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    Rural Artisans

    2.14 As per the Draft Plan 1978-83 (revised), the traditional rural

    industries like khadi, village industries, handlooms, sericulture, coir

    and handicrafts provided employment to 14 milUon persons in

    1977-78 and the value of their production aggregated Rs. 2,125 crores.

    They accounted for about 5.5 per cent of the total contribution by the

    manufacturing sector to the net domestic product. The present position

    is that like the agricultural labourers, the rural artisans also lack

    improved or modern productive assets, though they possess some basic

    skills. An additional factor is the lack of an assured market for their

    goods. Consequently, the rural artisans have to rely on wage employment

    to some extent. Though they may require consumption credit

    initially and during some periods, their real need is for investment

    credit[i.e. credit for acquiring modern productive assets) supported

    by input supplies and marketing facilities. In addition, they are in

    need of some services the provision of which is the responsibility of

    Governments, both Central and State. The major task consists of

    (z) supply of raw materials, {ii) introduction of designs based on

    market preferences and consumer research, {Hi) introduction of

    improved tools, {iv) upgrading of skills through training and {v)

    marketing arrangements and export promotion.

    Agriculture

    8.7 Organisations of relevant services which would help small and marginal farmers and

    sharecroppers to derive economic benefits from new technology and diversification of

    farm income through mixed farming, agro-industries and small scale industries are two o

    the major thrusts of the agricultural Plan. The effective implementation of this

    programme will call for greater efforts in the field of scientific land and water use

    planning and in linking production with processing, storage and marketing. Improved

    management through a flood of cash and non-cash inputs will have to be achieved. Both

    internal and external markets will have to be properly served through well-planned

    linkages be^een co-operative marketing federations, Civil Supplies Corporations and

    'foreign trade agencies. Structured linkages involving forward planning will have to be

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    developed among the concerned agencies. Scientific management of agriculture will

    require a highly orchestrated effort in policy formulation and implementation on a part o

    the agencies concerned with the development of packages of technology, services and

    public policies. Both at the Siate and national levels, this aspect will have to receive

    attention if the desired growth rates in agricultural production and exports are to be

    achieved

    http://planningcommission.nic.in/plans/planrel/fiveyr/6th/6planch8.html

    Agricultural input projects must provide inputs that are

    technologically feasible in the small farmer's environment. Often

    they are too advanced for the farmer's resources and knowledge

    base or too complicated for the local system of transportation

    and communication to support. Delivery of the agricultural

    inputs must be timely. Many inputs must be completely written

    off if they are not available at the proper time in the season,

    and concern about this possibility of failure may inhibit farmers

    from experimenting with new inputs even where delivery problems

    have been resolved. Utilization of the inputs must result in a

    marketable, profitable product for the farmer, which means that

    inputs must be coordinated with the overall farming system and

    supportive price and economic policies at the national level.

    For agricultural marketing projects, services must be

    appropriate to the systems available in the user's environment.

    This might be collecting crops at the farm gate, handling small

    increments, and providing assistance with crop drying and

    storage. The market services must be timely. Most farmers,

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    especially in the tropics where risks of spoilage are high,

    prefer an immediate sale to a private trader over a later sale to

    a government agency, even when a higher price is offered. Yet

    marketing the crops must result in a profit if the incentive to

    produce is to be maintained. The two most frequent causes of

    price problems are government policies and seasonal volatility

    caused by short-term supply considerations.

    http://pdf.usaid.gov/pdf_docs/PNAAL079.pdf

    1. Agricultural input programs must provide farmers with inputs

    that are appropriate. Many programs have introduced

    technologies that were too advanced for the farmers'

    resources and knowledge base, not profitable under the

    farmers' own conditions, or too complicated for the local

    system of transportation and communication to support.

    2. Delivery of the agricultural inputs must be timely. Many

    inputs must be completely written off if they are not

    available at the proper time in the season. Concern about

    this possibility of failure may inhibit farmers from

    experimenting with new inputs, even where delivery problems

    have been resolved.

    3. Utilization of the inputs must result in a marketable,

    profitable product for the farmer.

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    Timeliness is particularly importantwhen biological processes and farmer decisionmaking aredependent on capricious monsoon rains. The more complex thetechnological package and the greater the number of off-farminputs required, the more dependent the farmer becomes on theefficiency of input delivery services.

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    PAGE 37-38

    http://www.jstor.org/stable/pdfplus/3211741.pdf

    http://www.worldbank.org/afr/fertilizer_tk/documentspdf/GregoryOnVouchers.pdf

    http://www.agnet.org/library/eb/551/

    http://pdf.usaid.gov/pdf_docs/PNAAL079.pdf

    http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=1270

    In the absence of government extension service, farmers are advised by input traders leading to an increase in inpucosts through supplier-induced-demand.

    Input quality: Inputs in the form of seeds, pesticides and fertilisers sold to farmers could be of spurious qualityThere is no regulatory mechanism. We came across situations where farmers were advised by traders to gin for a third sowing a case of supplier-induced-demand. The private traders should be regulated. Loca

    non-governmental organizations (NGOs) can be involved in regulating the private trader.

    http://www.igidr.ac.in/suicide/ExecutiveSummary_SFM_IGIDR_26Jan06.pdf

    http://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/55259.pdfvyas committee report