ECONOMIC TRENDS

section ii-STANDARD OF LIFE

ANY ATTEMPT TO STUDY THE STANDARD OF LIFE OF THE PEOPLE of a particular place or region necessitates the consideration of its physical aspects over and above its socio-economic factors.

The population of the district in 1951 was 11,75,309 of which 5,72,697 were males and 6,02,342 females. The occupational distribution of the population was as follows:—

The following pages give a brief description of the standard of living of the people in both the urban and the rural areas of the district, for which a sample survey on a small scale was conducted in Satara, Karad and Phaltan regions of the districts.

Urban Areas.

The urban families were classified into the following three groups on the basis of their actual income;—

High Income Group.

For classifying a family in one of the income-groups, the total family income is related in the following way. The standard size of a family is taken to be four full units. A person below the age of 12 years constitutes half a unit and a person above that age signifies one full unit. If the size of the family to be classified is bigger than the standard one, the total income is adjusted down-wards by relating it to a family of a standard size, for example, for a family consisting of 6 units and having a total monthly income of Rs. 120, the computed total income will be 4 X 120 /6 = Rs. 80

Hence the family will be classified as if the total family income was Rs. 80.

The computed monthly income of this group comes to Rs. 250. The group consists of persons who follow such professions as education, engineering, medicine, law, goldsmithy, lodging and boarding, etc. Included in this group are also Class I and Class II Government Officers- Twenty-five families of this category from Satara, Karad and Phaltan were investigated for the purposes of this survey.

Generally every family possessed nearly 7.43 acres of land worth Rs. 7,130 of which only a small portion was mortgaged to the tune of Rs. 217.39. Most of the families in this group had their own houses and the average value of the house did not exceed Rs. 2,500. Only four families possessed cattle such as cows, buffaloes, etc.

Generally a family had only one earning member who was the head of the household. The percentage of female earners was almost negligible. The total income of a family on an average came to Rs. 376.48 per month, while the expenditure of each family was Rs. 263.78. The surplus was invested in banks, post-office, insurance, etc. The extent of indebtedness in this group was very negligible and of the families investigated only one was found to' have incurred debt to the tune of Rs. 1,500.

Commensurate with its higher standard the level of education of this group was quite high, while the percentage of illiteracy was as low as 7.55. Nearly 20.75 per cent, of the population belonging to this category had taken college education, 29.25 per cent, had reached the stage of secondary education and the percentage of people taking primary education came to 42.45. Expenditure on education was found to be Rs. 442.42 per family per year. The size of the family was quite small, each family having on an average 2.91 adults and 1.73 minors or children.

Expenditure.

The average yearly expenditure of a family was Rs. 2,70,926, while its income was Rs. 2,800.50 of which Rs. 971.46 were spent on articles of food. The next important item of expenditure was clothing which accounted for Rs. 107.73 per year. The other important items of expenditure were housing, medicine, fuel land lighting, servants and miscellaneous. Yearly expenditure on them came to Rs. 209.23, Rs. 100.30, Rs. 107.73, Rs. 115.73 and Rs. 442.42 respectively. Expenditure on entertainment was Rs. 33 per year.

Indebtedness.

The bedding of the family consisted of a few mattresses and chaddars, while the household utensils consisted mostly of brass. These families also had some stainless steel vessels and utensils.

As the economic conditions of these, families were somewhat satisfactory there was little need for them to borrow for the purposes of their maintenance. Loans were raised mostly for production on agricultural lands as well as for business. Of 28 families investigated from this group about 8 had contracted debts amounting to Rs. 26,850. The amount of loans taken by individual families varied between Rs. 250 and Rs. 5,000. In most of the cases the source of loan was. banks and co-operative societies while their duration was one year and the rate of interest varied between 7 per cent, and 9 per cent.

Middle Income Group.

The families with an average income of between Rs. 100 and Rs. 249 per month belong to this group. The family budgets of forty-eight families from this group were examined. Each family constituted on an average five members of whom 2.97 were adults and 2.06 minors or children. The number of male earners per family was 1.21 and that of female earners only 0.04. The average monthly income from the principal and allied sources was Rs. 159 per month while its expenditure came to Rs. 142.37 per family.

Expenditure.

Annual expenditure of an average family on food was Rs. 921.15. The expenditure on milk and milk products and on vegetables was small in comparison with the expenditure on similar items in case of higher income groups. As regards expenditure on items other than food an average family spent about Rs. 200 per year on clothing, Rs. 78 on medical aids, Rs. 17 on domestic services and Rs. 62 on education. Entertainment accounted for Rs. 17 per year.

Indebtedness.

Of the 47 families investigated, 18 were found to be in debt. The total debt incurred by the families was Rs. 15,086, which worked out at an average of Rs. 838 per family. The purposes of the debt were specified as follows: Of the total sum borrowed, 21.5 per cent, was borrowed for maintenance, 8.1 for marriage and other rituals, 45.00 for business, 14.5 for construction of buildings, 1.9 for purchase of machinery, etc. Banks, businessmen, insurance companies, co operative societies and relations were the main sources of loan. Interest rates varied between 5½ per cent, and 8 per cent, and debts were repayable within periods varying between one and three years.

Education.

More that one -fourth the population from this group was found illiterate. Illiteracy in this group was more pronounced than in any other group. Percentage of secondary and college education dropped quite steeply while the percentage of people who had taken or were taking secondary education was only 10.58. Percentage for college education was only 5.29. There was lack of sufficient funds to provide for the education. Out of 11 persons who had taken college education only 2 were females.

Low Income Group

this group includes families with incomes of Rs. 1,200 or below per annum. The average number of members in a family belonging to this group was found to be 7.8 consisting of 5.11 adults and 2.57 children. Both the male and the female members of the family worked. A few had ownership in land which worked out at an average of 1.63 acres valued at Rs. 1,200. In some cases the land was found mortgaged or pledged as security for contracting loans. Very few families were in possession of valuables and even such possessions were not worth Rs. 300. Only a few families owned cattle-heads worth Rs. 120 only.

The average income of a family in this group was about Rs. 133 per month. The low income and the large number of members in the families made it difficult to the families in this group to make both ends meet. Their major items of expenditure were food and clothing. The family from this group spent Rs. 900 per year on articles of food alone. Expenditure on clothing was another significant item in the budget on which the family could not afford to spend more than Rs. 200 per year. The expenditure over other items was allocated thus: Rs. 47.76 for housing, Rs. 56.23 for medicine, Rs. 78.28 for education, Rs. 14.88 for entertainment and Rs. 43 for domestic services.

Indebtedness.

Debt was a normal feature of the families in this group. Of the 11 families surveyed for this purpose it was found that the total amount borrowed by them was Rs. 19,460, the average working out at Rs. 1,769 per family. The debts were contracted for numerous purposes such as clearing off old debts, construction of houses, marriages, education, investment in business, etc., mostly from private sources such as merchants, relatives, petty traders and such others. The share of responsibility for loans in respect of co-operative banks was negligible. The rates of interest varied from six per cent, to nine per cent., the incidence of interest being very high when the loan was contracted from private institutions and relatives. The repayment was spread over from one to ten years. Immovable property normally served as security but in many cases loans were granted on personal credit and mutual relationship also.

In the matter of education progress made by this group of families was not far from satisfactory. The general tone of literacy was quite high with asmuch as 70 per cent, knowing reading and writing. About 40 per cent, of the literates had primary education. Nearly 8.45 per cent, of the literates had attained the level of secondary and only 3.02 per cent, the level of college education. Poverty and necessity to earn in early childhood deprived a large part of populace from getting benefits of higher education. However, there is found to be a major educational build up in this group due to the implemention of the new policy of Government to grant free education at all levels in case of those families whose annual income is below Rs. 1,200.

Rural Areas.

The rural standard of life offers a picture in contrast as compared to its urban counterpart. The ruralites do not get the same amenities as urbanites due to general rural backwardness, lack of proper transport and communication.

Classification of people in rural areas into various income-groups is made on lines similar to those on which grouping of urban population is based. And the villages from which these people come are selected in the same way as is done in the urban areas so that they can faithfully represent the conditions of the people in the whole district.

High Income Group.

Most of the families in this group were those of agriculturists owning vast tracts of land and with an income exceeding Rs. 3,000 a year.

The amount of security and stability generally enjoyed by this class by virtue of its ownership over land and other property is greater than any other class of the rural society. For example, an average family of an agriculturist from this group was found to have owned land worth Rs. 20,000 or above, a house worth Rs. 8,500, cattle-head worth Rs. 4,000 and gold and silver ornaments costing over Rs. 1,200 or so.

The average number of members in the family of this group was five of whom three were adults. The monthly income and expenditure of these families amounted to Rs. 450 and Rs. 370, respectively.

Expenditure.

On food the family had to spent as much as, Rs. 1,200 whereas on clothing the average expenditure was Rs. 250 per year. Expenditure on fuel and lighting was Rs. 80.3, repairing of houses Rs. 87.0, medical aids Rs. 65.0, entertainment Rs. 21.7, education Rs. 39.5, miscellaneous Rs. 36.0. The expenditure on entertainment was negligible due to the semiabsence of theatres in the villages.

The level of education of the rural population was low compared to that of the urban population in the district. Among all the three groups, however, this group stood quite high as far as general literacy and the tone of education was concerned. Only 23.5 per cent, of the rural population from this group was found illiterate, while more than 50 per cent, had completed primary education and more than 23 per cent, had taken secondary education. Percentage of those who had reached the level of higher or college education, of course, was as low as 2.90.

Inventory.

The family possessions of this group were as under — utensils (mostly brass and some stainless steel) to the value of Rs. 315.5, furniture worth Rs. 66, cotton and silk clothes worth, Rs. 244, bedding material worth Rs. 88.6 and bicycles, bullock cart worth Rs. 860. Many families also had radio, valuable religious books, old photo-frames, etc. estimated to cost about Rs. 500 to Rs. 800. People in rural areas had a fascination for gold and silver and the families in this group were not an exception. The survey revealed that on an average each family possessed gold and silver ornaments to the tune of Rs. 1,100.

Middle Income Group.

The average family in this group consisted of five members of whom four were adults. In each family the number of earners was more than one even though the head of the family was the principal earning member. The total earnings of the family from all sources were about Rs. 228 per month. Nearly every family owned a house worth Rs. 3,000 or above and land admeasuring about 14 acres, and six heads of cattle valued at about Rs. 1,000. The value of gold and silver possessions by some families could be placed at Rs. 1,300.

The monthly expenditure which an average family had to incur was calculated to be Rs. 115.7, and the annual savings were Rs. 493.4 This does not mean that all the families in this group had a sound financial position or could very well balance their budgets.

Indebtedness.

A number of households were running into debts, the aggregate amount of their debts came to Rs. 24,130 and the average worked out at Rs. 1,856 0. These loans were contracted for various purposes such as, maintenance, business, construction of houses and wells, improvements on land, marriage, sickness, etc. The creditors be longed to different categories which included merchants, friends and relatives. The agriculturist also received assistance by way of tagai loans and credits from the co-operative societies. Variations in the rates of interest were remarkable, depending upon the source from which loan was taken and the purpose of its utilization as could be seen from the following figures:—

The period covered by these loans also differed, as in the case of Tagai it was one year, in case of private loans it was two years or more and in some cases ranging over a period of even 15 years also.

Nearly a third section of the population from this group in the district was illiterate. About sixty per cent, had taken only primary education, while persons going in for secondary education formed as low a percentage as ten. College education was almost rare.

Inventory.

Most of the family possessions were in the form of gold and silver ornaments. An average family had ornaments worth Rs. 638 or above. Besides this, it had all the necessary domestic utensils, mostly of brass, worth Rs. 97, bedding worth Rs. 108, and clothes worth Rs. 325. It was also found that nearly half the number of families also possessed vehicles such as bicycles, bullock-carts, etc., the cost of which ranged from Rs. 150 to Rs. 500. A family, besides its house or land, possessed other property valued at Rs. 2,000.

Low Income Group.

This group is economically the most handicapped section of the rural community. With a limited income capacity it finds extremely difficult to make its both ends meet. The following account attempts in brief to assess the economic position of the group manifested through the available statistical data and on-the-spot personal impressions.

The computed income of the family unit in this group came to about Rs. 84. per month. An average family was composed of five members, of whom three were adults. Inspite of the fact that some of the families did possess agricultural lands their average income was too small to make sizable additions to the total resources of the family. The total area of land in possession of an average family worked out at less than 10 acres while its value was about Rs. 4,000, Instances of lands mortgaged were, however, very rare. Besides landed property, the family on an average possessed a house worth Rs. 1,200, about three heads of cattle, the value of which could well go over Rs. 1,200, and gold and silver ornaments worth Rs. 200.

Expenditure

Of the total expenditure, 47 per cent. was earmarked for food items, consisting mostly of cereals like Bajri or Jowar and meagre quantities of milk, tea, vegetables, etc. Milk did not form either a part of the regular meals of the family or a drink even for children. The average family had to spend 17. 6 per cent, on clothing. Besides this expenditure on clothing, the family had to spend 9 per cent, of its total expenditure on fuel and lighting, 2.4 per cent, on medical aids, 4.5 per cent, on education and 0.4 per cent, on entertainments and nearly 14 per cent, on miscellaneous items.

The educational standards of this class were very low with more than 50 per cent, above five years of age being illiterate. Among the literates 88 per cent, had studied up to primary level and the rest up to the secondary level. Very few persons had taken college education.

Indebtedness.

The income—expenditure pattern of this group reveals deficit budgeting. To fill up this gap borrowings were resorted to. Of the total families surveyed more than 62 per cent, had borrowed money and the average debt per family worked out at Rs. 742.

Loans were mostly borrowed from relatives and friends, co-operative societies, money lenders, merchants and petty shopkeepers. The high incidence of indebtedness can be directly attributed in a large number of cases to the insufficient income of these families. The rates of interest charged by the money lenders ranged from 7.50 to 12 per cent. The duration of loans varied from one year in the case of loans taken from money lenders to about five years in case of loans from friends and relatives.

Planning and Standard of Life

Among the manifold schemes included in the "five-year plans" nothing concerns the village life as closely as the Community Development and the National Extension Service Schemes. The Community Development Programme was started in this district in 1952 with a view to building up a new life and to create a new pattern of society in rural areas. Later on, the programme of Community Development was broadened in its application under the name of National Extension Service. Objectives of both these programmes are identical. They seek to bring about a social change by arousing the enthusiasm of the rural people for a new way of life and to put an end to poverty and starvation by initiating a process of growth in which every family in the village will be enabled to participate. The aim of the programme is not only confined to material development such as provision of food, clothing, shelter, health and recreational facilities but it extends to more important aspects of changing outlook of the people, instilling in them an ambition for higher standards of life and the will and determination to work for such standards. In this district the talukas of Karad, Patan, Satara, and Khandala have been covered by National Extension Services and Community Development Block Schemes. Of these, Karad taluka is made a Post Intensive Block, the talukas of Patan and Satara fall under Community Development Block, while Khandala alone falls under the National Extension Services.

Planning and Standard of Life.

In addition to the above programmes the Sarvodaya Scheme, the Local Development Works Scheme and the Scheme of Development of Village Panchayats are of particular importance and interest to rural areas. These schemes are well under way at different places in this district. It is hoped that they will give to the people a new outlook of life and lift their standard to higher levels.

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