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NATIONAL LAW UNIVERSITY ODISHA

SUBJECT

ECONOMIC DEVELOPMENT AND PLANNING IN INDIA

PROJECT ON
REFORM STRATEGY IN AGRICULTURE TURNING THE WHEEL OF RURAL INDIA

SUBMITTED TO:
MADHUMBRATA RAY SINGH

(ASSISTANT PROFESSOR)
NATIONAL LAW UNIVERSITY ODISHA

SUBMITTED BY- RAMESH KUMAR(2012/BALL.B/040 )

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TABLE OF CONTENTS

I. Introduction ............................................................................................................................................... 4 The Concept .............................................................................................................................................. 5 MAIN BODY................................................................................................................................................ 6 1. Agricultural Development Programs ........................................................................................................ 6 Community Development Programs (C.D.P.) ...................................................................................... 6 Intensive Agricultural District Program (lADP)-.................................................................................. 6 High Yielding Varieties Programs (HYVP) ......................................................................................... 7 National Commission on Agriculture ....................................................................................................... 7 Integrated Rural Development Program (IRDP)....................................................................................... 8 Farmers' Service Societies .................................................................................................................... 8 Green Revolution in India ......................................................................................................................... 8 Results ....................................................................................................................................................... 9 Environmental impact ............................................................................................................................... 9 2. Agriculture development in Five Year Plans .......................................................................................... 11 3. Factors for the Stagnation of the Indian Agriculture .............................................................................. 12 4. Rural Employment .................................................................................................................................. 13 Marginal Fanners and Agricultural Laborers (MFAL) ........................................................................... 13 Small Farmers Development Agencies (SFDA) ..................................................................................... 13 Integrated Dry land Agricultural Development (IDAD) ......................................................................... 13 Agro Service Centers (ASC) ................................................................................................................... 13 National Rural Employment Program (NREP) ....................................................................................... 14 Rural industrialization ............................................................................................................................. 14 5. Rural Credit Facilities ............................................................................................................................. 15 Co-operative societies ............................................................................................................................. 15 Land development banks ........................................................................................................................ 15 Regional rural banks (RRB).................................................................................................................... 15 National Bank for Agricultural and Rural Development (NABARD).................................................... 15

3|Page Commercial banks .................................................................................................................................. 15 6. Irrigation and Agricultural Inputs ........................................................................................................... 16 Irrigation ................................................................................................................................................. 16 Fertilizers ................................................................................................................................................ 16 Improved seeds ....................................................................................................................................... 16 Mechanization of agriculture .................................................................................................................. 17 7. Agricultural Laborers and Farm Women ................................................................................................ 17 8. Agricultural Marketing and Warehousing .............................................................................................. 18 Marketing ................................................................................................................................................ 18 Warehousing ........................................................................................................................................... 18 9. Role of Technology in Agricultural Development.................................................................................. 19 Conclusion .................................................................................................................................................. 20 10. Bibliography..20

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INTRODUCTION

India is a land of villages. More than three-fourths of the rural population is dependent on agriculture which contributes about 40% of national product. Agricultural sector of rural areas still follows the straight methods of cultivation due to which rural India still remains in a state of back-wardens where people had been living just at survival economy. Hence there is a need to understand the nature and level of motivation of the farmers and also the reason which would be meaningful to them in order to encourage their productivity efforts. Agriculture is the largest economic sector in India and 75% of the population is depends on agriculture. Indians were facing so many problems to improve agriculture sector. Its development is of principal importance to the progress of the economy as a whole. This project intends to explain the people working in rural areas with some concepts and ideas about various agricultural development programs in the rural areas. And how they are increases the capacity of production. Agriculture is an important part of the rural life and agricultural development programs should be devised in order to meet the needs of the farmers. Efforts should be made to bring science and technology closer to the farmers in order to utilize the limited available resources efficiently to increase the productivity of the land. The other important aspects like supply of agricultural inputs, farm machinery, irrigation facilities, cropping pattern and general aspects like health, housing facilities, sanitation, welfare programs for people should be given due importance. Indian agriculture faces promising opportunities in the production and marketing of high-value livestock products, fruits and vegetables, and fishery. To exploit these opportunities, India must liberalize its marketing and trade policies to encourage vertical coordination between farms, firms, and forks (supermarkets); facilitate increased flow of rural credit, especially to small holders, through, say, nonbanking financial intermediaries; and withdraw any special concessions in support of food grain policies.

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The Concept
In the background of Indian conditions the concept of agricultural development in the rural areas may be defined to mean the measure taken to bring about economic and social changes in the rural areas, especially for the poorest of the poor. Growth with social justice is the basic aim of Indian planning particularly in field of agriculture. In order to increase speed of the rate of agricultural development in rural areas, three major changes have been introduced so far. These are institutional change, technological change and infra-structural change. Institutional change refers to those measures which are related to agrarian relations constructive to the tillers of the soil and the size of the unit of cultivation. Technological change implies the method of farming and introducing give up raising technology. It consists of several biological and mechanical technologies such as high soft variety of seeds, chemical fertilizers, pesticides, use of machinery etc. Infrastructural change includes facilities like irrigation, credit, marketing transport etc. Technological change further refers to the knowledge used in improving agricultural production

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MAIN BODY 1. Agricultural Development Programs

The Development Programs, that were initiated by the government aimed at initiating and directing a process of change with a view to transform the social and economic life of villagers. This can be achieved by initiating various progressive schemes of socio-economic development programs. These programs related to the rural as well as agricultural development.

Community Development Programs (C.D.P.) The community development program was launched in 1952. This program was implemented in units of blocks; each block covers an area of about 400 to 500 sq. kms, with about 100 villages and a population of about 1 lakh. The finances for the community development programs were shared by the people and the state and central governments. The community development programs awakened the awareness in the people and made them clear their needs which they had not felt before. With the network of a matched structure of various extension teams, it has helped the tradition bound village communities to shed-off dogmas and overcome resistance to change and this has made its own impact on people's attitude and motivations.

Intensive Agricultural District Program (lADP)The IADP is popularly known as Package program which was started in 1961 in seven selected districts. This program aims at increasing the agricultural productivity by using modem technology and motivating the farmers for the adoption of the same. A similar program, serious Agricultural Area Program (IAAP) was started during 1964- 65 with the same objective, but with a less intensive staffing pattern, supervision, establishment of laboratories and centers. Later it has been merged with IADP.

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High Yielding Varieties Programs (HYVP) The cultivation of high soft varieties since 1966-67 has resulted in a substantial increase in food grains production. Wheat production has been more than doubled. Rice production has also increased. Bajra production has registered some increase but the progress under maize and jowar is relatively slow. For optimizing the yields of the available high yielding varieties of rice, it has been found essential to advance their solving time. Efforts have been directed to educate the farmers to raise rice nurseries in advance of the main kharif season. A special program for timely supply of seedlings, by raising community nurseries at tube well points and on government farms, was undertaken in three command areas in Bihar.

National Commission on Agriculture This commission was set up in 1970 to examine the progress of agriculture in India and to make recommendations for its improvement and modernization. It has submitted 24 interim reports on different subjects including fertilizer distribution, seed multiplication, agricultural research, extension and training, credit services for farmers, reorientation of several developmental programs, modernizing irrigation systems, command area development, exporting and market facing of agriculture produce, land refers, rural employment, general necessities In rural areas etc. It has also prepared the state-wise recommendations based on climate and cropping pattern. During 5th five year plan on recommendation of NCA, Whole Village Development Program (WVDP) was established with an objective of promoting welfare of the people by equitable distribution of the benefit of the development. It has adopted a whole village approach for overall development of the land, efficient water management, and adopting cropping pattern according to irrigation facilities thus, improving the en- tire village situation.

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Integrated Rural Development Program (IRDP) This was initiated in the year 1980 in about 5000 blocks throughout the country. The IRDP involves the development of the rural areas and people belonging to the weaker sections such as the small and marginal farmers, tenants and share croppers, landless laborers, rural artisans, scheduled cases and tribal communities. The IRDP aims at integrating field program reflecting the economic activities of the rural families, whose employment and development were the basic objectives. District Rural Development Agencies have been set up in all the districts in the country to implement IRD program. This program concerns with the agriculture, animal husbandry, small scale industries, marketing, forestry, fisheries etc. Till 1990-91, 29lakhs of people were reported to have benefited from this IRD programmed. Farmers' Service Societies The objective of the societies is to help farmers, particularly small and marginal farmers and agricultural laborers by providing credit and services for increasing employment, production and income. These are financed by commercial and cooperative banks.

Green Revolution in India The introduction of high-yielding varieties of seeds after 1965 and the increased use of fertilizers and irrigation are known collectively as the Green Revolution, which provided the increase in production needed to make India self-sufficient in food grains, thus improving agriculture in India. Famine in India, once accepted as inevitable, has not returned since the introduction of Green Revolution crops. Of the high-yielding seeds, wheat produced the best results. All India Radio (AIR) played a vital role in creating awareness for these methods. Along with high yielding seeds and irrigation facilities, the enthusiasm of farmer mobilized the idea of agricultural revolution and is also credited to All India Radio.

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Results The introduction of high-yielding varieties of seeds after 1965 and the increased use of fertilizers and irrigation are known collectively as the Green Revolution, which provided the increase in production needed to make India self-sufficient in food grains, thus improving agriculture in India. Famine in India, once accepted as inevitable, has not returned since the introduction of Green Revolution crops. Of the high-yielding seeds, wheat produced the best results. All India Radio (AIR) played a vital role in creating awareness for these methods. Along with high yielding seeds and irrigation facilities, the enthusiasm of farmers mobilized the idea of agricultural revolution and is also credited to All India Radio. M.S.Swaminathan had contributed towards the success of green revolution. Environmental impact The environmental impact of excessive use to chemical fertilizers and pesticides was only revealed as years passerby. Punjab had been selected by the Indian government to be the first site to try the new crops because of its reliable water supply and a history of agricultural success. In 2009, under a Greenpeace Research Laboratories investigation, Dr Reyes Tirado, from the University of Exeter, UK, conducted a study in 50 villages in Muktsar, Bathinda and Ludhiana districts of Punjab that revealed chemical, radiation and biological toxicity there was rampant. About 20% of the sampled wells showed nitrate levels above the safety limit of 50 mg/l, established by WHO. The study connected this finding with high use of synthetic nitrogen fertilizers. With increasing poisoning of the soil, the region once hailed as the home to the Green Revolution, now due to excessive use of chemical fertilizer, is being termed by one columnist as the "Other Bhopal". For example, Buddha Nullah, a rivulet which runs through Malwa region of Punjab, India, and after passing through highly populated Ludhiana district, before draining into Sutlej River, a tributary of the Indus River, is today an important case point in the recent studies, which suggest this as another Bhopal in making. A joint study by PGIMER and Punjab Pollution Control Board in 2008,revealed that in villages along the Nullah, calcium, magnesium, fluoride, mercury, beta-endosulphan and heptachlor pesticide were more than permissible limit (MPL) in ground and tap waters. Plus the water had high concentration of COD and BOD (chemical and biochemical oxygen demand), ammonia, phosphate, chloride, chromium, and arsenic and chlorpyrifos pesticide. The ground water also contains nickel and selenium, while the tap water has high concentration of lead, nickel and cadmium. In addition to large inputs of

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fertilizers and pesticides, the Green Revolution in India was made possible in large part by a dramatic increase in irrigation, particularly from deep groundwater sources. The exploitation of groundwater resources allowed farmers to double-crop (grow crops even during the dry season) and to grow water-intensive crops such as rice in areas that were traditionally unsuited for rice production. This growth in irrigation has led to an alarming drop in the water table in a number of key agricultural Indian states, such as Punjab, where the water table is reportedly falling by about 1 meter per year. In other states, the problem is worse; in Gujarat, the water table is falling by as much as 3-5 meters per year. What this means is that without a dramatic change in agricultural practice, groundwater resources could be depleted within a few years. In the case of Gujarat and other coastal areas, intrusion of seawater could render underground aquifers useless for human consumption or agriculture

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2. Agriculture development in Five Year Plans

While planning to develop agricultural sector Planning Commission has taken the following objectives: A. increase of agricultural production, B. generation of additional employment from agricultural sector, C. reduction in the inequalities of income, and D. reduces the pressure of population on land. 1. Between 1951-91- production of food grains had increased by 245%, oil seeds by 260%, sugarcane by 320%, cotton and jute by 200% and wheat production increased by 816%, an excellent result. 2. Spectacular progress has taken place in the use of agricultural inputs. Taking mid 60's statistics as a base, till 1991, irrigated area utilized increased, as per record, from 28 million ha to 74 million hectares, fertilizer consumption from 0.3 million tons to 12.6 m. tones area under high yielding varieties from 1.5 to 64 m. ha, pesticide usage from 6 to 84 thousand tones. Due 10 some shortcomings like uncertainty of rainfall, limited use of technology, famines, droughts, exploitation by middle men etc, and the targets of the five year plans were not achieved satisfactorily. Still we can see the tremendous progress from first to seventh five year plan. The 8th five year plan is in progress now with an objective of achieving self-sufficiency in food grains and generating surplus production for exports.

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3. Factors for the Stagnation of the Indian Agriculture

The real problem of Indian agriculture is that there are 100 many people who are dependent on it causing overcrowding. Illiteracy and unemployment are aggravating poverty among rural people. Other factors affecting the agricultural production adversely India is pointed out by the Agricultural Production Team. They are: 1. Dispersal of the limited available resources over a wide area which could not exert appreciable impact on the productivity of agricultural land 2. Unconformity of the state plans with the targets lay down by the Planning Commission, 3. Lack of organization of the country wide productivity movement in agriculture, 4. Non-availability of the adequate inputs particularly fertilizers. 5. Lack of concerted actions on the part of the Government to develop irrigation facilities through major, medium and minor works, 6. Under utilization of the existing minor irrigation facilities and 1ack of effective steps on the part of the government to set-up a suitable machinery to ensure maximum utilization, 7. Lack of support from the Rural Electrification Corporation for irrigation projects, 8. Insufficient implementation of land reform measures, 9. Small investment in industries producing agricultural inputs, 10. Non-adoption of recommended practices by the farmers, and 11. Poor techniqJ1es of production. Keeping these factors in view, Indian government has taken up several program oriented towards agricultural development since Independence.

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4. Rural Employment
In order to improve the living standards of the farmers various agencies were formed. The Government of India set up a committee with M. Bhagavathi as chairman to suggest schemes like rural electrification, minor irrigation works etc. It also suggested agriculture-based schemes which lead to agricultural development; the government took the following measures to create employment in the agricultural sector. Marginal Fanners and Agricultural Laborers (MFAL) Under this scheme, marginal farmers' families were to be assisted with subsidized credit support for agricultural and subsidiary occupation like dairy, poultry, fishery, horticultural operations etc. It was started in 1969. Small Farmers Development Agencies (SFDA) The objective of the scheme was to make available to small farmers the credit facilities to enable them to make use of the latest technology to practice intensive agriculture. In the year 1969, it was established. Integrated Dry land Agricultural Development (IDAD) Under this program, permanent works like soil conservation, land development, water harvesting Were undertaken. These programs were labor intensive and create employment. More importance was given to dry land agriculture. Agro Service Centers (ASC) This scheme provided assistance for self employment for agricultural graduates in organizing agricultural machinery, supply of inputs etc. thus contributing to technical development of agriculture in villages.

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National Rural Employment Program (NREP) The food for work program was started in 1977 to generate gainful employment in the rural areas. Due to some short comings, it was restructured and renamed as National Rural Employment Programmed from 1980. Besides employment, it works for strengthening of the rural infrastructure. Till 1988-89, 3950 lath man days of employment was generated under the scheme. All these schemes taken up by the government provided additional employment in the agricultural sector leading to agricultural development. Apart from this, rural industrialization also increases employment opportunities in the rural sector.

Rural industrialization Agricultural development is a pre-requisite for rural industrialization. Processing of agricultural produce used to suffer due to lack of processing units near the production areas. Bulk processing of products turned out by agriculture has been done in urban-based industries. This delay in the processing of the produce used to reduce the quality. So, a need was there to establish rural industries which also create employment. Types of rural agricultural industries that can be established are; for processing of rice, cotton ginning, oil extraction, jute manufacturing and extraction of sugars, and also for canning and preservation of fruits and vegetable, preparation of jams, pickles and other food products etc. A large number of persons can be absorbed and provided with full time as well as part time employment in these rural industries.

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5. Rural Credit Facilities

Agricultural credit is the most important input in all agricultural development programmers. Farmers need finance for making considerable improvement in land and several other inputs like fertilizers, seeds, pesticides etc. They borrow money from money lenders, commission agents, land lords, relatives in which malpractices are common. The credit issued by cooperative societies, land development banks, commercial banks, regional rural banks is safe and objective oriented. Co-operative societies This is the cheapest and best source of rural credit. The rate of interest is low. Since 1951, they are working in the rural sectors as Primary Co-operative Credit Societies which are 88,000 in number. They are covering 80% of villages and it provides credit around 33% of total credit needs for agriculture. Short and medium term loans are provided by these banks. Land development banks The need for long term loans can be satisfied by these banks. Around 1200 banks are there throughout the country and issue loans mortgaging the land. Regional rural banks (RRB) These were set up in 1975 specifically to give direct loans to small and marginal farmers and agricultural laborers. There are around 200 RRBs in our country and over 90% of the loans are given to the weaker sections in rural areas. National Bank for Agricultural and Rural Development (NABARD) This has emerged as an apex refinancing institution for agricultural and rural credit since 1982. It provides all types of production and investment to agriculture and also provides loans to smallscale industries and cottage industries. Commercial banks They extend their financial support to agriculture both directly and indirectly. Direct finance for agricultural operations, indirect finance for fertilizers, & other inputs, processing, marketing, ware housing etc. With State bank of India and rural banks, they extend their financial resources to farmers. Apart from all these societies, State banks, Central banks, Indian government provides loans at low rate of interest.

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6. Irrigation and Agricultural Inputs

Progressive agriculture demand improvement in inputs and methods. Various aspects of agricultural inputs have been considered here. Irrigation Water is an indispensable input for agricultural production. Till 1991, 83 m.ha of irrigated area was recorded out of 180 m.ha of gross cultivated area. The important development programmers like Intensive Agricultural Programmers and High Yielding Varieties Programmers can be undertaken only in those areas assured of irrigation. Thus there is every necessity of increasing the irrigated area. Various irrigation schemes were implemented by the government. More emphasis has been given to the construction of dams, canals, field channels, minor irrigation projects, drainage schemes, exploration of ground water, and maintenance of distribution systems are some of the important issues that are to be considered by the government to increase the irrigated area. Fertilizers Fertilizer industry made rapid progress during the past decade. Consumption of fertilizer in India per ha came up to 76 kegs according to the statistics of 1990-91. Lack of assured supply of water and steep rise in the fertilizer prices are limiting factors. Farmers are offered with subsidies due to high prices of fertilizers by the government. Now-a-days, fertilizer strategy is oriented towards increasing use of organic manures, FYM and urban and rural compost. For balanced use of fertilizers, farmer's training programmers, demonstrations are conducted and soil testing laboratories are also established to help the farmers in applying optimum quantities of fertilizers. Improved seeds High yielding varieties and hybrids contributes to more than 20% increase in the production. So, farmers should be informed with improved seeds, disease and pest resistant varieties. Till now 64 m.ha of area is under high yielding varieties cultivation. The government is giving attention to research in evolving better seeds suitable to our field conditions, better distribution of seeds and providing credit to purchase the them etc. To step up the production of better seeds National Seed Corporation and State Farms Corporation of India were set in 1960s.

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Mechanization of agriculture Mechanization of agriculture has resulted increased agricultural production and reduction of costs replacing traditional tools and implements with up-to-date farm machinery. Use of tractor for sloughing seeds for sowing, and thresher for the harvested are some examples. Besides this machinery, electric motors and diesel engines can be very usefully adopted for cane crushing, oil seed crushing etc. Increase in statistics in the purchase of farm machinery shows progress of mechanization in agriculture. Thus mechanization leads to agricultural development.

7. Agricultural Laborers and Farm Women

Agricultural labor is mostly provided by economically and socially backward sections. They work for laid lords and do not own land for themselves. The problem of landless laborers is most serious problem in rural sector. Agricultural wages given to them are also very low. Government has passed a bill in 1948 which is known as Minimum wages act according to which wages should be fixed according to total costs and standard of living. Labor cooperatives helps in providing employment for agricultural labor during off season; In 1975, a twenty point programmed was started with some measures like provision of housing facilities, abolition of bonded labor, distribution of land etc. On the other hand women in every family in villages involve in agricultural operations like planting, weeding, fertilizer applications and other activities. Effective contribution by farm women is possible only when adequate opportunities are provided to them to learn the latest technology. They should be informed about recent research by All India Radio and television programmers and also by actual field demonstration. Education connecting with agriculture should be imparted to them.

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8. Agricultural Marketing and Warehousing

Basic facilities like storage, cheap transport, prices in the market should be provided to the farmers for effective marketing. Marketing The government has taken various steps to improve the conditions of agricultural marketing. Regulated markets eliminate the unhealthy market practices and ensure fair prices. Cooperative marketing Societies offers collective bargaining, storage of the produce in their own warehouses, control the supplies, eliminates the middle men and adulteration. Apart from selling of the produce of the farmers, They supply essential inputs like seeds, implements, fertilizers etc. Promotion, grading, standardization of agricultural commodities can be done by agricultural marketing agencies. The National Agriculture Cooperative Marketing Federation (NAFED) which is made up of all cooperative societies promotes excellent interstate as well as export marketing. Warehousing Warehousing facilities are necessary to prevent the losses arising out of defective storage and also allow the farmers to sell their produce at proper time for profitable prices. Food Corporation of India and Central Warehousing Corporations located at centres of all India importance have their own go downs for storage. These CWCs own 465, ware houses with a total capacity of 6.4 million tones. State Warehousing Corporations own 1300 go downs with a storage capacity of 8.5 million tones. These have a rural level importance as farmers can directly deal with and store their agricultural produce.

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9. Role of Technology in Agricultural Development

In the context of agriculture, adoption of modem technology needs evidence. For example if there is any substantial increase in the yield of a crop, that itself is an evidence of application of recent technology. New farm technology should decrease the cost of input without decreasing the output. New mechanical, biological technologies such as improved machines, seeds, fertilizers and pesticides have resulted in enhanced production without increasing the total input. It benefits the farmers in terms of increased production and consumers in terms of reduced prices for the same quality or same prices for better quality. In the recent years farm technology has played a significant role in enhancing global food production. The inter linkages between agricultural development and role of technology can be expressed with a schematic model. New farm technology cannot produce result of its own unless it is adopted by the farm population. So farmers are encouraged to undertake the modem methods in order to improve their status of living.

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Conclusion
The agricultural development programmers that are implemented for the development in the community in terms of providing technical skills for better living can be achieved if the level of motivation of the people in terms of their present deprivations and future requirements are well understood. Though there are many schemes for the development of rural agriculture they have not reached the target groups up to a satisfactory level. Therefore, by using proper methods attempts should be made to motivate them through an emphasis on the deprived need areas. As India is by and large an agricultural country with a vast segment of her population engaged in agriculture and allied pursuits, it is the rate of growth of the Indian rural agricultural economy which determines the overall growth rate of the national economy.

Development of agricultural rural economy and the improvement of the village life are the core concern of economists and also of the agriculturists. This is the biggest challenge before the nation as majority of rural population is still living below the poverty line. The rural folks are mainly engaged in agriculture and allied sector which is still in a backward stage. The constraints in the agricultural development in rural areas need to be removed out and country should be made self-sufficient by concentrating on the achievement of the goals of the agricultural development programmers. 10. BIBLIOGRAPHY http://www.fibre2fashion.com/news/association-news/sica/newsdetails.aspx?news_id = 48601. http://www.prsindia.org/parliamenttrack/report-summaries/swaminathan-report-national commission-on-farmers--662. http://www.un.org/esa/sustdev/csd/csd16/PF/presentations/farmers_relief.pdf. http://www.stwr.org/food-security-agriculture/one-farmers-suicide-every-30minutes.html. http://www.macroscan.org/anl/mar08/pdf/farmers_suicides.pdf

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http://www.barcjaipur.org/admin/cat-images/catImg_1321097184.pdf http://www.civilserviceindia.com/subject/Essay/farmer-suicides.html http://timesofindia.indiatimes.com/city/rajkot/40-year-old-farmer-commits-suicide-inRajkot village/article show/15375639.cms?