finance should be fully
institutionalised to eliminate dependence on private sources.
(ti) No Security The basis of credit given to farmers should not be any security. Production of
productivity of land should be taken as the basis for grant of loans to farmers
(ii) Interest Rate - The rate of interest should be low in general. The lenders should charge

different rates of interest for different uses.

(i) Repayment of Loans - The conditions of repayment of loans should be easy so as to suit

different circumstances of the farmers.

() Supervision The lenders should be asked to ensure that credit is used for the purpose for
which credit is being granted. Lenders may be given in the form of seeds, fertilisers and
tractors. The personnel attached to financial institutions should have full knowledge of
agriculture and farmers.
(vi) Adequate Amount - The amount of loan sanctioned to the farmers should be adequate.

Q.5. Explain the obstacles that hinder the mechanism of agricultural marketing [NCERTI
Ans. Following are the obstacles that hinder the mechanism of agricultural marketing
() Inadequate Storage Facilities - In India, there are inadequate facilities for storing agricultural
products. As a result, farmers have to sell their goods at the earliest. Further, a sizeable portion
of products is destroyed by climate, pests et.
 (i) Absence of Adequate and Cheap Transport-In India, there is lack of adequate and economical
transport facilities to bring agricultural produce to markets. As a result, farmers do not get fair
prices for their produce.
(ii) Intermediaries - There is a large number of intermediaries between farmer and the consumers.

These intermediaries partake commissions as well as exploit the farmers through various
unfair practices.
(iv) Market Information There is a lack of market infornmation e.g. information regarding prevailing
-

level of prices of agricultural commodities. As a result, farmers are forced to sell their
produce
at low prices.
(u) Forced Sale - In India, farmers do not have good holding capacity and are forced to sell their

produce at the prevailing prices.

(vi) Grading and Standardisation - Indian farmers do not take advantage of grading and
standardisation. As a result of this, farmers do not get good price for their produce.
Q.6. Explain the measures taken by the
government improve agricultural marketing.
to [NCERT
Ans. Following are the measures
0
taken by the government to improve agricultural marketing
Regulation of Market - The government has regulated the agricultural markets. As a result,
market committees ensure orderly and transparent transactions and farmers get appropriate
price for their produce.
(t) Warehousing Facilities - The government has provided warehousing facilities to the farmers.
This
helps farmers to sell their produce at a good price.
Cooperative Societies-The government has encouraged the formation of cooperative marketing
societies. This has ensured good prices of their produce through collective sale.
(0) Minimum Support Prices The government has been following the policy of minimum
support prices for various products. Minimum support prices ensure the farmers that their
produce would be purchased by the government at specified price.
)
Information The government has engaged electronic media and print media to provide
market information to the farmers. On the basis of this, farmers decide from where to purchase
and sell.
(1) Transportation The governmernt has provided subsidised transport facilities to the farmers to
bring their produce to the markets.