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Chapter 6 – Rural Development Interview Questions Answers

Question 1 : What do you mean by rural development? Bring out the key issues in rural development.

Answer 1 :

Rural development focuses on the social and economic development of the rural areas. These programs help in accelerating the growth and development of the rural areas which ultimately helps in the development of country. The key issues that needs to get highlighted are:

1. The focus should be on creating human resources or in other words human capital by providing support in education, vocational skills, and good health care facilities and on job training.

2. Alternative sources of employment should be generated so as to address the issue of unemployment or disguised unemployment, development of alternative sources will reduce the burden on agriculture.

3. Infrastructure development is very essential as it supports the other growth initiatives. These development can include creation of bank, transport, electricity and means of irrigation

4. Land reforms should be undertaken with the help of modern techniques which increases the overall production.

5. Poverty removal should be one of the focus points of rural development. It gives rise to many associated issues like unemployment, poor quality of human capital, social inequality etc.

Question 2 : Discuss the importance of credit in rural development.

Answer 2 :

Credit plays an important role in rural development. Farmers in rural areas have lower income and accordingly lower savings. Therefore, it results in less productivity. Banks also prefer paying loans to farmers having a good earning. Those farmers that are small or marginal take loan from moneylender and fall into a trap. Credit infusion is very much essential for agricultural sector in order to usher in rural development. The importance of credit can be shown below:

1. It helps modernize the farming by getting access to latest tools through credit

2. There exists a long time between sowing and harvesting. It is known as gestation period. In this period farmers need financial support for meeting requirements of farming like seeds,

3. It helps farmers from the poverty and provides funds for sustenance

4. Agriculture is dependent primarily on weather and season. During a bad season, there is a possibility of crop failure, which is detrimental to farmers. In that case, credit, crop insurance helps recover the cost.

Question 3 : Explain the role of micro-credit in meeting credit requirements of the poor.

Answer 3 :

Credit offered to poor through the SHGs (Self Help Groups) and non-governmental organisations is known as micro finance organisations and they offer micro credit. The SHGs play a significant role in meeting credit requirements of the poor and also encourage savings among the rural people. Money is pooled from the individual accounts of many farmers to finance the requirements of members. Finance done from SHGs reduce cost of transaction for borrowers and lenders. The National Bank for Agricultural and Rural Development (NABARD) provides loan/credit at reduced rates. This type of finance is becoming the preferred choice for small farmers due to ease of credit and faster disbursal.

Question 4 : Explain the steps taken by the government in developing rural markets.

Answer 4 :

Steps taken by Indian government for developing rural markets:

1. The concept of regulated markets was introduced where a market committee regulated the sale and purchase of products. This committee consisted of farmers, traders and government agents. Using proper scales and weights the marketing system introduced greater transparency and ensured that farmers received good price for their products.

2. The government introduced cold storages and warehouses which farmers to sell product in market when attractive price can be obtained. Railways also offered transport facilities for selling of product to city market and earn good profit.

3. The government started co-operative marketing for making farmers get access to fair price policies. Farmers get better bargains for the sale in the market.

4. MSP or Minimum Support Policy determines a price that a farmer may charge in exchange for his products in the open market. The policy of MSP protects a farmer in case there is a fall in price. It is especially beneficial as farming in India is prone to uncertainties.

Question 5 : Why is agricultural diversification essential for sustainable livelihoods?

Answer 5 :

Agricultural diversification refers to the diversity in crop production and allocating of agricultural workforce in other allied activities such as fisheries, poultry and livestock, also in non-agriculture sector. The following points explain the importance of agricultural diversification:

1. Indian farmers are dependent on monsoon for farming which is risky, so diversification enables farmers to earn more from occupations that are non-agricultural.

2. While there are a lot of farming opportunities in the Kharif season, the Rabi season brings with it difficulties in irrigation which makes employment less, diversification helps by providing an alternative source of income.

3. Agriculture as a job providing proposition is already saturated and is unable to generate further employment, therefore non-agricultural sectors can be explored as a potential source of revenue.

4. Due to possessing dynamic linkages several non-farm sectors help in enhancing the economic growth.

Question 6 : Critically evaluate the role of the rural banking system in the process of rural development in India.

Answer 6 :

After nationalisation of banks took place in 1969, rural banking has grown a lot. This has helped in rural development in the following ways:

1. It helped increase the farm and non-farm output by supplying credit facilities to customers.

2. Provided long term loans with better repayment options. It helped dependency on moneylenders

3. Achieving food security by production of food grains in abundance.

4. Assisting self-employment schemes in rural areas for generating credit

Question 7 : What do you mean by agricultural marketing?

Answer 7 :

Agricultural marketing refers to the services that are involved in movement of an agricultural product from the farm to the consumer. It includes planning, organising, directing and handling of products in a way to satisfy farmers, intermediaries and finally the customer.

The steps involved in agricultural marketing are:

1. Collecting the product after harvesting

2. Processing the collected product

3. Grading of product as per the quality standards

4. Packing the product

5. Storage of the product for future use

6. Sale of product in market at the best price

Question 8 : Mention some obstacles that hinder the mechanism of agricultural marketing.

Answer 8 :

Obstacles that hinder the mechanism of agricultural marketing are as follows:

1. Inadequate storage spaces or warehouses.

2. Multiple middlemen eating into profits.

3. Malpractices present in unregulated markets.

4. Lack of a proper weighing, grading and standardisation system

5. No scope of finance

6. Lack of proper market information

7. Transport and communication are not that developed.

Question 9 : What are the alternative channels available for agricultural marketing? Give some examples.

Answer 9 :

The small and marginal farmers were the one who were selling their product by taking help of middlemen and losing profits to those middlemen. They were not receiving appropriate price for their product. Hence, it led to the creation of alternative channel. The features of these channels were that farmers can sell directly to consumer and get higher price in comparison to selling through middlemen. Some of these examples are Hadapsar Mandi in Pune, Uzhavar Sandies in Tamil Nadu, Rythu Bazars in Andhra Pradesh and Telengana and Apni Mandi in Punjab, Haryana and Rajasthan. Apart from this, another alternative channel was sale of produce to national and international companies on contract basis. Payments were made in advance for products at pre-determined rates. The use of these channels helped farmers in raising income.

Question 10 : Distinguish between ‘Green Revolution’ and ‘Golden Revolution’

Answer 10 :

Green Revolution

Golden Revolution

Using High Yielding Variety (HYV) seeds along with fertilizers and better irrigation facilities resulted in significant production of rice and wheat. This is known as Green Revolution.

Golden revolution is referred to as the rapid growth of horticultural crops such as vegetables, fruits, flowers and tuber crops in India.

Rice and wheat production increased substantially during this phase

Phenomenal rise in production of aromatic plants, spices, vegetables and fruits was observed during this phase.

India achieved self-sufficiency in producing wheat and rice.

India became a world leader in producing banana, mango, spices and coconut.


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Chapter 6 – Rural Development Contributors

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