Get the most accurate RBSE Solutions for Class 11 Economics Chapter 17 Agricultural Development here. Updated for the 2026-27 academic session, these solutions are based on the latest RBSE textbooks for Class 11 Economics. Our expert-created answers for Class 11 Economics are available for free download in PDF format.
Detailed Chapter 17 Agricultural Development RBSE Solutions for Class 11 Economics
For Class 11 students, solving RBSE textbook questions is the most effective way to build a strong conceptual foundation. Our Class 11 Economics solutions follow a detailed, step-by-step approach to ensure you understand the logic behind every answer. Practicing these Chapter 17 Agricultural Development solutions will improve your exam performance.
Class 11 Economics Chapter 17 Agricultural Development RBSE Solutions PDF
Question 1. The main food grain crop of India, is
(a) Rice
(b) Wheat
(c) Barley
(d) Maize
Answer: (a) Rice
In simple words: Rice is the most important food crop grown in India. It is a staple food for many people across the country.
đ¯ Exam Tip: Remember that rice is a major staple crop in India, especially in the southern and eastern parts, due to suitable climatic conditions.
Question 2. In which five year plan was National Food Security mission launched?
(a)
đ¯ Exam Tip: When faced with a question about specific government initiatives, try to recall the historical context of India's five-year plans.
Question 3. Green Revolution was adopted in India through
(a) Rabi crop of 1965
(b) Rabi crop of 1966
(c) Kharif crop of 1966
(d) Kharif crop of 1965
Answer: (c) Kharif crop of 1966
In simple words: The Green Revolution began in India with the Kharif crops planted in 1966. This marked the start of using new farming methods to grow more food.
đ¯ Exam Tip: The year and crop season of the Green Revolution's start are key facts; associate "Kharif 1966" with its beginning in India.
Question 4. Which of the following is not a commercial crop
(a) Jute
(b) Cotton
(c) Sugarcane
(d) Rice
Answer: (d) Rice
In simple words: Rice is mainly grown for people to eat as a food crop, not usually to sell for profit like jute, cotton, or sugarcane.
đ¯ Exam Tip: Differentiate between food crops (grown primarily for consumption) and commercial/cash crops (grown primarily for sale). Rice is a primary food crop.
Question 5. NABARD was established in
(a) July, 1988
(b) July, 1982
(c) July, 1984
(d) July, 1986
Answer: (b) July, 1982
In simple words: NABARD, a bank that helps with agriculture and rural development, was started in July 1982.
đ¯ Exam Tip: Remember the establishment year of key financial institutions like NABARD for questions on agricultural finance.
Question 6. The state to use the most fertilizers per hectare is
(a) Haryana
đ¯ Exam Tip: Keep up-to-date with economic data, as rankings for agricultural indicators can change over time.
Question 7. Which of the following is not a non-institutional source of agricultural finance?
(a) Merchant
(b) Relative
(c) Moneylender
(d) Cooperative Societies
Answer: (d) Cooperative Societies
In simple words: Cooperative societies are proper organizations that give loans, so they are a formal or 'institutional' way to get money, unlike merchants or relatives.
đ¯ Exam Tip: Understand the difference between institutional (formal, organized) and non-institutional (informal, unorganized) sources of credit in agriculture.
Question 8. When were regional rural banks established?
(a) October 2,1975
(b) October 2,1976
(c) October 2,1977
(d) October 2,1978
Answer: (a) October 2,1975
In simple words: Regional rural banks, which serve villages, were started on October 2, 1975.
đ¯ Exam Tip: The establishment date of Regional Rural Banks (RRBs) is an important fact for questions on rural finance and development.
RBSE Class 11 Economics Chapter 17 Very Short Answer Type Questions
Question 1. What percentage of India's population is dependent on agriculture?
Answer: 65% of India's population relies on agriculture for their livelihood.
In simple words: A large majority, 65 out of every 100 people in India, depend on farming to live.
đ¯ Exam Tip: This percentage highlights the significant role of agriculture in India's economy and employment.
Question 2. What was per hectare productivity of food grains in 2013-14?
Answer: In the years 2013-14, the amount of food grains produced per hectare was 2101 kg.
In simple words: In 2013-14, farmers grew about 2101 kilograms of food grains on one hectare of land.
đ¯ Exam Tip: Productivity data helps gauge efficiency in agriculture; noting trends over time can be useful for analysis.
Question 5. In which states irrigation is done through ponds?
Answer: Pond irrigation is commonly used in southern Indian states like Tamil Nadu, Andhra Pradesh, Kerala, and Karnataka.
In simple words: Southern states like Tamil Nadu, Andhra Pradesh, Kerala, and Karnataka use ponds to water their farms.
đ¯ Exam Tip: Remember specific examples of states for different irrigation methods to illustrate geographical patterns.
Question 6. Who is known as Father of Green Revolution in India?
Answer: Dr. M.S. Swaminathan is recognized as the Father of the Green Revolution in India. He played a crucial role in introducing high-yielding varieties of crops.
In simple words: Dr. M.S. Swaminathan is called the father of the Green Revolution in India because he helped bring new farming ideas that grew a lot more food.
đ¯ Exam Tip: Always associate Dr. M.S. Swaminathan with India's Green Revolution and his contribution to food security.
Question 7. What is "Local Banker"?
Answer: "Local Bankers" refers to informal lenders such as merchants, moneylenders, relatives, and landlords who provide financial assistance in rural areas.
In simple words: Local bankers are people like shopkeepers or moneylenders in villages who lend money informally.
đ¯ Exam Tip: This term describes non-institutional sources of credit, often with less formal procedures and higher interest rates.
Question 8. Write the full form of NABARD.
Answer: The full form of NABARD is National Bank for Agricultural and Rural Development. This institution helps in developing rural areas and agriculture.
In simple words: NABARD means National Bank for Agricultural and Rural Development.
đ¯ Exam Tip: Knowing the full forms of acronyms like NABARD is essential for understanding their purpose and role.
Question 9. What is called as "rainbow revolution"?
Answer: The "rainbow revolution" is another name for the Second Green Revolution. It involves a holistic approach to agricultural development, covering various crops and sectors.
In simple words: The "rainbow revolution" means the Second Green Revolution, which aimed to improve many different areas of farming.
đ¯ Exam Tip: The term "rainbow revolution" symbolizes a comprehensive and diverse approach to agricultural growth, beyond just food grains.
Question 10. What was the main theme of the conference that was held in 2006 for discussion on second green revolution?
đ¯ Exam Tip: Knowing the themes of major agricultural conferences can highlight the government's focus and future strategies in the sector.
Question 8. Write a note on pollution- free agricultural development.
Answer: Pollution-free agricultural development, also known as the Second Green Revolution, focuses on using eco-friendly resources and technology in farming. This approach was advocated by former President of India, APJ Abdul Kalam, to ensure sustainable growth. The steps taken include:
1. Using bio-fertilizers instead of chemical fertilizers.
2. Using bio-pesticides instead of chemical pesticides.
3. Adopting balanced and appropriate ways to conserve water and grow crops.
In simple words: Pollution-free farming means using nature-friendly methods like bio-fertilizers and less water, instead of chemicals, to grow crops without harming the environment.
đ¯ Exam Tip: Emphasize sustainable practices and eco-friendly technologies when discussing pollution-free agricultural development.
RBSE Class 11 Economics Chapter 17 Long Answer type Questions
Question 1. Write an article on the importance of agriculture in Indian economy.
Answer: Around 65% of India's population relies on agriculture for their livelihood. Agriculture plays a vital role in the Indian economy in several ways:
- Contribution of Agriculture in Employment: About 65% of India's workforce depends directly or indirectly on agriculture. It provides the main source of income for most people, including allied activities like fishing and animal husbandry.
- Importance of Agriculture in Industrial Development: Many major industries in India, such as tea, cotton textiles, jute, sugar, floriculture, and horticulture, depend on agriculture for their raw materials.
- Importance of Agriculture in Foreign Trade: Agricultural products like tea, tobacco, spices, dry fruits, and oil seeds are major items among Indian exports. This helps India earn foreign currency and increases its foreign exchange reserves.
- Importance of Agriculture in Economic Planning: Agriculture is the main support for the transportation system, as most farm products are moved by rail and road. When crop yields are good, farmers have more money to spend, which boosts demand for industrial goods and encourages industrial growth.
In simple words: Farming is very important for India's economy because it gives jobs to most people, provides raw materials for factories, helps us earn money from exports, and supports our transport system.
đ¯ Exam Tip: When discussing the importance of agriculture, always categorize your points (e.g., employment, industry, trade, planning) to ensure a comprehensive answer.
Question 2. What is Green Revolution?
Answer: The Green Revolution placed special focus on using high-yielding varieties (HYV) of seeds. It achieved success in the Kharif crop of 1966 when these high-yielding seed varieties were first adopted. Mexico provided the initial high-yielding wheat seeds to India. Dr. M.S. Swaminathan is considered the Father of the Green Revolution in India, while Norman E. Borlaug is credited globally. The new strategy, based on HYV seeds and a complete package of farming methods, was divided into two stages in India:
- First Stage (Centralization): This stage mainly focused on wheat and rice. Wheat productivity increased very quickly during this time.
Success or Impact of Green Revolution:
1. Wheat productivity per hectare rose significantly, from 851 kg to 3075 kg, leading to it being called the "Wheat Revolution".
2. The use of fertilizers greatly increased.
3. Irrigation facilities expanded rapidly.
4. Machines and modern equipment were widely adopted in agriculture, transforming traditional farming methods.
5. The use of pesticides and high-yielding seeds grew extensively.
Setbacks of Green Revolution:
1. The Green Revolution mainly benefited wheat and had less impact on coarse grains, pulses, and oil seeds.
2. Its effects were limited to specific regions, causing uneven agricultural development across the country.
3. The issue of agricultural finance remained a problem, especially in the Indian economy.
4. Only educated and wealthier farmers could fully benefit from the new farming strategies.
5. The Green Revolution also had environmental consequences, such as increased soil salinity, erosion, waterlogging, and lower groundwater levels.
6. Only large farmers benefited from government agricultural subsidies.
Thus, the Green Revolution's effects were mostly limited to certain regions and benefited larger farmers more.
In simple words: The Green Revolution was a big change in farming using special seeds and new methods to grow much more food, especially wheat. It helped India produce more food but also caused some environmental problems and mostly benefited richer farmers.
đ¯ Exam Tip: For Green Revolution questions, always describe its main features (HYV seeds, mechanization), its successes (increased production), and its drawbacks (regional disparities, ecological impacts).
Question 3. What are agricultural inputs? Discuss the major agricultural inputs.
Answer: Agricultural inputs are the resources used in farming to grow crops and raise livestock. The amount of food produced and how well it is grown depend on these inputs. Using them correctly can quickly increase agricultural output and productivity. Some major agricultural inputs are:
i. Fertilizers: The ideal ratio for consuming nitrogen, phosphorus, and potassium (N:P:K) fertilizers is 4:2:1. However, in India, this ratio was 8.2:3.2:1 in 2013-14, showing an imbalance. The government provides fertilizers to farmers at a subsidized rate, which continuously increases the burden of subsidies.
ii. Irrigation: Only 44.9% of agricultural land in India has irrigation facilities, with the remaining 53.1% dependent on rainfall. India's irrigated area grew from 22.6 million hectares in 1950-51 to 113.2 million hectares in 2011-12.
iii. High Yielding Variety of Seeds: A strong emphasis was placed on using high-yielding varieties (HYV) of seeds during the Green Revolution. The government had aimed to introduce these seeds from the start of the planning period, but significant adoption happened with the Kharif crop of 1966. This program was implemented as a package, requiring adequate irrigation and fertilizers. HYV wheat seeds were imported from Mexico, leading to great success in wheat production. However, it had less impact on crops like rice, barley, millets, and maize, and struggled to reach pulses, oilseeds, vegetables, and fruits.
iv. Pesticides and Insecticides: About 10-15% of crops are lost each year due to pests and diseases, making crop protection vital. Pesticides are most used for paddy and cotton crops in India. Their use increased from 24.3 thousand tons in 1970-71 to 50.58 thousand tons in 2011-12.
v. Mechanization of Agriculture: The use of modern machines and equipment in farming greatly increased, transforming traditional agricultural methods into more modern ones.
vi. Conclusion: With proper use and management of these agricultural inputs, significant achievements can be made in the sector.
In simple words: Agricultural inputs are things like seeds, water, fertilizers, and machines that farmers use. Using these inputs well helps grow more food faster. Important inputs include fertilizers for soil, irrigation for water, special seeds that yield more, pesticides to protect crops, and machines for farming tasks.
đ¯ Exam Tip: When discussing agricultural inputs, cover key areas like seeds, fertilizers, irrigation, pest control, and machinery, explaining how each contributes to productivity.
Question. Elucidate the role of NABARD in rural credit system.
Answer: The National Bank for Agricultural and Rural Development (NABARD) was established in July 1982 based on the recommendations of the CRAFICARD committee, chaired by B. Shivaraman. The Agricultural Refinance Corporation, set up in 1963 by the Reserve Bank of India, was renamed the Agricultural Refinance and Development Corporation (ARDC) in 1975. NABARD is considered the highest institution for rural credit and plays a crucial role in India's rural credit system:
1. It provides long-term loans to state cooperative banks, regional rural banks, and commercial banks.
2. It offers long-term loans to state governments to support cooperative credit institutions.
3. NABARD is responsible for coordinating, integrating, and controlling all functions related to agricultural development programs.
In simple words: NABARD is a top bank that helps with money for farming and villages. It gives long loans to other banks and state governments and also looks after all activities related to helping agriculture grow.
đ¯ Exam Tip: Highlight NABARD's apex role, its refinance function, and its broader development responsibilities in the rural credit structure.
Question 1. The contribution of agriculture in National Income of the United States of America is
(a) 2-3 per cent
(b) 3-4 per cent
(c) 5-6 per cent
(d) 7 per cent
Answer: (a) 2-3 per cent
In simple words: In the USA, farming contributes a very small amount, only 2-3 percent, to the total national income.
đ¯ Exam Tip: Compare the contribution of agriculture in developed economies (low percentage) versus developing economies (higher percentage).
Question 2. Which industry is fully dependent upon agriculture?
(a) Rice beating
(b) Processing of fertilizers
(c) Making of soaps
(d) None of the options
Answer: (b) Processing of fertilizers
In simple words: The fertilizer industry relies entirely on agriculture because its products are directly used for farming.
đ¯ Exam Tip: Identify industries that use agricultural raw materials as their primary input to determine full dependence.
Question 3. How much was the maximum lagaan proposed in the first five year plan in context to total production?
(a) 1/5 or 1/4
(b) 1/6 or 1/7
(c) 1/3 or 1/4
(d) None of the options
Answer: (a) 1/5 or 1/4
In simple words: The first five-year plan suggested that the highest land rent (lagaan) should be between 1/5th and 1/4th of the total crop produced.
đ¯ Exam Tip: Remember key figures and policies from India's Five-Year Plans, especially those related to land reforms and agricultural policy.
Question 4. Which of the following is not a commercial crop
(a) Jute
(b) Cotton
(c) Sugarcane
(d) Rice
Answer: (d) Rice
In simple words: Rice is mainly grown for food, not typically as a commercial crop like jute, cotton, or sugarcane, which are often sold for industrial use.
đ¯ Exam Tip: Distinguish between food crops (grown for direct consumption) and commercial crops (grown for sale or industrial processing) to answer such questions correctly.
Question 5. How much was the production of wheat in kilogram per hectare in 2013-14?
(a) 2020
(b)2136
(c)2424
(d) None of these
Answer: (c)2424
In simple words: In 2013-14, about 2424 kilograms of wheat were produced from each hectare of land.
đ¯ Exam Tip: Remember specific statistical figures like productivity per hectare for key crops, as they are often asked in objective type questions.
RBSE Class 11 Economics Chapter 17 Very Short Answer Type Questions
Question 1. Which industries are directly dependent upon agriculture?
Answer: Many industries rely directly on agriculture for their raw materials. These include the tea industry, cotton textile industry, jute industry, sugar industry, floriculture (flower farming), and horticulture (fruit and vegetable farming) industries. They all depend on farm produce.
In simple words: Industries like tea, cotton, jute, sugar, and those making flowers and garden products all need agriculture to supply their basic materials.
đ¯ Exam Tip: When listing industries dependent on agriculture, provide a diverse range of examples (e.g., food, textiles, and other crops) to show comprehensive understanding.
Question 2. What are the major items exported to foreign countries?
Answer: India exports several agricultural items to other countries. The main ones include tea, tobacco, hot spices, dry fruits, and oil seeds. These products are important for foreign trade.
In simple words: India sells things like tea, tobacco, spices, dry fruits, and oil seeds to other countries.
đ¯ Exam Tip: Focus on agricultural products that are significant foreign exchange earners for India when answering questions about exports.
Question 3. What measures were taken under land reforms?
Answer: Land reforms in India involved several key measures:
1. Abolition of Intermediaries: The systems of Zamindars, Ryotwari, and Mahalwari were ended, creating a direct link between farmers and the government.
2. Regulation of Tenancy: Rules were made to ensure fair rent (lagaan), typically not exceeding 1/5 to 1/4 of total production.
3. Consolidation of Holdings: Scattered small land plots were combined into larger, single plots for farmers, making farming more efficient.
4. Ceiling on Land Holdings: A maximum limit was set on how much agricultural land an individual or family could own.
In simple words: Land reforms focused on ending middlemen, setting fair rent for tenants, combining small land pieces, and limiting how much land one person could own.
đ¯ Exam Tip: When discussing land reforms, always mention the key objectives like abolishing intermediaries, tenancy regulation, and land consolidation as these are core components.
Question 5. Irrigation by canals is done in which states?
Answer: Canal irrigation is mainly practiced in states like Punjab, Haryana, Uttar Pradesh, Bihar, and some parts of western India. These regions benefit from an extensive network of canals.
In simple words: Canals are used for irrigation mostly in Punjab, Haryana, Uttar Pradesh, Bihar, and western India.
đ¯ Exam Tip: Remember the major states associated with each irrigation method (e.g., canals, ponds, wells) as questions often ask about specific regions.
Question 6. What was the contribution of ponds in the net irrigated area in 2010-20.11?
Answer: In the years 2010-2011, ponds contributed about 3.1 per cent to the total net irrigated area in India. This shows their role in irrigation, especially in certain regions.
In simple words: Ponds provided water for 3.1% of the total irrigated land in India during 2010-2011.
đ¯ Exam Tip: Note the specific percentage contributions of different irrigation sources as these statistics can be important for descriptive answers.
Question 7. Write the name of high yielding variety of kharif in India in 1966.
Answer: In 1966, a significant high-yielding variety of Kharif crop introduced in India was Taichung Native. This played a role in the early stages of the Green Revolution.
In simple words: The high-yielding Kharif crop variety in India in 1966 was called Taichung Native.
đ¯ Exam Tip: Identifying key crop varieties or specific agricultural innovations with their years helps demonstrate a detailed knowledge of agricultural history.
Question 8. Who is regarded as the father of green Revolution in context to the world?
Answer: The agricultural scientist Dr. Norman E. Borlaug is widely recognized as the father of the Green Revolution globally. His work on developing high-yielding wheat varieties greatly increased food production.
In simple words: Dr. Norman E. Borlaug is known as the father of the Green Revolution worldwide.
đ¯ Exam Tip: Remember the key figures associated with major agricultural movements like the Green Revolution, both nationally and internationally.
Question 9. Which country firstly adopted the concept of micro finance institutions?
Answer: Bangladesh was the first country to adopt the concept of microfinance institutions. This approach helps provide small loans and financial services to low-income individuals.
In simple words: Bangladesh was the first country to start using microfinance institutions.
đ¯ Exam Tip: Knowing the origins of important economic concepts like microfinance shows a broader understanding of development economics.
Question 10. Where were the high yielding seeds varieties firstly used?
Answer: High-yielding seed varieties were first used in Mexico and Taiwan. These initial successes demonstrated their potential to increase agricultural productivity globally.
In simple words: High-yielding seeds were first used in Mexico and Taiwan.
đ¯ Exam Tip: Understand the international context and early adoption locations of agricultural innovations like HYV seeds.
Question 12. Why the agricultural sector could not develop before independence?
Answer: Before India gained independence, the agricultural sector struggled to develop because of the colonial policies of the British Government. The British aimed to make India a supplier of raw materials for their industries and a market for their finished goods from England. This approach prevented proper development within India's own agricultural system.
In simple words: Before independence, agriculture didn't grow because British rules focused on getting raw materials from India and selling their own goods here, instead of developing Indian farming.
đ¯ Exam Tip: When discussing pre-independence economic conditions, always link them back to British colonial policies and their impact on different sectors.
Question 13. State the contribution of agriculture in national income.
Answer: According to the Central Statistical Organization, agriculture played a major role in India's economy after independence. In 1950-51, agriculture contributed 56.6 per cent to the gross domestic product (GDP). However, this share gradually declined to 15.2 per cent by the Eleventh Five-Year Plan period, showing a shift in economic structure.
In simple words: Agriculture contributed a lot to India's income right after independence (56.6% in 1950-51), but this share dropped to 15.2% by the Eleventh Plan.
đ¯ Exam Tip: When quoting statistical contributions, ensure accuracy in percentages and the years or plan periods mentioned to score well.
Question 14. What is the importance of agriculture in foreign trade?
Answer: Agricultural products are very important for India's foreign trade. Items like tea, tobacco, hot spices, dry fruits, and oil seeds are major exports. Selling these goods to other countries helps India earn foreign currency, which in turn increases the country's foreign exchange reserves, strengthening the economy.
In simple words: Agriculture helps India earn money from other countries by exporting products like tea, spices, and dry fruits, which adds to our foreign currency.
đ¯ Exam Tip: Focus on agricultural exports that contribute significantly to foreign exchange earnings when explaining agriculture's role in foreign trade.
Question 15. What were the reasons of backwardness of agriculture?
Answer: The backwardness of agriculture was mainly due to the land revenue policies of the British Government, such as the Zamindari, Ryotwari, and Mahalwari systems. These policies forced farmers into poverty, discouraging any agricultural development and making the sector weak.
In simple words: British land policies like Zamindari made farmers poor, which stopped agriculture from growing and kept it backward.
đ¯ Exam Tip: Always attribute the backwardness of pre-independence agriculture to specific British land revenue policies and their socio-economic impact.
Question 16. What do you mean by Tenancy System?
Answer: The tenancy system is an agricultural production method where landowners provide their land to tenants. Often, the landowner also contributes some capital for operations and management, and the tenant then leases the land to cultivate it. This system defines how land is used and managed between owners and cultivators.
In simple words: Tenancy is when a landowner lets another person, called a tenant, farm their land, often with the owner also helping with some money or management.
đ¯ Exam Tip: When defining a tenancy system, clearly state the roles of both the landowner and the tenant, and how land is managed and capital is contributed.
Question 17. How were farmers exploited by non- Institutional sources?
Answer: Farmers were often exploited by non-institutional lenders in several ways. These lenders would charge very high interest rates and keep no proper written records of loans. They would sometimes cheat farmers by taking fake signatures on blank papers. If farmers couldn't repay their debts, they were forced to work as "haali" (bonded laborers) or even lost ownership of their land. This exploitation was a common practice by zamindars and moneylenders.
In simple words: Moneylenders exploited farmers by charging high interest, using fake papers, forcing them into labor, or taking their land if debts weren't paid.
đ¯ Exam Tip: When explaining exploitation by non-institutional sources, list specific practices like high interest, lack of records, and forced labor or land seizure.
Question 18. What do you mean by consolidation?
Answer: Consolidation in agriculture means giving farmers a single, continuous piece of land in their village instead of many small, scattered plots in different places. This makes farming easier and more efficient, as all their land is in one location.
In simple words: Consolidation means giving farmers one big piece of land instead of many small, spread-out pieces.
đ¯ Exam Tip: Define consolidation clearly, emphasizing the conversion of scattered plots into a single, cohesive holding to improve farming efficiency.
Question 19. What is the relationship of growing population with low agriculture production?
Answer: As the population continues to grow rapidly, it puts a heavy burden on the agricultural sector. Even today, a large part (about three-quarters) of the population still depends on agriculture and related activities in rural areas for their livelihood. This increasing demand from a growing population, combined with traditional farming methods, leads to low agricultural production per person.
In simple words: A growing population relies heavily on agriculture, and with old farming ways, this leads to less food being produced per person.
đ¯ Exam Tip: Explain how population pressure affects agricultural production by increasing demand while often hindering per capita productivity due to resource strain.
Question 20. What is the structure of holdings in India and what is its effect on the agriculture?
Answer: In India, the structure of land holdings is mostly small. This means that farmers own many small, fragmented plots of land instead of one large continuous farm. Because of these small and scattered holdings, the costs of farming are higher, but the overall production remains low. About 8% of all land holdings in India are considered marginal holdings (very small).
In simple words: India has many small, scattered land plots, which makes farming expensive and leads to low overall production.
đ¯ Exam Tip: Highlight how fragmented land holdings increase costs and decrease efficiency, leading to lower agricultural productivity in India.
Question 21. How is irrigation responsible for lower productivity of agriculture in India?
Answer: Even many years after independence, India still faces challenges with irrigation. Only 44.9% of agricultural land has irrigation facilities, while the remaining 53.1% relies on rainfall. This significant dependence on unpredictable rains means that India lacks enough irrigation facilities, which is a major reason for low agricultural productivity.
In simple words: Because most farmland still depends on rain and lacks proper irrigation, India's agricultural output remains low.
đ¯ Exam Tip: Connect the lack of sufficient irrigation facilities and over-reliance on rainfall directly to low agricultural productivity in India.
Question 22. What measures were taken to Improve the agriculture production in the eleventh five year plan?
Answer: In the Eleventh Five-Year Plan, to improve agricultural production, the government focused on several key measures. These included implementing land reforms, ensuring proper use of agricultural inputs like quality seeds and fertilizers, providing easier access to credit, establishing efficient distribution facilities for farm produce, and setting fair price policies for crops. These steps aimed to boost both production and farmer welfare.
In simple words: The Eleventh Plan focused on land reforms, better farm inputs, easier loans, good distribution, and fair crop prices to improve agriculture.
đ¯ Exam Tip: When discussing plans for agricultural improvement, include a range of measures like land reforms, input supply, credit, and price policies.
Question 24. What do you mean by agricultural inputs?
Answer: Agricultural inputs are the various resources and materials used in farming to grow crops and raise livestock. Key agricultural inputs include irrigation (water supply), fertilizers (nutrients for soil), high-yielding seeds (improved crop varieties), and pesticides (chemicals to control pests). These inputs are essential for increasing agricultural productivity and production.
In simple words: Agricultural inputs are things like water for irrigation, fertilizers, better seeds, and pesticides that farmers use to grow more crops.
đ¯ Exam Tip: List the common and essential agricultural inputs directly when asked for their definition, as they form the foundation of modern farming.
Question 25. What do you mean by small irrigation projects?
Answer: Small irrigation projects are those where the agricultural command area, meaning the total land that can be irrigated by the project, is less than 2000 hectares. These projects are typically local and serve a smaller farming area.
In simple words: Small irrigation projects water farm areas that are smaller than 2000 hectares.
đ¯ Exam Tip: The defining characteristic of small irrigation projects is the size of the command area; ensure to include this specific numerical threshold.
Question 26. What do you mean by medium irrigation projects?
Answer: Medium irrigation projects are those where the agricultural command area, or the total land irrigated by the project, falls between 2000 hectares and 10,000 hectares. These projects are larger than small ones but not as extensive as major projects.
In simple words: Medium irrigation projects water farm areas that are between 2000 and 10,000 hectares.
đ¯ Exam Tip: Distinguish medium projects from small and large ones by their specific command area range (2000-10,000 hectares).
Question 27. What do you mean by large irrigation projects?
Answer: Large irrigation projects are extensive schemes where the agricultural command area, which is the total land that can be irrigated, is greater than 10,000 hectares. These projects are designed to serve very large agricultural regions.
In simple words: Large irrigation projects water farm areas that are bigger than 10,000 hectares.
đ¯ Exam Tip: Clearly state the command area threshold (over 10,000 hectares) as the key identifier for large irrigation projects.
Question 28. In which states is irrigation done through ponds?
Answer: Irrigation through ponds is commonly practiced in the southern states of India. Key states where this method is used include Tamil Nadu, Andhra Pradesh, Kerala, and Karnataka. Ponds serve as important water sources for agriculture in these regions.
In simple words: Ponds are used for irrigation in southern Indian states like Tamil Nadu, Andhra Pradesh, Kerala, and Karnataka.
đ¯ Exam Tip: When listing states for specific irrigation methods, try to recall a few prominent examples to support your answer effectively.
Question 30. Provide data regarding the use of high yielding variety of seeds.
Answer: The use of high-yielding variety (HYV) seeds in India saw significant growth over time. Initially, HYV seeds were used on 18.90 lakh hectares of land in 1966-67. This usage dramatically increased to 783.50 lakh hectares by the period of 1998-99, showing a huge expansion in their adoption and impact on agriculture.
In simple words: High-yielding seeds were used on 18.90 lakh hectares in 1966-67, and this grew to 783.50 lakh hectares by 1998-99.
đ¯ Exam Tip: For data-based questions, provide specific figures and years to demonstrate precise knowledge of agricultural trends.
Question 31. What was the growth recorded in use of pesticides after the green revolution?
Answer: After the Green Revolution, there was a notable increase in the use of pesticides. In 1970-71, the consumption of pesticides was 24.3 thousand tons. This figure more than doubled, rising to 50.58 thousand tons by 2011-12, indicating a growing reliance on chemical pest control in agriculture.
In simple words: After the Green Revolution, pesticide use jumped from 24.3 thousand tons in 1970-71 to 50.58 thousand tons in 2011-12.
đ¯ Exam Tip: Quantify growth using specific numbers and time periods when answering questions about trends post-Green Revolution.
Question 32. How traditional agriculture done in India in earlier times?
Answer: In earlier times, traditional agriculture in India relied heavily on simple tools and animal power. Farmers used bullock carts, oxen, and horses for various farm tasks. Irrigation often depended on natural sources like ponds. This traditional approach meant that both the overall production and the yield per unit of land (productivity) were relatively low.
In simple words: Old Indian farming used bullock carts, oxen, horses, and ponds, leading to less production and productivity.
đ¯ Exam Tip: When describing traditional agriculture, mention specific tools, animals, and irrigation methods, along with their impact on productivity.
Question 33. What is mechanization?
Answer: Mechanization in agriculture refers to the increasing use of machines and advanced equipment for various farming activities. This shift from manual labor and traditional tools to modern machinery significantly changes the way agriculture is practiced, transforming it into a more efficient and modern form. For example, using tractors instead of animals for plowing fields.
In simple words: Mechanization means using machines and modern tools in farming to change it from old ways to new, more efficient ways.
đ¯ Exam Tip: Define mechanization by contrasting it with traditional methods and highlighting its role in modernizing agriculture through machine use.
Question 34. When was the green revolution started?
Answer: The Green Revolution in India began with the Kharif crop season of 1966. At this time, the then Prime Minister of India, Mrs. Indira Gandhi, and the agricultural minister, Mr. C. Subramaniam, played key roles in promoting the adoption of this new agricultural strategy to boost food production.
In simple words: The Green Revolution in India began in 1966 with the Kharif crop, pushed by Prime Minister Indira Gandhi and Minister C. Subramaniam.
đ¯ Exam Tip: Remember the specific year (1966) and the key figures associated with the launch of the Green Revolution in India.
Question 36. Agricultural scientist Dr. M.S. Swaminathan developed which new wheat varieties?
Answer: Agricultural scientist Dr. M.S. Swaminathan developed new varieties of wheat known as Sharbati Sona and Pusa Larma. He achieved this by improving upon Mexican wheat seeds, addressing their drawbacks to create strains better suited for Indian conditions.
In simple words: Dr. M.S. Swaminathan created new wheat types called Sharbati Sona and Pusa Larma by fixing problems in Mexican wheat seeds.
đ¯ Exam Tip: Name the specific wheat varieties developed by Dr. M.S. Swaminathan to show detailed knowledge of his contribution to the Green Revolution.
Question 37. Who was awarded the Nobel Prize for peace in 1970?
Answer: Norman E. Borlaug, an American agronomist, was awarded the Nobel Peace Prize in 1970 for his significant contributions to the Green Revolution. His work in developing high-yielding, disease-resistant wheat varieties helped alleviate global hunger.
In simple words: Norman E. Borlaug received the Nobel Peace Prize in 1970 for his work on food production.
đ¯ Exam Tip: Correctly identify Nobel laureates and their specific contributions, especially those related to major global developments like the Green Revolution.
Question 38. The regional expansion of green revolution during the first phase was limited to which states?
Answer: During its initial phase, the regional expansion of the Green Revolution was limited to certain states in India. These primarily included Punjab, Haryana, and western Uttar Pradesh. These regions benefited most from the new agricultural strategies, leading to significant increases in crop yields there.
In simple words: In the first stage, the Green Revolution mainly spread in Punjab, Haryana, and western Uttar Pradesh.
đ¯ Exam Tip: Identify the specific regions or states that were the primary beneficiaries of the Green Revolution's first phase to demonstrate a clear understanding of its initial impact.
Question 39. Why is the first phase of green revolution called the "centralized phase"?
Answer: The first phase of the Green Revolution is called the "centralized phase" because its focus was largely concentrated on specific crops and regions. It primarily targeted wheat and rice production, leading to rapid increases in wheat productivity. This phase was mainly successful in Punjab, Haryana, and western Uttar Pradesh, making its benefits geographically concentrated.
In simple words: It's called "centralized" because it focused mainly on wheat and rice, and only saw big success in a few states like Punjab.
đ¯ Exam Tip: Explain "centralized" by referring to the limited scope of crops (wheat/rice) and regions (Punjab, Haryana, Western UP) that saw significant impact in the initial phase.
Question 40. Why is green revolution called the 'wheat revolution'?
Answer: The Green Revolution is also called the 'wheat revolution' because of the dramatic increase in wheat productivity. During this period, the yield of wheat per hectare surged from 851 kg to an impressive 3075 kg. This remarkable growth in wheat production was a defining feature of the revolution.
In simple words: The Green Revolution is called the 'wheat revolution' because wheat production per hectare increased hugely, from 851 kg to 3075 kg.
đ¯ Exam Tip: Provide specific data points for wheat productivity increase to support the claim that it was a 'wheat revolution'.
Question 41. How did the use of fertilizers increase during the green revolution?
Answer: During the Green Revolution, there was a significant emphasis on using chemical fertilizers to boost crop yields. The standard ratio of consumption for Nitrogen (N), Phosphorous (P), and Potash (K) fertilizers is ideally 4:2:1. However, in India, by 2013-14, this ratio was 8.2:3.2:1, showing an imbalance but also a substantial increase in overall fertilizer consumption. The government also subsidized fertilizers, making them more accessible to farmers.
In simple words: The Green Revolution led to a big rise in chemical fertilizer use, although the balance of nutrients like N, P, K became uneven (8.2:3.2:1 instead of 4:2:1).
đ¯ Exam Tip: When discussing fertilizer use, mention the NPK ratio and any imbalance to show a deeper understanding of input management.
Question 43. Explain the division of agricultural finance.
Answer: Agricultural finance can be broadly divided into two main categories based on different criteria:
**I. On the basis of time (Tenure of loan):**
- **Short Term Loan:** These loans are for less than 15 months and cover immediate needs like seeds and fertilizers.
- **Medium Term Loan:** These loans range from 15 months to 5 years and are for things like land improvement or buying equipment.
- **Long Term Loan:** These loans are for more than 5 years, used for major investments such as leveling land, digging wells, or buying heavy machinery.
**II. On the basis of industries (Purpose of loan):**
- **Productive Loan:** These loans are given for activities that directly increase agricultural production, like buying fertilizers or seeds.
- **Unproductive Loan:** These loans are for non-agricultural purposes, such as wedding expenses or social customs, which do not directly boost farm output.
In simple words: Loans for farming are split by how long you have to pay them back (short, medium, long term) and by what you use the money for (to grow crops or for other personal needs).
đ¯ Exam Tip: When explaining agricultural finance divisions, always categorize clearly by both time (tenure) and purpose (productive/unproductive) with examples for each type.
RBSE Class 11 Economics Chapter 17 Short Answer Type Questions
Question 1. Explain the role of employment in agriculture.
Answer: Agriculture plays a crucial role in providing employment in India. Approximately 65% of India's working population directly or indirectly depends on agriculture for their livelihood. Farming and related activities like fish farming, poultry, and animal husbandry offer significant job opportunities. However, the average income in the agricultural sector is generally lower compared to non-agricultural sectors.
In simple words: Agriculture provides jobs for about 65% of India's workers, including farming and related activities, but the earnings are often less than in other jobs.
đ¯ Exam Tip: When discussing agriculture's role in employment, quantify its contribution (e.g., 65% of population) and mention allied activities for a complete picture.
Question 2. Explain the role of agriculture in industrial development.
Answer: Agriculture is very important for industrial development in India because many major industries rely on it for their raw materials. For example, the tea industry, cotton textile industry, jute industry, sugar industry, floriculture, and horticulture industries all directly depend on agricultural produce. Without agriculture, these industries would not have the necessary inputs to function and grow.
In simple words: Agriculture helps industries grow by providing them raw materials, like cotton for textiles, sugarcane for sugar, and tea leaves for the tea industry.
đ¯ Exam Tip: To illustrate agriculture's link to industrial development, cite specific industries (textile, sugar, tea) and explain how they use agricultural raw materials.
Question 4. What do you understand by tenancy reforms?
Answer: Tenancy reforms were introduced to improve the conditions for tenant farmers and regulate land ownership. These reforms aimed to:
* **Regulate Land Revenue:** Proposing that the maximum rent (lagaan) should not exceed 1/5 to 3/4 of the total crop production, making it fairer for tenants.
* **Protect Tenant Rights:** Various plans were made to protect tenants from interference, give them ownership rights, and ensure they kept some part of the land when ownership was returned to farmers.
* **Grant Ownership Rights:** Laws were passed in many states to give ownership rights to tenants, with significant success in states like West Bengal, Karnataka, and Kerala compared to others.
In simple words: Tenancy reforms were changes to make land rent fairer, protect tenant farmers' rights, and even give them land ownership, especially in some states.
đ¯ Exam Tip: List the three main components of tenancy reforms-rent regulation, tenant rights protection, and ownership transfer-along with specific states where they were successful.
Question 5. Explain the limit of fixation of holdings.
Answer: The government set a maximum limit on the amount of agricultural land an individual or family could own. This was done because land holdings in India were often fragmented into small, scattered plots due to legal, social, economic, and population-related reasons. To fix this, consolidation of holdings was implemented, which involved giving a farmer one continuous piece of land instead of many small ones. In 2010-11, land holding sizes and their percentages were categorized as follows:
| Holding Type | Hectare Range | Percentage |
|---|---|---|
| Small Holding | Between 1 hectare-2 hectare | 17.9 |
| Semi- Medium Holding | 2 hectare-4 hectare | 10.1 |
| Medium Holding | 4 hectare-10 hectare | 4.3 |
| Large Holding | More than 10 hectare | 0.8 |
In simple words: The government limited how much farmland people could own and worked to combine small, scattered plots into bigger, single ones. Land holdings were then classified into small, medium, and large categories based on their size.
đ¯ Exam Tip: When explaining land holding limits, clarify the reason (fragmentation), the solution (consolidation), and provide specific categories and percentages if available.
Question 6. Why did the sub-division and fragmantation of holdings take place in the country?
Answer: The sub-division and fragmentation of land holdings in India occurred due to a combination of reasons. These include various legal factors, social customs, economic pressures, and demographic reasons, such as increasing population and the breaking up of joint families. The laws of succession and common leasing practices also played a major role, along with the influence of moneylenders. All these factors led to land being divided into smaller and smaller parts over time.
In simple words: Land was divided into many small pieces due to laws, social traditions, money issues, population growth, and family splits.
đ¯ Exam Tip: Provide a comprehensive list of reasons-legal, social, economic, and demographic-to explain land fragmentation, as they all contribute to the problem.
Question 7. Explain the reorganization of agriculture.
Answer: The reorganization of agriculture primarily involved consolidating land holdings. To solve the problem of small, scattered farm plots, the government implemented policies to combine these fragmented pieces of land. This meant that instead of having fields spread across different locations in a village, a farmer would be given one consolidated block of farmland. This measure aimed to make agriculture more efficient and productive.
In simple words: Reorganizing agriculture meant combining small, scattered farmlands into single, larger plots for farmers to make farming better.
đ¯ Exam Tip: Focus on land consolidation as the core aspect of agricultural reorganization, explaining how it addresses fragmentation and improves efficiency.
Question 8. What effects were witnessed due to land reforms?
Answer: Land reforms aimed to consolidate scattered farmland into single plots for farmers, and while government-implemented laws achieved partial success, they also faced challenges. Zamindars often exploited loopholes in these laws, declaring themselves as farmers and challenging the reforms in court. This legal resistance and the delays in implementing the reforms allowed them to take advantage of the situation.
| Crop | Year 1950-51 | Year 2013-14 | ||
|---|---|---|---|---|
| Production | Productivity | Production | Productivity | |
| Rice | 206 | 668 | 1065 | 2424 |
| Wheat | 64 | 665 | 959 | 3075 |
| Barley | 55 | 353 | 54 | 925 |
| Millets | 26 | 288 | 92 | 1164 |
| Pulses | 84 | 441 | 193 | 764 |
| Food Grains | 508 | 552 | 2648 | 2101 |
| Oilseeds | 62 | 481 | 329 | 1153 |
| Cotton | 30 | 88 | 376 | 532 |
| Jute | 33 | 1043 | 110 | 2561 |
Remarks:
1. Production figures are in lakh tonnes, except for cotton and jute, which are in lac bales. (One bale of cotton equals 170 kg, and one bale of jute equals 180 kg.)
2. Source: 6th EYP, Government of India, Economic Survey 2014-15, Vol. II, Government of India, Economic Survey 1980-81.
In simple words: Land reforms tried to combine farmlands, but many landowners found ways around the laws, slowing down the changes and affecting overall production and productivity.
đ¯ Exam Tip: When evaluating the effects of reforms, discuss both the intended outcomes and any challenges or loopholes that hindered full success.
Question 10. State four reasons for lower agricultural productivity.
Answer: Here are four reasons for lower agricultural productivity in India:
1. **Population Pressure and Dependence:** A constantly growing population puts immense pressure on the agricultural sector. A large portion (about 3/4ths) of the population still relies on farming and related activities in rural areas for their livelihood, leading to smaller landholdings and reduced per capita output.
2. **Social and Traditional Factors:** Agricultural productivity is low partly due to the social environment in villages, which includes traditional beliefs, fatalism, superstitions, and a lack of knowledge about modern practices.
3. **Small Land Holdings:** The average size of land holdings in India is small and fragmented. This leads to higher investment costs per unit of land and lower overall productivity because efficient farming practices are harder to implement.
4. **Backward Technology:** Many farmers still use outdated agricultural technology. Modern irrigation facilities are not widely available, and dependence on rainfall is significant, contributing to lower yields.
In simple words: Low farm output comes from too many people depending on farming, old traditions, small land plots, and using outdated tools and methods.
đ¯ Exam Tip: When listing reasons for low productivity, cover a range of factors from demographic pressure and social issues to structural problems like land size and technological gaps.
Question 11. State the various modes of irrigation.
Answer: Irrigation methods in India can be divided into three main categories:
* **Irrigation through Canals:** Canals irrigate about 24.6% of the net irrigated land (as of 2010-11). This method is widely used in states like Punjab, Haryana, Uttar Pradesh, Bihar, and parts of South India.
* **Irrigation through Ponds:** Ponds contribute about 3.1% to the net irrigated area (as of 2011-12). This is a common method in southern states such as Tamil Nadu, Andhra Pradesh, Kerala, and Karnataka.
* **Irrigation through Wells:** Wells, including both surface wells and tube wells, are the most significant source of irrigation, contributing 61.4% to the net irrigated area (as of 2011-12). They are primarily used in Uttar Pradesh, Gujarat, Maharashtra, Madhya Pradesh, and Haryana.
In simple words: The main ways to water crops in India are through canals, ponds, and wells (both surface and tube wells), with wells being the most common.
đ¯ Exam Tip: When describing irrigation modes, mention the major types, their approximate percentage contribution, and the states where each method is prevalent.
Question 13. Explain the second phase of green revolution.
Answer: The second phase of the Green Revolution, often called the 'stage of decentralization,' expanded its focus beyond the initial phase. It included a broader group of five crops: wheat, rice, millets, barley, and maize. This program was implemented in more regions across the country, moving away from the concentrated success in a few states. There was also an increased emphasis on 'dry farming' techniques, making it suitable for areas with less irrigation.
In simple words: The second Green Revolution phase included more crops like wheat, rice, millets, barley, and maize, and it spread to more parts of the country, focusing on dry farming too.
đ¯ Exam Tip: Contrast the second phase with the first by mentioning the expanded range of crops and geographical decentralization, and the focus on dry farming.
Question 14. Explain four effects of green revolution.
Answer: Here are four significant effects of the Green Revolution:
1. **Increased Wheat Productivity:** The productivity of wheat per hectare rose sharply from 851 kg to 3075 kg, leading to it being termed the "wheat revolution."
2. **Boost in Mechanization:** The use of modern machines and equipment in agriculture increased significantly, transforming traditional farming into a more modern and efficient system.
3. **Increased Fertilizer Use:** There was a substantial rise in the application of fertilizers, improving soil fertility and crop yields.
4. **Expanded Irrigation Facilities:** Irrigation infrastructure expanded rapidly, ensuring more consistent water supply for crops and reducing reliance on monsoon rains.
In simple words: The Green Revolution led to more wheat production, more use of farm machines, more fertilizers, and better irrigation facilities.
đ¯ Exam Tip: When describing the effects, use strong action verbs (increased, boosted, expanded) and include specific examples or data points where possible, like the wheat productivity figures.
Question 15. State four setbacks of green revolution.
Answer: Here are four setbacks or limitations of the Green Revolution:
1. **Limited Crop Impact:** The revolution was most effective for wheat and, to some extent, rice. It had little impact on crude grains, pulses, and oilseeds, leading to uneven development across different crops.
2. **Regional Imbalance:** Its benefits were largely confined to specific regions, such as Punjab, Haryana, and western Uttar Pradesh, leading to unbalanced agricultural development in the country.
3. **Agricultural Finance Issues:** The problem of obtaining adequate agricultural finance continued to persist, especially for small and marginal farmers who struggled to access credit for modern inputs.
4. **Unequal Benefits:** Only educated and prosperous farmers, who could afford the new agricultural technology and inputs, were able to fully reap the benefits, widening the gap between rich and poor farmers.
In simple words: The Green Revolution mostly helped wheat and rice, in only a few rich regions, didn't solve money problems for farmers, and mainly benefited bigger, educated farmers.
đ¯ Exam Tip: When discussing setbacks, highlight issues of uneven development, limited crop scope, financial access, and inequality among farmers.
Question 17. How were farmers exploited by non- Institutional sources?
Answer: Farmers were often exploited by non-institutional lenders in several ways. These lenders would charge very high interest rates and keep no proper written records of loans. They would sometimes cheat farmers by taking fake signatures on blank papers. If farmers couldn't repay their debts, they were forced to work as "haali" (bonded laborers) or even lost ownership of their land. This exploitation was a common practice by zamindars and moneylenders.
In simple words: Moneylenders exploited farmers by charging high interest, using fake papers, forcing them into labor, or taking their land if debts weren't paid.
đ¯ Exam Tip: When explaining exploitation by non-institutional sources, list specific practices like high interest, lack of records, and forced labor or land seizure.
Question 18. State various boundations that were imposed on moneylenders in various states.
Answer: To curb exploitation, various states imposed restrictions on moneylenders. These included:
1. **Limiting Compound Interest:** Rules were put in place to prevent moneylenders from charging compound interest, which would quickly increase a farmer's debt.
2. **Regulating Recoverable Expenditures:** Moneylenders were only allowed to recover expenses explicitly mentioned and permitted by law, preventing them from adding hidden charges.
3. **Preventing False Promises:** Restrictions were imposed to stop moneylenders from making misleading or false promises beyond the basic loan terms.
4. **Enforcing State-Specific Provisions:** Rules and laws related to lending practices were enforced across different states to ensure fair treatment of farmers.
In simple words: States set rules for moneylenders to stop them from charging compound interest, making false promises, and recovering unfair costs.
đ¯ Exam Tip: When listing regulations on moneylenders, focus on measures that directly address common forms of exploitation, such as interest rates and transparency.
Question 19. Explain the Institutional sources of agricultural credit.
Answer: Institutional sources of agricultural credit developed gradually after India's independence, increasing their contribution to 60% by 2013 from 1951 levels. To boost institutional agricultural finance, the Reserve Bank of India established an advisory committee under Prof. B.S. Vyas, which made 99 suggestions, with 32 being accepted. Cooperative Credit Institutions began in India in 1904. Key institutional sources include:
* **Cooperative Credit Institutions:** These operate at village, district, and state levels (a three-tier system) and provide various types of loans for productive work.
* **Commercial Banks:** Following nationalization in 1969 and 1980, these banks were directed to allocate 40% of their loans to primary sectors, including agriculture. Their contribution to institutional credit was 71.50% in 2013-14.
* **Regional Rural Banks (RRBs):** Established in 1975, RRBs provide loans to small and marginal farmers, agricultural laborers, and artisans. Their contribution was 11.6% in 2013-14.
* **Land Development Banks (LDBs):** Established to promote land and agricultural development, providing services like deposits, business loans, and investment products.
* **NABARD (National Bank for Agricultural and Rural Development):** Established in 1982, it is the highest institution for rural credit, providing long-term loans to cooperative, rural, and commercial banks and overseeing related functions.
In simple words: Institutional farming loans come from cooperative banks (village, district, state), commercial banks, regional rural banks, land development banks, and NABARD, which all work to provide money for agriculture.
đ¯ Exam Tip: When explaining institutional credit, list the major types of banks (Cooperative, Commercial, RRBs, LDBs, NABARD) and briefly describe their roles and contributions.
Question 19. Explain the Institutional sources of agricultural credit.
Answer: Institutional financial support has steadily grown since India gained independence. The share of institutional finance in agricultural credit increased to 60% by 2013 from 1951. To boost institutional agricultural finance, the Reserve Bank of India set up an advisory committee under Prof. B.S. Vyas to study credit flow to agriculture. The committee submitted its report in 2004 with 99 suggestions, 32 of which were accepted by the Reserve Bank. Cooperative Credit Institutions began in India in 1904. Institutional sources include:
(i) Cooperative Credit Societies: These are organized in a three-tier system:
• Primary Credit Societies: These are established at the village level. A minimum of 10 people can form one in a village or region. They provide loans mainly for productive agricultural activities.
• Central Co-operative Banks: These banks operate at the district level. Their main role is to provide loans to Primary Credit Societies, acting as middlemen between state cooperative banks and local societies. The loans they provide typically have a duration of 1 to 3 years.
• State Co-operative Banks: These are set up at the state level. They offer long-term loans to district cooperative banks and also oversee their operations. The Reserve Bank funds these state cooperative banks.
(ii) Regional Rural Banks (RRBs): These banks provide loans to small and marginal farmers, agricultural laborers, and artisans. They were started on October 2, 1975, with the establishment of 5 such banks. Over time, their number grew to 196, but after mergers in 2005, it decreased to 56. In 2013-14, their total contribution to institutional credit was 11.6%.
(iii) Commercial Banks: A commercial bank accepts deposits, offers business loans, and provides basic investment products. 14 major banks were nationalized in July 1969 to increase their contribution to agricultural credit. Later, 6 more commercial banks were nationalized in 1980. Their contribution to institutional agricultural credit reached 71.50% in 2013-14.
(iv) National Bank For Agricultural and Rural Development (NABARD): NABARD offers long-term loans to state cooperative banks, regional rural banks, and commercial banks. It was established in July 1982 based on the recommendations of the CRAFICARD committee. NABARD is considered the highest institution for rural credit and has taken over all the functions related to agricultural refinancing and development from ARDC and the agricultural credit department of RBI.
In simple words: After independence, India set up special banks and groups to give loans to farmers for farming. These include cooperative banks, regional rural banks, bigger commercial banks, and NABARD, which is the main bank for supporting agriculture. These groups help farmers get money more easily for their farms.
đ¯ Exam Tip: When explaining institutional sources of credit, it's essential to list and briefly describe each major type, noting their role and structure.
Question 21. Explain Land Development Bank.
Answer: Land Development Banks (LDBs) offer various services like accepting deposits, providing business loans, and offering basic investment products. The main goal of LDBs is to promote land development, agricultural growth, and increase overall agricultural production.
In simple words: Land Development Banks help farmers improve their land and grow more crops by giving them loans and other financial services.
đ¯ Exam Tip: Focus on the primary purpose of LDBs, which is land improvement and agricultural production, when answering this question.
Question 22. Throw light on Regional Rural Banks.
Answer: Regional Rural Banks (RRBs) were established on October 2, 1975, starting with 5 banks. They provide loans to small and marginal farmers, agricultural laborers, and artisans. Over the years, their number grew to 196, but after mergers in 2005, it decreased to 56. In 2013-14, RRBs contributed 11.6% to the total institutional credit. A significant 90% of their total loans were given to the weaker sections in rural areas.
In simple words: Regional Rural Banks give loans to small farmers, farm workers, and village craftsmen. They help people in rural areas, especially those who are not very rich.
đ¯ Exam Tip: Remember key details like the establishment date, target beneficiaries (small farmers, laborers, artisans), and their contribution to rural credit.
Question 24. Explain the function of refinance performed by NABARD.
Answer: NABARD offers two types of refinancing support:
1. It provides long-term loans to state cooperative banks, regional rural banks, and commercial banks.
2. It also gives long-term loans to state governments to help cooperative credit institutions.
In simple words: NABARD gives money to other banks so those banks can lend to farmers for a long time. It also helps state governments fund local cooperative banks.
đ¯ Exam Tip: Highlight that NABARD's refinance function is about providing funds to other financial institutions, not directly to farmers, and that it supports both banks and state governments.
Question 25. Explain the term Rural Infrastructure Development Fund.
Answer: The Rural Infrastructure Development Fund (RIDF) was created by the Government in 1995-96 to fund ongoing rural infrastructure projects. NABARD maintains this fund. In 2015-16, about Rs 25,000 crore was provided through RIDF-XIX. This fund offers loans for various activities such as watershed development and the construction of village roads and bridges.
In simple words: The RIDF is a fund managed by NABARD to pay for building things like roads and water projects in villages. It helps make rural areas better.
đ¯ Exam Tip: Remember that RIDF focuses on financing rural infrastructure projects and is managed by NABARD.
Question 26. What do you mean by micro finance?
Answer: Microfinance refers to institutions that provide financial help to poor people in rural areas. This scheme first started in Bangladesh. This financial aid is now given to Non-Governmental Organizations (NGOs) and Self Help Groups (SHGs), helping finance reach the very basic levels of villages.
In simple words: Microfinance means giving small loans and financial help to poor people in villages, often through local groups, so they can start small businesses or improve their lives.
đ¯ Exam Tip: Emphasize that microfinance helps the poor in rural areas and is often channeled through NGOs and SHGs, originating from Bangladesh.
Question 27. What is Kisan Credit Card?
Answer: Kisan Credit Card (KCC) is a scheme that provides farmers with timely and adequate credit support from the banking system. It allows farmers to meet their short-term credit requirements for cultivation, post-harvest expenses, produce marketing, and consumption needs. The KCC also helps farmers with their investment credit requirements for agriculture and allied activities.
In simple words: Kisan Credit Card is like a debit card for farmers that helps them get quick loans from banks for their farming needs, like buying seeds or managing harvest costs.
đ¯ Exam Tip: Focus on the KCC's purpose: providing accessible and timely credit to farmers for various agricultural and related expenses.
RBSE Class 11 Economics Chapter 17 Long Answer Type Questions
Question 1. Explain the conference held in context to the second green revolution and various efforts made by this revolution.
Answer: The Second Green Revolution is also known as Agricultural Development without Pollution. In December 2006, a conference was held in New Delhi with the theme "Knowledge Agriculture" to discuss the second green revolution. This revolution was expected to address the challenges of continuous agricultural development and world trade. The following efforts were made as part of this revolution:
1. To achieve growth in agricultural production, it was linked to all agricultural products, including food grains, animal husbandry, pisciculture, and more. This all-inclusive approach is why it is called the "Rainbow Revolution."
2. The plan also focused on value addition and developing drinking beverage industries. This emphasized processing agricultural produce to add more worth.
3. The program also aimed to provide crop protection to farmers. All crops and agricultural processes were included under the National Crop Insurance scheme.
4. The Eleventh Five-Year Plan placed more importance on the second green revolution, aiming for a 4% agricultural growth rate. However, the actual growth achieved was 3.3%.
In simple words: The Second Green Revolution, also called "Knowledge Agriculture," aimed to boost farming in a sustainable way. It included all types of farming, protected crops with insurance, and tried to grow farming by 4%. It focused on adding value to farm products.
đ¯ Exam Tip: When describing the Second Green Revolution, mention its goal of sustainable growth, the "Rainbow Revolution" aspect (all agricultural products), and key initiatives like crop insurance.
Question 2. What do you understand by land reform? Explain the pattern of land reform in India. What measures do you suggest for its success?
Answer: Land reform means changing who owns and controls agricultural land. Its main goal is to redistribute land ownership to benefit small and marginal farmers, and agricultural laborers. Professor Mirdal described land reform as planning and reorganizing how land is owned and used by individuals and for farming.
**Programmes for Land Reform**
(i) Abolition of Intermediaries: Before reforms, systems like Zamindari, Ryotwari, and Mahalwari created middlemen between farmers and the government. These systems were abolished, and laws were made to remove them. This helped farmers connect directly with the government.
(ii) Tenancy Reforms: These reforms aimed to protect the rights of tenant farmers. Key aspects included:
• Regulation of Land Revenue: During the First Five-Year Plan, it was suggested that the maximum land rent (lagaan) should not be more than 1/5 to 1/4 of the total production.
• Protection of Tenant Rights: Various plans were introduced to stop landlords from interfering with tenants, give tenants ownership of the land, and ensure that if some land was taken back for owners, a portion was left for tenants.
• Ownership Rights: Laws were passed in many states to give ownership rights to tenants. States like West Bengal, Karnataka, and Kerala saw more success with this.
(iii) Consolidation of Holdings: This reform aimed to fix the problem of scattered land. Farmers were given one piece of farmland instead of many small, spread-out fields. This helped in making farming more efficient.
(iv) Reorganization of Agriculture: This involved several steps to improve farming:
• Consolidation: To deal with land being divided into small pieces, land consolidation was done. Farmers were given one block of land instead of many small, scattered fields.
• Betterment in Land Arrangement: During the first and second planning periods, focus was on improving land by leveling it, making barren land suitable for farming, and using better seeds, fertilizers, and modern equipment.
• Cooperative Farming: By the end of the first five-year plan, India had 1,000 cooperative societies. In 1959, the Congress party made cooperative farming a main goal for agricultural reforms.
**Stability to Landless Farmers and Land-Donation:** This scheme, started by Vinoba Bhave in 1951, aimed to give land to landless farmers. However, even today, 19% of farmers are still landless. The movement tried to convince rich landowners to voluntarily donate land.
**Critical Evaluation (Suggestions for Success):**
1. Land records are still incomplete in many states, which makes reforms difficult.
2. The government's approach was not always effective for land reforms.
3. Many legal disputes arose, making the process complex.
4. It's important to prevent people from misusing others' land.
5. Lawsuits should be filed against those who illegally transfer land or allocate it wrongly.
6. Former soldiers should get priority when distributing land in border areas.
7. Minimum wages for farmers should be fixed.
8. Land should be given to landless villagers.
9. The government should find people who wrongfully claim property.
10. Strict action should be taken against those who deny farmers their land.
In simple words: Land reform means changing who owns farmland to help small farmers. India removed old landlord systems, protected tenant farmers, and brought together scattered farmlands. But there were problems like incomplete records and many lawsuits. For better success, the government should ensure proper land records, protect farmers' rights, and distribute land fairly.
đ¯ Exam Tip: Outline the core concept of land reform (redistribution, tenant protection) and then detail specific programs like abolition of intermediaries, tenancy reforms, and consolidation, concluding with a brief evaluation of successes and challenges.
Question 3. State the condition of Indian agriculture between the years 1950 and 1990.
Answer: Between 1950 and 1990, Indian agriculture saw significant growth due to the increased use of high-yielding seeds and land development programs. This period brought about a revolution in Indian agriculture, marked by:
• **Land Development:** After independence, the government took steps to make farmers landowners. The Zamindari, Ryotwari, and Mahalwari systems were abolished, and laws were passed to fix a maximum limit on land ownership. This removed intermediaries and boosted productivity.
• **Green Revolution:** A major focus was placed on using high-yielding varieties of seeds. This led to a significant increase in crop production, especially for wheat, through the use of artificial fertilizers, pesticides, and high-yield crop varieties.
• **Agricultural Subsidy:** The government offered fertilizers to farmers at a lower price than the market rate. This led to a continuous increase in subsidy costs. While agricultural subsidies were provided to help farmers adopt new methods, this has become a topic of debate today.
Overall, agriculture developed significantly during this period, and both productivity and production increased. However, issues related to agriculture still exist and require further attention.
In simple words: From 1950 to 1990, Indian farming improved a lot. The government helped farmers own land and introduced new high-yielding seeds, which made crops grow much better. They also gave money to farmers for fertilizers, but this cost the government a lot.
đ¯ Exam Tip: Structure your answer by highlighting the key changes: land ownership reforms, the Green Revolution's impact on production, and the role and effects of agricultural subsidies during the specified period.
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RBSE Solutions Class 11 Economics Chapter 17 Agricultural Development
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