Kurukshetra September 2018: Sustainable Rural Development (Part - 1) (Download PDF)


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Key Topics included in this Article: PM Sampada scheme & Pradhan Mantri Krishi Sinchai Yojana, About National Agriculture Market (e-NAM), National Rural Livelihood Mission (NRLM).

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Sustainable Rural Development: Kurukshetra September 2018 (In English)

Dr. Manishika Jain explains Kurukshetra September 2018: Sustainable Rural Development

  • Pradhan Mantri Jeewan Jyoti Bima Yojana, Atal Pension Yojana, Pradhan Mantri Suraksha Bima Yojana

  • Pradhan Mantri Jan Dhan Yojana

  • Mahatma Gandhi National Rural Employment Guarantee Scheme

  • Shyama Prasad Mukherjee Rurban Mission (SPMRM)

  • Digital Technology in various Sectors

  • Pradhan Mantri Ujjwala Yojana

  • Govt. Empowerment Programs like Mahila Shakti Kendra, National Repository of Information for Women (NARI) and others

Agriculture for Rural Transformation

  • Govt. adopted 3 pronged strategy to increase investment, better infrastructure & governance in agriculture for sustainable rural development.

  • While core production activities are mainstreamed by ongoing centrally sponsored schemes w/broadening of their reach, reforms in agriculture marketing, contract farming, land leasing, price & trade policy & agriculture credit are introduced for inclusive development of rural India rather than agriculture as sector.

  • Agriculture employs almost half of workforce where alternate source of employment is limited.

  • While average investments in irrigated command development ranged from Rs. 2.5 to 3 lakh/ha, only Rs. 0.12 to 0.15 lakh/ha were invested in rain fed areas thru integrated water management program (IWMP).

Agriculture & Rural Prosperity

  • Farming & livestock rearing together provide abt. 67.2 % of income of agricultural households.

Expanding Focused Funds

  • Long Term Irrigation Fund w/initial corpus of abt Rs. 20,000 cr. was established in NABARD in 2015 - 16.

  • Food Processing Fund of Rs. 2000 cr. in NABARD for extending affordable credit to designated food parks.

  • Fisheries & Aquaculture Infrastructure Development Fund (FAIDF) & Animal Husbandry Infrastructure Development Fund (AHIDF) for financing infrastructure requirement of fisheries animal husbandry sector.

Higher Investment for Inclusive Development

  • Food processing is recognized as employment intensive priority sector in New Manufacturing Policy in 2011.

  • Specific incentives to producers & entrepreneurs are put in place thru PM SAMPADA scheme of Ministry of Food Processing Industries.

Making Natural Resources More Productive & Rewarding

  • Availability of land per household is 1.16 ha & water at 1544 m3/capita/annum.

  • For increasing operational holdings, NITI Aayog suggested Model Act on Agricultural Land Leasing. UP & U’Khand modified tenancy acts.

  • MP introduced separate bill on land leasing for optimum land use & occupational diversification.

  • Bringing irrigation to rain fed land increase productivity by 2.5 times.

  • PMKSY provides overarching convergence amongst programs of agriculture water resources & rural development.

  • It aims at end-to-end solution in irrigation supply chain from source to farm level applications.

  • Irrigation potential of 8.06 million ha is targeted by 2020.

  • Convergence w/MGREGA is envisaged to create abt. 5 lakh farm ponds annually.

  • Micro-irrigation is core focus to achieve per drop more crops.

  • Income increased 69 % to as high as 348% ( Rs. 1 lakh to 1.5 lakh/acre) over traditional cropping at farms of those household which adopted diversified cropping w/fruits, vegetables & spices thru drip irrigation in Chhattisgarh, AP, Telangana & others States.

Raising Farm Productivity to Boost Income of Rural Households:

  • Soil health card helps farmers know fertility status of his farm & get crop-specific prescription for right mix of fertilizers & manure needed to achieve higher productivity.

  • Promotion of Custom Hiring Centre (CHC) for agricultural machinery is being implemented under National Mission for Agricultural Extension & Technology.

  • Crop residue management in NCR region is given top priority thru new scheme to manage crop residue at farmer’s fields thru farm mechanization.

Relieving Rural Households from Risk

  • Pradhan Mantri Fasal Bima Yojana (PMFBY) is launched in January 2016 by subsuming multiple insurance schemes like National Agricultural Insurance Scheme, Modified NAIS, etc.

  • PMFBY is efficient & effective adaptation tool to cover risk in rural areas.

Rural & Agriculture Financial Inclusion

  • Institutional flow of credit to farmers has increased over 18 folds since 2000 - 01 to provide cheap credit to farmers.

  • Farmer, who repays loan on time, becomes eligible to get crop loan at 4 % rate of interest.

  • Post – harvest loans are being granted against Negotiable Warehouse Receipts (NWRs) w/benefit of interest subvention.

  • NITI Aayog prepared Model Act on Agricultural Land Leasing in 2016 for facilitating states to enact land leasing laws for agriculture so as to enhance operational holdings & investment in farming.

Diversified Income Augmenting Activities

  • Reforms in contract farming, tariff & tax regimes, export promotion, credit have been done for achieving optimum commercialization in agriculture along w/prioritizing of value chain development w/scale commensurate w/national income & employment.

  • Rapid decline in rural poverty in AP & Gujarat could be attributed to diversification in their farming during last 15 years.

Rural Infrastructure Development

  • Development is constrained by poor infrastructure as evidenced from rural road density, access to irrigation, power supply, market facility & network, godown, cold storages, cold chain & processing infrastructure. It is estimated that gap of 99 % exists in pack houses, 85 % in reefer vans, 10 % in cold storages & 91 % in ripening chambers.

  • On average one market yard is distributed abt. 463 sq. km (12km radius) against desirable level of one at every 80 sq. km (~5km radius).

Reinvigorating Value Chain in Rural Areas

Govt. has embarked upon ambitious program of upgrading 22000 rural periodic markets into Gramin Agricultural Markets (GrAMs) to serve as multipurpose platforms for assembly, aggregation & local retail.

Remunerative Price to Rural households

  • NITI Aayog has suggested 3 mechanisms of market assurance, price deficiency payment & procurement by pvt. stockists on MSP.

  • Comprehensive mechanism integrating all 3 is likely to be rolled out shortly to target atleast 40 % of marketable surplus of these crops.

  • National Agriculture Market (e-NAM) was launched on 15th April 2016 w/allocation of Rs. 200cr.

  • It is online inter – connectivity of e – mandis, aimed at ushering in much needed agriculture marketing reforms to enable farmers to get better price of their produce.

Integrating Small & Marginal Farmers w/Value Chain

  • NABARD under its Producer Organization Development Fund (PODF) has provided credit plus assistance to over 200 POs during last 4 - 5 years.

Promoting Livelihood through NRLM

  • 📝 National Rural Livelihood Mission (NRLM) as new generation public policy programme has sought promoting community based organizations (CBOs) as corner – stone of its strategy for addressing goal of poverty eradication.

  • 📝 NRLM has espoused multi – pronged strategy which includes:

    • Building dedicated support structure at various levels to mobilize poor & augment their capacities

    • Saturation of poor in phased way to include each & every poor household under fold of SHGs

    • Arrange linkages to CBOs to emerge as viable units providing services for livelihood generation

    • Encouraging participation of members in all decision – making process.

Progress of CBOs:

  • NRLM has adopted participatory identification of poor (PIP).

Structure of CBOs

📝 Self Help Groups (SHGs)

  • SHGs are most ubiquitous CBOs at grassroots.

  • SHGs are informal groups w/max. of 20 members who tend to hail from similar socio – economic background.

  • SHGs will subsequently open bank account for savings & get themselves graded to receive revolving fund (RF) & community investment fund (CIF). This would be followed by preparation of microcredit plan (MCP) to be able to receive bank loan.

Village Organizations (VOs)

  • VOs are at 2nd tier in CBO structure.

  • VOs are forming sub – committees which can give focused attention to areas like bank linkage & recovery management.

Cluster Level Federations (CLFs)

  • CLFs are 3rd level units under CBO structure.

  • CLFs are being formed for cluster of villages by integrating all VOs.

Functions of CBOs

Financial Services

  • Financial Services are prominent services being facilitated by CBOs.

  • Savings, credit & insurance are key services being accessed by members.

Bank Linkage

  • Bank Linkage to access larger capital has emerged as prominent activity of SHGs & their federations.

  • SHGs are expected to be credit linked w/bank after 4 - 7 months of their formation, & subsequently access multiple doses of credit to pursue income generating activities.

Other Services

Survey brought out diverse non – financial services being rendered by VOs which fall into 5 categories viz. , formation of SHGs/FPOs, training & audit, social issues & legal counselling, livelihood promotion, & convergence.


At program level, depth & width of outreach across states have not been uniform owing to bureaucratic hassles & resource constraints.

Financial Inclusion for Inclusive Growth

  • GoI has recognized that Financial Inclusion (FI) is imp. part of inclusive growth w/focus on delivering financial services at affordable costs to under – privileged sections of society.

  • 👌 Rangarajan Committee on Financial Inclusion (2008) had defined FI as process of ensuring timely access to financial services & adequate credit to vulnerable groups such as weaker sections & low income groups at affordable cost.

Image of Transforming India

Image of Transforming India

Image of Transforming India

Initiatives & their Impact

  • Nationalization of Banks during 1969 & 1980, wherein 20 pvt. Controlled banks were nationalized in 2 phases so as to include poor & marginalized sections among their reach & have effective credit control.

  • Next imp. step was introduction of area approach, thru Lead Bank scheme in 1969, for development of adequate banking & credit structure in rural areas.

  • Service Area Approach (SSA) was introduced in 1989 for planned & orderly development of rural & semi urban areas thru allotment of identified villages (15 - 25) to branch for taking care of financial needs of population in villages.

  • Imp. FI initiative was mainstreaming of SHG thru effective bank linkage program (SHG – BLP).

  • Started in 1992, program provided credit w/o collaterals to poor & brought in over 10 million poor women into banking fold & was able to access over Rs. 60,000 cr. of micro credit loans per annum & saves over Rs. 40,000 cr. per annum.

Major Breakthrough……!

  • For 1st time, 3 Social Security Schemes, viz. , Pradhan Mantri Jeewan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) & Atal Pension Yojana (APY) were brought in to serve goal of financial inclusion by increasing penetration of insurance amongst poorer/weaker sections of society thereby ensuring their family’s financial security.

  • PMJJBY provided life insurance coverage for death due to any reason to people in age group of 18 – 50 years (life cover upto age 55) having savings bank account. Life cover of Rs. 2 lakhs is available at annual premium of Rs. 330 per member.

  • PMSBY covered accidental death insurance for people in age group of 18 – 70 years w/bank account linked to their Aadhar card at annual premium of just Rs. 12.

Beyond the Numbers

  • Dubbed as world’s biggest financial inclusion drive, w/entry in Guinness Book of Records to boast, PMJDY has for 1st time brought over 32.25 cr. of people under ambit of formal banking network.

  • 4 years on, total balance in above no-frills accounts stands at Rs. 80674.82 cr.

  • National Payment Corporation of India (NPCI) has so far issued 24.19 cr. RuPay debit cards to accounts holders.

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Sustainable Rural Development: Kurukshetra September 2018 (In Hindi)

Dr. Manishika Jain explains Kurukshetra September 2018: Sustainable Rural Development

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- Published/Last Modified on: September 25, 2018


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