In Bihar, growth in GDP has been much higher (>10%%) than the corresponding national average (< 9%%) during last five years. Despite devastating flood of 2009, agriculture GDP growth was recorded at 11.32 per cent in 2008-09 but it observed declining trend during last 2 years due to sever draught. Per capita income increased by two fold from Rs. 7449 in 2004-05 to Rs 13665 in 2008-09. Agriculture is still an important source of livelihood and about 70 per cent of rural work force are engaged in agriculture. Government made efforts to increase agricultural production but agricultural productivity is still the lowest in the country. With growing marginalization of agricultural holdings and with 96 per cent of the farmers being small and marginal in Bihar, there is widespread recognition that farmers need their own collectives to overcome their disadvantage in accessing inputs including adequate and timely credit for increasing productive activities not only in agriculture but also in allied activities.
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