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Rural transformation in Eastern India: Still lagging behind?
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Rural transformation in Eastern India: Still lagging behind?

  1. March2015 Sciencewithahumanface About ICRISAT: www.icrisat.org ICRISAT’s scientific information: http://EXPLOREit.icrisat.org Rural transformation in Eastern India: Still lagging behind? Ranjit Kumar, Uttam Deb, Cynthia Bantilan and Umesh Singh Yadav International Crops Research Institute for the Semi-Arid Tropics, India Transformation with paradox • Bihar, Jharkhand and Odisha states- fast growing economies • Still, about 85% of total population (26.7 million) staying back in rural area and still growing • Rural population mostly depending on farm sector for their livelihood, but farm size too small • Abode of resource-poor people, but dismal presence of infrastructure and service delivery • Pace of transformation fast but needs further boost to alleviate mass poverty in the region. Objectives • To examine the change in labour force and their source of livelihood in the region in recent years • To take stock of the enabling environment to give impetus for rapid rural transformation. Rising income, yet lagging behind 0 10000 20000 30000 40000 50000 60000 70000 80000 PercapitaincomeinINR (2004-05prices) 13 million Bihar Jharkhand Odisha 32million 10 million No of rural poor in 2011-12 INDIA 2004-05 2013-14 Rural income also rising, but inequality persists 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 0.0 0.2 0.4 0.6 0.8 1.0 PercentofIncome Percent of PopulaƟon Equality 2011-12 2004-05 Gini raƟo: ~ 0.910 Difference in monthly per capita expenditure for top & bottom 20% of rural population. INR 2224 (2011/12) INR 1075 (2004/05) • Importance of agriculture as self-employed or labour wage increased- Not by choice, but by default • Non-farm sector not expanding fast to absorb rural labour. 18 2009-10 27 SE-Agr SE-Non-Agr Ag-Lab Oth-Lab Others 44 17 2012-13 Reducing farm-size, but ever increasing farm- labourers: Double whammy? States 2010-11 Ratio of increase in farm labor to non-farm labor (2011 over 2001) Share of marginal farmers, <1ha (MF) Avg. size of operational land holding with MF (ha) Bihar 91% 0.25 (0.43) 2.36 Jharkhand 68% 0.41 (1.17) 1.94 Odisha 72% 0.57 (1.15) 1.73 All India 67% 0.39 (1.23) 2.50 Within parentheses are overall avg. size of holding. • Farm size of most of the farmers very small • Viability of farm providing livelihood- questionable • No. of farm-labours increased about 200% more than non-farm labour in rural area of eastern region • Crossroads- unprepared non-farm sector, low income from farming & rising dependence on farm. Diversifying income source • Each state has its own comparative advantages local preference • Bihar: Cereals (maize, wheat), oilseeds (R/M) and milk • Jharkhand: Pulses, oilseeds, FV, egg, fish forestry • Odisha: Pulses, FV, milk, egg, fish meat. -15 -10 -5 0 5 10 15 20 Annual growth in value of output during% 2004-05 to 2010-11 at 2004-05 constant prices Bihar Jharkhand Odisha Disproportionate investment in infrastructure • Weak institutions and poor infrastructure • escalating the cost of transactions, reducing the farm profitability. Conclusion • Rural transformation in eastern India requires more aggressive investment in infrastructure, institutions development and service delivery • Further, more innovations required in rural area to catalyse the employment opportunities- supplementing and complementing the agriculture allied sectors. VILLAGE DYNAMICS IN SOUTH ASIA Funding support: Bill Melinda Gates Foundation Non-farm sector: Not yet ready Rural households’ employment scenario in Eastern India, % 15 8 6 5 0.5 % of populaƟon % of net sown area % of surface road % of agri. Credit % electricity cons in agri Share of 3 states in India
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