chapter v cropping pattern, crop diversification and value addition

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Source: Presentation by Agricultural Department, Government of Bihar before the SteeringGroup.5.2.6 Encouragement to Agro-processingBihar has a very low level of agro processing and there is tremendous potential for itsdevelopment (see Box 5.2). For the introduction of the new 'commercial crops' as well asfor exploiting the full value of the existing commercial crops including fruits andvegetables, processing industries need to be located near the producing areas. Contractfarming with proper safeguards may be encouraged to facilitate production and largervalue retention by the producers.BOX 5.1: Potential for Food Processing in BiharThe value addition in Fortune Product International (FPI) in India is estimated at about 20 percent. The level of processing varies across segments and states. Given the current low levelof processing in the state, there exists a tremendous potential for this, if the rightmanagement, operating environment and policy impetus are provided for the sector. Theemerging retail boom provides another big opportunity for the establishment of foodprocessing industries in the state.Bihar already has a few agricultural commodities to cater to the niche markets. For a gainfulutilization of the existing potential, infrastructure creation and institutional development holdthe key.A decrease in post-harvest losses by just one per cent will result in a value addition of Rs. 80crore to the GSDP by foodgrains and about Rs. 120 crore by the fruit and vegetable sector.Thus, the total value addition to the state GSDP that can be achieved simply by minimizinglosses by 2 per cent in foodgrains and 15 per cent in fruits and vegetables, would lead to avalue addition in the GSDP by approximately Rs. 2000 crore.5.3 PROGRAMMES TO ACCOMPLISH STATED GOALS• Ensuring proper use of irrigation water: As observed earlier, Bihar has a higherproportion of area under irrigation as compared to the national average. Also, themain crops of the state, that is, rice, wheat and maize, have a higher percentage ofarea under irrigation. Yet the yield of these crops (except for maize) is lower thanthe average yield of the same crops for the country as a whole. There could beseveral factors responsible for low yields, but the inefficient use of water iscertainly one of these. Efforts thus need to be made to ensure the proper use ofwater. For example, there are good prospects of introducing pulses and oilseeds inrice fallows with supplementary irrigation facility.8
• Timely supply of the quality inputs: Bihar has a higher use of fertilizersper ha, but the response seems to be below average. There are problems withthe timing of the application as well as the quality of the inputs. In the case ofseeds, adequate supply of the quality seeds seems to be the problem. Stepsshould be taken to ensure timely and assured supply of quality inputs. In the caseof fertilizers, there is also a problem of improper mix of various nutrients. At arecent meeting of the National Development Council (NDC), the implementation ofsite-specific nutrient management on 0.5 millions hectares of land was suggested.By itself, this programme may produce an additional 2.6 MT of foodgrains. Thegovernment should encourage a mix of N, P and K as well as micro-nutrients aftertaking into account the advice of the agricultural scientists.• Self-provisioning of inputs, and appropriate practices on small farms: Forsmall farm agriculture, self-provisioning of inputs is always advantageous, providedthe productivity of these inputs is comparable to the purchased inputs. Modernmethods of seed propagation, selection and preservation on farms should bepopularized. Organic manure and vermiculture offer great promise for boostingproduction. Efforts are being made in different parts of the country to improve theirproductivity and reduce costs. Full advantage needs to be taken of the researchbeing conducted within the state and elsewhere to popularize improved qualityinputs. Similarly, practices which reduce costs without sacrificing productivity,such as no-tillage cultivation, may be popularized. It was suggested duringa meeting of the NDC that zero tillage on 1.5 million hectares of land havingexcess soil moisture after rice harvest could enhance rice production by 0.45metric tonnes.• Investment in rural infrastructure: Rural infrastructure is woefully inadequatein Bihar. As a result, extension, input supplies and marketing of produce suffer. Thishandicap is particularly severe in the case of roads and electricity. High priorityshould, therefore, be accorded to overcome this deficit. The Centrally-sponsoredPrime Minister’s Village Roads Programme has started making a mark in the state.Wherever feasible, labour-intensive methods should be used to build roads,especially village and farm roads. The existing National Rural EmploymentGuarantee Act (NREGA) could be exploited for this purpose. Similarly, alternativesources of energy, such as wind power, solar power, and small hydal powerprojects could be exploited to supplement the generation of energy byconventional sources.9
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