Sie sind auf Seite 1von 24

. ...










JFn.H1la1lH1l~<e .~






nInltegratedL. .....

'Ir.llllrraU.tdlevelQP,lQI1l$rort ..:-.':-,..:-..

. .

'. .. .









How fares the rural employment programme'
, Rural development and national integration


More emphasis is being laid. on providing nutri~iousdiet

to the children in the growing age-group

The new

lO-point "
programme. : ..

Women and children

POINT NO. 15 : Accelerate programmes of weI.

fare for women and children and nntrition programme for pregnant women, norsing mothers and
children,. specially in.tribal, hill and backward
areas .

The Sixth Planfor thefirst time includes a separate chapter on Women and development Programmes
for the social and economic upliftment of .women wili rec~ivegreater attention. Legal sanction as
well as public opinion wiil be mobi/isedagainst evil practices like dowry. In addition, priority
attention wiil be given to expand facilities for the improvement of education, health and nutrition
fat both women and children.

A large number 0/ children be/ongmg to poorer sections

are benefited u~dermid-day meafprogramme" _









1. 1982



(India's Journalof Rural Development)

P. G,'.Muralidlwran


D.V: L. N. P,asada Rao



. _.

Baldev Singh





S; K. Achar



11.K. Dhawan



V. K. Natarajan



. Badar-Almn .Tqbal and Masood AIiMirza







. ,

Enquiries regarding _S"ubscriptions, Agencies, ele.,

Busines.<i.Manager; Publications Djvisio~
. PatiaIa Honse, N~w .n.elhi~110001


and reduction in unemployment in the' rural areas has a,lways

formed a cardinal part qf all our development plans
so far. It has been uppermri'St in. the minds of our
planners as well as the political leadership to reduce
the incidenCl<of poverty, particularly in the rural
areas, and raise the rural poor above. the poverty
line in as S'hort time as possible. This is reflected
in the importance given to the integrated rural lIeve-.
lopment programme in the Sixth Plan in terms of
the quantum of public sector investment and the
coverage of families.' IRDP aims at bringing
1,5 million rural families above the poverty line ,by
1985 (at the rate of 600 f'anrilies per block per year)
through suitable income-generating schemes in sectors
like agriculture, animal husbandry, dairies, fisheries,
: khadi, village and cottage industries, artisans' crafts,
small 'business and services.



This gigantic t'ask of lifting such a big -.number .. of

people from the morass of poverty and backwardness
is not an' easy one. It needs colossal institutional
finance support to see it through. The' Sixth Plan
has an outlay of Rs. -1500 crorcs for IRDP and .more
ilian 80 per cerit of this amotint would be utilised
for the paymentt" ben<eficiariesof subsidies for the
acquisition of capital assets. The' subsidies . varyfroni 25 per cent of the capital cost in the small
farmers to 33!
for marginal farmers; agricultural
lahourers and rural artisans and 50 per cent !or.
tribal beneficiaries. "TIle clement of subsidy is to be
supplemented by loans from multi-agency .credit
system comprising commerci'al banks, cooperative
:baclcs and re~onal rural banks.
Thus the crucIiJi
r916 of the banking sector for implementation of
IRDP and the dependence of the programme On the
banking sector for its success is self-evident. - Th~
vari~us credit agencies have to gear up their energies
_and -resources to rise up to the task.

-Tel: 387983

. Editorial Office:
- -


Telephones': -384888 & 382406
,_ Editor's Residence: 615920



Re. 1


. In this issue w~_are carrying 'an informative study on

mobilisation of institutional finance for the Integrated
- Rural'Development Programme which our readers
. Will find quite useful.


Finance for IRDP \

Joint Secretary, Union Ministry of Rural Development

GIVEN to the Integrated

Development Prograinme (IRDP) in. the sixth
five year plan (1980-85) in terms of the quantnm of
public sector investment and coverage is in consonance
.with the.cardinilJ plan objective of alleviation of poverty
and unemploymeni. Briefly stated, IRDP aim\; at
bringing 15 million rural families ahove the poverty line
by 1985, (alithe rate of 600 families per block per
year) .through suitable iilcome-generating schemes in
sectors like agriculture, animal husbandry, dairying,
fisheries; khadi, village and cotitage industries, artisans' .
crafts, small business and services.

The sixth plan has an outlay of Rs. 1500 crores for

IRDP. and more than 80 per cent of this amount would
be utilised for the payment to beneficiaries of subsidies
for the acquisition of capital assets. The subsidies
vary from 25 per cent of the capital cost in the c3s~
of small farmers to 33-1/3. per cent for JllarginaJ
farmers, agricultnral labourers and rural artisans
and 50 per cent for tri1;>albeneficiaries. This element
of Subsidy is to be supplemented by loans from the
multi-agency credit system comprising commercial
banks, cooperative bankS and regional rural banks.
The crucial role of the banking sector in-the implementation of IRDP and the dependence af the programrrie on the banking sector for its success are thus

.assisted by' a team of specialists iu the relevant disciplines, including a planning officer; The governing body
of the DRDA provides for representation to the local
MPs and MLAs and to the beneficiaries including scheduled castes and scheduled _tribes.. It is the DRDA
which identifies the beneficiaries, draws up income.
generating projects for them and brings them into -con.
tact with banks.
In the seventies, when the programme of Small Farmers Development Agencies (SFDAs) was in o'pera~
tion, the bulk of the institutional finance requirements/"
was me.tby coojlerative credit.societies. With the 'un;
tionalisation of the major scheduled commercial-banks,
these banks gradually stepped up their len!ling to the
weaker sections. A new agency known as Regional
Rural Banks (RRBs) , created primarily to cater to
the credit 'needs of small and marginal farmers, agriculiural labourers, rurai artisans and other _vulnerable
sections of the'. community, became the third component 'of th-~multi-agency finimcing sy~tem in 1975.

Task before banking sector


ARE TWO MAIN REAS,ONS why th~ t~sk befoie

the banking sector so far as the financmg of IRDP
is concerned is a 'challenging one. First, -the credit Sup.
port required for IRDP in tbe sixth plan period is
estimated to be about Rs. 3000 crores, the largest
quantum of credit even for any national programme io/
A reference to the' organisationill set-up for IRDP - a five year period. Secondly, and more importantly,
would not be out of place here. At the natiotiallevel,
banks are noW called upon to lend to the poorest 01
IRDP is admiuistered by the Ministry of RurafDevethe poor in our rural areas, many of whom may riot
lopment. The State and Union Territories have set up
own any land at all and would need Ht:ance for non;'_
bodies known as District Rural development AgencieS
land-based schemes. -Understandably, a task of thiS
. (DRDAs), which are societies registered ~nder .the
magnitude and complexity cannot be performed in the
. Societies Registration Acts, to implement the programabsence of banking policiCJ'and procedures which facili.
,me, The Chilirman of the DRDA is, generally, the
tate it. The Central Government and the Reserve BaliK
Collector or Dy. Commissioner of the District and the
of India have taken a number of steps in this direcchief executivei is the Project Director/Officer: He is



November 1, 198

lion in recent times. Thesll include the fOllowingdeci. sions and measures:
(i) 50 per cent of direct agricultural advaU:cesto the weaker sections by 1983.

(ii) 40 per cent of priority sector lending or 16 per

cent of total lending to go to agriculture by 1985.
(iii) 12.~ per cent of total lending to.go to the small
scale industries. sector, including village and co~tage
industries and rural artisans by 1985.
(iv) 1 per cent,of the total!dvallces of
commercial banks in the previou~ year to be available for lending at 4 per cent rate of interest under
, .the Differential Rate of Inter~t (DRI) scjleme.
(v) simplification of loan application forms.


(vi) non-insistence on secnrity for small loans' up

to Ri;. 5000
(vii) waiving of security/guarantee requirement for,
composite loans up to Rs. 25000 for village and cottage industries and rural artisans.' ,
(viii) branch expansion policy favouring opening of
. branches in rural l!nd semi-urban centres l!nd giving priority to RRBs.
ROVISlONAL FIGURES furnished to 'the Ministry of
Rural Development by the States and' UT; show
.significant improvement in credit support IRDP from
1980-81; the year in which the programme 'was extcnded to all the blocks to 1981-82. The term credit
"'mobilised for IRDP in 1981'82 was over Rs. 450 croc
rcs as against about Rs. 200 crores in.1980-81. This
is, of course, still far short of the target of Rs. 600
crores per anuum! set for lRDP but the achievemeut
is commendable having regard to the many constraints
which are still experienced in financing the programme
like inadequacy of infrastructural facilities and
slall and uncven spread of bank branches. A significant aspect of the financing is that over two-thirds of
the credit has come from commercial banks and }:egional.rural banks and that the cooperative credit societies which formed the bulwark of the rural credit structure for scveral decades, have had to be content with
a one-third share. This slippage h!!soccurred \lJ.rgely
because of the slcady deterioration of the overdue.
position of c()operiitive banks in some Stl!tes, consequent on across-the-board writ~off of loans by Stale
f'i,Goveruments and to a certain extent due to the inability
of cooperative societies to finance noncland-based sch-


In the last two' years some notable developments

ha"e taken place in regard to the institutional arrangem~nts for financing agricultural and rural development.
The most iwportant of these is the decision to set up a
national bank for agriculture and rural development
'(NABARD). Those working in the agriculture and
.rural developplent sector, not to speak of those ""ho
KURUKSHETRA November 1, 1982

are dependent on credi~fot agriculture and rural ~e"elopment activities, have set great store by ,NABARD
. and expect much from it. ' They are hopeful tba.t the
ru'ral economy,. in its totality, will nOw receive better
attention, that fresh initiatives will be taken ~o ~implify
procodures and avaid delays in the sanctioning of loans,
(hat rural artisans and those engaged in village and
cottage industries, who h~ve suffered neglect will now
get " chance (0 join the mainstreaIIl of development
and that banks will not only lend, but help disseminate
new technology, and project formulation ~kills ill rural
areas. There are distinct advantages in having a body
.. separate from RBI, but maintaining organic links with
it, t.o finance agriculture and rural developmen~ but
NABARD'~ success will depend very much' on its
approach to rural problems and it~ cap~city for in,novalion in favour of the rural poor, without comprorn.lslllg
sound banking prillcipies.
The ,Minis(ry of Rural Development has ,been conducting a number of workshops and credit seminars
which are attended by development administrators fro!"
States/UTs as well !!Sby bank offici~!s. These have
provided an excellent forum for frank i-"teraction and
. discussion of operational problems. Many useful-sugge~i.ons have emerged from ihe workshops which have
formed the basis of new policies and procedures. It
has !>een most heartening (0 note that many bankers
have come to accept IRDP as their own programme
and their role as partners in the task of rurl!! development.

WOULD LIKE to conclude by offering the following,
sugges!lons,for further improvemen~ in the flow of
credit for IRDP.

Development, 'administrators and bank officials
should forge close links with each other' a\ all levels.

Bank ,officials should be trained in the philosophy
and methodology of lRDP. Such tr~ining can be given
not ouly in training institutions set up by .banks but
also in those run by St!!~ Govef1lillellts..

Bank officials particularly' rural branch managers
should be motivated to lend to the poorest of the poor
particularly scheduled castes and scheduled tribes on
the basis of viable schemes and giving the applicants'
Ole full benefit of th,e relaxation allowed by RBI in
rcgard to security, margin money guarantee etc.

B'ahks should institute incentives for' good perfor- '
mance and dis-incentives for poor performance an the
(Con/d. on page 11)


'.How fares the rural 'Ii

employment ~rogramme,~l

Research Associate, .Deptt. of. Economics, NIRD, Hydcrabad (A.P.)

have been made in the country

Independence for generation of employment in rur'al areas. They have been further intensified,
during the last one decade and half. As' a part of this
effort for employment generation particularly to look
after the landless agricultural labourers the Food for
Work Progr;!mmc was conceived'and initiated in 1977.
The basic objectives of this programme were to utilise
the available foodgrains for generating; employment in
rural areas and creating durable community assets in '
order to strengthen the rural infrastructure for achieving; ,
the socio-economic development. The programme was
well received and gained wide pOI!ularity in rural areas.
,Based ou the .experience gaine~ and shorteo~ngs fac- ,
ed, the programme was restructured .and modified in
the name of National Rural Employment Programm'e
(N,R~E.P.) during Sixth Five Year Plan in o.ctobcr,
1980. Th~ programme aims to provide supplementary
employment to the unemployed during the lean periods
of employment in a year. The programme operates
in close conjunction ~ith the on-going developmental
works ensuring that employment ~nd development become catalysts for each other and its benefits to the
community are maximised.

M after


of N. R. E. P. were: (1)
Generation of additional employment for the unemployed and under~employed; (2) Creation of durable community assets for strengthening rural infrac
structure;,and (3) Improvement of the nutritional status
and living standards of rural people.'

The ProgTamme is being implem'ented in rural areas

by state govern~ents with possible modifications of the
national guidelines to suit the local conditions, The
.Thc author is grateful to Dr. P. T. George, Director
(Economics) for his valuable comments and suggestions.

schemes that could be taken up nnder' the programme

are such as would help in strengthening rural infrastrue- '
ture and result hi the creation of durable community
assets in the rural areas. They inelude afforestation and
soci~1 forestrY, drinking water wells, community irrigatioJ.1wells, rural. hou~ing, minor irrigation works, rural
roads, construction of schools, balawadi buildings, pane
ehayat ghars etc, Priority 'has been giveh to the works
which provide direct boost to rural economy.


Some problems


NUMBER OF I'ROBLEMS come up in the process of

imp1ementalion, of the programme, which ought to
be taken care of if the programme is to yield the anticipated restilts. In 'this paper, we discuss some of the '
problems that came up in tIie course of the implemen- ,j
tation of the programme in Andhra Pradesh~

More specifie)llly, the field observations on the working of N.R.E.P. in one block in R~ngareddy District of
Andhra Pradesh provided the material for this pape'r.
Detailed discussions were held with officials at the
block level in the course of field visits. '

,The N.R.E.P. was started ;;, the district in 1980.

The scheme taken up under the programme in the bloek",~
wzre minor irrigation, rural roads, ~ral housing, const~'"~ruction of school buildings etc. '
Release of Funds. The. first and foremost problem
is the delay in relerise of funds for taking up different
schemes proposed tinder ,the programnre: The funds
are generally released in, the fag; end of fillaneialyear,
either in the month of February or March and
the' officials are rushed to implement the programme,
to complete it ,within stipulated time. A plan' impleKURUKSHETRA,

November 1, 1982

men ted inllaste

wotdd result in w3stnge of. the rcsour~

Top dow/1 approach. The decisions arc taken at the'
top and the time lag that takes to filter down the decision to the lowest implementation
level is very slow.
;!rhe decisions arc transmitted'to
thc lowest leveL and
the opfnions of the offici?ls at the grass-root leyel. were
not taken into consideration".

But the present system of ineeting fiT'ancial
shortfall in the alloe,ltion would graduallv discoura~e
th~ Panchayat presidents from taking mo;c interest
the 'N. R. E. P. wo'rks thnn that they can take. without
financial commitments from them.
The rural unemp-,
loyed do participate in the programme for employment
and earnings, however the low levels of wages limit the
level of their participation.


Suggestions for Improvement

Raw Materials. For construction

of vario~s rural infrastructure like the buildings, minor irrigati'on works

etc., delay in procurem'ent -of necessary raw materials
was' a real constraint.
More often than not cement was
not available for the completion of works started.
~ \..';lsistcnce" Oi, ~chiC\-'ing targets. The tar~ets' ~re laid
4c)wn for the entire year, and strict instructions 'vere
given to adhere to the targets. Tn the anxiety io aehieye the targets often the quality and performance were
t-hel casualities.

row levels of wage rntes. The wage rates laid dow!>

al the state level may not be applicable strictly at district Of block levels.
The levels of wages vary from
to district and sometim-es even within
same district.
It \vas found that \vhen .the wages
offered were lower than the prevailing
local wages,
N.R.E.P. works were to be taken
lip during
periods 6f employment of the manner of spending that
"was possible, resulted in worksheing
taken up when
'btherwise the agricultural labour wa; not idle. 11".,
delay in payment of wages and other problems that
crop' up .leaves cmploymc'nt in N. R. E. P. less llttraetive to the people,
Problems at the Block Level. 11,e works taken up
under the prograntme are not part of a systematic plan
and hence do not follow the priorities
merit a development appro-neh. , When the block porsonnel are heavily burdened with various departmental
programmes it generally amounts to overstrech'ing the
limited staff for the impl~inentation
and monitoring of
these works spread over wide areas.. It was -the experience at the block' level that there were complaints
of the inadequacy of staff but such complaints
l!et rectified and. irr.espective of remedies
to these
problems, morc responsibilities arc thrust over-the staff
,~tlower level. with the result. the personnel can neither
fullv concentrate on their general departmental
programmes leaves much-to be des~tcd,

Community level participation


~TIER~'HAS been very gO?~ resp~nse from the people in the block to partIcIpate m the programme,
The panehayat raj' institutions that
N.R.E.P. rural institutional participation is theoretically



1, 1982

above probiems
and processes,
a few suggestions could be given 'for proper implementation of the Programme.

At the block level, the personnel are already heavily
burdel1ed with the multiplicity of programmes
For any new programme
that is to be
proposed for rural development, provision should 'be
made for supplementary
staff to implcm~nt the programme more efficiently and eUcclively.

Proper implementation
plan indicating definitc- time
schedule of starting and completion of various aeti"ities, allocating responsibilitics for completing each,
activity within the specified time, resource requirement etc., should be prepared in advance.
would hdp both the planners and implementers
monitor and control the programme from time to

The Gover'nment guidelines should 'be more flexibleto adopt works 011 the local geophysical and socioeconomic conditions of different 'fcglans. -

N.R.E.P. is a supportive programme ,to other major
rural development programmes like TRDP for building up rural infrastructure. "'hen various scheme-sl
activities of the IRD prognlmmc are implemented.
there-is a ,nee'd .lor proyi~ing"neC"~S'Sary infrastructure. to' sustain various activities/schemes
of the pro-:
On the other hand, N. R. E. P. has been labelled
as scarcity-relief programme for creation of employment for th'e under-employed
in lean periods
employment. The 'building up of necessary infrastructure which started in lean periods of employ!nent
, may not be completed during that
nre chances of labour shortag~ due to agricultural
peak p'eriods of employment. ' Tn such ellses pro~
vision should be made to pay higher wage rates than
is 110rmally prescribed which, should be comparable.


page 20)


Rural development",and
national integration il

. Deputy Secretary Union Ministry of Rural Dewlopment ."....~

majo~ progrrllnmes being implemen, ted by the Ministry of Rural ,Development are :(i) Integrated Rural Development Programme


ral proullctioll aild reductIon of unemployment

provision' of gainful employment, among the rural poor.

tructure, fair wages, housing and house-sites for ,ihe.

landless, village planning, public health, education and

The programmes are ,implcn)ented through the State

Governments and the Centre provides them neces- ,
sary leadership and gu~dance from _time to ti!11e. Over 1,
the period, quite a large number of steps hU;vebeen 1
.taken to deceIJtralise th~ powers of, the impletuenting
agene-ies with a.~iew to achieving the optimum results.
The, expenditure, on most. of the schemes is shared by
the Centre and the States on 50 : 50 basis. The great
emphasis which the Gnvernment of India lays on the
rural development can be judged from the fact that as ~
against the ~xpenditure of about Rs. 50 crores for the;
schem'es in 1974, it now stands, at about Rs. ' 550

fUHcti,onalliteracy, communications

crores this year.

National Rural Employment ,Programme
(NREP) ;
(iii) Drought' Prone Areas Programme (DPAP);
(iv) Desert Development Programme (DDP) ..
, In its broad sense; Rural Development 'is a comprehensive programme of activities -which includes agricultural growth, sr;;ttingup of economic and soCial infras-

etc. It has two focii

of atlentio'n:The job of coordination

(i) Economic development with close inter-action ,
between the different sections and sectors;
tso, ON,E. OF. the other fu~ctions of the Ministry
(ii) Economic growth specially directed to the rural
lS coordmatlOn of the different aspects of' the
panthayati raj, aimed at involving rural masses in I'
looking after their own interests in many walks of life. ,
Th~ Ministry of Rural Development as we]] as the
It is a state subject and financial provisions for this
States and U.nion Territories today have a ..very imporpurpose jlre madc by the respecth'e States in their bud. ,
t2.nt role to play in"th~ generation of additional incomes
gets. The role of the Government of India is limited !
for the rural. poor. The main thrust of the programmes
to providing a general dire<:tion to the working of the
,,,Iating to IRDP, NREP, DPAP, DDP, TRYS~M
, Panchayati Raj Institutions and in ensuring their effec(Training of Rural Youth for Self-Eniployment) etc.
tive functioning. A Committee was set up by the
'is towards assisting- the target groups consisting of the
weakest elements in rural society, namely, ~gricultu'GovernnlCnt ~nder the chairmanship of Shri Asoka
Mehta to 'enquire into the working of the Panchayati
ral labourers, small and marginal .farmers, artisans,
Raj Institutions and to suggest measures to strengthel'
scheduled castes and ,scheduled tribes etc: Identified
them so as to enable a decentI1llised systeni of plan. families to_these target groups .areprovided
ning' and development to be' effective. The Committee'
and loans fo.r acquiring assets and resources which
has submitted its r~port which is under consideration
have the potential for providing employment and addi- .
tional incomes to the beneficiaries. In the multi-pronof the Government.

ged effortsillvolving


and conservation


water and human-the' objective is
to raise the standard 'of living and quality of life, particularly of the poor, Rural Development thus encompasses both spatial and functional integration of all '
rc1evant, programnies 'bearing on increased a!Vicultu-

From the above, it would thu's be seen that the programmes of this'Ministry are not only directed towards
amelioration of the lot of the poor and removal of regional imbalances but also ,in achieving the goal of
national 'integration.

KURUKSHETRA November 1, 1982,

What integrated rural

development is about?

:INDIA 1l,alionalised
14 l~ajor
commercii\l banks on July J9, 1969 and agam 6
more nlajor commcrcial
banks on April 15, 1980
.to make more (~redit available to ~he. weaker sCftions
of the society and to rClllOvc
econonlic imbalances
and conccntration of wealth. The concept of Welfare
State envisaged in our constitution -viz., to accomplish maximum good for maximum people
can be
achieved oiuy by eradicating
po'vcrt)': ignorance" and
e~lc-mies of mankind,
from the
tountry' on a war footing.


The concept 01 Lead Bank envisages "area approach

to development.
among the factors
(i) credit; (ii) extension "activities;
(iii) infrastrll~tural facilities.
The Committcc headed by the Deputy
Gdvernor, Reserve Bank qf India
following guidelines for the effective implementation
/ of priority sector lending and 20-pointEeonomic
Programme by the banks..

. (4) All smail scale industries with credit limits uplo

Rs. 25000 shall be treated as 'weaker
undel' the category of small scale industries.
Advances to weaker "sections shall be '12.5 per cent of
the total advances to small scale industries by 1985.
(5) Priority sectors should also include items like
consumption credit; housing loans for' the .poor and
credit to the beileticiarics' under 20-Point Economic

(6)' Advances under "Differential Rate of Interest
Schcmc "(DR!) sliould reach. a level of at least
1 pcr cent "of the total c;'cdit. 40 per cent of DRI
a4vances.sliall Schcduled caste/Tribe COI~l1ln-


Work under sixth plan

SIXTH FIVE vtAR PLAN for 1978-1983
rcvi~cd to' 19.~O-L985) .envisage.s, among 'othef:
things, the following ..maj<?f o~jectivcs :


(1) .Priority sector '!.dvances of the banb si;ould
rcach a level of 40 per cent of the total advance by

and significant under2

,(2) 40 per cent of priority sector advances or 16

per ~el~t of lotal credit shall go to agricultural ?nd
.Af' allied activities by 1985, .
'""" J

(3) Direct advances to weaker sections in agricul- ..

tural sector shall reach a level.of 50 per cent of the
total Ic;'ding to agriculture and allied activities by
1985. Wcaker sectors shall include:
(a) Smalllapd marginal farmers holding less than'
5 acres of land ~Ie agricultural labourers.
(b) Persons engaged'in
allied 'activitic~
borrowal limit docs 'not excecd Rs. 10000.

'Thc rcmoval of unemployment



1, 1982

An appreciable rise in thc'standard

poorest sections of the population .

of living of thel

. Provision by the State of some of the basic needs

of the I"0O:ple in lower income groups like drinkilrg
\vater, adult literacy; element:iryeducatlon;
e-lectricity, health care, rural roads, rural housing for the
. Now kt us study in detail the first factor of developm'cnt viz., credit. The other two factors' viz., :extell- .
sian activities and infrastructural
facilities will be dealt

with later.
The poorest among the people belonging
to luwer strata of the society whose income shall not
exceed Rs. 2000 in rural arcas
and Rs. 3000 _ in
other areas per annum, can be financed under DRl
scl1cmc. Here again, ~he government stipulates that
lwo-thirds o[ the total DRI advances shall be made in
rural and semi-urban
and only
one-third in
urban .and metropolitan
areas. The idea is to' extcnd
thIS benefit t;;-' the villagers living below the poverty
lin~. Pump-sets, drop, dairy, poullry, piggery, basket,
rope, mat, handloom,-[odder,
cheap eat~bles, laundcy,
saloon, watch repair, sewing machine, carpenterx, p'oor
bright sludents, bee-keeping, panshops, hotels can be
hnaneed nnder DRI scheme.
For people whose in-

comes- are more than what is

stipulated _for


schemes; banks can .finance them with higher r~te of

interest' stipulated by Reserve. Bank.
Again, aU lhese
pri~rity sector schemes are covered
cover and except in the case of small borrowc(s the
guarantee fce is borne by the borrowers
The financial risks are thus reduced by Deposit Irumql'nce and Credit Guarantee. Corporation.
by seeking refinance [rom ARDC for agricuitural credit
aiJd [rom IDBI for lradiilg/industria!
credit, hanks can
-nol only have better'liquidity
position, but also lend at
a .cheaper rate, which is quite essentia~ .to hold the
price line.
Under ~xtcnsion activities we may include adUlt education; family.planning,
expert lectures; farmers~ training camps, field demonstrations,
cattle sb:ows, cinemafeatures with the help of st~te government/local
and voluntary'.organisations.
Moreover, these extensive
activities will give adequate knowledge
to our rural
folk not only to improve their production, but also for
proper ns'o of the credit, which they are bound to repay
to banks with interest.


UT FOR THE Integrated

Rural Development, eflec.
tive infrastructure
like road transport: irrigation;
drinking-' electricity, schools, dfspe.qsaries, primary health. centres, warehouses, ~naIkets and drainage
arc necessary.
But these aqivities are by and large
covered by the gov~rnment/government
donation etc. But these
bodies and voluntary organisations out of gov'~.rnment
donation_ etc. But these
are the basic amenities that are reqnired by the rural
folk to ensure mme ~cal!h, out of bank credit.

The Government
of India 1ms lurther stipulated
a t-ret1it deposit ratio of 60 per cent. at each place.
The' 20-point economiC programme envisages .finance
t~ twin priority sectors viz.; ~icultur.e and small scale.
industries. Planning at the 'centre' e-stablishes national
priorities at the centre and is indicated by budgetary
allocations; Within the framework of ]Jutiona1 priC)ritics) planning is conceived for the country .at the central level and at State levels [or each state.

plans for each sedor like (1) Agriculture, (2) lndustry, (3) Health, (4) Edncation,
(5) Comniunteation
are- pre-pared for imp1cn1cntatiol1.
Devclo'pment Programme ..I'as launched by Central Go- . \'~"rnment to a(fhieve full employment in rural arcas in
1 (Y years, I..!! a. de-vciaping co~ntry like India, every\-:
bank should [unction like a dcvelopment bank. Under
Inlegrated village development programme, banks are
,~dvised to select vil1ages consisting of poorer famiJi'es
more than aftlllcnt one:s. In the case of f~l1~mloans,
banks have to insist for reve-nue receipt, possession cer- .
tificate and no due certificate
avoid duplicate finance
to the same borrowers.
Priority should be given to
the families of small/{narginal
labourers, village artisans, physically handicapped, SC/
ST communities and other
sectors of the
suciety. . The village development
plan should
ailJl at nOl1:-c-rcditactivitic~ likeeducatioll)
he31th, sanitation) drinking water, etc. to thevillages with the help
of the Gover!lI11c-nt dcpartrilcnts; -semi-government departments and voluntary agcrcies.
, .,



Attack on poverty

has, therefC?rc, .to 'be

. made jointly by the credit institutions/extension
The district Rural Development Sa'ciety established at. the District Headquarters
is charged with
tbe task of -

DIRECT AT.rACK 011 poverty

(I) Identifying small

agricultural -labourers.





gainful employment

(4) Co-ordination
cial institutions.



to them.

of rural indnstries.




Integrated Rural Devclopm.entProgrilnlme

is sjmilar to SFDA witb a little difference; while SFDA.- -is
confined to a1!ricultllral sector; District Rural Deve-Iupm~_nt Society is open to help. the village artisans including small sc"l" Industries_
Under lRDP it is the
antyodaya appro<)_ch.viz., poorest among thc- poor is
first identified and helped'. Accordingly,-lhe
poor are
to be covered as below;
.Incol~!.c Range Rs,


per year to be covered


Income Range Rs. 1501-2500 pel" year to be eove.~red next:

Income Range
covered next.

Rs. 2501-3500


year to be

Here, :it ,is also necessary to kno\v som'~ of 'the. defi-:Ililions to calculate the ~subsidy available to the ~arious
types of rural f'ilk from the DRDA's.
Marginal farmer: Farmer possessing upto 2.5 acres
of land with (ot.aJ incorP9 of not more than Rs. 3500
per annum,





t, 1982 '

Smail farmer: Farmer possessing more than 2.5

acres but less than 5 acres of land, with total income
of not more than Rs. 3500 per annum.
Agricultural labourer: Permanent resident of the
...; village, without any land with an income of not more
..., than Rs. 3500 of which at least 50 per cent shall~
be from agricultural labour.
Sma.l( fishe!mall: Person engaged in fisheries with
an income of less than Rs. 35.00 per annum.


Small farmers snbsidy scbeme is not in operation

";'ithin the municipal limits. Here again, the idea is
rural development. The village accountant shall identify the marginal farmer/small farmer and agricultural
labourer. Rates of subsidy are as follows:

Maximum limit

iype of borrower


1. Small farm~r

25 per cent oJ
Bank loan
33} per cent of

2:"Marginal farmer/agricUltural labourer

small fisherman
3. Scheduled tribe





programme is essentially an

ence of drought considerably over a period of time.

The strategy is to improve the economy through a' package of infrastructure ;Illd farm development.



At present, the subsidy is in operation for the following schemes :::-,

(4) Horticulture:: .coconut, .chillies, ve,getables

banana, cashewnuts, sweet potato, gardening equipments demonstration.
(5) Fisheries: Boats, nylon thread, outboard
engine, purse-seine boat, fibre glass boat.
(6) Others:
Construction of market yard,
training of rural youth for self employment,
tailoring ceutres.
The loans may' be availed individually; but loans
for exceptionally big amounts are given through the
co-operative societies formed by the eligible borrowers
Just a~ there is a maximum limit for the subsidy, there
is a maximum limit for the subsidised borrowing. The
details can be had from the District Rural Development
Society situated at the District Headquarters of each

D area development programme to reduce the incid-


Bank loan
.50 per cent of
Bank loan

(3) Animal Husbandry: Milch animal, Cowshed construction, poultry, piggery, fodder, .
grass demonstration, frozen semen cylinder,
milk can, mini-chilling plant, van.

(1) Irrigation : Irrigation wells, pumpsets, Well

(2) Agriculture: Land development,' sprayer,
'duster, chemical fertilisers,' demonstration,
ploughing bullocks, Burnt lime. Inputkits,
groundnut crop.

The .community irrigation works including drainage

owned and maintained by a co-operat\ve society or
Panchayat. or for the benefit of small and marginal
farmers are eligible for subsidy by DRDA's. Implementati~n 'is as important as planning. But' we have to
select honest people and motivate them to take' up
lucrative ventures and gaigfnl vocations to increase
national income and production and to hold the price

: Gianls,

August 1982)

(Comd. from page 5)

part of their officials in lending for IRDP.


. Bank officials who may have commHted bonafide

mistakes in determining the viability of schemes under
IRDP and are consequently held responsible for nonrecovery Of dues should be protected by the mam;gement.

""'\ KURUKSHETRA November 1, 1982'

State Governments should help banks by developing infrastructure facilities like storage, marketing,
health cover. for animals etc. without which credit
support would be of no avail as well as by assisting
in the prompt recovery of bank dues. They should
also help in providing bnildings and other basic amenities to banks to enable them to set up branches in difficult and inaccessible areas, particularly in the north-'

Helping rural artisans

s. K.




~ .

traiping for. a period of a fortnight, the tr~ining programme as far as possible are arranged all .the spot;
and (ii) 'those artisans who require training from three
months to one year, depending upon the trade; their
training is arranged in suitable institutions.
If necessary, in-pIa'nt training- in suitable industrial .units can
also be arranged.

The categories of persons who are eligible for

assistance under this programme are: (i) all rnral
artisans. and their family members in the district excluding towns having a population of more than
25,000 according to 1971 census; (ii) all farmers who
have less than 5 acres of land and their family members;. (iii) all landless. labourers who a~'e willing to .:
become artisans. The landiess labourer is' takeh as !
one having a permanent homestc?d and drawing more

than 50 per cent of the income .from agricultural pursuit; and (iv) all tribalsin the'district.
Selected artisans can IJe provided 'stipend upto a
maximum "mount of Rs. 100 per month during the
period of training from the DIC fund. In exceptional
cases where more stipend is required, the Development
Commissioner: Small Scale Industries is to be approached.

envisages grant
T of subsidy to artisans' to assist them
stabilise in




their' own professions. The subsidies are of different

kinds such as tool kits, plant and equipment, managerial sUQsidyand ~ubsidy'for work-sheds. The subsi- "';
dies 'are:

(a) 'Iool Kits.-A tool kit after training 'OE artisans can be made available on 100 per cent subsidy
basis up to Rs. 250 and subsidy up to Rs, 500 can
also be given with the approval of concerned Small
Industries Service Institute. The list 'of . tool kits
in case of certain trades has been approved by the
Developrilent Commissioner, Small Scale Industries.
(Contd. on p. 1'6)

KURUKSBETRA November I, 1982 yo

'Participation in rural
development: a case study
Research Asliociate, NIRD, H)'derabad

of planning era, in
India several socia-economic programmes havebeen .designed and attempted by the Government to'
transform the rural scene. Community Development
and Panehayati Raj was the first and the foremost in
this series. ,All these programmes were aimed at
securing the eo-operation of the local people for their
successful impleme~tation. However, it was noticed
'that there was a wide gap between the admihistration
and the people which re<]uired 10, be bridged for the
successful implementation
of the propamme.
need and importance of people's participation which
was .3 must for the sustenance and co-ordination of
the programme was overlooked' in all the programmes
right from the stage of planning and formulation.
Hence, all these Programmes. llppeared . "as people's
programl:nes with Government participation instead ?i


heing Government's.
'the Whole Village Development

gramme '(W.V.D.P:), recommended by the N~tionaJ

Commission on AgricuJture' (NCA) durin~ the Fifth
Plan was based on the CqDccpt of community,participation.


The Central Theme of the W.V.D.P. as conceived

the NCA was development. of the village

as a

whole where the interests of the _~ntire rural

. community including small farmers, margin~l farmers

and agricultural labourers are kept in vie\v. The idea
was to deal with the village problems in their totality
through a package of programmes so that the segment
of development could be woven into one integrated
whole. The programme was intended to achieve
objectives by redudng the disparities in inc~me ampng
the rural population and increasing. employment op'KURUKSHETRA'Novemoer

1, 191i2

portunities in the villages.' The assumption was that

given proper leadership, community agreement, organisational support, it would 'be possible to secure
i'through common action, increase i~ production and
benefits of lasting value to the rural economy. The
programme content was primarily directed towards the
development of agricultur~through land development,
consolidation of holdings, maximising irrigation potential, crop programmes., animal husbandry, village industries etc.
'The W.V.D.P. has been launched in five areas locat, cd in four states of the country. The projects were
tried on a pilot basis, particularly in gramdan villages,
where ,the community spirit and community action to
a large extent has bcen demonstrated., One of these
five projects was implemented in a cluster of 22 villages located. in Mushari' Community Development
Block in Muzaffarpur District of Bihar.

Voluntary ageriies and W.V.D. P


of NCA, the implementation of W,V.D.P. in Mushari Block was entrust. ed to a voluntary agency, namely,' the Muzaffarpur
Development Agency (M.D.A.). ' 'This Agency
(M',D.A.) started implementin~ the W.V.D.P .. from
Oefober 1978. The details of programme undertaken

are- giyen below: :

1. Minor irrigation scheme such as construction

of community tube \vells of 6" ar~c14-" diameter,
lift irrigation scheme, tubewells with pumpsets
. operated by electricity and dieseL
2. ,Drainage scheme reclaimirig land by bowling
out excess- water [rom the land 'with people's participation by way ,of' dohation .Of:land and shramdan.

3. Agriculture
fertilisers, farm
mDnstratiDns Df
medium farmers

: Supply of farm inputs'such as

implements and hDlding field decrDp-rearing to. the small and
through cDmplete demDnstratiDn.

4. Animal Husbandry : Supply Df milch animals

such as CDWSand buffal"\'s, gDat, sheep, piggery,
poultry, 'draught bullocks, fDr creating supplementary occupations.

5. Horticultural schemes.
6. Fisherie.s : DevelDpment
munity basis in tanks.


fisheries Dn com-

7. Small industries and trade schemes.

8. Debt


and cDnsumption



In all; 5542 beneficiaries were co.vered by the above

programmes in the 22 prDject villages which' cDnsist
Df 4583 prDject families.
Aswas based Dn cDmmunity'the participatiDn.



this fact in view and also the assumptiDn that given

proper leader.ship: community- agreement and organi":
satiDnal SUPPDrt,it wDuld be possible to sccure peo'pie's cDDperatiDn, the MDA started implementing the
abDve-mentiDned prDgrammes by fDrming the Project
ImplementatiDn CDmmittee (PIC) at village level
and the Project ImplementatiDn Uni,,-n (PIU)
the prDject .administratiDn level. Further, the .MDA
has recruited project staff members frDm the project
villagers itself.
The Project



registered under the SDcieties RegistratiDn Act. Each
PIC cDnsists Df nine to. fifteen members depending Dn
the size Df the pDpulatiDn in each village. The members Df-, the PIC represented by all sectiDns Df peDple
'!ore either elected Dr nDminated. The PIC in each
project village handles the programme, prepares and
supervises the implemeiltatiDn Df the prDgramme. Besides selecting. the beneficiaries for each Df the programme, the PIC receives all the funds and advances
them to the beneficiaries.
fDr each, Df ~he prDject village was constituted

As the prDject villages are lDcated in the gra~dan

villages the existing statutDry body, namely the gram
sabhas in each village has been cDnverted into. the
All the PIC's are affIliated to. the PIU which has
be;n functioning as a supervisory and coordinating
body fDr thc project area. It provides technical and
Dther services to. the PIC's and ensures 'adequate CDordination at various stages Df develDpment. In additiDn, the PIU disburses the amDunt received from the
state to the PIC's at the village level.

Findings of the study

Minor Irrigation.-111e minDr lfngatiDn programme
includes construction of community tubewells, Df bDth
big and small sizes, lift scheme and installation of
pumpsets. Under this scheme, in total, 998 families
covering 12 out of 22 project village were benefited.
Though the selectiDn of beneficiaries was dDne by the
PIC itself, the management of community wells was
entrusted to', the beneficiaries themselves. A small
committee cDnsisting of five members among the bene'ficiaries has been fDrmed to manage the affairs Df the
coinmunity wells and lift scheme. The nature Df responsibilities entrusted to. this cDmruittee are recovery
of watcr charges from tl!e cDncerned beneficiaries,
maintenancc and repair of. pumpsets, settlement of disputes, if any, arising ont Df distribution Df water. Further, one person has .been appointed on payment basis
by the PIC in each programme village to.,operate the
community wells ..

Drainage Schemc.-Most
Df the project villages are
located in low lying area, and are frequently affected
by floods in Burhi Gandgk river. Due to lack Df drainage facilities, the adverse effects of the flODdscontinue
fDr long after the waters, have receded. Hence, the
cultivable lands were in flood during the monsoon
period, as a result Df which the cultivators could not
raise any crops. It was suggested under the W.V.D.P.
that if the water cDuld be bailed out through the digging of suitable drains, a vast area could be reclaimed


and put into cultivation. The cODperatiDn Df the ele- '

ven villages which were affected by the floods were required fDr digging and widening of. tlie drain and also.
the donation of land to be covered by the widening
drain. With the assumptiDn that the people wDuld ex- '
tend their Co-opc!ation,

the drainage scheme was in-

cluded under the W W.V.D.P.

At the time Df implementation of this scheme, it
was Dbserved that community spirit and CDmmon action
which was the corner-stDne of the W.V.D.P. was demonstrated to a large extent by the beneficiaries.
People in the programme villages have contributed
necessary land for the constructiDn of channels to.
conduit the excess water from their lands. For the
smooth Dperation Df this scheme, they fctrmed a CDordination committee, comprising representatives of all
th." villages _benefited by this scheme and resolved all .,,",
the disputes and differences arising at the time Df implementation. Initially, it was planned to execute thIS
scheme in tliree project villages, However, at the time
of implementation, 11 villages had been cDvered, in
view of overwhelruing support and involvement of peDple, in implementing this scheme. It was estimated
that this programme had benefited 500 families of
which 145 beneficiaries were small farmers and 255
wcre marginal farmers. Further, this scheme faciliKURUKSHETRA .November 1, 1982

[ated ..proteefion of iOOO:aeres . ai'proxllllatc1y under

. Kharif crops; 1563 acrcs 'under Rabi crops and 1563
acres ynder summer crops.
Agriculture . Devcit.ij>ment
Programme.--- This
pru,gramme includes the supply of inputs such as fcrtilisers,
~ distr"ibution of f~lIrn impleinents and crop dCJnonstratlon. Amvng these schemes, people participated to a
large extent in 'the distribution of farm implements and
conducting demonstration
of crops.
An element
community action was perceptit>lc in the operation of
these schemes.
In respect of farm implements for individual usc. the beneficiaries communicated their needs
.to the local' project implementation
committees (PIC)
The leaders of the PICs after pooling the
-'T' deniands,
purchased these a'nd supplied' to the beneficiarIes for ifldrvidual use~ In the case of cos't1y imp1e. merits.;" "like power sprayers) threshers; they were purehaseo by the. local PIC, ~t1er ascertaining the people's
needs and handed them over to the sub-groups in the
villages. The sub-groups forming themselves as small
hired these- instrumc;n!.s by collecting
1l.oniillaJ ,ainount'Sas hire charges. 'These hire charges
w~i'yutqised for maintaining and servicin~ the- farm
l~ the case of demonitration
of. crops scheme, demons.tralians were conducted 'in the lands provided .-by
the beneficiaries.
92 demonstrations
organised in .which smalJ and mar~nal farmers participated.

stlrgcon-;' HO\~cvcr,~'lt.was' noti~cd t1~atthc ..l~e]~eficiai'ies'

did. not co-operate to spare land for fodder raiSing as
the' land holdings of the beneficiaries being too smalL

Small industries
industries and trade scheme, people- in tbe
project vil!ages were given loan by .s .many as six
nationalised banks and One grameen bank.
In total
205 persons received loan and'subsidy
for clifferent
The am.ount provided to the beneficiaries vari- ed from Rs. 2000 to 5000.
People in all Lhe project
villages evinced keen interest in implementation
o[ this
p-;'ogramme. 'Not only did they show much intcrest
and extend their support in processing 01 their applica. tions for the banks, beneficiaries in .their respe'2tivc
villages collected t.heir mo~thly instalments and rcmit- _
ted the !-!mount .in the -respective financial institufjons.
In some cases, beneficiaries who cou:d not remit the
amount in' banks, collected the uues and d'~p"sited' in
the safe custody of the Gram Sabha.
Further, in the
case of defaulters, the Gram Sabha in' each village organises monthly meetings and dj~cusses th~ repayment
position and takes necessary action.
Ev~n the bank
who were the
main. be'nefil.:iaries
most df the progr:lI11tl1es under. the W.V.D.P., appr~ciated that but for the willing participation
of Lhe people, Lhey would not have carried out their work properly and il~ time,.


Schemc.,.....:....Fisherjcs scheme

as one

of the

non-farm programmes .under the W.V.D.P. was introduced ilL three villages perennial waters were
Tbis progJeamme is directly managed by the
Gra;n Sabhas of the villages concerned.
It is an entirely community work. It was stated lhat before the
\V.V.D.P., the government used 10 auction the village
tankS annually to. the private parties.
The people
thought such a sy~tem would not promote sdcnti:fic
pis~icu1tui-e. Hence, they appro~ch~d- th~ Gove.rnmcnt
and managed to get the tanks in favour of Gram
Sabhas on lease for five to ten years so that the fisheries sche~lC .could be carried out successfully _and on
scic-ntific. ,lliethods.
Animal Hushandr~' Schcme.-Undcr this scheme were
, ipcluded the supply of mileh animals like cows, buffa"':>joes, goats. sheep, plough bullocks and poultry birds.
The main objectives 9f this scheme was to generate
additional income a'nd 't6 provide supplemenlary' occupation to -the low .inCOl}lC .~roups. In total, 1072
families received benefit under this scheme.
Beneficiaries for the diffe;ent anjmal .hu.sbandry pro.gramme
were selected by the leaders of the Gram ~abhas
Animals were purchased by the beneficiaries
ul.omselves as they liked ill the cattle markets.
PIC paid the price after verification by the veterinary



Oeb! Redemption
and Consumption
Loan.~ These
programmes were intended to relieve the financial burden of the poor families in the project .villages.
was heavy dem.and from all the project'
<lvail of this seh.eme. With the jimited fund allotted
in th.,:: plan proposal: as many as 354 families \vcrc
benefited under these prognlmmes.
The implementation- of. these programmes Was taken up at the village
level by the project implementation committees (PIC).
The funds sanctioned under this programme were a~lvanced to Lhe PIC's and the PIC's have disbursed 10ans
to. the. eligible individuai beneficiaries selected. JI1 the
case' of debt r~demption scheme, ther~ \v~re some prob- ..
lems cncountcr~d
in 'the implcmclltalio'n.
Most of the
debts in. the project villages were unwritten and the beneficiaries selected could not produce legal documents,
In 'such cases, the leaders of the programme villages settled the problems by calling open meeting,; and discussing the individual cases.

T other development programmes of the- Government







was that the execution of W.V.D.P. was entrusted to

the voluntar)i orgnn.isntions. I'n the implementation
in Mushari 13l0e.k in Bihar,
the voluntary
organisation nanitly, the MDA, which was assigned the.

role of implementing
th~ programme, h~s played a,
lllcaning[ul rolc.- As the .MDA WJs already working
in the Project
area before
the' introduction
it could carry out the W,V,j),P, without
Illueh 'diniculty,
By eatalysing the rural popular to\vards development approach, by representing it as ,the
~gcnt of the people of the mea, and by idelltifying themS2.lves with ~hc .local needs- and aspirations, t.he MDA

from 1',12)
(b) Plant and Equipment .-In case an. artisan
wants to install machine:ry. in ,his unit (which he
has set up' after completion of training) <1,subsidy
at the rate of 33-1 f3 per cent can be provided for
plant and equipmcnt to in9ividnals and at the rate
of 50 per cent to the cooperatives, TIle maximum
sub~idy permissible'is
Rs, 3,000 for an ,individual
and Rs, 5,000 for a co-operative.

e[lsured people's


to a large extent in the

The Government
now and then initiates ',certain
pr~grammes for the socio-,economie development
rural poor.
Bul, without the active particip~tion of
,their people, no development
programme can make \.headway.
Hence the need to ensure the participation"
of the people in these programmes.


(c) Managerial Subsidy ..,..-There is a provJS'ion to

provide - managerial. subsidy in case of the co-opcratives.
Subsidy is given only to such co-operatives
which arc formed by the trainees on' the completion of their training courses,
The amount of sub'sid)' is cent per cent in the first year" of oiPera~ion,
and 66.2 per ceilt in the second' year.
It is reduced to 33-1/3 pcr cent in the'third year and no subsidy is provided :in' the subsequent per'iod. '
(d) Sub,id)' for WOl'ksl1ed,":""For construction
work-shcds, subsidy c~n be provided up to 33 per
cent. This is subject fo a ceiling .of Rs.' 5,000 for
a co-operative.
There is a provision of honorarium if the tmining
is being provided fn the Industrial .Training Institut<:.f.
or a similar' institutions. '111 that casc,
thc staff . directly, COJ1cenied ,with the training programmc, i,e .. Instructors, Clerk and Peon can be raid
honorarium which should not exceed 20 per cent
their basic s~lary.
If an Instructor is to 'be appointed
for 'a training course organised without the help of
ITI or polytechnic etc. the pay of Instructor shou~d


bc a consolidated salary not exceeding Rs. 500 per ;..'

_ month.
In such cases wherc new trade isJo be start" \
cd at any ,of the Institutes where training is imparted, '
expenditure towards the purchase of additional maeh- . "I
incry ancl e_quipm~nts a'nd on salary of. tr~de instruc~
tors can be met from the RAP Funds, ' if specialised
training orgtthisatioris
agree to provide training' -' to
artisans at tbeir premises, ~ provision for supply for
'taw materials, postal fees, supervisors' fees could be
m,ide with the ~pproV'al of the Development Commis-'
sionc]' (Small Scale Industries).
could also be arranged at factory premises with provision of stipend, and raw materials etc ..

Raw materials and machinery

for raw materials permis.sible per trainee per month is Rs, 50.
proullc~d incidental to training be~ome the property
of the organisation_ conduc;tjOng the programme.
Normally machinery "I ready installed in ITls, and other
training centres :shouk! be utilised. ]I! -,,!se- of additional -machinery; the- barest minimum has' to be purchased,
H-ErvIAXltvIUI\'l amount



To 'conclude, thc Rural Artisans Programme is not

oilly meant for those who- possess some deg~ce . of
skill and proficiency in their respective
fields, but
training' can also be provided to such boys and girls
who have the inciiilation to undergo training,. but possess no skills.
Training programme can further be
arranged for the henefit of tribals taking, into conside-"
ralion the skiIJ which they possess and local requiremC-111s 9f the areas concerned.-






1, 1982

Edible oils ~ need 'to

step up output
Faculty of ~ommcrce, M.A.U., .Aligarh

pivotal role both 'in the agricul, '

tural and ihdustrial economies of the world, But,
it is depressing to note that the total 'demand or consumptionfar
outpaced the output in, our country,
Though the crop yi.eld of oilseeds in India has considerably increased, even then the requirement of edible,'
oils for the vastly increased population outstrips the
total production. While reasonable infrastructure exists
in our ~ountry to meet the growing demand, a c~itiCal'
, analysis of resource materials individually is needed .
~ Formulation of an, integra.ted strategy based on research and development and incentives and disincentives can help to improve the situation. This calls for
concentrated efforts on our part to enhance the production of new as well as conventional oilseeds.
In our country the cultivation of oilsecds is of para,mount significance. These seeds provide most imp.ortant cooking medium in our country and they' are
obtained by crushing of oilseeds. These oilseeds .not
. only provide a' rich source of f~ts and proteins to human beings 'but also prOVide source of livelihood to
more than 140.0 .lakh persons. But it is interesting to
note here that per capita availability of these oils is
very much below the level recommended by the health
authorities. ' All this requires an added attention of
the Central as well as Stale Governments towards enhancing..the production of major oil seeds in general and
f-~'non-traditiomrl oilseeds jn particular.


Importance of oilseeds


oils are .obtained -mainly.



rapeseed and mus.tard, sesamum, cottonseed linseed, coconut _etc.. Minor oilseeds are such as neem,
rriahu3, sa], karanj, 1}hakan. nahor, kokum, undi" pisa,

kamala, dhupa, chaulmoogra; and from so many other

non-traditional oilseeds, oH is obtained through technological processes like rice bran, maize; gerjll, cottonseed
and mango kernel.


November I, 1982

India is the' biggest producer of groundnut and

ranks, second III the production of rapeseed, mustard
a,ne! ses~11lum.. ~oc-onut oil
is heing ;-Ised by a small section of the people H"ing in
the coastal are-as where- coconuts grow :in plenty: India
ranks sixth in th~ world output of nearly 29 million
tonncs of edible bil.
The m'ajar oi]se-eds grown in India are' groundnut.
rapeseed, and' mustard, sesamum castorseed and cot~
tonseed. 'In 1978-79, groundnut accounted for about
64 per cent and ranked first.. Rapeseed and mustard
came next. constituting 19 'per cent, \Vher-eas sesamum
and linseed formed 5 per cent and holds third place,
The remaining 7 peL cent is shared by castorseeds. salliower and nigcrseect. Table I indicates trends in the
"rea, production and productivity of five. major oilseeds between 1948-49 and 1979-80.


Area, Production and Yield of Five Major. Oilseeds

1948-~0 ..
('000 Hectares) ('000 TOIlIle's)

. Yet/I'



1948-49 .
1955-56 .
.1960,61 '.
.1965,66 ,
1970-71 .
1975-76 .
1976-77 ..
197.7-78 ,
1978-79 ,
1979-80 .



. (3)'


24,933 . '
24,046 '


' 481



1 .5




SOl/ree : DAES-----New,Delhi.



It is clear from Table IT that tlie rate of increase

in the production of rapeseed and mustard is much
higher, ratlier highest"s compared to increase in the
rate of output of remaining four major "ilseeds. The

is the Inrgest produ1:er of groundnut in the

world and the same is cultivated in the statcs of
Tamil Nadll, Andhra Pradcsh

and Karnataka.

Gujarat alone constitutes 27 per cent

.rate- of increase in production is lowest in .case of lin-

of total country's acreage and 29 pcr cent of the total

country's production of groundnut. The other states is 'also cultivated are Rajasthan, Orissa, Uttar
Pradesh, Madhya Pradesh and Punjab.

seed. This implies that Central as well as respective,

State Governments must pay added a11ention to en'"\'hanee the output of linseed, sesamum, eastorseed

Similarly, India is also the third biggest producer of

mustard and rapeseed in the world. In' India the
major mustard .and rapeseed producing states are Uttar
Pradesh, Rajasthan, Madhya Pradesh, Assam and Har,yana. Jn the production oi these oilseeds:Uttar Pradesh
{ranks first accounting for more than





ot the country's total outpu.t of the same. Other mus.

, tard and rapeseed producing States are Orissa; Punjab,
Gujarat, West Bengal, Bihar and Jammu and Kashmir.







Pop,ularising oilseeds
. ,
it is evident

F thai over the years the output



of oilseeds went
up considerably, but tlie increase in .tlie production,
never matched with the alarming rise in the popuhition,
as a result tliere has been a deeline in the per ,capita
availability. of edible oils. Table HI shows tlie per
capita availabilitv of edihle oils between 1970-71 and

Likewise, 'Jndia is also the largest producer of sesamum and within the country Uttar Pradesn is the most
important state in regard to the production of sesa-

mum and within ttle country Uttar Pradcsh is highest

in acreage, thc Madhya Pradesh ranks-first. This imp'lies that the yield pcr hectare in Uttar Pradesh is very
mucli liigher tlian the yield peT liectare in' Madhya
Prndesh; 'lhis is why the Uttar Pradesh is on the top of
major producing states., Madhya Pradesh has also the
largest acreagc undcr linseed and liolds second place
in linseed production. Rajasthan comes next to Uttar
Pradcs'h ;n 'both area and output.


alarming gap between the demand for oilseeds and

supply of oilseeds. This all can be achieved if State
Governments provide better seedlings and adequate.
other inputs essential for having a good harvest.


Per Capita Availability of Ed-iblc Oils and Vanaspnti in

Gujarat being the major cotton producing state within tlie country, it produces most of country's cottonseed yield. It accounts for 25 per cent of country's
tctal output of the same. Punjab comes next accounting for 17 per cent of the' total with Maharashtra.'
Tabie Ii shows trends in the 0lltpUl of five major oil~
seeds frOnl 1948-49 to 1978.79.


Trends in Five Major Oilseeds Output : 1948-79

('000 T01mes)











15 ~5

112 .3


t 950-51
.J 975-76





144 .8


103 '

% increase

decrease over


Source: Same as in Table I.



._----KURUKSHETRf\, Nov. 1, 1982'

Measures to incteaseiJroduction
the Union Agricultural Ministry has
taken series of step~ and .measnres to narrow down
the existing shortfalls by introducing new package of
v'Practices and incentives. The main objective
of taking thesc steps is .to raisc the yield per hectare'
on the one hand and on the other hand to increase
area under cultivation of oilseeds. The Ministry
also proposes to bring command areas of Tungabhadra,
Hirakud and Nagarjunasagar dams under summer
groundnut. crops.


Added attention has also been paid on the increase

,!f oilseeds especially grourudnut, rap~seed, sesamum
and sunflower in the command area~ oJ .major irrigation projects in A.ndhra Prailesh, Karnataka, Ori,sa
and Rajasthan. Under this scheme nearly 3 lakh hectares have been covered by the irrigation programmes
as compared to a target of 2.4. lakh hectares. The
growth and developmcnt of non-traditionai oilseeds has
also been taken under a centrally. sponsored scheme.
The acreagc undcr this sclieme is nearly ~ lakh hcc'
laics. -Ole nccd of Ihe day is to enhance the production of non-traditional oilseeds as these' minor oilseeds
are capable of yielding large .quantities of oils for indnstrial and other nses,. which would. certainly reduce
:.,the pressnre on edible oils.
. ..

on the part of Central Governinent

Ito pay added attention
on the growth and developT IS NOT FAIR

ment of a few traditional oilseeds, to bridge the gap

between demand and supply. The development of
non-traditional soutces bf oil as well as the promotion
of various types of minor oilseeds would be vital. To
that end, it would be appropriate to introduce a: programme for. increa'sing the cultivation of soyabean
which contains. 20 per cent oil. This would be of
great help for protein deficiency in Indian diet. This
.could also be used for supplementing the traditional
pulscs in the Indian diet.

It is clear from Table IV that India is spend-.

ing considerable aniount of foreign exchange on the
imports of soyabean. It was lowest in the year 1972.73 .
is higheot in 1979-80 when India imported soyabean
worth Rs; 302 crorcs. As India is facing the problem
of foreign exchangc it has become of pafllmount significance to curb imports .of soyabean so that this money
can be used for some other important item. Hence,
in order to curb the imports of soyabean, the cultivation 'of soyabean has been underlaken over ~ area of
ncarly 2 lakh hectares. This area is in the States of
Madhya Pradesh,
Uttar Pradesh and Kamataka
, under
another centrally sponsored scheme. This area should
be ..extended further to other states of the countrv so
that the output of this important oilse';d may be""enhanced considerably.

Sunflower :-Sunflower is another important oil

yielding crop in the world. The main producer of
this crop are USSR, Rumania, Turkey and Bulgaria.
USSR alone "onstitutes for more than 80' per cent of
the global production of Sunflower seed. The cultivation of this oiiseed is vital because the productivity
per hectare as well as oil content of this crop is much
lllghcr than those of soyabean. This oilseed is also
very much useful as edible oil due to its low unsaturated fatly acid coatent. Hence, ,muc11emphasis must
bc given on the enhancement
the output and to
bring mO.e orea under the cultivation of this important
oilseed as it is considercd IJigh quality cdible oil 'because of its non-cholestrol properties.


Cottonseed :--Similarly, cottonseed is another unpol1ant Ilon-traditional oilseed and the need of the
day is to enhance its output. It ~Iso possesses
a good measnre of protein content. In the beginniJig
of 1950 hardly any cottonseed was cultivated in onr
country. But it was in the year 1972 when it was
realised that more and more cottonseed must be cultivated within the country as it is important constituent used in the manufacture ofvanaspati., This oilseed is also used for household purpose and many other
Jmportant industries are based on cottonseed such as
paper and pulp. Recently SOmemeasures have .been
. taken to i,:,erease the output of this crop by the. Ministry of Agnculture and it is hoped that in years to come
the- production of this oilseed would go up consider'lbly.
: ".,1

Soyal1ean:-The use of soyabean oil in vanaspati

manufacture has gone np recently. The requirements
of this important industry are being met through imports because the cultivation of soyabean .within the
country is negligible. In 1978-79 our country import- .
ed soyabean worth Rs. 219 crores.

November 1, 1982

Rice-bran :-Rice-brari oil is graties oil witll a composition approximating to that of gingelly (sesamum)
OIl. Its low linolenic acid cbnt~nt imparts it a distinct
advantage over cottonseed. and soyabean oils. In
highly dev~loped countries of the world such as Japan,
the. USA nee-bran oil is used extensively for edible

.purp~ses. In our country it is said that by removing

at least I per cent of the oil paddy by the existing
methods of processing not .less than 6.5 lakh tonnes
of bran-cii can be obtjlined besides two million tonnes
of defalled bran. In our country there are more than
62 such units with a processing capacity of 3.3 thousand touues of rice-bran a day. It has become imperative that we must have more units so that we
can be rNe to process more and more paddy.'
Added to these oilseeds there are some other minor
seed which arc capable 'of providing a substantial
quantum of oil for industrial uses like soap manufac"
turing, which if fully exploited would reduce the
pressure on edible oils. Thcse oilseeds inelude
Mohwa, Kusum, Karanja, Sal, Nahor and Undi. T-he
existing availability of' oil from minor oilseeds is estimated at nearly 2.5 million tonnes .. In the context
of present situation, the need' for organised collection
and effective utilisation of minor oilseeds has assumed
greater importance.
Needless to mention that increasing- use' of non-traditional oils in various oilbased .in-

dustries in general ~nd soap-making in particular

wonld releaseeqnivalent amount of edible oils specially groundnut oil for direct consumption.


show that the 'contribution of five

major oilseeds to total supply of oil within the
country ranging between' 84 per cent and 77 per cent
during the" period of 1975-76 and 1979-80. This


sbarp decMe in the supply of oils is due !o. shortfall

in the targets set for e~ch Five Year Plan. In this.
light of the existing avaiIal@ty of oils much emphasis
hasbcen given in the Sixth Five Year Plan so that the
g"p between supply and demalld ~ be reduced to a
maximum possible extent.


. The. Draft Sixth Five Year Plan (1978-83) had"

estimated the demand for edible oils for food at 2.6
million tonnes to 2.8 million tonnes and nearly 1.
million tonne for vanaspati for the year 1982-83. The
Plan had fixed the production target for five major
oilseeds at 11.2 million tonnes in 1982--83. There
is also a need for further illcrease in the outpnt of
these oilseeds during the plan period. An 'action plan
is in the process of implemenlJltion all over the CQUlh.-.
try to raise the oilseeds production in 1982-83.
In order to narrow dowll .the existing gap bet,.
ween .demand and -snpply of oils, research and deve..
lopment has become' imperative. In this direc ..
i."On ICAR is playing a pivotal role and has. 'set
up ten centres for conducting research on oilseeds. A
National Research Centre on groundnut has now been
set uP' at Junagadh in Gujarat for doing further research on groundnu~. crop. Stndies have also been
carried oun for the belter and wider cuLtivation of
the two newly introduced oilseeds in the country
namely, sunflower and Soy~bean. Hence, all .these
measures would certainly curb the wider gap' between
demand and supply of oils hI the eountiy and th.e
per capita availability would certainly go up.
.". at time oU anocaling funds and implementing the

(Cvnld. frvm page 7)

to the prevailing agricultural wage rates in the region.

. This would become necessary ir works laken up in
loan periods are to be continued through the peak
periods of employment. The e1lOicehas to be between holding up the work' completely for the peak
pel:iod and providing a little higher wages during
s,neh period.

Steps should be taken at all levels starting from the
stat.o level to the district lever that the funds should
be made available' at appropriate time for the implementation or the programme.

Personnel at lheplanning and implementation level

should, be well trained in .ntodern management techniques of planning and 'implementation.


Duplication or work by different programmes should .
be avoided to a great extent.

A thorough monitoring-cum-control

measures should }
be adopted at all levels of implementation for' app- i
.ropriate functioning or the progrannne.

While'insisting on achieving the targets the administrators and policy-makers should also give higher
importance to the quality of work performance: Due.
care should be taken to derive quality as well. al;i.,
the quantity of work. This would save most of our
devdopment investment from going waste.


There should be an exercise on benefit-cost analysis wherever possible fOr each of the items to be
undertaken under the programme. This. would
facilitate the .items of crucial importance and.
higher benefi~ over cost could be givon first priority

Above' all, people's participation in the planniug and

implementation processes should-be ensured '~n<lit
should be given highest priority without which' no
plan could successfully be implemented D.t local


1; 1982Y

They showthewuy

This feature is based on success stories viz. achieveinents gained iiz various
spheres of rural development by farmers, institutiOJis,' experiments and indivi'duals. There is hardly an argument over the fact that dedication and zeal to
put in hard work can achieve anything. Alid one achieveinent inspires and shows
. the way to others!
We hope our esteemed readers will send uo their own experiences in the
field so that others can benefit by Ihem to usher in a betler life for Ollr rural
people. (Editor)


~ave Grain Campaign and women


. block of district Mirzapur (D.P.) was the venue
of tl1e 21-days' Slipendary Training Course meant for
", Farm Women from 2lst.June to 11th July 1982, con'ducted by the Save Graill Campaign (Sub-Centre),
. Varanasi of the Ministry of Agriculture (Depart~enJ
of Food). This course has' been first of its kind since
the centre started working in 1978..

To provide a programme support to the course the

field unit of the Directorate of Field Publicity of the
(Ministry of Information & Ifroadcasting) reached

Barewan from Varanasi. A film show including the

film "Rats" was shown to the inhabitants which
covered the .subject of their training.
Monsoon having evaded even upto middle of July
and near-drou'gb,t conditions prevailing in the village,
the farm women under training were not pessimistic.
They owe their thanks to officials of the department
for doing all this in such a systematic way. The Save
Grain Campaign, Sub-Centre also celehrated productivity week from 22nd to 28th .June, 1982 when practical demonstrations and rodent and pest control work
in the viJIage was taken 1!Pin a fourfold way. Houserat control, Fieldrat control, profilectic treatment .ofinsects by Malathian spraying ami fumigation of foOOgrains for storage are worth mention.
Villagers reported. that since this training course
was meant for women, it became more purposeful.
S;torage and safety of food grains being more a subject of women tban men, the Government has taken
a right step in' this direction. Moreover the women
accepted this training courSe so warmly that their
number far exceeded from the required number of
.50 Trainees. And as stich 20 women from scheduled
castes were included in the whole lot.

Farm women and farmers witnessing the mini exhibition

organised during the training course.

-";,KORUKSHETRA, November 1, 1982

. Many women said that the stipend amount of Rs.

100/- wiJI be used for welfare of their families while
some of them. wanted to use thivin purchasing on
subsidized rates metallic bin of a suitable capacity for
their household. This 'can be an asset. for' them.
'.Under Integrated rural development schemc, these

bins will be provided at Ii subsidy of 50 pei cent to a

scheduled caste candidate, at 33-1/3 per cent subsidy
to a marginal farmer and at 25 per cent to a small
farmer. The bins will keep the foodgrains safe and

, . India, Kurseong Branch in 1981: IDs scheme, was

sponsored by the Small scale Industries Department
of the State Govt~ Shri Sutradhar utilised the money'
Rs. 5000/-, in purchasing tools and equipments for,
expansion and has already paid back the first instal}lent in time. .
4 '.\,

, gailing from a, family of Sutradhars in Siliguri who

lire traditionally carpenters and a member of SchedUled
=:aste, Suresh had his motivation for self-employnent in his family itseif, His eldest brother Shri,
Kartik Sutradhar owns the Sevoke Motor Body Build ..
ings at Siliguri for the last 15 years. His second bro-.
ther Shri Ganesh Sutradhar is in -the family trade of
carpentery work. and supplies furniture etc. to Te,i.....
gardem and, oOices. His third eldest brotller Makhan '
, Sutradharis,an electridanand~wns
the Pioneer Electrical

Sutesh the youngest among the four brothers takes

pride that none of hisbrotbers e~er tried for it: salaricd job, They had the family motivation and courage
, to try ,out their 10tthe'Pselves. ,
Higher ,secondary
Examination in 1973, Suresh joined a: radio shop
as ajl apprentice without any ,salary. , After two yeiirs
of training, he shifted to Mal and did honora'cy work
wi~h a book: shop, He' said that he - benefited from
this work at it gave him' opportunity to earn: money~ ,
. transactions, ,customer relations and contracts. During his It years with the book shop, he was repairing
radio~ ,and other sound equipments, in his off-time
locally and made some savings ,and opened his first
. ,shop of radio-repairing at Bangracote in JaJpaiguri
He was making his living, no doubt" bnt
, ,he wanted to earn ,p1ore as by then he was married
and keen ,to have a belter future,

A Save Grain volunteer fumigating the


in a mud~din

'During the course" villagers got insecticides and

printed literature. on Save Grain Campaign free of
cost. Many of them plan to construct pucea kothi
for foodgrain storage for' which they will be entitled
for Rs. 200/- subsidy and' cement on cont~olled rate,
Their storage problem will be solved for ever.
Barewan ,enjoys ,a distinction of not only hosting a'
traimng' cours6 on Save Grain Campaign" but also
,heralds a new 'spirit of women pioneership. ,

,'Success' through. self employment

'S fonr-year. old son is 28,asu'ccessfully

happily married wi,th a


and contended youngnian. ' He looked ,happy to tell

the FPO, when interviewed' at his radio-shop atTakdah in Darjeellng district that 'bis average monthly
earning is Rs: 800/' and in harvesting season when
the hill farmers have money he earns up to Rs. 1500/per month mainly through radio-repairs.' He said
th~tthings 'haVe definitely improved for him lifter the
, loan assistance, given: to' 'him: :by the State 'Batik:' of


Number of times by then he visited, Diirjeeling.

, snow-capped mountains, the scenic beauty and the
calm and quite atmosphere iri the hills gave him the
promise of a peaceful life and a good radio-business.

Finally in 1978, he shifted to Takdah, a Block

Headquarter and opened his radio-shop. With th~,
helping hand extended by the State Bank in the
form of Joan assistance of Rs. 5000/.-, he got wha~
he tried and, wanted so seriously over the yearS.
SiJresh now takes pride to be self-employed and said
that he will not even accept
salaried, job' of
Rs. 1000/.- monthly and is determined to continue in
hi, present business.



P.O., Kalimvong
November 1, 1982y


and clu"ld

f.. welfare centres pro.

vide proper
""flare facilities to both
mother and child

The new 2o-point programme

Women and children

In spite of exp~nsion of the health ilifrdstructure and educational programmes in the country, the
knowledge about health ant/nutrition education and child-rearing practices continues to be quite low;
particularly in fIlral areas. Infant mortality is very high amongst lower socia-economic groups. For
tackling these problems a scheme of Integrated Child Development Services was formulated and
initiated during 1975-76 on an experimental basilf in 33 rural and tribal blocks and urban slum areas.
The scheme aims to provide apackage of services consisting of (i) supplementary nutrition, (ii) immunisation, (iii) health check-up, (iv) referra! services, (v) nutrition and health education, and (vi) nonformal education to children in the age group of3-5 years. Functional literacy programme for young
girls and mothers has also been taken up in these blocks to promote non-Jormal education.

.-$.lady ooctor examining a child at a

village maternity and
child welfare centre

. Regd. No. D(DN>/39

RN 702/57

(Licensed ilnder U(0)-54 to post without prepayment at Civil Lines PoSt Office, Delhi).

A dietician explaning the importance

of balanced and nutritious diet to a

group o/nursing mothers

The new 20-point program111e

Women and children

A considerable proportion of' children benefited by the Integrated Child Development Scheme
Programme belong to Scheduled Castes, Scheduled Tribes:and other weaker. sections of the society.
However, certain organisational weaknesses and deficiencies have been observed in the process of
implementation. ,.Necessary correctives'are
being introduced. to improve the programme
-. performance.

The numoer of projects. at the beginning of thf sixih.Plan was 150. Taking into consideration the
. needs and responses of the weaker sections of the community the sche",e is proposed to be expanded
from 600 projects 'Originallyenvisaged at the ~imeof theformulationof the Sixth Plan to 1000 projects
. These projects when they. become fully opera(ional !"ould provide immunisation and health services
. to one crore forty" lakh children; .:supplementarynutrition to 60 lakh and non-Jormal' pre-school edu. cation to 30 lakh most backward rural, tribal and urban slum areas.
. ' r




for young girls have been taken

up 10 promote non1'ormal


A class in progress

in a village.






NEW nm.HI-llOOOl