Plans and Schemes Implemented for Agricultural Development

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1 CHAPTER 2... Plans and Schemes Implemented for Agricultural Development 2.1 Introduction Rural development is a long term continuing approach aiming at the improvement of the economic and social life of the rural people. Rural development like development in general is multi-dimensional. In the purely economic sense it covers development of the agriculture and applied activities and social facilities, besides development of human resources in the rural areas. During the sixth plan ( ), emphasis was laid on rural development and not only on agricultural development. The union government is aware of the need of carrying the process of development in the villages for the benefit of poor masses. Rural development, as per the World Bank perspective, focuses on poverty and inequality and thus involves a strategy designed to improve the economic and social life of specific group of people, the rural poor. Any rural development program should consists of projects to raise agricultural production, create new employment opportunities, improve health, education, housing, provide communication and develop institutions. It is the approach or operational design to bring about the desired positive changes in the socio-economic and cultural life of the rural people. It is both agricultural and non-agricultural aspects of rural life and is the backbone of Indian economy. The basic requirements for economic growth, viz. saving and investment and expanding market for industrial product ultimately depend upon the rural development. This programme must be designed and implemented for the development of agriculture and allied activities, rural artisans and rural industries. To ensure the integral development of the population, its economic and social productivity and work satisfaction is highly desired.

2 23 The main themes of rural development are: (i) To achieve enhanced production and productivity in rural areas (ii) To bring about a greater socio-economic equality (iii) To bring about a special balance in social and economic development (iv) To bring about improvement in the ecological environment so that it may be conductive to growth and happiness (v) To develop broad based community participation in the process of development Achievement of rural development implies the strengthening of economic base of the rural population so as to raise their living standards. The policy must aim at maximising output through agricultural development. 2.2 Significance of Rural development The rural development programmes occupies significant position in India s economic planning, as nearly three-fourth of its population lives in villages. The significances are divided into three parts: (A) (B) (C) Social significance Economic significance Political significance (A) Social Significance The large number of farmers and rural poor are suffering from all sorts of problems regarding finance, agricultural inputs, production and marketing. These programmes provide a composite package to solve all these problems. (i) Social Change Rural development programme educate rural poor in such a way so that they may appreciable social changes rather than oppose them. (ii) Best utilization of resources The rural employment and other development schemes for human and natural resources can be best utilized in the interest of nation (iii) Infrastructure facilities

3 24 The rural employment, by and large, the basic amenities such as wider roads, schools and health centres are the problematic areas which require immediate solutions. Therefore, rural development programmes of integrated nature are of great significance in rural areas. (B) Economic significance (i) National Income Though the share of agriculture is declining after , still it is single most important sector contributing highest to the national income. The more developed a country, the smaller is the contribution of agriculture to national output. (ii) Employment and source of livelihood The size of labour force in agriculture increased at faster rate over the years. According to an official estimate, seven out of 10 persons are engaged in agriculture to earn their livelihood. (iii) Industrial development Agriculture has been source of raw materials to India s leading industries - cotton, jute, sugar, leather and plantation industries, and all these depend agriculture directly. (iv) Internal trade and transport It is the trade to buy raw materials and food-grains, etc. to supply to industries and consumers, respectively. The volume of trade definitely depends on the economic health of agriculture. (v) International Trade Agricultural contributes a very large part of exports and is an important segment of import of the country. (C) Political significance Stable and developing rural economy can help in political stability which is equally important for economic development.

4 Plans and schemes implemented before independence This section comprises the features of important schemes attempted for implementation during pre-independence period, whereas the schemes implemented after-independence has been provided in the subsequent section Sriniketan Experiment Rabindranath Tagore s experiment at Sriniketan was aimed at both the economic as well as the moral rehabilitation of the rural community. Tagore s ideas and influence inspired and penetrated every corner of Sriniketan. The chief obstacles to the villagers were monkeys, malaria and mutual destruct, resulting in poverty and debt. A school was established for boys and girls of the village. In school, training was given to boys and girls in dormitory, kitchen-garden, diary and other crafts. Villagers were demonstrated the utility of these in home, in garden, and also, in the village. The use of new breeds of poultry, cows, vegetables, manures and implements were introduced. Notable results were achieved in small area and in a few villages. There was a noticeable increase in the standard of living and confidence of the villages Marthandum Project This rural reconstruction programme was initiated by Spencer Hatch at Martandum in Martandum Rural Reconstruction Centre was opened with a five sided programme, developed under emblem of The Five-sided triangle comprising spirit, mind, body, economic and social side. The philosophy of rural reconstruction embraced principles known as pillars. These principles were: (i) The programme of rural reconstruction was peoples own (ii) People of ail countries were to be included (iii) Help the people to help themselves upwards on ail sides of life (iv) It is poor who requires more help, and therefore, reach the poorest

5 26 (v) Maintain a comprehensive programme (vi) Keeps simplicity as the key-note (vii) Spirituality should be basis of every programme (viii) Close co-operation between the rural people and the government officials is a must (ix) Emphasis should be on training of workers The work on villages was largely carried out through clubs. To meet the physical, mental and spiritual needs of the people, social activities were initiated in the health centres, libraries and sports clubs. Co-operation in work, in play and in all activities of life was successfully emphasized. In fact, the centre has succeeded in changing the psychology of the people The Gurgaon Scheme This scheme was a new technique of village development, induced by F.L. Bragne in Gurgaon district in The Gurgaon scheme claimed to deal with the whole life and the activity of the peasant and his family and to present a complete remedy from the terrible conditions in which he lived. The development work was taken up in the Gurgaon scheme under these following aims: (i) Institutional work comprising the setting up of schools, women institutes and health associations (ii) Rural sanitation work with a view to improve living conditions in the villages (iii) Agricultural development programme under which farmers where exhorted to setup model farms, use improve seeds, adopt Gurgaon plough and other improved implements and pesticides. (iv) Co-operation was regarded as the cement in the building of development. (v) Co-ordination and publicity were made the responsibility of the uplift workers.

6 27 The scheme looked grand but it was not to cast or take roots. However, it can t be denied that the scheme made greater contribution to the cause of rural reconstruction in India The Baroda Movement This rural reconstruction programme was started in 1933 in a group of villages around Kosamba of Navasari district. The centre was established for all round development of the rural people. The following points were regarded as the basic ones in the programme. There should be a comprehensive programme of improvements carefully organised, for improving all aspects of rural life. (i) Increased agricultural production holds the key to the success of the movement. (ii) The Block team should work unitedly and with a single aim and its activities co-ordinated (iii) The agency in the villages through which to assist every family should be panchayat and co-operative, the village school and library should be the centre for most activities. Due to a number of factors the Baroda experiment was a great success. The administrative and technical services were organised on the pattern of advanced provinces. These initial advantages were determining factor in the form in which the movement was developed and the success achieved in its working Sarvodaya Scheme This intensive scheme for rural reconstruction was the embodiment of principles of Mahatma Gandhi. Gandhiji was appalled by the ignorance, disease and poverty of rural people and dreamt of village reconstruction that would fire imagination of village people and lead them through self-help to ensure ample flood for all, adequate health protection and medical services, free education, local self government, in short to make the village life rich and happy, so that the village youth would not be tempted to migrate to big congested cities.

7 28 The intensive scheme for rural reconstruction was launched by the then Bombay Government, The scheme include plan relating to education, agriculture, co-operation, village industries, public health, sanitation and social welfare. The primary responsibility of rural reconstruction rested on the Sanchalak. The sarvoday movement was a comprehensive effort in rural reconstruction. It was on attempt to integrate the co-operative organisations and non-official agencies in the sphere of rural reconstruction Firka Development Scheme This scheme derived its inspiration from the ideas of Mahatma Gandhi, and has to attract the rural problems as a whole. The long term plan was designed for further attainment of self-sufficiency through agricultural, irrigational, development of Khadi and cottage industries. This programme was first launched in 34 Firkas (regions) in By the year 1952, total number of 108 Firkas were include in this programme. The selected Firkas were placed under trained rural welfare officers. The Gram service centres provided the vital link in the implementation of the plan. Under the scheme, an attempt was made to encourage local leadership and to install in to them the philosophy of self-help. The special achievements of the scheme were providing rural water supply schemes, completing works of urgency and encouraging cottage industries. The excellent work and result of the Madras Firka development Scheme" have been appreciated by the central Government. The scheme was later merged with the National Extension Services in

8 Evaluation of Early Attempts: In the preceding section, some of the socio-economic development schemes of pre-independence period have been discussed. On the basis of such discussion the following conclusion can be drawn. It is worth noting that all the attempts for rural development were characterised by initial objectives followed by a period of declining activity and usually ending in absence of the scheme. The planners of modern India had been well-aware of the schemes. It seems that the schemes have failed to impress them. The views of the planning commission regarding different schemes have been nicely summed up in first plan thus: All the departments of central Government... approached the villagers from their own aspect to work and as such could not leave a permanent impression on them of the social importance of the multifarious scheme. The reason attributed to this are as follows: (i) various programmes depended too much on the government financing which were quite inadequate (ii) Theoretical advice needed to be supplemented by practical aids and demonstrated which were lacking (iii) The programmes lacked intensive action (iv) There was no definite, inspiring and attractive goal for villagers which could draw their spirit to work for the improvement in their standard of living (v) ' There was a lack of initiative from the people which is very essential for the success of the schemes. (vi) The experience of the villagers should be respected and should not be prejudicially discarded.

9 Economic Technology after Independence After independence, our government designed new approaches to rural development through comprehensive planning and implementation of a number of development programmes. The nature and dimension of the problem of rural India being very much complex and complicated, nothing spectacular could be achieved on this front. The real initiative for rural development was taken after independence with the starting of planning era in In the subsequent section, a brief discussion on the various schemes has been provided which played meaningful role in the socio-economic advancement of modern India Land Reform Schemes Land reforms have been on the national agenda of rural re-construction since independence. The first scheme introduced by the Government of free India for the economic development of the rural poor was the scheme of Land Reforms. This scheme aimed at redistributing ownership holding from the view point of social justice, and reorganization operational holdings from the view point of optimum utilization of land. Studies on this scheme revealed that the scheme failed miserably and did not bring the desired result. Land Reform is very much essential for the state because of the fact that 75% of the holdings constitute between 0-2 hectares and they also cover 40% of the cultivated area. Therefore, land reforms measures like the protection of the rights of the tenants, imposition of ceilings on the land and redistribution of surplus land are some of the measures which merit attraction. The Orissa land reforms act 1960 was also a step to improve the condition of tenant. Though the schemes were initiated in the early fifties, these were neither been completed nor strictly implemented in many parts of the country.

10 Community Development Programme (CDP) Community development is a movement designed to promote better living for the whole community with the active participation and on the initiative of the community. The aim of the CDP is to secure fullest development of the materials resources of the areas, and thus to raise the rural community to higher level of living. The scheme which was launched with the U.S. and for the poorest of the poor of the country failed on its mission. The backward class and other under privileged sections of the society which constitute a significant proportion of the population did not receive much programme benefits. Improved seeds and chemical fertilizers which were freely made available were taken away by the rich and influential people in the villages. The basic idea of this programme is to mobilize the available manpower in the country for the revitalization of the semistagnant Indian rural economy Community Projects Initiated in 1952, the integrated scheme of community projects was aimed for the transformation of the social and economic life of the villages. The community projects area is mainly divided in to 3 development blocks each consisting of about 100 villages with a population of about 60, 000 to 7, 000, which is subsequently divided into the group of five villages and each group being the field of operation for one village level worker (VLW). The main objectives includes increased agricultural production through scientific knowledge, extensive co-operation and increased community efforts National Extensive Service (NES) National extensive service is the agency for the community development in which the Government of India has launched various programmes. The development of fundamental infrastructure in rural areas was given a first priority in this scheme, which includes water supply and sanitation, land reforms, agricultural marketing, communication, irrigation, education, housing and social

11 32 welfare in rural areas. Later in 1969, the central Government transfers it to the state governments, which results its decline and death Small Farmers Development Agency (SFDA)/ Marginal Farmers and Agricultural Labourers (MFEL) Projects During the fourth plan, two new agencies, i.e., small farmers development agency and marginal farmers and agricultural labourers agency were established on the recommendations of the All India Rural Credit Review Committee, which report that big farmers obtained more credit than they should have while small farmers were given less. So during the fourth plan, SFDA and MFAL projects were started to improve the economic condition of the weaker sections. The main objective of the SFDA was to make available credit to small farmers to enable them for making use of the latest technology to practice intensive agricultural and diversify their activities. The MFAL program On the other hand emphasized the creation of subsidiary occupation and provision of employment for the marginal farmers. During the fifth plan period, on the basis of the recommendations of the national commission on agriculture the MFAL was merged with SFDA. It should be mentioned here that the MFEL agency doesn t administer any economic programme but it assists other institutions and primary co-operative societies, to implement its programme. But the agency is responsible for latter s access to institutional credit facilities Drought Prone Area Programme (DPAP) This program was introduced by the government to provide relief to the farmers of drought prone area, to tackle the special problem faced by farmers of those areas which are constantly affected by severe drought conditions. In Orissa, DPAP is being operated in 47 blocks of eight districts namely Boudh, Sonepaur, Dhenkanal, Phulbani, Klahandi, Bolangir, Bargarh and Nayapada.

12 33 Basically, DPAP aims at promoting more productive dry-land agriculture with the following objectives: The soil-water-climate resources of the area Development and productive use of water resources of the area Soil and moisture conservation including promotion of proper land use practices Livestock development including development of pasture and fodder resources Restructuring of cropping pattern Development of subsidiary occupations Integrated Rural Development Programme (IRDP) IRDP is an important scheme for the poor in the rural sector. It is operated through DRDA agencies. It aims at reducing unemployment in rural areas and provision of assets and inputs to the rural poor in order to enable them to rise above the poverty line on a lasting basis. The target group includes people who are below the poverty line. IRD is a strategy to improve the economic and social life of rural poor and the rural weak in the overall spectrum of development and growth.,the programme is the joint venture of the state and central government. At present IRDP is the most important programme with following criteria for the selection of districts. * Economically backward districts that had considerable development potential Districts in which problems of under employment were more acute Formulation of household plans for the selected families Preparation of district plans on the basis of blocks and resources and target allocated from the state level sectors Provisions of loans and subsidies Assistance to the selected families in the acquisition of desired assets or in starting up the planed schemes Monitoring of the progress of implementation Provision of input, service and marketing facilities

13 34 Officially, it has been claimed that the number of families below the poverty line has been brought down from 51% in 1980 to 37% in 1984 as a result of the implementation of the IRDP. However, many defects have been observed in the formulation and implementation of the above programme National Rural Employment Programme (NREP) In 1981, the food for work programme ( ) was redefined and restructured in the form of National Rural Employment Programme (NREP) and was made a regular plan programme. The objective was to create durable community assets which could strengthen the infrastructure in rural areas for economic development. This programme aimed at generating additional wage employment to the rural poor who are without productive assets. In the rural areas, there are a large number of people who do not own any asset or have grossly inadequate assets. These people work mostly as agricultural workers. During plan season these people go without employment and food. The NREP has been introduced for the benefit of this segment of the rural society and aims to create community assets for strengthening rural infrastructure. It also sought to improve the nutritional status and the living standards of the rural poor. DRDA is the co-ordinating agency for this programme. The NREP became a part of the sixth five-year plan. With effect from 1 April, 1981, the programme was implemented as 50:50 sharing basis between central and the state Government The programme had the following three basic objectives- (i) Generating additional gainful employment for the unemployed and underemployed persons in the rural areas. (ii) Creation of durable community assets for strengthening rural infrastructure, which will lead to a rapid growth of the rural economy. (iii) Improvement of the nutritional status and the living standards of the rural poor The Rural Landless Employment Guarantee Programme (RLEGP), introduced in 1983 had objectives similar to that of the: NREP. The entire expenditure on the RLEGP was met by the central Government. From the

14 35 financial year , NREP and RLEGP have been combined and merged with a new programme, called as Jawahar Rozgar Yojana Jawahar Grama Samridhi Yojana (JGSY) Jawahar Gram Samridhi Yojana (JGSY) was launched on 1st April, 1999 to ensure development of rural infrastructure at the village level by restructuring the erstwhile Jawahar Rozgar Yojana. JRY was itself a major wage employment programme launched in the year 1989 by merging the two wage employment programme namely National Rural Employment Programme (NREP) and Rural Landless Employment Guarantee Programme (RLEGP). It was the single largest wage employment programme implemented in all the villages of the country through the Panchayati Raj institutions. The most important assumption behind JRY is that the elected members of the Panchayats will perform their functions honestly, being inspired by the noble ideal of helping the poor and the unemployed. It is an importance for the development of village economy there by. improving the standard of living of the rural poor; Both JRY and EAS ensured the creation of durable assets in the form of school building, roads and other infrastructure. The new programme JGSY is dedicated entirely to the development of rural infrastructure at the village level and is being implemented by the Gram Panchayat. Objectives The primary objectives of JGSY is creation of demand driven community village infrastructure including durable assets at the village level with a view to enabling the rural poor to have more opportunities for sustained employment. The secondary objective of JGSY is generation of wage employment for the unemployed poor in the rural areas.

15 36 Important features > The main emphasis of JGSY is to create rural infrastructure at the village level > Implementation of the JGSY entirely by gram panchayat > Direct release of funds to the gram panchayats by district rural development agencies (DRDAs)/ Zila parishads (ZPs) > Gram panchayat is the sole authority for preparation of annual action plan and its implementation with the approval of Gram sabha > Empowerment of the gram sabha for approval of schemes > 22.5 % of JGSY funds are earmarked for individual beneficiary schemes for SC/STs > Wages under JGSY will either be the minimum wages notified by the states or higher wages fixed by states through the prescribed procedure > DRDA/ZP is responsible for overall guidance, coordination, supervision and periodical reporting Indira Awas Yojana (IAY) IAY as a sub-scheme of RLEGP and later of JRY was launched during Since , IAY was implemented as a separate scheme. It is a centrally sponsored plan scheme with a funding pattern of 75:25 between centre and the state. It aims at providing assistance for the construction of houses for people below poverty line living in rural area. Under this scheme, priority is for widows and unmarried women. During , 69,170 houses had been constructed for women up to Dec., The super cyclone in Orissa occurred on 29-31st Oct., 1999 and rendered thousands of people homeless in 14 affected districts of the state. In order to provide accommodation to the rural people below the poverty line of SC and ST community, an additional IAY was implemented during the year Its scope has been extended to cover non-scheduled cast and non-scheduled tribe rural poor, subject to the condition that the benefits

16 37 to non SC/STs shall not be more than 40 percent of IAY allocation. Benefits of the scheme have also been extended to the families of ex-servicemen of the armed and paramilitary forces killed in action. Three percent of the houses are reserved for the below poverty line disabled persons living in rural areas. The funds for the IAY are operated by the District Rural Development Agencies (DRDA). Features: (i) (ii) (iii) (iv) (v) (vi) Funds are distributed among the districts, in accordance with the proportion of SC and ST population in the rural areas. Expenditure on non-sc/st poor families should not exceed 40 percent of the allocation under IAY. As far as practicable, houses are to be built in clusters so as to facilitate provision of common facilities. The allotment of house is made in the name of the female member of the beneficiary household. Alternatively, it may be in the joint name of both husband and wife. The beneficiary are to be involved in the construction of house from the very beginning and are to make their own arrangements for construction to suit their requirements. Smokeless Chullas and sanitary latrine are also provided along with the houses Annapurna Scheme The ministry of Rural development is the nodal ministry, aims at providing food security to indigent senior citizens, who have no income of their own and none to take care of them in the villages. The scheme envies provision of 10 kg of food grains per month, free of cost, to cover 13 lakh senior citizens who are eligible for old age pension but are at present not receiving it. The gram panchayatas would identify, prepare and display a list of such persons after giving wide publicity. An allocation of Rs. 100 crore has been earmarked for the

17 38 scheme for the year The Annapurna scheme has been launched with effect from 1st April, It aims at providing food security to meet the requirements of those senior citizens who though eligible, have remained uncovered under the National Old Age Pension Scheme (NOAPS). The central assistance under the Annapurna scheme is, thus, provided to the beneficiaries on fulfilling the following criteria. (i) the age of the applicant should be 65 years or above. (ii) The applicant should not be in receipt of pension under the NOAPS or state pension scheme. (iii) The beneficiaries are given 10 kg of food-grains per month free of cost The beneficiaries under the scheme are selected in the Gram sabha and the Gram panchayat distribute the entitlement cards to the beneficiaries Million Wells Scheme (MWS) Originally, this scheme was a sub-scheme of Rural Landless Employment Guarantee programme and national Rural Employment programme. Based on the experience gained in the implementation of the Jawahar Rojgar Yojana, it has been modified from and is now being implemented with two subschemes, namely Indira Awaas Yojana and Million wells Scheme. One endemic problem confronting the poor is the absence of proper irrigation facilities. As part of the JRY, MWS provides open irrigation wells free of cost to small and marginal farmers living below the poverty lines preference being given to SC/STs and freed bonded labourers. Now, 30 percent of JRY allocation has been earmarked for MWS. The funds for this are operated by DRDA/ Zilla Parishads.

18 Employment Assurance Scheme (EAS) According to an announcement by the Prime Minister on the independence day of 1993, Employment Assurance Scheme for generating employment opportunities to the rural poor on as assured basis has been launched from October, Accordingly, under this scheme, 1778 identified backward panchayat samities of 257 districts situated in the drought prone areas, desert areas, tribal areas and hill areas in which the revamped public distribution system was in operation. The scheme was then extended to the remaining panchayat samities of the country in the phased manner and finally universalized in to cover all the 5448 rural panchayat samities of the country. Primary objectives of the EAS are the creation of additional wage employment opportunities during the period of acute shortage of wage employment through manual work for the rural poor living below the poverty line. The secondary objective is the creation of economic assets for sustained employment and development. Salient features: (i) (ii) (iii) (iv) (v) (vi) EAS is open to all the needy rural poor living below the poverty line. A maximum of two adults per family are provided wage employment. Resources under the scheme are shared between the centre and states in the proportion of 75:25 The flow of funds from the district to blocks are in proportion to the rural population of the blocks DRDA will release 30 % of the district allocations to zila parishads and 70 % to the panchayat samitis Work should be labour intensive only which result in the creation of durable productive assets Diversion of funds from one district to another and similarly from one. panchayat samiti to another is not permitted

19 40 (vii) The selection of works would be decided by zila parishads after due consultations with MPs of that area (viii) When about 20 workers demand work, new project can be started by the Block level officer for providing employment (ix) (x) The Gram panchayat will maintaining a live employment registrar containing details of the workers and number of days for which wage employment is provided under the scheme Zila parishad/panchayat samitis are permitted to spend up to a maximum of 15 % on maintenance of the assets created under the scheme Swamajayanti Gram Swarozgar Yojana (SGSY) This Yojana has been launched on 1st April, As a result, the erstwhile programmes viz. Integrated Rural Development Programme (IRDP), Development of Women and children in Rural Areas (DWCRA), Training of Rural youth for self-employment (TRYSEM), supply of Improved Tool kits to Rural Artisans (SITRA), Ganga Kalyan Yojana (GKY) and Millions wells Scheme (MWS) ceased to be in operation. SGSY accordingly came into being after restructuring of all these programmes. Objectives: SGSY has a definite objective of improving the family incomes of the rural poor and at the same time providing for a flexibility of design at the grassroots level to suit the local needs and resources. The objective of the restructuring was to make the programme more effective in providing a sustainable income through micro-enterprise development, both land based and otherwise. Salient Features: (i) SGSY is a centrally sponsored scheme that is jointly funded by the government of India and the state government in ratio of 75:25.

20 41 (ii) SGSY aims at establishing a large number of micro-enterprises in the rural areas building upon the potential of the rural poor. (iii) The assisted swarojgar is may be individual families or self-help groups. (iv) The objective under SGSY is to bring every assisted family above the poverty line in three years (v) SGSY emphasizes skill development through well-designed training courses. The programme helps promote marketing of goods produced by the SGSY sworojgaries. (vi) In establishing the micro-enterprises, the emphasis under SGSSY is on the cluster approach. The activities are to be selected with the approval of the panchayat samities at Block level and the District Rural Development Agency (DRDA)/ zila parishad at district level (vii) Fifteen percent of the funds under SGSY are set apart at the national level for projects of far reaching significance and which are also act as indicators of possible alternative strategies to be taken up in conjunction with other department or semi-government and international organisation. (viii) SGSY has a special focus on the vulnerable groups among the rural poor. Accordingly, the SCs/STs would account for at least 50 percent of the swarojgari s, women for 40 % and the disabled for 3 percent (ix) Subsidy under SGSY is uniform at 30 percent of the project cost, subject to a maximum of Rs In respect to SCs/STs, however, these are 50 percent and Rs. 1000, respectively. For groups of swarojgaries, the subsidy is at 50 percent of the cost of the scheme, subject toa ceiling of Rs lakh. (x) SGSY provides promotion of marketing of the goods produced by the SGSY swarojgaries. This involves provision of market intelligence, development of markets, consultancy services as well as institutional arrangements for marketing of the goods including export

21 42 (xi) SGSY ensures upgradation of the technology in the identified activity clusters (xii) SGSY is a credit-cum-subsidy programme. However, credit is the critical component in SGSY, subsidy being only a minor and enabling element (xiii) SGSY seeks to promote multiple credits rather than a one time credit injection. The credit requirements of the swarojgaries are carefully assessed. They are allowed and in fact, encouraged for increasing their credit intake over the years Agricultural Marketing The agricultural marketing is a state subject, the government of India, in view of the importance of the subject has been laying down policies in this regard. The Orissa state Tribal Development co-operative corporation and Orissa state oil seeds grower s federation are also functioning as apex marketing institutions. There are 214 Large Size Agricultural and Multipurpose Societies (LAMPS), which provide a package of services at a single contact Point. The government has also set up the centre for Agricultural Marketing renamed as National Institute of Agricultural Marketing (NIAM) with the following character: (i) to develop well trained and equipped force of marketing personnel (ii) to carry out economic and technical feasibility studies and cost benefit analysis in respect of investment made by the government and public sector in agricultural marketing (iii) To offer consultancy services to decision makers in various organisations Objectives: The policies under the subject of agricultural marketing aim at not only ensuring remunerative prices to the producers but also good quality products to the consumers. The Directorate of Marketing and Inspection (DMI), an attached office of the ministry of Rural Areas and Employment is the agency to implement the agricultural Marketing Policies and programmes of the government.

22 43 Important functions are: (i) (ii) (iii) (iv) to function as an agency to implement the agricultural marketing policies and programmes of central government to provide technical guidance to the stated union territories in framing and enforcing the necessary legislation for regulation and management of agricultural produce markets to promote grading and standardisation of agricultural and allied commodities under the Agricultural Product Act, 1937 as amended in 1986 to undertake research, planning and training activities in the field of agricultural marketing Agricultural Credit The total amount of agricultural loans advanced by different commercial banks, RRBs, co-operative Banks and OSFC during was to the tune of Rs crore as compared to Rs crore in Out of the total agricultural loan financed during , the share of co-operative Banks was % followed by commercial banks (26.89 %), RRBs (14.90 %) and OSFC (0.20 %). The investment made by different financing agencies in the agricultural sector in has increased by % over the previous year. The amount of loans financed by co-operative banks, regional rural banks and commercial banks has increased substantially by %, % and 5.63 % respectively in in comparison to the previous year Crop Insurance All farmers availing themselves of crop loans from co-operative credit institutions, commercial banks and regional banks are covered under this scheme. Apart from this, farmers are protected against the risk and uncertainties associated with agriculture and they are encouraged to increase production of cereals, pulses and oil seeds. In order to provide financial support to cultivators

23 44 in the event of crop failure on account of natural calamities, a comprehensive crop insurance scheme (CCIS) was launched in the state during A modified and more liberal scheme formulated by government of India in the name of National Agricultural Insurance Scheme (NAIS) has been implemented since Rabi season of The state agriculture policy 1996, envisages extension of insuarance cover to crops like sugarcane, cotton, mung, harad, gram, til and maiz etc. During Kharif-2001, crops like paddy, maize, groundnut and cotton were covered under NAIS and an amount of Rs lakh was paid to 8854 farmers for the loss of crops over an area of 6.25 lakh hectares. Similarly, an amount of Rs lakh was paid to farmers for the loss of crops like paddy, groundnut, mustard, patato, sugarcane covered under insurance over an area of 1.75 lakh hectares during Rabi season of During kharif-2002, crops like, paddy, groundnut, maize, cotton were covered under insurance over an area of lakh hectares of lakh farmers. The utility of crop insurance scheme in Indian agriculture is highly significant on account of predominance of agriculture in the country Sampoorna Gramin Rozgar Yojana SGRY is a centre-sponsored scheme with funding pattern of 75:25 of the cash component between the centre and state. SGRY has been launched with effect from 25th September, 2001 and was made operation during in the name of SGRY (JGRY) and SGRY (EAS). The new schemes of SGRY are in operation from and in above mentioned two streams. There is a special component of SGRY which is for augmenting food security through additional wage employment in the calamity affected rural areas after due notification by the state government. Objectives: (i) The primary objective of the scheme is to provide additional wage employment in all rural areas who are in need of wage employment and there by provide food security and improve nutrition levels.

24 45 (ii) The secondary objective is the creation of durable community, social and economic assets and infrastructural development in rural areas. Programme strategy and flow of funds: 1st Stream-SGRY-1 50% of the allotted funds are towards the first stream, which is being implemented at the district and intermediate panchayat levels, i.e., at the Zila parishad and panchayat samiti level with the ratio of 40:60. The funds and food grains under the stream are directly released to the DRDA for distribution to these two PRIs. The allotment shall be utilised by the Z.P. and P.S. after finalisation of annual action plan. The execution of the projects shall be done through the leader to be selected by the Palli Sabha. 2nd Stream (SGRY-II) The other half of the allotted funds are towards the 2nd stream (i.e. SGRY- II), which is basically meant for the gram panchayats. The allotment of cash and food-grains are released directly by the GOI to the DRDAs who is turn distribute the cash and food-grain to the gram panchayats directly. The gram panchayat is competent to utilize the above funds as per the Annual Action Plan approved by the Gram Sabha and the projects come from the Palli Sabha. For safeguarding the interest of Sc/STs, 50% of the total funds allotted to the gram panchayats shall be utilised towards infrastructure development in SC/ST habitation Pradhan Gramodaya Yojana (PMRY) The scheme is part of the comprehensive Pradhan Mantri Gramodaya Yojana (PMRY) introduced during the year 2000 to achieve the objective of sustainable human development at the village level. The ministry of Rural Development is the nodal ministry for implementation and monitoring of the scheme, which is implemented on the pattern of the Indiara Awas Yojana. During , 5653 number of houses has been completed with an expenditure of Rs crore, including an expenditure of Rs crore on infrastructure.

25 Samagra Awas Yojana Samagra Awas Yojana is comprehensive housing scheme launched in , with a view to ensuring integrated provision of shelter, sanitation and drinking water. The existing schemes of housing, drinking water and sanitation follow normal funding pattern. However, a special central assistance of Rs. 25 lakhs is provided for each block for undertaking overall habitat development and information, education and communication work with 10 % contribution coming from the people. Other schemes, plans and programs Apart from above described plans, schemes and programs have been implemented in various ways. This includes Hill Area Development Projects (HADP), Whole Village Development Program (WVDP) and Desert Development Program (DDP). However, all of these are mostly unsuccessful due either to the lack of infrastructure or the inefficiency of the implementing agencies.

26 Summary In the foregoing chapter, various anti-poverty schemes and programmes of central and state governments implemented by both government and nongovernment agencies during the pre- and post-independence era have been streamline^ The pre-independence schemes engineered by the then social reformers created good precedence but their area of operation was too less for vast country like India. Most of the schemes of post-independence period were started with high expectations but have not yielded impressive results. It has been observed that there has been lack of commitment on the part of executing agencies. It is noteworthy that despite the implementation of several anti-poverty programmes and self-employment schemes, there has not been steady decline in the incidence of rural poverty. The economy of the state of Orissa is still characterized by unemployment, under-employment and poverty, particularly in the rural areas. Despite implementation of both beneficiary oriented and area development programmes over the years, the gains achieved are quite meagre. Out of the total population below poverty line, a sizeable section belongs to the SCs, STs and other weaker sections of the society. It is worth mentioning at this juncture that agriculture continue to be the main-stray of the state s economy with its contribution of about thirty percent to the state domestic product. For improving the agricultural output new economic technology has to be applied. The present micro study attempts to highlight the impact created by application of such technology at the block level.

27 48 References 1. Kashyap C.L., Management and Planning of Rural Development in India, Ashish Publishing House, New Delhi, 1989, p International Labour Organisation, Human Resources Development- Objectives, Probems and Policies, Geneva, 1968, p Gillin J.L. and Gillin J.P., an Introduction to Sociology, 1942, p Waterson A., A Viable Model for Rural Development, Development Dist, Vol. XIII, uly 1975, p Hunter G., Persons from India s Administration of Rural Development, Development Digest, Vol. -IX, 1991, p Ouver. K, Developing Village India, 1951, p Government of India; First Five Year Plan, 1951, p Padmanavan B.S., Rural Development, Yojana, January, 1997, p The Cambridge Summer Conference on African Administration, Government of India; IRDP Manual, 1986, Annexure -IV & Annexure-V 11. Government of India, Anuual Report, , Ministry of Agriculture, Department of Rural Development. 12. Mamoria C.B., Social Problems and Social Disogranisation in India, Kitab Mahal, Allahabad, 1981, p