Rural Development Class 12 Important Questions and Answers Indian Economy Chapter 6

We have given these Economics Class 12 Important Questions Indian Economy Chapter 6 Rural Development to solve different types of questions in the exam. Go through these Rural Development Class 12 Important Questions and Answers Solutions & Previous Year Questions to score good marks in the board examination.

Important Questions of Rural Development Class 12 Indian Economy Chapter 6

Question 1.
Rural development is important for India. Why?
Answer:
Rural development is important because around two-third of India’s population lives in rural areas.

Question 2.
State the various infrastructural facilities which should be developed in rural areas for their development.
Answer:
Infrastructural facilities such as electricity, irrigation and transport facilities should be developed to promote rural development.

Question 3.
Explain why do farmers need credit?
Answer:
Farmers need credit to buy additional land, tools, fertilisers and seeds, for paying off old debt and even for personal expenses like marriage, death, religious ceremonies, etc.

Question 4.
Why are Indian farmers caught in a debt trap?
Answer:
The Indian farmers borrow year after year and are not in a condition to pay off debts taken at high rate of interest. The debt mounts year after year. This has created a class of landless labourers who are in a debt trap.

Question 5.
Why have Self Help Groups (SHGs) been established?
Answer:
Self Help Groups (SHGs) have been set up to fill the gap in the formal rural credit system which has proved to be inadequate and has not been fully integrated into the rural, social and community development.

Question 6.
Explain the meaning of rural development.
Answer:
Rural development is a process through which attempts are made to improve the standard of living of rural people.

Question 7.
State any two challenges in rural development.
Answer:
The two challenges are as follows

• Provision of adequate credit in rural areas.
• Improving agricultural marketing.

Question 8.
What is meant by rural credit?
Answer:
Rural credit means providing credit for the farming community.

Question 9.
Name any two institutional sources of credit.
Answer:
Two institutional sources of credit are as follows

• National Bank for Agriculture and Rural Development.
• Regional Rural Banks.

Question 10.
Categorise the borrowing needs of farmers.
Answer:
Borrowing needs of a farmer can be categorised as follows

• Productive borrowings These borrowings include loans to buy seeds, fertilisers and agricultural equipment and implements.
• Unproductive borrowings These borrowings include loans for social purposes such as marriage and festive occasions, or to meet expenditure on illness, death, etc.

Question 11.
Explain how Kisan Credit Card fulfills the credit needs of rural population?
Answer:
Kisan Credit Card (KCC) scheme is an example of credit facility which was introduced by the government in 1998-99.
It facilitates access to credit from commercial banks and Regional Rural Banks. Under the scheme, the eligible farmers are provided with a Kisan Card and passbook from the relevant bank. The farmers can make withdrawals and repayments of cash within the credit limit as specified in the Kisan Credit Card (KCC).

Question 12.
Enumerate the functions of cooperative credit societies.
Answer:
The cooperative credit societies pursue the following functions

• They ensure timely flow of credit to the farmers.
• They provide adequate credit support, covering all areas of needs of farmers.

Question 13.
Discuss the importance of credit in rural development. (NCERT)
Answer:
The rural economy can grow only if it has adequate flow of finance. It is capital only which can ensure higher productivity in agriculture. Provision of rural credit enables a farmer to buy improved seeds, fertilisers, organic pesticides and equipments. All these inputs help hire to increase his agricultural productivity and his income.

So, importance of credit in rural development can be perceived as a means to break the!vicious circle of low capital, low productivity and low savings of the rural poor.

Question 14.
Explain the role of micro-credit in meeting credit requirements of the poor. (NCERT)
Answer:
Micro-credit plays an important role in meeting the credit requirements of the poor. Under micro-credit programmes, farmers get adequate credit at cheaper rates. Micro-credit programme promotes thrift in small proportions by a minimum contribution from each member. From the pooled money, credit is given to the needy members, which is repayable in small instalments at reasonable interest rates. Micro-credit programme removes the need of any kind of collateral. It also helps in women empowerment.

Question 15.
Write a brief note of Saansad Adarsh Gram Yojana.
Answer:
In October, 2014, the Government of India introduced a new scheme called Saansad Adarsh Gram Yojana (SAGY). Under this scheme, Members of Parliament (MPs) need to identify and develop one village from their constituency. MPs are expected to facilitate a village development plan, motivate villagers to take up activities and build infrastructure in the areas of health, nutrition and education.

Question 16.
Discuss the traditional and modern challenges related to rural development.
Answer:
Traditional challenges are those which the rural areas have been facing for a long time. Rural credit and agricultural marketing are examples of traditional challenges.

Modern challenges are those which the rural areas face with the changing times. Diversification of agricultural activities and problems related to organic farming are examples of modern challenges.

Question 17.
Chtegorise rural credit on the basis of time pehriod.
Answer:
Rural credit may be classified as

• Long-term credit These loans are for a period of 5 to 20 years. These loans are required to acquire permanent assets like I tractors, land, costly equipment, tubewells, letc.
• Medium-term credit Such loans generally Stretch over a period of 12 months to 5 years. These loans are required for purchasing machinery, constructing fences and digging wells.
• Short-term credit These loans are for a period of 6 to 12 months. These loans are required for buying seeds, tools, manure, fertilisers, etc. These loans are given to the needy borrowers by cooperatives moneylenders and banks.

Question 18.
Rural banking has not been able to fulfill the credit needs of farmers. Why?
Answer:
Rural banking has not been able to give adequate credit to farmers. This is mainly due to lack of proper infrastructure and instruments to dispense credit to needy farmers. It has also failed to develop a culture of deposit mobilisation, lending to worthwhile borrowers and effective loan recovery. Agriculture loan default rates are also high with high incidence of overdue instalments by the farmers.

Question 19.
As an agriculturist, suggest any two measures to improve the existing system of agricultural finance.
Answer:
As an agriculturist, I would offer following suggestions to improve the existing system of agricultural finance

• The supply of finance should be fully institutionalised and dependence on private sources for credit should be eliminated.
• It should be ensured that finance is used for production. Loans can be given in the form of goods like seeds, fertilisers, etc.

Question 20.
Why is rural development important for India?
Answer:
Rural development is important for India because of the reasons stated below

• Even today, nearly 70% of the population of India resides in rural areas. So, if there is growth and prosperity in these areas, it will fesult in the growth and prosperity of the nation as a whole.
• Rural development will help to create employment opportunities in the rural areas. This will not only raise the standard of living of the rural population, but also check the problem of migration.
• Rural development creates opportunities in . rural areas for education and skill development. This helps to increase the efficiency, productivity, mobility, income and standard of living of the people.

Question 21.
What steps should be taken relating to finance, so that the objective of rural development is achieved?
Answer:
To achieve the objective of mral development, following steps related to finance can be taken

• The supply of finance should be fully institutionalised and dependence on private sources for credit should be eliminated.
• The general interest rate should be low. The banks should charge different rates for different uses.
• The basis of credit should not be mortgage of any security. Production or productivity of land should be the basis for the approval of loans.
• The conditions of repayment of loans should be different so as to suit different circumstances.
• It should be ensured that finance is used for production. Loans can also be given in the form of goods like seeds, fertilisers, etc.
• There should be adequately trained and devoted personnel to manage the financial institutions. The persons should have full knowledge of agriculture and interest of farmers.

Question 22.
Give the advantages and limitations of rural banking.
Answer:
Advantages of rural banking are as follows

• Farm and non-farm output raised with the help of advisory services and credit facilities.
• Food security is achieved. Abundant buffer stock of grains is available now.
• Credit has been provided for self-employment schemes, leading to increase in rural employment levels.

Limitations of rural banking are as follows

• Small and marginal farmers receive only a very small portion of the institutional credit.
• Rural banking is suffering from the problems of large amount of over dues and default rate.
• The sources of institutional finance are inadequate to meet the requirements of agricultural credit.
• There exist regional inequalities in the distribution of institutional credit.

Question 23.
Write a short note on NABARD.
Answer:
NABARD was set up in 1982 as an apex body to coordinate the activities of all institutions involved in rural credit.
The main functions of NABARD are

• To grant long-term loans to the State Government for subscribing to the share capital of cooperative societies.
• To take the responsibility of inspecting cooperative banks, Regional Rural Banks (RRBs) and primary cooperative societies.
• To promote research in agriculture and rural development.
• To serve as a refinancing agency for the institutions providing finance to rural and agricultural development.
• To help tenant farmers and small farmers to consolidate their landholdings.

Question 24.
What do you mean by rural development? Bring out the key issues in rural development. (NCERT)
Answer:
Rural development is a comprehensive term which essentially focuses on action for the development of areas that are lagging behind in the overall development of the village economy. It is a process whereby the standard of living of rural people, especially rural poor people, rises continuously.
Following are the key issues in rural development

• Development of the productive resources of each locality.
• Development of human resources by providing opportunities for adult literacy, female literacy, education and skill development.
• Development of human resources by providing health facilities, addressing both sanitation and public health.
• Honest implementation of land reforms.

Question 25.
What is the meaning of regulated markets?
Answer:
Regulated markets have been established by the government where sale and purchase of agricultural produce is monitored by market committee consisting of representatives of government, farmers and traders.

Question 26.
Why do people look for employment in non-farm sectors?
Answer:
As agriculture is already overcrowded and cannot offer additional employment, people seek employment in non-farm sectors.

Question 27.
Name any two non-farm activities which should be developed in rural areas.
Answer:
The two non-farm activities which should be developed in rural areas are

• Handicrafts
• Poultry

Question 28.
Name some horticultural crops.
Answer:
Fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, spices and plantation crops are the examples of some horticultural crops.

Question 29.
Name the major states which are producers of marine products.
Answer:
Kerala, Gujarat, Maharashtra and Tamil Nadu are the major producers of marine products.

Question 30.
What do you mean by agricultural marketing? (NCERT)
Answer:
Agricultural marketing is a process that involves assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country. The agricultural marketing system is a link between the farm and the non-farm sectors.

Question 31.
Which policy assures a minimum income to the farmers?
Answer:
The policy of Minimum Support Price (MSP) assures a minimum income to the farmers.

Question 32.
Which government body maintains buffer stocks of crops?
Answer:
Food Corporation of India

Question 33.
Which period is referred to as the ‘golden revolution’?
Answer:
The period between 1991 and 2003 is referred to as golden revolution.

Question 34.
What is the role of buffer stocks in the context of agricultural marketing?
Answer:
The Government of India has adopted the policy of buffer stocks to minimise the fluctuations in the food prices. Buffer stocks serve as shock absorbers in the economy and provide a defence mechanism against the widely fluctuating price levels.

Under the buffer stock policy, the government builds up stocks of food through direct purchases from the farmers and releases these stocks for sale in the domestic market where prices are increasing. Also, buffer stock operations aim at eliminating unduly low prices consequent to bumper crops.

Question 35.
What is the importance of developing proper storage facilities in rural areas?
Answer:
Farmers are forced to sell their crops at very low prices to traders because of the fear of it getting damaged from fire, rodents or pests due to lack of proper storage. It is essential to develop proper storage facilities in rural areas so that farmers can wait for better price for their produce in the market.

Question 36.
Explain the meaning of the term ‘distress sale’?
Answer:
Lack of agricultural marketing infrastructure often forces the farmers to sell their produce at low prices for fear of spoilage or to pay off an imminent debt. This is termed as distress sale. Farmers tend to suffer highly on account of these sales, because they not only get a low price for their produce, but are also cheated by use of false weights and are charged a high commission.

Question 37.
Write a brief note on ‘Operation Flood’.
Answer:
It is a system whereby all the farmers can pool their milk produced according to different grading {based on quality) and the same is processed and marketed to urban centres through cooperatives.

In this system, farmers are assured of fair price and income from the supply of the milk to urban markets. Gujarat state holds a success story of the efficient implementation of milk cooperatives, which has been followed by many states.

Question 38.
What is organic farming and how does it promote sustainable development? (NCERT)
Answer:
Conventional agriculture relies on chemical fertilisers and toxic pesticides for higher yields of crops. These chemicals and pesticides enter the food supply, penetrate the water sources, harm the livestock, deplete the soil and damage the natural environment. Organic farming is an eco-friendly technique of growing crops, which promotes sustainable development.

In other words, organic agriculture is a whole system of farming that restores, maintains and enhances the ecological balance and enhances the food safety, thus encouraging the practices towards sustainable development.

Question 39.
Has globalisation helped the farmers in marketing their produce and raising their standard of living?
Answer:
Globalisation has expanded the market of the national companies and has allowed various MNCs to operate in India. So, several national and international fast food chains and hotels have been opened in India. These organisations enter into contracts with the farmers to supply them farm products of the desired quality at reasonable prices, thus helping the farmers to market their produce.

Question 41.
Explain the role of multinational companies in rural development.
Answer:
Economic reforms offered the opportunities to multinational companies to expand their functions all around the country. Many multinational companies are entering in the rural marketing.

They are doing well for the sake of farmers as stated below

• They are making contracts with farmers.
• They are motivating farmers to grow desirable food, fruits and vegetables of the desired quality.
• They are providing them seeds and other inputs.
• They are offering them pre-decided prices.

Question 42.
Why is agricultural diversification essential for sustainable livelihoods? (NCERT)
Answer:
Diversification is essential because there is greater risk in depending exclusively on farming for livelihood and to provide productive sustainable livelihood options to rural people. Most of the agricultural employment activities are concentrated in the Kharif season while during the Rabi season it becomes difficult to find gainful employment in areas lacking in irrigation facilities.

Therefore, expansion into other sectors is essential to provide supplementary gainful employment and in realising higher levels of income for rural people to overcome poverty and other problems. Hence, there is a need to focus on allied activities, non-farm employment and other emerging alternatives of livelihood for providing sustainable livelihoods in rural areas.

Question 43.
Mention some obstacles that hinder the mechanism of agricultural marketing and create a need for the government to interfere in this sector. (NCERT)
Answer:
Some obstacles that hinder the mechanism of agricultural marketing are

• Faulty weighing and manipulation of accounts by traders which results in exploitation of farmers when they sell their products to traders.
• Farmers do not have proper storage facilities to store their produce for selling later at a better price. Hence, they are forced to sell even at lower price to save the produce from decaying.
• Due to lack of knowledge about the prices prevailing in the markets, farmers are forced to sell their produce at low prices.

Question 44.
What are the alternative channels available for agricultural marketing? Give some examples. (NCERT)
Answer:
Alternative marketing channels were developed to bring the farmers in direct contact with the consumers. These channels help in increasing farmers’ share in prices paid by the consumers’. Some examples of these channels are

• Apni Mandi (Punjab, Haryana and Rajasthan)
• Hadapsar Mandi (Pune)
• Rythu Bazars (vegetable and fruit markets in Andhra Pradesh)
• Uzhavar Sandies (farmers markets in Tamil Nadu)

Further, several national and multinational fast food chains are increasingly entering into contracts/ alliances with farmers to encourage them to cultivate farm products (vegetables, fruits, etc) of the desired quality by providing them with not only seeds and other inputs but also assured procurement of the products at pre-decided prices.

Question 45.
Do you think various measures taken by the government to improve agricultural marketing are sufficient? Discuss. (NCERT)
Answer:
Government has adopted various measures for improving agricultural marketing such as regulation of markets, provision of physical infrastructure, co-operative marketing and policy measures like MSP, etc. But even after these measures taken by the government, agricultural markets are still predominated by moneylenders, rural political elites, big merchants and rich farmers which are doing private trade.

The current infrastructure facilities are inadequate to meet the growing demand, and need to be improved further. Cooperatives are also suffering from problems like inadequate coverage of farmers as members, lack of appropriate link between marketing and processing co-operatives and inefficient financial management.

Question 46.
Explain the role of non-farm employment in promoting rural diversification. (NCERT)
Answer:
Agricultural sector in India is already overcrowded and suffering from the problem of disguised unemployment. A major proportion of the increasing labour force needs to find alternate employment opportunities in other non-farm sectors.

Animal husbandry, fisheries, horticulture and information technology are the key areas of non-farm activities which have helped in promoting rural diversification. Rural workforce is actively engaged in various non-farm activities to augment their earnings.

Question 47.
“Information technology plays a very significant role in achieving sustainable development and food security.” Comment. (NCERT)
Answer:
Information technology plays a very significant role in achieving sustainable development and food security in the following ways

• It can act as a tool for releasing the creative potential and knowledge embedded in our people.
• Issues like weather forecasting, crop treatment, fertilisers, pesticides, storage conditions, etc can be well administered, if expert opinion is made available to the farmers.
• The quality and quantity of crops can be increased manifold, if the farmers are made aware of the latest equipments, technologies and resources.
• It has potential of employment generation in rural areas.

Question 48.
Enlist some problems faced by farmers during the initial years of organic farming. (NCERT)
Answer:
The problems faced by farmers during the initial years of organic farming are

• Organic farming requires inputs like organic manure, bio-fertilisers and organic pesticides. Though they are cheaper yet farmers find it difficult to get them.
• The yield from organic farming is much less than that of modern agricultural farming.
• The price of organic food is high, so it is difficult to sell them.
• Organic products generally have more . blemishes and shorter shelf life.

Question 49.
Explain the steps taken by the government in developing rural markets. (NCERT)
Answer:
Following are the steps taken by the government in developing rural markets
(i) Regulation of markets: The government has established regulated markets where the sale and purchase of the produce is mbnitored by Market Committee consisting of representatives of government, farmers and traders. Regulation of markets helps to create orderly and transparent marketing conditions.

(ii) Improvement in physical infrastructure: Through this measure, the government ensures the improvement in physical infrastructure such as roads, railways, warehouses, cold storages etc.

(iii) Cooperative marketing: The government encourages farmers to form producer marketing cooperative societies so that they get better price of their produce through collective sale.

(iv) Supportive policies: In addition to the above policies, the following supportive policies have also been introduced to develop rural markets

• Minimum Support Price (MSP): The government fixes MSP for agricultural output. This policy assures a minimum income to the farmers.
• Maintenance of buffer stock of wheat and rice: When market price falls much below the MSP, then government purchases the produce from the farmers at MSP and maintains buffer stock.
• Distribution of foodgrains and sugar The buffer stocks are distributed among the poor through the Public Distribution System (PDS) at subsidised prices.

Question 50.
Differentiate between ‘Green Revolution’ and ‘Golden Revolution’.
Answer:
Difference between ‘Green Revolution’ and ‘Golden Revolution’:

Green Revolution	Golden Revolution
The introduction of High Yielding Varieties (HYV) of seeds and the increased use of fertilisers, pesticides and irrigation facilities which led to substantial increase in output of cereals is known as the green revolution.	The rapid growth in the production of diverse horticultural crops such as fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, spices and plantation crops is known as golden revolution.
It led to increase in the production of rice and wheat.	It led to increase in the production of fruits, vegetables, flowers, aromatic plants, spices etc.
Green revolution made India self-sufficient in the production of foodgrains.	Golden revolution made India a world leader in the production of mangoes, bananas, coconut and spices.
Green revolution provided food security and raised agricultural incomes.	Golden revolution provided nutrition and sustainable livelihood options.

Question 51.
Bring out the importance of animal husbandry, fisheries and horticulture as a source of diversification. (NCERT)
Answer:
(i) Importance of animal husbandry: The following points bring for the importance of animal husbandry as a source of diversification

• Today, this sector alone provides alternate livelihood options to a significant number of women and over 70 million small and marginal farmers including landless labourers.
• Milk production of the Indian dairy sector has increased by more than five times between 1960-2009 with the successful implementation of ‘Operation Flood’.
• Meat, eggs, wool and other by-products are also emerging as important productive sectors for diversification.

(ii) Importance of fisheries The water bodies consisting of sea, oceans, rivers, lakes etc are a source of living for the fishing community. This sector is important for the reasons enumerated below:

• Today, toted fish production accounts for 0.8 % of the total GDP. Kerala, Gujarat, Maharashtra and Tamil Nadu are the major producers of marine products.
• Fishing has become a source of women empowerment. Even though women are not involved in active fishing, about 60% of the workforce in export marketing and 40% in internal marketing are women.

(iii) Importance of horticulture Diverse horticultural crops such as fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, spices and plantation crops are grown in India. This sector is important for the reasons enumerated below:

• These crops play a vital role in providing food and nutrition, alongwith sustainable employment opportunities.
• During 1991-2003, ‘Golden Revolution’ took place. Horticulture became highly productive during this period due to planned investment and the sector emerged as a sustainable livelihood option.
• India has emerged as a world leader in producing a variety of fruits like mangoes, bananas, coconuts, cashew nuts and a number of spices and is the second largest producer of fruits and vegetables.
• Economic condition of farmers engaged in horticulture has improved.
• Flower harvesting, nursery maintenance, hybrid seed production and tissue culture, propagation of fruits and flowers and food processing are highly remunerative employment options for women in rural areas.

Question 52.
Identify the benefits and limitations of organic farming. (NCERT)
Answer:
Following are the benefits of organic farming

• Organic fanning substitutes costlier agricultural inputs such as HYV seeds, chemical fertilisers, pesticides, etc with locally produced organic inputs which are cheaper and thereby generate better returns on investment for farmers.
• Organic farming generates income through exports as the global demand for organically grown crops is increasing.
• Organically grown food has more nutritional value than food grown through chemical farming thus creating a positive effect on health.
• Organic farming is appropriate for India as organic farming is more labour intensive than conventional farming.
• Organic farming promotes soil that is teaming with life and rich in micro nutrients which can be used for decades to grow crops virtually year round in many parts of the world.

Following are the limitations of organic farming

• Organic farming is labour intensive. Thus, it is beneficial only for small farmers who have abundant labour in his/her family.
• Organic farming is very expensive, the farmer has to carry out the transition, modify the soil structure, etc.
• Organic produce is not traded in many markets, therefore marketing is difficult.
• Organic food prices are not stable and keep fluctuating time to time.
• Organic farming requires a lot of time and greater interaction between a farmer and his crop.

Multiple Choice Questions

Question 1.
What percentage of India’s population is dependent on agriculture for their livelihood?
(a) One-fourth
(b) One-half
(c) One-third
(d) Two-third
Answer:
(d) Two-third

Hint:
Even today more than two-third of India’s population depends on agriculture which is not generating enough output to provide a decent living for them.

Question 2.
Which one is not a challenge in rural development?
(a) Poverty
(b) Illiteracy
(c) Low productivity
(d) None of these
Answer:
(d) None of these

Hint:
Challenges in rural development includes lack of credit, irrigation, marketing facilities, high illiteracy and poverty and low productivity due to use of old technology.

Question 3.
Which one is not a source of non-institutional rural credit?
(a) Friends
(b) Self help groups
(c) Relatives
(d) Landlords
Answer:
(d) Landlords

Hint:
Non-institutional sources are those sources or credit which are not attached to any formal institution. These include friends, moneylenders, landlords, relatives etc. Self help groups comes under institutional source of rural credit.

Question 4.
Which of the following is/are the function(s) of agriculture marketing?
(a) Assembling and grading
(b) Storage and transportation
(c) Packaging
(d) All of the above
Answer:
(d) All of the above

Hint:
Agriculture marketing is a process that involves functions of assembling, storage, processing, packaging, transportation, grading and distribution of agricultural commodities throughout the country.

Question 5.
Which one is not a government measure to improve agriculture marketing?
(a) Regulation of markets
(b) Cooperative marketing
(c) Development of physical infrastructure
(d) None of the above
Answer:
(d) None of the above

Hint:
Government measures to improve agricultural marketing includes supportive policies, regulation of agriculture markets, cooperative marketing, development of physical market infrastructure etc.

Question 6.
Which government agency purchases and maintain buffer stocks of food grains (wheat and rice)?
(a) Food Corporation of India (FCI)
(b) Public Distribution System (PDS)
(c) Food Safety and Standards Authority of India (FSSAI)
(d) Reserve Bank of India (RBI)
Answer:
(a) Food Corporation of India (FCI)

Question 7.
Which of the following is/are the key challenge(s) in rural development?
(a) Honest implementation of land reforms
(b) Development of productive activities
(c) Improving agricultural marketing
(d) All of the above
Answer:
(d) All of the above

Question 8.
Why non-institutional sources are not good sources of rural credit?
(a) They charge high rate of interest
(b) They manipulate accounts
(c) They keep land or other assets as collateral
(d) All of the above
Answer:
(d) All of the above

Hint:
Non-institutional sources are exploiting farmers by charging high interest rates and manipulate credit accounts. They also keep farmer’s land or other assets as collateral security.

Question 9.
Why farmers need rural credit?
(a) To purchase seeds, fertiliser, pesticide and insecticide
(b) To purchase tractors, tube well and animals
(c) To repay previous loans
(d) All of the above
Answer:
(d) All of the above

Hint:
Farmers require agricultural credit to purchase seeds, fertiliser, pesticide, insecticide, tractor, crop insurance, tube well, animals and to repay previous loans.

Question 10.
Which of the following is/are the feature(s) of diversification of crop production in agriculture?
I. Shifting of single cropping system to multi-cropping system.
II. Growing cash crops.
III. Diversification providing ecological balance.
(a) Only I
(b) Only II
(c) II and III
(d) I, II and III
Answer:
(d) I, II and III

Hint:
Diversification of crop production includes multi-cropping and cash cropping. It is good for ecological balance in agriculture and help the farmers to earn more money.

Question 11.
Diversification of agricultural activities includes
(a) animal husbandry
(b) fisheries
(c) horticulture
(d) All of the above
Answer:
(d) All of the above

Hint:
Diversification of productive/non-farm activities is a part of diversification of agricultural activities, which includes animal husbandry, fisheries, horticulture etc.

Question 12.
Organic farming is a part of
(a) economic growth
(b) economic development
(c) sustainable development
(d) green revolution
Answer:
(c) sustainable development

Hint:
Sustainable development includes organic farming. Organic farming is traditional way of farming without use of chemical inputs.