Kurukshetra :- Rural Non-Farm Sector (Part -3) July 2019 (Download PDF)


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DAY-NRLM-Reducing Poverty thru Livelihood Diversification: -Deendayal Antodaya Yojana- National Rural Livelihoods Mission (DAY-NRLM) is aimed at alleviation of rural poverty thru building sustainable community institutions of poor. It seeks to sustainable livelihood opportunities by building their skills & enabling them to access formal sources of finance, entitlements & services from both public & private sectors. Mission has approved proposals to support 2 lakh SHG members under value chain development interventions.

Sanctioned projects cover a variety of agriculture, livestock & NTFP commodities.

1.2 lakh SHG members have already been covered under these interventions.

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Rural Non-Farm Sector: Kurukshetra July 2019 (Examrace - Dr. Manishika Jain) UPSC/NABARD

Rural Non-Farm Sector: Kurukshetra July 2019 (Examrace - Dr. Manishika Jain) UPSC/NABARD

Bottom of Poverty to Prosperity

External Institution Building CRP Pakiramma

  • Poverty embraced them from all corners. w/support of Pakiramma neighbors, she joined in one of Self Help Groups Vasundhara SHG.
  • Now w/a broad smile on face, she proudly says, “Twenty five years of my journey w/my group took me to a new world a new life. In one word I can say that joining group is a rebirth to me”.

Pakiramma Journey w/SHG

  • Along w/Pakiramma co-SHG members, she started providing loans to its members w/24 % rate of interest initially for meeting small consumption requirements.
  • So far, she took Rs. 14 lakhs loan from DHG. She invested 52 % of amount on various livelihoods & rest on children’s education, marriage, health & house construction etc. Initially, she started vegetable vending business as a street vendor.
  • She got a piece of land from Govt. in which she invested Rs. 3 lakh for land development.
  • She acquired various assets like house, 6 acres of wet land one car & an auto & jewellery.
  • She thru about her security in old age & deposited Rs. 2 lakhs in fixed deposit. So far she worked in 9 states Uttar Parades, Bihar, Rajasthan, West Bengal, Nagaland, Meghalaya, Tripura, Jammu Kashmir, & Gujarat.
Map location show in U.P, Tripura, Jammu Kashmir, & Gujarat

Map Location Show in U. P, Tripura, Jammu Kashmir, & Gujarat

Map location show in U. P, Tripura, Jammu Kashmir, & Gujarat

Handlooms & Handicrafts: Potential Employers in Non-Farm Sector

  • Handlooms & handicrafts may be named among such skills or occupations of non-farm skills or occupations of non-farm sector of rural areas.
  • Passed on from generation to generation as a legacy, these activities took an economic form & went on to become an alternative livelihood for farmers & rural people in off seasons.
  • Case w/handicrafts of India that have innumerable forms & widespread presence in diff. parts of our country, like bamboo crafts of Assam, Zari & Chikankari works & puppets of Rajasthan, Phulkari embroidery of Punjab, Bandhej of Gujarat, coconut shell craft of Kerala, rosewood inlay of Karnataka, Thanjavur paintings of Tamilnadu, Madhubani painting & Sujni art of Bihar etc.
  • Significance of handicrafts & handlooms has grown manifold in rural areas because of our agriculture system being mainly a rain fed farming system.
  • Report says that handloom provides employment to more than 43 lakh weavers & other associated people directly & indirectly. Out of this figure, approximately 77 % are women & allied workers.
  • Report further says that export of handicrafts (excluding gems & jewellery) was worth 34394.30 cr. Rupees in year 2016 - 17 & that of handlooms was worth 2392.23 cr. Rupees in year.
  • This modern version of handloom has managed to reach fashion centric upper strata of society. Approach has helped in revival of handloom products & increase in their demands in domestic & overseas markets.
  • To begin w/handloom sector National Handloom Development Programme is an umbrella scheme consisting of two major components, i. e. , overall development of handloom sector & welfare of handloom weavers.
  • Under this scheme, loans are provided at a concessional rate of 6 % for a period of three years.
  • In order to expand handloom market w/help of modern technology 21 leading e-commerce companies have been engaged for online marketing of handloom products.
  • Deendayal Upadhyaya Hastkala Sankul, Varanasi is worth mentioning among handloom & handicrafts promotion related initiatives. Snakul is artcum trade centre & crafts museum dedicated to public by Prime Minister in September 2017.
  • Launch of IHB in year 2015 by Prime Minster marked first Handloom Day on August 07,2015. IHB includes measures like widespread ‘Handloom Mark’ has been launched to assure quality & genuineness of handloom products to consumers.
  • In handloom technology have been introduced thru six central ‘India Institutes of Handloom Technology’ (IIHTs) in Varansi (Uttar Pradesh), Salem (Tamilnadu), Jodhpur (Rajasthan), Guwahati (Assam), Bargarh (Odisha) & Fulia-Shantipur (West Bengal), & four state IIHTs namely in Venkatgiri (Andhra Pradesh), Gadag (Karnataka), Champa (Chhattisgarh) & Kannur (Kerala).
Map location show in Varansi (Uttar Pradesh),Champa, kannur

Map Location Show in Varansi (Uttar Pradesh), Champa, Kannur

Map location show in Varansi (Uttar Pradesh), Champa, kannur

  • National Handicraft Development Programme (NHDP) strives for integrated development of handicrafts sector whereas ‘Comprehensive Handicrafts Cluster Development Scheme’ (Mega Cluster Scheme) has three fold objectives viz.
  • Aam Admi Bima Yojana (AABY), support in indigent circumstances interest Subvention Scheme etc. are some of welfare meaures for artisans.

Food Processing for Non-Farm Sector

Currently India stands second in terms of global food production & has good status in producing numerous food products like milk, ginger, banana, guava, mango & papaya.

Food processing sector faces various problems, which have a direct consequence on approach & required intervention for development of sector. Therefor sector needs support for infrastructure establishment & targeted incentives to draw investment for designing of processing capacity.

Food Processing Sector: Current Scenario

  • It contributes to around 14 % of manufacturing Gross Domestic Product (GDP) & 13 % of India’s total food exports.
  • Indian Govt. food market is valued at 1.3 billion USD & is growing at a Compound Annual Growth Rate (CAGR) of 20%. Processed food market is expected to grow to 543 billion USD by 2020 form 322 billion USD during 2016, at a CAGR of 14.6%.
  • Food Processing for Livelihood Sustainability
  • Food processing sector primarily engages a major share of workers from agriculture sector, who face disguised unemployment.
  • In this regard a well developed food processing sector is required w/higher level of processing which further helps in crop diversification, commercialization of agriculture, reduction of wastage, role in enhancing shelf life, improves value addition, ensures better return to farmers, promotes employment as well as creates markets for export of agro foods.
  • In process farmers will be able to raise their own level of income & employment.
  • Important factor for rising demand of processed food is change in food habits of working class who prefer readily available convenient foods.

Govt. Initiatives for Food Processing Sector

  • GOI thru Ministry of Food Processing Industries has taken steps to boost investments in food processing sector to boost investments in food processing sector thru Pradhan Mantri Kisan Sampada Yojana (PMKSY).
  • Major activities covered under Yojana are establishment of mega food parks, integrated cold chain & value addition infrastructure, expansion of food processing & preservation capacities, infrastructure for agro-processing, creation of backward & forward Linkages, food safety & quality assurance infrastructure, generation of human resources & Institutions.
  • PMKSY is expected to influence investment of Rs. 31,400 cr. For handling of 334 lakh million ton agro produce valued at Rs. 1,04,125 cr. , helping 20 lakh farmers & generating 5,30,500 direct & indirect employment in country by year 2019 - 20.

Future in Rural India

  • New practices & methods are being developed to enhance quality of processed food. It can be said that India has an advantage of huge agricultural land & this can help potentially to becomes an ideal sourcing destination for food products internationally.

Challenges & Way Forward

  • Key challenges identified overall for food processing sector in India are capital intensive functions, poor supply chain linkages, infrastructure bottlenecks, lack of skilled manpower & low adherence to quality standards due to low competition.

Swachh Bharat Mission (Gramin): Translating Mission into Milestone

  • Swachh Bharat Mission was launched on October 2,2014 on occasion of Gandhi Jayanti to achieve “Clean India” by 2019.
  • Unveiling of Swachh Bharat Mission is laudable not just for sanitation development, but for bringing about behaviour & mindset of change in millions of Indians.

Swachh Bharat Mission Gramin

  • Concept includes a planned approach towards dealing behaviour issues, providing proper infrastructure & coming up w/appropriate policies & delivery of services which helps in safe sanitation.
  • Main objective of this movement is to make India Open Defecation Free (ODF) by October 2,2019.

Overview of Rural Sanitation- Achievement (2014 - 19)

  • During period of 2014 - 19 Govt. was scheduled to spend Rs. 1.34 lakh Cr. For this mission in rural areas. As a result 9,21,10,150 household toilets were newly constructed since 2014 & 98.86 % people now have toilet facility in their premises.

Funding SBM-G

  • Swachh Bharat Kosh is established to collect & mobilise funds from non-governmental agencies & corporate sectors.

Social & Economic Impact of SBM-G

  • SBM –G is one of largest Behavioural change programme initiated by a Govt. in world covering 18 % of world population. It strengthens safety of women, girls & children & increases their workforce participation because of better health & hygiene.

Sustainable Concerns & Future Strategy

  • Issues of sanitation need to be dealt thru a sustainable process i. e. , w/o depletion over period of time sustainability we need to march an extra mile.
  • Thus, proper hygiene & use of toilets is to be done in a sustainable manner.
  • For instance, many people w/access to toilet facilities at their houses still defecate in open owing to pre-conceived beliefs
  • Substantial initiative including partnering w/various implementing agencies & voluntary organizations for better sanitation drive should be given impetus, both philosophically & monetarily.


  • Outcome & achievement of sanitation initiatives should not be assessed only in terms of number of toilets constructed but should ensure that there is proper & regular use of it & thus leading to cleanliness & hygiene in mind.

Non-Farm Sector in North- Eastern India

  • Meghalaya is one of four states of North Eastern Region that has a tribal base & is home to three major tribal communities: Khasi, Jaintia, & Garo their division into several clans.
  • Availability of limited land for cultivation signifies potential growth of non-farm sector.
  • All over State, tropical, sub-tropical, Mandarin, Orange, Lemon, Guava, Pear, Plum & local & region specific fruits like Myrica nagi (sohphie), Prunus nepalensis (sohiong), Eleagnus khasianum (sohshnag), Flemingia vestita (sohphlang), Docynia indica khasiana (sohphoh khasi), “chow chow” etc.
  • It can be observed that there is minimal infrastructure for development of non-farm sector.
  • If start ups are initiated w/idea to manufacture will get a major boost.
  • There is a credit link to schemes like PMEGP for educated unemployed youth, MUDRA & Start Up India, which are routed thru all banks in region & small scale industry is starting to pick up in a slow but at steady pace.
  • Meghalaya Cabinet has approved Meghalaya Start-up Policy 2018 to help budding entrepreneurs & create employment opportunities.
  • A lot of developmental work is required in state to develop non-farm sector. State is conferred w/abundant natural resources which are not utilized to its full potential.
  • According to entrepreneurs, w/various buyers’ local “haats” farmers.
  • Exhibitions should be organised where buyers & sellers can meet.
  • Value addition to spices, processing of handicrafts handloom, juices, orange squashes pickles, local fruit wines, crushed stones bakery, etc.
  • Handicrafts is one area where state can stand out as there are exquisite products made from bamboo, but products are limited only to state & not exported due to lack of facilities & scope.
  • Most of self help groups are women led. But State is batting menace of unemployment.
  • Potential of state is untapped, it is high time Govt. should intervene & give a boost to budding entrepreneurs who are full of promising ideas but are not getting right platform to showcase their potential.

- Published/Last Modified on: August 18, 2019


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