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    Unleashing Bihar's Agriculture Potential: Sources and Drivers of Agriculture Growth

    Hoda, Anwarul; Rajkhowa, Pallavi; Gulati, Ashok | March 2017
    Abstract
    Bihar's agricultural development in the latest 10 years between 2005-06 and 2014-15, presents a mixed picture. Agriculture growth was around 4.7 per cent, which was above the national average of 3.6 per cent and in the latest five years, its performance was even more commendable, with an average annual growth rate of 7.1 per cent. However, agriculture productivity of two of its major crops, rice and wheat, is lower than the national average, despite the relatively high private investment in yield augmenting inputs such as fertilisers, certified seeds, tube wells and farm machines. Bihar's agriculture has diversified impressively through dairy development although productivity in milk production is lagging behind other major milk producing states, but poultry development has not taken off. In this paper, we study the composition, sources and drivers of agricultural growth in Bihar with a view to identifying the factors that explain the paradox of low agricultural productivity and high use of productivity augmenting inputs. The study finds that poor public investment in power, all-weather roads and marketing infrastructure, have constrained agriculture in Bihar. In particular, deficiencies in the power infrastructure have resulted in high dependency on diesel for pumping out groundwater for irrigation; this, along with soaring petroleum prices, has depressed returns from cultivation of crops. Further, the proportion of surfaced roads in the state is one of the lowest in the country and needs attention in order to link farmers to markets. Another major difficulty that farmers in Bihar face is the lack of marketing infrastructure, resulting in their inability to reap the price incentives given by the Government of India in the form of minimum support price. Livestock development has not achieved its potential because of strategic deficiencies. In dairy, productivity has remained low because germ plasm from superior breeds has not been used. In poultry, the culture of contract farming involving large integrator companies has not yet been adopted. In the light of these findings, the study makes five principal recommendations to stimulate agricultural growth and productivity in the state, viz., improve the quality and quantity of rural power supply by strengthening transmission and distribution and obtaining separation of feeders for irrigation, increase in the intensity of surfaced roads in rural areas, improve procurement and marketing infrastructure, improve health and reproduction management of dairy animals and obtain a quantum increase in poultry by employing the integrator model as has been done in states like Andhra Pradesh and Odisha.
    Citation
    Hoda, Anwarul; Rajkhowa, Pallavi; Gulati, Ashok. 2017. Unleashing Bihar's Agriculture Potential: Sources and Drivers of Agriculture Growth. © Indian Council for Research on International Economic Relations. http://hdl.handle.net/11540/7027.
    Keywords
    Agribusiness
    Agroindustry
    Agricultural institutes
    Agricultural development
    Joint projects
    Development models
    Industrial policy
    Education
    Social Development
    Sustainable agriculture
    Commercial agriculture
    Agricultural And Rural Development
    Asian Development Bank
    Water Resources Development
    Sustainable Development
    Food Supply
    Economic development
    New agricultural enterprises
    Cooperative agriculture
    Government policy
    Entrepreneurship
    Communication in rural development
    Development banks
    Rural land use
    Land use
    Natural resource
    Water supply
    Mill
    Natural resource
    Water
    Irrigation systems
    Show allCollapse
    Citable URI
    http://hdl.handle.net/11540/7027
    Metadata
    Show full item record
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    Working_Paper_336.pdf (2.184Mb)
    Author
    Hoda, Anwarul
    Rajkhowa, Pallavi
    Gulati, Ashok
    Theme
    Agriculture
    Development

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    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise