Dr. Ranjit Kumar, ICAR-National Academy of Agricultural Research Management, Hyderabad, India Presented at the ReSAKSS-Asia conference “Agriculture and Rural Transformation in Asia: Past Experiences and Future Opportunities”. An international conference jointly organized by ReSAKSS-Asia, IFPRI, TDRI, and TVSEP project of Leibniz Universit Hannover with support from USAID and Deutsche Forschungsgemeinschaft (DFG) at the Dusit Thani Hotel, Bangkok, Thailand December 12–14, 2017.

1. Dr. Ranjit Kumar
ICAR-National Academy of Agricultural Research Management
Hyderabad, India
Agricultural Transformation in Eastern India:
Micro-level Evidences
Regional Conference
Agriculture and Rural Transformation in Asia: Past Experiences
and Future Opportunities
Bangkok, Thailand. Dec 12th – 14th, 2017

2. Poor education,
health &
sanitation:
• High IMR &
U5MR
• Low labour
productivity
Poor resources
low quality
assets poor
quality inputs
Low output &
income
Lack of awareness &
Inaccessible govt.
benefits:
Obsolete/ no
technology
Poor Basic &
Social
infrastructure
Restricting
enabling
environment
EASTERN STATES: Bihar, Jharkhand & Odisha

3. EasternIndia BIHAR
JHARKHAND
Tot Popln
33 million (3%)
Rur Popln
75.9%
Marginal farmers
68%
Avg land size: 0.41 ha
ODISHA
Tot Popln
41.9 million (3.5%)
Rur Popln
83.3%
Marginal farmers
72%
Avg land size: 0.57 ha
Tot Popln
104.1 million (9%)
Rur Popln
88.7%
Marginal farmers
91%
Avg land size: 0.25 ha
Home of
62 million poor

4. 0%
20%
40%
60%
80%
100%
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
BIHAR
Agriculture Industry Service
4.86%
13.29%
11.39%
GSDP growth:
10.01%
CGR
0%
20%
40%
60%
80%
100%
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
JHARKHAND
Agriculture Industry Service
8.37%
4.54%
11.39%
GSDP growth:
7.9%
CGR
0%
20%
40%
60%
80%
100%
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
ORISSA
Agriculture Industry Service
2.66%
5.98%
8.72%
GSDP growth:
6.6%
CGR
Sectoral performance in 3 states
(2004/05 to 2014/15)
 Agril performance has direct implications for overall economic
development, particularly in rural areas.
 During 2004/05 to 2014/15, share of agriculture (32%19% in Bihar;
24%15% in Odisha,  16% in Jharkhand)
 Bihar needs to grow at its current rate of over 10% for the next 18
years in order to match Maharashtra’s current per capita income.

5. Items
Annual growth in Value of Output
from different commodities, %
(2000/01 to 2013/14)
Bihar Jharkhand Odisha India
Cereals 11 11 13 11
Pulses 9 24 15 12
Oilseeds 11 26 10 13
Fruits and vegetables 7 15 10 11
Livestock 13 14 17 13
Fishery 14 11 11 12
Forestry 14 18 17 19
Agriculture in eastern states slowly
diversifying
Source: Central Statistical Organization
• At state level, livestock and fishery are progressing well in these 3
states.
• Jharkhand state is more resilient than other two in terms of diversity
in performance.

6. y = 40.722x + 1371
y = 56.005x + 1028.4
y = 41.614x + 1022.8
0
500
1000
1500
2000
2500
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
Productivity(Kg/hectare)
Bihar Jharkhand
Odisha ALL INDIA
Linear (Bihar) Linear (Jharkhand)
Foodgrain productivity in eastern India
 The foodgrain productivity in some of the most-productive districts in
India is more than 30-times the productivity in some of the districts in
eastern states.
 f(agro-ecological conditions, irrigation development, level of
policy support, institutional factors, demographic features, etc.)

7. Average daily wage rate for male in ploughing
Source: Labour Bureau
• Implementation of
MGNREGA has
improved the bargaining
power of agricultural
labours.
• Lack of farm
mechanization further
aggravating the situation
for the farmers.

8. Micro-level evidence from VDSA
(2010-2014)
TWO VILLAGES FROM EACH
DISTRICT
• Bihar state
Darbhanga & Patna
• Jharkhand state:
Dumka & Ranchi
• Odisha state
Dhenkanal & Bolangir
Total: 480 Panel hhlds
• Average family size: 4-5
• Worker-dependent ratio: 50%
• Years of schooling : Female- 3 to 6
Male- 5 to 10
• Piped drinking water: 0
• Electrified household: 57 to 80%
• At least 2-wheler: 2 to 12%
VDSAvillages’Insights

9. Year Landless
(<0.5 ha)
Marginal
(0.5-1.0)
Small
(1.0-2.0)
Large
(>2.0 ha)
2010 0.31 0.71 1.38 3.54
2011 0.30 0.69 1.38 3.56
2012 0.31 0.71 1.38 3.50
2013 0.30 0.70 1.39 3.40
No. of hhld 131 125 215 267
Change in landowning pattern
(in ha per household)
• Rural farming households are showing sign of exiting
farming.

10. 0%
20%
40%
60%
80%
100%
2010 2011 2012 2013
Patna
Paddy Wheat Pulses Vegetables
Potato R/M Fodder
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013
Darbhanga
Paddy Wheat Pulses Vegetables
Potato R/M Fodder Others
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013
Ranchi
Paddy Wheat Pulses
Oilseeds Vegetables Potato
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013
Dumka
Paddy Wheat Pulses Maize
Oilseeds Potato Vegetables Others
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013
Balangir
Paddy Pulses Cotton Vegetables Others
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013
Dhenkanal
Paddy Pulses Vegetables Others
BIHARJHARKHANDODISHA
VDSAvillages’Insights
CHANGINGCROPPINGPATTERN

11. Land and livestock holdings
LB- Landless labour; SM- Small; MD-Medium; LA- Large
% Change in 2013 over 2010
-125 -25 75 175
LB
SM
MD
LA
LB
SM
MD
LA
LB
SM
MD
LA
BiharJharkhandOdisha
No. of milch
animals
No. of draft
animals
% Irrigated
area
Operational
holding (acres)
 Landless class- more
serious in farming;
 Rural households are
reluctant in livestock;
 Land leasing market
growing
 Ecosystem should
support it
VDSAvillages’Insights

12. Non-farm income is better than farm income
MEDIUM
LANDLESS
LARGE
SMALL
2013-14
>$5000 p.a.
BH- 17
JH- 07
OD- 06

13. Farm profitability of VDSA households
-100000
0
100000
200000
300000
400000
500000
0 20 40 60 80 100 120 140 160
BIHAR (INR/hhld)
Crop-2010 Crop-2011 Crop-2012 Crop-2013
-50000
0
50000
100000
150000
200000
0 20 40 60 80 100 120 140 160
JHARKHAND
Crop-2010 Crop-2011 Crop-2012 Crop-2013
-50000
0
50000
100000
150000
200000
0 20 40 60 80 100 120 140 160
ODISHA
Crop-2010 Crop-2011 Crop-2012
Rabi fallow as compared to
kharif crop area, %
Bihar Jharkhand Odisha
2010 -18.72 92.20 70.25
2011 3.24 95.92 66.09
2012 3.86 95.38 79.63
2013 3.81 93.00 79.28

14. Linking farmers to markets:
Challenging task
 Farmers sell the small surplus in local
market low output price due to local
glut during harvest time
 Unawareness about price information
in distant market
 Fear of not able to sell on the same day
in distant market
 For perishable high value commodities,
it is very important to clear the local
glut.
Marketlinkages

15. • The cereal-based cropping pattern may not be
able to bring needed transformation.
• Households need to augment their livelihood
through other commercial agriculture- fruits,
vegetables, poultry, milk production, etc.
• More non-farm opportunities need to be created
through public investment in road, electricity,
storage & warehousing, value addition, etc.
• Easier and efficient linkage with high income
urban consumers market would be crucial for
high value commodities.
Key insights:

16. Agriculture
Purchase of implements
Purchase of livestock
Social functions
Consumption
Education
Medical
Business
Repay old debt
Major repairs
Purchase of land
Marriage
Drill well/bore well
Others
No. of households
50100150200250 50
SATRegion
EasternRegion
Informal loan
Formal loan
100
₹40K ₹42K₹67K ₹12K
Credit need by the panel households, 2010-13
• In recent years, access
to agricultural loan
through KCC/ Micro-
credit has improved.
• Appetite for credit is
much higher in other
region.
• Other than agriculture
& vehicle loan, mostly
borrow informally in
eastern region.
Accesstoinstitutionalcredit

17. 1
2
3
4
Mostly from SHGs, Co-operative and Friends
& relatives for the Agricultural purpose
Commercial banks, for purchase of
livestock and agril. implements
From formal sources for the agriculture
and agril. implements
Money lender, MFI and private banks for
short term consumption purposes and
long term agril implements
• Smallholders and poor
either don’t take loan or
avail very costly loan from
informal sources
Accesstoinstitutionalcredit

18.  Production risk, caused by fluctuations in the
occurrence and distribution of the monsoon
has become typical feature for eastern states.
 Crop/ livestock insurance in eastern India-
negligible for smallholder farmers, who
don’t take loan.
 New Crop Insurance Scheme (PMFBM):
uniform premium of only 2% to be paid by farmers for
all Kharif crops and 1.5% for all Rabi crops
 The scheme is compulsory for loanee farmer
 The scheme will be implementable on an ‘Area
Approach basis’ (village/ village panchayat).
Rainwater in the
harvested paddy in
Odisha village
Hailstorm just before
harvest of wheat crop in
Bihar village
Risk&Insurance
Mitigating production risk

19. NAM: Progress in Jharkhand & Odisha
Commodities Traded:
Onion, Green gram, Chillies,
Turmeric, Maize
Total APMC under e-NAM : 10
Online APMC : 5
0.12 0.13
0.17 0.18 0.19
0.28
0.37
0.46
0.49
0.55
0.63
Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17
JHARKHAND
0 0 0 0 0 0
0.56
1.1
1.42
1.66
1.95ODISHA
Commodities Traded:
Tomato, Paddy, Mango, Lady finger,
Mahua
Total APMC under e-NAM : 19
Online APMC : 16
APMC Act was repealed in 2006 in Bihar.
Newinitiatives

20. FPO/FPCs
No. of registered FPOs (since 2012)
• Bihar : 7 FPOs (Potato, Tomato, Cauliflower, Wheat,
Lentil, Onion)
• Jharkhand : 8 FPOs (Potato, Peas, Ginger, Cauliflower,
Cabbage, French Bean, Brinjal, Peas)
• Odisha : 5 FPOs (Cauliflower, Tomato, Cucumber,
Cabbage, Brinjal, Bitter gourd)
• Maharshtra has about 900 registered FPOs.
Newinitiatives

21. Key learnings and opportunities for
agricultural transformation …
• Complete ecosystem- policy, institutions & infrastructure
needed to bring innovation to transform rural economy in eastern India
• Diversification and intensification both are imperative
• Good governance in implementation of government programmes
like, Crop Insurance, Soil Health Card Scheme, eNAM, Irrigation scheme,
etc.
• Digital disruption must: automation of data capture-
production, price, assets- increase efficiency, reduce transaction cost, faster
delivery.
• Non-farm options: Primary value addition (storage, grading, pulping,
etc.) in agriculture, as well as non-agri sector for increasing purchasing
power to boost demand of value added food products.
Accelerating pace of rural transformation in
eastern states is compulsion, not a choice.

22. Thanks!