Rajasthan Board RBSE Class 11 Economics Notes Chapter 17 Agricultural Development
→ India has always been an agricultural economy.
→ Indian agricultural products have been famous and in much demand in the world for their quality, for example— Muslin from Dhaka, Indian spices, jute, clothes, etc.
→The major means of livelihood for about 85% population was agriculture before Independence.
→Traders from western countries turned fo India, seeing the superior quality of India’s agricultural products.
→With their diplomatic Divide and Rule policy, the Britishers were successful in making India then- colony.
→ They made India an exporter of raw materials and an importer of manufactured goods from England.
→The Britishers transformed agriculture into merely a means of life subsistence.
→ Agriculture is the means of livelihood for around 65% percent population even today.
→ The data for National income is provided by the Central Statistical Organization.
→ According to Central Statistical Organization, the contribution of agriculture in Gross Domestic Product was 56.6 percent in 1950-51 which decreased to 15.2 percent during the eleventh five year plan.
→ The contribution of agriculture in National Income is gradually decreasing after independence. This is an indicator of a developing economy.
→ Contribution of agriculture in national income is 2-3 percent in the United States of America, 7 percent in France and 7 percent in Australia.
→ In Indian economy, agriculture is important in national income, industrial development, foreign trade and economic planning.
→ Land reforms were carried out to improve the state of agriculture. The following measures were taken under land reforms
- Abolition of Intermediaries
- Tenancy Reforms
- Consolidation of Holdings
- Reorganization of Agriculture.
→ It was difficult to provide permanent settlement in states like- Bihar, Odisha, West Bengal, Rajasthan, Saurashtra, etc. states because no land records were available there.
→ The Zamindari, Ryotwari and Mahalwari systems were abolished, and many laws were made by which a direct contact was created between the fanners and the government.
→ It was proposed under the tenancy reforms that the maximum lagaan should not exceed 1/5 or 1/4 of the total produce.
→ Ownership rights were given to the tenants. Laws were enacted in many states in this regard. More success was achieved by these laws in West Bengal, Karnataka and Kerala, as compared to other states.
→ The maximum limit of holding was fixed by the government, so that the agricultural farmers could be provided land.
→ Confined holdings are found to be more in India. Due to this, input cost is more as compared to the produce.
→ The sub-division and fragmentation of holdings in the country took place due to various legal, social, economic and demographic reasons.
→ The role of law of succession, excessive pressure of increasing population, disintegration of point families, leasing practice and the role of moneylenders is main in this regard.
→ To resolve the problem of sub-division and fragmentation, the consolidation of holdings was done.
→ Consolidation implied providing farmland at one place to the farmer instead of fields scattered around places in the village.
→ The laws implemented by the government under land reforms could achieve partial success only. The Zamindars took advantage of the flaws in the laws and declared themselves to be farmers.
→ The main food grain of India is rice, and wheat is on the second place.
→ The production of rice increased around five times from 206 lakh tons in 1950-51 to 1065 lakh tons in 2013-14. In the same period, wheat production increased around 15 times from 64 lakh tons to 959 tons.
→ In non-food grain, crops, oilseed production recorded an approximate increase of around 5 times, while in the same period, cotton production increased 12-fold.
→ The agricultural productivity is low in India on account of social atmosphere of villages that includes traditional orthodoxy, fatalism, superstition, ignorance etc.
→ Keeping the target of increasing agricultural productivity in mind, the National Food Security Mission has been implemented in the eleventh five year plan.
→ Agricultural production and productivity depend upon the Agricultural Inputs.
→ Use of Irrigation, fertilizers, HYV seeds, Pesticides, etc. is included in agricultural inputs.
→ Only Nitrogen (N) and Phosphorous (P)’ fertilizers are produced in India. For Potash (K), we are totally dependent
upon imports.
→ The ideal ratio of consumption of these fertilizers is 4:2:1. But in India, in 2013-14, the ratio of N:P:K is 8.2:3.2:1.
This shows the imbalance in use of fertilizers.
→ The government is providing fertilizers to the farmers at a rate lower than the actual amount. Due to which, the
burden of subsidy is continuous increasing on government.
→ This subsidy was 505 crore in 1980-81, which increased to 70,967 crore in 2014-15.
→ Only 44.9% land has the facility of irrigation. Remaining 53.1% agricultural land depends upon the rain.
After 1978-79, irrigation projects were divided into 3 parts-
- Minor irrigation projects
- Medium irrigation projects
- Major irrigation projects.
→ Since ancient times, modes of irrigation in the form of ponds, Baoris, wells, canals, tankas, johads, etc. have been used. At present time, we divide modes of irrigation into three main categories
- Irrigation through canals
- Irrigation through ponds
- Irrigation through wells.
→ Special emphasis was laid on the use of high-yielding varieties (HYV) of seeds during the green revolution. The success in this field was achieved in the Kharif crop of 1966, when high yielding seeds varieties were adopted and it was also adopted as a “Package Programme”.
→ Firstly, High yielding seed varieties were imported from Mexico for wheat.
→ Greater success was achieved in wheat crop through the use of high yielding Variety of seeds.
→ Maximum use of pesticides and insecticides in India is done for paddy and cotton crops.
→ Use of pesticides has increased after the green revolution. In 1970-71, this use was 24.3 thousand tons that increased to 50.58 thousand tons in 2011-12.
→ The production of wheat in India increased for the first time in 1958 from 50 lakh tons to 120 lakh tons and later to 170 lakh tons. This was termed as the Green Revolution by American scientist William God.
→ The green revolution in India began with the Kharif crop of 1966, when the Prime Minister of India Mrs. Indira Gandhi and agricultural minister Mr. C. Subramaniam spoke about adoption of new strategy.
→ High yielding variety of wheat seeds were discovered by the agricultural scientists Dr. Norman E. Borlaug while doing research in Mexico, which could increase wheat productivity by 200-250 times.
→ His first experiment was done in Mexico and Taiwan.
→ The use of high-yielding rice variety “Taichung Native” in kharif crop of 1966, and high yielding wheat variety like lamia, Rojo 64 A and Sonara-64 in Rabi crop of 1966 was done in India.
→ Agricultural scientist Dr. M.S.Swaminathan developed new wheat varieties of Sharbati Sona, Pusa Larma while removing the setbacks of Mexican wheat seeds.
→ Thus, the Father of Green Revolution in India is considered to be Dr. M. S. Swaminathan, while in the global context, this credit goes to Norman E. Borlaug.
→ Norman E. Borlaug was awarded the Nobel Prize for peace in 1970.
→ This new strategy is also called “Seed Fertilizer Revolution”.
→ Thus, the new strategy was related to HYV seeds and was such a collective package which was related to the earlier economy.
→ The strategy for green revolution in India is divided into two stages.
→ First stage is called the stage of centralization. It was limited to the crop of wheat and rice.
→ In this stage, the productivity of wheat increased rapidly, and so it is also called the stage centralized on wheat crop.
→ A group of 5 crops was included in the second stage. This included wheat, rice, millets, barley and maize.
→ The programme was implemented in other parts of the country, and so it is also called the ‘stage of decentralization’.
→ The emphasis was given on ‘dry farming’ in the second phase.
→ Asa result of green revolution, food grain production and productivity increased rapidly.
→ The productivity of wheat per hectare increased from 851 kg to 3075 kg. and due to this, it was called the “Wheat Revolution”.
→ The use of machines and equipment in agriculture received a major and extensive boost, which changed the traditional form of agriculture into a modem form.
→ The greatest effect of green revolution was on wheat, but the green revolution was ineffective on other food grain crops and commercial crops.
→ The effect of green revolution remained limited to some regions only, which started the process of unbalanced development in agricultural development.
→ The problem of agricultural finance exists in the Indian economy since a long time.
Agricultural finance has been divided into following types-
1. On the basis of time period-
- Short term loans
- Medium term loans
- Long term loans.
2. On the basis of industries-
- Productive Loan
- Unproductive Loan.
→ Short term loans – Farmers need short term loan to fulfill their requirement of fertilizers, seeds and other domestic needs. Their tenure is less than 15 months. These are provided by cooperative societies, moneylenders etc.
→ Mid term loans – Farmers need medium term loan for makings improvement in land, buying agricultural implements, buying bullocks, etc. Their tenure varies from 15 months to 5 years.
→ Long term loans – The tenure of these loans is more than 5 years. These are needed to make the land leveled, dig wells, buy new land, pay old debts, buy heavy machinery-tractor, etc. develop minor irrigation system etc.
→ Productive Loan – This is used to buy fertilizers, seeds, agricultural implements, bullocks, making permanent improvements in land.
→ Unproductive Loan – This is used for unproductive works like- for marriage, death-feast, other social customs, litigation, etc.
Sources of Agriculture finance is divided into two parts-
- Non-Institutional Sources- Moneylenders, relatives, zamindars, brokers and traders.
- Institutional Sources- Cooperative Societies, Land Development Banks, Regional Rural Banks, NABARD, etc.
→ In order to increase institutional agricultural finance, the Reserve Bank of India set up an advisory committee on the flow of credit to agriculture and related activities from the banking system under the chairmanship of Prof. B.S. Vyas.
→ The committee submitted its report in 2004 with its 99 suggestions, out of which 32 suggestions were accepted by the Reserve Bank.
→ The establishment of Cooperative Credit Institutes began in India in 1904.
Cooperative Credit Institutes are divided into a 3 tier system-
- Primary Credit Societies
- Central Cooperative Banks
- State Cooperative Banks.
→ Land Development Bank was established firstly in India in 1929. These are also known as land mortgage banks.
→The Regional Rural Banks (RRBs) were set up along with the establishment of 5 banks on October 2,1975.
→ In order to increase the contribution of commercial Banks in agricultural credit, 14 major banks were nationalized in 1969. In 1980,6 more commercial banks were nationalized.
→ National Bank For Agricultural and Rural Development- NABARD was established in July 1982 on the recommendations of the CRAFICARD committee, whose chairman was B. Shivaraman.
→The Agricultural Refinance Corporation was established in 1963 by the Reserve Bank of India and it was renamed as Agricultural Refinance and Development Corporation (ARDC) in 1975.
→ NABARD provides two type of refinance assistance :
- It provides long term loans to state Cooperative banks, regional rural banks, and commercial banks.
- NABARD provides loans to agricultural credit committees which are the lowest links of rural institutional credit.
→ In 1995-1996, first Rural Infrastructure Development Fund was established with an investment of ₹ 2000 crore.
→ The main objective of this fund was to provide financial assistance to the state government and corporations running under it to complete the rural-based structure.
→ The institutes that provide financial help to the poor people of the village areas are called micro finance Institutions.
→ Initially, this concept was adopted in Bangladesh.
→ This financial help is provided to Non-Governmental Institutions and Self Help Groups.
→ To provide short term loans to farmers, Kisan Credit Card Scheme was started in 1998-99.
→ In 1993, NABARD established the Cooperative Development Fund.
→ To fulfill its financial related needs, NABARD takes loans from Indian Government, World Bank, Reserve Bank of India and from various National and International institutes.
→ Using pollution free resources for agricultural development or using eco- friendly technology is known as the second green revolution or sustainable development.
→ Former President of India, APJ Abdul kalam, advocated adoption of second green revolution to increase food supply.
→ In this, it was deemed necessary to included all elements from the farm to the market.
→ A conference was held in December 2006 for discussion on the second green revolution whose theme was “Knowledge Agriculture”.
→ In order to achieve growth in agricultural production, it has been linked to all agricultural products like food grains, animal husbandry, pisiculture etc. and is implemented in all these. This is why, it is termed as “Rainbow Revolution”.
→ Processing of agricultural produce for value addition and to develop them as drinking beverage industries was emphasized.
→ The eleventh five year plan laid more emphasis on second green revolution so that the targeted growth rate of agricultural development (4%) could be achieved, whereas actually, 3.3% growth rate was attained.
Agricultural Development Class 11 RBSE Notes Important Terms
• Working Population- Working population refers to the number of people who are willing and eligible to work.
• Food processing- Food processing is the transformation of cooked ingredients, by physical or chemical means, into food, or of food into other forms.
• Tenancy system- Tenant farming is an agricultural production system in which landowners contribute their land and often a measure of operating capital and management to the tenants on lease.
• Holding- An area of land held by lease.
• Sub-Division-An area of land divided into plots for sale.
• Fragmentation-Division of large farms into smaller ones.
• Consolidation-In place of scattered fields at various places in the village, providing the fields to the farmer at one place itself.
• Crop value- The fixed returns earned by the farmers on their yielded crop.
• Subsidy-A sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low.
• Small Irrigation Project- Agriculture command area of less than 2000 hectares.
• Medium Irrigation Project- Agriculture command area from 2000 hectares up to 10000 hectares.
• Large irrigation project-Agriculture command area of more than 10000 hectares.
• Green Revolution- Significant increase in crop production in developing countries achieved by the use of artificial fertilizers, pesticides, and high-yield crop varieties.
• Mechanization-Mechanization is the process of changing from working largely or exclusively by hand or with animals to doing that work with machinery.
• Dry farming- A type of farming practiced in arid areas without irrigation by planting drought- resistant crops or by employing moisture-enhancing techniques such as planting seeds deep in the ground or using and maintaining a fine surface tilth or mulch that delays evaporation.
• Fertilizer- Fertilizer is any material of natural or synthetic origin, other than liming materials, that is applied to soils or to plant tissues to supply one or more plant nutrients essential to the growth of plants.
• Commercial crops- Commercial crops are grown by the farmers for gaining high profit.
• Short term loans- Farmers need short term loans to fulfill their requirements of fertilizers, seeds and other domestic needs. Their tenure is less than 15 months. These are supplied by cooperative societies, moneylenders etc.
• Medium term loans- Farmers need medium term loans for making improvement in land, buying agricultural implements, buying bullocks, etc. Their tenure varies from 15 months to 5 years.
• Long term loans – The tenure of these loans is more than 5 years. These are needed to make the land leveled, dig wells, buy new land, pay old debts, buy heavy machinery-tractors, etc. develop minor irrigation system etc.
• Productive Loan- This is used to buy fertilizers, seeds, agricultural implements, bullocks, make permanent improvement in land.
• Unproductive Loan- This is used for unproductive works like- marriage, death-feast, other social customs, litigation etc.
• Non-Institutional Sources- Moneylenders, relatives, zamindars, brokers and traders.
• Institutional Sources- Cooperative Societies, Land Development Banks, Regional Rural Banks, NABARD.
• Cooperative Credit Institutes- These provide many other financial services to their members.
• Primary Credit Societies- They have been set up at the village level. At least 10 persons can establish it in a village or region. These provide loan for production works.
• Central Co-operative Bank- These are set up at a district level and their main function is to provide loans to Primary Credit Societies. They function as intermediaries between state cooperative banks and Primary Credit Societies. The tenure of loan ranges from 1-3 years.
• State Co-operative Bank-These have been set up at the state level. Long term loans are provided by them to district cooperative banks, and in addition, to this, they exercise control over their functioning. These are financed by the Reserve Bank.
• Land development bank-This provides services such as accepting deposits, granting business loans, and offering.basic investment products. The main objective of the LDBs is to promote the development of land, agriculture and increase the agricultural production.
• Regional rural banks- It provided loans to small and marginal farmers, agricultural labourers, artisans etc.
• Commercial Bank- A commercial bank is an institution that provides services such as accepting deposits, providing business loans, and offering basic investment products.
• National National Bank For Agricultural and Rural Development- NABARD— This provides long term loans to state cooperative banks, regional rural banks, and commercial banks. NABARD also provides long term loans to state government for cooperating towards cooperative credit institutes.
• Rural Infrastrucure Development Fund- The RIDF was set up by the Government in 1995¬96 for financing ongoing rural Infrastructure projects. Fund is maintained by the National Bank for Agriculture and Rural Development (NABARD).
• Micro- Finance- Micro finance, also known as micro credit, is a financial service that offers loans, savings and insurance to entrepreneurs and small business owners who don’t have access to traditional sources of capital, like banks or investors.
• Kisan Credit Card- The Kisan Credit Card (KCC) scheme is a credit scheme introduced in August 1998 by Indian banks. This model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendations of R.V. Gupta to provide term loans and agricultural needs.
• Cooperative Development Fund- Fund established for organisation structure of government credit organisations, for resource collection and for the recovery of human resource development loans.
• Second Green Revolution- Using pollution free resources in agricultural development and using eco- friendly technology is known as the second green revolution.