 RURAL DEVELOPMENT AND
 CO-OPERATION

Development of the rural areas has been one of the abiding concerns of the successive five year plans. Beginning with Community Development programme in the early 50's which helped to establish a net-work of basic extension and development services in the villages, thereby creating awareness in the rural communities of the potential and means of development which made quicker adoption of major technological advances later in the mid 60's in agriculture possible, reinforced with abolition of intermediary landlords and reform of land tenure system, the investments in the successive five year plans have led to the creation of essential physical and institutional infrastructure (if socioeconomic development in many rural areas. Later, realising that the benefits of various development programmes were in the main being taken by those better endowed in terms of land resources, programmes specifically designed for the development of small and marginal farmers and the landless and agricultural labourers were taken up in the early 70's. A special programme for the development of Drought Prone Areas (DPAP) was introduced in the mid 70's and a programme of development of desert areas in the late 70's. A programme of Food for Work was launched in 1977 to provide opportunities of work for the rural poor particularly in slack employment periods of the year which would at the same time create durable community asserts. Irrigation facilities have been expanded manifold. With a view to removing regional disparities, particularly in less endowed or dis-advantaged areas, like the hill and tribal areas, special sub-plans (it' development were introducd. Special financial and fiscal concessions, credit on softer terms and subsidies have also been made available to underdeveloped areas to attract increased industrial investment. A Minimum 'Needs Programme was designed to secure to the rural areas within a reasonable time-frame certain basic amenities in the field of education, health, drinking water, electrification, roads and house-sites.

The major thrust of the Five Year Plan 1980-85 will lie on strengthening the socioeconomic infrastructure of development in the rural areas, alleviating, rural poverty and reducing regional disparities. The specific programmes and strategies to be adopted during- the Plan period to achieve these goads have been dealt with in relevant chapters. This Chapter deals only with special employment and income generation programmes for the rural poor,special area development programmes and the institutional means for rural development.

RURAL DEVELOPMENT

Review

11.21 The Small Farmers Development Agencies (SFDA) programme aimed at the target group of small and marginal farmers and agricultural labourers, has been in operation since 1971 covering 1818 blocks in the country. The objective of the Programme was to assist persons specifically identified from this target group in raising their income level. This was to be achieved by helping them, on the one hand, to adopt improved agricultural technology and acquiring,means of increasing agricultural production like minor irrigation sources, and on the other hand, to diversify their farm economy through subsidiary activities like animal husbandary, dairying, horticulture etc.' The Agencies were to make particular efforts to ensure that the needed inputs and credit were made available to these persons by respective credit agencies. Enrolling them as members of the credit-cooperatives was one of the operational objects of the programme so that they could draw necessary assistance from them. Up to March, NM the Agencies had identified 16.7 million persons from the target group for assistance. Of these, 8 million beneficiaries including 1.3 million belonging to the scheduled castes and scheduled tribes, have been assisted. 6.1 million or 75 per cent of these beneficiaries have been helped in acquirring access to improved agricultural practices through subsidised supply of inputs improved implements and field demonstrations. Bulk of the remaining 1.9 million beneficiaries have been covered under the more substantive asset development programme like acquisition of milch cattle, sheep , poultry piggery etc. (0.9 million) minor irrigation (0.9 million), and other categories including forestry and village industries (0.1 million).

11.3 Short term credit advanced to the beneficiaries of this programme through cooperatives was Rs 27.76 crores during 1979-80 and through commercial banks Rs. 6.03 crores. The cumulative

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medium and long-term loans advanced through cooperatives upto March. 1980 amounted to Rs. 112.82 crores and Rs. 140.20 crores respectively. The total outlay utilised by way of subsidy to beneficiaries and other grants, and expenditure on execution, amounted to Rs. 156.10 crores during the period 1974-79, It will be seen that while the numbers identified for assistance represented only a segment and not the whole of the target group, the numbers benefited are only about half the number identified. Furthermore, the nature of assistance given to the bulk of them comprised items which did not lead to any specific additional asset creation. The actual impact of these items of assistance oil the income of the beneficiaries therefore varied a great deal and in many cases has been of doubtful significance. Where, however, assistance has been given for developing minor irrigation sources or for acquiring milch cattle, sheep, goats, poultry etc. the impact has been significant. The principal reason for a lower coverage under such asset creation purposes has been the progressive erosion in the integrated functioning of the Block agency which is the main implementation agency, inadequacies of the credit institutions and lack of coordination and adequate support from concerned departments to the Agencies' programmes.

11.4 The concept of an Integrated Rural Development Programme was first proposed in the Central budget of 1976-77, and a beginning was made, This programme was intended to assist the rural population to derive economic benefits from the developmental assets of each area. The programme with some modifications was introduced on an expanded scale in 1978-79, beginning with 2300 blocks, of which 2000 were under coterminus coverage with SFDA, DPAP and CAD programmes. With another 300 blocks added during 1979-80, its coverage was 2600 blocks as on 31-3-1980. Besides the small and marginal farmers, this programme was more specific in regard to agricultural workers and landless labourers and additionally brought within its purview rural artisans also. The programme emphasised the family rather than individual approach in identification of beneficiaries,5.3 million families had been identified under the programme for assistance as on 31-3-1980. Of these, 2 million families have been already given assistance in some form. Under this programme, as in the SFDA Programme, largest coverage has been under the 'improved agriculture' category (60 per cent in 1979-80), followed by animal husbandry (15 'per cent in 1979- 80). Though conceptually this programme was comprehensive in scope and sought to secure, through a process of block ]eye] planning, fuller exploitation of the local growth potential with a view to making a n optimum impact on the local poverty situation, in point of fact it has also tended to operate on the same lines as the SFDA. Undoubtedly the programme has only recently begun and has yet to firmly establish itself. it has also been subject to the same constraints as the ones earlier mentioned in respect of SFDA.

11.5 Drought Prone Areas Programme (DPAP) is currently being implemented in 557 blocks spread over 74 districts in thirteen States. This programme has been in operation since the Fourth Plan. Since its inception upto March, 1980 a total expenditure of Rs. 426 crores has been incurred on this programme. Under this programme upto December, 1979 13.30 lakh hectares of land had been treated with soil and moisture conservation measures, irrigation potential of 2.72 lakh hectares created, afforestation and pasture development taken up on 4.77 lakh hectares and 72,000 milch animals distributed to individual beneficiaries. The weakest aspect of its operation has, however, been its lack of effort and impact on the development of better dry land farming practices and cropping patterns.

11.6 The Desert Development Programme is operating in 128 blocks covering and areas in 20 districts in 5 States in the country, including the two cold desert areas of Ladakh and Spiti. The main aim of the programme is to check desertification and combine it with Projects which facilitate development of productivity and productive resources of the area and its inhabitants. Under this 'programme since its inception in 1977-78 upto March, 1980, an expenditure of Rs. 23.21 crores has been incurred. The expenditure has mainly been on schemes of afforestation, water harvesting, rural electrification and animal husbandry. Investments under this programme have been somewhat slow in picking up; particularly in forestry and pasture development. This has been largely due to the forestry organisation in the States being inadequately equipped to meet the particular requirements of the desert areas. However, Rajasthan which has the largest coverage under the programme has now established a specialised Directorate of Desert Forestry and Pasture Development.

11.7 A Food for Work Programme was initiated in 1977-78, aimed at creation of additional employment in rural areas on works of durable utility to the community, with the use of surplus foodgrains available in the buffer stock for payment as wages. Beginning somewhat haltingly, the programme gained momentum in 1978-79 when over 12 lakh tonnes of foodgrains were utilised creating 372.8 million mandays of employment. During 1979-80, the utilisation has been provisionally estimated at 23 lakh tonnes of foodgrains inclusive of the special allotments which were made to the States affected by drought in that year, resulting in about 600 to 700 million mandays of employment as estimated on incomplete reports. The programme, besides creating substantial additional employment in the rural areas during lean employment periods, more particularly in areas affected by the wide spread drought of 1979, has made a favourable impact on stabilisation of wages in the rural areas and also helped check the rise in prices of foodgrains. Notwithstanding, however, its very substantial achievements in respect of employment generation and even more so its popularity and promise, the programme suffered from severe limitations in respect of planning and supervision of works. The operation of

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this programme on a year-to-year basis had resulted in uncertainty about its continuance for the full Plan period. In the circumstances, the State Governments were disinclined to build the needed technical and administrative support to effectively plan, monitor and oversee the programme. No serious attempt appeared to have been made by the State Governments to develop for each block where the programme was being implemented, a shelf of projects which would be the most useful from. the point of view of local needs and would also, fit in with overall national priorities. As a result, works of low priority with dubious utility have been taken up at several places. For want of a back-up financial provision in many States, which could be used to finance the cost of materials required for works, the tendency has been to take up kachha roads on a large scale, which unless brought to at least a semipacca stage would not be able to survive one or at best two monsoons. Due to lack of the needed administrative and technical back-up, the work was often executed through contractors. This is, however, not to say that work everywhere has been of this nature. A great deal of durable assets whether in the nature of irrigation tanks or school buildings, panchayat buildings, drinking water wells, paving of village streets and drainage and such like have also been created.

11.8 As brought out above the SFDA, IRD, DPAP, DDP and the Food for Work programmes have over the years achieved their objectives only partially. The size of the problem which these programmes, especially the individual beneficiary oriented programmes like SFDA and IRD, have to deal with is enormous. The pace and the manner in which the problem of rural poverty has been dealt with so far leaves much to be desired both qualitatively and quantitatively. Only a small fraction of the rural poor has so far been covered effectively by these poverty amelioration programmes. Even amongst those 'covered, a sizable portion is of those who had some land. The bottom deciles of the rural poor i.e., the landless and the rural artisans, who are the poorest, have in most cases been left untouched. In the area develop- ment programmes (DPAP/ DDP) also, while significant progress has been made in expanding minor irrigation and dairving, the same measure of effort has not gone into the programmes of soil and water conservation on a scientific watershed development basis, and on afforestation and pasture development. These are programmes, of critical importance to these areas. Of all elements, the weakest has been the introduction of changes in agronomic practices and cropping patterns most advantageous in the particular agro-climatic potential of the area. Marginal lands continue to be over exploited through crop husbandry even though optimal utilisation in many cases would be through pasture and grass lands development. Animal husbandry is an important and promising activity for these areas but while about a million beneficiaries have been enabled to acquire milch cattle and other animals, the back-up effort in respect of better feed and fodder, health care and breed improvement has been grossly inadequate. The constraints from which these programmes have suffered have not been financial but organisational inadequacies and lack of a clearcut plan of development for the area to which coordinated effort of all concerned agencies could be directed.

Strategy for the Sixth Plan

11.9 Alleviation of rural poverty will be the prime objective of the Sixth Plan. An increase in the productive potential of the rural economy is an essential condition for finding effective solutions to the problems of rural poverty. At the same times, recognising the constraints which limit the scope for higher growth rate in medium- term, more direct means of reducing the incidence of poverty and destitution would have to be employed. It is well known that the hard core of poverty is to be found in rural areas. The poorest sections belong to the families of landless labourers, small and marginal farmers, rural artisans, Scheduled Castes, Scheduled Tribes and socially and economically backward classes. House-holds below the poverty line will have to be assisted through an appropriate package of technologies, services and asset transfer programmes.

11.10 The strategy and methodology for accelerated rural development will be as follows:

(a) increasing production and productivity in agriculture and allied sectors;

(b) resource and income development of vulnerable section of the rural population through development of the primary, secondary and tertiary sectors;

(d) facilitating adequate availability of to support the programmes taken up for the rural poor;

(e) promoting marketing support to ensure the viability of production programmes and to insulate the rural poor from exploitation in the marketing of their products;

(f) provision of additional employment opportunities to the rural poor for gainful employment during the lean agricultural season through a national rural employment programme (NREP);

(g) provision of essential minimum needs; and

(h) involvement of universities, research and technical instructions in preparing a shelf or Projects both for self-employment and NREP and in preparing strategies for the scientific utilisation of local resources.

11.11 The development of the rural areas is the concern of all sectors of the economy and these areas draw benefits of development in varying degress from various sector. In this chapter programmes

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which are directly aimed at the development of the, target group of the rural poor and the principal institutional instruments relevant therefor have been dealt with. There are three broad categories of these programmes:-

(i) Resource and income development programme for the rural poor.

(ii) Special Area development programme.

(iii) Works programme for creation of supplementary employment opportunities.

RESOURCE DEVELOPMENT OF THE RURAL POOR

11.12 A number of programmes have been operating in the country, some for as much as the last ten years (SFDA/MFAL) and some introduced recently, aimed at improving the economic conditions of the rural poor. None of these programmes covered the whole country, though a large number of blocks in the country had more than one of these programmes operating simultaneously in the same area for the same target group. This territorial overlap combined with the different funding patterns of these programmes, not only created considerable difficulties in effective monitoring and accounting, it often blurred the programme objectives. In practice, therefore, these programmes were reduced to mere subsidy giving programmes shorn of any planned approach to the development of the rural poor as an inbuilt process in the development of the area and its resources. It is pro- posed that such multiplicity of programmes for the rural poor operated through a multiplicity of agencies should be ended and be replaced by one single integrated programme operative throughout the country. The programme will be called the Integrated Rural Development Programme (IRDP). Of the 350 million people below the poverty line in the country, around 300 million are the rural areas. These consist largely of the landless labourers, small and marginal farmers, rural artisans, and other workers. The hard core of poverty is constituted by the marginal farmers, agricultural labourers (about half ,of whom are landless, rural artisans and fishermen constituting nearly one- third of the rural work force. Possessing little or virtually no assets, they need to be enabled to acquire productive assets and/or appropriate skills and vocational opportunities and then backed effectively with services to increase production and productivity. If through special programmes of specific beneficiary' oriented assistance this group could be brought above the poverty line, a major impact would have been secured on the overall economic levels of the country.

11.13 The main objective of the IRD programme will be to evolve an operationally integrated strategy for the purpose, on the one band, of increasing production and productivity in agriculture and allied sectors based on better use of land, water and sunlight, and on the other, of the resource and income development of vulnerable sections of the population in all the blocks of the country. Any developmental strategy which aims at improving the lot of the rural poor must aim at creating new productive assets for them. Improving the productivity of land by providing access to inputs like water, improved seeds, and fertilizers would be an essential means to help those categories of the rural poor, who have some land asset. Diversification of agriculture through animal husbandry, dairying, forestry, fishery, sericulture etc. will benefit both the landless and the land holders and this would form an important plank of the programme. Processing and manufacturing activities based on local resources will also have to be identified and fully exploited. Post harvest technology will have to be improved so that both producers and consumers benefit from enhanced production.

RURAL DEVELOPMENT AND CO-OPERATION