Vol. 5, Issue 1, Part A (2023)

Agriculture is a critical sector in Bihar, with over 76% of the population relying on it for their livelihood. However, despite its significance, agricultural productivity remains low, contributing only around 20% to the state’s Gross State Domestic Product (GSDP). With limited land for expansion due to population pressures, agricultural diversification has become vital to enhance farmer incomes and reduce poverty. This study examines the pattern of agricultural diversification across Bihar’s agro-climatic regions using data from the National Sample Survey (NSS) 77th Round (Schedule 33.1). The Simpson Index of Diversification was employed to assess diversification, revealing that Bihar’s diversification index is 0.56, compared to the national average of 0.73. Among Bihar’s regions, the North-West zone exhibits the highest diversification index (0.38), followed by the South-East zone (0.33), and the North-East zone (0.28). The South-West zone lags significantly with an index of just 0.08. Additionally, 88.8% of households in Bihar are marginal farmers, with landholdings primarily used for crop production (78.3% of households), while only 17.6% engage in both crop farming and livestock rearing. The study finds that diversification is more prevalent among marginal farmers (index of 0.25), whereas larger farmers show minimal diversification (0.01). The results suggest that promoting diversification, particularly in livestock farming and agro-based industries, is essential for improving the livelihoods of Bihar's small and marginal farmers. This study calls for targeted policies that encourage diversification and address regional disparities to enhance agricultural productivity and economic resilience in Bihar.