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SHGs – Self Help Groups.

KMF – Karnataka Milk Federation.

Food Corporation of India established in 1965.

1. Dynamic sub sectors:

• Agro-processing industries
• Food processing industries
• Leather industries
• Tourism

2. Traditional household base industries:

• Crafts
• Pottery
• Handloom

RRB’s – Regional Rural Banks.

The main objective of NABARD as an apex body is to co-ordinate the activities of all institutions involved in the rural financing system.

There is quite a wide gap between the crop sowing and realisation of income after production hence, the farmers have to borrow money from various sources to meet their initial investments on seeds, fertilisers, implements and other family expenses (like marriage – death, religious ceremonies, etc.,). 

At the time of independence, farmers were exploited by local money lenders and traders. To save the farmers from the exploitation of money lenders and traders, the Government adopted the concept of social banking and multi-agency approach during the year 1969.

In a to this attempt, it established National Bank for Agriculture and Rural Development (NABARD) in 1982 as an apex body to co-ordinate the activities of all institutions involved in the rural financing system.

Providing administrative power and the responsibility of developing the village to people themselves is called decentralization.

Village, Taluk, and district

NABARD came into existence in the year 1982.

Panchayat institutions operate under Democratic principles.

It is defined as the overall development of rural areas to improve the quality of life of rural people.

Credit in rural development is important in the following ways: 

1. To realise higher productivity in agriculture adequate credit is required by agriculturist.

2. The timely availability of credit helps in enhancing the confidence of the farmer as there is time gap between crop sowing and realisation of income after production.

3. Credit from Government agencies helps in relieving the farmers from the burden of local money lenders and traders. That provides strong base for the efficient growth of agriculture sector.

4. More than two thirds of India’s population depends on agriculture. It is only the credit and marketing facilities that can help them to meet not only their personal expenditures (marriages, ceremonies, other rituals, etc.,) but also productive expenditures.

5. Credit enables the farmers to have faith in themselves as Indian agriculture, even after fifty-nine years of Independence, is still dependent on the vagaries of monsoon.

Karnataka has 30 Zilla Panchayats. 

Micro-credit helps the fanners in the following manner in meeting their credit requirements: 

1. It helps in empowerment of women by providing credit for their consumption purposes.

2. It helps in promoting the small savings which can be pooled and utilised in cases of emergencies.

3. It helps in saving the agriculturalists from the exploitation of money lenders and traders.

4. It provides loans to farmers at reasonable interest rates repays in small industries.

Rural development is a comprehensive term. It essentially means a plan of action for the development of areas which are lagging behind in socio-economic development. The key issues in rural development are: 

1. Human Capital Formation:

Investment should be made in education, health and technical skills development to make people more efficient and able to do work.

2. Development of production resources: 

The rural people are mainly dependent on agriculture to earn their livelihood that usually suffers from low productivity, lack of infrastructure and disguised unemployment. Therefore, efforts must be made towards development of alternative occupation through available resources.

3. Land reforms:

Land reforms with technical reforms allow the farmers to use modem techniques and methods which increase the productivity and aggregate volume of farm output. Land reforms also lead to efficient and optimum use of land enabling large scale production.

4. Development of infrastructure: 

Infrastructure is the basic level for all kind development such as electricity, irrigation, bank, credit, transportation, development of markets, etc.,

5. Alleviation of poverty:

Special measures should be taken to tackle poverty and bringing about significant sections of the people emphasing access to productive employment opportunities

Decentralization.

The Government has taken following measures to improve the rural markets: 

1. Introduction of the concept of regulated markets: 

The Government has tried to regulate the markets to create an orderly and transparent marketing condition 

2 Provision of Physical infrastructure facilities: 

The Government has tried to provide infrastructure facilities to farmers like roads, railways, warehouses, godowns, cold storage, and processing units. The current Government infrastructure facilities are quite inadequate to meet the growing demand and need to be improved.

1. Multi-agency approach to rural banking: 

Multi-agency approach to rural banking means that there are many institutional sources of rural credit.

2. Institutional sources of rural credit: 

The institutional structure of rural banking today consists of: 

1. Commercial Banks 

2. Regional Rural Banks (RRB’s) 

3. Co-operatives 

4. Land Development Banks 

5. Co-operative Credit Societies

Panchayat Raj

Rural Banking has played a crucial role in the process of rural development in India.

1. The National Bank for Agricultural and Rural development (NABARD) has made significant progress in the field of rural credit.

2. It cannot be denied that institutional credit has freed the farmers from the trap of money lenders. 

3. But on the other hand, institutional credit is not free from defiencies. The rural or institutional credit has invariably been associated with securing or collateral. Consequently, a substantial number of farmers can’t avail of credit. Also, commercial banks failed to encourage the habit of thrift among farmers.

4. In addition to this, the leniency on the part of the Government to collect taxes was another set back in rural banking. This further led to the emergence of the feeling among the farmers of not repaying the borrowed amount. This increases the defaulter’s rate and led to financial unfeasibility for the rural banks.

Agriculture is the major source of livelihood in rural sector.

Following are the problems freed by farmers during the initial years of organic farming:

1. The percentage of produced goods remains less as compared to chemically produced goods.

2. It is expensive hence it is impossible for small and medium scale farmers to use it on a large scale.

3. It is unsuitable for seasonal farming.

Information technology (IT) plays a very significant role in achieving sustainable development and food security. Government can predict areas of food insecurity and vulnerability using appropriate information and software tools so that action can be taken to prevent or reduce the livelihood of an emergency.

It also has positive impact on the agriculture sector as it can disseminate information regarding emerging technologies and its application, price, weather, and soil conditions for growing different crops, etc., Though It is by itself, no catalyst of change but it can act as a tool for releasing the creative potential and knowledge embedded in the society.

It also has potential of employment generation in rural areas. Thus, it can be said that it plays a vital role in assuring food security and sustainable development in India.

a. Benefits of organic farming are: 

1. It offers a means to substitute costlier agricultural inputs with locally produced organic inputs that are cheaper and thereby generate good returns on investment.

2. The use of chemical fertilizers leads to erosion of soil fertility. As organic farming discards the use of chemical fertilisers, this farming is practiced to produce non-toxic food for the consumers without degrading soil fertility.

3. Organically grown food has more nutritions value than chemical farming thus providing us with healthy food.

4. Since organic farming requires more labour input than conventional farming, India will find organic farming an attractive proposition.

5. It also generates income through exports as the demands for organically grown crops is on a rise.

b. Limitations of organic farming:

1. Organic farming offers lesser yield that conventional farming. Therefore, the productivity of organic farming is lower than that of conventional farming.

2. The popularity of organic fanning depends on the awareness and willingness of the farmers . to adopt this technology. Due to lower productivity, farmers lack initiative to adopt organic farming.

3. The inadequate infrastructure and problem of marketing are the major concerns that need to be addressed to promote organic farming.

4. Organic farming offers lesser yield than conventional findings, this farming is not financially viable for the small and marginal land-holdings farmers.

Organic farming is a whole system of farming that restores maintains and enhances the ecological balance. In other words, this system of farming relies upon the use of organic inputs for cultivation.

The tradition of farming includes the use of chemical fertilisers, toxic pesticides, etc., that harms the ecosystem drasticates so this type of farming is practised to produce toxic-free food for the consumers while simultaneously maintaining the fertility of soil and contributing the ecological balance.

This type of fanning enables eco-friendly sustainable economic development. So for unpolluted environment and sustainable development, organic farming is the answer. Organic farming helps in getting safe, healthy and nutritious food.

A remarkable increase in the production of fish and other aquatic products is called as Blue Revolution.

The four causes for slow development of rural economy are as follows: 

1. poor infrastructural facilities 

2. lack of alternative employment opportunities 

3. seasonal unemployment

4. rural indebtedness 

5. illiteracy

In 2011 census report 68.84% of the population lived in villages.

The policy instruments are:

1. Assurance of minimum support price for 21 agriculture products. 

2. Maintenance of buffer stock of wheat and rice by FCI

3. Distribution of food grains and sugar through PDS (Public Distribution System)

Some of the obstacles that hinder the mechanism of agricultural marketing are:

1. Farmers suffer from faulty weighing and manipulate accounts.

2. Due to misinformation about market prices and conditions, farmers are forced to sell their product at lower prices.

3. The farmers lack access to proper storage facilities to store their produce for future sell at better price.

4. The farmers cannot avail agricultural credit, leading to their exploitation by the money lenders.

A remarkable increase in the production of fruits is called as Golden Revolution.

The white revolution or operation flood refers to a spectacular increase in the production of milk.