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1=======1

~---, Rural development and puJ)"ccoop~ration

.1 Dairying as a ho.usehold.industry .I:::.===::::-~
IRural change : role the village elders play

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Poillt' NO.1:

Increase irrigation potential, develop and

disseminate

technologies

and

for dry laod agriculture,

inpnts

'The new
20':point programme:
Irrigation

and
. ~Jarm'technology
(With this issue we start this j]]ustrative, explanatory feature based on various points enumerated in
the Revised 20-Point Programme which the Frime
Minister Smt. Indira Gandhi commended to the nation
on January 14, '1982. In the words of the Prime
Minister "This agenda for the natjon~ has been dovet liled into the overall

plan

of development.

It

pinpoints areas of special thrust which will show

. immediate tangible results fo-r various schemes".
In this and the following issues of 'Kurukshetra'
we will carry in this feature details of the tasks that

This is the conventional hand-operated

Lift Irrigation practice ill Ketola

have been and will be undertaken under -each of the

20-points-taking

them one by

one.-EDIToR)
re~naining three years of the Sixth Plan at an average

The irrigation potential

in the country by 1980-81

was 56 .6 million hectares of which

26.6 million hec-

tares w~re covered by major. and medium irrigation.

'works and 30 million hectares by .tn{nor. irrigation.

During the first

two

about 5 million 'hectares

ullder irrigatioll.

years of

the Sixth

biggest effort i~ human

history i~~
bringing additional

land um1.erirr,igation each year.- .

(See also Cover III)

Plan,

are expected to be brought

It is IlOWproposed to brillg the benefits

of irrigatioll to allot her 9 millioll

rate of 3 'millioll hectares per year:' This will be the

hectares during the

Editorial',

. Vol. xxX
No. 11
March I, 1982
Phalgona 10, 1903

..x~ ::...
~.

TODAY there is no country in the world which does

, not have a cooperative movement of its own in
one or the other form~ The movement has come to
stay as an important sector of the national economy

(India's

journal. of rural ,development),

CONTENTS
4

THE COOPERATIVE WAY TO MANAGING

CHANGE.
M.B. Patil

all over the world, irrespective of the form of Government or ideology. The cooperative movement in India
is the largest one in the world.

than 3 lakhs of cooperative societies of different descripti6ns with membership exceeding 11 crores.

6
"10

'DAIRYING AS A HOUSEHOLD INDUSTRY

.' '
.
'D. Murli M imoh.arGnd G, Sitiarsh'an,

.;i the total rur"l population. The movemeI)t

has a working capital of Rs,' 17,000

crores

turn-over

alone

in

agricultural

sphere

BH:AGOlUA :, THE CALL OF YOUTH

Maithily JagannathiIrJ

'.

and its

outsteps
Rs. 2,500 crores, Over the year~ the cooperative movec
ment has blossomed and spre"d to other sectors of the
,.economy.

Today the cooperatives are the niain insti-

tutional agencies undertaking the, functions

12,"

The

movement cOvers 98 per cent of our villages and 50

per cent

,RURAL DEVELOPMENT AND PUBLIC,

COOPERATION
, B.R. Siwal

We have here more

of }he

, supply of cnidit, marketing, processing of agricultural

commodities and the supply 'of 'other inputs, They are
the harbingers '~f the latest s~ientillc arid technological

14
.

:" ,RVR:ALCJ:lAl'IGE.: IWLE THE.VlLLAGE

, , c
' ELDERS PLAY
"
G. Satyanaritydna

know-how not only in farm-based activities alone but

,also in fields of p~ui.try,fishe~ies,)daiiy,agi-o-indu~tties
and a host of small and cottage based industries.
-,

'

, .,,18.

" CHA1:LENGES BEFORE NABARD

" . S.R. Madan and S;K. Mehrotra

'.',
.:,',' .

TIlEY SHOW THE WAY. "

EDITOR
(MRs.)

RATNA lUNEJA

ASSTT. EDITOR
N. N. SHARMA

SUB-EDITOR
PARAMlEET G. SINGH

COVER
JlVAN

,-

,-"'

ADAUA

There can hardly be any doubt

about the

fact that

cooperatives
have changed
society.
~.
.. the' f"ce of our ..
There' are now consumer cooperatives, urban cooperative banks and they have .enter",! no;".-tradition'alfielOs
like education, health, transport etc.' Yet all'this work
has not bien able to earn

unqualified' appreciation

from all and sundry.

cooperatives are, ~ing

The

criticised for not being able, ~o deliver the goods. It

is said that the cooperative movement in this country
has of course increased in quantity but, has failed in
quality.

Thil; criticis~' notwithstanding, co~peratives

have come to occupy a status of a niajor change 'agent

.. Enquiries regarding Subscriptiom."' Agencles. etc.,

.
Bminess Manager, Publications Division, .
Patiala House, New Delbl.l10001
Tel: 387983

in our economy ..

Editorial Office: Krishi Bhavan, New Delhi-IIOOOl

Telephone. : 384888 & 382406
Editor'. Retlidenee: 615920

of the cooperatives as. a change

. - agent and' how it 'can

SUBSCRIPTION

SINOLE COPY: Re. 1

FOR ONE YEAR : Rs. 20

In this 'issue we carry a very ,good itrticle on the role

be' used as

a potent'
...

medium to 'effect chang" ,that

.
. ,
brings in better life for our people.' We are sure our
-

readers will find this exposition of !lfeat interest,

The cooperative way to

managing change

M. B. PATIL
Principal,

'T'

OBSERVATION of the world cooperative scene

reveals two things. Firstly it tells that today there
is no country in the world which does not have a cooperative movement of its own in one or other form.
The movement has come to stay as an important
sector of the national economy allover the world.
Irrespective of form of. Government, political ideology,
level of economic development and the social back'ground, the cooperative movement exists everywhere
it .has carved an important place in capitalistic and
totalitarian economies. It exists in, the developed,
well as under-developed countries. Secondly, it niay
also be observed that the movement has diversified
.its activities over a wide range. Though the movement has originated as a consumer movement and was
'applied later in the sphere of agricultural credit, !he
'cooperatives did not restrict to these traditional activi- ,
ties. They slowly spread to other economic activities
.in agriculture like processing, marketing and supply
of other inputs. The movement also made its impact
in ,tackling the' uibaneconomic problems. Today there
is hardly ,my economic activity in rural or urban field
which is untouched by the cooperative movement.
HE

as

The Indian situation

MOVEMENT in India is the largest

one in the whole world. We have over 3 Iakhs of
cooperative societies of different types with a membership of ov~r 11.2, crores. The movement covers
98 per cent of villages and 50 per cent of rural population. The movement has a working capital of
Rs. 17,000' crores and its turn-over in agricultural
sphere'alone wasincire than Rs. 2,500 crores in 1977. 78.. The 'cooperative sector has provided the employ,m,ent,opport\lIlities to more than 12 lakhs people.
HE COOPERATIVE

Cooperative Training Col1~e, Bangalore

The I,ndian cooperative mov~ent though tnidic

tionally an agricultural movement has spread to other
sectors of the Indian economy. In the agricultural
sector, the movement has undertaken all the economic
activities to help the farmers. Today the cooperatives
are, the main' institutional agencies which undertake
the functions of the supply of' credit, marketing, processing of agricultural commodities and the supply of'
other inputs. The cooperatives have also played a
significant -role in carrying science and technology
, to the farmers by way of organising agro-service centres. The movement has helped the farmer by creating
other farm-based activities on the cooperative basis
like poultry, fishery, dairy to improve his' living
standam.
MOVEMENT HAS changed its outlook
in the
changing environment. ,Today the Indian co-,
operative movement is no more an agricultural mov~
mem. Its impact is felt in the cities and the towns
also. The consumer cooperatives have created an
image of the most dependable retail institutions in the
country. The urban cooperative banks are helping the
small entrepreneurs with meagre means by providing
the financial assistance. Another area where the cooperative movement has helped the urban dweller is in
the field of housing. Housing cooperatives have helped to' solve a big social problem. The cooperatives
have entered even in the non-traditional areas like
education, health, transport. entertainment etc. The
special kind of cooperatives are organised to cater to
the needs of the weaker sections of the co~unity.
The cooperatives have 'made their impact in the tribal
areas by supplying the basic consumer commodities
and assuri~g the market for. the tribal products.

ilE

Today the movement is subject to many criticisms. IHas the cDOperativemovement succeeded in this counKUR!.JKSffi;TRA March 1, 1982,

try ? The answer is not straight. By and large it is

widely held that the movement has failed in its performance, These commentators express that the cooperative movement in this country, has' increased in
quantity but has 'failed in quality. But this criticism
appears to be either biased or has arisen out of the
ignorance of the achievements' of the movement. No
doubt the movement has many achievements to its
credit, It has come to slay as an important sector of
our economy.

Not by ideology alone

'
T'tution.

INSTITUTION 'is a business insti-Therefore its image nere.sarily depends

upon its, business peiformance\ And that is why the
cooperators and policy-makers involved in .the deve'lopment of healthy cooperative movement' in, this
country need to have a re-orientation in their outlook
and approach., No movement can be built on sentiments. Hence the time has come when the content of
cooperative ideology in the development of cooperative, movement needs a change in the outlook. No
movement obsessed with ideology can survive in a
changing situation. It has to move and modity its
values, approach and techniques to. b'e relevant to the
situation. Othe~se it becomes irrelevant and redundant. Therefore the basic cooperative ideology at
,micro and' macro level need to be re-looked in the
changing socio-economic coiJ.di~ions. '
HE

COOPERATIVE

It is' true that the' observation of the movement indicates that the weaker sections have' suffered more
where these institutions have failed' and they did not
gain much benefit where they have been successful.
Here what is to be blamed is not the cooperative insti"
tlltion but the socio-economic and political environ, mentin which thecooperatives are functioning. If the
cooperatives have ,become ineffecti~e the major cause
is the defective and polluted environment. Today the
socio-economic and political factors ate riot conducive
to. the development of the movement.

. Future outlook
HE FUTURE OF the Indian cooperative movement
depends upon three factors :

1
Since the cooperative institutions are democratic
organisations their strength would lie in the effective
elected leadership. The eleeled board must have a
commitment towards the welfare and viability of
these institutions. Everything depends upon what
type of the stuff enters into the elected leadership in
the coope~ative institutions. Wherever the cooperatives have proved to be an effective institutions it is
because they were blessed with dedicated leadership.

2
,To become socially acceptable, the cooperative
institution has tq operate on the business efficiency.
To h,!ndle the basic business operations thecooperatives require the professionalisation of management.
Unless the comPetent professional managem~nt ex-_
pertise is injected the cooperatives can not perfornr.

....

'.

".-

...

,",

, The blood and bone of the cooperative i~ its members. What distinguishes a cooperative institution
. from other fOf!!!Sof 'b~siness organisatiOll is tii~t:
there is no "sleeping partnership concept;' ,in co"'
operative enterprise. Mere holding of the shares
has no meaning _in cooperative business. Therefore,
it all depends upon the interest and the participa-'
tion of the members in the . management and the,
business of their cooperative institutions.
.
These three factors are rather pr""requisitive condi"
tions for the success of the cooperative' movement:'
The cooperative movement is' born in the womb of
capitalism in the West. ' She is a daughter. of rich
parents: Therefore any country that wants, to adopt
her must be in a position to afford to her aristocratic
tastes. Otherwise both become miserable.

Subscribers,

please note

Subscribers at "Kurukslretta" and otlrer journals brought out by :

Pub/wations Division can bUy all the books published 'by PublicatioM
Division" Patiala House, New Delhi-lloo01, at a special 20"per ceni
, discount as long as their subscription lasts.

Kl:JRUKSHETRAMiircli,l',

1982

~
..
-

'Rural development and

, public cooperation
B. R.~SIWAL.
:f'acultyiMeinbert~National Institute of Public Coop. & Child Dvpt.,:N~w.Ddhi

T--

HE GOVERNMENT
HAS UNDERTAKEN
,various ameliorative measures for' the benefit of the rural poor
during the last three decades, of planned development
, but these benefits have not'reached the target group.
Rural poverty has iiIcreased in both magnitude and
inte~ity.
Despite various development programmes,
the fruits ,of economic development have not reached
the- rural poor?
This questio~ still echoes in many
national seminars, conferences and workshops, Various
reasons have ,been put forward to explain' this
dilemma. One of the root canses of this dilemma lies
in lack of public cooperation' or people's participation
in varioUs, development programmes. What'is public,
cooperation?
What are its problems? How we can
secure ,blotter public cooperauon?
In this paper an
attempt is ,made to examine and discuss these issues.

Concept of public cooperation

CONCEPT
OF pUBlIC COOPERATION
implies
mutual help and c~peration among people'resulting'in community organisations and functional groups,
cooperat~on between various community" organisations.
and groups, between voluntary organisations and
Government. In fact public cooperation may ,take the
form of joint partnership in the context of a develop-,
ment programme between any two Or more agencies
listed above. The term public cooperation is often
misunderstood to mean cooperation of the people with
the government. By its very definition cooperation is
a two-way process, it connotes mutuality. In one of
, its fortl1S;public cooperation can be an act of partnership between the people and the government for' commonlyagreed goals: The cooperation cannot be only

HE

in government

terms,

the government

too' must. co-

operate with the people in achieving their goals,

6

It

is implied that in a democratic country like ours the

government is as nlUch if not better, an expression of
the' will of the people as the' voluntary, organisations
'and further the functional group and people's institutions represent peoples, own potential to achieve their
goals.
'<

The term public cooperation is a much broader concept than the term 'voluntary action' or 'people's partiCipation'. The participation of voluntary organisations
in programmes of national development is only one .of
the several forms which public cooperation may take.
The programmes of social development may be initiated and executed by the people themselves, community based people's institutions or, functional
-groups, voluntary organisations and governmental
agencies or jointly by any two 'or more of these agencies with mutual 'help and cooperation. Thus the
public cooperation is a ,process based on principles of
participatory democracy in which the people, people's
,instiiutions, voluntary organisations and govermnental
agencies work together to achieve the goals of development. This prOcess can be employed as an effective method in the field, of rural development. '

W9rk under the plans

HE PLANNING

PROCESS

IN THE

country can acquire

fnller meaning and depth if the people not only

associate themselves in planning for, their development
but also participate consciously in implementation of
the plans. Our Five Year Plans have emphasised the
need for promoting people's organisations to secure
this end. Apart from decentralisation of the administrative machinery and provision of adequate coordinating mechanisms at the local level, it will be necessary
'KURUKSHETRA

March 1, :1982

..,
to ensure that at every stage of planning ,md implementation there is fuII participation and involvement
of the ~eople.
.
The First Five Year Plan described public cooperation as the principle and strength behind planning.
Tt recognised that a plan howsoever well conceived.
has little chance of success if the people through their
own vol1mtary effor't do not take initiative. and give
action support to it. The. areas of public cooperation
have been expanding in the. successive Five Year
Plans. In the beginning there was emphasis on mobilising people's participation in the Community Development Progranime utilising voluntary labour in rural
areas, involving students in projects of public utility,
dissemination of illforination about Five Year Plans
through planning' forums. . Experiments were made
with schemes. like local works programmes under
which construction ,of village dispensaries, community
centres, panchayatghars,
roads, wells and minor
irrigation projects made good progress. Public cooperation emerged as a strategy to be used in all areas
of development. Today, there is hardly a.oy development programme, in which the role of public cooperation is not stressed. It is realised that with so much
emphasis on the need for improvement in the quality
of life of people, there is no limit to the scope of public
cooperation in programmes of rural development.

Targets iIi the sixth plan

N THE SIxTH PLAN, agriculture' and rural developIment
receive the highest priority, special attentio,!
being paid to uplift the small and marginal farmers
and landless labourers, especially the scheduled castes'
and scheduled tribes. The strategy for mral development is Integrated Runil Development (IRD):
One
of the salient features of LR.D. is active involvement
and participation of the people in' developmental programmes. It is believed that their participation can
go a long way in making programmes have a fuller
impact and becoming more successful. The people's
institutions and voluntary agencies, which are engaged
in developmental work are close to the people and
. have the capacity to motivate the rural population for
community participation -in developmental program-.
meso With a view to utilising this potential it is contemplated that as a policy, voluntary organisations and
Panchayati Raj Institutions should be involved in'
Integrated Rural Development as to. provide foil to
the completely departmental or local body appn~>ach
to the problems of rural development. The Panchayati
Raj Institutions and voluntary organisations will M
involved in formulation -and implementation of block
level, plans.
.

P'

EOPLE'S

(a) Optimal utilisation 'of and development of

renewable sources of energy, including fores.try through the formation of renewable
energy associations at the block level.
(b) Family welfare, health 'and nutritiol). education and relevant community programmes in
this field.
"
(c)' Health for AlI programmes.
(d) Water management and soil conservation.
(e) Social welfare programmes for weaker sections~
(f) Implementation of
gramme.

PARTICIPATION

IS Tp

be sought in all the

KURUKSHETRA

March I, 1982

Needs

Pro-'

(g) Disaster preparedness and management.

. In all government programmes touching upon the
above areas of development, care will be taken to see
that existing policies and procedures atc'reviewed ,and
reoriented to motivate, encourage and support people's
participation in an organised way through local groups
and associations or voluntary organisations. Further
supplemental action by voluntary agencies in promoting
activities for self-employment as welI as development
of rural poor will be of invaluable help in optimising
the Lesults of plan programmes. Enhancing the effec-'
tiveness and efficiency of the services provided by
governmental functionaries and by motivating the concerned beneficiaries and rendering .suitable guidance to
them in the formulation of viahle projects and source.
of funding. The role of government' agencies should
. be to help people to help themselves. Success in
achieving a rapid improvement in the quality of life .of
the poor will depend upon the extent of involvement
of our vast hum-an resources

in national

development.

So far we have generated an atmosphere of dependence on the Government for solution of the rural
probkms.
Now this trend should be reversed. The
Gdvernment is catalyst and the people should be taught
that only self-development can bring about revolutionnry change in the quality of life. This can be achieved
only by dedicated people's pacrticioation.

Voluntary organisations

developmental programmes. The following' however is an illustrative list of some of the activities listed
. in the Sixth Five Year Plan (1980c85)

Minimum

GRAMPANCHAYATS,
4478 Block
B.ESIDES228593
Panchavat Samitis, 252 Zila Parishads which are
expected to encourage people's participation,

there are

55,000 Mahila Mand'lls, 80,000 Yuvak Mandals and

around 10,000 voluntary agencies reported to stimulate
voluntary action at the village level. These voluntary
organisations

are working in such div"erse fields as deve-

lopment of a.""iculture. animal husbandry. and livestock. promotion of village. indllstries :md other econo:'
ruic develonment Dro~ammes. education. he::llth. medi-

cal services, social services, family and child welfare

etc.
7

,'Success
stories in the field of voluntary action arC.
many.
To name only a few: The
Comprehensive
Rural Health Project.
Iamkhed,
Anandwan-Warora,
Kishore Bharati-Palia pip aria, Anand Niketan AshramRangplll' (Kavant) Social Work and Research Centre
Tilinia, Mitranikctan Vellanad, Bhagavatula Charitable
Trust- Yellamanchili, Bhartiya 'Agro Industries Foundation, Pune, Banwasi Seva' Ashram-Govindpur,
Voluntary Health Services Adyar, Integrated
Health Service
Projcct Miraj, and many others have la,unched innoyative projects in rural and far-flung areas. The innovation developed by these voluntary agencies and their
claim 6f success made on.their behalf should be care''fully studied so that Union and State Governments and'
other voluntary agencies can take advantage of their'
experience.

.'(b)

(e) A reward of Rs. 50 per trainee

in the case of individual
master
trainees.

(g) Provision, of total kit to the trainees

ing not more than ,Rs. 250 per trainee.

4
Voluntary agencies can also assist
significantly in
monitoring the implementation
and trying periodical
verification, of the utilisation of assets by the bencficiaries.

5
Setting up of training

centres under TRYSEM ..

consist-

Role of PR institutions
~ymbolised by
the establishment o[ Panchayati Raj institutions at
the village, block and district level in the wake of the
Balwant Ray Mehta Committee Report' (1958) is a
national extension of democracy at the national and
state levels,
Panchayati
Raj institutions
are very
strong and effective. people's insti~utjons concerned
with rural development.
Panchayati Raj institutions
called for a new administrative
culture and a faith in
the capacity of our people to take deci~ions and execute them making decentralisation
of state power mId
functions not only a means of development -but alSo
an end 'in itself.'
' .,
.

'Voluntary
agencies can assist. in trammg,
survey
identification
of 'potential, providing linkages with
supply of raw material, marketing, and sale of the
finished ,products,
"

per course
craftsman

(I) A sum of Rs. 25 per trainee per month for

raw materials subjed to a maximum of Rs. 20
per trainee.

in formulation of Block Plan and designing the format, project f~rmulation, identificatiqn of
economically viable activities and beneficiaries.

within the

(d) Training expenses l,pto Rs. '50 per. trainee

per month to the trainer! training instit1Jtion.

Since the IRD programme is now being implemented

'on a clustcr basis, based on availability of infra'structure the area of operation of voluntary agencies
could be one of the criteria in the selection of dusters. Alternatively,
the cluster ,selected for
IRD
could be adopted by the voluntary agency.

is conducted

Rs, 125.

OLUNTAR AGENCIES can play an 'important role in

, the
successful implementation
of the IRD programrne. These .ag~ncies can assist in the implementation of the programmes particularly in the following
manner:

In case the training

village stipend will be Rs. 50.

(c) If the training is held outside the village and
no accommodation
is providcd, stipend shall be

.
Assistance

Stipend upto Rs. 1001- per trainee'permontb.

(a)

",

EMOC'RATI~

DECENTRALISATION,'

A committee set up in 1977 under the Chairmanship

oj' Shri As)1ok Mehta to review the present status and
. consider structuring in -order to secure
close cooperation of public in rural. development
programmes.
Besides suggestin'g larger devolution o[ funds and functions to these bodies the Committee had recommended
in favour of making Zila Parish ad as the principal execution organ of l'anchayati Raj with the Block Panchayat Samiti being converted in effect to
block level
committee of Zit. Parishad.

"

it is proposed to
involve the Panchayati Raj institutions in IntcgratedRu~al
Development.Prog~ammes,
'partl\:ularly in
Natiomil Rural, EmploY~lent
Programme.
These institutions will, aiso have prominent role in block level
pl~lnlling. and in the planning
of .1'vtini.mu"tn NeedsProgramme for their areas of operation.
Besides these,
Panchayati .Raj ins~itutions can play an .important
role- in rural areas in the following -fields:
,.

URING

SIXTH

FlVE

YEAR

PLAN,

t.. Agri~ulture

and animal husbandry, tisheries,

forestry by popularising improved seeds, .usc.
of manures and fcrtilis~rs, :improved imple. m.ents, improved TIlethods of cultivation etc .

6
Providing training . to b.eneficiarics by. employing
.master craflsm'en and avaHing of the assistance under
,TRYSEM'llnder
which the followin" 0 facilities are
,

"

available:

.2.

'

Organising- services .a,nd supplies relating to

agricultural and animal husbandry devdopKURUKSHETRA

"

March 1,1982

ment. It includes establishmeni arid maintenance of seed multiplication farms, artificial insemination

wiIich is presented to them in a cut and dried foriil.

People ofte!, ask themselves as to how a particular programme means to benefit them has come to be formulated without consultiug them. How do programme planners know, as to what people' need, when they were
never consulted at the time of its formulation.

centres veterinary dispc-n-

series. It also includes purchases, manufacture and distribution of improved implements,

supply of insectisides etc.
3 Development of thrift by promoting various
forms of cooperative societies which provide
credit and other. facilities.
4 Development of cotiage and small scale indnstries and maintenance of produdion-cnm. training centres, improvement of skills of the
artisans
by ope-ning and running
schools for social and adult education~

.5 Education

of

6 Health-It
includes vaccination, control of
cpidemics, provision of protected drinking
water, family welfare services.
7 Social welfare-strengthening of the voluntary
organisations working in tl1e field of social
welfare.
.
8 Emergency relief in case of fire, flood, drou-.
ght, epidemid or other natural calamities.

Problems and strategies

last five. plans
B and the general distrust of the thebureaucratic
appaECAUSE

OF

EXPERIENCES

OF

ratus, people have become'somewhat suspicious of the

gcnuineness of the plan programmes, Very.often they
have 'discovered that what was ,presented in the plan
document as a programme for general benefit was really
- a subterfuge for securing promotions, expanding departmental empires, lining the pockets of corrupt officials
and favouring the interest of a particular class, region
or a socio,political group: As .a matter of fact when
people are approached for mobilisation of their partici- :
pation, they react cautiously to these overtures.
There is a pronounced tendency to distrust any thing

For the C01!1,lnOn

man state-led development becomes
the complex of change and innovations which he find
himself cought up in, 'without choice and without any
say in their purpose and direction. The State to him
is the 'Sarkar' or government in general a mighty power
with it~ armies of politicians and functiomiries, with
. their rules and regulations and development schemes, On
whose tender mercies he has to rely for life and livelihood.. Occasionally thcy cal!- come as suppliants to
this 'Sarkar' through various agencies and intermediarics for some marginal benefits.

Tomust offer the people real choices

planners
between alternatives whose cost and benefit implications have been
spelt out, in such termS in which they can relate these
with their OWnlives.' They mu~t state clearly who will
have to do what in order to gain. what specific and,
. q~ailtified benefits. No useful purpose will be served
by people's involvement in planning uruess their wishes
ajJd choice are ascertained at all the stages of planning.
MAKE

PARTICIPATION

MEANINGFUL,

Experience has shown that people will give their cooperation and participate only if they are convinced that
development programmes are reasonably responsive to
their problems. There is just no point in making a bid
for people's partiCipation if the allocation of resources
is going to take place without any consideration of how
. these decisions wiH affe<:t the functionally relevant
people at the operational level. People's participation
depends upon the general image of planning and deve.lopment administration. If people feel that this apparatus is quick in responding to their problems and feed
back 'information provided by . them, they would be
more than willing .to participate.

'A SMALL FAMILY'ISA

HAPPY FAMILY
.

KURUKSHETRA

March 1, 1982

Dairying as a household
industry
O. MURLI MANOHAR

and G. SUDARSHAN

Deptt. of Economics, Kakatiya Unh'crsity, Wara~al

, DAiRYiNG IS COMP~RAtIVELvthe oldest occupation

III Ind",. and contmues to be m vogue WIth more
and more persons engaged in this occupation over the
years. The growing use of milk for a number of purposes' and the inability of individual families to maintain their own 'dairy units', further strengthened the
organized' dairy movement with an ever-growing
number of dairy men, and dairying activities. With
the availability of modern facilities, growth of new high
'breeding species-, usage of new fodder, spread of darry
development agencies. with their wide network of distribution system and enormons use of milk for produc:'
ing various food products, increased the value of milk
and a large number of people began to undertake individual or. collective 'dairy mi'its' over. the yeats. As
a result, dairy industry was developed not only as a
second~ry occupation but also as main occupation with
several people who entirely depended on dairy development.
The present paper intends to examine socio-economic
background of the dairY-B1en, selected from a village
and attempts to examine how far the dairy development
programmes are able to generate employment and
provide livelihood to the weaker sections of the society.
The role played by the dairy development corporations
and other agencies in the growth of dairy units was
a!S{)examined in brief during the course of discussion.

P'

,-

OR THE PURPOSEOF STUDY,'Dharmasagar,

a
_
moderately developing village in Warangal District of Andhra Pradesh is selected. In 1979, the Dairy
Development Corporation opened a milk collection
centre at Dharmasagar" as 'part of its extension programme. The village is around sixteen kilometres away
. from the District Headquarters town and consists of a'
population of 5,741. About 30 per cent'of the populai0

tion are Christian converts; an .,qual- percentage belong to intermediate casteg mainly PadroashaJis, Telaga,
and Besta, around 15 per cent are Reddys and three to
five per cent belong to other farward castes. The remaining arc Scheduled Castes. Out of 5,291 acres
of land, existing in the village, only 615 acres of land is
irrigated and the remaining produces uneconomic dry
crops, ' Large number of villagers depend on the town
Jar their employment. Although agriculture is" the
main I?rofession, a large number of small scale weaving
industries also exist. About 1,700 .cattle, is domesticat-cd ii" the village and out of .which only 170 milchanimals give milk. Prior to the opening of' a milk'
collection centre, the milk produced in ihe village was
either sold in retail or taken to the town for sale. After
.the opening of a collection centre, around 30 per cent
of people started depositing their milk at the collection
centre- and -the-remaining stili have their o\vn arrange,ments for selling their milk. Fifty milk-depositors
were interviewed with a formal questionnaire and' inform"l discussions were held with several non-depositors
and' officialS of dairy development corporation.

The milk depositors

'MONG THE MILK DEPOSITORS,
46 per cent of the
,
respondents belong to higher castes, 50 per cent
to backward castes and only four per cent to scheduled
castes. Educationally, 24 per cent of the respondents
are matriculates, 16 per cent .respondents studied upto
upper primary level, 12 per cent have had pre-primary
or primary education and the remaining 12 per cent'are
illiterate. Education is high among the forward caste
respondents. 'With regard to assets, "all respondents
. have their own residentiaJ accommodation ranging from
a ,hut to a big RCC building., With regard to land

KURUKSHETRA

MarchI,

1982

particulars, forty per cent of respondent.,; do oat own

any ,land at all.

observe that most of the rcspondents whose primary

occupation is dairying l)elong" to bac\.:ward classes.

AOlong theni, eig~ty per cent belol?g to forward

castes and thirty-two per cent belong
to backw<;trd
castes.
Thirty-six per cent of small peasants pcssess
land upto five acres and twenty-four. per cent possess
more than live acres of land and a few of them possess
even more- than' ten acres Dr land, In regard to milch
animals, around 60 per cent .of respondents own only'
one buffalo. twenty per cent own two buffaloes~ ten'
per cent own three buffaloes; six per cent own four
and. the r~maining four per cent poss~ss five buffaloes
each. ,Among the respondents, around 16 per cent.
own one hybrid aniinal, 12 and 18 per cent own' two
and three- hybrid varieties respectively and the remaining had local varieties,

Around 60 per cent of respondents

experienced
dalrving as a beneficial occupation and the remaining
felt it is not' so and half' of the respondents
whose
main o~cupation is dairying also had the similar feel'ing. A large number of respondents felt that despite a
four-fold increase in expenditure,
their incomes have
not been proportionately
risen. Due'to this a number
.of respondcnts,' particularly
small peasants felt that
they are slowly abandoning the occupation and shifting to other more fetch~ng jobs.
Those who
own
more animals, however witnessed an ipcrease in their
incomes.
Since they have 'cultivable
lands'
under
their 'possession; they had good source' of fodder and
hence had less problems than the small peasants.

Around 54 per cent of, the respondents

purchased
the Jivestock on their own personal investment ranging
from Rs. 270.to 120Q, eighteen per cent depended on
banks or SFDA and twenty-eight per cent by raising
loans from money-lenders
(including the landlord).
Many respondents applied for loans to SFDA
and
. State Bank and they are yet to receive the loans. Among
. those who.inve.sted the money on their'own, 46 per cent
belong to forward castes and incidentally
they also
possess more than five acres of land.
It is also sign i'licant to note that ten per cent of the respondents who
rcceived loans from banks also belong to thc upper
economic categories.
The self-investment among the
sm"ll peasants is insignificant and incidentally all the
four 'per cent schedule castes respondents received their
loan amount from SFDA.
The frends thus, indicatc
th'at farward castes, middle
or upper
middle class
peasants were not only able to make personal investments to purchase livestock, but also able to mobilize
the rcsources by tapping the banking facilities and thus
the lower 'caste-class dimension is reflected in the whole
process.

Dairying as an occupation
SAMPLE, ONLY 20 per cent of the tespo~dents indicated that dairying is their primary
occupation.
Although they also undertake dai.Jy-wage
works, they would entirely depend on it for their liveli.
hood,
The primary occupation 'of sixty-two per cent
of respondents is agriculture and they consider dairying
as their 'secondary occupation.
The ,remaining
have
been employed either in small-scale industries or engaged in private works. They too consider dairying as
their secondary
occupation.
,Incidentally
all those
respondents~ whose main occupation is dairying, po~sessed not more than two buffaloes Paradoxically,
those
who .possessed more buffaloes, consider
dairying
as
their secondary occupation. r Add\'{! to this, even' Scheduled Caste. respondents' also indicated dairying ,as
their secondary occupation.
It ,is .lso significant to

MONG'THE

KURUKSHETRA'March

1. 1982 .

HE
TRENDS IN REGARD TO selling or the deposit, ing of milk also indicate that around forty per cent
of respondents deposit upto an average of-two litres a
day, thirty per cent upto five litres" sixteen per cent
upto ten litres and the remaining deposit more" than
ien litre; of milk a day. It is however surprising to'
note that during the last six months the deposit figures
indicate a slow, but 'a regular fall. For ,instance
in
Janu,iry, 1980, about 3,607 litre;; of milk was deposited
with the collection centre, in February it came down to
2675 litres, in March 2(55 litres, in April 1447 -litres,
'in May 904"litres and in June 805 litres.- The dairy
officials were also perturbed over thc fall in tlie milk.
collection from' the centre. Correspondingly.
there is
alst) a slow fall, i;} the number of depositors every
month. The main reason for such a 'fall' !s that more
and morc respondents are getting
inclining towards
priv,ite trade rather than depositing the milk at the
centre. The reasons
mentioned in this regard
were
lower price, quantilication~nd
quality problems with,
the collection centre, nO"!1-cooperative attitude of the
officials, wrong timiflgs (the
yehicle
for collection
comes al 8.30 A.M.), lack of storage facility, lack of
supply offnddcr
by,the dairy authorities, uneconomic
calculations, long waiting, no special advantage uJ.ld'"thelike. Since a large number of respondents
felt that,'
with less diffIculty they were able to get more income
"thro~gh outside sources, they cannbt. exclusiv.ely
posit their milk at the centre. A. few respondents' said
that they have occasionally visited ,the centre, because
their milk was not 'sold 'out before 8.30 a.m, ' It is
significant to note that those respondents
who own
a' number of milch animals also invariably 'sella part
of tlieir 'milk' outside.

de-

A.

LARGE NUMBER. OF ~ RESPONDENTS

.. in .general,
,
however, said' that their difficulties ihorgariising
dairy industry had increas.ed over lhe years. '.' Most of
the' respondents, whose primary ,occupation is dairying
and' who took loans from banks and money-lenders
(Con/d. on page 17)

11

The lhabwa

BHAGOR[A.:

hills-offshoots

of Aravalli

dhyas, are without adequate

and Vin-

irrigation;,and

have rain-'

fall of 30 illches per annum.

The.call
of

-groundnut
ctntly

Once

miFing.

foimdered

here

MAITHILY

COllcern.

KI KI

giggled ,is th~ jup

irregular

KI'~-the-,;irls
skiiled

to a halt before the

of .stones.' Th~y. pr'esented.o

/)(;rr:fi!rs

oj colo-ilr~ a~lid ?right face.s, earrings,

ballds;

chanted,and

ankl~ts,. b~ads,

m~dley

necklac~sJ

Or/?l-

naked

highest ifi

.'

a I!,"OuP of huts Or ."falia".

village' of /iercely

has

and

un-

poverty

you move at your

own risk".!

At

They loot, rob,

they do not want "Haram

Ki

Ymi cim g~t kill~d fa;. a shirt

operatio.n~" and the murder

ideal

rate is ..tlie

A sia-.
Fun and frolic

Bhil folk.
B~tt

10 days before Holi.

scheme

'-

Girls and boys dressed in their /inest were collecti~lg illcney for Bhagoria.

of

A few faNa made up a

independent

has been re-

or else, ... '.' The border distric.t is

patch,

Barren

and

arrow will reach )~ou with the message,

./:lills,

COlintry:

tribal

maize

or a dhoti .. YaH may be in your shop or_ your home,

all;' p/;if~d. H~re 'lInd there- was"(l iillY cultiv;ted

was' Bhil

rock

Kamai" (easy money).

for inter-state

liS'

tht!

beat and kill, because

"Surrender
Arol.fnd

Sal afJorestation

dusk, the agile tr"ibals tr!rtl desperadoes.

tlie wqrning

beads and b~ads.

rains,

Man)' a development

on

III Blzil country,

lJOLE

after

Th~ only Jndustrial prosp~ct is ,of ~.ock

phosphate

JAGNNATHAN

a year,

'are grown.

started.

you.th
'~KITORI

to the 6 lakh

. They offer scant Ilourishm~nt

popufation.

Thij~ ulliqu~

festival

It is a festival

which

starts
goes to

the viilages, instead of the <?ther way round.

dining Blwgoria, bo~v m~~ arrows are_l~id aside,

.gro~ips 0/ boys and girls ,wah drums, 'flutes and

cymbalSj come

0t"

dancing

white 'dhotis,

the roads.

bright embroidered

with cord decoration

Boys

jackets

in new,

and turball'

(the cord is lUl1ldy as a catapult).

The girls are hI' gorgeous finery.

The Bhagoria
hat:

Jliabwa,

A linljpur,

route follows

Tiwlldul,.

i\1eghnagar,

BeIpuT, Bakhatgarh.

mel~l, sho(Jfing competitions,

Yduth'Fest-a

the weekly
At

market

Rmnapur,

or

.10bat,

eacli place is a

fun and games-a

.grand

must jar every Bhil teenager.'

Bhagoria '1:S- the BhU, "swayamvar".

youth

sdect

their partners.

sweethearts.
jail'.

If accepted,

The

dancing

Boys .offer pan., to their

the. couple rim off from the

There is a ~(tlf-hearted

pursuit and lath! blows.

They stay with a maternal,unc.te

jar a couple of days.

In the . mean
the ,..
boy's parents come to
. time,
.
~'settle .the
matter (jhag,da todna)

with cash, goats, cattle grain, as

decided -by the Panchayat.

their

mind

bejore

the

Boy and.girl

settlenlelit.

can change

They

can

then

select. fresh partners.The biggest, IJrightest Bhagoria

feudal estate at lJhakhat.~arh.
assemble .from

is in the tin)", jIilly,

From

llawll,

three states-Gujarat,

.W.P.-hreathtaking

dancers

Rajasthan

in their varied costumes,

Gnd

colours, .

jew~Jlery,' distii1ctiFe songs 'ari{l dances .

-Da,iciflJ:

1'2

of the T!ictures-

0/ the. Rwwsa!leb:

the

- que place

.& singing
>

.. A t noon [hey ,nvir~ into the courtyard

B1lil YO/_Ifll 011 -illei/ 11'0)' 10 Bhf/gof.ia

'nuJ6 ill Alirajpllr.

of the Mela.

Swirling

T.hat

signals

start

out again to the time of pipes

:KURUKSHETRA

MarchI,

1982

and drums,

the dancers weave through

is festooned

with

voice invites
annas.

YOlt

streamers

and stalls.

It

A raucous

to meet Nag Kanya for only jour

Stalls sell bright dupal/as,

trinkets.

the hillock.

Sweets and samosas

cholis,

shirts and

do brisk business.

At

many (/iscreet corners are' the staib with lavish di~play

of the all !'}7portant, persuasive

pan.

Boy meets girl

V idya

a handsome,

eye/1J' boj

brown

i~, .mustard ~

yellow turban said:. "Girls w1d {Joys can be of allY

age.

A 12 year-old

gir!."

Near him, stood his wife, a robust girl, obviously

boy. may select an 18 year-old

elder than hi111. "'We were married

a year

back.

gm;e Rs. 2500 for izer, 50 per cent in advance.

Rest

in instalments."
Fourteen-year.
quietly

ill

brief.

No.

old Ranzesh ';n ~potless white, -stood

a corner.

He seemed

"0

watching

He had not decided. on th~. girl.

there was no hurry.

His family

10 acres of land .nd

a well.

oLd and still waiting.

But'

was well-ta-do

with

"To whom should ,[ . give the pari'?"

Sur mila was 18 years

-Simply dressed and attrdc;ive

perhaps

to hold

She fwd studied upto 7th class-

that was the reason QOYs were wary oj her.

Happy'handso;ne

Babu ran away wit~l his wije at

Colours of Holi

Bhagoria five years back. "[ gave ollLy Rs. 2000. Rates
have gone' ~p now'~, he said cheerfully ..

:What.
i~ ,B.hago:ia ? It is hard to say l~(~ei~it st(~~.te~.
. . But It seems to be. the "real or ongl11al F!0b. No

How about marriage without BJiagoria ?, "Of course','

said Babll,' "';'/Y friend'Man
1!Jere wa,~
selected

170

Singh is an orphan.'

one to settl~ .. thfngs,

Since

I;~. straightaw~y

a girl for Rs. 3500 and earned the.money

give to his in-laws.

pay less,a~ bride
counter

to

chemicals

are used here.

ing the red "riSl("f/owers

.,!!?agoria, a big bonfire
thrown. '

Colour is prepared

by soak-

(flame of the forest).

is made,

and

colours. are

At Bhagoria, one can.bargaiJ1.and

price".

Obviously

it's

a bargain'

which suits ~veryone!

. As you OIust have seen, it is a

-couples,' a !na/rimon:tl! "meta:

festival

of- eloping

It's the most im/;ortallt

jeStival" here. Bhll, youth" come from. 'the'"farthest

A t a P,l'imary health centre just outside

the palace,

the young doctor was an i.1Uerested spectator.

tough

don't

do 'much

harm,

there is no Jepsis~'

They

of course it's a Case of poisoned

different

:Nory,

When

muscles

h.eal easily.
arrows,

then

.B'ut first aid, ,will be r~quired.

ha,T.been flowing since dawn.

and limbs are likely.

KURUKSHETRA

Was he

. no/( no!" he laughed.

waiting to. treat arrow __

wound?
"Arrows

After

Today

At sunset, cracked skulls

MarCH 1,.1982

and places of work. Even educated and well-tr;-do

boys participate.
A ctualiy, the "'selection may be done

Hers

earlier.. rhe mela is just all excuse"'.

are

Unless
its

'cor-:-

Just then, there were shouts.

hill

down tIle hills. There

A. couple holding hands

~.ia chas~ alld we saw the

It..

la(.hi laid'.911 their shoulders.. But in a .few minutes,they.

g~t away and" the chase p~rfy came back satisfied. It
.s~emed tile e.'reuse was workIng fine!
1 '3

./

Rural change : role the

village. elders play
G.SATYANARAYANA
Lect~rer, DepU. of Sociology, Osmania University~ Hyderabad

the country in an spheres

became the urgent concern of Independent India.
in 'the early years. This concern and enthusiasm took
.a concrete shape with the inauguration of Community
Development
projects in 1952 in collaboration
with
the' Project when first formulated, raised lot of hopes.
for Indian Planners. The first pilot project was 'launch"
ed ceremonially on 2nd Oetober,
1959 throughout
India. Soon it' was discovered that all was not well with
the Community Development.
Th~ project~ it. secmej.
was not ,.yielding the desired
results.
The question
~rose as to why the project '.'-'as floundering.
HE

DEVELOPMENT

OF

Various studies tried to answer the question.

The
findings show that: (I) the people did not cooperate.
(2). they did not perceive the project correctly, .t3)
the implemeniation
was faulty, and (4) the benefits of
the project seemed to have been' grabbed by the alrea.jv affiuent segments of the Indian society.

J.

These studies further showed that the people who

should have' benefi!ed have not; and thaI the people
were not socially conscious eno.ugh to utilize the benefits that have accrued.

.'

The other way of understanding

the failure is to
ask the question "how" the project failed? The answer
to the queslion "how" would necessar.ily comprise an
understanding
of the actual processes involved in the
.-implementation of the programme.
Given the nature oCthe In'dian society,
one can
assn me that certain segments of the rural society play
'an important role in the proc~ss of development.

What village elders could do .

. '\'1r ITH THIS
.y\, to analyze
social,
14

ASSUMPTION,
it 'has been attempted
the role of the village elders in the
economic and political life' of the village. .It

is a modesl attempt to focus the - attention on the

issue which seems not to have
heen
taken much
. notice of even in advanced studies in rural sociology.
-There are, however, a few studies
avaH'able.' Bu!'
unfortunately, none of these have concentrated on defining the villa!!" elders and their role in the context
of Community Development and Panchayati Roj.
Sr.inivas in his study, ."The Social Structure ~f ~a
Mysore. village" defined the village elders and their
role .. He stated that the future of the villa~c con1munities all over India lay with the elders of the Pancha"at
or Council which decides - disputes between
v.mag~rs
and discusses matters of common interest SUCD as holding festivals and building a temple or ro'ad. Generally
cases pertaining to division of movable and immO\iable
property,
disputes
regarding
jewellery,
borrowed
.money and household disputes are -brought to the
council.
However, their. rolc in ~lden days, when
gramasabha was more democratic and representative.
was formal and titular.
In contrast, the gramasabha
is _a titular Dody today and hence. the vil1'age elders
have come to assume an important position and role
in the public affairs of the villoge. It is open as to
how formerly when Block workers came to the village
they were viewed with suspicion and indifference .and
people were averse to accepting any scheme even if
it . was offered with a meagre or no financial contribution.But
under the Mukhia's leadership, they accepted such development .schemes as were suited to their
needs and resources.
In- view of the above, we can say that the processes
of democracy and development. rest 'on
how. these
village elders use or misuse the democratic opportu- .
nity and development
funds.
n. is this coniext
this study becomes pertinent as it places the. village
KURUKSHETRA

March

1,'1982-

elders in relation to CommunitY Development Programme as an agency of change in the village,social

syslem.

Methodology
.FoR

of "Role of Village Elders in Community Development Programme", I have selected

10 villages, each having 'population of 2,000-3,000
approximately which are located in Ghanpur (Station)
Block; Warangal District, Andhra Pradesh.
THE STUDY

for advice .and consultation by the members of different castes, The viI!i'ge elders however, seem ,to be
in favour of ,family planning. But on the questions of
, democracy, Panchayati Raj, and Community Development Schemes, the opinions of village elders are both
divided and unclear. Only 20 per cent of the sample
respondents are. hopeful about democracy, 36 per cent
seem' to .believe in Panchayati "Raj and 47 per cent
seein to' approve of the' Community Development
Schemes as agencies of change.'

'Ten elders from each village have been chosen

from different groups. These elders were drawn from
traditibnal group such as caste elders, Police Patel, Mali
Patel and Patwari and modern leaders like members
of the Panchayat Board, Surpanches, Ex--MALs, and
MPs who play very ii:J1luential role in Community
Development Programmes. These 100 persons were
interviewed, with the help of an. interview schedule.

ResponseS .of the elders

are as follows. The opiriions of, the
village elders regarding the introduction of the
new agricultural methods, seem to be ahnost equally
divided both in 'favour and against. A considerable.
number of the village elders seem to be indifferent to,
cooperative societies. They are, however, approached

HE

FINDINGS

TABLE

The Variabte of Age: The younger the age of

village elder, the greater is the tendency on his pan
to introduce the newer. agricultural methods. The
younger the age of village elder, the greater is a tendency to constitute cooper'ative societies. The middle
aged village elders became more' the centre of village
consultations, The younger the age of the village
elder the more is the tendency to accept the people
of other castes. The middle 'aged village elders are
.more hopeful of democracy, whereas .the aged village
elders do not have any clear opinion on this. ,The
.middle agcd village elders, more than the younger
and the older village elders, have a positive opinion
of Panchayati Raj. The younger village clders are
;"ore doubtful of community developme':'tschemes as
illustrated. by table below
1

Age .wise classification of respondents

Age

ill

Years

Below 25

26~35
36-45
46-,55
Above 55
Total

. People
come

People
coining

methods

Member
o/a .

introduced

Co.op.

for

from

Society

AdVice

many;
castes

New

2
16
16
11
3

1
12
12
9

48

35

,!i!l

2
24
31
24
9

2
"20
25
19

90,

In
favour
_'of

of inte-

Family
Planning

grated
Anithra
Pradesh

2
26
25
26
9

10
23
]5 _
5

71

88

53

The Variable oj Membership oj a Political Party' :

Village elders as .political party members are inore
enthusiastic about introduction of the new agricult,!ral
methods, but they are not so enthusiastic about cooperative societies. ,Political party members are more
open-minded to other castes. Those village elders who
are political party members are more in favour 'of
. TABLE

Functioll-

1n ' ,;..'Fa~'our_

KURUKSHETRA.March
,

1,.1982

and

Change

"CD.P.
and
~

Change'

7
7
4
2

10
]4
4

16
16
9
6

20

36

47

integrated Andhra Pradesh. Those who are political

party members are more hopeful of democracy. Those
who are not in a political party are more uncertain
about th~functions of the Panchayati Raj. Similar'
is their altitude towards community development programme. Table 2 given below shows that .
2

No.

New methods Introduced

Member of a Co-op. Society
People come-for ~advice
People coming from one caste or 'many
In favour of family planning
Fl1nc~oning of democracy
Integration and separation
Panchayati Raj and Change
C.D,'P, and Change

- Raj

Democracy

The responses of the village elders deterlnined b): membership in political party.:
Positive
Question!>'

Panchal'ati

ing of

24
16
'32
28
33
13
25
19
23

%
66.7
44.4
88.9
77.8
91 .7
36.1
' 69.4
52.8
63 .9

Negative

No.

12
20
4
8
3
23
lJ
17
13

33.3
55,6
11 .]
22.2
8.3
63"9 .
30.6
47'2,
36 .]

Total
No.
36
. 36
36
36
36
36
36
36
36
' 15

.over twenty eight million

coupl'es
in India are today practising

FAMILY PLANNING
and they are
living better

:, IF YOU ARE AMONG. THEM, \

. TELL YOUR NEIGHBOURS;

..

16

.~,

'.'

~..

IF NOT, START NOW

'.. .~''II*,

kUlWKSHEtRA

March 1, 1982 '

The Variable of size of Dry/alld: The Jess the size

of land owned by a village elder the more is his resist tance to the new agricultural methods.
Similar isthe.
attitude of the small land owners' to the cooperative
societies. The more the size of the land owned by
village elders, the ,more is his prestige' as a centre '-for
village consultation. Thc more the size' of the land
owned by a viliage elder the moi'e he is the, disposed in
favour of an Integrated Andhra Pradesh. The less
the size of the land owned by a village elder the more
is his uncertainty regarding the functioning of thc
democracy. The more the land owned ,by village
eldcrs the more is his trust in thePanchayati
Raj.
,The less the size of land owned by village elOer the
more is his criticism of the Community Development
,Scheme. '
The Variable of Wet Lalld and /10 Wet Land: Those,
village elders who have no wet land seem to be more
conservative regarding agricultural methods, cooperative societies and family planning.

Findings of the study

of village ,elders, limited
and arbitrary as it is, brings to light a few signifi-

HE SCOPE

cantfilldings,-

OF THE

STUDY

-The village elders irrespective

of their

agc, political party membership, and sizc of the land

owncd by them, do not seem to have clarity regarding
the functioning

of democracy,

Panchayati

Raj

and

Community Development Schemes. Younger village

elders seem to be more open and liberal. Village elders
who are nof-members of any political party are' more
eo~servative and doubtful of democracy, Panchayati
Raj and ,Community Development Schemes:
The less the size, of' the land owned by a village
elder thc more is his iesistance to change and trust in
new institutions. Village elders who do not own any
wet l~nd are, less committed to change' and arc con- ~
servativc.

(Comd. from p. 11)

wcre not able to repay the loan amount by entirely

depending on dairying. A number of respond,ntsfelt
that every mileh animal reqnires a man. to spend full"
time' to look after and when' the labour cost, and
expenditure on _other components are: combined, the
net income would be uneconomical. Several 'primary
occupation'respor.dents
also -complained that., they
would get more income if they undertake outside work
rather than' spending all their time on 'looking after
the animals. 'Those respondents who own -large
number of animals also had similar problems.
All respondents emphatically observed that the
hlcrease in rate 'of fodder ~and sometimes their nOllavailability in the market'further crea.ted problems in
the expenditure, Although there is an overall increase
in the yield of milk. though there are down""ard trends.
In case of the high breed animals, the problem 10 feed
is more acute. Since the Dairy Development Corporation authorities have not ta,ken the' responsibility of
supplying'the fodder, several respondents have' to,
undergo many ha~dships to .get the feed outside even
after paying exhorbitant rates. Consequently lheir
net income is falling.

Conclusion
considered as all houseindustry in the rural areas. The trends
indica.ie more production 'of milk and more and more

D hold

AIRY INDUSTRY IS STILL

KURUK~HETRA

March I; 1982

employment either primary or subsidiary in this field.

But the problem's a~e also increasing prop.ortionate]y
oyer the years.
The development trends however, indicate that
forward caste, middle or upper' middle-class peasants
with an ideal backgr!3nnd of fai'!" ownership are the
real beneficiaries. in-this field. ,They arc not only in
3_ position -.to invest. their qJ.oney but,.also able to utilize . the opportunities extended by banks and other
agencies.' In. regard to small peasants or agricultuml
laboure", although' a, few of them adopted dairy as
. their' ,primary occupation, they were not able to cope
up ",ith the.increasing problems and the demands of
the trade. The credit facilities 0'" supporting mechanism are, not in 'a. posi.t.ion to .c~me tt:) their rescue on
time. The opening:of'!"ilk collection centres by the
dairy development ,corporaii()J1' has not been able to
solve their problems aIso.. As a result. a la'rge numher
of them have been alienatcd from th~ occuoatioil and
-paradoxically peopl" belonging to the - up'per strata
of. the society. are'able,to
gain all benefits. Unless
more credit is flown, prop~r infrastru~turaI 'arrangements such as'supply of fodder etc., are provided and
prompt collection and payment is ;made, dairy development in the villages may not become helpful to
the weaker sections of the society and on the other
hand, the upper strata of the society m'ay get aII the
benefits defeating the very purpose of 'dairy e~pansion
programmes' .

Challenges before NABARD

S. R. MADAN and S. K. MEHROTRA
ShriLal Nath Hindu"College, Rohtak (Haryana)

T IS AN ESTABLISHED

FACT

that India\ is an agri-

cultural couutry aild. her salvation lies in the upliftment of her villages. To achieve this goal, facilities
for rural credit are heing provided through a number
of agencies including co-operatives, land development
banks, commercial banks, regional rural . banks etc.
._It is irony of the fate that with every addition in rural
credit agency the benefit has gone to the affluent section of the society and not to the real needy residing
in the rural areas. Instances have come to sight
where thc big farmers and persons belonging to upper.
castes obtained loans on lower rates of interest from
the rural financing agencies and lent the same to the
poor persons belonging to the low castes at higher
rates of interest thereby giving birth to a new class of
money-lenders. Mere establishment of a new credit
agency does _not mean that 'the:goal of ~ocio-economic
progress has been achieved. On the other hand, setting up of multi-rural credit agencies has also given
rise to a number of problems. With a view to overcomhlg th~~e difficulties,: the

Government

of

the fact that a single rural credit

be able to provide required quan. tum o(credit for achieving the goal of inteirated rural
development, the country had to accept multi-credit
agency approach. Under this approach a farmer /
.EEPTNG

craftsman approaches

more than one change on his land/property in favour

of the credit institutions, which jeopardises. the repaying capacity of the farmer/craftsman and the productivity of the land in the long run. To get rid of this
problem it. is suggested that the NABARD should
introduce- the concep.t of 'one borrower. one financing

. agency'.

, 18

This bank should co-ordinate the supply of

credit through various financing agencies.

It will not

be irrelevant to mention that the area of operation of

a unit of financing agency should be e'armarked at
district/block level. to achieve this goal .it is .essen-

tial that a number'

societies should be

of small primary agricultural

merged and be developed.into

farmers service societies, ,which should

cater to thc_

needs of all the rural households in respect of credit

.inc1uding consumption ne~ds of the weaker.sections of
society, inputs) raw materials, storage, processing an.d
marketing facilities and other services.
These- farmers
service societies should be linked either with commereial bank or co-operative bank or regional Tunil bank
fOT the- purpose of securing short, medium,. long-term
credit. and expertise for the {annulation of prOjects.

to some c'xtent, the goal of rural dc'velopment and reconstruction, .yet these have posed a number of chal-

-"

. agencies

nuiribe-r of other genuine prospective borrower creates

decided to establish National Bank for Agricultural

and Rural Development (NABARD). This bank will
be an apex institution of natiorial importance for providing short, medium and long-ierm credit for financing agricultural and allied activities including market-'
. ing, processing and storage etc. The Bank will also
undertake developmental activities in the rural areas.
The .tasks' before the Bank are; in fact, challenging
particularly in view of the limited s{lccess achi~ved by
the existing rural credit agencies. Although' financial
and developmenta,1 functions have helped achieving,

article.

various rural credit

such as primary Agricultural Credit Socicty, Co-operative Bank, Land Development Bank, a branch of
commercial bank and a branch of Regional Rural
. Bank for securing c~edit. It has been brought to light
that one and the same person, at times, borrows from
more than one credit agencies with the result that a

India

lenges before the rural economy of the country. _ The'

success of NABARD will depend on how best it
meets these challenges.' The challenges before the
NABARD, therefore, form the subject-matter of this.

TN VIEW

K agencywiHnot

The co-operativejcommercial/regional rural bank providing facilities of credit to the FSS will in turn be
refinanced by theNABARD.
This will help in removing the problem of unnecessary

competition among

KURUKSHETRAMareh

I, 1982

the different rural credit agencies On the one hand and

will enable the link financing agencies (co-operative/
co=ercial/regional rural bank) to cover the hitherto
neglected areas on the other.
After the nationalisation of fourteen major commercial banks, the banking industrY entered the field
of rural credit. On October 2, 1975 these banks
sponsored the scheme of regional rural banks in certain selected districts. There are at present about
100 RRBs operating in the country. These banks
have provided credit arid developmental facilities to
the inhabitants of their respective areas to a meagre
extent only. It is, however, disheartening to' note
that they have played as an instrument for diverting
the deposits from rural areas to urban areas for the
benefit of their sponsoring co=ercial banks.' With
a view to putting a check on this undesirable practice,
it is essential that the NABARD should be given ade- '
. quate authority for controlling effectively this diversion of funds.
HE
RURAL CREDIT AGENCIES are faced with the
. problem of low recovery of debts. As a matter
of fact there are certain borrowers who are not able
to pay their debt because of genuine reasons such. as
natural calamities etc. There are others who do not
make use of the loan for the purpose for which they
,were advanced. The result is that they are a:lso not
able to repay their loans we shall have to make distinction between the two types of borrowers. We
shall have to appreciate the difficulties of the former
type of borrowers because the delay in repayment of
debts occurs for no fallit of theirs. They, intact;
deserve our sympathies. They should be given new
loans for enabling them to increase in their production
and with tbe resultant increase in their incomes, they
will not only' be able to pay back a portion of their
.previous loans but will also be able to invest more
in -their land for the furtherance of their production.
11 the natural calamities continue for longer period,
the NABARD should come forward with help from
its proposed national stabilization fund to rehabilitate
the victims of continued natural calamities. Further
innovations should be introduced from time to time
.to overcome the problems of recovery from genuine
.defaulters. As far as the second type of borrowers
are concerned, the approach for recovery towards
them shall have to be a different one. They should
.be dealt with strictly. Recovery from wilful defaulters
.should be made in the way in which arrears of land
revenue are recovered. 11 need be punitive measures
. must be resorted to against them through snitable
ame!1dmentsin the existing laws~ The state Governments should a:lsobear in mind that gaining popularity
.by waiving off outstanding loans is no remedy for solv.lng the problem of poor recoveries. Such a thing is
not at all in the interest of the borrowers because it
shakes the faith of lendi!Jg institutions in the borro-

~.KURUKSHETRAMarch 1,1982

'wers with the result that other financing agencies also

do not come forward for the help of such borrowers.
It is interesting to note that although the rural credit
agencies have touched the financial aspect of the
problems of rural masses, they'have either done nothing or have done very little as far as developmental
aspect of rural reconstruction is concerned. We cannot have ,a strong rural agro-industrial base unless the
developmental activities are streamlined. One of the
reasons for this sorry state of affairs have been the
lack of qualified staff having adequate technical and
organisational knowledge.' The co-operative/commercial/regional rural banks have been appointing
staff in the rural branches that did not have adequate
knowledge of the problems of the rural masses and
also the technical knowledge about their ago-industrial
requirements. Even the farmers' services societies
which were primarily meant for providing raw material, .
technical guidance, provision for controlled articles
. to the farmers and other such services have not done
any appreciable work in this connection. For achieving the objectives of rural integrated development, it
is essential' that the FSSs should be drastically restructured.
The co'-operative/co=ercial/regiona!
rural banks must appoint adequate and properly trained staff having rural background and particular
expertise in the areas of crop production, agriculturil
engineering, animal husbandry, plantation, horticulture
and management of rural indus,triesetc. These experts
should always remain in touch with the latest' developments taking place in their respective discipline in
India and abroad. They should not only be in a position
to conduct technical, economic and financial appraisal
of loan proposals, but should also advise the top management in taking quick decisions. Apart from helping the implementation of the. development projects
successfully and taking care of profitability and cost
structure, they should also maximise the return from
rural investments by continuously improving the methods and techniques of project formulation. It is
complained that the staff at the branch/regional/central level is required to keep busy in the routine work
of collecting innumerable statistics and tabulating them
in various proformas f,Qronward submission to RBI
and government etc. If we want that this staff should
devote g,:eater part of their time in developmental'
activities we shall have to collect statistics only for
broad national goals. There is a need. for computerisation of priority sector accounts and advances
which may be initiated by the NABARD at the
national level.
.

Simplifying proCedures

T WtLL NOT BE OUT

of place to mention that the

procedure for loan and the forms used for' the
grant of .loan 'are both time consuming and complicated;
Every effort made towards simplification of
(contd. on p. 21)
19

,They show t~eivay .

This feature -is based on success stories viz. achievements gained in various
spheres of rural development by farmers, institutions, experiments and individuals.
There is hardly an argument over the fact that tIedication and zeal to put in hard
work can achieve anything. And one achievement inspires and sho.ws the way
to others!
j
We hope .our esteemed readers will send us their own' "expe~iences in th~'
field so that others can benefii by them to usher in a better Ufe for our<rural
people. (EDITOR) ,

Individual initiative & enterprise

UMARI .PRITIKANA

BAG OF. CHOWALPARA

VILLAGE

under Haripal block of Hooghly district pas set a

noble example in individual initiative and enterprise.
At avery young age, she has become the proud owner
of a small scale candle manufaeturing industry, and
has been running it since 1974. Pritikana hails
from a middle .class farmers' family which hils a glorious tradition of taking part. in the Independence
struggle. Her father was a respected freedom-fighter
in the area whom she. loot at avery early age. She
grew, up under the care of her widowed mother. She
. had to give up her studies at the school finill level due
to financial difficulties. Therea1ter she successfully
completed, three courses in sewing and tailoring,
mother-tniining and village defence.' Yet a job was
a far cry for her, but she' was 'not to be overcome by
frustration.. One day she had an opportunity to
watch the process of candle making in a friend's
house.' Fascinated, she took a keen interest in it.
Then 'after satisfying herself that she too could run a
candle factory,' Pritikana approached the 10ca1block
officials for help and guidance. The block officials
assisted.her to. the 'ftillest'possible extent. Thus w,!s
.bbrn the Ambika Industries duly registered as a small
scale industry. She was .also' granted a licence for
.purchase. of.tlIe necessary raw material for the pur.pose,... She,.had no.marketing problem, since the small
.industries '.corpOration takes the whole lot for sale
20

through public distributions system. Like other intelligent entrepreneurs, Pritikana has noW 'started diversifying the production to catch new markets: .. She' has
already started a new wing, producing cheap'coometics
which have a good demand in rural. areas ., She is
confident. that Ambika Industries will continue to
prosper.
-FPO, Ranaghat

. Small savings: pig results

'.

SAROJA THAIRIYANATHAN,
wife of a
primary school teacher at Jarinakadu village. in
Yercaud block of Salem 'district is now proud owner
of ?- little cattle farm.
. Eight years ago, Shrimati Saroja opened' a .small
saving.account in the post office and had .since then
been depositing" every month, a small amount saved
froin the meagre salary of her h,usbandin liF;raccoUllt.
When the money. grew, She bought a jersy cow
without any . goverm;nent loan 'Qr bank assistance.
However, she did>'seek technical advice frnm the"animal husbandry.

HRIMATl

Examples of communal harmony

'T many a' distinction, the secular character of most

has
HE VIJAYA~UR

BLOCK OF

JAMMU

DISTRIct.

of. its villages being ,one among these. 'Namastay',

"Asalam-alay'kum'" 'Sat Siri AkaI" greet a stranger
simultaneously on his/her arrival in Sohawara village
KURUKSHETRA

Match.I', 1982

(called'Sauda locally) . Hindus, Muslims, Sikh, and

Harijans, men] wom~nand cliildren, come out. of their

>

tiny but clean dwellmgs and relate interesting things

"bout their village witb pride, "We are at present
pressmg our Hindu bretbren to build a temple near
the already-built mosque and, gurudwara to form a
secular trio", said on elderly Muslim of the vmage.

The inhabitants of Sohawara say with one voice

live a!ld die- together-:--v(e are one."

"We will

-FPO,

K'

Dada

VILLAGE
OF
KHERWARA
BLOCK
in
Udaipur district (Rajasthan) presents another
example of communal harmony. The village has about
600 families, Muslims comprise about 40% of the
population and the rest are Hindus belonging to va.riouscastes,
Hindus, and Muslims or' this village
show mutual respect for each other's religion
and
religious places.
ARAWARA

"At the_time of Muslim marriages, our Hindu

brethren think it their sacred duty to bid farewell io
the bride. They carry the palanquin on their &houlders and this has now become a custom, in this
village", says youngA]lah
Rakha Chowdhary. He
points towards ~he mosque and further says, "It was
virtually conStructed by Our .Hindu brethren. They'
used to look after its construction till its completion."
But he strikes a note of caution as well and says, "We
have to be vigilant also at times when anti-social elements try 'to harm our age-aId unity."

,If anyrep~ir work is to be carried out in ,a temple

or mos,que,'both Hindus and Muslims contribute fer
the same.. The atmosphcre !Of harmony is clearly
visible in the life of the villago,
-FPO,

Udaipur

,
(co11td: from p. 19)

,"

, procedure seems to have resulted in more of complications. It is very difficult for the uneducated borrowers to understand the procedure and for~alities
to be observed. For hringing the rural borrowers
nearer to the credit supplying agency, it is essential
that application for loan and the documents executed
,by him should not only be brief, and uniform but
should also be in the regional language, so that the
borrower may understand their implications fully.

c{)veringall aspects of the problem of rural credit and

rural development.
'
'.

We know 'plaiming on the basis of inadequate and

inaccurate statistics is worSe than 'no planning.' This
has specially proved correct in the case of economic
planning in India. Data gap and often outdated
data at the district level have been the rooH:ause of
defective planning. The NABARD should take a
lead in impressing upon the central and state governments .for' the collection of ~ccurate and adequate
statistics for the rural development. It will be better
if NABARD sets up a full-fledged research and.
Development Wing for conducting research in the
field of rural credit and rural development on a continuous basis. It should publish the studies undertaken by its Research and Development Wing in
these fileds for the benefit' of those agencies which
are busy in the formnlation of projects and their im, plementation. It is ,furili,;r suggested tha"!' the
NABARD should publish a periodical on regular basis

;l@JRUK:SHEffiA
March .'1', i982
.
.

-.

I'
I

Suggestions

su~' UP, we can say that the problems of mral

credIt and rural development in India are, no
doubt; challenging, but not unsurmountahle. The
.. NABARD may play ,an effective role in solving these
problems, By introducing 'one borrower one financing
agency' concept and farm planning approach, the bank
may not only coordinate the 'activities of the grassroot level rural credit agenCiesbut may also enable the
farmer/craftman to utilise the resources to the maximum. for increasing' his in~ome. The Bank,
by
advising the 'link credit institntions to adopt nniform
procedure and documentation, may bring the rural
borrower nearer to the credit agency. It may also
,give a fil1ip to rural' development by refining the
mathodology for formulation and implementation pf
district plans. The setting up of Research and Development Wing for undertaking' research in the area
'of rural credit and rural development may also help
in formulating de:velopment projects and their implementation. ne bank will thus go a long way in
enabling, the run!l families to participate effectively
in the proce,,; of development contributing thereby
their mite'in the generation of gross 'national prod'uct.
0

2)

JUST,RELEASED
INDIA: A Reference Annual, 1981
,'INDIA--'-1981' contains information on diverse aspects of our national life and activities'collected from
'official arid authentic sources.
'

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, It is an established work ofref~rence and is a rich source material for research scholars, studenis, officials,
, joutnali~ts; academicians, professionals and others. The publication attempts tei describe the machinery of govern.
,merit and other institutions which plaYa vital role in nation' building activities and ."help transform
the
Indian
.. .
.
traditional social life into a modern life,
,Pages 635 with photographs and 3 maps

Library edition

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Paperback

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HINDI EDITION
,BHA:RAT"-'-19'81
Pages 712 with photographs and 3 maps
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The new
20-point programme:
Irrigation
and

farm technology
The full benefits [rom. our investment in irrigation
will accrue to farmers on(v when the physical engineering
features of an irrigation project and agricultural development are closely linked.
In many of OUf irrigation
projects, a w~lie gap exists between the de~'e1opment
and utilisation of the irrigation potentia!.- Therefore
the highest priority wi / go to getting the optimum benefits from the area currently under irrigation.
SiJ~ullaneous/y, for achieving the target of bringing three
million hectares per year under irrigation, it will be
essential to develop a co-ordinated machinery to ensure
timely and adequate supply of material such as cement,
steel and coal, and the scientific utilisation of the water
resources.
Farmers will be assisted to undertake effective
methods of conserving and utilising water on a cooperative basis. Institutional devices such as "Pani Panchayat" will have to be fostered for stimulating cooperative
endeavour on t~e part of a watershed
community.
Extensive "Lab to Land"
and other demonstration
programmes will be organised in all dry farming areas.

Tuhel\!ell .. hm'e changed the shape of irrigation and

conventional wells orc fast giving place 10 them in
the coulltryside

Work is in progress
at Awantipur Lift
Irrigation
Project

rLicenced under U(D)-54' 'to post without prepay'medi'at Civil Lines Post Office, Delhi).

R egd. No. D(DN)139

RN702157

'The new
20-point programme:
Irrigation
and
farm technology
In the Sixth Plan, the strategy for providing irrigation ~ofa rmel's all over the country has jive components,
namely (1) c;onserva!ioi1 of rain water in farm ponds,
(2) utilising -the groUnd. water 'potential, (3) harnessing
t!le surface 'lvater res~urces, (4) :utilising the surplus
. water in -rivers ~nd'(~)
in(~ilsifyi~g' R&D
efforts
particularly if, solar desalinaiion.
->

Timely' advice ,~villbe giv~n ~_ofarmers o;z.patterns

of
contingen~'y '"cr"opping" depe~ding upo~ weather
conditions, techniql~es to save ~rop liie and compensqtory
programmes
1:n favourable
areas.
Crop- Weather-

Lift

infgar"ioll

in HaryallllS:

a view, of lui cQnal

III

Watch Groups. will be set up. in each block and the

State Land Use Boards will be geared to render assist-.
anee. to farmers in the planning of land and water use.

(See also Cover II & III)

The latest ill !rrigation techniques is the sprinkler- irrigation which has proved a blessilJR for. arid alld desert areas

...
PUBLISHED

BY THE

AND PRINTED

DIRECTOR,

BY THE

PUBLICATIONS

DIviSION,

MANAGER, GOVERNMENT

OF

NEW

DELm-llOOOl,

INDIA PRESS.

FARIDABAD