CBSE Class 11 Economics Rural Development Worksheet Set B

CASE STUDY-1

Rural Development is the key issue with the government . Without the development of rural areas India can not increase its growth to desired level. Rural development does not mean only to develop its agriculture marketing and credit but also to develop education , training and infrastructure in rural areas. The government has launched many programmes especially of provision of credit and marketing facilities. The farmers often have shortage of funds. Farmers generally go to non institutional sources for their short term and long term loans. But farmers are generally exploited. To help them government started provided loan through commercial banks and also an apex bank named NABARD was established in 1982. Government is also making efforts to improve agricultural marketing by removing the role of intermediaries where farmers can directly sell their produce to seller without involving any commission agent or middlemen.

Questions:

Question: SHG’s
(a) Self Higher Group
(b) Social Help Group
(c) Self Help Group
(d) None
Answer: C

Question: NABARD is established in the year ______ (1982/1992).
Answer: 1982

Question: When a sale is made under unfavourable conditions for seller is termed as _________.
Answer: Distress Sale

Question:Non farm activities are promoted by government for:
(a) regular income to farmer
(b) addressing the problem of disguised unemployment
(c) reducing pressure on land
(d) All of the above
Answer: D

CASE STUDY-2

Development in rural areas, up to a large extent depends on Agriculture, as it constitutes the prime source of livelihood and food for farmers and other villagers. But the statement also holds true, the other way round, that is agricultural in a village also depends hugely on the infrastructure developments and scientific advancements in farming. Agriculture and Rural Development are directly proportional to each other and a development in any one will consequently lead to the improvement of other. On the other hand, a poor state of any one of them will adversely affect the other. The contribution of agriculture in improving rural economy is immense. It sustains village economy by generating food , employment and other related means of livelihood. Organic Farming is natural, thus always preferable. We can have it to maintain the quality of the grain and soil and the legacy of ancient farming. In fact. Organic Farming is more productive than Inorganic Farming. Agriculture sector is the huge employment provider in rural areas. It provides employment to daily wage labours as well as skilled work force in fields as well as other agriculture related activities . Social, economic and overall development of a rural area depends on a wide number of factors like agriculture, better planning, employment generation etc.

Questions:

Question: Suggest any two areas that need fresh initiatives under rural development.
Answer: Development of human resources, Land reforms, Infrastructure, etc.

Question: ______________ is a system through which agricultural goods reach different places.
Answer: Agricultural Market System

Question: What is organic farming?
Answer: Organic Farming is the growing of crops using natural methods and tools. It also includes rearing of animals in natural ways.

Question: Why do you think organic farming is harmless?
Answer: Organic farming retains the taste and nutrients of the crops without involving the usage of harmful chemicals. It also helps in retaining the soil fertility

CASE STUDY-3

Agricultural credit in India is available to farmers and other people working in the farming sector in India from various sources. Short and medium term agricultural credit requirements of farmers and others employed in the agricultural sector in India are usually met by the government, money lenders, and co-operative credit societies. Farmers with long-term loan requirements, such as a long-term Agri loan or a loan for agri land purchase, can avail of loans from land development banks, the Indian government, and money lenders.

Questions:

Question: Which are the two sources of agricultural credit in India?
Answer: (a) Non-institutional sources
(b) Institutional sources

Question: Why do farmers need credit?
Answer: Due to long time gap between crop sowing and realisation of income.

Question: Name some institutional sources of agricultural credit.
Answer: NABARD, Co-operative Credit Societies, Commercial banks, Regional Rural Bank e.t.c

Question______ is the apex institution in rural financing, established in _____.
Answer: National Bank for Agriculture and Rural Development ( NABARD), 1982

CASE STUDY-4

The policy intervening rural credit/agriculture has always been credit driven. This is even more pronounced in the Recent interventions made by the state in the package announced for distressed farmers in doubling agricultural credit, providing subvention and putting an upper cap on interest rates for agricultural loans. Looking specifically at rural financial markets using some primary data, we argue that it is necessary to understand the Rural Financial markets from demand side.

Questions:

Question: Mention any two sources of rural credit in India.
Answer: Institutional and non institutional

Question: What are the main institutional sources of rural credit in India.
Answer: Cooperative credit societies, State bank of India, Commercial banks, Regional Rural banks etc.

Question: What are suggestive measures to overcome the problems of marketing system in India.
Answer: MSP Policy, Regulated markets, Subsidised transport.

Question: Discuss the role of cooperatives in Rural credit.
Answer: Timely and rapid flow of credit, elimination of money lenders, provision of adequate credit.

CASE STUDY-5

In agriculture, due to long time gap between crop sowing and realisation of income,farmers are in strong need for credit.Farmers need money to meet initial investment on seeds, fertilisers, implements and other family expenses of marriage, death,religious ceremonies, etc. So, credit is one of the important factors, which contribute to agricultural production. An efficient and effective rural credit delivery system is crucial for raising agricultural productivity and incomes.

Questions:

Question: Which one of the following is not a non-institutional source of credit?
(a) Money lenders
(b) Co-operative Credit
(c) Traders and commission agents
(d) Land development bank
Answer: B

Question: __________ ( NABARD/ RBI) is the Apex Bank which coordinates the functioning of different financial institutions, working for expansion of rural credit.
Answer: NABARD

Question:Regulated markets were organised to protect the farmers from the malpractices of consumers. (True/ False)
Answer: False

Question: What is the main aim of co-operative marketing societies?
Answer: The main aim of co-operative marketing is to realise fair price for farmers’ products.

CASE STUDY-6

At the time of independence, money lenders and traders exploited small and marginal farmers and landless labourers by lending to them on high interest rates and by manipulating the accounts to keep them in a debt-trap. A major change occurred after 1969 when India adopted social banking and multi agency approach to adequately meet the needs of rural credit. The institutional structure of rural banking today consists of a set of multi agency institutions, namely, commercial banks, regional rural banks, cooperatives and land development banks. They are expected to dispense adequate credit at cheaper rates. Recently, self help groups have emerged to fill the gap in the formal credit system. The SHGs promoter thrift in small proportions by a minimum contribution from each member. From the pooled money, credit is given to the needy members to be repayable in small instalments at reasonable interest rates. By may 2019, nearly 6 crore women in India have become member in 54 lakh women SHGs. About Rs 10-15,000 per SHG as a community investment support fund are provided as part of renovationg fund to take up self employment for income generation.

Questions:

Question: _____________ was set up in 1982 as an apex body to coordinate the activities of all institutions involved in the rural financing system.
Answer: NABARD

Question: The ___________ was a harbinger of major changes in the credit system as it led to the diversification of the portfolio of rural credit towards production oriented lending.
(a) Green Revolution.
(b) Golden Revolution.
(c) White revolution.
(d) None of these.
Answer: B

Question: Recently, Self Help Groups have emerged to fill the gap in the formal credit system. Such credit provisions are generally referred to as_____________ .
Answer: Micro credit programmes.

Question: Which of the following part is not a part of the institutional structure of rural banking today?
(a) Commercial banks.
(b) Regional rural banks.
(c) Non- banking finance companies.
(d) Land development banks
Answer: C

CASE STUDY-7

Tamil Nadu Women in Agriculture (TANWA) is a project initiated in Tamil Nadu to train women in latest agricultural techniques. It induces women to actively participate in raising agricultural productivity and family income. At a Farm Women’s Group in Thiruchirapalli, run by Anthoniammal, trained women are successfully making and selling vermicompost and earning money from this venture. Many other Farm Women’s Groups are creating savings in their group by functioning like mini banks through a micro-credit system. With the accumulated savings, they promote small-scale household activities like mushroom cultivation, soap manufacture, doll making or other income- generating activities.

Questions:

Question: Self help groups and micro credit programmes are an emerging phenomenon in the context of ______________ credit. (rural/urban).
Answer: Rural

Question: Institutional sources of credit has gone a long way in liberating the farmers from the debt trap of Mahajans and money lenders. (true / false)
Answer: true

Question: Define the concept of micro-credit.
Answer: It refers to small loans meant for the impoverished people.

Question: Name any two non-farm activities to generate income in rural areas.
Answer: Animal husbandry, fisheries horticulture, cottage and small scale industry.

CASE STUDY-8

Diversification includes two aspects – one relates to change in cropping pattern and the other relates to a shift of workforce from agriculture to other allied activities like livestock, poultry, fisheries etc. and non-agriculture sector. The need for diversification arises from the fact that there is greater risk in depending exclusively on farming for livelihood.
Diversification towards new areas is necessary not only to reduce the risk from agriculture sector but also to provide productive sustainable livelihood options to rural people. Much of the agricultural employment activities are concentrated in the Kharif season. But during the Rabi season, in areas where there are inadequate irrigation facilities, it becomes difficult to find gainful employment. Therefore, expansion into other sectors is essential to provide supplementary gainful employment and in realising higher levels of income for rural people to overcome poverty and other tribulations.

Questions:

Question:_____________relates to a shift of workforce from agriculture to other allied activities. (Monocropping /Diversification)
Answer: Diversification

Question: Livestock comes under the category of ____________ activities. (allied/diversification)
Answer: Allied

Question: Diversification provides _____________ options to rural people. (livelihood/irrigation)
Answer: Livelihood

Question: .It is difficult to find gainful employment in __________ season, in areas where there are inadequate irrigation facilities. (Kharif/Rabi)
Answer: Rabi

CASE STUDY-9

Agricultural diversification includes two aspects: one relates to change in cropping pattern and the relates to a shift of workforce from agriculture to other allied activities (livestock, poultry ,fisheries etc.) and non-agriculture sector. The need for diversification arises from the fact that there is greater risk in depending exclusively on farming for livelihood.
Diversification towards new areas is necessary not only to reduce the risk from agriculture sector but also to productive sustainable livelihood options to rural area.

Questions:

Question: Define Agricultural diversification.
Answer: Diverting from same crop production to another option for rural development is called Agricultural diversification.

Question: Give two aspects of agricultural diversification.
Answer: Two aspects:
a.) Diversification of crop production
b.) Diversification of productive activities

Question: The need for diversification arises to avoid the risk ____________ and also to provide _____________.
Answer: dependent on farming for livelihood, productive sustainable livelihood options to rural people.

Question: Name the major fish producing states of India.
Answer: India is the second largest producer of fish in the world. The states of West Bengal, Kerala, Gujarat, Maharashtra and Tamil Nadu are the major producers of marine products.

CASE STUDY-10

Since age farmers in India have taken resource to debt. In the earlier time the same was from informal sources. since Independence with the effort of the government formal sector has activity come into picture. Farmers borrow not only to meet their investment need but also to satisfy their personal needs but to satisfy their personal needs. Uncertainly of income caused by factors likes crop failure caused by irregular rainfall, reduction in groundwater table other pest attack etc. These resource push them into the clutches of the private money lenders, who charge exorbitant rate of interest which as to their miseries. various government in India at different time for different reason introduced debt relief/ waiver scheme. These came were used by the government as a quick Main to extricate farmers from their indebtedness, helping to restore their capacity to investment produce, in short to lessen the miseries of the farmer across India. The cost and benefit of such debt relief scheme are however a widely debated topic among economists. some economists argue that such scheme are extremely beneficial to the poor and marginalized farmers while other argue that this schemes add to the fiscal burden to the government, others believe that these schemes add to the fiscal burden of the government,others believe that these scheme may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.

Questions:

Question: Can certainly of income for farmer in India is majorly causesd by_______( irregular rainfall/ an availability of loans.)
Answer: Irregular rainfall

Question: Some economists argue that debt waiver schemes are extremely beneficial to the poor and marginalized farmers, as these schemes reduce the burden of_________ (indebtedness/personal expenditure)
Answer: Indebtedness

Question: The rural banking structure in India consists of a set of multi agency institutions_________(Regional Rural Banks/Small industries development bank of India) is expected to dispense credit at cheaper rates for agricultural purposes to farmers.
Answer: Regional Rural Banks

Question: ___________(Regional Rural Banks/Land Development Banks) is the most prominent body responsible for providing loans for long term land development.
Answer: Land Development Banks