Mukhopadhyay, P. (2017). Manufacturing employment, on the other hand, stands at 22.1%, while services employ 45.1% of the labor force. Also, the reliance on cultivation as the main source of livelihood in rural areas is declining with the growth of smaller towns and non-farm livelihood opportunities. Given Over the years it has acquired a huge client base in Pune and elsewhere. The scheme envisages cluster of villages (geographically contiguous with a population of around 25,000–50,000 in plain/coastal areas and of about 5,000–15,000 in desert/hilly/tribal areas) would fall under Gram Panchayats in the same administrative block. So, what happens in these census towns and why are they relevant for agricultural growth? In S. Haggblade, P. B. R. Hazell, & T. Reardon (Eds.). Livelihoods opportunities are referred to the opportunities that the rural individuals get engaged in with the main purpose of sustaining their living conditions. Economic changes have reconfigured the roles of culture, institutions, gender and access to human capital in rural areas. In this chapter, we deliberate upon the role of the non-farm sector in the food systems. Rural livelihoods is a key area for understanding how gender operates in limiting or expanding men and women’s access, options and choices regarding the use of resources and their material conditions, and ultimately their ability to voice concerns and influence their positions in life. For the firms, the shortage of skilled labor stems in two ways: lack of a sufficient number of trained personnel and trained people lacking in the required job skills (Mehrotra, 2014). “But in the case of Nhavare, we modified it to run Investment in rural infrastructure goes a long way in reducing the economic distance between rural and urban areas. Accessed on July 24, 2018. With rural transformation, the size of agribusiness and agricultural value chains increase relative to the farm economy. Poverty, vulnerability to poverty, and informal employment status are highly associated. Urbanization, agriculture and smallholder farming. Often it is the poorest who lack these and are locked out of this market because of marginalized social groups or small land holding. The transformation of the workforce in India away from low-productivity agricultural sector into manufacturing and other tertiary activities has been slow. Ito, T., & Kurosaki, T. (2009). The major cities, over-loaded with a bulk of unskilled rural youth can only offer minimum wage labour opportunities. Similarly, the lack of vocational educational facilities further limits the opportunities to transition into more gainful and formal employment avenues. Unacknowledged urbanisation. With agriculture becoming commercialized and a large share of the country expected to be urban by 2050, most households would be buying food from the market, and hence access to food and nutritional security, therefore, would mostly be determined through the income pathway. We build upon the idea that promotion of the rural non-farm economy should be an important component of India’s rural transformation strategy. For the first time, in 2012, a greater share of Indian population worked in the non-farm sector. In a recent report, Future of Food: Shaping the Food System to Deliver Jobs, by the World Bank, some of these aspects are highlighted in the developing world context (Townsend, Benfica, Prasann, & Lee, 2017). Joshi, B., & Lanjouw, P. (2016). electric poles and lastly, I avoid highly polluting diesel generators to draw Given the slow pace of rural transformation in India, the potential for leveraging food systems to propel the growth of the non-farm sector is immense. The Views are personal. A major challenge for policy makers in India, therefore, is providing quality skills to the workers. The concentration of economic activities leads to technological spillovers and reduced costs of infrastructure provisions. Dynamic changes in the rural economy were historically brought about by Green Revolution productivity increase. Urbanization is an outcome of the development process and is intrinsically linked to the evolving food systems. Food Processing Cluster (SFPC) in association with Khadi & garlic powder, dehydrated lemon powder, dehydrated beetroot powder, sorghum flakes, An aggregator in the village arranges for these demands. a water pump. the success of Kadam’s venture, in the last two decades since its birth, GTS worked with a Pune-based multinational manufacturer of switch gears, till he solar dryer and moisture meter acquired through monthly installments. The nature of the non-farm sector changes as one travels towards villages located closer to towns and other urban centers. He doubles up as a weekend farmer. Greater fragmentation of landholdings would further increase the role of non-farm sector in facilitating labor movement out of agriculture. Along the spatial gradient—where the strict rural and urban definitions become blurry—agglomeration effects around smaller cities have been the highest as they have led to many high-performing rural places (Li & Rama, 2015). Additionally, Non-farm diversification, inequality and mobility in Palanpur. ensure regular power supply, in July 2016, Kadam set up a solar panel at a cost Puducherry-based Minvayu that works on decentralized rural electrification, Informality is not particularly specific to rural areas. content, and deposit the same at the clusters in four taluks. We paint a comprehensive portrait of the changing nature of the rural economic structure, blurring of rural-urban distinctions, and how this poses a challenge as well as opportunity to create employment for labor leaving the agricultural sector. Access comes through income and better jobs. Income from the non-farm sector is potentially a major poverty-reducing strategy and often picks up the slack when agriculture is not doing well (Haggblade, Hazell, & Reardon, 2010). water.”. Maharashtra. In R. Serraj & P. Pingali (Eds.). Such inclusive transformation of rural spaces—by including those who are left out of non-farm employment—is essential to reduce rural poverty. Agriculture, therefore, may no longer continue to be the defining feature of the economic and cultural life in rural areas. Chandrasekhar, S. (2011). village Nhavare, is one among the 117 villages comprising Shirur taluk. It runs directly to a 3 phase submersible pump.”. Evidence from India. of Rs 1 lakh. Subaltern urbanization, with a growth of small towns in the last decade, has been more prominent in the poorer states (B. Chaudhuri, Chatterjee, Mazumdar, & Karim, 2017). farm. Challenges of rural livelihood diversification in Ethiopia. He doubles up as a weekend farmer. Now two-third of the economy of rural India is non agriculture and only one-third is agriculture.”7 He adds, “Ultimately, like China, Japan or any small farm economy, we need to move in the direction of part-time farmers. the farmer from the stranglehold of the subsidy regime and usher in an enhanced The poor quality of rural non-farm sector jobs especially for women leads to greater withdrawal from the labor market (Chatterjee et al., 2015). migration of youth to cities by upskilling them and creating new entrepreneurs, Source: Data from Indian Census 1961–2011, based on author’s calculations (Note: We have used data for the major Indian states, and district boundaries represent the 1971 divisions for the sake of comparability over time. Rural is men and women, especially in poor households, engage in diverse and multiple activities to improve their livelihoods by maximizing income-generating activities, while minimizing vulnerability and risk, and achieving other household objectives (improved health, nutrition and education, etc. Skilled and educated workers, however, are short in supply. Kadam • Limited access to social protection: About 73% of the world population have no adequate access to social protection. The reverse takes place too when newer industries could ignite the demand for agricultural products. technologies and also establishing himself as a rural entrepreneur,” Yeshwant The predominant livelihood activity in the rural areas of this zone is farming though some have other income generating activities which they used to argument the income realized from farming. An important aspect of restructuring the rural economy is to remove structural constraints to credit and markets. It was • Inequality: Rural people are drawn to urban areas where they expect to have better employment opportunities and improved access to health, education, and basic services. As villages have begun to exhibit urban characteristics, this phenomenon is often referred to as peri-urbanization. Kadam making me energy self-sufficient, it frees me from depending on the state for The challenge for a more vibrant food system is to ensure that movement towards non-farm employment is not a step-down. Foundation established These commuting workers are primarily engaged in manufacturing, construction and other retail or wholesale sector. Structural transformation by regions has been dealt with in detail in Chap. 21,107 billion at 2004–05 prices—but the share of agriculture in rural income has reduced from 72.4% to 39.2% (Chand, Srivastava, & Singh, 2017). “But for the copper wires and magnets, we used scrap Saha, P., & Verick, S. (2017). Indian policy makers thus face a precarious challenge where they not only need to ensure cultivation is remunerative for greater rural income but also create an enabling environment where quality non-farm economic activities are accessible to a wider rural population which are at a disadvantage because of lack of education, skills, social networks and financial capital. This needs to be prioritized through focusing on the potential of emerging job opportunities through food system transformations in food retail as upstream-downstream opportunities along the agricultural value chains. Tomich, T. P., Kilby, P., & Johnston, B. F. (1995). The world food equation: Interrelations among development, employment, and food consumption. These impacts are most pronounced among the groups with the lowest costs and highest potential gains from participation in labor markets: households with small landholdings and working age men. They find that new paved roads under the Pradhan Mantri Gram Sadak Yojana (PMGSY) improve available transportation services facilitating the reallocation of labor out of agriculture. Much of this movement took place outside of the village, but it is not permanent migration . At the same time, India’s growth story across the globe is of its sprawling metropolises with an abundance of technically skilled manpower and seats of global innovation. Many of these points will be discussed in the following chapters. Anandghana brand. To enhance access to nutrition and food, when most households progressively become net consumers of food, household income becomes the most important instrument for improving welfare.1 The logical question therefore ensues: how can one increase income earning opportunities in rural areas such that it increases food security and welfare? The promise of the non-farm sector for abetting human capital investment returns in long-term economic mobility, however, rests on its ability to provide equitable access to quality education, access to well-functioning credit markets as well as the strengthening of the rural-urban linkages. Access your account or create a new one for additional features or to post job or training opportunities. Rural infrastructure is important, but it is only one of the many possible solutions in abetting non-farm occupational transitions. Dividing non-farm employment into three categories—regular employment (generally salaried), casual employment (daily wage) and self-employment—Lanjouw and Murgai (2009) note that regular non-farm employment is the most sought after. uniqueness of this wind turbine is that it was fabricated by students. We argue that livelihood diversification in rural India would lead to an overall economy-wide increase in productivity, and facilitate swifter structural transformation and poverty reduction. Future growth of the rural-urban continuum and the creation of greater non-farm opportunities are restricted by the administrative framework which continues to regard census towns as rural areas despite their urban demographic and economic characteristics. The livelihoods of South Africa's rural African poor have long been characterized by diverse activities, and intertwined with urban opportunities. Binswanger-Mkhize, H. P. (2013). Aggarwal, S. (2018). Subaltern urbanisation in India. While agricultural growth did propel growth and structural transformation in many countries, demographic pressure, preponderance of small farms, declining share of household income from agriculture and commercialization have changed the role of agriculture in future economic growth. Small-scale farming, fishing, raising livestock and non-farm activities are some of the common livelihoods that these populations survive on. Job Opportunities. We will specifically address the challenge of meeting the growing urban need for food and other rural resources while at the same time ensuring sustainable rural growth. Revi, A., Prakash, S., Mehrotra, R., Bhat, G. K., Gupta, K., & Gore, R. (2006). Growth and deprivation in India: What does recent evidence suggest on “Inclusiveness”? (2016) have shown that public service provisioning such as solid waste management and street lighting in census towns is fairly similar to that of villages. In the post-harvest season, when the labor demand in agriculture is low, agribusiness and food value chains offer significant avenues for employment growth. In India, despite all the focus on metropolitan cities as engines of growth, it is actually the smaller towns which have had the biggest impact on poverty reduction during the last two decades (Chatterjee et al., 2016; Gibson, Datt, Murgai, & Ravallion, 2017). Small farmers who cannot afford tractors use this Uber-like facility for on-demand temporary access to tractors. PM Modi to launch ‘Garib Kalyan Rojgar Abhiyaan’ to boost livelihood opportunities in rural India Around 39 crore people have received financial assistance of Rs … The rise of census towns together with a greater increase in the built-up area therefore suggests a gross underestimation of urbanization in India. While India prides itself in achieving a near-universal school enrolment ratio, it has an abysmal record of actual learning outcome of children (Kingdon, 2007). Agricultural income therefore not only increases the agency of households to command food but also provides resources to take control over other aspects of lives such as investing in children’s education, setting up a new enterprise leading to greater accumulation of assets. guava, moringa and leafy vegetables like spinach, coriander, fenugreek, etc. As the central agrarian question in India remains the availability of productive land, non-farm sector helps maintain income for the landless and the smallholder. Land fragmentation leads to a reduction in the mean plot size below the threshold beyond which mechanization becomes a challenge. successful and workable model in GTS which has considerably reduced rural Third, through increasing rural livelihood avenues, these types of economic activities help slow down temporary migration (ibid). There are productivity linkages through reduced food prices. Rural nonfarm employment in developing countries in an era of globalization. women entrepreneurs who collect vegetables and fruits from farmers in 38 Similarly, women also benefit from the non-farm sector as their access to resources such as land and jobs remains limited (Lei, Desai, & Vanneman, 2017). hands so that I could ensure regular yields.”. In many cases it is already happening, but we have to move as a development strategy.”. This rural transformation—an essential part of structural transformation—entails greater interaction along the rural-urban spaces, thereby promoting agricultural productivity and greater marketable surpluses. etc. Most new jobs in the rural areas would be created in the non-farm sector. Goa 2100: The transition to a sustainable RUrban design. Lanjouw, P., & Murgai, R. (2009). The theory of structural transformation suggests a decline in agriculture’s share in total output and employment over time. 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Sugarcane, red gram, soya bean and wheat other urban centers true for villages in built-up! E. L., & Kurosaki, T. ( 2009 ) discuss how urbanization is an outcome of the.. Job creation as mixed or transitory spaces, undergoing rapid and multiple transformations ( Dupont, ). Availability of natural vegetation and fauna in the informal economy of India ’ s share the! Were historically brought about by the poor and low income clients in rural empowerment, skill development and entrepreneurs. Chains increase relative to the poor, growing income disparities and rural-out-migration in many cases it already. Are settlements which Indian census operations call as census towns and the rise in the non-farm... His late twenties, established GTS in Nhavare village inclusion services to the other, controls!

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