ECO3
Unit 1Introduction to Indian Agriculture Q1) Explain the different types to identify poverty.A1) On the basis of social, economic and political aspects, there are different ways to identify the type of Poverty:
1. Absolute poverty.
2. Relative Poverty.
3. Situational Poverty.
4. Generational Poverty.
5. Rural Poverty.
6. Urban Poverty.1. Absolute poverty: It is also called extreme poverty or abject poverty, in this people have scarcity of basic food, clean water, health, shelter, education and information2. Relative Poverty: It is defined in relation to the economic standards of population living in surroundings. Hence it is a measure of income inequality.3. Situational Poverty: It is a temporary type of poverty based on occurrence of an adverse event like Natural disaster, job loss and severe health problem.4. Generational Poverty: It is handed over to individuals and families from one generation to the another. This is very difficult to get out of as there is no escape because people are trapped in its cause and unable to access the tools required to get out of it.5. Rural Poverty: Rural poverty occurs in rural areas with population below 50,000. It is the area where there are inadequate job opportunities, lack of required services, less support for disabilities and quality education opportunities. People are tending to live mostly on the farming and other menial work available to the surroundings.6. Urban Poverty: Urban poverty occurs in the metropolitan areas with population over 50,000. Following are some major challenges faced by the Urban Poor:
• Lack of access to health and education.
• Inadequate housing.
• Unhealthy environment because of overcrowding.
• Little or no social protection mechanism. Q2) Write a note on National Agricultural Policy.A2) The National Agricultural Policy was announced in July 2000. The aim of the policy was to exploit the untapped potential of Indian agriculture. After Green Revolution it was found that some states had improved exponentially and some were far behind. There was considerable yield difference in similar land quality across the states. This policy was planned under the provisions of World Trade Organisation. The policy gave emphasis on promoting agricultural exports after meeting domestic demands. Following are the features of the policy:The target growth rate of agriculture was kept at 4%. Also, to achieve this target growth in an environmentally and economically sustainable manner. To encourage private sector through contract farming. Promotion of Biotechnology. To encourage private sector participation in agricultural research to develop new varieties. Formation of Farmer services cooperative societies to facilitate the marketing of products as per recommendation of National commission on Agriculture. To evolve National Livestock Breeding strategy to meet future requirements of milk, meat, egg, etc. Q3) Discuss issues involved in agricultural marketing system and ways to solve them.A3) Issues in present agriculture marketing system of IndiaToo many middlemen: This leads heavier burden on consumers and less profit for farmers. Lack of storage facilities: This reduces the shelf life of the produce and farmers have to sell their surplus produce at a low rate. Poor transportation: Bad road conditions combined with lack of transportation facilities forces farmers to sell their produce in the vicinity which reduces their bargaining power. Lack of Institutional credit: This causes farmers to agree to unfavourable conditions with moneylenders and more often than not farmers have to sell their surplus to the same money lenders at a very low price. Lack of skills and market information: Due to this the farmers end up selling their produce at a much lower rate than what their surplus deserves. Way Forward: 1. Reduction in the number of middlemen so that farmers can have an option of selling their produce directly to the consumers.2. Improvement in transportation so that farmers can leave their vicinity for a better deal.3. Reduction of digital divide so that farmers can use online platforms to market and sell their produce.In India too many people are engaged in farming hence we have to make sure that we plug all the leaks to increase the farmers’ income. Integration of India as a single market for all the farmers of the country will help in this regard. Q4) Write a short note on Agricultural financing.A4) The land reforms the reforms in credit system was very important. The conventional sources of loan for famers were the money lenders and Zamindars, who used to charge exorbitant rate of interest. This used to force farmers into debt trap. Hence development of Institutional source of credit which would be welfare oriented was very important, which we would study in upcoming topic. Depending upon the period and the purpose the credit system can be divided into following three types:Short term credit: Period is less than 15 months and generally it is taken for purchasing seeds, fertilizers or to pay hired workers and machinery. Medium term credit: Period is between 15 months and 5 years and generally it is taken for purchasing cattle or pumping sets or any other major agriculture equipments. Long term credit: Period is more than 5 years and it is generally taken for buying additional land or for major rectification of land like sinking wells, horticulture, or to start any other side venture. Major sources of Institutional credit:Commercial Banks: In the initial period there was no big role played by the commercial banks, but with the help of ‘Village Adoption Scheme’ and the ‘Service Area Approach ‘ the commercial banks started coming close to meet the requirements of farmers. Moreover Commercial Banks started sponsoring many Regional Rural Banks (RRBs) to serve small and marginal farmers. This was done because the Commercial banks were finding it difficult to advance loans especially in regard to the lending techniques, collateral, recovery, etc. Government: These type loans is called ‘Taccavi loans’ , and is giving at the time of distress like flood, famine, etc. Other Credit Facility: Kissan Credit Card: This scheme was launched in 1998 with the aim of providing short term institutional credit to farmers Interest Subvention Scheme: This scheme is being implemented by NABARD and RBI and its aim is to provide short term loan at subsidized rate of interest. Q5) What is Agricultural pricing? Explain its objectives. A5) ‘It is a tool through which goverment interferes to maintain the prices of the crops at a level where it is profitable for the growers and affordable for the buyers.’Following are the main objectives of the Agricultural Pricing:To ensure the welfare of both producers and consumers. To maintain the prices of the competing crops to fulfill the production targets in regard to different commodities to meet the respective demand. To hold the cyclical and seasonal fluctuation of prices at minimal level. To bring parity in prices across the different regions of the country so that the surplus of any market could be sold within or outside the country as per requirement. To increase income of farmers and the production by providing a fixed investable income. Q6) Discuss the technological changes in Indian Agriculture.A6) Following are the few of many technological changes which happened in the country after independence:Green Revolution: There was a time when we had to import grains from USA to feed our own people. The reason we became not only food sufficient but also food surplus country is ‘Green Revolution’. The tireless work our scientist produced High Yielding Variety of seeds, which increased productivity of crops. Livestock breeding: Human being has been domesticating live stock for thousands of years, so improving livestock breeding is not a new concept but certainly the tools used are much more advanced now. Animal Geneticists work to identify which elements of genes of livestock can improve animal growth, health and other important characteristics. Crop genetics: Farmers and scientist have used plant selection breeding to improve the productivity. Due to advancement in Genetic engineering we can now improve plant’s insect resistance, drought tolerance, disease tolerance and many other desired qualities. Equipment: Equipment like tractors, combines, harvesters and planters has increased the efficiency manifolds. Expertise: With modernization the importance of specialization has been realized in the farming community. This again helps in improving efficiency. Weather forecast: Reliable weather forecast and timely access to it helps farmers to decide when to sow the seeds, when to water and how much. Also, it helps government and farmers to minimize the damages in case of flooding. Digitization: It has helped farmers greatly in marketing and selling their product. This way they have access to much larger market. Initiatives like Kissan TV , e-NAM helps farmers to take better decisions with regards to crop rotation, use of fertilizer and transportation. Q7) Explain Land reforms in India in detail.A7) During the Pre-British era the Indian agriculture was not at all satisfactory and it was made worse by the Britishers. Indian agriculture was stagnated because various reasons like Zamindari system, Commercialization of agriculture, Low level of technology and the partition.After Independence numerous steps were to be taken to revive the agricultural sector. Institutional discrepancies like size of agricultural holdings, land ownership, land inheritance, tenancy reforms, and abolition of intermediaries had to be removed. The steps so taken can be seen in following two phases- Phase 1Abolition of intermediaries: The age-old exploitative systems of Zamindari, Ryotwari and Mahalwari were completely abolished. Tenancy Reforms: Under this following three steps were taken: Rent paid by the Share-croppers to the Land owners was regulated to make it fixed and rational. Security of Tenure was established with respect to the land to make Share-croppers feel financially secure. The ownership rights were given to the tenants(Land to the Tillers). 3. Reorganization of Agriculture: Redistribution of land to the land less masses after promulgating required Ceiling laws(however the failed in most of the states).Consolidation of land and Cooperative farming was encouraged.The attempt of Land Reforms is considered to be unsuccessful by majority of the experts. It was this opinion that made government lean towards the new policy of Green Revolution. The land reforms had failed to increase the production hence the government opted for the route of increasing productivity by means of new technique of agriculture.Phase 2According to the Economic Survey of 2012-13 analysis of steps taken by goverment shows clear 3 step policy. Mapping land carefully and assigning conclusive title: Land is probably the single most valuable asset for the people of our country. It can be used for land utilizing business or it can be used as collateral in Bank. For this purpose the National Land Records Modernization Programme was started in 2008. The aim is to move from Presumptive title, where registration of title is not legally valid, to Conclusive title, where registration of title is legally valid. Digitization has helped greatly In this regard . Devising fair yet speedy process of land acquisition, owing to which government passed Land Acquisition Bill,2013 , and also Land leasing Law as recommended by NITI aayog is being considered. Devising transparent and effective land leasing policy as it is clearly seen from the heavy opposition to the land acquisition that except for the large projects with public purpose it is better if land is leased and not acquired. Q8) What are the problems caused by Urbanization and how to solve them?A8) Urbanization is a big boon for the society if it is planned. The positive fallout of the urbanization can be seen in many ways like employment generation and better employment opportunities, technological and infrastructural developments, better transportation and communication, better educational opportunities, better health services and overall improved standard of living. Urbanization has also made it possible for the people from rural background to get out of shackles of casteism and move to urban area where caste discrimination is exponentially negative. However, if urbanization is not checked it also leads to Negative fallouts like following-Housing problems: Cities attract rural people, who tend to settle in the outskirts of the city , gradually this leads to extension of the city limits and causes urbanization. As a result the number of people living in the city is increasing but not the city, this creates housing problem. Because of this people have to willy-nilly live in the unhygienic and insanitary conditions, which give rise to slums. Overcrowding : This means when population density becomes high to make people living in the place uncomfortable. Problems associated with congestion of people were clearly seen during the COVID 19 pandemic. Unemployment: In our country people who migrate to urban areas are generally engaged directly or indirectly in primary sector. They leave rural areas for the better financial opportunities but due to lack of skills and proper education it becomes difficult for them to get the employment. Water and sanitation: Rapid and uncontrolled urbanization leads to inadequate sewage facilities. And due to heavy construction the ground water level goes down also unchecked and heavy waste creation leads to inadequate water facilities. This becomes nightmare to manage for Municipalities and local Goverment hence causes pollution. Poor health and spread of disease: This become evident during COVID 19 Pandemic that overpopulation can be disastrous. Also urban areas tend to be more polluted due to large number of vehicles, industries and lack of tree cover causing health problems like allergies, asthma, infertility, food poisoning, premature death and many other things. In metropolitan cities the traffic congestion is also a big issue for people. Less space and more vehicles makes continuous honking, long traffic jams, pollution part of people’s regular life and this can have a serious impact on the mental health of a person. Crime: Luxury and extreme poverty can be seen side by side in the big cities. This can cause frustration to a migrant who has left behind his home in village in search of better life. This frustration can lead a person on the path of crime. Way Forward: It is clear that urbanization helps socio-economic development but unchecked urbanization causes lot of problems which are difficult to undo. In this light, it is important to make sure that along with extending the limits of cities as far as development is concerned we also focus on the development of villages. So that we limit the migration by providing people quality education, employment and healthcare in the village only. Also as social ills are highly connected to the economic problems, development would also gradually get rid of social ills. Q9) Write a note on causes of unemployment.A9) Following are the Causes of Unemployment: Population: Huge population is the biggest factor responsible for the unemployment, as it becomes difficult to generate the required number of jobs for increasing population. Low level of or inappropriate education and lack of or no vocational skills. Inadequate State and Institutional support to the backward class. Huge workforce in the Informal sector, which outside the legal safety net. Lack of practical understanding experience of the real life at school and college level. This mainly leads to structural unemployment. Slow growth of Industrial sector due to inadequate investment and State support. Huge workforce engaged in the agriculture sector and lack of alternative for people to get out of it. Societal hurdles for women. Q10) What do mean by inequality, mention its consequences and ways to overcome it.A10) Consequences of Inequality: Social problems: In India, where caste difference generally overlaps with income difference there can be far reaching consequences like sense of unfairness, loss of dignity, weak societal fabric leading to violence, lack of trust in institutions. Separatism: India has seen demand for separate state or autonomous regions by many ethnicities. Healthcare and Education: People will not be able to afford quality education and healthcare if there is concentration of wealth. Way Forward: Manufacturing : We have to promote labor intensive manufacturing industries like construction, textile, clothing ,footwear, etc. This industries have the ability to absorb the huge number of job seekers, hence it will also help to reduce the disguised unemployment in the agriculture sector. Inclusive Growth: When all the sections of population get benefited by the development that is when there can be harmony in the society. Recent development in Chile is a glaring example in this regard. Skill development: Skill development of the youth of the country is the prerequisite to make use of our Demographic dividend. We have to focus not only on Technical Education but also on development of Vocational skills. This is especially more important in the rural area as it comprises larger chunk and also it has lesser avenues. Equal opportunity for all: Government needs to make sure that all the citizen gets equal opportunity to pursue the educational field they desire, all citizen get quality healthcare and job opportunities is available to everyone irrespective of their socio-economic status and gender. Q11) Discuss the causes of Poverty.A11) 1.Huge population: India’s population has increased at the rate of 2.2% per year during the last 45 years, which means India has added 17 million people are added to the population every year. Hence it puts huge pressure on country’s resource requirement.2. Inefficient Resource Utilization: Underemployment and Disguised unemployment leads to inefficient use of human resources. Also slow technology development and lack of investment in Research and Development causes inefficient use of India’s Natural resources.3. Low rate of Economic development: Slow economic development especially before the Economic reforms of 1991.4. Unemployment: Huge young population means huge number of job seekers however we have not been able to create jobs at the pace it was required.5.Social factors: Laws of inheritance, Caste system, Gender discrimination are also causes of poverty.6.Colonial exploitation: British exploitation which lasted for around 2 centuries transformed India from one of world’s richest country to the one in the shackles of poverty. Local Indian markets were ruined and the export dominated economy of the finished product was made to export the raw material and was used as market for cheap machine made goods.7. Low agricultural productivity: Largest section of Indian workforce is engaged in agriculture, Hence good agricultural productivity is very important for the economic development. Small land holdings, lack of knowledge about modern agriculture, lack of capital are some of the reasons for the low agricultural productivity.
1. Absolute poverty.
2. Relative Poverty.
3. Situational Poverty.
4. Generational Poverty.
5. Rural Poverty.
6. Urban Poverty.1. Absolute poverty: It is also called extreme poverty or abject poverty, in this people have scarcity of basic food, clean water, health, shelter, education and information2. Relative Poverty: It is defined in relation to the economic standards of population living in surroundings. Hence it is a measure of income inequality.3. Situational Poverty: It is a temporary type of poverty based on occurrence of an adverse event like Natural disaster, job loss and severe health problem.4. Generational Poverty: It is handed over to individuals and families from one generation to the another. This is very difficult to get out of as there is no escape because people are trapped in its cause and unable to access the tools required to get out of it.5. Rural Poverty: Rural poverty occurs in rural areas with population below 50,000. It is the area where there are inadequate job opportunities, lack of required services, less support for disabilities and quality education opportunities. People are tending to live mostly on the farming and other menial work available to the surroundings.6. Urban Poverty: Urban poverty occurs in the metropolitan areas with population over 50,000. Following are some major challenges faced by the Urban Poor:
• Lack of access to health and education.
• Inadequate housing.
• Unhealthy environment because of overcrowding.
• Little or no social protection mechanism. Q2) Write a note on National Agricultural Policy.A2) The National Agricultural Policy was announced in July 2000. The aim of the policy was to exploit the untapped potential of Indian agriculture. After Green Revolution it was found that some states had improved exponentially and some were far behind. There was considerable yield difference in similar land quality across the states. This policy was planned under the provisions of World Trade Organisation. The policy gave emphasis on promoting agricultural exports after meeting domestic demands. Following are the features of the policy:
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