Rainfed Agriculture in Jharkhand

Public Investment towards Rainfed Agriculture: A Case of Jharkhand
Introduction
The UN 2030 Development Agenda for Sustainable Development includes 17 SDGs and 269 targets.
Both, SDG goals 1 and 2 relating to elimination of poverty, ending hunger, achieving food security and
improved nutrition are obviously the most important needing urgent attention and the agriculture
sector has to play the role in achieving this. Jharkhand Vision and Action Plan 2021 (GoJ) details the
Action Plan, outlines specific outcome targets and details the monitoring indices and provides scheme
wise targets and is linked to the thematic objectives of the SDGs. It specifically mentions to enhance the
earning of those engaged in agriculture and allied sector by taking appropriate steps including the
improvement of productivity in agriculture. The document notes the disproportionate dependence of
the workforce on agriculture for livelihood and also the widespread poverty among. The action plan
underscores the need for a strong programme for transforming the agriculture and allied sectors
including measures for increasing farm productivity, bringing remunerative prices to farmers by
improving access to markets and market linkage, shifting to sustainable agricultural practices,
strengthening agricultural extension and improving the implementation of risk management measures.
It may be noted that Jharkhand, at the time of its formation in 2001, lagged behind the all India average
in key development indicators. However, the development gaps, though reduced, still persist since then.
Economic growth for a prolonged period of time and the equitable redistribution of growth benefits
through fiscal policy measures determine the path of quality of life of the people. The State has
registered a trend of the GDP growth quite comparable at all India level and hence its share in country’s
GDP has barely changed, it moved from 1.68 % in 2002 to 1.70 % in 2020-21 (BE). In recent years,
though, the State has recorded notable growth performance and the GSDP of the State increased at of
10.81% (CAGR) between 2011-12 and 2017-18, even though the growth figures have turned more
volatile and the coefficient of variation of the growth has been on the relatively higher side. These
fluctuations probably reflect the erratic swings in agricultural output (especially the crop sector) and
manufacturing industries.
Furthermore, the composition of the growth figures across sectors have turned more skewed as the
sectors engaging larger proportion of the workforce are contributing disproportionately less to growth.
Agriculture and allied sectors that employ half of the workers contribute less than one-sixth of the State
GDP, the mining sector contributes about 12 percent to the GSDP of the state by employing 2.3 percent
of the workers and manufacturing contributes about 14 percent to the GSDP of the state by absorbing
only 7.7 percent of the workers (NSS, 68th Round, 2011). This sectoral imbalance in output and
employment may explain the persistence of poverty in the rural areas of the State.
The pattern of growth in Jharkhand has not tackled the problem of unemployment and poverty.
Majority of the employed persons are engaged in low-productive and low-income earning jobs, resulting
in high incidence of poverty. About 45 percent of self-employed in agriculture and about 55 percent of
casual workers in agriculture are below poverty line and more than half of the casual workers in the
non-agriculture sector are poor (NSS 68 th Round, 2011). (Revise with the latest figures on employment
and output contribution of sub sectors) The problem of unemployment and poverty intrinsically linked
with the growth of agriculture and allied activities since close to half of the workforce of the State is
occupied in these activities. If growth of the sectors is not broad-based, the fruits of the growth will
concentrate in few pockets of the economy and the major section of the economy will be deprived of
the benefits. The figures on economic growth and the pace of poverty reduction in the State in recent
years substantiate such reasoning.
Also, agriculture in Jharkhand is heavily dependent on the monsoon and the rainfall since. Onset of
monsoon and the consequent rainfall level assumes all the more significance for Jharkhand as 88
percent of the net sown area is rainfed and only 12 % is the irrigated one. At all India level, 53 % of the
cultivation is rainfed. It may be noted that a large part of its annual rainfall is received during the south-
west monsoon season (June-September). Despite being a region endowed with good rainfall (more than
1300 mm of normal rainfall for the State as a whole, on average), actual rainfall received varies
erratically year-on-year and its spread across districts is even more scattered. The state received
deficient rains by about 28 per cent and 21 % in 2018 and 2019. Deficient monsoon spells doom for the
cultivators and the fisheries sector, and the agricultural production was badly hit in these years. Despite
good rainfall in the region, the cropped area, growing period and cropping intensity (1.16) are low. The
total cultivable land in the state is 52% of the land mass of the State (all India figure of 55%) and 43%
area of the cultivable area is under net sown area (as compared to all India figure of 76%). In effect,
22.36 % of the geographical area used for cultivation with rice as the dominant crop.
Jharkhand is primarily a rain dependant state wherein two-third of cultivated area rice is grown and
irrigation facilities needed for rabi crops is scanty. The agricultural conditions in Jharkhand from the rest
of India and hence requires different matrix of interventions to realise the potential of the State
agriculture. The farmer households in the State are among the poorest ones in the country. Expansion of
cultivation in unexploited areas requires substantial investment in land development, soil health and
protection of moisture through the crop life. Access to credit to finance household-based capital
formation in agriculture and allied activities is quite limited, particularly for the small holders who
happens to be the largest chunk of the farming community. Given the level of poverty and meagre
household income of the farmers, coupled with limited credit access, the role of government investment
becomes all the more important for the State.
The government runs numerous programmes to cater to the needs of the crop development, animal
husbandry, cooperation, fishery and dairying sectors with objective of agricultural development and
improvement in the livelihood opportunities for the agricultural households, both under State Schemes
and Central assistance & Central Sector Schemes. However, the challenge of promoting inclusive
sustainable development of agriculture and allied activities in a State like Jharkhand will remain
unaddressed unless government programs respond to the local conditions and specific needs of a
rainfed agrarian structure. As we shall notice in the subsequent segments of the report, the vision,
objectives, and operationalisation of the schemes points to the proverbial dangers of “one- size- fits- all”
policy that ignore the diversity of rainfed agriculture households and effectively envisions requirements
of promotion of rainfed cultivation equivalent to those in irrigated one.
Objectives and Structure of the Report

The objective of the present report is
 to examine the status of agriculture and allied activities in the state of Jharkhand with particular
attention to rainfed farming.
 to map the extent of practices of rainfed farming across districts of the State.
 estimating extent of rainfed intensity of agriculture across major crops of the districts of the
State
 to analyse public financing of agriculture in the state and segregate expenditure
 mapping trends and patterns of public expenditure across sub-sectors of agriculture and allied
activities, and further disaggregation across schemes/programmes by different divisions of
Ministry of Agriculture, Animal Husbandry and Co-operative Department (Agriculture Division,
Animal Husbandry Division, Co-operative Division, Fishery Division & Dairy Division)
 to identify the gaps in financing of different aspects of policy intervention for agrarian
development in the state.
 to support more targeted and strategic programme policy and advocacy that favour rainfed
farming community through identifying financing gaps that shape agricultural stagnation
It is divided into four sections:
The following section (Section-II) analyses trends and patterns of growth of sub-sectors agriculture and
allied activities in the state in recent years to identify areas of progress and stagnation. Crop-wise trends
in area, production and productivity will be also examined in this section.
The next section (Section III) focuses on mapping the extent of rainfed cultivation in the State and its
spread across districts. The section also examines the dependence of cultivation of major crops across
districts on rainfall, along with the trends and patterns of level of actual rainfall received and the
deficiency of it in different cropping seasons.
Section-IV analyse public financing of agriculture in the state and segregate expenditure into pro-rain-
fed and pro-irrigated cultivation practices. We discuss the methodology adopted for financing analysis
and segregating expenditure that support pro-rainfed and pro-irrigated farming practices while referring
to the constraints of such analysis in this section. It also examines the trends and patterns of
government financing of agriculture and allied activities, and further disaggregation across programmes
and identifies the gaps in financing. It also presents broad trends of credit and other input provisioning
for the sector.
The report concludes with Section-V that frame the policy landscape and summarize the key issues
identified.
***************************************
Section-II: Situating Agricultural Households Economic Conditions
Per Agriculture Household Income in Jharkhand
NSS 70th round survey report (surveyed during Kharif and Rabi seasons of 2013, and the report
published in 2016), namely the ‘Situation Assessment Survey’ estimates that agricultural households
(AHHs) in six states, including Bihar, Jharkhand, West Bengal, Uttarakhand, Odisha, and Uttar Pradesh,
have an average monthly income of less than Rs 5,000, yielding per day expenditure of less than 166 per
day for the entire household (roughly Rs. 37 per person each day). This average, though quite revealing,
masks the staggering inequality of income and expenditure between the marginal & small land holders
(owning less than 0-4 acres) and the medium & large landholders (owning more than 4 acres) and across
deciles of the consumption distribution. Average farmer’s income in Bihar was recorded the lowest at
just Rs 3,558 per month per agricultural household, followed by West Bengal at Rs 3,980. The monthly
average income per agricultural household remained Rs 4,701 in Uttarakhand, Rs 4,721 in Jharkhand, Rs
4,923 in Uttar Pradesh and Rs 4,976 in Odisha. Haryana recorded the highest farmer’s monthly average
income of Rs 14,434.
On account of poor income, and hence with inadequate surplus, Jharkhand, along with Assam, Bihar,
Uttar Pradesh, West Bengal, is among the States that invest the least proportion of agricultural income
to augment the productive capacity of the sector. Agricultural households (AHHs) in Jharkhand invest
2.5% of agricultural income while all India average is 8. States like Odisha (27%), Karnataka (22%),
Punjab (17%) and Tamil Nadu (13%) and Madhya Pradesh (12%) spend more than 10% of their
agriculture income for productive investment in agriculture. It may be noted that all India level, out
expenditure on productive assets, nearly 33 percent was spent on agricultural machinery and
implements, 18 percent on livestock and poultry non-farm business accounted for 7 percent and the
remaining 42 percent was on ‘other assets in farm business.
share of Investment in Agricultural Income (%)

30.0
27.1
25.0
22.2
20.0
17.3
15.0 13.7
12.7
11.6
10.0 8.0
5.8 6.2
4.8
5.0 3.7
2.5
1.5 1.4
0.0
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Source: ‘Situation Assessment Survey’; NSS 70th round, 2016; MOSPI, GoI
Poverty in Jharkhand
These figures are consistent with those provided by state-wise poverty estimates of erstwhile Planning
Commission for the year 2011-12. Chhattisgarh (45%), Jharkhand (41 %), Madhya Pradesh (36 %), Odisha
(36%), Bihar (34 %), Assam (34%) and Uttar Pradesh (30%) were among the leading States with
prevalence of rural poverty.
Rural Poverty (%) 2004-05 2011-12
70
61
60 55 56
52 54
50 48
43 42
39 38 38
40 36 36
32
30 25
22 20
45 41
20 36 36 34 34 30
26 24 22
10 17 17 16
12 11 10 9
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More or less, the order of poverty among States exist for combined figures of rural and areas.
Chhattisgarh (40%), Jharkhand (37 %), Madhya Pradesh (36 %), Odisha (33%), Bihar (34 %), Assam (32%),
Madhya Pradesh (32%) and Uttar Pradesh (29%) were among the poorest States of India. These figures
may be contrasted with those of Kerala (7%), Andhra Pradesh (9%) and Tamil Nadu (11%) which have
contained prevalence of poverty within manageable limits.
It may be noted that the period between 2004-05 to 2011-12 have recorded unprecedented reduction
in poverty at all India level (by more than 15 percentage points in a span of 7 years) and rural poverty
reduction was to the tune of 16%. These years were the heydays of MNREGS and RKVY programmes and
may have contributed towards remarkable reduction in poverty in rural areas.
Poverty % ( Rural and Urban combined) in States
70
60
50
40
30 54 57
49 45 49
20 41 37 38
34 32 34 29 30
10 20
40 37 34 33 32 32 29 22 17 17 15 11 9 7
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2004-05 2011-12
Source: Niti Aayog Website, GoI
The extent of poverty reduction in urban areas, specifically in states where major chunk of the poorest
are concentrated, comparatively less than rural areas. In Jharkhand, urban poverty ration increased
marginally from 24% to 25 % during the period. At all India level, it reduced from 26 % in 204-05 to 14 %
in 2011-12.
Urban Poverty (%)

50
45 44
40 38
34 35
35
28 30
30 26 26
26 24
25 24
22
20 20 18
20
15 31
26 25 25
10 21 21
17 15 14
5 10 9 7 6 5 4
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2004-05 2011-12
Source: Niti Aayog Website, GoI
Sources of Income of Agricultural Households in Jharkhand
There are 22.4 Lakh agricultural households in Jharkhand and 98 % of them practice cultivation of crops
and 63 % are involved in farming of animals. Agricultural household’s annual income is estimated to be
Rs. 12690 crore for all households taken together for the entire state in 2011-12. Wages constitute 39%
of the income of the agricultural households, Rs. 1839 out of monthly income of Rs. 4721 for the
household while (monthly) income from cultivation of crops is Rs. 1451 amounting to 31% of the
income. Farming of animals and non-farm business provides Rs. 1193 and Rs. 238 to the agricultural
households, their contribution to agricultural income being 25% and 5% respectively. As we see in the
following paragraph, monthly expenses on human and animal labour taken together is Rs. 131 for the
agricultural households, implying 93% of the wages are earned outside the agriculture sector.
Share in Income Agricultural Household in Jharkhand
non-farm business
5%
farming of animals
25% wage
39%
cultivation
31%
wage cultivation farming of animals non-farm business
Thus, agricultural households have to look for other sectors to get more than one-third (36%) of the
meagre monthly income that they earn. The precarious condition of the agricultural households in
reflected in the fact that 79% of them look for earning wages apart from their cultivation activities and
only 9 % of the households have opportunities to earn income from non-farm business.
Proportion of Agricultural Households engaged in various activities for Earnings (%)
10
Non-farm business
9
71
Aanimal-farming
63
92
Cultivation
98
52
Wages
79
0 20 40 60 80 100 120
All India Jharkhand
More significantly, agricultural households in Jharkhand are heavily dependent on earnings from wages
that accounts for two-fifth of their income and the net from cultivation is about one-third of the income.
Under these conditions, access to government employment programmes assumes critical significance
for the people of Jharkhand engaged in agricultural and allied activities. Animal husbandry accounts for
25 % of the net income of agricultural households in Jharkhand, while it is 12% at all India level. This call
for different matrix of agricultural programmes and their components for the state like Jharkhand
wherein livelihood of rural people is affected disproportionately more by the growth of employment
programmes and animal husbandry activities.
Sources of Ahricultural Household Income (% share)
8
Non-farm business
5
12
Aanimal-farming
25
48
Cultivation
31
32
Wages
39
0 10 20 30 40 50 60
All India Jharkhand
Annual Income and the Rates of Return on Agricultural Expenditure in Jharkhand
The Chart shows that Jharkhand (259%) is placed among the States showing a rate of net return on crop
expenditure of more than 250 % while Andhra Pradesh (37%) and West Bengal (56%) were the states
recoding lesser rates of return as compared to all India figures of 153%. 86 % of the farmers in the State
are marginal/small landholders (owning land of sizes 0.01-0.4 and 0.41-1.00 Hectares), and the returns
on crop expenses for them ranges between 237% to 268%.
Return on Crop Expenditure (%)

600 560
500
400
303
300 259
200 186 185
200 175 174 159 157 153 152 144 139 131
103 97
100
56
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Annual expenditure on crop production in Jharkhand was Rs.6852 per agricultural household (AHH) (the
least among the major states of India, with all India the figure was Rs. 26300), while the figures for
Punjab, Haryana and Andhra Pradesh were Rs. 141000, Rs. 75000 and Rs. 74000 respectively. Assam (Rs.
9000), Odisha (Rs. 12000), Chhattisgarh (Rs. 14000), Bihar (Rs. 17000), Rajasthan (21000), Uttar Pradesh
(Rs. 21000) and West Bengal (Rs. 22000) were among the States recording figures considerably less than
all India level.
Costs of Farming of Crops in Jharkhand
Despite the exceptional rate of net return on crop expenditure, per AHH crop expenditure in Jharkhand,
Rs. 6852 per annum, is just a quarter of all India level expenditure (Rs. 26000) and merely 5% of the
expenditure in Punjab (with an expenditure of Rs.1,41,000). Poverty and low-income trap of AHHs in
Jharkhand explains the fact of gross underinvestment in crop production despite presence of
exceptional returns!
Annual Expenditure per Agricultural Household (Rs thousand)in Agriculture & Allied Ac-
tivities
160
141
140
120
100
80 75 74
60 51
40 33 32 30 27 27 27 26.3 22 21 21
20 17 14 12 9 6.9
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Constituents of Expenses on Crop Production in Jharkhand
For cultivation of crops, annual expenditure per agricultural household in Jharkhand is Rs.6852 and
seeds (19%), fertilisers & chemicals (32%), labour charges (23%) and expenses on machines, rent of land
etc. being main constituents of costs of farming of crops.
% share in costs
35
32
30
25 24
23
20 19
15
10
5
2
0
Seeds fertilizer & Chemicals irrigation labour others* (machines ,
rent, etc)
It is not surprising to note that irrigation accounts for merely 2% of costs in Jharkhand, as Jharkhand is a
rainfed State by all counts and this this level of insignificant expenditure on irrigation is prevalent across
spectrum of agricultural households whether large famers of marginal farmers.
Share of Irrigation Expenses in Farm Expenses across Landholding Sizes in Jharkhand (%)
3.5
3.0 3.0
2.5
2.3
2.1
2.0
1.5
1.2
1.0
0.7
0.5
0.5
0.0
0.01 -0.4 0.41 -1.0 1.01 -2.0 2.01 -4.0 4.01 -10.0 All Sizes
It may further be noted that while 94%, 99%, 55% and 85 % of the agricultural households incur
expenditure on inputs like seeds, fertilisers, chemicals and labour respectively; only 12.8 % of the
households incur any expenditure on irrigation.
Input Use- % of Agricultural Households

120.0
99.2
100.0 94.3
84.6
80.0
60.0 55.0
40.0
20.0 12.8
0.0
seeds fertilizer chemicals for plants irrigation labour
protection
Farming of Animals: Receipts, Expenses and Returns
The livestock sector did not receive the policy attention and fiscal priorities commensurate with its
significance in the livelihood of the farmer households, it attracted about one-tenth of the total public
expenditure on agriculture and allied sector, though its contribution to agricultural value added about a
quarter. In addition, credit availability for the sector have remained low the share of livestock in the
total agricultural credit never ever exceeded 4% and the livestock extension has remained grossly
neglected in the country. The institutional protection cover for animals against risk of various nature, in
stark contrast with crop insurance, has remained almost non-existent, with 6 % coverage rate for non-
poultry animals.
The agriculturists involved in farming of animals have historically been left on their own despite
immense potential for growth of the sector through concrete policy programmes and needed fiscal
allocations. Needless to mention, agricultural households of the states like Jharkhand, Bihar, Uttar
Pradesh, Assam, Chhattisgarh, West Bengal etc. have been hit the hardest.
Like the case of expenditure on cultivation of crops, all the agricultural households take together,
Jharkhand spend an alarmingly low amount, Rs. 500 crore per year (0.45 % of all India expenditure)
while Uttar Pradesh (Rs. 19000 crore), Rajasthan (Rs. 13000 crore), Maharashtra (Rs. 12000 core),
Gujarat (Rs. Rs. 9000 crore) are among the States spending larger sums of money, these four states
collectively spending the half of the country level expenditure (Rs. 1,07,000 Crore) on farming of
animals.
Annual Expenditure & Receipts of All AHHs from Farming of Animals (Rs. thousand
crore)
35
31
30
25
21
20 19 18
17
15 12 13
11 12 11
10 9
10 7 7
6 6 5 5
5 4
2 2
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Expenditure Receipts
If we look at per agricultural household yearly expenses on farming of animals (with all India level
expenditure being Rs. 17000), quite expectedly, Punjab (Rs. 43000), Haryana (Rs. 39000), Gujarat (Rs.
29000), Maharashtra (Rs. 25000) and Rajasthan (Rs. 22000) are leading States while Jharkhand (Rs.
3000), Odisha (Rs. 6000) and Assam (Rs. 8000) are the state with the minimal expenditure.
On receipts side, particularly the rate of return on expenditure made on farming of animals, we have a
different picture. Receipts earned per household in Jharkhand (Rs. 29000) is almost comparable with
figures of all India level receipts per household (Rs. 31000) and the share of Jharkhand in total receipts
at India level for all households taken together, is 2.05 % (while its share in expenses is just 0.45 %). This
means that the farming of animals an enterprise, is 4.5 times more profitable in Jharkhand that the
profitability of farming of animals at all India level.
Uttar Pradesh (16%), Rajasthan (11%), Gujarat (9%), Maharashtra (8%) enjoys the major chunk of the
share.
Annual Expenses and Receipts per AHHs from Farming of Animals (Rs. thousand)
80
73
70
64
60 58
50
43
39 38
40 36 35
29 31
29
30 25
23 22 22 22
20 16 15 17
13 11
10 8 6
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Expences Receipts
That farming of animal has attracted inadequate investment is reflected in the exceptional returns for
the agriculturists of Jharkhand. While at all India level, rate of net return on annual expenses is 88%,
Jharkhand recorded return rate of whopping 755%. Odisha (482%), Assam (201%), Andhra Pradesh
(158%) and Madhya Pradesh (142%) have also recorded astounding returns.
Net Return on Expenses by AHHs on Farming of Animals (% )

800 755
700
600
500 482
400
300
201
200 158 142 133
103 88 87
100 73 68 49 43 38 37
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At all India level, total expenses per household is Rs. 16656 with animal feed (Rs. 12828) constituting the
largest component. In Jharkhand total expenses is Rs. 3396, with animal feed (Rs. 1860), vet. Charges
(Rs. 528) and animal seeds (Rs. 348) being the major constituents of costs of farming of animals by
agricultural households.
Annual Expens es on farmi ng of Ani mal s per AHH (Rs . )
18000
16656
16000
14000
12828
12000
10000
8000
6000
4000 3396
1500 1860
2000 1284
348 528 348 624 696
24
0
animal seeds animal feed Vet. Charges labour other Total Expenses
Jharkhand all-India
On the receipts side of accounts of farming of animals enterprise, at all India level, receipts per
household from sale of milk (Rs. 21000) constitute 68 % of the total receipts of Rs. 31248 and live animal
component constitute another 18 %. In Jharkhand, out of total receipts of Rs. 29040, live animals (Rs.
273000) contribute 94% of the receipts and milk shares 5% of the total receipts. Indeed, out of yearly
income of Rs. 4110 crore, for all households in farming of animals taken together, milk accounts of Rs.
200 crore while the contribution of live animals stands at Rs. 3864 crore in the state. The share of
Jharkhand in all India annual earnings from sale of milk (Rs. 137603 crore) is miniscule, 0.15 %. The share
of Jharkhand in all India receipts from sale of live animals (Rs. 35,095 crore) is 11%. Other prominent
states with significant share in all India receipts from live animals are Odisha (25%), Maharashtra (15%),
Assam (9%), Andhra Pradesh (9%) and West Bengal (6%). These telling differences in constituents of
revenues of the farmers must be kept in consideration while planning and promulgating programmes for
welfare of people engaged in animal husbandry activities in the state.
Annual Receipts from Farming of Animals per AHH (Rs.)

35000
31248
30000 29040
27300
25000
21408
20000
15000
10000
5460
5000 3408
1416 624
72 252 24 84 24 204
0
Milk Egg Live Animals Wool Fish Others Total Receipts
Jharkhand All India
% Share in Costs of farming of Animals by AHHs in Jharkhand)
60
55
50
40
30
20 18
16
10
10
1
0
animal seeds animal feed Vet. Charges labour other
It is worthwhile to note the contribution of marginal & small landholding agriculturists they constitute
86 % of the total land-holders and 96 % of the receipts from farming of animals.
share of landholders in Receipts from Live animals in Jharkhand (%)

70.0
66
60.0
50.0
40.0
30
30.0
20.0
10.0
3
0 1 0
0.0
< 0.01 0.01 -0.40 0.41 -1.00 1.01 -2.00 2.01 -4.00 4.01 -10.00
The is widespread dispersion in contribution of different sources of receipts for households engaged in
farming of animals across states. at all India level, milk, live animals, fish, egg and other sources
constitute 69 %, 17%, 2%, 0.8% and 11 % respectively of total receipts from farming of animals. Milk
production and the receipts thereof is concentrated in agricultural households of few States like Uttar
Pradesh, Gujarat, Rajasthan and Maharashtra and their share aggregates to 50 % of the receipts.
In yearly receipts from milk at all India level for all farming households, the shares of 8 states including
Jharkhand, Andhra Pradesh, Assam, Chhattisgarh, Kerala, Odisha, Telangana, West Bengal collectively
constitute 10 % while Uttar Pradesh (17%), Gujarat (13%), Rajasthan (12%), Maharashtra (8%), MP (7%),
Haryana (7%), Punjab (6%), Bihar (6%), collectively aggregating to 76 % of milk receipts. Karnataka and
Tamil Nadu both share 4 % of the milk receipts at all India level.
Fish production is a source of revenue for mainly three States, Tamil Nadu, Assam and west Bengal, and
its contribution in Jharkhand household receipts is negligible. Similarly, egg constitute 5-8 % of receipts
from farming of animals in the States of Kerala, Andhra Pradesh and Assam, and contribution in
Jharkhand household receipts is insignificant. Wool constitute 4 % of receipts in AP and Jharkhand has
no presence here as well.
Among all the agricultural households in Jharkhand, farming of animals contributes 63% of the total
receipts of farmers holding land less than 0.4 hectares while it augments 32% of the income of the
households with land 0.41-1.0 hectares. For rest of the farmers, it a negligible proportion of their farm
income.
% receipts earned in farming of animals

70
63
60
50
40
32
30
20
10
3
1 0
0
0.01 -0.40 0.41 -1.00 1.01 -2.00 2.01 -4.00 4.01 -10.00
% receipts earned
In sum, we have seen in this section that agricultural households in the state are both income and
expenditure constrained. Jharkhand ranks the lowest among the major states of India in terms of per
household expenditure on crop cultivation and farming of animals, despite the net return on these
heads in the state is exceptionally high, indeed the highest among all states. 9 out of 10 farmers in
Jharkhand belong to marginal/small land holder category and they contribute significantly to overall
agricultural earnings in general, and earnings from animal farming (through sale of live animal products)
and wages in particular. Milk, fish and wool have negligible significance in the receipts of the households
engaged in farming of animals. Cultivation of crops accounts for less than one-third of agricultural
income for the households. Household level expenditure on investment to augment productive capacity
turn out to be low (2.5% of expenditure) which is expected as major part of the low income is devoted
to survival expenditure. 35 % of the households survive by spending less than Rs. 26 per capita per day
and average for all households is also a low sum of Rs. 35. Even the top three deciles have per capita
expenditure of Rs. 38, Rs.43 and Rs. 53 respectively, which significantly less than the all India figures.
Thus, by all counts, Jharkhand is the poorest State of India and the agricultural households are in deep
economic distress despite being efficient in economic sense as reflected in the returns that they get for
their meagre expenditure on agricultural activities. Now, we will discuss the trends and patterns of
economic growth in agriculture and allied sector to map the gaps and highlight the bright points of the
agricultural economy that may have bearings on the livelihood of farmers.
******************************************
Section-III: Trends and Patterns of Growth of Agriculture and Allied Activities in Jharkhand
Extent of Fallow land its trends over time in Jharkhand
To meaningfully examine the growth patterns of agriculture and allied activities in Jharkhand since 2011-
12 (for which we have new series of macroeconomic dataset, it is pertinent to briefly capture the status
and agricultural conditions of districts of the state. Growth and development are long term processes
and are determined, to a great extent, by the existing conditions and the course followed over the years.
Total agricultural production depends primarily on the area under cultivation out of total geographical
area, and specifically on the sown area out of the cultivable land. On account of accumulation of water
deficient areas and consequent abandonment of agriculture on those lands, at India level, during the
period between 1950-51 to 2012-13, current fallows has increased by a whopping 43 per cent. During
the period from 2001-02 to 2014-15, the state of Jharkhand witnessed an increase of 2,11,427 ha in its
area under fallow lands other than current fallows. In 2001, 18 per cent of the total reported area was
current fallows and 11 per cent was ‘other fallow lands’, comprising 29.6 % together. In 2014, areas
under the two types of fallows were 17 and 14 per cent per cent respectively, together accounted for
31.5 per cent of the total reported area out of its total geographical area of 79.70 lakh ha. Thus, one-
third land remains fallow meaning that the wasteland reclamation initiatives and programmes of
bringing fallow lands into cultivation have proved to be grossly inadequate (Sinha, 2017).
land -use pattern in Jharkhand ( as % of geographival area)
other fallows (9) 10.9
Current fallows (16) 16.2
Barren and
uncultivable land (10) 9.9
Misc. tree crops and groves 1.4

(6)
cultivable Wasteland (10) 6.3
Permanent 1.7
pastures (10)
Land under 10.7
non- agricultural use (13)
Forest 27.0
area (17)
Cultivable 29.3
area (17)
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0
Source: Compiled from District Agricultural Contingency Plan, 2016; Various Districts of Jharkhand
29 % of the geographical area was categorized as cultivable and 27 % were reported to be forest (other
sources place it at 28%), 16% current fallows, 11% under other fallows, 10% barren & uncultivable land,
11% under non-agricultural uses, 6.3 % cultivable wasteland, 1.7% were under permanent pastures and
the remaining 1.4 % were under lands for miscellaneous trees & grooves.
In recent years, 16%-19% of the geographical area is under sown area, and agricultural department
projected severe reduction in area shown under kharif crops on account of late onset of monsoon and
scanty rainfall across blocks/districts of the state. Normal rainfall in Jharkhand is estimated at 1400 mm
and more than 70% of the rainfall accrue in the monsoon season (June-September). In 2019-20, the
overall deficit of rainfall in the state was more than 20% and this trend in deficient rainfall has persisted
during the last 4-5 years.
Among the worst hit districts are Pakur, Latehar, Ranchi, Dumka, Bokaro, Khunti, Gumla and Giridih that
recorded a deficit in rainfall in the range of 25%-42% and they received monsoon rainfall in the range of
644 mm – 754 mm in 2019-20.
Actual Rainfall suring Monsoon (from June to Sep-

tember) in 2019
644
Bokaro 657
674
Ranchi 705
707
Khunti 754
755
Giridih 768
773
Deoghar 777
787
Pakur 788
793
Hazaribagh 799
805
Gumla 836
840
Kodarma 861
869
Jamtara 894
908
E. Singhbhum 960
1040
Simdega 1110
0 200 400 600 800 1000 1200
Source: Based on data from District Agricultural Contingency Plan, 2016; Various Districts of Jharkhand
Major Crops Grown and the Area Under Cultivation in the State
Based on the data derived from Agricultural Contingency Plan of 23 districts (W. Singhbhum data not
included), 21.44 lakh hectares of land was reported under cultivation, of which 1820 lakh ha (85%) was
under Kharif crops and 324 lakh ha under rabi crops (15%). Among the kharif crops, 14.46 lakh hectares
was under rice cultivation (79.4%), 2 lakh ha under maize (11%), 0.81 lakh ha under pigeonpea (4.5%)
and 0.41 lakh ha under blackgram (2.2%). These crops together constituted 97.1% of the area under
kharif crops.
Under rabi crops, maize (60.2%), wheat (17.3%), chickpea (6.7%), mustard (5.1%), pea (4.7%) and lentil
(2.8%) are the top-5 crops together constituting 96.6% of the area under cultivation.
Area under major foodgrain cops in Jharkhand (2009) ('000 ha) (based on 23 districts data)
Kharif rabi total
Rice 1446 1446
Maize 200 195 395
Pigeonpea 81 0.3 81.3
Black gram 40.6 40.6
Wheat 10 56 66
Chick pea 7.7 21.6 29.3
Lentil 9 9
Pea 1.5 15.2 16.7
Mustard 3.9 16.4 20.3
Linseed 2.5 2.5
Total 1820 324 2144
District-wise area coverage under foodgrain crops is depicted in the following chart which clearly
reflects that Giridih, Khunti, Ranchi, E. Singhbhum, Deoghar, Gumla, Garhwa and Saraikela are among
the prominent districts constituting more than half of the area under cultivation of foodgrain crops in
the state.
Area under Food grain Crops in Jharkhand based 21 Districts data (in thousand hectares)
18
Ramgarh 19
26
Pakur 41
45
Godda 48
49
Lohardaga 51
56
jamtara 60
67
Simdega 69
87
Dhanbad 88
93
Garhwa 107
109
Deoghar 120
164
Ranchi 191
191
Giridih 193
0 50 100 150 200 250
In Jharkhand about 1. 5 lakh- 2 lakh hectares of land is under horticulture crops every year . Tomato (0.2
lakh ha), potato (0.2 lakh ha), cauliflower (0.2 lakh ha), cabbage (0.16 lakh ha), brinjal (0.12 lakh ha),
okra (0.09 lakh ha) and ladyfinger (0.06 lakh ha) are prominent vegetable crops grown in the state,
together constituting 70% of the area under horticulture crops. The following chart presents district-
wise area coverage (in lakh ha) of horticulture crops.
Foodgrain crops and horticulture crops taken together, 22-24 lakh ha of land under cultivation as
reported by Agriculture Contingency Plans of districts of Jharkhand. This constitutes 27%-30% of
geographical area of Jharkhand.
Area under cultivation of Horticulture (vegetable) in 19 districts of Jharkhand ('000 ha)
French bean 1
Cucumber 2
Ridge gourd 2
Sponge gourd 4
Peas 4
Bottle gourd 4
Bhindi 4
Bitter gourd 5
Chillies 5
Onion 5
Ginger 5
Lady finger 6
Okra 9
Brinjal 12
Cabbage 16
Cauliflower 20
Potato 20
Tomato 20
0 5 10 15 20 25
Breadth and spread of Rainfed Agriculture in Jharkhand
Jharkhand is essentially a rainfed state and the adequacy (or deficiency) of rainfall across districts of the
state determines area sown and the consequent levels of production and productivity of kharif as well
as rabi crops.
Out of 21.17 lakh ha of land reported under gross sown area, 3.12 lakh ha land was irrigated and 1805
lakh ha was rainfed, yielding 85% of gross sown area as rainfed area that depends exclusively on rainfall
for production activities. Out of 18.43 lakh ha net sown area, net rainfed sown area of 15.46 lakh ha
constitutes 84%. Overall cropping intensity (ratio of net sown area to gross sown area) in Jharkhand in
Jharkhand is 115%. The cropping intensity for rainfed area is 117 which is larger than the cropping
intensity of 109 in irrigated area of Jharkhand. Dhanbad (95%), Giridih (91%), Saraikela (91%), Koderma
(90%), Palamau (90%), E. Singhbhum (88%), Ranchi (87%) and Hazaribagh (86%) are among the districts
having rainfed intensity of cultivation larger than average for the State.
The chart below shows clearly that the districts with greater rainfed intensity are those having lesser
cropping intensity. We see a negatively sloped plot of rainfed intensity (%) against cropping intensity (%)
for 20 districts of Jharkhand.
Rainfed % vs Cropping Intensity (%) Plot
100
90
80
70
60
50
40
30
20
10
0
95 100 105 110 115 120 125 130 135 140
Source: Compiled from District Agricultural Contingency Plan, 2016; Various Districts of Jharkhand Note:
The table doesn’t include Gumla, Khunti, Latehar & W. Singhbhum.
District-wise Rainfed Intensity of Cultivation in Jharkhand

Area (‘000 Net Gross Net Net Gross Gross Cropping Rainfed %
ha) Irrigated Irrigated Rainfe Sown Rainfe Sown Intensity
area area d area area d area Area
Dhanbad 1.9 2.3 35.8 37.7 37.7 40 106 95
Giridih 12.4 14.8 126 138.4 138.4 153.2 111 91
Palamau 10.7 22.8 96.3 107 107 129.8 121 90
E. Singhbhum 14.7 14.7 104.6 119.3 119.3 134 112 88
Ranchi 32.1 32.1 222.9 255 255 287.1 113 87
Hazaribagh 23.3 23.3 137.6 160.9 160.9 184.2 114 86
Deoghar 16.2 16.2 92.1 108.3 108.3 124.5 115 85
Dumka 30 30 175 205 205 235 115 85
Pakur 12.9 12.9 45.9 58.8 58.8 71.7 122 78
Garhwa 35.2 35.2 65.8 101 100.9 136.1 135 65
Jharkhand 286 312 1546 1843 1805 2117 115 84
(20 districts)
Source: Compiled from District Agricultural Contingency Plan, 2016; Various Districts of Jharkhand Note:
The table doesn’t include Gumla, Khunti, Latehar & W. Singhbhum.
The following chart depicts crop-wise rainfed intensity of cultivation in Jharkhand. For all crops (for
which data is provided in Agricultural Contingency Plans of districts), 88 % of the area under cultivation
is rainfed. Rice cultivation, which constitutes 60 % of the gross cropped area (kharif and rabi together) is
almost exclusively (98%) under rainfed farming. Maize and Pulses, that constitute 13.2% and 10.6 % of
the gross cropped area respectively, are predominantly rainfed and 93 % of the cultivation for both of
these crops depend exclusively on rainfall. 62% of horticulture crops (constituting 7.8% of gross cropped
area) is rainfed. More than half (52%) of the Oilseeds crop, that constitute 3.6 % of the gross cropped
area of the State, is dependent on rainfall. 15 % of the wheat crop area (that constitute 4.6% of the
gross cropped area in the state) is rainfed.
Rainfed-Intensity (%) of Main Crops of Jharkhand
All_Crops 88
Horticulture 62
oil seeds 52
Pulses 93
Finger millet 96
Wheat 15
Maize 92
Rice 98
0 20 40 60 80 100 120
share in cropped area (%)
Horticulture 7.8
oil seeds 3.6
Pulses 10.6
Finger millet 0.6
Wheat 4.6
Maize 13.2
Rice 59.6
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0
Composition of Production of Foodgrains in Jharkhand: Kharif and Rabi Crops
Rice, maize, pigeonpea, and blackgram are the prominent crops during kharif season while wheat,
chickpea, pea and mustard are primarily grown during rabi season in Jharkhand. Out of total production
of 26.5 lakh tonnes of foodgrains, 90% are grown during kharif season while 10% in rabi season. In kharif
crops, production of rice, maize and pulsed accounts for 83%, 12% and 5% respectively. Within rabi
crops production, the shares of wheat, pulses and oilseeds are 50%, 37% and 7% respectively.
crop share(%) in foodgrain production in Jharkhand
8 1
12
74
rice maize wheat pulses oilseeds
In the overall production of foodgrains, the share of rice, maize and wheat are 74%, 12% and 5 %
respectively and thereby cereals constitute 91 % of the foodgrain production. The production shares of
pulses and oilseeds are 8% and 1% respectively. Jharkhand also produces lentils (8000 tonnes) and
linseed (1000 tonnes) during rabi season and groundnut (7000 tonnes) during kharif season, though they
constitute insignificant proportion of total production.
Production of Foodgrains in Jharkhand (as per District Agricultural Plan Report, 2016)
Production ('000 tonnes) Share (%)
Crops Kharif Rabi Total Kharif Rabi
Rice 2040 2040 100
Maize 304 17 321 95 5
Wheat 139 139 100
Cereals 2344 157 2500 94 6
Pigeon pea 61 61 100
Blackgram 50 6 57 89 11
Chick pea 63.7 63.7 100
Pea 23 23 100
Pulses 118 101 220 54 46
Mustard 1 17 18 7 93
Oilseeds 8 18 26 30 70
Total 2470.0 276.0 2746.0 89.9 10.1
To sum up the section, we may say that Jharkhand is predominantly a kharif cropping state with rice
being the backbone of agricultural production activities in the state. Rice constitutes three-fourth of the
food grain production and nearly three-fifth of the area under cultivation. As a rough measure, as seen
through district-wise and crop-wise irrigation intensity data for the state, nine out of ten hectares of
land under cultivation is rainfed and the cropping intensity is 115%. In this section, we have presented
compositional sketch of agricultural production in Jharkhand. It must be acknowledged that analysis so
far of the patterns of agricultural activities in Jharkhand is based on NSS survey and the data compiled
from District Agriculture Contingency Plans of the 20 districts of the state in 2012-13 and 2011-12
respectively. The results on farmers income and expenditure derived from NSS data can be compared
with CSO data on macroeconomic aggregates of Jharkhand which present information on gross state
value added in different components agriculture and allied activities. Further, CSO data may helpful in
projecting the trends and patterns of growth of agricultural sector vis-à-vis rest of the economy. Of
course, the numbers provided different data sets may be different in their absolute magnitude as the
methodologies involved are different across agencies involved in estimation. Yet, we expect them to
provide patterns, ratios and rates of growth of the relevant variables that are consistent with one
another since we believe that structural transformation of a sector is long term process and inter-
relationships across variable are stable and persist for a prolonged period of time unless disturbed by a
huge policy induced macroeconomic shock. With this perspective, now, we move on to discuss the
trends in agricultural production and its allied components period since 2011-12.
Growth Accounting
The size of Jharkhand economy (as reflected in gross state value added), at constant 2011-12 basic
prices, has increased from Rs. 1.4 lakh crore in 2011-12 to Rs. 2.1 lakh crore in 2019-20, roughly an
increase of 50% over the period of 8 year, broadly mirroring the growth figures at all India level.
Agriculture and allied activities in Jharkhand provide employment to more than 55% of the population,
and cultivation of crops and farming of animals have been the backbone of livelihood sources for the
agricultural households in the state. Value added in crop sector in the state was Rs. 13,421 crore in
2011-12 and it was Rs. 13,160 crore in 2019-20! The crop sector registered an overall negative growth of
2% over these 8 years.
GSVA at Constant prices 2011-12 prices in Jharkhand (Rs. Crore)
2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019-

12 13 14 15 16 17 18 19 20
1. Crops 13421 14980 14305 15074 11336 14595 15643 13192 13160
2. Livestock 4776 4457 4611 4751 4935 5281 5156 6221 6460
3. Fishing & aquaculture 563 593 644 654 712 891 1167 1280 1440
I. Agriculture & allied 18760 20031 19560 20479 16983 20767 21966 20694 21060
activities (Core)(1+2+3)
4. Forestry & logging 3576 3619 3653 9853 4733 6036 5428 5119 5388
Agriculture, forestry & 22335 23650 23213 30332 21717 26803 27394 25813 26448
fishing (1+2+3+4)
GSVA at basic prices 13913 15030 15172 17125 15774 17262 187467 198919 21014
(constant 2011-12 0 6 4 7 1 0 4
prices)
Source: Economics Survey, various Years, Government of Jharkhand
These figures are staring at the eyes to tall claims of doubling farmers income by 2022-23. The livestock
sector is next most critical sources of income for the agricultural households of the state- the value
added here increased from Rs. 4776 crore to Rs. 6460 crore over the said period, depicting a growth of
35%, overall average growth of 4% over these 8 years from 2011-12 to 2019-20. It registered a modest
growth, and far from growth figures of 10% per annum required to double the income in 7 years since
2016-17. Taking the core sectors of agriculture and allied activities including crop, livestock and fishery,
value added increased from Rs. 18760 in 2011-12 to Rs. 21060 in 2019-20, an overall increase of 12%, a
figure 1.5% per annum. At this rate of growth, it will take 47 years to double the income of agriculturists
of Jharkhand.
Share (%) of components of Agriculture & allied Activities (core) in GSVA (at constant 2011-12
prices) in Jharkhand
2011 2012 2013 2014 2015 2016 2017 2018 2019 Average
-12 -13 -14 -15 -16 -17 -18 -19 -20 (2011-12 to
2017-18)
Crops 9.6 10.0 9.4 8.8 7.2 8.5 8.3 6.6 6.3 8.8
Livestock 3.4 3.0 3.0 2.8 3.1 3.1 2.8 3.1 3.1 3.0
Fishing & 0.4 0.4 0.4 0.4 0.5 0.5 0.6 0.6 0.7 0.5
aquaculture
Agriculture Core 13.5 13.3 12.9 12.0 10.8 12.0 11.7 10.4 10.0 12.3
The share of agriculture and allied sector (core, excluding forestry and logging) in state GVA has been
close to 12% over the eight years periods, with only mild variations over the years. Within the core
agricultural sector, the share of value added crop production in state GVA has been around 9%, with
some significant variations due to deficiency in rainfall in the state.
Shares (%) of components in GSVA of Agriculture & allied activities (Core) in Jharkhand
2011- 2012- 2013- 2014 2015- 2016- 2017- 2018- 2019- average share of
12 13 14 -15 16 17 18 19 20 7 years (2011-12
to 2017-18)
1. Crops 72 75 73 74 67 70.3 71.2 64 62 71.6
2. Livestock 25 22 24 23 29 25.4 23.5 30 31 24.6
3. Fishing & 3 3 3 3 4 4.3 5.3 6 7 3.7

aquaculture
In 2015-16, the year with unprecedented drought situation across districts of Jharkhand, noticed a
decline crop production by a quarter. Livestock and fishery sector, though, registered positive growth
figures of 4% and 9% respectively to provide some respite to the farming community. It may be noted
that GSVA for the entire economy in 2015-16 also recorded a negative growth of 8%. The performance
of the agriculture sector over the last eight years have been dismal.
Crop sector GVA has also fallen significantly during the last two years-2018-19 and 2019-20 on account
of deficient rainfall and the consequent continuation of drought situation across several districts in
Jharkhand.
Growth in GSVA in Agriculture and Allied Activities at basic prices (Constant 2011-12 prices (%)
2012 2013- 2014- 2015 2016- 2017- 2018- 2019 Growth during
-13 14 15 -16 17 18 19 -20 2011-12 to 2019-20
1. Crops 12 -5 5 -25 29 7 -16 0 -2
2. Livestock -7 3 3 4 7 -2 21 4 35
3. Fishing and 5 9 2 9 25 31 10 12 156

aquaculture
Agriculture & allied 7 -2 5 -17 22 6 -6 2 12

activities (1+2+3)
4. Forestry and 1 1 170 -52 28 -10 -6 5 51

logging
Agriculture, forestry 6 -2 31 -28 23 2 -6 2 18

and fishing
(1+2+3+4)
GSVA at basic prices 8 1 13 -8 9 9 6 6 51

(at constant 2011-
12 prices)
Analysis of Public Spending in Jharkhand
Given the economic status of agricultural households and the trends in the progress (rather stagnation
and deceleration) of GVA in agriculture and allied sector and its components in recent years, it will be
interesting to analyse public spending by the government on agriculture. As we have seen, the
agricultural households of the state are surviving under miserable economic circumstances as reflected
in the figures for monthly expenditure and income of the farming households. Out of 28 States, they
spend the least on agriculture investment as their income from farming barely sufficient for their
survival. The agricultural sector, especially the crop sector, which accounts for 70% of income (31%
directly from crops and additional 39% as agricultural wages) for farming households, has recorded
negative growth over the last eight years and requires impetus from government spending on
agricultural infrastructure including storage capacities, market access, soil health, water harvesting, seed
supply, livestock health protection interventions. In the absence of forthcoming private investment in
agriculture, coupled with existing low level of asset creation in farming sector, the efforts of the state
government for the state agriculture assumes critical significance. The section is devoted to analysis of
government intervention in agriculture sector through various programmes run by the Ministry of
Agriculture, Cooperation and Animal Husbandry.
Public spending in Jharkhand on agriculture and related activities is the lowest among the major states
of India. For the period of five years, from 2013-14 to 2017-18, average annual government expenditure
on agriculture and allied activities in Jhakhand was Rs. 1200 Crore. It amounts to 1.95 % of the Budget
and 0.45 % of the GSDP of the state for these five years. States like Tamilnadu, Karnataka, Maharshtra,
Uttar Pradesh spend at least five times more than Jharkhand spends for agricultural development. The
Chart below shows the agricultural spending by the government for major state and it may be observed
that state with comparable population like Kerala spend three more than the public spending on
agriculture in Jharkhand.
Average actual expenditure on Agriculture and allied activities in major States (2013-14
to 2017-18) (Rs. Crore)
14000
12000
10000
8000
6000
4000
2000 1200
0
a
d
a
sg
na
at
tr
am
la
ak
an
ar
K
P
B
aj
P
ah P
TN
sh
sh
tti
ar
J&
ra
ya
W
U
ih
at
kh
R
ss
di
ha
ar
uj
Ke
ar
B
rn
ar
O
A
G
Ch
H
Ka
Jh
M
Source: Computed from database of Open Budgets India, CBGA, New Delhi
Trends in Share of various divisions of the Ministry in Allocation
Despite the significant need of stepping up public spending, in view of low capacity of farmer
households to save funds for private investment in agriculture and allied activities (they invest 2.5 % of
their household income for productive purposes in agriculture as computed from NSS survey, 2011-12),
the government seems to be obsessed with containing deficits. As the chart below shows, the state is
regularly showing surplus in its revenue account (magnitude being 1-2 percent of GSDP in four years out
of seven years). It may be noted that FRBM Act instructs the States to contain fiscal deficit to 3% of
GSDP without incurring any revenue deficit in government finances so that the fiscal deficit incurred is
utilized for capacity creation purposes. There is massive shortage of human personnel against the
sanctioned post in the department of agriculture (close to 70% of the sanctioned posts are lying vacant
for years now). The state should have recruited workforce for effective implementation of the ongoing
schemes for agricultural development of the state and raising farmers’ income. On the contrary, the
State is continuously compressing revenue expenditure and running revenue account surpluses and
some of the critical schemes that have significance for rainfed farming are being abandoned altogether.
Trends in Revenue Deficit & Fiscal Defict in Jharkhand

7
0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
-1
-2
-3
Revenue Deficit as a % of GSDP Fiscal Deficit as a % of GSDP
Source: Fiscal Policy Strategy Statement and Medium-Term Fiscal Plan; Annual Budget 2020-21,
Jharkhand
The table below clearly shows that agriculture division, which deals with crop development and
undertakes important programmes including RKVY, NMSA, NHM, PMKSY, SHM, Jalnidhi Scheme for
Construction of farm ponds (Dobhas), rice fallow land development scheme etc. that give the state
enough space to formulate and implement development plans for the agriculture sector as per the local
conditions and opportunities, is adversely affected by huge shortage of the manpower and consequently
afflicted the gross underutilization of allocated funds. 72 % of the posts are vacant here. The division of
fishery & dairy taken together show shortage of manpower, vis-à-vis sanctioned strength, to the extent
of 76 % while cooperation division of the department has 84 % positions vacant. Close to half (45%) of
posts in animal husbandry divisions are lying vacant.
Chart- Extent of Vacancy of Sanctioned Posts in various divisions of the Department of Agriculture,
Cooperation and Animal Husbandry, 2020-21
Vacant positions in various divisions of the Ministry (%)
Department-Total 69
fishery & dairy 76
cooperation 84
animal husbandry 45
Agriculture Division 72
0 10 20 30 40 50 60 70 80 90
Source: Fiscal Policy Strategy Statement and Medium-Term Fiscal Plan; Annual Budget 2020-21,
Jharkhand
Out of 15086 sanctioned strength of the department, including all the five divisions, 10450 posts are
vacant. The divisions of agriculture and cooperation (with more than 10000 sanctioned posts) is hit the
most which operating with 23 % of the sanctioned strength.
Chart-Sanctioned & Working Strengths of Human Resources in Agriculture Department of Jharkhand,

2020-21
Santioned & Working strngths in divisions of Agriculture

Department
6000 5570
5000 4708
4000 3673
3000
2006
2000 1585
1135
1000 774
268
0
Agriculrure animal husbandry cooperation fishery & dairy
Sanctione strength working strength

So
urce: Fiscal Policy Strategy Statement and Medium-Term Fiscal Plan; Annual Budget 2020-21, Jharkhand
The only silver lining in the last 6-7 years of financing of agriculture is the trend of allocating more funds
to the agriculture sector in fiscal year 2019-20 and 2020-21. The allocations have significantly increased,
more than doubled to Rs. 3984 Crore and Rs. 3850 Crore for FY 2019-20 BE and 2020-21 BE, when
compared to actual spending of Rs. 1681 Crore in 2017-18 (A). A closer look into the details of the
spending reveals that in the last two years, budgetary allocations for direct transfers of funds under
have increased under Mukhyamantri Ashirvad Yojana and Loan Waiver Scheme in 2019-20 BE and 2020-
21 BE respectively. In should also be noted that the allocations for some other schemes have also
increased, the but the magnitude of increase is less spectacular.
Chart- Trends in Expenditure on agriculture in Jharkhand (Rs. Crore)
Trends in Public Expenditure on Agriculture in Jharkhand (Rs. Crore)
2019-20 (BE) 3984
2018-19 (BE) 2689
2017-18 (A) 1681
2016-17 (A) 1906
2015-16 (A) 1045
2014-15 (A) 704
2013-14 (A) 663
0 500 1000 1500 2000 2500 3000 3500 4000 4500
Source: Detailed Demand for Grants, DDGs- 1,2,9, 53 and 54, Ministry of Agriculture and Animal
Husbandry (Agriculture Division), various years
The share of capital expenditure in total budget for agriculture has increased significantly during 2014-
15 and 2017-18. This increase is due to significant increase in allocations for development of rice fallow
area and construction of small village ponds (Dobhas) to restore rainwater. However, in the recent most
years, capital expenditure has shrunk to practically nothing and only Rs. 5 Crore have been allocated
under capital expenditure in 2020-21 BE.
Chart- Revenue-capital break-up of Agriculture Expenditure (All 5 Divisions) (%)

Revenue-Capital expenditure Break-up of Agriculture Spending (all 5
division) in Jharkhand (%)
120
100 3
10 9
23 29
80
60
97 91
90
40 77 71
20
0
2013-14 (A) 2014-15 (A) 2015-16 (A) 2016-17 (A) 2017-18 (A)
Agriculture Budget Revenue Agriculture Budget Capital

Sou
rce: Detailed Demand for Grants, DDGs- 1,2,9, 53 and 54, Ministry of Agriculture and Animal Husbandry
(Agriculture Division), 2019-20, 2020-21
On account of increase in the direct transfers of funds, the allocations for other divisions (cooperation,
animal husbandry, fishery and dairy) have declined and it is reflected in the two charts presented below.
Trends in Expenditure on Agriculture in Jharkhand (Rs. crore)

100%
231 187 245
79 88 328 115
90% 190
39 39 107 101 140 346
80% 60 278
82 104 336 336 411
125
70%
127 130 209 225 398
60% 159
50%
40% 3345
30% 418 1358 1169 1823
447 637
20%
10%
0%
2013-14 (A) 2014-15 (A) 2015-16 (A) 2016-17 (A) 2017-18 (A) 2018-19 (BE) 2019-20 (BE)
D-1 D-2 D-9 D-53 D-54
On account of diversion of funds to finance direct benefits transfers scheme under agriculture division,
the share of other sectors with agriculture have changed drastically. The average share of agriculture
(crop husbandry) during 20013-14 to 2017-18 (all actual spending figures) used to be 58 % of the total
agriculture budget in the state while the shares of cooperative, animal husbandry, dairy used to be 14%,
12%, 11% and 5 % respectively. Even though, total budget for agriculture has increased in the last years
and it has occurred on account of budget of Rs. 1432 Crore and Rs. 2001 Crore for DBT schemes related
allocations for 2019-20 RE and 2021-21 BE.
Chart- Expenditure by different division of the Department of Agriculture in Jharkhand, 2020-21 BE
average share of different divisions of the Depaaratment of Agricul-

ture in Budgetary Resources (%): 2013-14 to 2017-18
70
60 58
50
40
30
20 14
12 11
10
n
5
ry
io
ve
nd
is
ry
0
ti
er
iv
ba
ra
ai
D
sh
us
D
pe
re
Fi
H
54
‐o
tu
53
al
Co
ul
-
m
d
ic
-
9
ni
an
d
gr
an
-
A
A
em
d
2
em
an
01
-0
D
em
D
d
-
an
d
D
an
em
em
D
D
Source: Detailed Demand for Grants, DDGs 1, 2, 9, 53 and 54; various years, Annual Budget Jharkhand
However, in 2020-21 BE, the share of agriculture division jumped to 79% while those of the remaining
four divisions have fallen drastically as may be noted in the chart below.
Chart- Expenditure by different division of the Department of Agriculture in Jharkhand, 2020-21 BE
% share in agriculture budget, 2020-21 BE, Jharkhand

90
79
80
70
60
50
40
30
20
10 7 8
2 4
0
Agriculture Animal Husbandry Cooperation Fishery Dairy
Source: Detailed Demand for Grants, DDGs 1, 2, 9, 53 and 54; various years, Annual Budget Jharkhand
The chart below shows the expenditure for major expenditure heads withing agriculture division which
clearly depicts that agricultural education, soil conservation, seed protection and distribution related
expenditure have declined sharply. However, allocations for agriculture extension, rice-crop
development and horticulture and organic farming related expenditure have increased in the last few
years
Chart- Trends in Expenditure on major items under agriculture division (crop husbandry) (Rs. Crore)
Expenditure by Agriculture on various heads (excluding DBT & Es-

tablishment Expenditure (Rs. Crore)
141
138
agricultural education
18 167
soil conservation head
15
16
seed
80 96
Agriculture Extension & fair
Mechanisation & Irrigation 119 137
211 353
Rice crops land development
169 238
Horticulture & organic farming
0 50 100 150 200 250 300 350 400
2020-21 BE 2019-20 RE 2018-19 A 2017-18 A
Source: Detailed Demand for Grants, Ministry of Agriculture and Animal Husbandry (Agriculture
Division), 2019-20, 2020-21
It is quite strange to find that the ratio of administrative (establishment) expenditure to program
(schemes) expenditure in Jharkhand is relatively way higher than the values observed across major
states of India. This is due to lower allocations for schemes rather than abnormally higher allocations for
establishment expenditure.
The chart below clearly shows (for FY 2018-19) that the share of allocation on establishment increases
substantially in actual expenditure to what it was in budgeted, simply on account of severe
underspending on scheme expenditure that directly benefits the beneficiaries. Overall, 56 % of the
funds were utilised in the Department under agriculture division. The utilisation ratio under State
schemes (66 %) of the division was way higher than the utilisation rates under CSS-schemes (25 %). The
animal husbandry division funds in 2017-18 and 2018-19 to the extent of 54% and 80 % respectively.
Chart- Utilisation of funds under various heads of the Agriculture division
Utilisation rate (%) of allocations in FY 2018-19 under Department of

Agriculture in Jharkhand (actual expenditure : Rs. 1013 crores)
100 89
80 66
re 52 56
u
60
re
45
it
u
d
it
en
40
t
25
en
p
en
ex
m
20
t
t
ex
ar
en
es
t
0
en
ep
t
em
m
en
SS
m
D
sh
sh
C
e
li
Sc
h
sh
li
b
ft
b
ta
e
li
ta
o
at
b
es
ta
re
Es
St
g
es
u
in
it
g
d
d
in
lu
en
d
c
xp
lu
ex
lE
re
ex
ta
u
re
it
To
u
d
it
en
d
p
en
ex
p
e
ex
u
en
ev
R
Source: Detailed Demand for Grants, Ministry of Agriculture and Animal Husbandry (Agriculture
Division), GoJ, various years
Expenditure under Animal Husbandry Division
The expenditure on animal husbandry in the state during the last two fiscal years have declined sharply,
from Rs. 391 Crore in 2018-19 BE to Rs. 271 Crore and Rs. 246 Crore in 2019-20 BE and 2020-21 BE
respectively. This decline may be dure fiscal constraints imposed by the need to secure funds for
financing of increased allocations for DBT scheme in these two years. It may be noted that
administrative expenditure happens to be static in nature (it increased marginally to compensate for the
pay revisions effected through 7th Pay Commission recommendations), and the decline in overall
allocations is precipitated by severe cut in scheme related expenditure on animal husbandry which
declined to Rs. 127 Crore and Rs. 90 Crore in 2019-20 BE and 2020-21 BE from a level of Rs. 255 Crores
in 2018-BE.
Expenditure on Animal Husbandry in Jharkhand (Rs. Crore)

300
255
250
200
156
150 142 144
136
120 127
102
100 90
50 35
0
2017-18 Actual 2018-19 BE 2018-19 Actual 2019-20 BE 2020-21 BE
Schemes Establishment Expenditure

Source: Based on Detailed Demand for Grants, Ministry of Agriculture and Animal Husbandry (Animal
Husbandry Division), Annual Budget, GoJ, 2019-20, 2020-21
As the Chart below shows, expenditure on the sector have declined primarily on account of the sharp
reduction in allocations for state schemes, from Rs. 241 Crore in 2018-19 BE to Rs. 71 Crore in 2020-21
BE while the share of Centrally Sponsed Schemes (CSS) in these years have remained almost constant at
15 %.
Chart- Disaggregated expenditure on animal husbandry in Jharkhand (Rs. Crore)
Expenditure under Animal Husbandry Division in Jharkhand (Rs. Crore)
300
250 241
200
154
150 142 140
131
119
111
101
100
71
50 37 39 41
27
16
4
0
2017-18 A 2018-19 BE 2018-19 A 2019-20 BE 2020-21 BE
ESTABLISHMENT State Schemes CSS
Source: Based on Detailed Demand for Grants, Ministry of Agriculture and Animal Husbandry (Animal
Husbandry Division), Annual Budget, GoJ, 2019-20, 2020-21
It is striking to note that the share of establishment expenditure in total budget for animal husbandry is
54% and 80% in 2017-18 (A) and 2018-19 (A) while it was budgeted to be 35%, 53% and 63 % for 2018-
19 BE, 2019-20 BE and 2020-21 BE respectively.
Chart- Share of Establishment Expenditure in total expenditure on animal husbandry (%)
Establishment expenditure as % of total expenditure on animal husbandry in

Jharkhand (% share)
90
80
80
70
63
60
54 53
50
40 35
30
20
10
0
2017-18 A 2018-19 BE 2018-19 A 2019-20 BE
Source:
2020-21 BE
Detailed Demand for Grants, Ministry of Agriculture and Animal Husbandry (Animal Husbandry Division),
2019-20, 2020-21
It may be pointed out that to run various programmes for more than 22 lakhs of farmer households
(1.15 crore people), establishment expenditure of Rs. 127 crores (Rs. 110 per person) on animal
husbandry is not a big amount. Second, actual expenditure on establishment turn out be higher than
allocation, probably alluding to the fact that existing human resources of the department are not
sufficient enough to run the programmes. If we compare the allocations and actual expenditure on
schemes of the department for FY 2018-19, there is severe underspending- Rs. 35 Crores was spent out
of total allocations of Rs. 255 Crores (utilization rate being 13.7% only). This shows the low absorption
capacity of the department machinery, apparently referring to shortage of human resources to perform
the tasks.
At more disaggregated level, veterinary services and animal health programmes and other livestock
development (piggery) accounted for Rs. 27 Crore out of 169 crores of allocated amount and Rs. 6 crores
out of Rs. 53 crores as allocation respectively. Rs. 1 crore was spent on extension and training services
while the allocations for the same was Rs 11 crore in 2018-19. Other expenditure heads like cattle and
buffalo development (Rs. 0.3 crore out of 5 crore), poultry development (Rs. 0.00 crore out of the
allocated amount of Rs.16 crore), meat processing like schemes have attracted zero or paltry
expenditure in 2018-19.
The following Chart presents extent of utilization of funds under different divisions of the department
during four years, 2014-15 (A) to 2017-18 (A). It may be noticed that agriculture division which attracted
more than 60% of the fund, records utilization rate of 66%. It may be pointed out here that a major part
of funds utilized pertain to establishment expenditure and the increased capital expenditure related
schemes while under state schemes more than three-fourth of the funds remained unutilized in these
years. The Cooperative division shows a utilization rate of 109 % in these years as those expenditure
pertain to three major items of expenditure- premium for crop insurance, grants in aid to cooperative
societies and construction of headquarters under establishment. While the first two items are static in
nature and budgeted funds are usually transferred for the stated purpose, expenditure on construction
related items exceeded the budgeted amount. The overall expenditure of the department shows an
average utilization rate of 72% which is predominantly reflecting the regular trend of 100% fund
utilization for establishment expenditure and less than average utilization rates for state schemes.
Average Utilisation of Budgetary Rs inesources in Jharkhand under
various divisions of Agriculture Department (%): 2014-15 to 2017-
18
120 109
100
73 77 72
80 66 67
60
40
n
ry
s
io
G
d
ve
is
20
D
n
ry
iv
D
y
ti
sb
ir
D
e
ra
ll
0
a
u
-a
re
D
e
is
H
p
u
g
F
4
‐o
in
lt
5
3
a
cu
d
5
im
-
C
n
d
-
ri
e
n
n
d
g
sp
A
a
n
A
m
a
2
re
1
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-0
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a
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-
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d
D
d
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n
ri
a
m
m
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e
A
D
e
S
D
ource: Detailed Demand for Grants, DDGs- 1,2,9, 53 and 54, Ministry of Agriculture and Animal
Husbandry (Agriculture Division), 2019-20, 2020-21
Schemes with special Relevance to Rainfed Agriculture Households
Jharkhand is primarily a rainfed State, and agriculture infrastructure and input related support to
farmers assumes significance in raising productivity and ensuring sustainability of agriculture and
sustenance of livelihood of the farmer. By all counts, be it district-wise rainfed dependence of
agriculture, or predominance of rice (which is 100 % rainfed and which occupies 80 % of the sown area
in Jharkhand) in cropped area or the fact that only 10-12 % of farmers spend on irrigation, it is logical to
conclude that 90 of the farming activities in Jharkhand is exclusively rainfed and 10 % may be ascribed to
irrigated cultivation. Given that majority of the state schemes specifically, in effect, target rainfed crops
and the majority of important CSS programmes including RKVY, NMSA, NHM, SHM, PMKSY etc. give
enough flexibility to States to prepare agriculture plan to suit agro-climatic conditions and need of the
local farmers, it may be assumed that 90 % of allocations for different schemes pertain to addressing
needs of the rainfed farmers. Further, procurement of foodgrains in Jharkhand is nominal, and majority
of the production of kharif and rabi crops are for domestic consumption purposes only. The issue of MSP
doesn’t directly matter for sowing of crops, even though they affect market prices, and thereby affecting
food-surplus and food-deficit households’ net income. We have already seen that for farmer households
in Jharkhand, expenditure on seeds (19%), fertilisers & chemicals (32%), labour charges (23%) and
expenses on machines, rent of land etc. (24%) constitute the costs of farming of crops, along with a
miniscule 2.5% of expenditure on irrigation.
It is precisely the objective of the department of agriculture to make farming viable, sustainable and
remunerative through implementing programmes targeted at land development, availability of water
for crops, provisioning of seeds and other inputs including subsidised provisioning of mechanisation of
agriculture and ensuring relief measures in the event of natural calamities destroying crops. There are
many schemes like Rashtriya Krishi Vikas Yojana (RKVY), National Mission for Sustainable Agriculture
(NMSA), Soil Health Mission, Paramparagat Krishi Vikas Yojana (PKVY), Pradhanmantri Fasal Bima
Yojana, Double Cropping Rice Fallow Scheme , Organic Certification and Promotion of Organic Fertilizer
Production, Exchange, Distribution and Seed Production of Crop Seed on Subsidy, Scheme for Soil
Reclamation Soil Management for Acidic Soil, Micro Irrigation Scheme, Construction of ‘Dobhas’ (small
ponds to restore rainwater for irrigation purposes), Distribution of Agriculture equipment to farmers
women SHG etc, Horticulture Development Scheme that gives State Government enough scope for
formulating agricultural plans to suit local conditions and requirement of the farmers. During the recent
most two Budget years, we observe a clear pattern of shift in financing of agriculture- a huge proportion
of budgetary allocations are apportioned for providing Cash relief to farmers (Mukhyamantri Krishi
Aashirwad Yojna initiated in 2019-20 BE which is replaced by Loan Waiver Scheme for Farmers and
Paddy Production and Market Accessibility Assistance in 2020-21 BE).
The farmers of the State are under tremendous stress on account of crop losses due to recurring
drought situation in majority of the district of the State. In this situation, provisioning of cash relief to
distressed farmers is indeed a welcome step by the government and the cash in hand will allow farmers
to revive agriculture by spending on inputs and land development activities.
However, the flip side of the story is that the allocations for schemes relevant for agricultural
infrastructure and productive efficiency of farming have received less priorities in the last two budget
years. The allocations for a range of schemes have been reduced and some of the schemes have been
discontinued altogether in 2019-20 BE and 2020-21 BE. Discontinued schemes include Sub Mission on
Agricultural Mechanization Scheme (CSS), National Mission on Oil Seeds and Oil Palm (CSS), National
Mission for Sustainable Agriculture (NMSA, a CSS scheme), Micro Irrigation Scheme (MI), Mukhyamantri
Krishi Aashirwad Yojna (State Scheme, DBT-oriented), Plan for Apiculture (State Scheme), Scheme for
Soil Reclamation Soil Management for Acidic Soil (State Scheme), Interest Subvention (State Scheme,
DBT-oriented), Double Cropping Rice Fallow Scheme ((State Scheme targeting food grain crops),
Conversion of Fallow Land into Cropped Area (State Scheme targeting food grain crops), Special Crop
Development Scheme (State Scheme targeting food grain crops). The discontinuity of these schemes has
been forced upon the department, apparently on account of allocation of substantial sum of money
towards loan waiver scheme.
‘Jalnidhi’ Scheme under head Soil and Water conservation to maintain and repair water sources for
agriculture and Development of Waste Land & Fallow land scheme (S & WC) (under capital account head
soil & Water Conservation) aimed at restoring rainwater to be used for agricultural purposes in the State
had seen substantial allocations and high rates of utilisation of funds allocated during FY 2017-18 and FY
2018-19. However, in FY 2020-21 the allocation for ‘Jalnidhi’ Scheme has been reduced to Rs. 1 Crore
while actual spending was Rs. 100 Crore and 90 Crore in 2017-18 and 2018-19 and 2019-20 BE allocation
for the same was Rs. 150 Crore. For Development of Waste Land & Fallow land scheme, actual spending
for 2017-18 and 2018-19 was Rs. 299 and Rs. 260 Crores, with an allocation of Rs. 110 Crore for 2019-20
BE, the allocation for 2020-21 BE has been reduced to Rs. 1 Crore.
Paramparagat Krishi Vikas Yojana (PKVY) scheme has the objective is to produce agricultural products
free from chemicals and pesticides residues through adopting ecofriendly, low-cost farming
technologies. Conversion of land into Organic by suitable organic cropping systems, Integrated manure
management, Custom Hiring Centre (CHC) are key component which give States to formulate plans for
agricultural development to suit local requirements and conditions of a rainfed agrarian structure.
Another scheme with very profound promise of transforming agriculture into a sustainable and viable
occupation is the Rastriya Krishi Vikas Yojana (RKVY). It gives considerable autonomy and flexibility to
States for planning and executing programmes for incentivising investment in agriculture as per
requirements of the local conditions of rainfed farming for a State like Jharkhand. Soil Health
Management (SHM) Scheme under National Mission for Sustainable Agriculture (NMSA) aims at
promoting Integrated Nutrient Management (INM) through judicious use of fertilisers in conjunction
with organic manures and bio-fertilisers for improving soil health and its productivity and strengthening
of soil and fertiliser testing facilities to provide soil test-based recommendations to farmers for
improving soil fertility. The Scheme assumes significance in Jharkhand where soil quality is deteriorating
incessantly and the state is witnessing deficient rainfall in successive monsoon seasons. With focus on
integrated farming, water use efficiency, soil health management and synergizing resource conservation,
National Mission for Sustainable Agriculture (NMSA) Scheme is being implemented with the objective of
enhancing agricultural productivity, especially in rainfed areas.
Despite the stated critical importance and inherent potential of these schemes for agricultural
transformation in a rainfed agriculture state like Jharkhand, in recent years these schemes have received
trifling fiscal priorities. For RKVY, actual spending in 2017-18 and 2018-19 was Rs. 2 and Rs. 33 Crore
respectively while the 2018-19 BE allocation was Rs. 240 Crore. In effect, 15 percent of the allocated
funds were utilized in FY 2018-19. The allocation for 2020-21 BE for the scheme has been reduced to Rs.
100 Crore. PKVY scheme has been abandoned in 2020-21 BE while no amount was actually spent under
the scheme in FY 2018-19 out of budgetary allocation of Rs. 12 Crore. Management of Soil Health and
Fertility scheme has been also meted out the similar fiscal treatment and actual spending in FY 2017-18
and FY 2018-19 was Rs. 5.3 Crore and 0.5 Crore while allocations for 2018-19 BE and 2020-21 BE are Rs.
14 Crore and Rs. 3 Crore respectively. National Horticulture Mission (NHM) and Pradhan Mantri Krishi
Sinchayee Yojana are two CSS-schemes that have retained the trends in allocation, though a fund
utilization is poor in these schemes as well. For NHM, out of Rs. 75 Crore allocation in 2018-19 BE a sum
of Rs. 4 Crore was spent while for PMKSY, Rs 34 Crore was actually spent out of an allocation of Rs.60
Crore in FY2018-19. Overall, for all CSS scheme taken together, Rs. 143 Crore and Rs. Rs. 134 Crore were
spent in FY 2017-18 and FY 2018-19 while the budgetary allocations for fiscal years 2018-19, 2019-20
and 2020-21 BE are Rs. 524 Crore, Rs. 338 Crore and Rs.370 Crore respectively. In FY 2018-19, the extent
of under-utilistion of funds under CSS is a whopping 75%. In the last budget years, NMSA, NMOOP, Sub
Mission on Agricultural Mechanization (SMAM) and PKVY schemes have been abandoned by the
department of agriculture.
Underutilisation of Funds under CSS schemes in Jharkhand in 2018-
19 (%)
CSS- crop husbandry (Rs. 524 75
crore)
100
Soil Health (Rs. 14 crore) 96

100
PMKSY (Rs. 60 crore) 43

86
NMAET (Rs. 35 crore) 21

35
NFSM (Rs. 60 crore) 58

69
NHM (Extn) (Rs. 75 crore) 94

0 10 20 30 40 50 60 70 80 90 100
So
urce: Detailed Demand for Grants, DDG-01, Agriculture Division, Annual Budget 2020-21, Jharkhand
Patterns of Fund Utilisation under State Schemes (figures in Rs. Crore)
Under agriculture division of the Department, the underutilisation rate for revenue and capital
expenditure for State schemes are 40 % and 23 % respectively, affecting an overall underutilisation rate
of 34 %. Some of the State Schemes with significant prospects and promise for transforming rainfed
agriculture in Jharkhand including Conversion of Fallow Land into Cropped Area scheme, Development
of Waste Land & Fallow land (S & WC) under capital head of soil and water conservation, Double
Cropping Rice Fallow Scheme (FG), Special Crop Development Scheme (FG), Development of Waste Land
& Fallow land (S & WC) under capital head of soil and water conservation, Jalnidhi (S & WC)) under soil
and water conservation head etc. have been abandoned by the department. All state schemes in
operation have experienced severe cut in budgetary priorities in the current Budget and allocation have
been reduced to half for the schemes like Horticulture Development Scheme (CC), Organic Certification
and Promotion of Organic Fertilizer Production (M&F), Agriculture equipment to farmers women SHG
(AM). It is interesting to note that out of Rs. 2449 Crore of state schemes allocation, Rs. 5 Crore is
allocated under capital expenditure head for the FY 2020-21 BE.
Allocation and Utilisation rate (%) of funds of Agriculture Division (Rs. Crore)
underutil
2017-18 2018- 2018- 2019- 2020- isation in
(A) 19 (BE) 19 (A) 20 (BE) 21 (BE) FY 2018-
19
Amount %
Establishment Expenditure 168 198 177 204 229 21 11
State Schemes
Conversion of Fallow Land into Cropped Area

for food grains (FG) 37 20 11 5 9 47
Double Cropping Rice Fallow Scheme (FG) 11 32 17 20 15 48
Exchange and Seed Production - Subsidy (FG) 25 50 25 20 15 25 51
Special Crop Development Scheme (FG) 14 22 15 1 7 30
Horticulture Development Scheme (CC) 27 40 30 75 40 10 26
Organic Certification and Promotion of Organic

Fertilizer Production (M&F) 42 65 52 80 46 13 20
Agriculture equipment to farmers women SHG

(AM) 180 49 100 50 131 73
Mukhyamantri Krishi Ashirwad Yojana (Direct

Benefit Transfers, DBT) 2000
Paddy Production and Market Accessibility

Assistance (DBT/FG) 200
Loan Waiver Scheme for Farmers (DBT) 2000
Jalnidhi (S & WC)) under soil and water

conservation head 100 100 90 150 1 10 10
Grants to Birsa Agriculture University under

agricultural education head 112 93 91 50 50 2 2
Rural Agriculture Market (other agricultural

programmes) 37 24 0 4 4 24 100
Development of Waste Land & Fallow land (S &

WC) under capital head of soil and water
conservation 299 315 260 111 1 55 17
Rev. Expenditure under State Schemes 421 732 443 2689 2444 289.3 40
Capital Exp. Under State Schemes 336 339 260 115 5 78.6 23
State Schemes-Total 757 1071 703 2804 2449 368 34
Source: Detailed Demand for Grants, DDG-01, Agriculture Division, Annual Budget 2020-21, Jharkhand
Schemes of the Departments of Animal Husbandry

Livestock Health & Disease Control” (LH&DC)
Livestock sector plays an important role in the national economy and socio-economic development of
Jharkhand and a quarter of their annual income they derive from farming of animals. The prevalence of
variety of diseases inflict substantial damage to the prospects A significant obstacle for the growth in
terms of production from livestock and poultry. For promotion of health of livestock and animals, a
Centrally Sponsored Scheme “Livestock Health & Disease Control” (LH&DC), which envisages control &
containment of economically important animal diseases by providing central financial assistance to the
States assumes critical significance. Under this scheme, vaccination is carried out for control of diseases
like Foot and Mouth Disease (FMD), Peste des Petits Ruminants (PPR), Brucellosis, Anthrax, Hemorrhagic
Septicemia (HS), Black Quarter (BQ), Classical Swine Fever, Ranikhet disease, etc. The scheme has
component for establishment & strengthening of veterinary hospitals and dispensaries and the training
of veterinarians and paramedical. Foot and Mouth Disease (FMD) Control Programme is another CSS
programme under National Mission for Bovine Productivity and Mobile Veterinary Clinic (R.K.V.Y.-
RAFTAR) is are being implemented by the department. Under State Schemes, Becan Factory (Meat
Processing) under Integrated Poultry Development, Hospital & Dispensaries (Veterinary), Pig/ Goat/
Broiler Poultry development, Animal Breeding Farm under Integrated Farming System are the prominent
ones.
Allocations under the Animal husbandry division for FY 2-19-20 BE (Rs. 278 Crore) and 2020-21 BE (Rs.
253 Crore) are significantly less than the allocation in 2018-19 BE (Rs. 411 crore). Out of allocations of
Rs. 411 Crore in FY 2018-19, actual spending was Rs. 180 Crores, of which establishment expenditure
was Rs. 144 Crore and programme-related expenditure being Rs. 36 Crores. Overall, under utilisation
rate was 56 % in FY 2018-19 while underutilisation rates for programme related (schemes) allocations
turned out to 92 % for revenue expenditure and 71 % for capital account head. It may be noted that in
FY 2017-18, the share of programme related expenditure in total expenditure was recorded to be 78 %.
It may be noted that live meat component is the most significant source of income for farmer
households from animal husbandry. Out of an allocation of Rs. 12 Crore for the scheme ‘Becan Factory
(Meat Processing) under Integrated Poultry Development’ in FY 2018-19, no amount was actually spent
and the recent budget, the scheme is discontinued. Under Pig/ Goat/ Broiler Poultry development
scheme, Rs. 2 Crore was spent out of allocated amount of Rs. 126 Crore in the same year. Allocations for
the schemes have continued to decline in 2019-20 BE (Rs. 52 Crore) and 2020-21 BE (Rs. 33 Crore). The
scheme named ‘Animal Breeding Farm under Integrated Farming System’ didn’t see any spending out of
allocation of Rs. 30 Crore in 2018-19 BE. Rs. 8 Crore was allocated in 2019-20 BE and eventually in 2020-
21 BE, the scheme was discontinued.
Under Centrally Sponsored Schemes, three major programmes namely Mobile Veterinary Clinic
(R.K.V.Y.-RAFTAR), National Mission for Bovine Productivity, Livestock Health & Disease Control (PPR
Control Programme) are implemented in the State. For these schemes, out of an allocation of Rs. 19
Crore, actual spending in 2018-19 was Rs. 8 Crore. For the next two fiscal years, allocations have been
pegged at Rs. 20 Crore. An allocation of Rs. 6 Crore for Cattle Census programme, a Central Sector
Scheme, was announced and nothing of it was actually spent. Following the pattern of other schemes, in
two subsequent years, allocations of Rs. 5 Crore and Rs. 4 Crore have been made.
On account of huge underspending for different schemes implemented by the Animal Husbandry
division, it turns out that majority of the spending actually reflect the spending for running the
establishment.
Trends in allocation and Underutilisation of funds for Schemes under Animal Husbandry Department in
Jharkhand (Rs. Crore)
2017- 2018- 2018- 2019- 2020- Underutilisation of funds
18 19 19 20 21 in FY 2018-19
(A) (BE) (A) (BE) (BE)
amount %
Establishment Exp 122 133 144 144 157 -11 -8
State Schemes
Becan Factory (Meat Processing)
under Integrated Poultry Development 0 12 12 0 12 100
Government livestock farm 5 9 5 8 6 4 40

Hospital & Dispensaries (Veterinary) 8 11 5 7 9 6 52
Pig/ Goat/ Broiler Poultry
development 126 2 52 33 123 98
Animal Breeding Farm under
Integrated Farming System 30 8 30 100
State Schemes -Revenue Exp (2403) 23 222 18 99 66 204 92
State Schemes- Capital Expenditure
(4403) 9 30 9 10 5 21 71
Central Schemes (2403)

Mobile Veterinary Clinic (R.K.V.Y.-
RAFTAR) 2 3 0
State Scheme under national Mission
for Bovine Productivity 1 2 0 1 2 2 87
Livestock Health & Disease Control
(PPR Control Programme) 1 2 3 1 100
CSS_2403-Animal Husbandry 2 19 8 20 20 11 56
CS scheme- Cattle Census (3454) 0 6 0 5 4 6 94
Total Expenditure of Animal
Husbandry Department 156 411 180 278 253 231 56
Establishment expenditure as % of 78 32 80 52 62
total expenditure
Source: Detailed Demand for Grants, DDG-02, Animal Husbandry Division, Annual Budgets 2019-20 &
2020-21, Jharkhand
The Cooperation Division is responsible for implementation of ‘Premium Subsidy and Other Expenditure
for Crop Insurance Scheme and Subsidy for Compensation of Farmers Crops Scheme’. Spending on these
schemes are Rs. 83 Crore, Rs. 90 Crore, Rs. 140 Crore and Rs. 140 Crore for FY 2017-18 (A), 2018-19 (A),
2019-20 (BE) and 2020-21 (BE) respectively. Other schemes relate to provision of grants in aid to various
societies/committees.
Schemes run by the Department of Fishery
The fishery division implements State schemes like Reclamation and Development of Tank and
Reservoir Fisheries, Fisheries extension Research and Training scheme, Construction of rearing pond,
Establishment of Fish Seed Hatchery and Ved Vyas Aawas Yojana for Fisherman. The allocations for
these state schemes have declined significantly during the last two Budgets. The allocations for FY2018-
19 BE, 2019-20 BE and 2020-21 (BE) are Rs. 109 Crore, Rs. 84 crore and Rs. 56 Crore respectively. In FY
2018-19, 25 % of the funds under these schemes remained unutilised.
The Department also runs Blue Revolution Scheme (a CSS programme) and the allocations have
remained stagnant at Rs.16 Crore in these 3 years. In FY 2018-19, 56 % of the funds under this schemed
remained untilised. The share of establishment expenditure in total expenditure has remained roughly
15 % over the last four budget years.
Trends in Allocations and Utilisation of Funds of Fishery Department in Jharkhand (Rs. Crore
2017 2018- 2018- 2019- 2020-21 (BE) Underutilisation of
-18 19 19 20 funds in FY 2018-
(A) (BE) (A) (BE) 19
amount %
State Schemes
Reclamation and 20 32 27 28 32 4 14
Development of Tank and
Reservoir Fisheries (2405)
Fisheries extension Research 5 8 6 9 9 2 23
and Training scheme (2405)
Construction of rearing pond 6 2 2 4 3 0 11
(4405)
Ved Vyas Aawas Yojna for 36 33 32 25 1 3
Fisherman (4405)
Establishment of Fish Seed 0 8 8 8 2 0 2
Hatchery (4405)
State Schemes 74 109 84 84 56 25 23
CSS-Schemes (Blue revolution 16 17 7 16 16 9 56
Total- Fishery Department 101 140 105 115 88 34 25
Source: Detailed Demand for Grants, DDG-53, Fishery Division, Annual Budget, 2019-20 & 2020-21,
Jharkhand
Schemes run by the Depart of Dairy Division
The Dairy Division implements Technical Input Programme, Training Extension and Skill Development,
Milk Procurement Processing & Marketing, Beneficiaries Oriented Programme, Gift Milk to School
Children under State schemes. The allocations for these State schemes have declined during the last
three Budget Years- allocations being Rs. 285 Crore, Rs. 215 Crore and Rs. 142 Crore for FY 2018-19 BE,
2019-20 BE and 2020-21 BE. In 2017-18, actual spending was Rs. 158 Crore while in 2018-19 actual
spending was Rs. 133 Crore and 53 % of funds remained unutilised in the fiscal year 2018-19. In 2018-19,
for the scheme Technical Input Programme, entire allocation of Rs. 80 Crore was utilised.
National Livestock Mission (NLM), Dairying component under RKVY and National Programme for Dairy
Development (NPDD) are the centrally sponsored schemes implemented by Dairy Division and no
amount was spent out of Rs. 21 Crore allocated for these three CSS-programmes in FY 2018-19. The
allocation for 2019-20 and 2020-21 for the three schemes are pegged at Rs. 17 Crore. Overall, 56 % of
the funds remained unutilised in Dairy Division in FY 2018-19.
Allocation and Utilisation of Funds for Schemes under Department of Dairy Division (Rs. Crore)
2017- 2018- 2018- 2019- 2020- underutilisation
18 19 19 20 21 in FY 2018-19
(A) (BE) (A) (BE) (BE)
Amount %
State Schemes
Technical Input Programme 17 80 0 28 12 80 100
Training Extension and Skill Development 8 13 8 5 9 5 35

Milk Procurement Processing &
Marketing 81 108 70 25 25 38 35
Beneficiaries Oriented Programme 72 49 111 60 23 32

State Schemes-Total 158 285 133 215 142 152 53
CSS
National Livestock Mission (NLM) 7 5 0 5 5 5 100
Dairying component under RKVY 10 0 10 10 10 100

National Programme for Dairy
Development 6 0 2 2 6 100
CSS-Total 7 21 0 17 17 21 100
Total- Dairy Department 187 328 143 245 171 185 56
Source: Detailed Demand for Grants, DDG-54, Dairy Division, Annual Budget, 2019-20 & 2020-21,
Jharkhand
The section clearly suggests that allocations made for different schemes under all five divisions of the
Ministry are quite inadequate with relation to needs of the sector. The more critical problem ids the
continuous underspending for almost all the schemes of the department. The problem of
underutilisation being more acute for the Centrally Sponsored Schemes where any spending must
comply with the conditions imposed by the Central Ministry for the use of funds.
There is discontinuity in the implementation of the Scheme. There is a clear pattern that allocated funds
under various schemes are not utilised (and in many cases underutilisation rate is 75-100 percent of the
allocated amount), apparently on account of inadequate manpower for the implementation of the
scheme at the grassroot level. Consequently, allocations for those schemes are reduced in subsequent
years, before abandoning the schemes altogether.
Summary of Findings
The monthly average income per agricultural household remained Rs 4,701 in Uttarakhand, Rs 4,721 in
Jharkhand, Rs 4,923 in Uttar Pradesh and Rs 4,976 in Odisha. Haryana recorded the highest farmer’s
monthly average income of Rs 14,434.
Agricultural households (AHHs) Investment in Agriculture in Jharkhand is 2.5% of agricultural income

while all India average is 8. States like Odisha (27%), Karnataka (22%), Punjab (17%) and Tamil Nadu
(13%) and Madhya Pradesh (12%) spend more than 10% of their agriculture income for productive
investment in agriculture.
Prevalence of Poverty among Rural Households- Chhattisgarh (45%), Jharkhand (41 %), Madhya Pradesh
(36 %), Odisha (36%), Bihar (34 %), Assam (34%) and Uttar Pradesh (30%) were among the leading States
with prevalence of rural poverty.
Size of AHHs and Agriculture Sector Income- There are 22.4 Lakh agricultural households in Jharkhand
and 98 % of them practice cultivation of crops and 63 % are involved in farming of animals. Agricultural
household’s annual income is estimated to be Rs. 12690 crore for all households taken together for the
entire state in 2011-12.
Sources of Income of AHHs- Wages constitute 39% of the income of the agricultural households,
cultivation of crops 31% of the income, farming of animals 25% and non-farm business 5% of monthly
farm income of Rs. 4711. Animal husbandry accounts for 25 % of the net income of agricultural
households in Jharkhand, while it is 12% at all India level.
Net Rate of Return on Crop Expenditure- Jharkhand (259%) is placed among the States showing a rate of
net return on crop expenditure of more than 250 % while Andhra Pradesh (37%) and West Bengal (56%)
were the states recoding lesser rates of return as compared to all India figures of 153%. 86 % of the
farmers in the State are marginal/small landholders (owning land of sizes 0.01-0.4 and 0.41-1.00
Hectares), and the returns on crop expenses for them ranges between 237% to 268%.
Annual expenditure on crop production in Jharkhand was Rs.6852 per agricultural household (AHH) (the
least among the major states of India, with all India the figure was Rs. 26300). Assam (Rs. 9000), Odisha
(Rs. 12000), Chhattisgarh (Rs. 14000), Bihar (Rs. 17000), Rajasthan (21000), Uttar Pradesh (Rs. 21000)
and West Bengal (Rs. 22000) were among the States recording figures considerably less than all India
level while the figures for Punjab, Haryana and Andhra Pradesh were Rs. 141000, Rs. 75000 and Rs.
74000 respectively.
Costs of Farming of Crops- per AHH crop expenditure in Jharkhand, Rs. 6852 per annum, is just a quarter
of all India level expenditure (Rs. 26000) and merely 5% of the expenditure in Punjab (with an
expenditure of Rs.1,41,000).
Constituents of Expenses on Crop- seeds (19%), fertilisers & chemicals (32%) labour charges (23%) being
main constituents of costs of farming of crops while irrigation accounts for merely 2 %. while 94%, 99%,
55% and 85 % of the agricultural households incur expenditure on inputs like seeds, fertilisers, chemicals
and labour respectively; only 12.8 % of the households incur any expenditure on irrigation.
Annual Spending on farming of animals- Jharkhand’s AHHs spend Rs. 500 crore per year (0.45 % of all
India expenditure) while Uttar Pradesh (Rs. 19000 crore), Rajasthan (Rs. 13000 crore), Maharashtra (Rs.
12000 core), Gujarat (Rs. Rs. 9000 crore). Receipts earned per household in Jharkhand (Rs. 29000) is
almost comparable with figures of all India level receipts per household (Rs. 31000)
Net Rate of Return on expenses on farming of animals- All India level net return on annual expenses is
88%, Jharkhand recorded return rate of whopping 755%. Odisha (482%), Assam (201%), Andhra Pradesh
(158%) and Madhya Pradesh (142%) have also recorded astounding returns.
The share of Jharkhand in all India annual earnings from sale of milk (Rs. 137603 crore) is miniscule, 0.15
%. The share of Jharkhand in all India receipts from sale of live animals (Rs. 35,095 crore) is 11%.
Marginal & small landholding agriculturists contribute 96 % of the receipts from farming of animals
Fallow Land-31.5 per cent of the total geographical area of 79.70 lakh ha in Jharkhand while 29 % of the
geographical area was categorized as cultivable and 27 % were reported to be forest.
Sown Area- 16%-19% of the geographical area is under sown area.
Rainfall Pattern- Normal rainfall in Jharkhand is estimated at 1400 mm and more than 70% of the rainfall
accrue in the monsoon season (June-September). In 2019-20, the overall deficit of rainfall in the state
was more than 20% and this trend in deficient rainfall has persisted during the last 4-5 years.
Deficient Rain- Among the worst hit districts are Pakur, Latehar, Ranchi, Dumka, Bokaro, Khunti, Gumla
and Giridih that recorded a deficit in rainfall in the range of 25%-42% and they received monsoon
rainfall in the range of 644 mm – 754 mm in 2019-20.
Area under Kharif & Rabi Crops-Based on District Agriculture Plan Database: 21.44 lakh hectares of land
was reported under cultivation, of which 1820 lakh ha (85%) was under Kharif crops and 324 lakh ha
under rabi crops (15%). Among the kharif crops, 14.46 lakh hectares was under rice cultivation (79.4%),
maize (11%), pigeonpea (4.5%), blackgram (2.2%). These crops together constituted 97.1% of the area
under kharif crops. Under rabi crops, maize (60.2%), wheat (17.3%), chickpea (6.7%), mustard (5.1%),
pea (4.7%) and lentil (2.8%) are the top-5 crops together constituting 96.6% of the area under
cultivation.
Crop Area under Horticulture: 1. 5 lakh- 2 lakh hectares of land. Tomato (0.2 lakh ha), potato (0.2 lakh
ha), cauliflower (0.2 lakh ha), cabbage (0.16 lakh ha), brinjal (0.12 lakh ha), okra (0.09 lakh ha) and
ladyfinger (0.06 lakh ha) are prominent vegetable crops grown in the state, together constituting 70% of
the area under horticulture crops.
Rainfed Area- Out of 18.43 lakh ha net sown area, net rainfed sown area of 15.46 lakh ha constitutes
84%. Overall cropping intensity (ratio of net sown area to gross sown area) in Jharkhand in Jharkhand is
115%. The cropping intensity for rainfed area is 117 which is larger than the cropping intensity of 109 in
irrigated area of Jharkhand.
Rainfed Intensity in Districts- Dhanbad (95%), Giridih (91%), Saraikela (91%), Koderma (90%), Palamau
(90%), E. Singhbhum (88%), Ranchi (87%) and Hazaribagh (86%) are among the districts having rainfed
intensity of cultivation larger than average for the State.
Crop-wise Rainfed Intensity- Rice cultivation, which constitutes 60 % of the gross cropped area (kharif
and rabi together) is almost exclusively (98%) under rainfed farming. Maize and Pulses, that constitute
13.2% and 10.6 % of the gross cropped area respectively, are predominantly rainfed and 93 % of the
cultivation for both of these crops depend exclusively on rainfall. 62% of horticulture crops (constituting
7.8% of gross cropped area) is rainfed. More than half (52%) of the Oilseeds crop, that constitute 3.6 %
of the gross cropped area of the State, is dependent on rainfall. 15 % of the wheat crop area (that
constitute 4.6% of the gross cropped area in the state) is rainfed.
Share of various crops in Kharif & Rabi Crop Production- Out of total production of 26.5 lakh tonnes of
foodgrains, 90% are grown during kharif season while 10% in rabi season. In kharif crops, production of
rice, maize and pulsed accounts for 83%, 12% and 5% respectively. Within rabi crops production, the
shares of wheat, pulses and oilseeds are 50%, 37% and 7% respectively.
Value added in crop sector in the state was Rs. 13,421 crore in 2011-12 and it was Rs. 13,160 crore in
2019-20! The crop sector registered an overall negative growth of 2% over these 8 years. The
performance of the agriculture sector over the last eight years have been dismal.
Doubling Time for farmer Income- The share of agriculture and allied sector (core, excluding forestry and
logging) in state GVA has been close to 12% over the eight years periods. Taking the core sectors of
agriculture and allied activities including crop, livestock and fishery, value added increased from Rs.
18760 in 2011-12 to Rs. 21060 in 2019-20, an overall increase of 12%, a figure 1.5% per annum. At this
rate of growth, it will take 47 years to double the real income of agriculturists of Jharkhand.
Findings from analysis of Government Expenditure on Agriculture & Allied Activities in Jharkhand
For the period of five years, from 2013-14 to 2017-18, average annual government expenditure on
agriculture in Jhakhand was Rs. 1200 Crore, which is 2 % of the Budget and 0. 5 % of the GSDP (annual
average). States like Tamil Nadu, Karnataka, Maharashtra and Uttar Pradesh spent at least five times
more than what Jharkhand spent for agricultural development. State with comparable population like
Kerala spends three times more than the quantum of public spending done for agriculture by Jharkhand.
The allocations have significantly increased, more than doubled to Rs. 3984 Crore and Rs. 3850 Crore for
FY 2019-20 BE and 2020-21 BE, when compared to actual spending of Rs. 1681 Crore in 2017-18 (A).
Direct transfers of funds under have increased under Mukhyamantri Ashirvad Yojana and Loan Waiver
Scheme in 2019-20 BE and 2020-21 BE respectively.
The average share of agriculture division (crop husbandry) during 20013-14 to 2017-18 (all actual
spending figures) used to be 58 % of the total agriculture budget in the state while the shares of
cooperative, animal husbandry, dairy used to be 14%, 12%, 11% and 5 % respectively.
Within crop development sector, agricultural education, soil conservation, seed protection and
distribution related expenditure have declined sharply. However, allocations for agriculture extension,
rice-crop development and horticulture and organic farming related expenditure have increased in the
last few years
The share of capital expenditure in total budget for agriculture has increased significantly during 2014-
15 and 2017-18. In recent most years, capital expenditure has shrunk to practically nothing and only Rs.
5 Crore have been allocated under capital expenditure in 2020-21 BE.
The expenditure on animal husbandry in the state during the last two fiscal years have declined sharply,
from Rs. 391 Crore in 2018-19 BE to Rs. 271 Crore and Rs. 246 Crore in 2019-20 BE and 2020-21 BE
respectively. The decline is precipitated by severe cut in scheme expenditure to Rs. 127 Crore and Rs. 90
Crore in 2019-20 BE and 2020-21 BE from a level of Rs. 255 Crores in 2018-BE; primarily on account of
the sharp reduction in allocations for state schemes, from Rs. 241 Crore in 2018-19 BE to Rs. 71 Crore in
2020-21 BE
The allocations for a range of schemes have been reduced and some of the schemes have been
discontinued altogether in 2019-20 BE and 2020-21 BE. Discontinued schemes include Sub Mission on
Agricultural Mechanization Scheme (CSS), National Mission on Oil Seeds and Oil Palm (CSS), National
Mission for Sustainable Agriculture (NMSA, a CSS scheme), Micro Irrigation Scheme (MI), Mukhyamantri
Krishi Aashirwad Yojna (State Scheme, DBT-oriented), Plan for Apiculture (State Scheme), Scheme for
Soil Reclamation Soil Management for Acidic Soil (State Scheme), Interest Subvention (State Scheme,
DBT-oriented), Double Cropping Rice Fallow Scheme ((State Scheme targeting food grain crops),
Conversion of Fallow Land into Cropped Area (State Scheme targeting food grain crops), Special Crop
Development Scheme (State Scheme targeting food grain crops).
For RKVY, actual spending in 2017-18 and 2018-19 was Rs. 2 and Rs. 33 Crore respectively while the
2018-19 BE allocation was Rs. 240 Crore. In effect, 15 percent of the allocated funds were utilized in FY
2018-19. The allocation for 2020-21 BE for the scheme has been reduced to Rs. 100 Crore.
PKVY scheme has been abandoned in 2020-21 BE while no amount was actually spent under the scheme
in FY 2018-19 out of budgetary allocation of Rs. 12 Crore.
National Horticulture Mission (NHM) and Pradhan Mantri Krishi Sinchayee Yojana are two CSS-schemes
that have retained the trends in allocation, though extent of fund utilization is poor in these schemes as
well. For NHM, out of Rs. 75 Crore allocation in 2018-19 BE a sum of Rs. 4 Crore was spent while for
PMKSY, Rs 34 Crore was actually spent out of an allocation of Rs.60 Crore in FY2018-19.
In FY 2018-19, the extent of under-utilisation of funds under CSS is a whopping 75%.

Under agriculture division of the Department, the underutilisation rate for revenue and capital
expenditure for State schemes are 40 % and 23 % respectively, affecting an overall underutilisation rate
of 34 %.
Under Centrally Sponsored Schemes, three major programmes namely Mobile Veterinary Clinic
(R.K.V.Y.-RAFTAR), National Mission for Bovine Productivity, Livestock Health & Disease Control (PPR
Control Programme) are implemented in the State. For these schemes, out of an allocation of Rs. 19
Crore, actual spending in 2018-19 was Rs. 8 Crore.
Under State Schemes, Meat Processing under Integrated Poultry Development, Hospital & Dispensaries
(Veterinary), Piggery/ Poultry development, Animal Breeding Farm are the prominent ones.
Out of an allocation of Rs. 12 Crore for the scheme Meat Processing scheme in FY 2018-19, no amount
was actually spent and in the recent budget, the scheme is discontinued.
Under Piggery/ Poultry development scheme, Rs. 2 Crore was spent out of allocated amount of Rs. 126
Crore in the same year. Allocations for the schemes have continued to decline in 2019-20 BE (Rs. 52
Crore) and 2020-21 BE (Rs. 33 Crore).
The scheme named ‘Animal Breeding Farm under Integrated Farming System’ didn’t see any spending
out of allocation of Rs. 30 Crore in 2018-19 BE. Rs. 8 Crore was allocated in 2019-20 BE and eventually in
2020-21 BE, the scheme was discontinued.
The Cooperation Division is responsible for implementation of ‘Premium Subsidy and Other Expenditure
for Crop Insurance Scheme and Subsidy for Compensation of Farmers Crops Scheme’. Spending on these
schemes are Rs. 83 Crore, Rs. 90 Crore, Rs. 140 Crore and Rs. 140 Crore for FY 2017-18 (A), 2018-19 (A),
2019-20 (BE) and 2020-21 (BE) respectively.
The fishery division implements State schemes like Reclamation and Development of Tank and Reservoir
Fisheries, Fisheries extension Research and Training scheme, Construction of rearing pond,
Establishment of Fish Seed Hatchery and Ved Vyas Aawas Yojana for Fisherman.
The allocations for FY2018-19 BE, 2019-20 BE and 2020-21 (BE) are Rs. 109 Crore, Rs. 84 crore and Rs. 56
Crore respectively. In FY 2018-19, 25 % of the funds under these schemes remained unutilised.
For Blue Revolution Scheme (a CSS programme), allocations have remained stagnant at Rs.16 Crore in
these 3 years. In FY 2018-19, 56 % of the funds under this schemed remained underutilised.
The Dairy Division implements Technical Input Programme, Training Extension and Skill Development,
Milk Procurement Processing & Marketing, Beneficiaries Oriented Programme, Gift Milk to School
Children under State schemes.
The allocations for these State schemes have declined during the last three Budget Years- allocations
being Rs. 285 Crore, Rs. 215 Crore and Rs. 142 Crore for FY 2018-19 BE, 2019-20 BE and 2020-21 BE. In
2017-18, actual spending was Rs. 158 Crore while in 2018-19 actual spending was Rs. 133 Crore and 53
% of funds remained unutilised in the fiscal year 2018-19.
In 2018-19, for the scheme Technical Input Programme, entire allocation of Rs. 80 Crore was unutilised.
There is massive shortage of human personnel against the sanctioned post in the department of
agriculture (close to 70% of the sanctioned posts are lying vacant for years now).
The government seems to be obsessed with containing deficits. As the chart below shows, the state is
regularly showing surplus in its revenue account (magnitude being 1-2 percent of GSDP in four years out
of seven years).
Shortage of the manpower has affected utilization of allocated funds. 72 % of the posts are vacant here.
The division of fishery & dairy taken together show shortage of manpower, vis-à-vis sanctioned strength,
to the extent of 76 % while cooperation division of the department has 84 % positions vacant. Close to
half (45%) of posts in animal husbandry divisions are lying vacant.
Out of 15086 sanctioned strength of the department, including all the five divisions, 10450 posts are
vacant. The divisions of agriculture and cooperation (with more than 10000 sanctioned posts) is hit the
most which operating with 23 % of the sanctioned strength.
The ratio of administrative (establishment) expenditure to program (schemes) expenditure in Jharkhand

is relatively higher than the values observed across major states of India. This is due to lower allocations
for schemes rather than abnormally higher allocations for establishment expenditure.
To run various programmes for more than 22 lakhs of farmer households (1.15 crore people),
establishment expenditure of Rs. 127 crores (Rs. 110 per person) is not a big amount.
Huge Underspending-Actual expenditure on establishment turn out be higher than allocation, indicating
that existing human resources of the department are not sufficient enough to run the programmes. If
we compare the allocations and actual expenditure on schemes of the department for FY 2018-19, there
is severe underspending- Rs. 35 Crores was spent out of total allocations of Rs. 255 Crores (utilization
rate being 13.7% only). This shows the low absorption capacity due to shortage of human resources to
perform the tasks.
*************

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Public Investment towards Rainfed Agriculture: A Case of Jharkhand

Objectives and Structure of the Report

It is divided into four sections:

Per Agriculture Household Income in Jharkhand

share of Investment in Agricultural Income (%)

Rural Poverty (%) 2004-05 2011-12

Source: Niti Aayog Website, GoI

Urban Poverty (%)

Source: Niti Aayog Website, GoI

Sources of Income of Agricultural Households in Jharkhand

Share in Income Agricultural Household in Jharkhand

wage cultivation farming of animals non-farm business

Proportion of Agricultural Households engaged in various activities for Earnings (%)

All India Jharkhand

Sources of Ahricultural Household Income (% share)

All India Jharkhand

Annual Income and the Rates of Return on Agricultural Expenditure in Jharkhand

Return on Crop Expenditure (%)

Costs of Farming of Crops in Jharkhand

Constituents of Expenses on Crop Production in Jharkhand

Input Use- % of Agricultural Households

Farming of Animals: Receipts, Expenses and Returns

Net Return on Expenses by AHHs on Farming of Animals (% )

Annual Receipts from Farming of Animals per AHH (Rs.)

Jharkhand All India

share of landholders in Receipts from Live animals in Jharkhand (%)

% receipts earned in farming of animals

Extent of Fallow land its trends over time in Jharkhand

land -use pattern in Jharkhand ( as % of geographival area)

other fallows (9) 10.9

Current fallows (16) 16.2

Misc. tree crops and groves 1.4

cultivable Wasteland (10) 6.3

Actual Rainfall suring Monsoon (from June to Sep-

Breadth and spread of Rainfed Agriculture in Jharkhand

District-wise Rainfed Intensity of Cultivation in Jharkhand

Rainfed-Intensity (%) of Main Crops of Jharkhand

share in cropped area (%)

oil seeds 3.6

Finger millet 0.6

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0

Composition of Production of Foodgrains in Jharkhand: Kharif and Rabi Crops

rice maize wheat pulses oilseeds

GSVA at Constant prices 2011-12 prices in Jharkhand (Rs. Crore)

2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019-

Source: Economics Survey, various Years, Government of Jharkhand

2. Livestock 25 22 24 23 29 25.4 23.5 30 31 24.6

3. Fishing & 3 3 3 3 4 4.3 5.3 6 7 3.7

Source: Economics Survey, various Years, Government of Jharkhand

1. Crops 12 -5 5 -25 29 7 -16 0 -2

3. Fishing and 5 9 2 9 25 31 10 12 156

Agriculture & allied 7 -2 5 -17 22 6 -6 2 12

4. Forestry and 1 1 170 -52 28 -10 -6 5 51

Agriculture, forestry 6 -2 31 -28 23 2 -6 2 18

GSVA at basic prices 8 1 13 -8 9 9 6 6 51

Analysis of Public Spending in Jharkhand

Trends in Revenue Deficit & Fiscal Defict in Jharkhand

Revenue Deficit as a % of GSDP Fiscal Deficit as a % of GSDP