K.M.Singh, R.K.P.Singh, M.S.Meena and Abhay Kumar ICAR Research Complex for Eastern Region, Patna An Empirical Exploration of Rural Poverty in Bihar Presentation at Pre-Annual Review Meeting Workshop (6-7 September 2011) of BMGF funded project “Tracking Change in Rural Poverty in Household and Village Economies in South Asia” at ICRISAT, Hyderabad

Background  Bihar is the third largest state with respect to population and seventh in terms of area in India.  Agriculture is still an important sector in Bihar since it contributes about 16 per cent to State Gross Domestic Product and provides employment to about 70 per cent of working force in rural area.  The state is characterized by small land holders.  More than 90 per cent of farm householders are marginal with less than 1 ha land but own about 44 per cent of cultivated land in Bihar.  Agriculture sector experienced a drastic change with respect to public investment, use of inputs, extension activities and crop- milk-fish production in recent years.

 State government assigned priority to the sector through providing fund to this sector by increasing annual average budget allocation from less than Rs 200 crore during to more than Rs 1,000 crore during  State Agricultural GDP was almost stagnant at Rs 32.5 billion during and its growth was negative in Ninth Five Year Plan (-1.4%) which turned positive in Tenth Five Year Plan (0.91%). During , State AgGDP grew at the annual growth rate of 2.7 per cent.  However, State Gross Domestic Product recorded growth of 10.9 per cent during the period which was higher than corresponding growth achieved at national level.  State agriculture sector achieved spectacular growth of 31 per cent in the year

 But the state failed to maintain higher agriculture growth due to floods in 2007 and 2008, and drought in 2009 and  Despite severe drought, the state recorded the food grain production of 125 lakh tonnes and milk production of 63 lakh tonnes in 2010, indicating sustainability in agricultural production in Bihar.  There was almost no growth in agriculture sector in Bihar during  During Net State Agricultural Domestic product stagnated at Rs 32.5 billion (at prices).  Per Capita income increased by only Rs 31 during the period i.e. from Rs 1003 (1983) to Rs.1034 (1994)  Agricultural production showed increasing trend during last five years.

 Milk production increased from 3.0 million tonnes in 2004 to 6.3 million tones as  Fish production also increased from 0.027million tones in to tones in  Bihar supports 8.8 percent population of the country with only 2.8 per cent of land mass

 About 69 per cent of geographical area is under cultivation but about one- third of geographical area faces various problems ParticularsArea Water logged areas0.4 million ha Diara area0.93 million ha Alkaline soils0.320 million ha Tal area0.10 million ha

Particulars 9 th Five Year Plan 10 th Five Year Plan 11 th Five Year Plan SGDP SAgGDP(-) Growth in SGDP and SAgGDP in Bihar during 9 th,10 th and 11 th five year plans

The Study  Information generated under the project “Tracking Change in Rural Poverty in Household and Village Economies in South Asia” used.  Multi-stage stratified random sampling technique used for selection of districts, blocks, villages and respondent households from two districts (Patna and Darbhanga) from two contrasting agro-ecological situations.  Two blocks; one each from each sample district and two villages from each block were selected randomly. Thus, the sample consisted of 160 households from each sample village.  Information on various socio-economic aspects collected through panel interview by Resident Investigators.  Information relating to social class, education level, asset, livestock, migration, employment pattern, housing, and drinking water of poor households were considered for meaningful conclusions.  Current study is based on the information collected from 65 Below Poverty Line (BPL) households of four villages of Bihar.

INCIDENCE OF POVERTY IN BIHAR VRS INDIA DURING LAST 30 YEARS PeriodBiharIndia RuralUrbanCombinedRuralUrbanCombined Change in rural poverty (%) — Number of Poor persons in million

Caste Wise Proportion of BPL Households (%) Particular BPL Households PatnaDarbhanga Forward Caste1732 OBC (Other Backward Class)6535 SC (Scheduled Caste)92100 Total4041

Education Level of Family Members of BPL Households (%) Particulars BPL Households PatnaDarbhanga Total Population (above 6 yrs) Illiterate3235 Primary2224 Middle1714 Secondary2322 Post Secondary65

Per Capita Land and Tenurial Status of BPL Households Particulars BPL Households PatnaDarbhanga Average Size of Landholding (in ha) Per capita land (in ha) % of leased in of Operational holding9.70 % of leased out of own land

Per Household Assets own by BPL Households (Rs) Particulars BPL Households PatnaDarbhanga Agriculture Assets Domestic Assets Transport Assets Communication & Information Assets Total

Herd Size of Livestock on BPL Households ( per 100 Households) Particular BPL Households Patna Darbhang a Buffalo2812 Bullock312 Cow(local)915 Cow (improved)60 Cow (cross-bred)190 young stock cattle (<3 year)2215 young stock buffalo (<3 year)30 Total Value (in Rs)

Type of Residential House of BPL Households (%) Type of House BPL Households PatnaDarbhanga Pucca Pucca-Kutcha Kutcha5034.4

Facility Availed by BPL Households (%) Particular BPL Households PatnaDarbhanga Toilet196 Electric Connection596 Tap Water Connection/HandPump3842 Drinking water well319

Occupation of Family members of BPL Households (%) Occupation BPL Households PatnaDarbhanga MaleFemaleMaleFemale Farming15174 Farm Labour6303 Non-Farm Labour salaried job/Monthly wage employee14060 others4010 No gainful employment Total100

Caste Category-Wise Extent of migration in BPL Households (%) Particular BPL Households PatnaDarbhanga Forward50100 OBC5478 SC/ST033 Total3470

Age-Wise Incidence of Migration and Their Age Wise Distribution in Households (%) Age BPL Households PatnaDarbhanga MaleFemaleMaleFemale Total Population (Above 15 yrs) Total Migrants (% to total population) Below to to above

Age BPL Households PatnaDarbhanga with in state outside state with in state outside state Total Migrants Below to to above Destination of Migrants from Households (%)

Employment of Migrants at Destination Places (%) Occupation BPL Households PatnaDarbhanga Farming00 Farm Labour00 Non-Farm Labour Salaried Job/Monthly Wage Employee others

Source Wise per household loans of BPL Households Source of Borrowing BPL Households PatnaDarbhanga Average Amount (Rs) No. of Borrower Households (%) Average Amount (Rs) No. of Borrower Households (%) Co-operative banks Commercial banks Rural banks Friend & Relatives Shopkeeper Landlord Moneylender Others

Proportion of Different Types of Loan on BPL Households (%) Purpose of Borrowing BPL Households PatnaDarbhanga Agriculture Education00 Marriage Consumption

Percentage of Households with saving Account (%) Agency/Sources BPL Households PatnaDarbhanga All Institutions Commercial banks Co-operative bank Insurance (LIC,etc) Post office Others

CONCLUSIONS  Bihar agriculture was stagnant in eighties and early nineties and observed poor growth up to tenth five year plan.  In eleventh five year plan, there has been growth in agriculture sector in Bihar.  During last 20 years poverty has declined by more than 14 percent but number of poor persons increased during the period.  On the basis of analysis of household level data of VDS villages, it may be inferred that the education, land and asset poverty have been prevalent in Bihar villages.

CONCLUSIONS  Landlessness and low per capita land are also causing poverty in Bihar  The majority of poor persons are getting employment in non-farm sector and migration is main strategy for maintaining livelihood of poor households in Bihar,  Majority of persons who migrated out-side state and were engaged mainly in non-farm sector.  Their access to electricity, improved living condition and sanitation has been very low which may be the cause of their poor health.

CONCLUSIONS  Despite various programmes of improving access to financial institutions, the majority of poor households of Bihar, particularly of less developed area are still dependants on money lenders for credit facilities.  Various poverty alleviation programmes have not been effective in reduction of poverty up to desired level in Bihar.  Hence, there is an urgent need to have holistic approach for improving various social and economic dimensions of state for faster reduction in poverty in Bihar

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