This is a considerable slide from the recent peak of 22 per cent in FY11 and The unrest in the agriculture sector is palpable.
Definition of rural non-farm activities, determinants of rural non-farm activities, challenges of rural non-farm activities and the contribution of rural non-farm activities to poverty reduction. Rural non-farm activities Junior R. Davisdefines rural non-farm activities as comprising all those activities associated with wage work or self employment in income generating activities including income in kind that are not agriculture but which generate income including remittances etc.
Rural non-farm activities also refers to those activities Non farming activities in india essays are not primarily agriculture or forestry or fisheries but includes activities such as trade or processing of agricultural products even if in the case of micro processing activities which take place on the farm Gordon Ann and Craig Catherine, Rural non-farm activities is also defined as all economic activities conducted in rural areas except agriculture, livestock rearing, fishing and hunting Lanjouw and Lanjouw, Rural non-farm activities include agro processing, small businesses in rural areas, migration or switching from farming to commodity trading or household assets selling in response to negative circumstances Davis and Pearce, In the context of this research, rural non-farm activities is defined as all economic activities in rural areas with the exception of agriculture the growing of crops and the rearing of animals for sale or for consumption which provides a source of livelihood for the rural people.
Some of these activities include petty trading, food processing, craftworks, carpentry works and all other activities that are not agriculture. Determinants of rural non-farm activities The establishments of rural non-farm activities require very low levels of capital investment and are some are also based on locally available raw materials G.
Monica Janowoki and Anna Bleahu identifies that the ethnicity and religious affiliations of a group of people influence their ability to be involved in some kind of activities.
David Rider Smith reveals that social, historical as well as contemporary levels of investment being the determinants of varying levels of livelihood sources.
Mariya Portyanko also identifies infrastructure as the determinant of rural non-farm employment citing that, the only infrastructural factor that affects non-farm employment is the availability of telecommunication.
Access to infrastructure is a factor that affects rural non-farm employment and income and that the quality of two key types of infrastructure: John Gibson and Susan Olivia, Taylor and Francisemphasizes the role of location factors in the determination of rural non-farm employment possibilities in rural Honduras.
They found that while rural non-farm wage jobs are predominantly located close to urban areas, rural non-farm self employment jobs are geographically dispersed around the country depending on local motors such as a profitable agricultural activity, an important road or a tourist attraction. Martine Dirvenalso indicates that, location and various distances that go with it are a vital determinant of rural non-farm economy.
A study by Peter Lanjouw in the Brazilian North-east revealed that education and location is an important determinant of both employment and earnings in rural non-farm activities.
Others like Reardon Thomas, Julio Berdegue and German Escobarreviews the results of a number of country specific studies in Latin America and the general findings from these studies were that rural non-farm employment and income are significant parts of rural household income.
The important determinants of employment in the rural non-farm sector from the study are education and access to infrastructure. Alexander Freesefinds human capital variables, access to inputs, distance to community infrastructure and household composition to be the most important for stimulating a successful participation in the rural non-farm economy.
Using Burkinabe household data and applying the two-step Heckman selection model. Another study in Doma area of Nasarawa State in Nigeria identified that, the determinants of non-farm diversification are access to credit, level of household income, total household farm size and household dependency ratio.
I and Onuk, G. All these literatures concentrate on the investment levels, infrastructure and religious affiliation without considering the marketing avenues and access to raw materials which mostly determines the operation of these activities.
Challenges of rural non-farm activities Mandal highlighted four important obstacles and all these constraints have to be removed if the rural non-farm is to play a significant role in reducing rural poverty.
These constraints are market related constraints, physical constraints, policy and institutional constraints. He indicated the policy constraints as inadequate credit, irrational tax structure and bias against rural industrialization are dominant factors.
He further added that, institutional constraints like absence of business advisory services for rural non-farm sector enterprises and lack of institutional set up for rural non-farm sector are the main constraints.
Technological changes have affected most of rural non-farm enterprises with many social and economic consequences. Cost of new technology, wrong adoption of technology, non awareness of new technological packages, perception of traditional technology as superior to improved technology among them hinder the development of rural non-farm sector.
Cintia Silvia Vegareported from a study that, the Bolivian medium and small enterprises are characterized by relatively low use of external financing, poor levels of expenditure on fixed assets, technology and quality and an intensive use of unqualified labour which negatively affects their productivity.While agriculture’s share in India’s economy has progressively declined to less than 15% due to the high growth rates of the industrial and services sectors, the sector’s importance in India’s economic and social fabric goes well beyond this indicator.
In India, women’s land rights are seen as particularly important in the context of demographic changes in occupational patterns, with more and more men migrating to urban areas or looking for non-farm work in rural . not the worst even amongst manufacturing activities, let alone agriculture activities.
But it would be better to compare on access to employment, as the alternative for women in (urban) garment assembly firms in Bangladesh and Cambodia is seeking • Growing from a virtually non-existent base in the s, Cambodia’s garment industry has.
agriculture and related activities was estimated at just per cent, while growth in the industrial and services Non-farm sector and rural diversification Rural Urban Agriculture Industry Services.
India Labour Market Update | 3 the services and construction sectors in the transition. Essay: Government Intervention And Its Disadvantages Should our economy be run by a doctrine that was made popular by a group of French writers called physiocrats in the mids? This doctrine is called laissez-faire and it literally means to let or allow to do(The Family Education Network).
These shocks affected the rural economy through twin channels of interdependence of non-farm incomes on the farm sector and also standalone non-farm activities. Indeed, rural wage growth has plummeted to per cent in recent months from billion prior to the demonetisation shock.