Rural Development

93%

Step 1: Recall the historical data about non-institutional credit sources. Step 2: In 1951, non-institutional sources (moneylenders, landlords, traders, relatives) accounted for 93% of total rural credit requirements. Step 3: This means institutional credit was almost absent in rural India at the time of Independence. Step 4: Presently, this percentage has come down to around 30% due to the expansion of institutional sources like cooperative banks and commercial banks. Step 5: This dramatic decline shows the success of rural banking expansion in India.

Small and marginal farmers and landless workers

Step 1: Recall the purpose behind the establishment of RRBs. Step 2: RRBs were set up to supplement the efforts of commercial banks and cooperative banks in providing rural credit. Step 3: Their main objective is to meet the credit needs of small and marginal farmers and landless workers. Step 4: However, loans are given only for productive purposes. Step 5: Initially 5 RRBs were set up in 1975, and their number grew to 196 by 2005 before being reduced to 56 through amalgamation.

A government quality certification showing graded and standardised produce

Step 1: Understand what grading and standardisation means in agricultural marketing. Step 2: Grading means classifying agricultural produce into different categories according to quality. Step 3: The Agricultural Produce (Grading and Marketing) Act was implemented in 1937. Step 4: The AGMARK stamp is given by the Department of Agricultural Marketing on graded goods to certify their quality. Step 5: AGMARK goods have a wider market and are sold at higher prices because consumers trust the quality standard.

A price announced by the government to ensure fair returns to farmers

Step 1: Understand the purpose of MSP in Indian agriculture. Step 2: MSP is a price announced by the government from time to time for about 24 agricultural commodities. Step 3: It ensures that farmers receive a fair and remunerative price for their produce, protecting them from market price fluctuations. Step 4: These prices are fixed based on recommendations of the Commission for Agricultural Costs and Prices (CACP). Step 5: Government agencies like the Food Corporation of India purchase crops at MSP and sell them at reasonable prices through the Public Distribution System (PDS).