ECONOMIC TRENDS

RURAL AREA

An assessment of the standard of living of the rural population presents several difficulties. First of all, a number of transactions take place in the form of barter and their economic significance cannot be gauged fully. Secondly, persons depending upon agriculture, supplement their income by following other allied occupations, while some families get regular monetary help from their relatives employed in cities. Thirdly, the mode of living of the people in rural areas is affected equally by the type of their occupation as by the size of the income. Fourthly, among agriculturists it is very difficult to decide who is really employed. A large population of agriculturists is under-employed. This gives rise to what is known as ' disguised unemployment'. It signifies an adverse man-land ratio. Lastly, due to ignorance and false beliefs, people do not give reliable information to the field investigators. It is against this background that an analysis of the living conditions of the rural masses has to be made.

An attempt is, however, made to present a broad picture of their living conditions based on the survey of families from rural areas.

Rural-urban differential.—Generally speaking, the food group exhibits a lower weight in the urban pattern than in the rural pattern. This is mainly due to the reduction in proportional expenditure on cereals. A shift of emphasis from cereals to ' other food items ' is evident in the urban pattern of consumption,

Similar is the case with the non-food group. Not only actual expenditure but proportional expenditure on these items, too, shows a marked rural-urban difference. The percentage expenditure on non-food items is considered to be an important index of the standard of living of the people. The difference of more than 10 per cent in the proportional expenditure on non-food items in the urban and rural sectors is indicative of the difference in the standards of living of the urban and rural population.

Group I

This group consists of big or well-to-do farmers who form the upper stratum of the rural society by virtue of their ownership of big tracts of land together with consequent control over labouring classes and their higher income. A survey of 40 families in this group reveals the following.

A typical family of a farmer comprises seven and a half units including six adults and three minors. Both men and women contribute towards the earnings of the family. The total annual income of a family on an average is estimated to be around Rs. 5,000. The main source of income is land. But a few families derive income from other sources like interest on money advanced or investments made and sale of cattle produce or products of small industries. Out of the families surveyed 31 families are found to own their houses. Besides land and houses, most of the families possess a large number of cattle comprising bullocks, buffaloes, cows, etc.

The average monthly expenditure of a family in this group is above Rs. 250 and 51 per cent of it is spent on food items only. Among food items, cereals and pulses account for 35 per cent of the expenditure. The expenditure on milk, vegetables and oils works out at about 17 per cent, 10 per cent and 15 per cent, respectively. The remaining 23 per cent is on other items like spices, prepared food varieties, etc.

Among non-food items clothing claims about 30 per cent of the expenditure. Next in order, are education, medicines and rent which account for 21 per cent, 13 per cent and 12 per cent of the expenditure, respectively. Other items of expenditure in this group are entertainment, religious and social obligations and miscellaneous items. Expenses on transport are modest probably because these people own their vehicles like dhamani, tonga, bicycle or cart which is considered to be a matter of prestige for a well-to-do villager.

The house-hold equipment includes brass and copper utensils. A few families possess even stainless steel and silver articles. Some families possess costly clothes like paithani, shalu, shela and jari turban. Gold and silver ornaments like angathi (ring), putali (neck-lace), patalya (bangles), toda, kamarpatta, bugadya, nath (nose-ring), etc., are commonly used. This is regarded as a matter of affluence among rural people. Furniture comprises one or two chairs, a table, one or two wooden cup-boards, one chauranga (a small square stool) and the like. Agricultural implements like ploughs, seed drills, harrows, axes, spices, sickles, etc., are very common in almost all house-holds. Many of them own bullock carts.

This class of people is found to be fully aware of the importance of education. Nearly 70 per cent of the people are literate.

These families are able to set aside a part of their income as savings. On an average a family can save more than 50 rupees a month. These savings are held in cash or invested in insurance policies or savings certificates. In many cases, investment is made in land improvement. This group also includes money-lenders who advance loans to petty tenant cultivators or agricultural labourers. No doubt, even in this group of well-to-do families there are some borrowers. But these borrowings are not for meeting daily expenses on consumption but for purposes of production Money-lenders, relatives, friends or co-operative institutions, usually supply the bulk of loans. The rate of interest varies from 6½ per cent to 12½ per cent per annum.

Group II

This group consists of medium cultivators and a few tenant cultivators whose family income ranges between Rs. 1,000 and Rs. 3,000 per annum. The cultivators in this class are found to hold about 4.047 to 6.070 hectares (10 to 15 acres) of land. The family comprises six units including four adults and an equal number of children. The number of earning members in this class is larger than that of group I. The survey reveals that women and children form more than 30 per cent of earning population. There are many earning dependents. The annual income of a family from all sources amounts to between Rs. 1,000 and Rs. 3,000 per year. The annual expenditure of a family in this group ranges between Rs. 1,500 and Rs. 2,000. Out of 70 families that were surveyed from this group 50 families had their own houses.

About 56 per cent of the expenditure of the families in this group is on food and other items of consumption. The remaining 44 per cent is on clothing, education, lighting, entertainment, medicines, rent, etc. Among the food items, a major part of the total expenses are on foodgrains. Next to foodgrains come milk and vegetables which account for more than 15 per cent of the expenditure on food. In many cases both milk and vegetables are house-hold products and hence their value has to be calculated at local rates. The quantity of milk consumed is much less than nutritional standards. [Nutritional experts consider that for a balanced diet an adult should consume about 8 litres (181bs.) of milk per month.] The rural population is under-nourished in respect of milk and the related products. However, the position in urban areas also is not more satisfactory in this respect. Similar is the case with regard to oils, sugar and other items. The estimated consumption of sugar, oil and other items is far below the requisite standard.

In non-food group the major items are clothing, education and medicines, claiming 36 per cent, 12 per cent and 11 per cent, respectively, of the expenditure on this group. Annual expenses on miscellaneous items such as cosmetics and entertainment are about 15 per cent. Expenditure incurred on items like excursions or pleasure trips is practically nil.

The house-hold equipment consists of brass, copper and earthen utensils. A bedding set comprises blankets, chaddars and a pair of mattresses. Most of the families possess a small quantity of old fashioned ornaments of gold and silver like putali, patli bangles, nath, toda, etc. Very few families possess valuable items of furniture. A small table, one or two chairs, a small cup-board and a pair of stools are all that they possess. But almost every family possesses agricultural implements like ploughs, sickles, axes, harrows, etc. In addition to this almost all agricultural families own a pair of bullocks, one or two cows or buffaloes or some goats. Bicycles and carts are common vehicles found in many house-holds.

Out of 70 families surveyed, only 25 families reported their savings; ten families invested their amounts in life insurance policies, national savings certificates, etc.; the remaining families either lent their money to the needy cultivators or invested it in deposits. On the other hand, there are families who borrow money from others. These borrowings are meant for meeting expenditure on cultivation, marriages, deaths, etc.

The percentage of literacy in this group is less than that in Group I. About 55 per cent from this group are literate. Most of them receive only primary education and only about 15 per cent reach the stage of secondary education.

Group III

Poor tenant cultivators, agricultural labourers, village artisans and government servants of the lowest cadre constitute this group. The agricultural labourers can be further classified in four classes.—(i) partly cultivators and partly labourers, (ii) fully labourers, (iii) attached labourers, and (iv) casual labourers. Of these the last two live a hand to mouth existence. [In Maharashtra State, according to the National Sample Survey Enquiry Report their annual house-hold income is estimated to be about Rs. 367.] The position of labour attached to land is slightly better.

As per the findings of the survey the average annual income of a family in this group is estimated to be about Rs. 750, while the average expenditure is Rs. 740 per year. A great number of families in this group are found to be indebted. Due to extreme poverty, these families have nothing to offer as security against their borrowings. Hence, the door of institutions like co-operative banks is practically closed to them. The new system of crop finance which is being introduced in many parts of Maharashtra would lessen the gravity of the problem of rural credit, particularly with reference to the less privileged classes of farmers.

Food and clothing together account for about 78 per cent of the total expenditure. A family is required to spend 64 per cent on food and 14 per cent on clothing. From the food group, cereals and pulses account for 56 per cent, oils, vegetables and' milk, each for 9 per cent and the rest is spent on other items entering that group.

In the non-food group, about 42 per cent of the amount is spent only on clothing. Poverty does not allow these people to spend sufficiently on medicines, entertainment and religious rituals. Entertainment accounts for about a rupee per month.

The housing conditions of these people are very unsatisfactory. A thatched hut of straw or bamboo or of inferior type of tin, very often exposed to the sun and rain, serves as shelter. Out of 93 families surveyed, 76 families have their own shelter. Some families are found to own small strips of land, often of inferior type, which provide some source of livelihood to them when monsoons are not unfavourable.

The house-hold equipment comprises some brass and copper utensils, many aluminium utensils, earthen pots, etc. Their bedding comprises kamblis, sacks and a pair of chaddars. They possess inferior type of agricultural implements. A few families possess goats and cows. Maintenance of a pair of bullocks is beyond their reach.

Only a few families can save a little. Many of them have to borrow to meet their needs. The loans taken by them range from Rs. 100 to Rs. 1,000. Many times, these loans are in the form of temporary credit allowed by the grocers on the strength of personal security.

Taking the group as a whole, the percentage of literacy is very low. But if the group is divided in sub-groups or sections like village artisans, state servants, agricultural labourers, etc., then the number of literates in some of these sections is found to be somewhat fair. Very few seem to have received secondary education. However educational facilities have increased considerably in recent years. The government provides free education to boys and girls whose family income does not exceed Rs. 1,200 per annum. This has been a boon to boys in this class who have now wide opportunities.

From the data available and analysed so far, a fair picture of the standard of living enjoyed by the people emerges. The rural population can be said to be better off now than what it was a few years before. The standard they enjoy and the trend in their living conditions seem to be in conformity with the general trends that are visible in the country.