In India, rural incomes are generally lower than the urban incomes. Which of the following reasons account for this ? I. > A large number of farmers are illiterate and know little about scientific agriculture. II. > Prices of primary products are lower th

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Q: 65 (IAS/1996)
In India, rural incomes are generally lower than the urban incomes.
Which of the following reasons account for this ?
I. A large number of farmers are illiterate and know little about scientific agriculture.
II. Prices of primary products are lower than those of manufactured products.
III. Investment in agriculture has been low when compared to investment in industry.
Select the correct answer by using the codes given below : Codes :

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,89,49,89,14,12,23

keywords: 

{'rural incomes': [0, 1, 0, 0], 'agriculture': [5, 1, 0, 6], 'urban incomes': [0, 1, 0, 0], 'scientific agriculture': [1, 1, 0, 0], 'farmers': [1, 3, 8, 26], 'investment': [0, 0, 0, 1], 'india': [8, 1, 7, 13], 'industry': [4, 6, 11, 27], 'primary products': [0, 1, 0, 0]}

The correct answer is Option 1: I, II, and III.

I. A large number of farmers are illiterate and know little about scientific agriculture:

In rural areas of India, a significant portion of the population relies on agriculture for their livelihoods. However, due to limited access to education and resources, many farmers are illiterate and lack knowledge about modern farming techniques. This leads to inefficient farming practices, lower crop yields, and ultimately lower incomes. Without proper education and understanding of scientific agriculture, farmers struggle to adopt advanced technologies, crop rotation methods, pest management strategies, and other practices that can improve productivity.

II. Prices of primary products are lower than those of manufactured products:

Another reason for lower rural incomes in India is the price disparity between primary products, such as agricultural commodities, and manufactured products. Primary products, including crops, livestock, and raw materials, often face lower market prices compared to the finished goods produced in urban areas. This price difference is influenced by several factors, including supply and demand dynamics, market intermediaries, infrastructure limitations, and value addition processes. As a result, farmers in rural areas face reduced profitability when they sell their primary products at lower prices, contributing to the income gap between rural and urban populations.

III. Investment in agriculture has been low when compared to investment in industry:

Historically, India has witnessed a significant disparity in investment between the agricultural sector and the industrial sector. Industrialization and urban development have received greater attention and investment compared to agriculture, particularly in terms of infrastructure, technology, research, and development. This imbalance in investment creates a disadvantage for rural farmers and hampers their ability to modernize their farming practices, improve productivity, and enhance market access. Limited investment in agriculture restricts the availability of crucial resources, such as irrigation facilities, quality seeds, fertilizers, machinery, storage facilities, and market linkages, which are essential for increasing agricultural productivity and, consequently, rural incomes.

In conclusion, a combination of factors, including illiteracy and limited knowledge about scientific agriculture among farmers, the price disparity between primary and manufactured products, and the historical imbalance in investment between agriculture and industry, contribute to the generally lower rural incomes compared to urban incomes in India. Addressing these issues requires a multifaceted approach, including investments in rural education, agricultural infrastructure, technology dissemination, market reforms, and policies that promote sustainable rural development.