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 2001-06 to more than Rs 1,000 crore during 2006-11.

State Agricultural GDP was almost stagnant at Rs 32.5 billion during 1981-94 and its growth was negative in Ninth Five Year Plan (-1.4%) which turned positive in Tenth Five Year Plan (0.91%). During 2004-11, 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 2006-07.

But the state failed to maintain higher agriculture growth due to floods in 2007 and 2008, and drought in 2009 and 2010.

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 1983-94.

During 1983-94 Net State Agricultural Domestic product stagnated at Rs 32.5 billion (at 1980-81 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 2010-11

Fish production also increased from 0.027million tones in 2004-05 to 0.030 tones in 2010-11

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

Particulars Area

Water logged areas 0.4 million ha

Diara area 0.93 million ha

Alkaline soils 0.320 million ha

Tal area 0.10 million ha

Particulars 9th Five Year Plan

10th Five Year Plan

11th Five Year Plan

SGDP 02.90 04.00 10.93SAgGDP (-) 01.14 00.96 02.60

Growth in SGDP and SAgGDP in Bihar during 9th ,10th and 11th 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 @40 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

Period Bihar IndiaRural Urban Combine

dRural Urban Combined

1983-84 64.4 47.3 62.6 45.6 40.8 44.41993-94 56.6 40.8 55.1 37.3 32.4 36.02004-05 42.1 34.6 41.40 28.3 25.7 27.5Change in rural poverty (%)1983-1994 -7.8 -6.6 -7.5 -8.3 -8.4 -8.41994-2005 -14.5 -06.2 -13.7 -9.0 -6.7 -8.51983—2005 -22.3 -12.8 -21.2 -17.3 -15.1 -16.9Number of Poor persons in million1993-94 38 3182004-05 43 356

Caste Wise Proportion of BPL Households (%)

 Particular

BPL HouseholdsPatna Darbhanga

Forward Caste 17 32OBC (Other Backward Class) 65 35

SC (Scheduled Caste) 92 100

Total 40 41

Education Level of Family Members of BPL Households (%)

ParticularsBPL Households

Patna DarbhangaTotal Population (above 6 yrs) 162 188Illiterate 32 35Primary 22 24Middle 17 14Secondary 23 22Post Secondary 6 5

Per Capita Land and Tenurial Status of BPL Households

ParticularsBPL Households

Patna DarbhangaAverage Size of Landholding (in ha) 0.28 0.24Per capita land (in ha) 0.052 0.036

% of leased in of Operational holding 9.7 0

% of leased out of own land 21.7 1.3

Per Household Assets own by BPL Households

(Rs)

Particulars 

BPL HouseholdsPatna Darbhanga

Agriculture Assets 5449 334Domestic Assets 10384 4202Transport Assets 1597 1585Communication & Information Assets

1431 921

Total 18861 7041

Herd Size of Livestock on BPL Households ( per 100 Households)

Particular

BPL Households

PatnaDarbhang

aBuffalo 28 12Bullock 3 12Cow(local) 9 15Cow (improved) 6 0Cow (cross-bred) 19 0young stock cattle (<3 year) 22 15young stock buffalo (<3 year) 3 0Total Value (in Rs) 10368   3342

Type of Residential House of BPL Households (%)

Type of HouseBPL Households

Patna DarbhangaPucca 25 28.1Pucca-Kutcha 25 37.5Kutcha 50 34.4

Facility Availed by BPL Households (%)

 Particular

BPL Households

Patna Darbhanga

Toilet 19 6Electric Connection 59 6Tap Water Connection/HandPump 38 42Drinking water well 31 9

Occupation of Family members of BPL Households (%)

 Occupation

 

BPL HouseholdsPatna Darbhanga

Male Female Male FemaleFarming 15 1 7 4Farm Labour 6 3 0 3Non-Farm Labour 14 2 36 0salaried job/Monthly wage employee 14 0 6 0others 4 0 1 0No gainful employment 45 94 50 93Total 100 100 100 100

Caste Category-Wise Extent of migration in BPL Households (%)

 Particular

BPL HouseholdsPatna Darbhanga

Forward 50 100OBC 54 78SC/ST 0 33Total 34 70

Age-Wise Incidence of Migration and Their Age Wise Distribution in Households (%)

 Age

BPL HouseholdsPatna Darbhanga

Male Female Male FemaleTotal Population (Above 15 yrs)

58 58 71 58

Total Migrants (% to total population)

29.31 6.9 50.7 5.17

Below 20 17.65 0 13.89 33.3320 to 40 76.47 100 63.89 66.6740 to 60 5.88 0 22.22 0above 60 0 0 0 0

 Age

BPL HouseholdsPatna Darbhanga

with in state

outside state

with in state

outside state

Total Migrants 42.86 57.14 0 100Below 20 33.33 66.67 0 15.3820 to 40 47.06 52.94 0 64.140 to 60 0 100 0 20.51above 60 0 0 0 0

Destination of Migrants from Households(%)

Employment of Migrants at Destination Places (%)

Occupation BPL Households

Patna Darbhanga

Farming 0 0Farm Labour 0 0Non-Farm Labour 9.52 71.79Salaried Job/Monthly Wage Employee 61.9 15.38others 28.57 12.82

Source Wise per household loans of BPL Households

 Source of Borrowing

BPL HouseholdsPatna Darbhanga

Average Amount

(Rs)

No. of Borrower

Households (%)

Average Amount

(Rs)

No. of Borrower

Households (%)

Co-operative banks 94 3.1 0 0Commercial banks 3125 12.5 182 3Rural banks 4219 6.3 1364 9.1Friend & Relatives 313 3.1 909 6.1Shopkeeper 94 3.1 0 0Landlord 453 6.3 515 3Moneylender 234 6.3 3358 51.5Others 219 3.1 0 0

Proportion of Different Types of Loan on BPL Households (%)

 Purpose of Borrowing

BPL Households

Patna Darbhanga

Agriculture 57.1 4.2Education 0 0Marriage 7.1 8.3Consumption 35.7 87.5

Percentage of Households with saving Account (%)

 Agency/Sources

BPL Households

Patna Darbhanga

All Institutions 46.88 27.77

Commercial banks 53.33 22.22

Co-operative bank 0 11.11

Insurance (LIC,etc) 26.67 44.44

Post office 0 11.11

Others 20 26.22

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

THANK YOU …………………………

Any Questions?