Agriculture is a significant part of the economy of India, both in terms of GDP contribution and as a source of employment for most of the country’s people. With India already being one of the world’s greatest agricultural producers in value, this industry is ripe for growth. It accounts for around 17% of total GDP and employs more than 60% of the population, Bihar is in the list of top agricultural states of India. Agriculture is essential to the Bihar economy. More than 80% of rural families rely on agriculture. Over the last few decades, Bihar`s agriculture has been overgrown. Let’s look at some examples from the agricultural sector and allied sector examples.
Agricultural Sector of Bihar on the Eve of Independence
The economy in Bihar centres on agriculture, or it is an agricultural economy. Agriculture and agricultural revenues accounted for 95 percent of the GDP before independence. It’s worth noting that approximately 85 percent of the population lived in villages, with agriculture serving as their sole source of income. However, the state of the Indian economy in terms of agriculture in Bihar on the eve of independence was depressing. While being the most critical sector, agriculture was experiencing economic decline and stagnant.
Changes in agriculture have resulted in the following:
- Extreme sensitivity
- A lack of productivity
A reaction to any event involving changes in agricultural elements refers to significant risk. For example, low output and effective crop failure rates will be below if the country receives less than a month’s worth of rain. Despite having a vast area to cultivate, low production levels were observed, and output levels fell.
Here are some elements that contribute to the agricultural sector’s stagnation.
- The zamindari system, which requires farmers to work and collect rent as a levy regardless of the conditions, was hurting the Indian economy.
- Agriculture developed due to a lack of agricultural resources.
- The commercialisation of agriculture entailed shifting from producing things for personal consumption to making goods for sale. Mediators hampered farmers’ economic conditions, resulting in agricultural sector stagnation.
History of the agricultural declination of Bihar economy
Let us see how the agricultural structure of the Bihar economy faced challenges during the independence of India, being one of the main agricultural producing states of the country.
Fragmented Land Ownership
The Bihar economy used to be in an agro-state on the eve of independence. Yet, despite being a significant source of income,the agriculture sector of Bihar and other states of India was rapidly declining. Land owned by multiple individuals was one of the main reasons for its dispersion, making agriculture even more difficult.
Outdated Technology
Even after India’s independence, the agricultural sector in Bihar continued to use outdated equipment and procedures. There was a shortage of machines to help reduce human resources, and shortage of growth-enhancing chemicals like fertilisers.
Low Productivity
The total output per hectare of land was notably low due to the lack of new approaches and fragmented ownership of cultivated areas. As a result, production in the agricultural sector of Bihar was dropping, wreaking havoc on the country’s economy.
Arguing Among Landowners and Cultivators
The long-running dispute between landlords and farmers of Bihar was another factor in the agriculture sector’s deterioration on the eve of independence. Landowners never paid for the cultivation of their land; instead, they shared the harvest. As a result, cultivators were responsible for producing a specific rent to their landowners and the total production costs. It had a significant financial impact on growers, resulting in a long-running dispute between the two parties.
Dependence on Rain
Due to lack of new methods and valuable equipment, the agricultural sector of Bihar heavily relied on rainfall. High rainfall resulted in higher productivity, but low rainfall resulted in insufficient output.
Cultivation for Self
Cultivation for self-sufficiency farming was also a significant factor in the decline of the agricultural sector of Bihar. Such an agricultural practice focused solely on self-consumption and rather than selling it in markets caused severe instability.
A Brief Note on Bihar’s Allied Sector
In Bihar,the allied sector is an industry that is reliant on agricultural activities and has an impact on the agricultural sector’s outcome. Crop production and natural resource livestock are dealt with in the allied sector. Agro-allied sectors such as cattle, fishery, horticulture, and sericulture have made substantial and growing contributions. Horticulture is an important component of the allied agriculture sector’s development. In 1979-80, it got separated from the Department of Agriculture. The area under horticultural crops is rising day by day due to the beneficiary initiatives
A brief note on allied sectors and allied sector examples
The allied sector is defined as a sector that depends on agricultural activity in many ways and impacts the farm sector’s outcome. Livestock ( dairy, sheep, goat, poultry, and piggery), fisheries (marine, inland, and aquafarming), horticulture ( fruits, vegetables, flowers, spices, aromatic and medicinal plants), and sericulture ( fruits, vegetables, flowers, herbs, aromatic and medicinal plants) are all the allied sector examples.
Conclusion
Rural India is changing, but there is still a long way to go. The main agriculture producing states, including Bihar, have shown rapid improvement, but the growth has not been evenly distributed. Farmers are getting high value for their land. Therefore land usage in rural regions is shifting. The goal should be to stop people from migrating to cities. Wholesale pricing is mainly used to keep track of weekly price changes. The necessary commodities, particularly non-food crops, should be kept bare minimum. Agriculture’s role in the Indian economy has risen steadily over time.