Understanding Agrarian Impasse in Bihar

Understanding Agrarian Impasse in Bihar The key hypothesis of policy-makers during the 1980s was that raising tubewell density would trigger agrarian upsurge in Bihar as it did in Punjab, Haryana and western UP. The state did record high growth rates of cereal yields during the 1980s, higher than the national figures. However, this promising development could not be sustained in the 1990s, and cereal yields have stagnated since then. Based on fieldwork in eight villages of Bihar, the paper argues that, more than agrarian structure, the lack of adequate infrastructure and economic incentives has contributed to the agrarian stagnation in Bihar. The growth potential unleashed by the expansion of shallow tubewell irrigation has been constrained by (a) complete neglect of public sector investments in physical and institutional infrastructure and (b) unfavourable output to factor price ratios. AVINASH KISHORE I Gopalganj, Darbhanga and Madhubani in north Bihar. While Introduction Darbhanga and Madhubani are agriculturally least developed, Nalanda and Bhabhua are agriculturally the most developed fter a century-long stagnation, agriculture in eastern India districts. Muzaffarpur, Saran and Gopalganj fall in between these experienced a turn around in 1980s with rapid ground- two extremes. This paper is an attempt to distill the lessons learned Awater development. Especially, West Bengal and eastern during the fieldwork in these eight villages and put them in Uttar Pradesh performed very well with growth rates in production perspective of the larger reality of agricultural development in becoming as high as 4-6 per cent during 1981-82 to 1991-92. Bihar. Agricultural production and productivity levels in the ‘middle state’ Bihar also witnessed a growth higher than the long-term III growth trend of the state [Pandey and Pal 2000]. Yet, agriculture Literature Review in the state grew at a slower pace, over a smaller base, for a shorter time after which the momentum was lost in spite of an impressive Till 1970s, the literature from agrarian studies were dominated expansion of tubewell irrigation. by discussion on issues related to agrarian structure and pro- This paper tries to explore the reasons for this relapse. The duction relations, groundwater development through expansion first section of the paper presents a review of literature available of tubewell irrigation and development of water markets became from the existing body of research on reasons for the persistent the thrust area after the pioneering RBI report on agricultural agrarian stagnation in eastern India. The second section explores productivity in eastern India [RBI 1984]. the latest trends in tubewell irrigation and discusses the structure Agriculture in Bihar has remained stagnant in spite of rich soil, of water markets and their productivity and equity implications abundance of easily accessible water and a rich peasant tradition.1 based on data from a primary survey. The third section of the This stagnation has been ascribed to several factors including paper discusses various macroeconomic factors which limit the state’s colonial legacy [Bharadwaj 1993; Banerjee 2002; farmers’ ability to leverage the newly created pump capital to Mearns 1999; Banerjee and Iyer 2002], ecological conditions increase crop productivity and raise incomes. This understanding [Ballabh and Pandey 1997; Ballabh and Sharma 1990], demo- is based on the knowledge of larger reality of agricultural scenario graphic pressure [Verma 1993] and most importantly, the land in Bihar and observations from field survey. The last and the tenure system and the agrarian structure it supports [Bhaduri concluding section discusses various alternatives for raising 1973; Prasad 1974]. These factors are believed to have impeded crops yield and farm incomes based on studies of well-performing the transition of Bihar’s agriculture from a semi-feudal to capi- farms in the region. talist production system – an essential condition for agricultural growth [Patnaik 1987]. II Inequitable land distribution and perverse land tenure relations Methodology Used in Study are considered to be the backbone of semi-feudal agrarian structure in Bihar and therefore comprehensive land reforms is sug- The study involved an extensive review of literature available gested as the policy measure. Abolition of ‘zamindari’, redistri- on issues of agrarian structure and production relations, agricul- bution of surplus land, tenancy reforms and land consolidation tural growth, groundwater development and water markets in are four components of comprehensive land reforms [Ballabh eastern India and primary data collection using focused group and Walker 1992]. Among all Indian states, land reforms have discussions and interview schedules. been the worst failure in Bihar, even when it took the first The primary data were collected from field studies carried out initiative in this direction by abolishing the zamindari system in eight villages from six districts of Bihar in 2003. Two of our in 1953. While West Bengal could accomplish tenancy reforms villages are from Nalanda and Bhabhua districts of south Bihar through operation Barga and UP had considerable success in land while the rest six are from districts, viz, Muzaffarpur, Saran, consolidation [Pant 2004] both projects were abysmal failure in 3484 Economic and Political Weekly July 31, 2004 Figure 1: Shallow Tubewell Density in Bihar while land has become less important. This is reflected in the 2.00 9.83 declining share of land in the gross value of produce. But, eastern 8.22 9.19 0.00 7.02 5.61 India suffers from severe capital scarcity and existence of 8.00 4.26 6.00 2.32 3.16 monopolistic markets which exacerbate the existing inequality NSA 4.00 2.00 and reinforce the outmoded structure. Machine-reforms, wherein 0.00 STWs/100 ha the government would help the resource poor farmers and land- 1986- 1987- 1988- 1989- 1990- 1991- 1992- 1993 87 88 89 90 91 92 93 94 less labourers to get ownership of agricultural implements so that the inequity in landholdings could be compensated by equity in Source: Minor Irrigation Census of India (1993). access to groundwater and technology, can bulldoze the ossified Figure 2: Density of Bores and Pumpsets (per 100 ha if NCA) agrarian structure and unfold a new era of rapid agricultural growth with relative equity and reduced poverty. They suggest 100 Bore Density Pump Density a government supported and subsidised capital formation in 80 private sector with special targeting on poor and landless to bring 60 about the change. 40 20 This was in line with the key recommendation of the widely 0 quoted RBI report on eastern India [RBI 1984] which also stressed mainly on a machine based approach of exploiting Jaale Beraiin region’s abundant groundwater resources using shallow tubewell Rampur Fariyani Nariyaar Machhahi technology to intensify irrigation and increase agricultural pro- Khutwaara Kurmi bigha Chawai takki ductivity, thereby reducing poverty. Rapid tubewell capital Source: Ballabh et al (2002) for Machhahi and Fariyani and Primary Survey formation through government subsidised projects like free- (2003) for other seven village. boring scheme became the corner stone of public policy in Bihar Bihar. For all practical purposes, the state has almost given up as well as in other eastern states. This marked a clear shift in on this project of land reforms. After the act for compulsory land the policy focus from land-based strategies to water and machine consolidation was passed in 1956 in Bihar; only 3 per cent of capital-based strategy for agrarian change in the region. Unlike the total cultivated land was reported to have been consolidated in the past, the tubewell capital formation was encouraged mainly till 1976 and in fact land consolidation department has now in the private domain and special targeted schemes like the formally been abolished in the state [Wilson 1999]. million wells scheme were devised for small and marginal farmers Changing the structure of landownership proved to be difficult of scheduled castes and scheduled tribes. because the zamindari system was highly institutionalised and Evolution of rental markets in pumpsets (often called water the dominant groups were very strongly entrenched in the state market in irrigation literature) helped overcome the problem of machinery itself. The political difficulties apart, Dandekar and lumpiness of investment and scale bias of the tubewell techno- Rath [cited in Bardhan and Rudra 1979] have argued that in an logies, earlier thought to be the main problems in adoption of overpopulated state like Bihar, it is futile to try resolving the these technologies in Bihar and rest of eastern India having stamp problem of rural poverty by re-distribution of land which is in size plots and high land fragmentation [Dhawan1982]. Water short supply as this will have to be achieved by enforcing markets facilitated access to groundwater of even the small and extremely low land ceilings which cannot be justified on sound marginal farmers. Rapid groundwater development took place in economic considerations or rational calculations. Similarly, Bihar powered by both policy push and private initiative. Density Hayami (1981) argued that in conditions of high and increasing of borewells and pumping sets had registered an exponential population pressure on land, land reform is likely to be infeasible growth over last two decades. Between the two minor irrigation and futile without reversing the trend of increasing

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