AGRICULTURAL POLICY IN BIHAR: A POLICY

MATRIX IN A FEDERAL SYSTEM

EXECUTIVE SUMMARY

Background
Bihar endowed with copious supply of water and fecundity of soil, is
pregnant with every possibility of agricultural development but no
concerted and well co-ordinated effort has been made to exploit the
potentialities and gear them for achieving optimum production. Whatever
attempt has been made has been of ad-hoc nature and fragmentary and
fitful in character. In plans we get an evidence of scattered efforts to
harness resources for development of agriculture.

Bihar needs an agricultural policy urgently, vitally and necessarily. The

policy should be substantial and solid from technical angle of view. From
economic point of view it should be feasible and operable within the
bounds of possibility. Its operation and implementation should not vitiate
and downgrade the surroundings and the environment. It should use the
resources of the country in a way acceptable to and congenial and
salubrious for the society.

When we look deep into the genesis and outcome of the agricultural
policy of Bihar and Jharkhand, we find it suffers from what can be called
"ad-hocism". There is no co-ordinated and integrated policy formulated by
rational planning. The policy is piece - meal and short sighted having
different aspects unrelated to one another. If at all there is a relation, it is
not an organic relation but a mechanical one. The policy bears the
impress of the moment and these facts are supported by different studies,
which emphasized different aspects. A good policy fixes a goal and
enumerates several measures and means to achieve it. There is no
singleness of goal and no singleness of effort made as far as the
agricultural policy of Bihar is concerned.
Production is dependent on the quality of soil and cultivation of crops
should be dictated by this consideration. No planning is visible on this
score. The farmers plant crops not according to the kind of fertility
possessed by the soil, but according to their needs and resources. This
culminates in far and less than optimum utilization of resources. Further
the idea in the minds of the rulers of Bihar seems to be that agricultural
development supplies means for production of food crops as a result of
which 90 per cent of total resources remain locked up in the production of
food crops. Agricultural development should mean augmenting the
income of the farmers and the surest way to achieve this end is to go in
for the production of commercial crops, like soyabean, sunflower,
groundnut, etc. At the same time other activities should be undertaken in
the rural areas and the driving objection should be to increase the income
of the farmers. These activities are dairy farming, poultry, goat rearing,
fisheries, sericulture, mushroom cultivation, etc. Such a mindset is lacking
in the planners of Bihar. What is needed is the scale and dimension of
these operations. Real agricultural planning in Bihar should imply
qualitative change in the attitude of the people and increase in production
fuelled not by quantitative employment of resources, but by radical
change in the methods of production.

Objectives
Keeping in view the above background, the present study was assigned to
AER Centre for Bihar & Jharkhand by the Directorate of Economics &
Statistics, Ministry of Agriculture, Government of India with specific
themes in terms of following objectives:

i. To review the available material at the State level dealing with

policy interventions after the formation of the State.
ii. To identify important constraints and review the efforts made by the
State in the past to meet major challenges pertaining to agriculture
and allied activities.
 iii. To record the State's response to the already formulated National
Agricultural Policy.
iv. To bring out the State's concerns as well as to record the State's
views on the changing economic situation due to India's
involvement with the WTO.

v. To document the State's initiatives to meet the constraints and

problems arising out of India's WTO commitments.
vi. To discuss with the important stakeholders the requirements for for
mulation of a policy document at the State level in response
to challenges arising from WTO.
vii. To elaborate on the initiatives taken to meet the challenge of
diversification, technology, resource management and price policy
at the State level and;
viii. To assemble these views in the all of a meaningful policy
requirement matrix, relating problems/issues to Action Points
suggested/recommended and also trying to spell out the Agencies,
which should under take such actions.

Methodology
The methodology for the study is a thematic review of the existing
material at the State level and interviews with the stakeholders on crucial
issues. The State level exercises were taken into consideration. The
documents prepared by agro-climatic regional planning groups. Plan
documents both at the Centre and State levels were also reviewed.

At the next stage, interactions with important stakeholders of both the

states were held through Seminar and Workshops which gave certain
useful tips for arriving at a policy matrix.

Agricultural Development Scenario

Crop Economy
A survey of the production of rice, wheat, maize, pulses and oilseeds
discloses that no visible and vital changes have taken place in cropping
pattern from the first plan to eighth plan. The production of oilseeds has
been on decline in north Bihar. Virtually their production has been
abandoned and the production of new crops such as - soybean, sunflower
and groundnut has been taken up. There has been increasing use of
fertilizers and HYVs and this has resulted in the increase of wheat
acreage. The given cropping pattern has reached its highest point and it
can not be changed unless productivity and efficiency are increased.

The cropping pattern remains traditional and is same as it was in the past.
Some of the areas of Bihar are prone to flood and drought and this has a
great impact on the cropping pattern. The cropping pattern has to meet
the situation of insecurity and instability. The first condition in such a
situation is that the farmer has to meet the risk involved. He wants to
survive in such a condition. Hence, he adopts inter - cropping. Two crops
are produced at the same time and in the same field. Rice and tobacco
are grown in Samastipur. Chillies are grown with vegetables. In other
places, rice is grown with vegetables.

Live Stock Economy

The production of food in Bihar is not enough to feed the people. Per
capita food production should be 210 kg., but Bihar produced only 143 kg.
in 1996-97. There is still a deficiency of 3 million tonnes in food
production.

Animal husbandry plays an important role in the rural economy of Bihar.

The growing children and women get gainful employment from this
sector. The marginal farmers, the agricultural labours and the landless
persons easily keep and maintain goats, pigs and sheep. Cows, buffalloes,
horses, donkeys and ponies are kept in different parts of Bihar. Between
1951 and 1987, there was great increase in the population of livestock. It
was 264.5 lakhs in 1951 but it increased to 434.49 lakhs in 1987. This
shows that the presence of livestock on the resources of land has shot up
considerably. The cattle population too, which consists of cows and oxes,
has also risen between 1951 and 1990. It was 153 lakhs in 1951 but it
reached 171 lakhs in 1990. The working cattle population was 75.3 lakhs
in 1951. It increased to 78.9 lakhs in 1961, but came down to 57 lakhs in
1987. This had a great impact on the nutritional diet of the people.

Dairy farming has been especially important for small and marginal
farmers and landless labours. The Government of Bihar has set up several
dairy plants to supply milk to the people. But there was marketing
difficulty. The producers of milk are faced with task of carrying milk to the
town. Curd, butter, ghee, cheese, etc., are made from the milk. Goats
occupy an important and regular place in the lives of the farming
community. Rearing of goats is generally done by particular caste and
community. Similar is the case with the sheep farming which is a
monopoly of particular caste and community termed as shepherd. Piggery
is not wide spread but certain caste and community keep pigs. The
slaughter of these animals is a source of hides and skins. The meat
secured from slaughter homes needs proper transport and refrigeration.

Fishery is an important part of the agriculture of the state. Important

sources are rivers and streams of North Bihar. In Jharkhand fishes are
maintained in the ponds and tanks and, hence, pisciculture has
developed. In fact, there has been no development of fishing industry in
Bihar inspite of the fact that the land of Bihar is crisscrossed by several
rivers, rivulets and brook. These days, it is Andhra Pradesh which has
become the source of supply of fishes in the state. The Government of
Bihar has put animal husbandry and poultry sector in the low priority
endeavour. The developments of animal husbandry, poultry and fishery
are absolutely essential for the overall development of Bihar's economy.

Horticulture Economy
If the population of Bihar is taken into consideration, 34.05 lakh tonnes of
fruits are required and 73 lakh tonnes of vegetables are required to have
a balanced diet of the people. At present the estimated production of
fruits is 29.25 lakh tonnes. Hence, there is a shortfall of 4.80 lakh tonnes.

The production of potato is 35 lakh tonnes and that of other vegetables is

53.19 lakh tonnes. Therefore, there is no shortfall on the vegetable front.
A sum of Rs. 20 crores has been allocated for the 7th plan. Further, a sum
of Rs. 5.83 crores had been earmarked for the annual plans of 1999 -
2000. 2.61 lakh hectares were used for producing fruit crops at the
beginning of 8th plan. The vegetable production was in 5.11 lakh hectares
and the production of potato was carried on in 3 lakh hectares. It was
proposed to raise the production of fruit to 28.90 lakh tonnes in 1992-93.
Further, it was targeted to produce 31.70 lakh tonnes by the end of the
8th plan.

Development During Plans

The development of agriculture in Bihar has been gauged in the light of
the parameters like (i) Land utilization pattern, (ii) Distribution of land
holdings, (iii) Area under crops, (iv) Area under HYV, (v) Consumption of
fertilizers, (vi) Source - wise irrigation, and (vii) Productivity of crops.

Despite continuous decline in net cultivated area and gross cultivated

area in Bihar since 1969 - 70, there has been a steady growth in
production and productivity of most of the principal crops. However, it
couldn't have matched the all - India level (average) in regard to all main
crops (except maize and pulses). It may further be stated that the
productivity trend of a number of major crops in Bihar is not upto the
mark on account of factors like, disproportionate use of chemical
fertilizers, unavailability of sufficient irrigation water in time due to poor
maintenance of irrigation structures and ignorance of farmers regarding
modern methods of cultivation.
The aim of all plans taken together was to increase food production and
make it available to the people. Here we find that thinking of the
government was that food production could be increased by having a wide
network of organization. Administration was the main form. The
instrument of administration which had to increase the food production
was bureaucracy not the people. It was believed that bureaucracy was
sufficient and effective in helping the people to increase food production
and productivity.

With the passing of every Five Year Plan period, the amounts invested for
the development of agricultural sector went on increasing showing almost
double jump or even less, but the condition of the agricultural
performance scenario didn't show encouraging achievements.

Government's Initiatives
The governments of both Bihar and Jharkhand have taken several
initiatives to achieve rapid agricultural development. One of the measures
has been to organize in every district Kisan Mela and Seminars. This has
been started from the year 1996 - 97. In such fairs and seminars
agricultural scientists come and acquaint the farmers with the latest and
most modern technique which can be used for agricultural production.
Fairs and seminars are held to import latest agricultural technical training.
The major initiateives which have been taken so far are : Integrated
Cereal Development Programme (ICDP), National Pulses Development
Programme, Jute Development Progrmme, Oilseeds Production
Programme (OPP), Distribution of Small Tractors, Accelerated Under
Tecnical Mission for Maize, Agricultural Credit, Integrated Pest
Management (IPM), Farmers' Training-Cum-Agricultural Fair, Agricultural
Science Centres, State Agricultural Regions (Sections), Agricultural
Engineering, Horticultural Sector , Establishment of Cashew nut, Scheme
of Litchi Develoment, Makhana Production, Bee Rearing, Establishment of
Cold Storage, Export, Procurement of Food Grains Through Co-opertives.
Initiatives for WTO
Agreement on agriculture seeks binding commitments from countries
which have joined the WTO. The commitments are to operate in various
fields. Discipline is imposed on the regime of subsidies. The non - tariff
barriers are to be increasingly tariffied and thus open the door for
enhanced market access. Further if imports of primary agricultural
commodities are less than 3 % of the domestic consumption it is
mandatory that minimum access opportunities of specified order be
provided. Again, discipline on public stockholding of grains for food
security has to be maintained. This discipline shall be in consonance with
the criteria laid down by the WTO. Intellectual property in the sphere of
agriculture has to be protected and the rights therein have to
bestrengthened the subsidy discipline is introduced in order to regulate
and control the support given to the agricultural sector. It is the concept
of Aggregate Measurement of Support (AMS) which forms the basis of the
calculation. Calculation has to be made for each product. All these
provisions do not seem to apply to Bihar. They apply to other states which
are exporting states. Bihar is an importing state and is not a self sufficient
in matters of agricultural production. It has no surplus to export.

Hence, many of the provisions of requirements of agreement with WTO

are irrelevant for this state. The agreement requires to reduce domestic
support by the levels specified in the schedule of commitments. Reduction
is meant to affect exports and it has no value for Bihar because Bihar
does not export agricultural commodities to the foreign countries.

Again Bihar is listless, apathetic and indifferent to the impact of WTO. The
government needs to be awakened and aroused to this aspect.

Principal Constraints in Bihar & Jharkhand

Constraints in Bihar and Jharkhand differ widely because of sharp
differences in geography of the two states. In Bihar flood is a sure and
annual visitor which damages and destroys crops and agricultural
production activities. Jharkhand is totally free from this source and aspect
of devastation.

Bihar suffers from drought on many occasions and in many places and
this drought reduces or destroys the agricultural production. This
phenomenon or constraint is present in Jharkhand also. The land in Bihar
is fertile and can give good yield in favourable circumstances. This is not
the case with the state of Jharkhand, where the soil is rocky and stony and
terrain is inhabitable. Irrigation too cannot be carried on in efficacious way
and everywhere. These act as a great constraint. If Bihar has agricultural
produce, Jharkhand has forest produce and forest can also be included in
the widest purview of agriculture.

The principal constraints to agricultural development in both of the states

can be grouped under the heads like : (i) Social and Structural (ii)
Organizational (iii) Technological.

Suggested Measures for WTO Challenges

It is true that the Government of Bihar is unmindful of the implications of
the WTO agreement and its impact on the economy of Bihar simply
because the Government of Bihar is indifferent to the implications and
impact. It does not mean that Bihar's economy will remain unaffected.
The WTO agreement envisages the gradual elimination of government
system and reduction and ultimately doing away with the subsidies. Under
these circumstances the imports will fill the market and the domestic
industry of Bihar will have to eventually cope and contain with it. After
the elimination of subsidies Bihar's agriculture will have to be competitive.
Hence both the defence mechanism and aggressive export promotion will
have to be adopted.

Bihar can export mango and mango products also. There are not many
international players. Very few countries of the world produce mangos.
Hence, there is less competition but this does not obviate the necessity of
producing mangos at a cheap rate. It is a highly perishable commodity.
Special care has to be taken in transporting, it. Mangos can be converted
into jam, jelly, juice, pickles which are not perishable and which remain
fresh and tasteful even after several months and even years.

Mushroom is also a highly nutritious food item and it is in great demand at

both the levels - national and international. Both Bihar and Jharkhand
produce it but the scale is so small and insignificant that it can not be
exported to meet the demands of the foreign buyers. Again if a small
quality is exported the transport cost will be very high. Hence, Bihar and
Jharkhand must organize its production on a co-operative basis having
central marketing mechanism.

Agricultural Policy Matrix & Prescriptions

The repercussions and consequences of WTO Agreement on Agriculture
require precise and comprehensive delineation and identification to
secure appropriate and fruitful response from the policy-makers. It is
pertinent to tune the agricultural development in the perspective of
challenges emerging only out of WTO/ liberlisation policies. How far the
agricultural commodity could be made tradeable especially from global
point of view is a point of concern.

A comparative picture of the area and yield of important fruits and

vegetables indicates that there is greater potentiality of production. The
state has a remarkable position (third among the states) in area,
production and yield of mango. In case of litchi, Bihar stands to be the
largest growing state accounting for 70-80 per cent of the total production
in the country. Muzaffarfur, Vaishalli, Samastipur, Champaran are the
premier districts of producers of litchi. Banana and Pineapple also
constitute the other important fruits, grown in the state.

An overview of the policy initiatives needed for various agricultural sub-

sectors for Bihar and Jharkhand is being annexed.
Action Points
In the light of the above, the main objectives of the agricultural policy of
Bihar may be fixed as below :
I. To achieve a growth rate of 5 per cent per annum.
II. Growth to be fuelled by efficient use of resources.
III. Growth to be wedded to righteousness and fairness and equity.
IV. Growth infused with the spirit of conservation of water, soil and
biodiversity.
V. To cope with and handle the demanding and stimulating situation
created by the provisions of WTO agreement owing to which
quantitative restrictions have been removed on April, 2001, import
of agricultural commodities has surged and spurted and gauntlet
has been thrown to the farmers of India in general and farmers of
Bihar in particular.
VI. To cater to the needs of small and marginal farmers who constitute
80 per cent of the population of farming community.
VII. Growth to be activated and sparked off by demand. Further it should
provide what is required or desired by the domestic market.
VIII. It must harvest full advantages and benefits swirling and surging
from liberalization and globalization.
IX. Growth to be achieved without debasement decadence and
degeneracy of environment.
X. Agriculture to be made more paying, more profitable and more self-
procuring, and at the same time, it should assume aggressive,
ambitious and combative character.
XI. It should aim not only at increase in production and productivity, but
also at improvement in the standard of living of all the farmers -
particularly small and marginal farmers.
XII. Other allied and complementary sectors should be integrated with
agriculture so that each shall reinvigorate the other, resulting in
mutual aggrandizement.
XIII. Emphasis should be put on shifting to high value commodities but
perishable in nature. Aquaculture fisheries and marine products
should form an integral and invariable part of the agriculture policy
of Bihar. Shrimp production and prawn production should be
undertaken on a large scale.
 An overview of the policy initiatives required for various agricultural sub - sector is being presented as
hereunder :

Agricultural Policy Matrix

Sub – Sector Required Policy Initiatives Justification
• The state has about 40 percent of cultivated
area under dry land farming and the
• Dry land Farming
agricultural production can only be
stabilized /enhanced with the promotion of
• Improvement in the quality of agricultural dry land cultivation.
land by way of making a combination of
chemical, biological and physical treatments
• About 10.3 lakh ha. are under different
Land Resources of the affected lands.
problematic soils, comprising saline and
alkaline soil (4.14 lakh ha.), diara (5.16 lakh
• Re – orientation of land reform measures ha.) and tal (1.0 lakh ha.)
like, computerization of land records,
issuance of records of right, consolidation of
• Due to prevalence of feudal structure in
land holdings, etc.
agriculture, land reforms measures remained
always back seated.
• Out of about 9 lakh ha. of flood affected area
• Tripartite talks/dialogue between nearly 8 lakh ha. is in north Bihar only and
Governments of Nepal, Bihar and India floods are mostly caused by rivers of Nepal.
should be arranged to check the flood The total flood damages in the state are
Water
devastation, almost every year in the states. around 12 per cent of national damages.
Resources,
Irrigation &
Flood control. • Untapped potential of ground water (76.61 • Assured irrigation is the prime input for
%) should be created and the created agricultural development and the ground
potential (23.39 %) should be utilized water has the potentiality to irrigate around
properly. 34.80 lakh ha. (77.95 % of ultimate irrigation
potential).

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 • The only breeding service available to the
• Cattle breeding and production of quality dairy farmers is A1 Centers (1401) in the DCS
animals should be promoted. and of which only around 100 are functional.
Since 1997 and onwards, most of them have
become non – operational.

• As far the supply of green fodder or of seeds

• Adequate knowledge & training be provided is concerned, the state federation had two
Dairy to the farmers for up-keeping the cattle cattle feed plants (100 MT capacity of each
along with ensuring the green fodder. unit) and a forage seed production form, but
all have ceased to operate.

• The state is deficit in terms of milk products

• To capture the international & domestic whereas it is surplus in terms of milk
markets, prospects of value addition of the production. Thus, there is abundant scope to
produce (milk) should be explored. add value to it, which will substantially add to
the income of dairy farmers.
Livestock • Poultry feed mixing units, breeding units for • As there is no distinct breed of goat in Bihar,
supply of good quality of sheep, goat and so the main strategy should be adopted to
piglets and slaughter houses / meat improve the production potential of goats by
processing units/bacon factory be use of improved bucks. Besides, out of 3
established. poultry breeding farms and hatcheries in the
state, only one (at Patna) is functioning.
• Training and skill development programme
be launched for up-keeping and processing • The ill-equipped and poorly maintained
of animals / birds in a good hygienic slaughter houses are a threat, a hazard to
condition. public heath. It is due to the fact that the
wastage in the butcheries is estimated at 15
• Marketing development programme be per cent. Thus, this sub – sector requires
initiated. immediate modernization.

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 • The marketing efficiency of the livestock
farming or any other entirely depends on the
marketing structure – degree of
concentration of buyers and sellers, market
intelligence, market integration, etc., which
do not exist in the state in totality. Thus, to
provide a good marketing infrastructure in
the state marketing development programme
is inevitable.
• Against a demand of 5.47 lakh tones of fish,
only 2.40 lakh tones are produced in the
state. Besides, nearly 3.38 lakh ha. low lying
areas is yet to be developed for aquaculture
• Government owned water ponds / tanks are
activities. Apart from the above, the existing
immediately leased out for long period of
leasing policy of the state government is not
time to the skilled educated entrepreneurs.
favourable to prospective educated
unemployed youths.
• Mechanism to evolve better coordination
between the fisheries department and the
• The declining refinance flow and feed back
financing agencies be developed for
received from the field level (NABARD)
Fisheries identification of borrowers, appraisal,
indicates that the ground level credit flow has
sanction, implementation and the follow –
decelerated and there is urgent need for
up of various fisheries schemes.
taking up suitable remedial measures.
• At least one fish seed production centre soil
• The present fish seed production of the
and water testing disease diagnostic
government and the private sector is
research centre may be established in and
inadequate on the one hand and on the
around the potential belts.
other, the soil and water testing facility is the
basic requirement for scientific and
commercial aquaculture.

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 • Aggressive campaigning with forward and
backward linkages should be launched to
cover the existing and potential zones /
areas of banana, mango, litchi, tea,
medicinal plants, papaya, guava, mushroom • The state is considered as one of the major
and others. producers of fruits in the country, the most
conducive agro-climatic suitability and future
• Adequate technical staff, skilled labour, prospects. This sector holds immense
irrigation facility, etc. be made available to potential for promotion and development in
ensure required technical know – how, the state. The state is in deficit of 4.80 lakh
planting materials, etc. tones of fruits, which provides nutritional
security, employment generation and wide
• Schemes for promotion of processing and scope for meaningful diversification for
post – harvest management be seriously sustainable agriculture.
Plantation and supported and executed.
Horticulture • Though Bihar is one of the leading producers
• Organized market centres with provision of of fruits and vegetables, it is lagging behind
market information dissemination may be in processing of perishable horticultural
established in the major horticultural zones. produce. The number of Fruits and
Necessary physical infrastructure like walk Vegetables Processing Industries (FVPIs) is
in – cold storage, market yards and truck found to be grossly inadequate. The number
terminals may be provided in these market of FVPIs licensed in the state is 58 whereas in
centres to facilitate convenient marketing of Maharashtra it is 934. It is to be pointed out
the perishables. here that Maharashtra’s total annual
production of fruits and vegetables is almost
• Adoption of horticulture based cropping equal to Bihar.
system like agro-horticultural system,
agrisylvi horticultural system; sylvipastoral
system, etc. for sustainable development of
dry and wastelands needs to be promoted.

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