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Livelihood Activities of Self-Help Group

Members in Gaya District, Bihar

A Situation and Potential Analysis of Three Sub-Sectors
Published by
Deutsche Gesellschaft fr
Internationale Zusammenarbeit (GIZ) GmbH
GIZ NABARD Rural Financial Institutions Programme
Dr. Detlev Holloh, Programme Director
L-20, Green Park (Main)
New Delhi 110 016 / INDIA
Phone: +91-11-2652 6024
Telefax: +91-11-2652 8612
Email: detIev.holloh@giz.de
Homepage: www.giz.de
National Bank for Agriculture and Rural Development
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Bandra Kurla Complex
Post Box No. 8121, Bandra (East)
Mumbai 400 051 / INDIA
Phone: +91-22-26539345
Telefax: +91-22-26530098
Email: mcid@nabard.org
Homepage: www.nabard.org
The Livelihood School
2nd foor, ABS, 6-3-456/18 & 19, Beside NIMS
Dwarakapuri Colony, Punjagutta, Hyderabad500 082
Nitin Jindal
Photo Credits:
Cover, Pages - 3, 4, 7, 9, 10, 11, 13, 14, 19, 20, 26, 47, 52, 54, 57 - Enrico Fabian
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New Delhi, December, 2012
Livelihood Activities of Self-Help Group
Members in Gaya District, Bihar
A Situation and Potential Analysis of Three Sub-Sectors
Executive Summary 1
Objectives and Methodology 5
Chapter 1 : District Profle: The Gaya District 7
Chapter 2 : Goat rearing 21
Chapter 3 : Agarbatti 38
Chapter 4 : SRI Paddy 53
Chapter 5 : Assisting the Community based Institutions
for Sub sector interventions 62
Chapter 6 : Strategy for taking up the Initiatives on a Larger Scale 63
Chapter 7 : Special needs of the Community 64
Annexure 1 : The Pashu Sakhi Model 65
Annexure 2 : Guidelines for District level Sub-sector Study 67
Bataya is a practice of shared enterprise where families with limited liquidity and access to credit enter into an agreement with well-to-do families where the former
takes on production responsibilities and the latter provides fnance. The income is shared in a ratio that is usually dictated by the well-to-do households and often staked
against the interests of the weaker households. In the case of cattle, the calves are retained by the rearer and parent animals are given to the fnancier
Executive Summary
Gaya district evokes images of toiling masses
working hard to meet their ends. This continues
in all seasons summer or winter and among
all social groups including women and children.
Moving ahead from the tourist spots one
comes across poverty and hunger, hardship
and deprivation. Children dropping out from the
school and working in felds is quite common.
Opportunities for social mobility appear few and
far between. Need for sustenance rather than
surplus generation drives the rural families thus
resulting in low income available for meeting
essential goods and services.
Not only the visual images but statistics too
reveal the same. 2/5th population remain poor.
86% in rural areas and 78% overall derive their
livelihood from primary sector, 4% from the
secondary sector and 18% from tertiary sector
which reveal the story. The situation gets worse
for women. 7 out of 8 women continue to rely
on primary sector with large majority lacking
land ownership thus resulting in 56% engaged
as agricultural labourers. A mere 4% woman
is engaged in secondary sector in activities
which include basket weaving, manufacture of
ropes, leaf plates, papad, Agarbatti, fruit and
vegetable vending, dal crushing, khadi, working
on handloom and power loom. In tertiary sector
only 8% of women are engaged in employment
(one-third of men).
Gross inequity continues in land ownership with
86% being marginal and small farmers. Low land
size continues to be the biggest constraint faced
by the poor in their attempt to improve their
agriculture based livelihood opportunities. The
other allied sources on which women continue to
be dependent on include the traditional livestock
activities milch animal rearing, Goat-rearing and
piggery. The potential activities for women in
secondary sector include stitching and cutting
for garment industry, embroidery, weaving,
applique (traditional embroidery) carpet, blanket
and rug making.
The study identifed three sub-sectors considering
women engagement in economic activities. They
include a) Goat-rearing, b) Incense-stick making
and c) System of Rice Intensifcation Paddy.
Findings of the Study
Goat rearing is a women-centred economic
activity pursued by the ultra-poor households
from mahadalit, dalit and other socially and
economically backward class households.
Women engage in all the stages from pre-
production to post production. They buy, rear,
manage and sell the goat. The goat ownership
is either individual or shared (Bataya system
Some of the barriers related to this include:
(i) Inability to break away from an unfair Bataya
system due to lack of access to affordable
(ii) inability to scale activity where benefts
are proportional to the human resources
(iii) poor physical infrastructure such as shelters
and feeding troughs;
(iv) poor access to veterinary services and
scientifc animal rearing resulting in high
mortality rates;
(v) lack of entrepreneurial skills among women
to take Goat-rearing as a business;
(vi) Non-transparent markets and local haats
which are not able to provide fair price.
With tremendous potential to improve productivity
and returns, carefully designed interventions can
be initiated on three fronts:
(i) Institutional support, (ii) Technical support
and (iii) infrastructure support.
a. Institutional support: This will include (i)
creation or consolidation of SHGs of women
goat-rearers, (ii) expanding the outreach of
micro-credit agencies to break away from
Bataya system, (iii) strengthening veterinary
agencies of the government and civil society
organization to respond to veterinary care
demands (iv) establishing linkages with
organized markets where price negotiations
are transparent (v) creating a federated
structure for empowering and strengthening
goat-rearers to provide capital intensive
equipment and facilitate collective
procurement and marketing.
b. Technical support: Expert counselling and
skill development of women rearers and
SHG leaders on breed selection, scientifc
husbandry practices, importance of
preventive measures like vaccination and
hygiene, collective bargaining skills and
village level Para-vet workers.
c. Infrastructure: Provide design inputs and
fnances for goat-rearers to install necessary
shelter that helps maintain animal hygiene
and reduce vulnerability to common diseases
that cause high mortality and morbidity
among animals.
Incense Stick (Agarbatti) Sub-Sector
Agarbatti subsector in Gaya district offers
employment opportunities for women from
mahadalit, dalit and muslim households. While
Agarbatti subsector involves varied activities
in the stages of preproduction, production,
processing and marketing Gaya district ranks
second, after Bangalore, in production of raw
Agarbatti. It provides home-based employment
to a large number of women in the district and
therefore any improvement in this sub-sector
will yield signifcant economic benefts.
Preproduction stage includes procurement of raw
materials from input suppliers both internal
and external, followed by rolling of Agarbatti by
women in their households. The raw materials
are usually supplied by manufacturers or
middlemen. The fnished raw Agarbatti is supplied
back to manufacturers for further processing
which involves scenting and packaging. Since
the scenting and packaging units are located
outside the district, women from the district
are hardly involved in this higher level value
addition process. The marketing system consists
of wholesale distributors and retailers.
With a lopsided distribution of returns women
who contribute nearly 80% of the total labour
component in the production of Agarbatti, receive
only an estimated 10% of the fnal sale value.
Incense (scenting), packing, marketing offers
opportunities for further value addition of 90%
indicating scope for expanding participation of
Thus the key concerns of Agarbatti rollers in
Gaya district that needs to be addressed are:
(i) low returns on labour;
(ii) absence of credit linkage which indirectly
contributes to dependence on village level
(iii) absence of collective bargaining system to
ensure payment of fair wages
(iv) Perception of Agarbatti rolling as casual
labour and not as a micro-enterprise;
(v) disconnect between Agarbatti rollers and
the market which creates conditions for
exploitative labour practices;
(vi) High prevalence of child labour, contributing
to poor health and low school enrolment;
(vii) Occupational health hazards among families
engaged in Agarbatti rolling.
These concerns can be addressed to a large
extent by the following interventions:
SRI is a combination of several practices including changes in nursery management, time of transplanting, water and weed management. The fundamental practices
remain more or less the same like in the conventional method; it just emphasizes altering of certain agronomic practices of the conventional way of rice cultivation. SRI
is a system of production with four main components, viz., soil fertility management, planting method, weed control and water (irrigation) management
a) Improving fnancial access of households
or groups to credit so that they can
graduate from being a labourer to group
b) Build enterprise management capabilities
among the women
c) Involve women in higher level value addition
processes, particularly at scenting and
packing stages
d) Provide centralized infrastructure, owned
and operated by a federated structure of
SHGs, to enter higher levels of the value
chain (e.g., scenting and packing)
e) Brand promotion with the objective of
entering the market through tie-ups
These interventions are best done through
creation and strengthening of community level
institutions of the women who are engaged in
Agarbatti rolling. A three tier structure with
SHGs at primary level, federation of SHGs at
secondary level can provide capital and market
access for dealing with higher levels of the
value chain.
System of Rice Intensifcation (SRI)

Rice cultivation is an important activity in Gaya
district with 70% area under the same. With
an average land holding of only 1.02 hectares
held by 86% small and marginal cultivators,
land fragmentation severely constrain farmers
from investing in land development works or
buying irrigation infrastructure. The vicious
cycle of poor investment, poor returns, further
degradation of land and reduction in productivity
is a very common phenomenon in these regions.
SRI is emerging as an exception.
The incremental beneft of adoption of SRI is very
high. The cost of cultivation is low, are highly
adoptable with both local and hybrid varieties,
capitalizing on surplus labour. Besides increasing
incomes, it also enhances food security. The SRI
intervention addresses the following concerns:-
1. Small and fragmented land holdings
making agriculture less remunerative and
discouraging land investment.
2. Poor crop husbandry practices resulting in
low productivity at a mere 11.2 quintals per
3. Poor irrigation facilities and ineffcient water
use practices.
4. Low incidence of labour-saving, productivity-
enhancing tools and equipment such as
5. Unorganized post-harvest interventions.
A program to promote SRI can address the
mentioned concerns to a large extent. It can
jump-start institutional interventions that create
conditions for rice cultivators to not only increase
production and net proft but also take increasing
control of their production and marketing
processes. This will go a long way in ensuring
sustainability of the benefts. Such institution
building and capacity building inputs can be
instrumental in channelling fnancial and technical
resources to farmers on a collective basis. Here
again the SHGs could be the basic unit which can
then be federated to derive larger benefts of bulk
input supply and marketing of produce.
Certain over-arching issues
The socio-economic conditions of these ultra-
poor families are fragile and susceptible to
economic and social stresses. The key concerns
are related to housing, health and education.
Majority live in kaccha houses and become
victims of climatic adversities. Monsoon rains
puts considerable fnancial and human resource
burden. Ability to invest gets affected and
compromises on both habitat and health of the
family. A mid-term to long term loan can go a
long way towards strengthening the livelihood
Similarly, sound livelihood activity and enhanced
income generating capacity have a remedial
impact on the problems of child labour. As a
consequence, some intervention in education
needs to accompany the livelihood strengthening
programme. Demand for such services came
from the community indicating awareness and
willingness to participate in the program to
address the same.
Impact of these interventions
Income streams to these socially excluded
segments can make a signifcant dent in
the poverty levels. The quality of life of the
community in general, and women and children
in particular of individual households, will see
a marked change. The participating families
will start investing in improving their health,
sending children to school, modernizing homes
and acquiring assets that will reduce their
hardship and providing some leisure that they
so acutely need. It will relieve huge state
funds that are currently spent to maintain a
subsistence life-style. It can then be used to
improve infrastructure that in turn will further
boost the economy and make it more effcient to
conduct business in the district.
Ways forward
There could be more sampling for analysis
of various livelihood systems.
There is need to document lessons from the
feld on various sub-sectors by scouting
case-studies and cross-sectoral lessons,
documenting them and making available to
There need to be handholding support for
community groups and livelihood promotion
organizations to ensure changes in traditional
practices, attitudes and trade relationships.
Action research on the ground to test
innovative approaches which enable
unravelling hidden faws, take midcourse
corrections, take corrective steps.
Strategy for scaling up or taking up sub
sector activities on a larger scale benefting
communities. The interventions to be built
on existing experiences.
Objectives and Methodology
Scope and Objective of the Study
The broad objective of the study is
to map major livelihoods in Gaya district of
relevance to SHG women and suggest end-to-
end solutions with respect to fnancial and non-
fnancial services and to suggest a methodology
and approach for livelihood mapping and demand
The specifc objectives are to
Understand typical livelihood portfolio
of households engaged in the identifed
Map the production, processing and
distribution system.
Appreciate the value additions at different
stages of the value chain.
Identify constraints in various stages of the
value chain.
Propose an alternative institutional
mechanism which can support SHG women
engaged in the subsector.
Short listing of sub-sectors
Initially subsectors were shortlisted based on
the review of secondary data and consultations
with Government departments, Civil Society
Organisations (CSOs) and bankers. The subsectors
identifed included a) Goat-rearing, b) Agarbatti
rolling c) System of Rice Intensifcation paddy
The standard sub- sector methodology was
followed to carry out the study. The steps
included: -
i) Preparing a preliminary sub-sector map
ii) Refning understanding of sub-sector
iii) Analysing sub-sector dynamics and leverage
iv) Choosing intervention point
The drawing of sub-sector map was followed
with discussion with important stakeholders.
Sampling Strategy
The study locations were identifed based on the
intensity of the prevalence of economic activity,
representation of diverse blocks, diversity of
socio-economically disadvantaged groups and
remoteness from market locations. The villages
visited are detailed in the table below.
Study Tools
The following study tools were used for data
Focused Group Discussions (FGDs)
Key informant interviews
Signifcant people interviewed
About 10 FGDs were held with community
representing 8 locations. Interactions with
value chain players in Goat-rearing included
livestock haat managers, traders, meat shop
Sampling Locations
S.No Goat rearing Agarbatti SRI Paddy
Village Block Village Block Village Block
1 Pali Belagunj Pali Belagunj Banki Bazar Banki Bazar
2 Shivrampur Belagunj Katari Gaya town Parsana Banki Bazar
3 Agni Belagunj Khevariyan Bodhgaya
4 Parasama Banki Bazar Parsana Banki Bazar
owners etc., Interaction with value chain players
in Agarbatti making included interactions with
factory owners of scenting units attached to
Indian Tobacco Corporation Limited (ITC), small
scale scenting unit and trader involved in raw
Agarbatti manufacturing. Interactions with
other stakeholders included representatives
from National Bank for Agriculture and Rural
Development (NABARD), Agriculture Technology
Management Association (ATMA), and Animal
Husbandry Department, Women Development
Corporation (WDC), Bihar Rural Livelihood
programme (BRLP) and District Industrial Centre
1.1 Historical Background
Gaya is located in south Bihar and has huge
historical importance. From the 6th century BC
to 18th century AD, Gaya occupied an important
place in the cultural history of the region.
Sisunga dynasty founded by Sisunga exercised
power over Patna and Gaya around 600 BC.
Bimbishara, who lived and ruled till 519 BC
projected Gaya to the outside world, and Gaya
attained an important place in the history of
civilization with the area experiencing the bliss
of Gautam Buddha and Bhagwan Mahavir during
the reign of Bimbishara. After a short spell of
Nanda dynasty, Gaya and the entire Magadh
region came under the Mauryan rule with the
reign of Ashoka (272 BC 2 BC). He visited
Gaya and built the frst temple at Bodh Gaya to
commemorate Prince Gautamas attainment of
supreme enlightenment.
Gaya formed part of the district of Behar and
Ramgarh till 1864. It was given the status of
independent district in 1865. Subsequently, in
May 1981, Magadh division was created by the
Bihar state Government with the districts of
Gaya, Nawada, Aurangabad and Jehanabad. All
these districts were at the level of sub-division
when the Gaya district was created in 1865.
1.2 Geographical Profle
The district of Gaya is spread in an area of 4,976
square kilometres. The district is found between
84.4 to 85.5 degree towards east longitude and
24.5 to 25.1 degree towards north latitude. It
is bordered by Jehanabad district in the North,
Chatra district of Jharkhand in South, Nawada
district in East and Aurangabad district in the
West. The District has 24 blocks, 332 Panchayats,
27 Police Stations & 4 Subdivisions.

The district may broadly be divided into two
distinct zones, viz. northern part - constituting
Gaya Sadar and Tekari subdivisions which are
comparatively older settlements with more
fertile land, and the southern part - constituting
Sherghati and NeemchakBathani subdivisions,
which have a hilly terrain and are comparatively
less fertile.
From the centre of the district to extreme south,
the district is dotted with barren rocky hillocks.
These hillocks are the great determinants of the
climatic conditions of the district. They absorb
and radiate icy cold and hot winds during the
winter and summer seasons respectively, causing
extreme climatic conditions. This is evident by
the fact that the maximum temperature is 47
degree Celsius during summers whereas the
minimum temperature is recorded as low as 4
degree Celsius during peak winters. Owing to its
long distance from the sea, the district enjoys
continental monsoon type of climate, with an
average rainfall in the district is 944mm.
1.3 Demographic Profle
1.3.1 Population
The population of the District is about 43.79 lakh
which is 4.2% of the total population of the
state. The district has a vast population located
in rural areas at 86.3%. While rural population
is about 38 lakh, the urban population is about
5.79 lakh. The population density is 880 per
square kilometre. Urbanization is limited with
high concentration of the people in rural areas.
Though refective of the state trend, the level of
urbanization is quite low in comparison to the
national trend.
2011 Census
Gaya Bihar India
4,379,383 10,380,4637 1,210,193,422
(Source: Census 2011)
Government of India Census 2011, Bihar
Offcial website of Gaya district administration
Offcial website of Gaya district administration
1.3.2 Age distribution
The distribution of age as per 2001 census and
estimations for 2001 is as follows: -
Age group
No. 2011
% of
0-4 years 444,584 560,542 12.8%
5-15 years 998,947 1,259,497 28.8%
15-59 years 1,786,754 2,252,783 51.4%
60 years and
243,143 306,561 7.0%
(Source: Census 2001 estimations for 2011 based on decadal growth rate
and percentage distribution based on 2001 data)
The economically active age group (15-59) is
about 22.52 lakh. This is the potential labour
force available for work in Gaya district.
1.3.3 Sex ratio
The sex ratio in the district stands at 938 with
rural sex ratio at 948 and urban sex ratio at 878.
Urban sex ratio shows a very low fgure indicating
prevalence of gender based discrimination. The
sex ratio is refective of the national trend overall
and at rural level. However, urban sex ratio is
far below the national level. Declining sex ratio
is of crucial importance indicating the huge need
for empowering women through SHGs.
2011 Census
Gaya Bihar India
Sex Ratio Total 938 919 940
Sex Ratio Rural 948 926 947
Sex Ratio Urban 878 868 926
(Source: Census 2011)
1.3.4 Religion
The major religions are Hindus: 30.63 lakh,
Muslims: 4.03 lakh as per census 2001. The
estimated religious distribution in 2011 is about
38.63 lakh Hindus and 5.08 lakh Muslims.
1.3.5 Scheduled Caste and Scheduled Tribe
The Scheduled Caste population stands at 29.6%
and scheduled tribe population at 0.1%. The three
largest Scheduled Castes are Bhuiyas, Dusadh
and Chamar with a population of 4.58 lakh, 1.92
lakh and 1.71 lakh. The estimated Scheduled
Caste population is 12.96 lakh.
2001 Census
Gaya (2001)
Gaya (2011
10, 29,675
2,945 (0.1%) 4,379 (0.1%) 758,351
(Source: Census 2001 estimations for 2011 based on decadal growth
rate extrapolated from 2001 data)
1.3.6 Literacy rate
The literacy rate stands at 66.3% with rural
literacy at 63.5% and urban literacy at 83.9% as
per census 2011. Gender based fgures indicate
a lower level of literacy for female at 55.9% in
comparison to male at 76%. Of importance to rural
livelihood promotion is the lower-than-average
literacy rate for women, indicating the challenge
ahead in empowering and building capacity of
women-focused programs and SHGs.

2011 Census
Gaya Bihar India
Literacy rate
66.35% 63.82 % 74%
Literacy rate
Total Male
76.02% 73.39 % 82.1%
Literacy rate
Total Female
55.90% 53.33% 65.5%
(Source: Census 2011)
1.3.7 Literacy levels
Average literacy rate of Gaya district is 66.35%
(male literacy rate is 76.02% and female literacy
rate is 55.9%). Average literacy rate of Gaya in
2011 was 66.35% compared to 50.45% in 2001.
If things are looked at gender wise, male and
female literacy rates were 76.02% and 55.90%
respectively. For 2001 census, same fgures
stood at 63.27% and 36.66% in Gaya District.
Total literate in Gaya District were 2,399,682
of which male and female were 1,427,447 and
972,235 respectively.
1.3.8 Health Indicators
The district indicates a poor health status. There
are about 24.9 births and about 7.4 deaths per
thousand populations in a year. Infant mortality
and under 5 mortality remains high at 55 and
70 respectively which is refective of the state
trend. Birth and Death rates
Crude Birth Rate
Crude Death Rate
Total Rural Urban Total Male Female Rural Urban
24.9 26.1 20.6 7.4 8 6.8 7.7 6.4
(Source: Bihar Economic Survey 2011-12) Infant mortality rates
Total Male Female Rural Urban
Gaya 55 53 57 57 48
Bihar 55 53 56 56 44
(Source: Bihar Economic Survey 2011-12) Under 5 mortality rates
Total Male Female Rural Urban
Gaya 70 69 71 72 62
Bihar 77 74 81 80 57
(Source: Bihar Economic Survey 2011-12)
1.4 Resources
1.4.1 Land
The total geographical area of the region is
about 4.93 lakh ha. The net sown area is 3.17
lakh hectares which is 64.2% of the geographical
area. The forest land is around 0.78 lakh hectares
which is 15.8% of the regions geographical
area. In comparison to the gross area available
for cultivation, a lesser area has been brought
under cultivation (76%).
Land Utilization (Ha.)
Total Area Reported 493,774
Forest Land 77,836
Area Not Available for Cultivation 99,741
Permanent Pasture and Grazing
Current Fallow 106,604
Net Sown Area 317,009
Total or Gross Cropped Area 414,632
(Source: Potential linked Credit Plan of NABARD-2012-13, Gaya district)
Potential linked Credit Plan of NABARD - 2012-13, Gaya district
1.4.2 Irrigation and Water resources
Gaya district has shortage of natural irrigation
sources. Rivers fow only during the monsoon
season. The rivers which fow through the district
is Falgu with two constituent streams Lilajan
and Mohana. The poor irrigation facilities along
with power shortage aggravate the situation.
The primary source of irrigation is the tube-well.
Irrigated land in Gaya district is 43.4% of the
total agriculture land.
Open wells and tube wells are the main sources
of irrigation. A major part of agricultural land is
dependent upon monsoon. The average rainfall
in the district is in the range of 1050-1150 mm.
However the last two years have been drought
years. There are no major or medium irrigation
projects in Gaya district.
Source Canal
Wells &
Tube wells
Total irrigated
(in ha)
NIL 177,161 2,787 179,948
(Source: Potential linked Credit Plan of NABARD - 2012-13, Gaya
district) Rainfall pattern
The rainfall remains low with recent years
indicating a drought situation.
2006 2007 2008 2009 2010
45.4 1073.7 51.0 1133.4 54.9 1025.8 35.6 702.8 40.9 366.3
(Source: Bihar Statistical Handbook, 2010)
1.4.3 Forest
Gaya district has low forest cover, which is
about 15.8% of the total geographical area. This
is well below the national average of 21.05%.

1.4.4 Soil
The district has a rather fertile soil. Alluvial
occurs at the confuence of the rivers. The grains
of alluvium become coarser from north to south.
Soil of the district is classifed into fve groups
according to texture:
Sandy Loam: Admixture of sand and clay,
predominantly sandy, found alongside the river
Sandy soil: locally known as balu found in the
Loamy soil: Found near the hills and formed by
rain washings from higher areas.
Kewal soil: It is a mixture of clay and loam and
is very productive.
Foothill Balthar soil: It is found between the
plains and the dissected plateau. It is acidic in
India State of Forest Report, 2011, Forest Survey of India (FSI)
68% of villages do not have pucca roads, 74 % villages do not have power supply, 96% villages do not have landline connectivity
1.5 Infrastructure
1.5.1 Roads & Railway
The total road length is around 700 kilometres of
which about one-sixth is covered by the national
Type of road
Length in Kilometre 119.5 255.1 254.83
(Source: Bihar Statistical Handbook, 2010)
One of the main railway routes of Grand Chord
section of Indian Railways passes through the
district headquarters and other blocks of the
district. The Grand Trunk Road i.e. NH-2 (now
adopted in Prime Ministers Golden Quadrilateral
project) passes through the district. The district
headquarter is connected by road and rail with
almost all the parts of the country. It also has
an international airport which has regular fights
from Sri Lanka and Thailand, besides being on
seasonal service by Indian Airlines. Although
the district has road links through the NH and
railway links to major cities of India, it is marked
by poor communication and road network in the
interior parts.
1.5.2 Electricity
Total inhabited villages Total electrifed villages
2,903 1,207
(Source: Bihar Statistical Handbook, 2010)
The electrifcation status is very low with only
41.6% villages actually electrifed. The area
also witnesses a high level of power cuts. This
coupled with poor interior road network has had
a compounding adverse impact on development
of business opportunities, both at the small
scale level as well as medium / large scale.
1.5.3 Health infrastructure
Population per health institution at 8500 and
number of doctors per lakh population at 4
remains inadequate.
Health Sub
Primary Health
per health
No. of Doc-
tors per 1 lakh
Gaya 1 2 0 24 439 49 515 8,504 4
Bihar 36 70 29 534 8,858 1,409 10,936 9,628 4
(Source: Bihar Statistical Handbook, 2010)
1.5.4 Banking and other outreach institutions
There are about 532 bank branches and credit
sources inclusive of agricultural cooperative
societies. Excluding PACS, about 25 banks have
about 200 branches.
No. of
Banks /
No. of Branches
Total Rural
Commercial Banks 19 123 71 7 45
Regional Rural
1 59 57 1 1
District Central
Coop. Bank
1 9 0 7 2
agriculture and
Rural development
1 6 2 3 1
Primary Agricultural
cooperative society
332 332 332 0 0
Others 3 3 0 0 3
All Agencies 357 532 460 18 47
(Source: Potential linked Credit Plan of NABARD - 2012-13, Gaya
1.5.5 Amenities and infrastructural facilities in
inhabited villages
The extension of infrastructural amenities at
village level in 2001 shows low extension of
electricity, non-existence of primary school in
over a 1,000 villages and inadequacy of health
infrastructure. Though data for 2011 is not yet
out, but anecdotal accounts indicate that there
is marked improvement in this area.
Category No. of Villages
Total inhabited villages 2,680
Drinking water facilities 2,680
Safe drinking water 2,678
Electricity (Power Supply) 539
Electricity (Domestic) 227
Electricity (Agriculture) 340
Primary school 1,635
Middle schools 277
Secondary / Sr Secondary schools 104
College 278
Medical facility 278
Primary Health Centre 55
Primary Health Sub-Centre 107
Post, telegraph and telephone
Bus services 270
Paved approach road 711
Mud approach road 2,121
(Source: Census 2001)
4.1% of the working population is involved in the
secondary sector. Females (4.7%) are involved in
a higher proportion in this sector than males at
3.8%. However, it is to be noted that most of the
persons involved in secondary sector are into
home based manufacturing. Tertiary sector is a
completely male dominant activity. While overall
17.8% of the total male working population is
involved in tertiary sector, in the case of female
it is only 7.6%.
Gaya district lacks new employment opportunities.
The traditional employment opportunities in
the villages are primarily agriculture-based.
Irrigation is one of the major constraints (only
around one-third of the agricultural land is
irrigated) in realizing the potential of agriculture
to support increasing livelihood needs of the
region, which - in the absence of any other
alternatives - is making the subsistence of the
rural poor still more diffcult.
Occupational Distribution in Gaya district
No. engaged in
sector (Total)
% occupational
No. engaged in
sector (Male)
% occupational
No. engaged in
sector (Female)
% occupational
Primary 997,989 78.1% 622,491 73.3% 375,498 87.7%
Cultivators 559,239 34.3% 304,726 35.9% 134,024 31.3%
438,750 43.8% 317,765 37.4% 241,474 56.4%
Secondary 42,364 4.1% 32,098 3.8% 20,266 4.7%
Tertiary 227,286 17.8% 194,882 22.9% 32,404 7.6%
(Source: Census 2001: Percentages based on Census data)
Work Participation Rates in Gaya district
Population details
2001 2011 (estimations)
Population Male Female Population Male Female
Total Population 34,73,428 17,92,163 16,81,265 43,79,383 22,66,865 21,12,518
Total working population 12,77,639 8,49,471 4,28,168 16,11,613 10,74,494 5,38,692
Work participation rate 36.8% 47.4% 25.5% 36.8% 47.4% 25.5%
(Source: Census 2001 2011 estimations based on 2001 distribution patterns)
1.6.1 Work participation rates
The total work participation rate in Gaya district
is 36.8%. While it is 47.4% for males it is 25.5%
for females. Though census doesnt capture the
invisible economic activities taken up by women,
the fgure indicates lower level of economic
participation of women.
1.6.2 Occupational distribution
78.1% population (73.3% male and 87.7% female
are dependent on agriculture) as their primary
occupation. 43.8% are agricultural labourers
with a clear gender difference (56.4% females
involved in agriculture labour in comparison
to 37.4% of the males). 34.3% are cultivators
(35.9% males and 31.9% females are cultivators).
Hence looking at gender wise distribution a
higher percentage of females are involved in the
primary sector (87.7% in comparison to 73.3%).
1.6 Workforce
1.7 Sectoral Analysis
1.7.1 Agriculture
78.1% of the population in Gaya district is
dependent on the primary sector. The primary
sector based livelihoods include agriculture,
horticulture and animal husbandry. A vast
majority of the population in Gaya district is
dependent on primary sector sources as chief
source of income. While 34.3% are cultivators,
43.8% are agricultural labourers. In terms of
land holding pattern, about 86% are marginal
and small farmers.
The agro-climatic conditions in Gaya district are
suitable for production of various cereals, pulses,
vegetables and fruits. The following table shows
the trends in land holding pattern.
Land holding pattern in Gaya district
Classifcation of Holding Holding
Nos. % to Total
< 1 Ha 217,849 71
>1 Ha and < 2 Ha 47,007 15
>2 Ha 44,909 14
Total 309,765 100
(Source: Potential linked Credit Plan of NABARD - 2012-13, Gaya district)
Area (in 000 ha) and production of crops in metric
tons 2008-09
Productivity (per ha)
in metric tons
Rice 125 222 1.78
Wheat 60 141 2.35
Gram 4 3 0.75
Barley 1 1 1
Maize 5 7 1.4
Masoor 4 4 1
Arhar 2 2 1
Potato 6 40 6.7
(Source: Potential linked Credit Plan of NABARD-2012-13, Gaya district)
Over 76% of the land in the district is available
for cultivation. The average land ownership per
household is quite low in Gaya district which is
about 1.34 hectares. In terms of land distribution
pattern, 86% are small and marginal farmers.
Agriculture which forms an important occupation
is primarily rain-fed. The primary crop grown in
the area is rice and wheat. Other crops include
maize, pulses, and vegetables. Only those farmers
having irrigation facility go in for two crops. The
irrigation sources include wells, tanks & canals.
Only the well-to-do farmers are able to install
tube-wells. The region has been witnessing a
drought situation since the last few years and it
is a recurring theme for Gaya.
Some of the gaps related to agriculture include: a)
low agricultural productivity; b) non-availability
of seeds and fertilizers in a timely manner, c)
inadequacy of the existing governmental system
for extension facilities, d) insuffcient quantities
of seeds and fertilizers, e) lack of guidance to
deal with pest attacks f) traditional farming
practices, g) inadequate access to credit from
formal sources h) poor and often exploitative
markets that function in a non-transparent
Though there have been initiatives by Government
to provide credit at reduced interest rates,
these attempts have not been suffcient to
reach out to the ones who need it. There have
been some efforts towards extending extension
services by Government Agriculture Department,
KrishiVigyan Kendra, NGOs and private players
such as input / tractor dealers. However, these
efforts are insuffcient and fail to reach the poor
and marginalized households.
Hence opportunities exist for interventions in the
areas of a) increasing agricultural production;
b) market linkages for provision of inputs; c)
introducing modern agricultural practices; d)
provision of agricultural credit for crop and
agriculture investment.
1.7.2 Animal Husbandry
People depend on animal husbandry to supplement
their income from agriculture and forestry. Dairy
The area has an under-developed dairy sector.
Gaya Dairy was started two decades ago covering
the area of Magah Division which consist of fve
Districts i.e. Gaya, Jahanabad, Arwal, Aurangabad
and Nawada. Each district has its unit except
Arwal that is counted with the Jehanabad. In
Gaya district, there are 24 blocks but the Gaya
dairy operates only in 19 blocks. Barachatti,
Dumaria and Bathani are the blocks where the
operation has yet to be started due to some
technical and accessibility problem.
The unit produces only three items: Milk, Curd,
and Lassi. Despite the capacity for milk chilling
of 20,000 litres in a day it is not able to procure
more than 15,000 litres of milk in a day. Despite
the local production it is depending on adjoining
districts to meet the defcit of 4,000 litres of
Table: Livestock population in Gaya District
Exotic Indigenous Total
Cattle 31,409 717,794 749,203
Buffaloes NA NA 352,937
(Source: Bihar Statistical Handbook, 2010)
There is shortage of basic infrastructural facilities.
The work of animal husbandry department in
the district is unsatisfactory. There are limited
veterinary services for improvement of breeds,
artifcial insemination and disease prevention
and control etc., despite having a network of 36
dispensaries, 1 hospital and 1 mobile hospital
and about 72 feld veterinary centres, the
services are poor due to shortage of medicines
and doctors. For example, among 25 artifcial
insemination centres in the district, 17 are not
in a functional state.
Opportunities exist for strengthening diary sector
through: a) promotion of artifcial insemination
and cross-breeds, b) strengthening of milk
cooperatives, c) strengthening of milk routes, d)
promotion of veterinary services and provision
of credit for purchase of cross-bred and e)
promotion of training and extension. Poultry
During the last two decades poultry has emerged
to be a signifcant trade. At the domestic level,
women manage a small number of birds, often
less than 10 through very rudimentary and
even unscientifc management practices. At an
organized industrial level, there are about 100
chicken centres and 50 poultry farms where
management is slightly more organized and
generates employment at the rate of 2 or 3
labourer per centre or farm.
This sector is seriously underserved by government
agencies whose functioning is characterized by
a) inadequate service by Animal Husbandry (AH)
Department to provide cross breed poultry, b)
inadequate vaccination facility for poultry at
veterinary institutions, c) absence of hatchery in
the district, d) no facilities for training farmers
on poultry.
Poultry is a sector that can be developed
signifcantly in Gaya. To begin with, the district
has high demand for poultry products due to
high infow of tourists and the presence of
large military establishments in the district.
Opportunities exist in the area of; a) initiating
hatchery, b) promotion of concentrated feed, c)
training and extension facilities, d) continuous
supply of power, e) suffcient number of
dispensaries and frst-aid centres, and f)
organizing marketing interventions that improves
returns for the entrepreneurs. Sheepery, Goat-rearing and Piggery
In Gaya district sheep-rearing, goat-rearing and
piggery are major sources of income for the poorer
and asset-less households and minor sources of
income for the other households. There is a good
scope for promotion of sheep-rearing, goat-rearing
and piggery in the district. As mentioned above,
there is a demand for these products domestically
and also for markets in Kolkata. Demand far
exceeds the supply.
Rearing goats, sheep and pigs for its meat
are popular secondary occupations for a large
section of the population who are poor. Goat
and sheep are reared by almost all caste groups
among the poor. Pigs are predominantly reared
by Manjhi and Mahadalits. Demand for goat
and sheep meat is high in the entire district
as well as in distant markets as it is has a
wider consumer base. Pork, on the other hand, is
largely consumed by the poor due to its relative
lower price and consumer preferences.
The current status of minor cattle rearing for
its meat can be described as very rudimentary.
The popular perception is that these animals
are hardy and require little or no special care.
This perception is however inconsistent with
principles of scientifc and organized enterprise
development. As a result, the productivity is low
and mortality rate is quite high especially in
the case of pigs. There is a huge gap between
the actual and potential productivity. The sector
has received less-than-required attention from
government and private sector. The fact that
there are no reliable current statistics on the
prevalence and problems also indicates the low
priority it receives from development planners.
The sector is marked by the absence of: a)
proper veterinary services, b) better breeds,
c) meat processing facilities, d) training and
extension facilities, and e) organized market.
Hence opportunities exist in the area
of: a) veterinary extension, b) promoting
crossbreed, c) promoting meat processing,
d) promoting training and extension.
1.7.3 Key clusters in Gaya district
The key economic activities in the unorganized
sector in which a good number of households
MSME list of clusters
Citizens charter, Weavers service centre, Bhagalpur
are engaged in activities including khadi&
village industries, handloom, power loom,
handicrafts, cottage industries, incense-stick
making and sculpture-making. Under the DIC
rural industrialization drive, stone sculpturing
cluster of Neemchakbatani and Tilkut (sweet
savoury) cluster of Dhangra and Tikari have
been identifed for development.
The key clusters to be taken up as innovative
clusters by micro, small and medium enterprises
in India are that of shoe repairing services,
furniture & fxtures wooden NEC, steel
Gaya district has been identifed as a cluster
for manufacturing silk dress material, sarees,
furnishing gamcha, lungi, bed sheet etc by
Weavers Service Centre, Bhagalpur
Table: Economic clusters in Gaya
Cluster locations
Block Village
Handloom and
Power loom
Manpur Buniyadganj About 10,000 power looms and
700 handlooms
Sadar Chakand
Belaganj Laxmipur, Tikuli and Gobraha
Wazirgunj Imadpur
Tikari Panchanapur, Jamuara, Tikari
Dobhi Gongwa
Stone sculpturing Neemchakbathani Pattharkatti and surrounding
700 artisans involved in
making sculptures from black
and white stone
Statue making,
Wood carving
Gaya town Chand chowra locality 100 artisans
Gaya Gaya block 20,000
Khadi and village
Buniyadganj Manpur Ambar charka, dyeing and
printing, soap production,
incense stick, khadi
production, polyster cloth,
honey collection
Brass sculptures Wazirganj Kenarchatti 200 households
Mohanpur Dhangra 30 households
Tikari 50 households
(Source: Potential linked Credit Plan of NABARD - 2012-13, Gaya district)
1.7.4 Economic activities women are engaged in
Census data and other sources of statistics
regarding work force and occupation do not
give a correct picture of the gender dimensions.
Women contribute a signifcant component of
household level economic activities and are
even the mainstay of livelihood in many families.
Besides playing an equal or even bigger role in
agriculture activities as compared to men, women
also engage in rather specialized occupations.
The table below gives the breakup.
1.7.5 Potential livelihoods in sectors
The potential opportunities which offer scope for
livelihood promotion are in the following table.
Calculation based on women population of Gaya as per 2011 census (21 lakh), estimated population in economically active age group (51%) and
poverty percentage (42%)
Economic Activities of Women in Gaya
Traditional activities with
high women participation
Traditional livestock
activities managed by women
New activities with potential for
high women participation.
Basket making, rope making, leaf plate
making, fruit and vegetable selling, dal
crushing, papad making, aggarbatti
making, khadi, handloom, power loom.
Milch animal rearing, goat-rearing,
Stitching and cutting, embroidery,
weaving, applet, carpet making,
blanket making, rug making
(Source: Potential linked Credit Plan of NABARD - 2012-13, Gaya district)
Potential Livelihood Opportunities
Sector Type of economic activities
Agriculture and Agro
Rice mill, Dal mill, Chooda mill, Oil extraction, Flour mill, Masala making, Papad making, Tilkut
(sweet) makin, Bakery and confectionary, Potato chips, Tomato sauce, Jam and jelly making,
Agriculture implements etc.,
Animal husbandry and
Dairy products
Animal fodder, Kukkutahaar, Ice cream, Bone mill, Leather products
Forest products based Wooden furniture, cane basket and furniture, Bamboo products, leaf plate
Mineral based Stone sculptures, Statue making and arts, Chimnibatti, Ceramics, Hayum pipe
Textile based Handloom, Power-loom, Blanket, kaleen, readymade garments, etc.,
Chemical based Detergent, Soap production, Polythene, Incense sticks, Medicines
Electronics based Radio, TV, VCR assembling and servicing, Voltage stabilizer, Ceramic insulator, Laminate
Engineering based Steel cupboard, Trunk, Furniture, Gate, Grill, Re-rolling plant, automobile service centre, railway
sleeper. Aluminium sheets, vessels etc.
(Source: Potential linked Credit Plan of NABARD - 2012-13, Gaya district)
1.8 SHGs in Gaya District
SHGs have been formed under NABARD SHG
Bank linkage and SGSY programs in Gaya
district under various governmental and non-
governmental organizations.
SHGs offer immense potential as units for
promotion of livelihood activities of women.
However, there is need for further expansion of
outreach of SHGs in Gaya district and need for
promoting and strengthening of SHG federations.
An estimated 1.34 lakh members (@ 15 per SHG
for 8.9 thousand SHGs) have come under SHG
Bank linkage program. This is far behind the
potential for covering 4.5 lakh members.
The reasons for their inclusion are:
SRI paddy is said to have emerged as a
mass movement in Gaya district with women
actively engaging in SRI paddy cultivation.
SRI paddy offers high scope for women
There are said to be about 4.5 lakh persons
from Bhuiyan community - a traditional goat
rearing community in the district.
An estimated 50,000 women are said to
be involved in Agarbatti rolling activity in
the district. Mahadalit, dalit and muslim
communities specially pursue this as an
subsidiary economic activity.
The study did not examine bamboo basket
making, vegetable cultivation and handloom.
1.9. Potential activities for women
The economic activities pursued traditionally
by women include basket making, rope making,
leaf plate making, fruit and vegetable selling,
dal crushing, papad making, agarbatti making,
khadi, handloom, power loom. The livestock
related activities include milch animal rearing,
goat-rearing, and piggery. The new activities
that women are taking up include stitching and
cutting, embroidery, weaving, applique, carpet
making, blanket making, rug making. The 6
economic activities with involvement of women
are said to be SRI Paddy, Agarbatti making,
goat-rearing, bamboo basket making, vegetable
cultivation and vending and handloom work.
The study looks at three sub-sectors namely SRI
Paddy cultivation, goat-rearing and Agarbatti.
Commercial Banks Regional Rural Banks
District Central
Cooperative Banks
Others All Agencies
5670 2375 67 800 8912
(Source: Update on SHG bank linkage in Gaya district prepared by BRLP)
SHGs linked to various sources of banking facilities:
An overview under SGSY for the fnancial year 2010-11
No. of members of SHGs
assisted (For economic
No. of individual swarozgaris
assisted (For economic
No. of members trained
No. of individual swarozgaris
trained (self-employed)
Total SC Women Total SC Women Total SC Women Total SC Women
2,239 1,342 896 371 223 148 2,239 1,342 896 371 223 148
(Source: Bihar Economic Survey 2011-12)
Chapter 2 - Goat rearing subsector
2.1 Overview of the subsector
2.1.1 Goat rearing and meat status in India
India is the richest country in the world in livestock
wealth, both in numbers and germplasm. India
had 120.8 million goats in 1997 and it increased
to 124.35 million as per census of 2003, making
it rank second in the world. Goat meat production
stands at the level of 0.47 million tonnes. The
slaughter rate of goat is at the level of 39.7 %
as compared to 31.8% for sheep and 11% for
buffaloes respectively. Goat also produce 2.55
million tonnes of milk and 0.1288 million tonnes
of skin as per F.A.O. 189 records 2002 report.
The trend in consumption of mutton and goat
meat shows increase from 4,67,000MT in 1981 to
6,96,000 MT in 2002 indicating annual compound
growth rate of 1.28 % during 92-02. Sheep and
goat meat production had reached 7,00,400MT
during 2002 in India.
The distribution of goats has been found across
the coutry as shown in map of India. Each dot
represents 10,000 goats.
The contribution of agriculture sector to
national GDP is around 25% and the share of
livestock in agricultural GDP is 23%, of which
small ruminants contribute about 10% to the
total value of livestock sector. At the national
level, small ruminants account for 14% of the
meat output, 4% of the milk output and 15% of
hides and skin production in the country. But it
receives only about 2.5% of the public spending
on livestock sector, which is much less than the
share of small ruminants in the value of output
of the livestock sector. The growing demand of
meat and meat products in the country and the
share of the small ruminants (mainly sheep and
goat) within this holds good potential to develop
small ruminant sector in the rural areas with
the objective of increased returns to the rearing
Per capita meat consumption in India is relatively
low at less than 5 Kg/ year as compared to other
developing countries such as Pakistan (13.7 Kg),
China (38.6 Kg) and Brazil (58.6 Kg). Based on
the minimum requirement of 20g animal protein
per capita per day sourced from milk (10 g),
meat (4 g), fsh (4 g), and eggs (2 g), the
estimated demand for meat is 7.7 million metric
tonnes as against the present production of 4.6
million metric tonnes. However, this demand
picture is based on the assumption that the
quantities mentioned herein are actually being
consumed, which may not necessarily be true.
However, the report wants to highlight the fact
the requirements are immense and the markets
have not been able to cope with the demands.
2.1.2 Meat Export Trade
Export of Indian meat to Gulf countries has
proved to be a thriving business over the last
several years. Now, the meat is also exported
to Malaysia and Singapore. At present, more
than 60 countries are importing meat from
India. Many corporate frms have set up modern
integrated meat complexes having state-of-the-
art facilities for livestock holding, slaughter,
carcass deboning, packing, chiller and frozen
storages, by-products processing, effuent
treatment etc.
Source: Sheep and Goat Breeds of India, Animal Production And Health
Paper 30, Food and Agriculture Organization.
Distribution of Goat Population in Country
Meat export from India 2003 -04
Commodity Qty (Metric Tonnes) Value (Rs. Cr.)
Buffalo Meat 3,43,817 1,537
Sheep/Goat Meat 16,820 110
Poultry Products 20,240 202
Processed Meats 986 8
Animal Casings 733 12
Total 3,82,596 1,869
2.1.3 Goat rearing and meat status in Bihar
Having the 5th largest goat population in the
country, Bihar has about 7.63% of Indias total
goat population. With 42.6% of the human
population below the poverty line, there is a
tremendous scope of goat farming to bridge the
large gap between demand and supply of meat.
The state with its vast area under rain-fed system
has 60% of the goat population concentrated in
rain-fed districts. Hence there is a tremendous
scope of goat farming that can meet up the large
gap between demand and supply of meat in the
state. Due to lack of round the year employment
or income, small and marginal farmers and
landless labourers opt for small-scale goat
farming for income generation.
The total goat population in Bihar is about 1.17
Crores. The density of goat population varies as
per regions. The districts Kishanganj, Sitamarhi,
Madhepura, Saharsa, Araria, Supaul and Sheohar
have the highest density of goat population with
over 150 goats per sq.km. Village goat is mostly of
Bengal breed. However, crosses with other breeds
like Jamunapari, Barbari, Sirohi and Jakharana
are also available.
The number of goats slaughtered in each year in
Bihar ranges between 3to 4.5 lakhs. The following
table shows the pattern of goats slaughtered in
slaughter houses.
Goats slaughtered in Slaughter houses in Bihar
2001-02 2003-04 2005-06 2006-07 2007-08 2008-09 2009-10
4,78,857 3,03,994 3,39,276 3,67,436 3,79,367 4,18,419 4,32,094
(Source: Bihar Statistical Handbook, 2010)
The supporting infrastructure created in Bihar
to support goat-rearing includes about 39
veterinary hospitals and 814 dispensaries.
2.1.4 Goat rearing and meat status in Gaya
Gaya district has a goat population of about
4.9 lakhs. Division-wise highest concentration
of goat population can be found in Sadar
and NeemchakBadani divisions. The main
goat variety is Bengal breed.
Jamunapuri Others Total
Sadar 22,002 260 133,346 155,608
Tikari 36,391 97 18,563 55,051
Shergai NA 64,081 64,081 128,162
4,928 3,831 143,729 152,488
Total 63,321 68,269 359,719 491,309
(Source: Department of Animal Husbandry, Gaya
Goat-rearing activity is mainly pursued by
vulnerable social groups in Gaya district
i.e., the Dalits and Maha-dalits. They are
primarily pursued by landless classes.
Bhuiya, a traditional goat-rearing community
has a population of 4.58 lakh.
The average number of goats is in the range
of 1-3 per goat-rearing family. These act as
subsidiary source of income to supplement
income from wage work. Goat-rearing is yet
to develop on a commercial basis.
Goat is acting like a poor mans cow in Gaya
district. Women are playing an active role in
goat-rearing in Gaya district which includes
both rearing as well as marketing.
Veterinary health services in Gaya include
one veterinary hospital and 38 dispensaries.
Improvement of goat breed has not been
pursued.Crossing sometimes is done at
farmers level.
Marketing of goat is done by the unorganized
sector and middleman oriented.
There is absence of scientifc feeding
practices. Female or child of the family
mainly rears the goat. Feed requirement is
met up mostly by grazing for 6-8 hours a
Note: Local Haat that mean the haat is like a platform for all the goat marketing transactions across the Producers
and traders
Landscape of a Hilly village in Gaya district with high goat population
2.1.4 Subsector map of Goat meat
day on common property resources on the
bunds of rivers, ponds or nearby forest. Very
little concentrate like broken rice or maize
or wheat or pulse chunnies is given along
with rice bran and mustard cake. Some
farmers who have land, either own or taken
on lease, occasionally offer green fodder
like Sudan or Berseem.
Little care is taken to prevent diseases
of goat in smallholder production system.
No vaccination of FMD or PPR is given.
The main limitations to effective livestock
health management are inadequate focus on
preventive measures, lack of medicines and
equipment in rural veterinary clinics, and
ignorance among the farmers.
2.2 Pre -Production Stage
Goat-rearing activity at pre-production stage
is concerned with few aspects like (i) profle
of people involved in goat-rearing (ii) Capacity
of the goat-rearers (iii) housing for goats (iv)
Financial services for establishment of goat unit
and (v) awareness and availability of quality
goat and breeding buck.
2.2.1 People involved in goat rearing
The Yadav, Paswan, Majhi, Das, Ravidas, Chowhan
and Thakur communities have been adopting
goat-rearing as a traditional livelihood. Most
of the Yadav and Thakur families are able to
initiate the goat rearing activity with their own
investment earned from agriculture and other
livelihood activities.
Majority of the families from the communities like
Paswan, Majhi, Das and Ravidas are poorest of
the poor and their investment capacity is very
low, thus these communities get the mother goat
from the Yadav and Thakur families and rear for
a period of 6 to 8 months, once the mother goat
gives birth to two kids, they will be shared among
the givers and rearers, the mother goat is given
back. This system is called as Bataya The Bataya
system has been found major source of arranging
goats to the backward classes and scheduled
caste communities. (Please refer Table -1 for
essence of Bataya (shared) system in goats) Goat rearing as a women-centred activity:
At the household level the womens involvement
in goat-rearing activity is high. Women are
involved in all the stages of the goat-rearing
activity right from the stage of buying the goat
either through bataya system or buying the goat
from local haats, feeding and managing the
goat, selling the goat either in the village or in
the nearest haat.
There are three players involved in goat
production of goat in the district. These include
small farmers, share-rearers and large goat
24 Small farmers
The small farmers purchase fve/six goats
through their own investment, try to maximize
its number and returns on the activity. As these
small farmers are engaged in agriculture and
animal husbandry activities and fnd it diffcult
to get spare time to devote on goat rearing
activity, they hand it over to more economically
downtrodden communities involved in goat-
rearing under bataya system within the village. Share rearers
The share rearers are the poorest of the poor
from mahadalit and dalit households. They fnd
it diffcult to shell out the money required for
purchasing of goat. They get the same from
Yadav, Thakur families under Bataya system.
Share rearers normally take 3 to 5 goats from
others for rearing them. In rare instances the
share rearers make their own investment to
buy goats from the market. The investments
required for the same are pooled through wages
generated through MGNREGS.
The share-rearers explain that making self-
investment and rearing their own goats is more
proftable than rearing the goats through bataya
system, but the poor investment ability is the
key constraint to setup their own unit. Large goat farmers
Large goat farmers are most often located in
hilly areas because ofeasy access to fodder,
they prefer their fock size to around 20 to
30 in numbers. However adoption of improved
practices is low. Selling of goat herd is resorted
to as a coping mechanism against spread of
communicable diseases.
2.2.2 Capacity of the goat-rearers
Share-rearers rear lesser number of goats than
their capacity. They rear about 1-5 goats though
they have the capacity to rear 4 to 10 goats.
Despite being interested to rear more goats than
the current numbers, the following reasons are
acting as constraints: -
lack of access to the fnancial services
Shelter problem
High mortality rate
The large goat farmers are able to establish their
units just by increasing their initial stock without
selling. The feld visit observations indicate
lack of formal fnancial intermediation in goat
farming. Even the large goat farmers despite the
willingness to expand their goat rearing activity
fnd it diffcult to access fnancial services from
formal fnancial institutions.
2.2.3 Shelter arrangement for goats
The living conditions of share-rearers are very
poor. Houses are constructed of mud and roofed
with the wheat grass especially among the
Paswan, Majhi, Das and Ravidas communities.
The goats live under the same housing structure.
With uncovered roofs the goats are exposed
to rains during the monsoon season resulting
in health problems. Being economically well
placed,Yadav and Thakur families are able to
create a separate shed for their livestock. This
is also true in the case of small farmers and
big farmers who are able to create separate
shed for their goats along with their cows and
2.2.4 Financial services
Providing goat loans is not seen as a viable
proposition by bankers. Goat farmers see goat
as ATM (Any Time Money). Bankers feel that
since the goats could be sold at any point of
time to meet consumption needs, it may not
fetch income signifcant for goat farmers to
repay back to the bank. Even the moneylenders
at village level do not consider loaning for goats
as good venture due to small loan size and high
liquidity of assets. Goat rearing community has
also low penchant for goat loan because of two
main reasons (i) high interest burden and (ii)
high risks due to seasonal diseases and poor
veterinary services.
2.2.5 Awareness on identifcation of quality goats
The community usually identifes quality goat
based on three parameters i.e., size, weight
and healthy look of the goat. The community
needs to be aware of this based on a scientifc
understanding of how much a healthy goat should
weigh, look and achieve physical growth. Lack
of awareness on these makes them purchase
goats of poor health. Goats were also found to
be underfed and of low genetic potential due to
inbreeding and indiscriminate selection of does
and bucks. There has been hardly any attempt
of capacity building of community on scientifc
goat farming practices. They have also not been
aware of how the market operates in the arena
of goat trade. As a result the activity operates
at a lower level than its real potential.
2.2.6 Constraints at the pre-production stage
In the goat rearing activity the major constraints
identifed at pre-production state can be
classifed in following heads
A. Financial constraints Financial services for
goat business have not been forthcoming from
the formal sources and coming to a limited
extent from informal sources. Starting from
quality doe and buck induction, investment
is required for housing and working capital
is also required. At community level, critical
investment is missing on capacity building,
grazing land & fodder development, goat
health care services and input management
and critical market infrastructure
B. Non-fnancial constraints (knowledge, skills
and attitude development for Goat Enterprise)
Public investments to build capacities
of goat farmers / goat farmer collectives
are missing. Efforts in building capacities
towards scientifc goat rearing, building
abilities towards accessing better and
proftable markets are missing.
Overall constraints
Lack of access to credit from the formal
fnancial institutions is a key constraint. As
a result they are not able to take up goat
rearing to the extent possible.
Goat rearing practices have been largely
drawn from the traditional wisdom related
to goat rearing. While this has transferred
knowledge related to aspects like rearing
of goats, identifcation of goats, it has not
been able to address health problems of
goats. Absence of scientifc knowledge on
goat rearing many times results in risks
leading to even death of animals. This is
totally due to lack of knowledge in proper
selection of goat and treating the animal.
Poorest of the poor goat rearing families
are not able to build shelters for the goats.
Lack of protection from climatic conditions
like rains, cold etc., results in poor health
and high mortality of goats.
2.3 During Production
2.3.1 Goat-rearing is not seen as an enterprise
Goat-rearing has not been seen as a potential
enterprise to meet the household income needs
among share-rearers and small farmers. It is
largely seen as a subsidiary livelihood activity
and an asset which could be disposed to meet
emergency cash needs in urgent / unexpected
household situations. It was observed in feld
visits, that women were getting goats aged
lesser than 6 months for sale in the haats.
2.3.2 Community awareness on goat rearing and
management Vaccination of goats
The community awareness on the importance of
vaccination as a preventive measure to protect
from diseases is missing. This leads to high
mortality rate among goats. This is said to be
around 20 to 25 per cent in normal situations. In
situations of Peste des Petits Ruminants (PPR)
the mortality is even said to be as high as 60%.
In both situations the loss of herd is severe
resulting in signifcant loss for goat farmers.
There is gap both at the demand as well as the
supply side. Vaccines and veterinary services
to extend vaccination are found missing on the
supply side. On demand side, awareness and
adoption of such practices is missing from the
community side. Feeding practices
The community feeds the animals from the waste
lands and forest lands especially during summer
and winter seasons. As it is diffcult to rear the
animal in waste lands and forest lands during
rainy season, the community collects leavesand
fodder and feeds the goats in the sheds. Leftover
/ decayed food in households is also used for
feeding the goats. Decayed food cause bacterial
infections among the goats. Stall feeding has
not been practiced by the communities because
of two main reasons (i) investment is required
for stall feeding that the community is not in
a position to make (ii) present market price
of goats in the area is not competitive to the
investment made for the stall feeding.
The community is not aware as to the type of
feed that needs to be provided for ensuring good
physical growth of goats with respect to both
height and weight. Disease occurrence among the goats
The disease occurrence was tracked through
collecting data on symptoms of diseases.
Symptoms were mapped with diseases. These
diseases have been causing immense mortality
of goats. Institutional and technical constraints
have also been furnished in the given table.
Annual Goat Disease severity cycle in Gaya
Prevalent diseases Season of high severity
PPR (Viral) Early Rainfall, Winter,
Sub acute form
throughout the year
Collective vaccine
demand is very low
PPR vaccine and
cold chain system
is unavailable in the
Goat Pox (Viral) Summer, early winter Community Awareness
of disease management
Vaccines are not in
Coccidiosis Winter Low awareness about
hygiene & sanitation in
High humidity helps it
to increase
Bacterial diarrhoea Throughout the year Absence of training
facility for goat
Low sanitation and use
of rotten home waste
as feed
Tympanitis (Gas
Winter Absence of village
based extension
Poor feed management
Acidosis Summer Low feed quality
High grain intake post-
harvest, Rice feeding
A Goat haat in operation
28 Access to veterinary services
Veterinary department
There are about 37 veterinary hospitals /
dispensaries in the district. Most of the
blocks have at least 1 dispensary with
a few having 2 dispensaries. The health
infrastructure is poor in these hospitals.
Cold chains and refrigeration necessary
for maintaining vaccinations is missing.
Irregular electricity supply also does not
help. Medicines, though available, take care
of only the general diseases like cold, fever,
viral fever, loose motions (diarrhoea).
Private medicine stores
Private medicine stores are another source
for accessing medicines. Veterinary medical
stores are missing and veterinary medicines
are maintained in general medicine stores.
The protection and promotion of goat health
demands two preconditions - (i) supply
of veterinary services (ii) demand of the
veterinary services. The supply side players
include the animal husbandry department
and veterinary hospitals. The demand side
players include the goat rearing community.
On supply side while vaccines have not
been made available, the medicines have
been made available for disease treatment.
On demand side, community is completely
unaware of the need for vaccination and
treatment services. Even when seasonal
illnesses strike the goats, the community
does not demand medicines from the
veterinary dispensaries. Neither veterinary
dispensaries nor private medicine stores
are approached to address illnesses. This
condition prevails due to lack of awareness
on goat management.
Little difference exists in goat rearing
practices across the three different goat
farmers. The level of understanding on goat
production and management is found to
be similar. Illiteracy coupled with strong
traditional practices prevents the goat
farmers to adopt the advocated practices.
2.3.3 Risk mitigation
To address the high mortality rate i.e., 20 25
per cent among the goats, the community has
not adopted any risk mitigation methodology
like goat insurance. It is observed that there
are gaps in both demand and supply side in
placing the risk mitigation measures in goat
subsector. At demand side the community is not
aware of the need of goat insurance services
thus the demand has not been created to the
goat insurance services. On the supply side the
insurance companies are not willing to launch
their products because the operating costs
estimated would be high because, reaching
scattered goat rearers in remote locations involve
high operating costs. There has been absence
of attractive schemes by the Government to
motivate the farmers to come under the fold of
2.3.4 Constraints at the production stage
The goat rearing activity has been integral
part of the livelihood portfolio of the
poorest of the poor and the marginalized
sections in the district. The limited ability of
investment and poor entrepreneurial ability
of these sections strongly impacted the
goat rearing subsector adversely to limit it
as a subsidiary activity rather than as an
independent and potentially entrepreneurial
The community awareness on goat rearing
and management is very low. Both supply
and demand side factors are equally
responsible for this. At the demand side
the community is not aware of the need of
scientifc approach in goat rearing, need for
utilization of veterinary services to improve
the goat health and prevention of diseases.
On the supply side the animal husbandry
department, veterinary hospitals have not
reached the community with their services.
Goat producers as a result have taken to
this activity at a risk.
There is a mismatch between the knowledge
seekers / suppliers. Community lacks
awareness on advocated practices related to
identifcation of goats, vaccination, feeding,
preventive measures against diseases etc.
The existing health infrastructure has not
been able to reach out to them.
The non-existence of risk mitigation services
may cause the poorest of the poor sections
to further go down economically due to the
death of goats.
2.4 Post production/ trading level
2.4.1 The Weekly Haats
At the post-production stage, the role of haat
is found vital in bringing the sellers and buyers
together and creating an opportunity for selling
and buying of goats. The haat is a geographic
location allotted to private players to run
livestock markets. Permission for the same is
given by the authorities through a tender process.
The validity period is one year. Person owning
the tender is named as Bazar SamithiThekedar
and this contract is for one year. The Bazar
SamithiThakedar monitors the sale transactions
of goats and collects cess charges from the
buyers. Haat provides following services for the
sellers and buyers:
Physical space to keep the animals for
Water facility to the animals
Shelter to keep the animal in case of illness
to the animal (for a day)
The haat does not provide veterinary and frst
aid services occurring due to extreme climatic
conditions like hot summer, heavy rains, cold
winds etc., Shelters available within haats is
not suffcient to even accommodate 10-15% of
the animals.
The Haats in the Gaya district are found as
platforms to connect the suppliers/sellers
which include share-rearers, small goat farmers
and large goat farmers with the buyers such
as local meet shop owners, local traders and
outside district traders
2.4.2 Trading of goat
Trading of goat at Gaya district takes place at
(i) Local haats/ markets and
(ii) Outside markets.
Trading at local haats/ marketsThe main buyers in
these haats include the local meat shop owners,
local traders, and outside district traders.
Local meat shop owners: This group creates
a major demand for goat in the haats. Meat
shop owners from important towns like Gaya,
SherGhati, Bodh Gaya, Tikari, and semi-urban
locations like Belagunj visit the local haats and
purchase goats from the sellers. The local meat
shop owner purchases about 15-80 goats to
meet the demand for goat meat for the week.
This also reduces the transaction costs incurred
by them on transport and feeding.
Local traders: The local traders fall into two
categories (i) Goat farmers, who want to rear
1-4 goats at their households and (ii) petty
traders who wish to buy goats from local haats
and supply the same to goat meat shops. This
category however is small.
Outside district traders:Outside district traders
visit the local haats through use of transportation
facility. They buy about 20-60 goats from local
haat and supply the goats to meat shop owners
located outside the district.
Trading at outside markets: Sometimes the goats
brought from the local haats are even sold in
neighbouring states like Chhattisgarh and Uttar
Pradesh to cater to the meat demand there. These
are supplied to the bulk live goat traders who
supply the goat to the other major towns like
Patna, Jahanabad, Lucknow, Munger etc.
2.4.3 Transport
The transport has been found to be a major
constraint for the growth of the subsector. The
sellers buy goats by walking, by bicycle and
by auto. The local meat shop owners in groups
of 2-3 jointly hire a mini truck/van, visit the
haats for procurement of goats and keep their
operating costs low.
Road and rail transportation is used by outside
district traders for transport of goats.
2.4.4 Price of the goat
The market price of the goat offered to the
sellers has been found to be comparatively
low. The major buyers include local meat shop
owners. The local traders try to keep the price
low to maximize their profts. Sometimes they
may even postpone purchase of goats to get
goats at lowest price possible. They prefer
visiting different haats rather than pay a better
price to the seller. Sometimes outside district
traders prefer to pay a better price than the
local traders if they get good number of goats.
In the entire subsector across the different
players the local goat meat shop owner takes
away the bulk of the share of the product value.
The product value at different levels is depicted
Way to Goat Meat market is so slippery in Gaya
Selling price of the goat (Live body weight basis) among different players in goat meat subsector
Local & outside
Meat shop owners
Price realised by
producer of Adult
goats (per kg BW)
Price realised by
traders per kg BW
Price paid by consumers per
kg BW
1. Share of Rs per kg live
weight in consumer paid price
25 50 70 80 90 100 110 120 130 140 150 160
Proft per kg live BW 26 36 10 20 30 10 13 16 20 23
2. Proft per goat (average 15
Kg Live wt)
400 550 150 300 450 150 200 250 300 350
3. Time gap for proft
8 to 12 months 10 to 15 days 3 to 7 days
4. Volume of operation 1 to 20 annually 10 to 50 Monthly 7 to 60 Weekly
Row 1 First two columns refers to price paid to
kid rearer (below 6 months) per kg live weight.
In some cases producer also have two levels,
one who produces kids by keeping goats and
second level, who purchase and grow them upto
one year age and sale it to traders. Two columns
are for 3 months and 6 months age kids.
In essence it shows that if farmer sales kid at
an early age he gets least price per kg body
weight. Trend in the area has been found that
traders vie for such small kids as prices paid
are very less and price of tender meat is high
and easy to sale by processing it in front of 2
to 3 customers
Row 2 and 3 Row 2 shows per kg live body
weight proft range realised at various actor
level. As per table a farmer gets proft in the
range of Rs 20 to 30 per kg live Body weight
(BW). But to get this proft he has to wait for
8 to 12 months. Looking into scale of 1 to
20 goats, Average proft in 8 to 12 months is
Rs 20 to 600 per kg of goats and assuming 15
kg average weight proft, as producer one earns
Rs 300 to 9000 by goat farming.
2.4.6 Constraints at post production/ trading
Firstly, fnding the goat as an instant income
earner for emergency household needs, many
times the community fails to determine the
price of the goat to yield maximum beneft out
of the activity. Secondly limited awareness
among the producers in determining the
price and no information on the market
prices turned the haats/ markets as buyer
friendly markets.
Non-existence of support services like
weighing machines, and no information on
market prices, and demand trends is also
making the community less confdent to
determine better price for the goats.
The exposure and access of meat shop
owners to different markets makes them
as price fxing factors mostly, thus the
community get less price and the meat shop
owners are getting maximum beneft out of
the entire goat activity.
Lack of community based institutional
structures for aggregation and collective
marketing of goats is also a key factor for
voiceless-ness among the community either
to demand the support services from the
government and also to fx better price
during sale of goat.
However local and outside traders earns
(Depending on market factors & seasonality) in
the range of Rs 10 to 30 per Kg live BW of goats
. However time gap in proft realisation is 10 to
15 days and turnover is 10 to 50. That means
effectively s/he earns in the range of Rs 100 to
1500 per Kg and for 15 Kg average body weight
goats , it gets multiplied to 1500 to 22500 in
one cycle .
Similarly meat shopkeepers (processors in other
sense) earn in with wide variation of Rs 10 to
23 per Kg live BW. As the volume is high and
operating cycle is low, the proft realised is much
higher than producer or traders. If we assume
average of 33 goats weekly slaughtered at his
shop, for average 15 kg goats, he earns Rs 7425
weekly (Average of per Kg proft*Average body
wt*Average number of goats).
So a meat shop owner in this value chain earns
not just by margin but more by short operating
cycle and high number of goats slaughtered
Operational units), while producer earns less
due to large operating cycle and less no of units
2.4.5 Estimating the value of the goat
The primary producers have been found to be
failing to determine the real value (actual
market value) for the goat. This is due to a few
important reasons
Women are the primary producers of the
goat and their level of market intelligence
is very low due to high level of illiteracy.
As the goat producers dont have exposure
to markets and trends in goat market they
are not able to fx the price of the goat.
The primary producers are not able to
calculate actual costs they have incurred in
terms of their time, interest on the principle
amount, transport costs incurred to bring
the product to the market etc.
Limited or lack of information on the market
price of the goat being offered in local as
well as other nearest haats.
Lack of access to required infrastructure
like weighing machines to fx the market
price on the basis of weight parameter.
2.5 Institutional Support Mechanisms
2.5.1 Infrastructure
In the case of goat rearing activity the
infrastructure like shelter, transport are essential
to prevent risk and also to realize better price
for the goat. As the goat rearing activity is not
considered to be an important activity in the
district economy either by the community or by
the government, no efforts have been made so
far for building required infrastructure. Common
goat shelters at village level/ panchayat level
were never found even in the areas where the
goat population is high.
2.5.2 Technology Transfer and capacity building
The following are few institutions working for
assisting the community in transfer of technology/
knowledge and building the capacities of the
ATMA: Agricultural Technology Management
Agency (ATMA) has been established in each
district as an autonomous institution providing
fexible working environment involving all
the stakeholders in project planning and
implementation. The ATMA is a unique district
level institution, which caters to activities in
agriculture and allied departments adopting
a Farming System Approach. ATMA is closely
working with the government departments like
agriculture, horticulture, animal husbandry and
other development players like CSOs in the Gaya
In collabouration with the animal husbandry
department, ATMA has started working on
promotion of goat rearing activity as a micro
enterprise activity. ATMA has taken lead in
promoting 10 goat farms with individual
farmers. ATMA as the technical supporting
agency has facilitated bank linkage for fnancing
the proposed farms. The Animal Husbandry
department is also a key player in the project.
Each of the farm consists of 10 12 goats and
a buck with the unit cost of 25000/-. ATMA has
provided 3-day training to the identifed farmers
on identifcation of quality goat, vaccination,
feeding and management of goat farm.
Women Development Corporation
Women Development Corporation (WDC) is a
registered society promoted and funded by
the Government of Bihar. WDC is working in
identifed blocks and thriving for promotion of
three tier institutional structures by bringing
women in to the SHG fold as a foundation tier.
On the top of SHGs a cluster level federation
and on the top of it independent federations are
being promoted. The WDC is assisting the SHGs
with Rs. 20,000/- Initial Capitalization Fund
(ICF) which is a repayable loan. This is being
provided to the SHGs to lend to their members
for livelihood activities.
2.5.3 Constraints in institutional support
Institutions like WDC and ATMA are working
with lesser number of households. But there
are lakhs of households requiring fnancial
and technical support
Efforts have been made to bring the goat
rearing households on to one platform.
This is to facilitate learning and introduce
technological and other changes in the sub-
2.6 Recommendations
Goat rearing as a subsidiary livelihood option
has been facing various constraints at all the
stages of the subsector which include pre-
production, production and post-production
stages. The following recommendations are
being made to strengthen the sub-sector based
on the observations: -
2.6.1 Door step health care and extension services
for Goat rearing
Goat rearing requires low cost door step
frst aid services and enhanced access to
knowledge and skills. There is an absolute
lack of such services especially to poor and
women goat farmers. Unless assured and
reliable women friendly health and extension
services are established, any investment
in goats may not fetch the desire benefts
and may even lead to indebtedness of goat
It is recommended that a village based women
led health and extension service model on
line of Livestock Nurse (PashuSakhi) as
propagated by Goat Trust (www.goattrust.
org) or BakariMitra as propagated by BAIF
should be taken on scale in the area.
The community needs to be thoroughly
sensitized to see goat-rearing as an
entrepreneurial activity. Seeing it as an ATM
(Any Time Money) only results in getting
limited returns on the goat. An entrepreneur
only sells his / her goat at its actual price.
Therefore building the entrepreneurial
abilities is vital to bring business abilities
among goat farmers.
2.6.2 Credit Services
To assist the community to rear the goats as per
their fullest capacity, the key constraint found is
lack of credit facility. Efforts need to be made
to assist the community in accessing the credit
services on a sustainable basis from the formal
fnancial institutions. As the SHG promotion
is gaining momentum in the district with the
involvement of various players like WDC, Ajivika
(BRLP), that opportunity can be effectively
utilized for assisting the community to broaden
the scope of the goat rearing activity.
The unit cost required for assisting an individual
household is worked out by having a series of
consultations with the community as well as
other stakeholders involved in the subsector.
The proposed unit is to assist the household
with three female goats with age of one year.
To reduce the risk, vaccination, deworming and
insurance services can be integrated in the
proposed unit.
Proposed fnancial product to assist one
Particulars Units
estimated in
i. Female goats (1year old) 3 6000.00
ii. Vaccination 2 times 30.00
iii. Insurance 5% on goat
iv. Deworming One service 20.00
Unit management costs
(ii, iii, iv services for next
generation goats)
Total unit cost 7750.00
The unit can yield a total amount of Rs.15,900
and the community will have Rs. 8,150/-
worth of goat asset after deduction of the
investment costs. (The investment costs include
unit cost i.e.Rs. 6,350/- and the vaccination,
insurance and deworming costs for the 12 other
goatsamounting to 4*350 = 1400/-. The total
investment costs Rs. 6350/- + Rs. 1400/- =
Rs. 7750/-)
Growth & economic projection of the proposed unit
i) Mother goats 3 3 3 3 3
a) Value of goats 6000 5400 4800 4200 3600
ii) 1st Generation 3 3+3 3+3+3 3+3+3+3
b) Value of goats 900 3000+900 3600+3000+300 4500+3600+3000+300
iii) 2nd Generation 3
c) Value of goats 900
Total number of goats (I + ii + iii) 3 6 9 12 15
Total Value of the goats (a+b+c) 6000 6300 8700 11100 15900
Note: The current reality in relation to purchase / sale of goats refects that sale value of 1st generation goats tends to be lower than the cost price
of mother goat purchased at its infant stage. This is due to disadvantageous position of seller in goat market where market is buyer friendly rather
than seller friendly. Therefore the least price that a goat rearer gets for his goat has taken in to consideration.
By keeping the poorest of the poor and ultra-poor
households in mind the above fnancial product
was developed and two units of support i.e.
Rs. 15,500/- can be offered to the households
who demonstrate better interest and adoption of
best practices in rearing the goats.
2.6.3 Education and Training on advocated
To address the knowledge gap of the community
in goat rearing and management it needs to be
addressed in a systematic manner. The key gaps
at different levels include
Identifcation of quality goats
Preventive care
Scientifc Feeding practices
Animal health management
Scientifc Breeding practices
To address these gaps carefully and to develop
a nurturing mechanism to the goat rearing
community the Pashu Sakhi (www.goattrust.org)
model can be adopted. An investment on training
tools and materials appropriate to context shall
be critical. Competitions amongst goat farmers
for improved quality goats and adoption of
improved practices should be critical element
of approach.
2.6.4 Role of women in goat trading & marketing
Women, although in limited number, have shown
propensity of taking lead roles in goat trading
and marketing in Gaya and its adjoining districts.
As trading determines the adoption of practices
and ultimate price realisation by goat farmers,
it is strongly recommended that selected SHG
members can be further trained, capacitated and
fnanced for goat trading in the cluster.
2.6.5 Infrastructure development
In the case of goat rearing activity, shelter is an
important input vital for preventing the seasonal
diseases among the goats. There is a need for
development of common goat shelters in the
villages where the poorest of the poor families
take them up like in Pali village of Belagunj
block, or Parasama village of Banki Bazar block.
This helps the community to keep their goats in
common goat shelters and prevents them from
climatic diffculties.
2.6.6 Community based institutional model
Due to lack of community based institutional
model, many times the community becomes
passive in procurement of goat, accessing
services and fxing better market price for
their goat. To address these issues and to
build communitys confdence in managing the
subsector the three tier institutional structure
may be a feasible and viable structure for
promoting the goat rearing activity as a
potential livelihood option for the targeted
poorest of the poor and marginalized sections.
Institutional tier Size/ scope/ Features Expected roles
Self Help Group Women will be the members of SHG To facilitate savings and internal lending
10 14 members in one SHG. Leverage fnancial services from the formal
fnancial institutions
SHG will be an unregistered body Platform to share and learn from each other
specifc to goat rearing activity.
Women from the families somehow related to
goat rearing activity will only come in to the
group fold.
To help the members in determining the price of
the goat before they go to the market by using
the services made available by the cluster
The SHGs may not be concerned with caste,
community or religion
Must be from one village and preferably from
the nearest living location.
Cluster level SHG
The cluster federation will be promoted for
every 5 to 6 villages
To support the SHGs in terms of effective
management of fnancial and goat rearing
related activities.
All the members of the SHGs will be the general
body of the cluster federation
To assist SHGs in getting link with the banks for
credit services.
The cluster federation will continue like an
unregistered body.
To establish simple infrastructure like weighing
machines in each of the village to help the
member to estimate actual value of the goat.
The executive body will be formed with the 4
5 member (one from one SHG) representation
from each village.
To conduct village level awareness programmes
on best practices.
To explore the possibilities for aggregation and
bulk sales
To act like a bridge between the SHGs and the
block level federation
To deliver veterinary services through community
veterinary nurse system
Block level
The block level federation will be on the top of
all the cluster federations in the block
Assist SHGs and cluster federations in educating
the communities on best practices in goat
The executive body will be formed from one
representative from each cluster federation.
To workout and initiate community based
insurance service for risk mitigation.
Will be a registered entity, can be a producers
company/ cooperative federation.
To explore better markets and thrive for enhance
the price of the produce
To train the veterinary nurses with the support
of the external resource agencies.
To coordinate with the haat care takers to
ensure better services for the goat sellers.
To support the SHG members at the haats to get
better prices.
To establish linkages with different stakeholders
to realize the training and resources for enhancing
the production ability of the members
Strengths of the institutional structure
The proposed institutional structure has been
viewed from different perspectives before
proposing. The strengths of the proposed
community institutional structure are:
Primarily bringing women in to SHG fold
will help them to be part of the mainstream
model. This will also help women members
to have better opportunity to access credit
services from the formal fnancial services
and also opportunity to leverage the funding
support from the BRLP.
The cluster federation as a middle level
structure takes care of adoption of best
practices by the SHGs in terms of both
fnancial and goat rearing activities. Unless
this kind of monitoring and mentoring
support is extended, SHGs cannot run on
their own in the initial stages.
The key gaps identifed in the goat rearing
subsector will be carefully addressed by
the institutional structure. For example on
initiation of the veterinary nurse services
the mortality among goats will be reduced.
Similarly establishment of weighing
machines will help the women members to
estimate the correct value of their goat.
The top institutional structure being a
registered entity, coupled with large
representation of goat farmers, can liaison
with various government agencies to
leverage schemes to beneft their members.
Bringing large number of goat farmers on
to a common platform will give a lead to
develop a community insurance model to
bring out goat insurance services for goat
at affordable prices.
3.1 An overview of the Subsector: National
NCAER in its study of Agarbatti market observed
that the value of Agarbatti industry is placed at
Rs 1,800 crores and the rate of growth is 20%
on a year-on-year basis. There is no precise data
about the industry, but the All India Agarbatti
Manufacturers Association estimates that it has
annual turnover of about Rs. 2,000 crores, and
has grown at an annual rate of between 10-15%
during the period 2003 to 2008. About one-ffth
of the production is exported.
Agarbatti Industry has responded well to
increased demand for its products both in rural
and urban areas, mainly because of the continued
availability of cheap labour force dominated by
women and children.
Agarbattis also known as Incense Stick are
made from aromatic plants and essential oils
extracted from plants or animal sources. When
lighted, they release fragrant smoke which is used
in religious activities, prayers, therapeutic and
aesthetic purposes. These have been used since
times immemorial as an integral part of Hindu
deity worship. In India, there are about 10,000
Agarbatti manufacturing units in the country
including tiny, small and medium enterprises,
besides another 200 well-established ones
having over 50 branded Agarbattis. Nearly 12
lakh people are directly or indirectly employed
by the industry.
India is exporting a wide range of Agarbattis
or incense sticks that have natural, exotic
fragrances extracted from jasmine, sandalwood
(chandan) and rose. The incense sticks are
packed in attractive packaging.
India exports a
wide variety of natural Agarbattis made chiefy
from rose, sandalwood and jasmine. Although
it is the worlds biggest exporter of incense,
supplying more than half of worlds total
Agarbatti consumption, there are only a few
major production units in the country. Only about
twenty percent of the entire market is occupied
by the well established brands while the rest
is governed by the small scale rural units.
Agarbatti manufacturing still remains a labour
intensive cottage industry in India, employing
mainly rural women and children.
Agarbatti (Incense sticks or scented batti) is
commonly known as Dhoopbatti. Agarbatti has
been used since long in religious prayers at the
household level and as a room freshener. The
journey of Agarbatti manufacturing which began
from Thanjavur region of Tamil Nadu in South
India has gradually spread to other parts of
the neighbouring states. Agarbatti industry now
prevails in Karnataka, Tamil Nadu, Gujarat and
Chapter 3 - Incense Stick (Agarbatti) subsector
National Council of Applied Economic Research (NCAER) study
G.P. Gandhi, Indian Agarbattis in Foreign Lands, Market Survey
It is estimated that there are more than 5,000
small businesses in India which carry out the
fnal process after the non-perfumed sticks have
been rolled mainly by self-employed women,
working at home. These businesses put in the
perfume and package the fnal product. 80-90%
of the raw Agarbattis are made by women at
their home on a part-time basis. It is estimated
that at least 1 lakh tonnes of Agarbattis are
produced in India every year.
This creates about 16 million days of work and
provides supplementary livelihood to about 2
lakh people. Over and above that, an additional
10 million work days are used in making the
bamboo sticks which are in turn the basis for
the raw Agarbattis.
3.1.1 Agarbatti sub-sector: District Context
Gaya houses the second largest small scale
industry for production of raw Agarbattis in
India after Bangalore. Agarbatti business in Gaya
started in 1940s
and operates in the informal
sector. The enterprises are located in both rural
and urban areas. The labour force engaged is
largely unorganized, and do no accrue any of
the social security benefts enjoyed by their
counterparts in organized private undertakings.
There are more than 1000 units
operating in
the sector, with unregistered units outnumbering
the registered ones. As per the DIC report of
2006-07 there were 156 registered units. These
units are spread across rural and semi-urban
households, providing employment opportunities
to few lakh household
based women workers
(and their children) in the 5 districts under
Magadh commisionary. The industry thus leads
to home-based income generating opportunities
for very large numbers of women. In addition to
these women, a further 4-5 million people are
employed in other segments of the sector. In
total, women constitute 90% of the workforce,
with approximately 80% working as home based
family labour. The production requires simple
technologies and low capital investments, the
Agarbatti industry is highly labour intensive.
Agarbatti produced in Gaya is exported to Delhi,
Mumbai, Bangalore, Calcutta and Indore for
aromatization with various fragrances before
packing and marketing in India and abroad. This
is one of the traditional trades of Gaya like
woodwork and textile. The trade has grown at a
much faster pace in last couple of decades.
It is estimated that out of the total population
of 4-5 lakhs of the district about 10% are
engaged in some or the other component of this
cottage industry. Muslims, Scheduled castes and
form the main work force. The SC
population in Gaya district is 29.64% and Muslims
constitute 11.62% of the total population. Women
from these communities are engaged in different
components such as rolling, scenting, sizing,
colouring, packaging etc. of incense sticks. There
are very negligible scenting units in Gaya such
as the Bhandara brand. These are largely located
outside the district/ state. On an average in a
day an individual is able to roll about 2-3 kg of
raw material into the incense sticks for which
they are paid Rs. 14-16 per Kg. The maximum
amount earned per day is about Rs 50.
18 Salient features of the Agarbatti sector in
Gaya District
Highly unorganized
Agarbatti sub-sector cuts across various
industries namely Bamboo stick
manufacturing, charcoal manufacturing,
jigat powder manufacturing, scenting and
packaging industry.
Specialization largely with lower value
tasks within the district and higher value
tasks outside the district / state.
Despite being the second largest producer of
raw Agarbattis within India, the larger value
addition in terms of scenting and packaging
takes place outside the district.
A major source of remunerative employment
for poor women and disadvantaged members
of rural society
By providing off-farm income generation
options these livelihood systems absorb
surplus agricultural workers, mainly the
rural poor who do not have regular on-farm
NAs said by MrHaq who is in the business for last 50 years Market study of Incense stick making in Gaya - TLS
As said by MrHaq who is in the business for last 50 years Market study of Incense stick making in Gaya - TLS
As elicited by talking to retailers, dealers and rollers - Market study of Incense stick making in Gaya - TLS
The poorest dalits are declared as mahadalits in Bihar. They constitute about 31% of total dalit population in Bihar.
Women Development Centre, Agarbatti mechanization in Gaya District
In Gaya, it is estimated that 2 lakh women
most of whom are contract or sub-contract
labourers are employed in the small-scale
processing enterprises.
Agarbatti industry operates in the informal
sector. The enterprises are located both
in rural and urban areas. The labour force
engaged is largely unorganized.
There are also cultural and ethnic factors
associated with the employment structure
of the industry. Families from the Maha-dalit
and minority communities from Gaya district
are found to be predominantly engaged in
the sector.
Manufacturing is done on a piece-meal basis,
with individual families being contracted to
assemble Agarbatti sticks.
The daily income of an Agarbatti worker
remains low and erratic. On an average a
household can roll 2-3kgs of Agarbattis in
a day and the wages for per kg of rolling
for super fne (Barik) is Rs. 18, for medium
Rs. 15 and for super medium Rs. 16.As per
grading on an average a roller earns Rs15 /
kg and Rs. 30-Rs. 45/- per day.
The lack of research and development
institution has not allowed Gaya to enter
into the scented Agarbatti production on a
large scale.
Gender employment patterns within
Agarbatti production indicate that women
are largely employed as wage labourers
with little exposure to markets. Women-run
enterprises are absent.
Existing models within the sub-sector
in terms of the division of labour offer
little opportunities to promote women-led
enterprises and promote exposure of women
beyond Agarbatti rolling.
Despite some initiatives to engage SHGs,
increasing the returns for women members, it
needs to focus on increasing exposure levels
with a focus on women empowerment.
High prevalence of child labour in Agarbatti
raw production.
Women and children exposed to a variety
of occupational health problems with
inadequate systems to take care of their
Raw Agarbatti producers obtain very little
value for their produce despite the economic
engagement of the household.
This sector has tremendous potential and is
capable of creating livelihood opportunities
in the rural pockets, especially for the
women. It is a cottage industry, as a result
of which large-scale rural employment can
be created to generate self-employment and
increase the standard of living among the
rural communities. The existence of strong
informal market players is a big constraint
in uniting the large number of Agarbatti
rollers in the district.
3.2 Sub-Sector Map
3.2.1 Pre-Production sub-system
The pre-production system involves procurement
of raw materials namely charcoal, jigat powder,
norua and bamboo sticks from various parts of
the country as well as abroad.
Charcoal is the dark grey residue consisting
of carbon, and any remaining ash, obtained by
removing water and other volatile constituents
from animal and vegetation substances.
Charcoal is usually produced by slow pyrolysis,
the heating of wood or other substances in the
absence of oxygen It is usually an impure form
of carbon as it contains ash; however, sugar
charcoal is among the purest forms of carbon
readily available, particularly if it is not made
by heating but by a dehydration reaction with
sulphuric acid to minimise introducing new
impurities, as impurities can be removed from
the sugar in advance. The resulting soft, brittle,
lightweight, black, porous material resembles
The binding material in Agarbatti manufacture
is Jigat. Jigat in Kannada and Telugu means
sticky. Jigat is trade name of powdered barks
of Machilusmacrantha and Litseachinensis. Jigat
powder is a sticky substance which helps in
sticking the dough consisting of charcoal powder
and norua powder. The bark of Machilusmacrantha
(Lauraceae), a large tree, found in Bihar and the
Deccan Peninsula has been of importance for the
survival of the Agarbatti (incense stick) industry
in India. Powdered bark of M. macrantha known
as JIGAT in trade, functions as an adhesive or
binder in Agarbatti manufacture. When mixed
with water it forms an ideal material to bind
wood charcoal, aromatic roots and herbs to the
bamboo splint. Besides good binding properties,
it combines well with other raw materials and
does not infuence the natural aroma of perfumed
sticks. Over the years, the expansion of Agarbatti
industry has infated the demands for Jigat,
thereby leading to indiscriminate onslaught on
Machilus trees for their bark. The result is high
mortality of this species which is a valuable
component of the evergreen and semi-evergreen
forests of the Western Ghats and the north-
eastern states.
Bamboo sticks are procured primarily from
Tripura. The North-eastern States have pioneered
in the production of raw bamboo sticks due to
the abundance of bamboos in these areas. The
State of Tripura is contributing 80% of total
requirement of raw bamboo sticks for hand
rolled Agarbatti. The assorted Agarbatti are
made in rural pockets of Tripura as a house
hold activity. Four grades of bamboo sticks are
made as per the market demand with different
rates, lengths and thicknesses. The required
raw materials (bamboos) are collected from the
adjoining forest or local market. The raw sticks
come to the local haat(market) on a weekly
basis. The agents collect the sticks as per rates
and specifcations.
Processes Players involved Details
Procurement of
charcoal powder
Procured from
Kanpur, Bhutan
and Jharkhand
Procurement of
jigat powder
Procured from
Assam, Nepal
and Jharkhand
Procurement of
Procured from
Procurement of
bamboo sticks
procurers, Forest
from Assam
and Tripura
Supply of raw
materials to
Home based
Agarbatti rollers
Raw material
Agents, Home
based producers
Raw material
send the same
to village level
Village agents
provide the
raw materials
to home based
The different players involved in pre-production
state and their roles are as below: -
Sub sector
Raw material
Mostly located outside the district/ state.
They are also located within the district.
Supply various types of raw materials as
required by raw Agarbatti manufacturing
units as required.
Raw materials procured from different
locations charcoal from Kanpur,
Jharkhand and Bhutan; Jigat powder from
Jharkhand, Assam and Nepal; Bamboo
sticks from Assam and Tripura; Masala
powder from Bangalore.
Raw material
Raw material procurers procure the raw
materials from external and internal
Supply the same to unregistered and
registered manufacturers
3.2.2 Production Process
Processes Players involved Details
Raw material
supply to Village
level agents
Village level
Raw material is
transferred from
to village level
Raw material
supply to Home
based producers
Village level
agents, Home
based producers
Raw material is
transferred from
village level
agents to home
based producers
Dough preparation Home based
Charcoal, Jigat
and Masala
powder are mixed
and a dough
Agarbatti rolling Home based
women and
The dough is
rolled onto
bamboo sticks
Raw Agarbatti
Home based
Raw Agarbatti are
dried in sunlight
Raw Agarbatti
hand over to
village level
Village level
agents, Home
based producers
Raw Agarbatti
is transferred
to village level
Raw Agarbatti
handover to
registered /
unregistered units
Village level
Raw Agarbatti
is transferred to
Jenner, V.G & Reza, Md. Selim., Agarbatti: A sustainable bamboo cluster based rural enterprise
The players involved in this stage and their
respective roles are as follows: -
Sub sector
Raw Agar-
batti manu-
Handover the raw materials to home
based producers through village level
Collect the fnished raw Agarbattis
through village level agents.
Sort out the raw Agarbattis based on
quality checks.
Package and send the raw Agarbattis to
Village level
Act as a link between the raw Agarbatti
manufacturers and home based
Supply the raw materials to home based
Collect the fnished raw Agarbatti from
home based producers and send it to raw
Agarbatti manufacturers.
Home based
Includes women and children in
Primary producers of raw Agarbattis.
Prepare dough, roll Agarbattis, dry and
return the fnished products to village
level agents.
Following types of raw Agarbattis are
manufactured in the District based on the size
of the stick in milli metre:-
Particulars Description
Hand rolled
Agarbatti (8)
Thin (Counting per kg, 1400-1700)
Medium (Counting per kg, 1100-1300)
Super (Counting per kg, 800-1100)
Hand rolled
Agarbatti (9)
Thin (Counting per kg, 1400-1700)
Medium (Counting per kg, 1100-1300)
Super (Counting per kg, 800-1100)
Hand rolled
Agarbatti (10)
Thin (Counting per kg, 1400-1700)
Medium (Counting per kg, 1100-1300)
Super (Counting per kg, 800-1100)
The contractors transfer the raw materials to
village level agents. The village level agents
transfer the raw materials to home based
producers. On an average each household is
provided about 50 kilos of raw materials which
includes charcoal, jigat powder, bamboo sticks
and masala powder. Charcoal, Jigat powder and
masala powder are mixed to prepare dough. The
dough is rolled onto the bamboo sticks. These
are then dried. 1 kilo of Agarbatti includes
300 grams of charcoal, 400 grams of jigat and
300 grams of bamboo sticks. The home based
producers at the end of the production cycle of
15 days hand it over to village level agents. The
village level agents transfer it to registered /
unregistered units.
3.2.3 Processing system
Raw Agar-
batti sorting
Raw Agarbatti sorting
involves removing out
damaged Agarbatti and
tying them in one kilo
bundles. Sorting is done
based on parameters such
as burning consistency,
length consistency,
thickness, burning time,
split bamboo.
Packaging Packaged in
Packaged in bags
consisting of 40 kilos of
to Agarbat-
Raw Agarbatti is sent to
scenting industry mostly
in Bangalore and to a
little extent within Gaya
Scenting Scenting units,
Scents are mixed in as
per required combinations
(formulas) to get the
necessary smell
The raw Agarbatti are
dipped into the solution
The scented Agarbatti
are dried
Packaging Scenting units,
Packing the scented
Agarbatti in the
These are bundled in 1 kilo packs and handed
over to village level agents. The village level
agents transfer it to small scale units. These
are sorted based on quality check parameters.
These are bundled in 1 kilo packs with 40 kilos
of raw Agarbattis in each bag and sent to the
scenting units. The scenting units are largely
located outside the district. There are a few
units within the district largely running small
scale units with its own brand or have tie ups
with larger industries. There are also a few
scenting units located within the neighbouring
Munger district. However, the raw Agarbattis are
largely sent to Karnataka and to some extent in
UP. The scenters have various types of perfumes
which are mixed in the specifed proportions.
The Agarbattis are dipped into the solutions that
are prepared. These are then dried and packed.
Apart from various perfumes such as sandal,
the perfuming unit may also use oil, honey,
gangam, vaseline, citric acid, Tonalizeo BS,
Babul powder.
Sub Sector
Scenting units Prepare fragrance solutions and
perfumes based on chemical
Dip the raw Agarbatti into the
Pack the scented Agarbatti and send
it to wholesale distributors.
Packagers Manufacture packaging materials for
the scenting units.
Transporters Transport raw Agarbatti to scenting
Transport scented Agarbatti to
wholesale distributors.
3.2.4 Market Sub-system
Processes Players Involved Details
to wholesale
Scenting units,
The scented
Agarbattis are
sent to wholesale
from wholesale
Retailers acquire
the same from
The scented and packaged Agarbattis are
transported to wholesale distributors. Wholesale
distributors may be exclusively or inclusively
dealing with Agarbattis. From here these are
purchased by retail distributors.
The role of the players involved in this stage
includes the following: -
Subsector Players Their Role
Whole sale
Procure scented Agarbattis from
small scale scenting units and large
Supply the scented Agarbatti to
Retailers Purchase the scented Agarbatti from
wholesale distributors.
Make it available for the ultimate
Map of Agarbatti subsector Gaya district
Value addition in different stages of value chain
Agarbatti variety
Price per kg
(in Rs.) raw
Price per kg
(in Rs.)
production stage
raw Agarbatti
Price per kg
(in Rs.)
scenting stage
Price in kg
(in Rs.)
processing -
packaging stage
Price in kg
(in Rs.)
marketing stage
Thin (Counting per kg,
30 70 150 195 250
Medium (Counting per
kg, 1100-1300)
28 60 138 180 235
Super (Counting per kg,
26 56 130 175 225
(Note: The number refers to the number of Agarbatti per kilo. The thinner ones fetch more number of Agarbatti per kilo and has higher price. Even the
wages for the thinner ones are higher. Kindly also note that the actual price after marketing may be much higher than referred above).
3.3 Value Chain
The feld visits by the team revealed the pattern
of value addition in different stages of the value
chain process as detailed in the above table.
However, the above mentioned is only a general
pattern. The real price largely depends on
the quality of raw materials used, the type
of perfumes used, the brands, the marketing
strategy used etc., In the whole value chain i.e.,
from the stage of pre-production to consumption,
women are involved in lower end processes as
Agarbatti rollers. They are also assisted by
children. Manufacturers outsource the production
processes to home based workers. A few may
be involved for quality control. Home based
Agarbatti workers are given the raw material
comprising of bamboo sticks, jigat powder
and charcoal by contractors for rolling. The
equipment used is a low wooden board 3 sq. ft.
in size around which the workers squat rolling
the sticks on the board. Rolled raw Agarbattis
are supplied by the contractors to the factories
where the perfuming drying and packaging are
carried out. Women workers are also employed
in factories as packers. The raw material and
labour costs involved in rolling raw Agarbattis
together constitute only 10% of total costs with
manufacturers controlling all the high value
processes (perfuming 30%, packaging 30%
and marketing & overheads 30%) within the
factory premises. The bulk of the consumption
is domestic with only 10 -15% being for the
higher value export segment. Consumers tend to
be concentrated in rural areas and belong to the
lower and middle income stratas.
H.G. Hanumappa, A bamboo based industry in India, INBAR working paper 9, 1996
In the case of incense stick making, while the
fnal price (paid by the fnal consumer to the
retailer) is in the order of Rs. 420 per kg, the
returns to labour at the rolling stage is only Rs.
14 (less than 5 per cent of the fnal price). Labour
is involved at the above stage, with a signifcant
presence of women folk of the poor households
who pursue this activity to supplement the
incomes from the primary sources of livelihoods.
A very small proportion of manual labour is
involved at the stage of perfuming, where the
labour gets a daily rate wage of Rs. 120 per
day. The labour involvement, though intensive in
terms of magnitude of efforts put in across the
entire production chain, is however not refected
in terms of the returns. Involvement of poor
households is found to be at the lower ends
of the value chain of incense stick production
(given the need for limited skills at the rolling
stage), and therefore yielding low returns to this
Value addition Super Agarbatti
Unit cost
(per kg)
Raw Agarbatti Rs. 42 10%
Agarbatti price after
Rs. 168 30%
Agarbatti price after
Rs. 294 30%
Agarbatti price after
Rs. 420 30%
(Note: The table tries to show how value addition takes
place at different stages of the value chain. The actual
value addition may vary but do broadly refect the trend)
Graphical representation of value addition at
each stage of the value chain
materials required by the Agarbatti sector are
primarily drawn from the forest based resources
whether bamboo sticks, charcoal or jigat. Due
to restrictions on extracting forest resources
there is a need arising to get the raw material
resources from outside states. Sometimes it
needs to be procured from outside the country
also e.g., recently jigat is being imported from
countries such as Vietnam. The manufacturers
have started feeling the heat of non-availability,
shortages, price increase etc. The shortage
of raw material is a major hindrance for the
development of the sector. Technology
It was largely expressed by the traders that
the technologies could be of little value. The
technologies in existence for production of raw
Agarbatti arent in a position to produce quality
raw Agarbatti. Hand rolled Agarbatti produce a
better quality of raw Agarbatti. Hence it was
expressed that they would continue to rely
on hand rolled Agarbatti instead of going for
machinery. Policy Context
From the perspective of the manufacturing /
trading actors, the liberalization of the economy
and deregulation has had a positive expansionary
impact on the Agarbatti sector with increased
exports, revenues and employment generation.
Certain legislations related to labour laws are
seen as constraints: such as Minimum Wages Act,
1948; Equal remuneration Act (1976); Contract
Labour (Regulation and Abolition) Act, 1970. Lack of support industries
Most of the supporting industries such as
perfume industry and packaging industries are
located outside the Gaya district. This results in
dependence on outside states. For the purpose
of perfuming, it needs to be sent to Karnataka,
Uttar Pradesh, Gujarat etc.Even for packaging
purposes, the materialsare procured from
outside the district till recently. Only recently
the packaging materials are being gathered to a
limited extent from within the district.
3.4 Constraints
The nature of constraints varies for the Traders/
Manufacturers and Agarbatti rollers.
3.4.1 Constraints of Traders / Manufacturers Raw Materials
Traders were of the view that there is shortage
of raw materials of late. The raw materials
are not available locally. Hence it has to be
procured from other states. There has also been
increase in the cost of the raw materials. The raw
3.4.2 Constraints of Agarbatti rollers Low income for the produce
The Agarbatti rollers receive low income for the
produce. Despite the engagement of the whole
household in the production process, they receive
about Rs. 50 per day. Even if the household
works for the whole month without a rest day,
they manage a maximum of Rs. 1,500 a day. Lack of involvement of Agarbatti rollers in
high end value processes
The Agarbatti rollers are not involved in higher
end value processes. The raw Agarbatti fetches
only 10% value as compared to the price it
fetches once it undergoes through scenting,
packaging and reaches the ultimate market. This
is despite the labour time involved which is
80% of the total time involved. Lack of credit linkage
Despite the lower level of income, the Agarbatti
rollers continue to depend on village level agent
linked to the manufacturer. In times of fnancial
need, the village level agent / manufacturer
meets the small credit needs of the roller. As
they meet credit needs from the village level
agent, they continue to maintain the relationship
with village level agent / manufacturer and
accept whatever wages are offered. Lack of exposure to market
As mentioned earlier,Agarbatti rollers continue
to be engaged in the lower end value processes,
which is restricted to merely rolling. As a result
it offers them very limited opportunities for
developing an understanding of the markets and
market behaviour. Absence of supporting industries
The related industries namely the scenting
industries and packaging industries are not
located within Gaya district. As a result women
have limited scope to get engaged with higher
end value addition processes.
3.5 Social and Environmental context
This activity is pursued by Maha-dalit and
minorities - who form the most disadvantaged,
economically and socially weaker segments of
population in Gaya district. In the absence of
a regulatory environment ensuring protection of
informal sector workers and largely falling in
the unorganized sector, they do not have any
social security benefts. There are violations of
various laws which include the Minimum Wages
The problems of Agarbatti workers are not
confned to wages & lack of social security
alone, their working conditions remain extremely
dismal. Confned to dark dingy rooms without
proper ventilation & lack of safety gear, health
hazards pose serious risks. The common health
problems that these women face include body
pain, back pain, body ache, chest pain, dizziness
and exhaustion, head ache, neck pain, pain in
abdomen, shoulder pain & pain in the limbs due
to the repetitive nature of work, skin & dust
The Agarbatti rolling process involves high
prevalence of child labour. Both girls and boys 6
years and above are engaged in this occupation.
They are burdened to support their families in the
process of raw Agarbatti production. Sometimes
these are at the cost of diverting time away
from study and play necessary for healthy
development of children. Having grown in an
environment where the surrounding community
is largely involved in Agarbatti rolling, they show
a tendency to continue this family occupation
reducing social mobility.
The sector is seen as being on the path towards
unsustainable growth in relation to availability of
raw materials. The species Maclilusmakarantha,
the tree source for jigat powder, has declined.
The material is expected to dry up relying on
dependence on other countries. Increased
cutting of trees to meet the need for bamboo
sticks and burning of trees for meeting charcoal
needs is bound to contribute to negative effect
on environment.
3.6 Recommendations
3.6.1 Form community based institutions of
Agarbatti rollers
There is a need to form community based
organizations of Agarbatti rollers. They need to
be brought under a three tier institutional set
up. These are at the level of SHGs (Self-Help
Groups), Panchayat level organizations (PLOs)
and Agarbatti cooperatives (at block level).
3.6.2 Promoting engagement of women with
Under the present set up the engagement of
women with the market is absent. As a result
awareness levels on markets are limited. There
is need to engage women with market processes
which involves procurement of raw materials
and selling of fnished raw Agarbatti. With a
federated cooperative structure for the SHGs,
market linkages can be established at a central
level, giving the women entrepreneurs better
negotiating positions and larger share of returns
from the value additions. Since the market is
currently dominated by informal and small scale
traders, it will be a challenge to break their
control through traditional marketing routes.
Tie-ups with more organized channels, similar
to the venture launched by the corporate group
of ITC, holds much promise.
3.6.3 Extend credit and insurance to Agarbatti
As group entrepreneurs, women members can
procure raw materials on their own if a line of
credit is available. This will help break their
dependence on private supplier who provides
the raw material and appropriates huge margins
of proft. Agarbatti rollers also need to be
extended credit products for meeting various
productive and well-being needs (education,
health). The vulnerability of Agarbatti rollers
to occupational health issues poses a major
challenge. This necessitates bringing them under
health insurance coverage. This is apart from
the fact that occupational environment should
be improved to ensure health and safety.
3.6.4 Promote common storage places
Agarbatti rollers fnd it diffcult to dry the
rolled Agarbatti during the rainy season. Due to
shortage of space within the houses, they are not
in a position to dry the rolled Agarbatti. Hence
they usually resort to accepting limited amounts
of raw materials for Agarbatti production
during rainy season. This reduces their income.
Promotion of common storage locations will
enable them to address the problem.
3.6.5 Promote involvement of women in higher end
value addition processes
At present involvement of women is merely
restricted to rolling process, which is at the
lower end of the value chain processes. Their
involvement in value addition processes such
as perfuming, packaging is limited. There is a
need to promote their greater involvement in
these value addition processes. As outlined in
the point 6.2 above, forward linkages to higher
levels of value-chain can be facilitated through
centralized operations by the cooperative
3.6.6 Promote fnancially literacy and
entrepreneurship training
There is absence of women led enterprises in
Agarbatti sub-sector. Promoting the same would
go a long way in building entrepreneurship of
women. This will be possible among other things,
also the need to offer them fnancial literacy
and entrepreneurship training.
3.6.7 Promote business development services
Business development services which meet the
requirements of aspiring micro-entrepreneurs
can enable promotion of women led Agarbatti
3.6.8 Build linkages with bigger players
Efforts could be made to build direct linkages
with bigger players like ITC, Cycle brand of
Agarbatti. The community institutions could
take up the roles earlier largely performed by
middlemen. The roles being performed by village
level agents could be taken up local persons
representing SHGs within the village.
3.7 Community led Enterprise Model
Parameters Expected role
1 SHG (Activity
Agarbatti rollers to form SHGs Aggregation of groups with similar economic
background and economic interests.
Homogeneity of the groups to be maintained
based on social background
Formation of the base economic activity
based social capital of Agarbatti rollers.
Provide an opportunity to discuss and
debate issues of common economic interest
related to the activity (besides other SHG
2. Panchayat level
of Agarbatti
One nominee from each SHG of Agarbatti
rollers in the village to be part of the
Panchayat level organization of SHG rollers
This will enable them to build a larger level
economic activity grouping of Agarbatti
PLOs of Agarbatti rollers to act as mediating
agencies between home-based Agarbatti
producers and Agarbatti manufacturing
small units.
PLOs take up the role traditionally
performed by Agarbatti village level agents
but this time it is community controlled.
3. Cluster level
of Agarbatti
The cluster to be formed in identifed block
levels where the activity is highly prevalent.
The federations to be registered as
cooperatives of Agarbatti rollers
Cluster level federations to act as agencies
which aim at expanding the role of women
beyond rolling into higher value addition
Towards this the CLFs build capacities of
women rollers to engage with the markets.
Federations to act as agencies which
establish direct contacts with small /
medium / large factories engaged in
Agarbatti production.
Federations play a role in bulk procurement
of raw material inputs from wholesale
suppliers and sell off fnished raw /
perfumed Agarbatti to large factories,
wholesale sellers.
Federations work toward building fnancial
literacy of the SHGs (including the
economics of Agarbatti rolling business and
group entrepreneurship) among SHG women
engaged in Agarbatti rolling. This will be
with the aim to build micro-entrepreneurs
and micro-business rather than restricting
them as wage workers.
Federations to also act as agencies which
take care of occupational health needs of
Agarbatti rollers through engaging services
of medical practitioners.
3.7.1 Rationale for the said Model
The traditional model as is visible in Gaya
district offers little opportunity for women
Agarbatti rollers to make a shift from that of
wage workers to that of micro-entrepreneurs. The
working conditions are poor with little scope for
getting engaged in value addition processes.
Being largely engaged with the lower end
processes and totally cut away from the market
based processes, scope for enhancing their role
in the markets and empowering women is limited.
It is in this context, an institutional model which
brings women with similar economic activity and
economic interests at various levels will help in
expanding their role.
Moreover, certain initiatives have already
started in Gaya district with the partnership
of Bihar Rural Livelihood Program (BRLP),
Women Development Center (WDC) and District
Industries Centre. Agarbatti mechanization has
been introduced in 5 clusters. Accordingly 50
machines have been introduced in each cluster
totalling 250 machines. The plan is to expand
the same to 10,000 machines. While these
initiatives are appreciable in terms of reducing
the drudgery of women, it will do little in terms
of expanding the role of women Agarbatti rollers
in the market sphere. It is here that PLOs of
Agarbatti rollers could act as linkage institutions
between the Agarbatti manufacturers and the
Agarbatti producers; Federations of Agarbatti
rollers could act as agencies which build the
fnancial literacy, business and entrepreneurial
capacities of Agarbatti rollers. Mechanization
by increasing the productivity is likely to bring
about reduction in per kg labour cost which in
turn will affect the traditional Agarbatti rollers.
Cluster level federations could also take up a
larger role in terms of negotiating and fxing up
a better return on produce.
3.7.2 People Public Private Partnership Model (PPP
The proposed three tier institutional model
would aim to build community enterprises. For
this it would establish relationships with the
other public and private players.
Role of PPP players
-This includes SHGs, PLOs, SHG
-Demand for enterprises to emerge
from the community.
-Demand for capacity building
requirements to emerge from the
-Community to come out with an
action plan for setting up Agarbatti
-Community to establish partnership
with Public and Private players.
-Community to identify locations for
setting Agarbatti enterprises.
-This includes various government
agencies such as DRDA, DIC, KVIC,MSME
-Government institutions will provide
the necessary aid required for setting
community enterprises.
-Aid could be fnancial in terms of
subsidy-cum-loans, physical in terms
of space or equipment
-This also includes livelihood promotion
institutions which could be NGOs or
any other players engaged in livelihood
-LPOs to handle capacity building
needs of CBOs.
-LPOs to facilitate marketing linkages.
-LPOs to provide business and
entrepreneurial capacities of community
enterprise members.
-LPOs to provide business development
services to CBOs.
-LPOs to take up motivation
campaigns; Information, education and
communication; facilitate participatory
planning and implementation; building
linkages with resource institutions
-This includes small / medium / large
scale private enterprises which are
involved in Agarbatti production and
-Private players would have direct
relationship with the Federations thus
eliminating the scope for involvement
of middlemen.
-Private players pass on a larger share
of the beneft tapping the potential of
3.8 Conclusion
As suggested above, promoting institutions of
the poor Agarbatti rollers, offering fnancial
services (credit and insurance), fnancial
literacy and business development services,
infrastructural services (storage spaces),
promoting engagement with markets and higher
end value addition processes can go a long way
in overcoming the diffculties faced by Agarbatti
rollers and to attain a higher returns on their
labour. Sub-sector intervention should move
beyond the objective to enhancing the income
levels to also include the need to reduce womens
drudgery, address occupational health concerns
and address the issue of child labour.
4.1 An overview of SRI Paddy cultivation in
The System of Rice Intensifcation (SRI) is a
new and evolving alternative to conventional
methods of rice cultivation. SRI was developed
in Madagascar in the early1980s by Father Henri
de Laulanie, a French priest. As Shambu Prasad,
Prajit K Basu and Andrew Hall note: SRI has
evolved over two decades, involving 15 years
of observation, experimentation and mastery in
Madagascar. It rapidly spread to 21 countries in
the next six years. Uphoff and CIIFAD started
popularizing SRI to other parts of the world
in 1997, calling it the answer to the needs of
farmers in the 21st century.
Rice cultivation is the most important agricultural
operation in the country, not only in terms of food
security but also in terms of livelihood. It plays
a major part in the diet, economy, employment,
culture and history of India. Ninety percent of
rice produced is consumed within the country.
With 44 million hectares India ranks number one
globally in paddy area and with 141.1 million
Chapter 4 - SRI Paddy subsector
tons (2007) stands next only to China in total
paddy production.
The area under rice accounts for 34 percent of
Indias food crop and 42 percent of its cereal crop
areas. There has been no net increase in the area
of rice cultivation in the last 30 years. Yet rice
contributes nearly 15 percent of Indias annual
gross domestic product (GDP) and provides
31 percent of the total calorie supply. Paddy
production has increased in India 4.5 times in
the last 57 years - from 30.9 million tons (1950)
to 141.1 million tons (2007). Enhancement in rice
production is mainly credited to a productivity-
led increase since harvested rice area for the
corresponding period has expanded from 31 m ha
to about 44 m ha accounting for only 42 percent
increase. However, productivity improvement in
rice is now increasing at a much slower rate
(deceleration) than during earlier decades.
The country needs to increase its food grain
production to 450 million tons by the year 2050
to meet its food security. Increase in paddy
production will have to come from the same area
H HimanshuThakker, http://www.sandrp.in/sri/sriintro
SRI Factsheet India, http://www.sri-india.net/documents/INDIA.pdf
or even a reduced area. This means the future
of rice production has to come by improving
yields. The System of Rice Intensifcation (SRI)
introduced in India in 2000 when the Tamil
Nadu Agricultural University (TNAU) initiated
experiments involving SRI principles provides
an option to improve yields whilst simultaneously
reducing other inputs.
The TNAUs experimental results in 2000 were
followed by an evaluation on farmers felds and
in 2003, TNAU passed SRI for adoption by rice
farmers in of the state. Andhra Pradesh was
next, when the Acharya N.G. Ranga Agricultural
University (ANGRAU) introduced SRI in farmers
felds during Kharif 2003. The Andhra Pradesh
experience generated nationwide interest and
today, SRI is gaining popularity in the rice
growing states of the country and is being
practiced in more than 150 rice-growing
districts (rice is grown in 564 districts in the
country) by hundreds of thousands of farmers
from all over the country. The results are very
encouraging. Several agricultural universities
and Indian Council of Agricultural Research
(ICAR) institutes have also taken up research
on SRI. Many organizations, governmental
and nongovernmental (NGOs), are involved in
actively promoting SRI. Indeed, NGOs are playing
a leading role in promoting SRI particularly
supporting small and marginal farmers in many
states. Since its inception in 2000, SRI has
proved itself and is today part of the National
Food Security Mission, as a method to improve
rice production.
4.2 Factsheet Rice cultivation in India
The important place rice cultivation has in
Indian agriculture sector is evident from the
table below. With 33% of the total cultivable
land in India under rice, it ranks right at the
top. Its signifcance comes from the fact that
it is both a source of livelihood for a large
number of farmers and also as an important
part of food security for the producers as well
as the country. By extension, the importance
of rice cultivation is even more in Bihar with
57% of the area under rice cultivation. However,
the point of serious concern is that despite its
central role in the states agriculture sector, the
productivity (11.20 Qtls/Ha) is almost half the
national average. It is even more dismal when
compared to states such as Punjab (40.10 Qtls/
Ha) and Haryana (30.01 Qtls/Ha).
Rice cultivation in India and Bihar
Total geographical area
(million ha)
329 9.359 0.493
Total cultivable area
(million ha)
126.92 5.55 0.171
Total paddy area
(million ha)
42.56 3.21 0.054 (2010)*
0.124 (2009)
Paddy area (%) to total
cultivable area
33.5% 57% 31% (2010)*
70% (2009)
Total paddy production
(million tons)
95.33 3.60 0.060 (2010)*
0.220 (2009)
Paddy productivity
(Quintals /ha)
22.06 11.20 11.17 (2010)*
17.69 (2009)
Source: (1) Ministry of Agriculture, GoI and Department of Agriculture,
GoB, 2010.(2) Economic Survey 2011-2012, Government of Bihar, 2012.
*The table provides fgures for Gaya for two
reporting years (2008-09 and 2009-10).
Theagriculture season of 2010 was severely
affected by climatic conditions and therefore
cannot be considered as representative of
the district. The fgures for the year 2008-09
are therefore provided for a more informed
A large number of rice cultivators have land
holding of less than an acre. With such
fragmented landholding and high levels of
poverty among this group, one of the most
cost-effective ways to improve their economic
condition is to support interventions that will
help poor farmers improve their productivity
without a corresponding increase in cultivation
costs or without requiring inputs that are beyond
the reach of these farmers. System for Rice
Intensifcation or SRI is one such tested method.
It enables rice cultivators to achieve a quantum
jump in productivity without any radical change
in the practices except additional labour. Since
the marginal cost of agriculture labour is very
low, the beneft in terms of increased production
and sale value is extremely high. As mentioned
See http://eands.dacnet.nic.in/At_A_Glance-2011/4.6(a).xls for more details.
in the introduction to this chapter, studies
conducted by universities and civil society
organizations have demonstrated the advantage
of SRI techniques quite convincingly. The state
government of Bihar has formally endorsed this
and provided services to promote it on a large
4.3 System for Rice Intensifcation or SRI
4.3.1. The concept and technology:
SRI is a collection of several evolving practices
in nursery management, time of transplanting,
water and weed management. It is a different way
of cultivating rice crop though the fundamental
practices remain more or less same like in the
conventional method; it just emphasizes altering
of certain agronomic practices of the conventional
way of rice cultivation. SRI is not a fxed package
of technical specifcations, but a system of
production with four main components, viz., soil
fertility management, planting method, weed
control and water (irrigation) management.
The innovation and adaptation of key steps in
SRI are based on the following principles that
impacts productivity:
1. Rice plant seedlings should be transplanted
very young (usually just 8-12 days old) with
just two small leaves
2. Seedlings should be transplanted carefully
and quickly to infict minimum trauma to
the roots.
3. Seedlings should be transplanted singly,
with only one per hill instead of 3-4 together
to avoid root competition.
4. Seedlings should be widely spaced to
encourage greater root and canopy growth.
5. Seedlings should be transplanted in a square
grid pattern (25x25 cm or wider in good
quality soil)
These key crop husbandry steps improve the
health of the seedlings and eventually the
production by altering the bio-physical properties
of the soil and plant-growth in the following
1. Soil is kept moist but well-drained and
aerobic, with good structure and enough
organic matter to support increased
biological activity. The quality and health of
the soil is the key to best production.
2. Only a minimum amount of water is applied
during the vegetative growth period, and
thereafter only a thin layer of water is
maintained on the feld during fowering and
grain-flling. Alternatively, to save labour
time, some farmers food and drain (dry)
their felds in 3-5 day cycles with good
results. Best water management practices
depend on soil type, labour availability and
other factors, so farmers should experiment
on how best to apply the principle of having
moist but well-drained soil while their rice
plants are growing.
3. Soil nutrient supplies should be augmented,
preferably with compost, made from any
available biomass. Better quality compost
such as with manure can give additional
yield advantages. Chemical fertilizer can be
used and gives better results than with no
nutrient amendments, but it does not enhance
soil structure and microbial communities
in the Rhizosphere as applying organic
matter accomplishes. At least initially,
nutrient amendments may not be necessary
to achieve higher yields with the other SRI
practices, but it is desirable to build up soil
fertility over time. Root exudation, greater
with SRI, enhances soil fertility.
4. Since weeds become a problem in felds
that are not kept fooded, weeding is
necessary several times, starting 10-12
days after transplanting, and if possible,
every 10-12 days until before the canopy
closes. Using a rotary hoe -- a simple,
inexpensive, mechanical push-weeder --
has the advantage of aerating the soil at the
same time that weeds are eliminated. (They
are left in the soil to decompose so their
nutrients are not lost.) Additional weedings
beyond two can increase yield more than
enough under most conditions to more than
justify the added labour costs.
4.3.2. Key components of SRI
The above fgures give a graphical presentation
of the key components of SRI practice that
operationalizes the science and concepts listed
in the earlier section.
4.3.3 SRI expansion in India
Besides the pioneering initiatives in Tamil Nadu,
the NGO PRADAN introduced SRI inthe Purulia
district of West Bengal state in 2003. Over the
years, the practice gained popularity in the state
and neighbouring states including Bihar. State
government of Bihar endorsed the idea through a
support programme call SRIVIDHI that provided
inputs and extension services to participant
farmers. There are reports of farmers improving
Media has reported a world record production of 224 quintals per hectare in Nalanda district. http://www.bihartimes.in/Newsbihar/2012/April/newsbihar16April8.html
Source: http://info.worldbank.org/etools/docs/library/245848/applying.html#
their productivity exponentially
and that the
new techniques are slowly gaining acceptance
amongst farmers who were skeptical during the
initial years of its introduction.
With a high preponderance of small land holding and
low-input agriculture practices in Bihar, including
Gaya district, the propagation of SRI approach to
rice cultivation is an appropriate choice of options
to improve income in a sustainable manner. As the
table below shows the Cost-Beneft of a transition
from traditional rice cultivation practices to SRI
technique is extremely attractive. It not only
reduces the cost of cultivation (12.45% less),
but also increases the production by a very large
margin (50.6% more).
Key components of SRI
4.3.4 Benefts of SRI
Comparative analysis of SRI
Parameter Non-SRI SRI
Difference of
SRI over Non
SRI (%)
Irrigation requirement
(Rs /Ha)
800 800 0
Input costs (Rs / Ha) 8,670 6,920 20% less
Other costs of
cultivation (Rs/Ha)
16,025 14,600 8.9 % less
Total cultivation cost
(Rs /Ha)
25,495 22,320 12.45% less
Productivity (Qtls/Ha) 37.00 55.75 50.6 % higher
Sale Value of produce
37,000 55,750 50.6 % higher
Beneft cost ratio 1.66 2.82 70% higher
Source: Field trails and studies conducted by Indian Grameen Services,
The benefts of SRI is further optimized when
the extension services are packaged with other
interventions that address some of the persistent
constraints and barriers faced by farmers in Gaya,
and more so by small and marginal farmers.
These include high cost of irrigation, spurious
seeds and fertilizers in the market, and lack of
adequate storage capacity. Therefore, by creating
physical infrastructure for augmenting irrigation
sources, storage warehouses, developing
institutional arrangement for quality inputs
supply and capacity building of PRIs or farmers
organizations to be good extension agents, the
benefts of SRI can be further improved.
4.4 Need to expand the adaptation of SRI in
With such a proven track record for increasing the
productivity and income, SRI has demonstrated
its relative strengths as a preferred choice of
intervention for small land holding farmers.
Increased focus on promoting this activity can
be further justifed by the fact that a transition
from traditional rice cultivation to SRI is
best suited for poor farmers with small land
holdings because it requires minimal addition
to their agriculture implements and virtually
no additional money for inputs. While it does
not add signifcantly to additional employment
opportunities, it alleviates the problem of under-
employment of rural population by tapping the
available labour surplus and converting it into
additional production and income. With the same
labour force, cultivators are able to secure
higher income, thereby improving the marginal
cost beneft of agriculture labour.
4.5 Recommendations for popularizing SRI
in Gaya
4.5.1 Ensuring participation of wider stakeholders
An expanded program for SRI will enlist the
participation of Revenue offcials involved in land
settlements and consolidation, Agriculture input
Suppliers, Government/NGO Extension Agents,
Credit Institution and fellow farmers extension
agents. Since the tradition of share-cropping is
very prevalent in Gaya, the relationship between
lessee and landlord needs to be made more
transparent so that the terms of lease of land is
fair and the entitlements of both parties secure
through enforceable contracts. Community
organizers can help in mediating the terms
of lease. As things stand today, government
agencies and their staff are not geared towards
providing specialized support services for SRI.
Even though the Government of Bihar has actively
advocated adoption of SRI technique and even
made budgetary provisions for a program (SRI
Vidhi), the capacity of the existing extension
staff and agricultural universities and research
stations are geared towards traditional crops
and practices.
4.5.2 Augmenting irrigation
Even though additional irrigation is not a
pre-requisite for SRI techniques in itself,
augmentation of irrigation sources will have
tremendous positive impact on the productivity.
Therefore a comprehensive SRI programme can
provide fnancial support in this regard.
4.5.3 Additional services
Additional services that can be bundled with
extension and irrigation are:
(i) crop insurance,
(ii) warehousing facility,
(iii) de-husking / de-shelling machines,
(iv) transportation facilities for collective
marketing, and
(v) tie-up with rice mills and other key players
in down-stream value-chain,
(vi) transparent marketing and reforms in
the mandate and functioning of Primary
Agriculture Cooperatives (PACS)
to ensure cost-effcient and timely input supply
and marketing services including remunerative
procurement price and timely payment so that
incidences of distress-sale of rice production
can be minimized.
The table on the next page gives a SWOL (Strength,
weakness, opportunities and Limitations)
analysis for an expanded SRI promotion program
in Gaya district.
SWOL Analysis of promotion of SRI techniques in Gaya district
Pre-production stage Production stage Processing stage Marketing stage
Strengths Favourable Agro-climate Huge area under
cultivation of paddy
Economy of scale due to
higher production
Collective bargaining due
to larger batch size.
Well established network
of agri-input suppliers
Farmer aware of latest
seed/fertilizer/ pesticide
Presence of civil society
Weaknesses Lack of Agri-extension
Higher irrigation cost Lack of adequate
storage facility.
Presence of middlemen
traders at different
High transportation cost
of agri-inputs for most
Low yield as compared
to states average and
the area of production
Lack of credit
availability to withhold
High incidence of
distress sale
Spurious seeds and
Misperceptions about
soil chemistry and
nutrient requirements.
Lack of processing
Diffculty in accessing
Opportunities Collective input
Pooled irrigation with
effective methods/
Provision of electricity
for irrigation
Huge potential of
dairy industry and
therefore growing feed
High seasonal price
4.5.4 Community-based institutional model
Though Gaya District is nationally known for SRI
Paddy cultivation, the income levels of the paddy
cultivators from this district continues to be
below potential. Despite tremendous scope for
better returns from other segments of the agri-
value chain, lack of appropriate institutional
base has restricted the gains of SRI to only
farm level-productivity enhancement. Keeping
this constraint in mind the following three-tier
institutional model is suggested:
Tier 1: Farmers Clubs (FC): The Farmers Clubs
are the foundation for the three-tier structure.
One member from each farming family will be
given membership in the FC and the women
and men are equally given opportunity to get
membership. The family will have an opportunity
to decide whether the male or female member
were to join the FC. To ensure adequate
participation and representation, the size of the
farmer club will be in kept between 10 20
members. The farmer club is expected to
Have a name. Example: Jai KisanFarmers
Open a bank account in the name of the FC
Elect two members democratically by the
general body to lead the group
Have regular monthly meetings
Encourage members to make monthly
Have internal lending activity with the
saving amount and try to leverage fnancial
support from the banks/ NGOs/other funding
agencies to prevent farmers dependency on
To provide a platform for the farming
communities to discuss issues related to
farming of paddy through SRI technique (this
can also be done by calling formal special
meetings and informal discussions).
Take the lead role in motivating its
own members to be part of the training
programmes and aggregation activities.
Tier 2: Village Level Federation: The village level
federation is the next level tier to the FC and will
be an unregistered federation. The village level
federation will be formed with representation
from FCs in the village. While members from all
the FCs form the general body of the Village Level
Federation, one leader and one member from
each FC will form the executive committee of
the federation. Further, the executive committee
will elect the offce bearers to take care of day-
to-day functions of the village level federation.
The village level federation is expected to:
be a bridge between the Farmer Club and
the apex level institution
support the FCs to emerge as self-managed
groups in terms of both fnancial and non-
fnancial activities
generate some fnancial resources from the
FC members in the form of membership fee
and share capital
Pre-production stage Production stage Processing stage Marketing stage
Opportunities Provision of crop loan
through revolving fund
for small and marginal
Better crop-rotation and
inter-cropping practices;
Use of bio-fertilizers,
bio-pesticides and
Forward linkages with
rice mills
Interim payment through
marketing loans
Provision of storage
Limitations Volatility in farm
produce prices
Degrading soil quality
with over-application
of fertilizer has already
affected yield of paddy
Cartelization of existing
processing units
Collective marketing
through rural business
hubs and producer
Policy changes effecting
input costs
Erratic power supply for
to take a lead role in facilitating supply
of farm equipment that are essential for
SRI cultivation with the support of the apex
act as a rating agency for the FCs and help
the FCs in establishing bank linkages
Tier 3: Producer Company: The next level tier
to the village level federations is the apex
organization in the form of a Producer Company
(PC). PC will be a registered organization under
companies act as a Farmer Producer Company.
The farmer producer company is expected to have
at least 3000 farmers as shareholders in the
company. The promoting agency can then decide
accordingly on how many villages need to be
brought into the fold of the producer company.
The producer company is expected to take-up
the following roles to bring better benefts to
the farming communities:
Understand the fnancial and non-fnancial
needs of the farming communities for
effective adoption of SRI
To enable farmers to have better access
to required farm equipment like ploughing
tools, weeders, markers etc.
Arrange inputs to the farming communities
through bulk procurement to reduce input
costs and ensure quality and timely use.
Aggregate farmers produce and estab lish
market linkages to realize better price for
the produce.
Deliver the services with the support of the
village level federations and FCs.
To create storage facilities at village level
and manage them effectively.
In long run, mobilize funds to take up
processing activity and establish such
processing units
To establish collaborations with different
players to leverage resources and
government schemes to establish storage
and processing units etc.
Strengths of the institutional structure: The above
mentioned institutional structure has been
proposed keeping in view the following strengths
of such a model:
Create equal opportunity for men and women
to be part of the institutional structure as
per their choice.
Savings activity is ensured at FC level
that cultivates the habit at the household
level. This will further enable the FC to
have some funds to lend to their members;
thereby preventing farmers dependency on
moneylenders and agents.
The Village Level Federation will be a
nurturing agency to the FCs and provide
required handholding support to shape
the FCs as self-managed and responsible
farmers groups.
The institutional model will provide balanced
fnancial and technical services. The FCs will
take lead role in fnancial services and the
producer company will take care of technical
support services
The structure shall enable farming
communities be a part of the next level of the
value chain i.e. production to processing and
marketing. This process will fetch additional
income to the farming communities.
By ensuring a minimum number of 3000
farmers, the scale of operations will improve
self-sustainability of the institution.
Managing many legal entities will be diffcult
task for the communities. Thus the apex
institution i.e. Producer Company will be the
only legally registered entity.
Institutional arrangement determines the success
of any livelihood project and its sustainability.
In the entire process of livelihood mapping
across three subsectors, different institutional
structures were suggested based on the
dynamics of the subsector, the opportunities
for the community to move to the next stages
of the subsector value-chain, the capacities
of the community and scope of convergences.
However, the livelihood promoting agency will
have to carefully strategize the capacity building
programme in a manner that the community
level institutions are able to eventually become
self-governed viable business organizations.
Current status of community based institution:
Except in a few instances like Women Development
Corporation (WDC), Watershed projects and
locations with NGO intervention, community
based institutions are not strong enough to carry
out their mandate. In many locations across the
district, poor and marginalized sections are
still unorganized. Therefore, there is no readily
available ground to launch either the subsector
activities in the district or directly provide
support to the SHGs or SHG federations to start
the subsector activities. After understanding the
current status of community based institutions
conditions, the following suggestions are made
for all the subsectors:
There should be a facilitating agency, which
may be a government project team or an NGO
to implement the subsector interventions.
Without such feld level support, it is highly
unlikely that the SHGs can be helped directly
to create strong self-governing higher tiers
of institutions.
To launch any subsector activity, at least
the frst six months must be dedicated
to the process of community mobilization
and to build the skeletal structure of the
institutions. This period can be effectively
utilized for familiarizing the community with
the idea of the project objectives and the
role of the community and their institutions
in implementation of the proposed project.
Chapter 5 - Assisting the Community based Institutions for Sub sector
Even after the 6 months, the community
capacity building process will continue as
per the progress of the project.
Capacity building calendars must be
developed with appropriate milestones
and performance standards to train the
community and their institutions to take
active part in the project implementation
process as demanded by the institutional
dynamics of an evolving project.
Capacity building is a structured process and
every step in this process has its own role in
impacting the projects success. Therefore, to
conduct the capacity building events for the
proposed multi-tiered institutions, a team of
professionals should be made available for
delivering the inputs.
Mere class room trainings are not enough
and the community and their institutions
need to be provided handholding support in
converting their learning into action.
The learning needs of the community and their
institutional structures are not static and
they change according to the progress of the
project. Therefore the project implementation
agency must be aware of the dynamics and
need to respond appropriately.
Farmer trainers or Farmer Facilitators
have to be developed by having a series of
Training of Trainers (ToTs). These trainers
shall be identifed by the project team based
on certain traits that are required for this
objective. These trainers will perform and
manage echo trainings wherein the project
trainers will hand-hold these trainings until
the time the farmer trainers are capacitated
to develop and manage these trainings on
their own.
The phase-over plan should be determined
carefully so as to hand over the steering
responsibilities to the community.
Accordingly, the entire capacity building
strategy needs to be designed in a manner
that it is synchronous with the tapering
support functions of the facilitating agency.
Looking at each subsector intensively through
a subsector approach made it clear that Goat-
Rearing and SRI paddy cultivation are potential
interventions for scaling up in the district and
bringing many families into this livelihood
activity. Agarbatti subsector needs to be
considered for improvising the effciency rather
than up-scaling, i.e., a bit more of innovation on
both the social and technical side frst needs to
be exercised.
Up-scaling a livelihood activity requires intensive
investments in fnancial and human resources.
Therefore having handful of success models is
important to serve as demonstration. A robust
subsector activity requires a well-planned long-
term strategy. Thus the following strategy can
be adopted for scaling up of the subsector
interventions and to bring many families into
the activity:
1. Scaling up any subsector intervention is a
mid-term to long-term initiative and the
readiness and capacity of the Livelihood
promoting agency in terms of both monetary
and human resources deployment must be
carefully evaluated.
2. Potential locations (group of villages/
panchayats/ blocks) for initiating the project
intervention need to be carefully identifed
to ensure a match between resource
endowment and project requirements
3. On identifcation of the potential locations,
they need to be shortlisted on the basis of
a. possibilities of community mobilization
and institution building
b. aggregation
c. marketing, and
d. accessibility to infrastructure
4. In the shortlisted locations the project
interventions can be initiated as per the
recommendations made for each subsector.
Further, the process of the project
implementation needs to be documented
and the diffculties faced carefully analysed.
Chapter 6 - Strategy for taking up the initiatives on a larger scale
This process can give lead to an effective
scaling up plan.
5. A rigorous monitoring and analysis of
diffculties encountered in the project
implementation process must include
parameters on community mobilization,
institution building and management, resource
mobilization, aggregation, processing, value
addition and marketing, leveraging of
government schemes, risk factors and policy
implications. Timely detection of deviation
from the designed process or an unexpected
change in the local socio-economic-political
environment must be followed by a prompt
corrective measure based on the learning
from the monitoring and learning systems.
6. Constant engagement with all contributing
players in the project will help pool collective
resources and seek consensus on solutions
to overcome diffculties. This is important
for institutionalization and internalization
(ownership of decisions) of the lessons
7. Finally Research and Development should
be made part of the process for effective
utilization of the contemporary technologies
for productivity enhancement and risk
The Agarbatti sub-sector requires interventions
that strengthen the existing operations
rather than scale them up. Since low wage
employment is the predominant issue in the
subsector, creating avenues for the women to
move to the next level of value-chain (in this
case aggregation, scenting, and marketing) is
likely to fetch better income for the women.
While the market forces are not favourable for
women to move up to the next level of value
chain, the livelihood promoting agency needs to
lobby strongly for public policy reforms so that
conditions are created that provide incentives
for higher participation of women through gender
sensitive capacity building programs.
The study team enquired into the investment
priorities of the community in case of an increase
in income. The community from three livelihood
activities namely Agarbatti rolling, SRI Paddy
and Goat-rearing were primarily from dalit,
Maha-dalit, Other Backward Classes and Muslim
households. Largely three types of investment
priorities were expressed by the community,
some commonalities and differences could be
observed in terms of the needs expressed:
Housing was the most expressed need especially
among the Maha-dalit and dalit households.
The current dwellings of the mahadalit and
dalit households are kuchha (weak, temporary)
houses. These are constructed using mud and
wheat straw. Leakages during the rainy season
are quite common. They also need to regularly
repair their walls and roof. Agarbatti rollers
expressed that this also prevents them from
drying the rolled Agarbatti during the rainy
season. The community estimated that around
Chapter 7 - Special needs of the community
Rs. 35,000 to 40,000 is the minimum investment
required to construct a house with three small
sized rooms.
Livelihood investment
Marginal and small farmers and small goat
farmers felt the need for diverting additional
income towards expanding their livelihood
activities. These households lack access to
formal credit sources for accessing credit for
investment purposes. The investment could be
towards purchase of goats, supporting subsidiary
economic activity etc.
Childrens education
Investment towards childrens education was
largely articulated by Muslim and Maha-dalit
households involved in Agarbatti rolling. One
of the aspects found in these households is
the prevalence of the practice of child labour
whereby children support the elder female
members in the rolling process. The community
felt that an enhanced income will help them to
provide their children a good education.
PashuSakhi is a semi-literate or illiterate woman
from the village who is trained and supported in
feld to disseminate appropriate goat management
practices, ensure preventative livestock health
care and undertake frst aid services to ailing
goats. Delivery of such services at doorstep, on
time at frst symptoms and within low cost in
a women friendly approach is hallmark of the
PashuSakhi system.
Selection criteria for women PashuSakhi
1. Education writing and reading (5th pass
minimum) and passes a test
2. Interest in Livestock (should have been
keeping Goats and directly involved in
3. Should have grown-up child, cooperative
husband (Involve while selection)
4. Need of getting small paltry income
5. Additional criteria Should have educated
daughter or obedient son to help in activity
- Organise a small meet to understand
aspiration, interest
- Share the business plan and roles and
- Help them to increase self-confdence
- Motivate about social (recognitions,
reputation) and economic return
- Growth plan and career growth
Training All selected female PashuSakhis
will be provided a training of not less than 5
days, members will be paid for transport and
boarding. Those not able to attend complete
training will have no right to practice and can
be accommodated in next training.
Roles and responsibilities
- Follow the calendar of practices (deworming,
- Regularly visit goat farmers to assess
cleanliness, sanitation practices like white
washing, proper ventilation, water logging,
Annexure 1
The PashuSakhi Model
drinking water quality
- Periodically assess feeding system mineral
mixture, salt, part concentrate (Grain)
- Organise training and self-evaluation
- Promote concept of community insurance,
collect premiums and documentation of
- Inform members about training at promoting
agency and external person visit
- Disease diagnosis, frst-aid treatment of
diseases and flling of format
- Attending monthly meetings at promoting
agency and submitting data in required
- Attend any training promoting agency
organizes or nominates to
- To maintain the medicine stock as per list
provided in right quantity
Payments and Incentives
Promoting agency will organize training of
selected female members and will provide a
Community Livestock Manager (CLM) for two
Process of promotion
Step -1 Area problem analysis in context of
Goats management, feeding and major diseases;
designing of training module for PashuSakhi; and
support team orientation

Step -2 Developing reporting and monitoring
formats for data and capacity building plan of
Step -3 Actual training of PashuSakhis (5 Days
Step -4 24 structured monthly meetings as
follow-up of training with one dedicated meeting
on work performance, medicine stocking and one
on further capacity building

Step -5 Refresher training of PashuSakhi
Livestock Nurse (pashuSakhi) model described here is based on The Goat Trust (www.goattrust.org) guidelines
Duration and content of each stage
Step -1: Three days feld visit, format for data
collection by team, Analysis and Report writing
Step -2: Developing the monitoring and reporting
format for PashuSakhi system (Treatment record,
Stock Register, Productivity monitoring Register,
Birth and mortality register)
Step 3: Major Training Content
Role and responsibilities of PashuSakhi
Characteristics of a healthy animal
Characteristics of a good dairy animal
Concept of body scoring of goats
Concept of health in relation to sanitation
and major sanitary practices
Difference between healthy and unhealthy
Health Indicators Normal and aberrations
- Temperature, heartbeat, respiration
Use of thermometer, practicals on
temperature recording, respiration, heart
beat counting
Concept of feeds &feeding roughage and
How to plan balanced ration
Cultivation and preservation of fodder
Housing and watering and its relation with
health : some good practices
Major communicable and non-communicable
diseases in goats
Concept of vaccines and vaccination
Diagnosis of primary diseases
List of frst-aid medicines and doses
Stick maintenance, pricing of services and
Major records and data to be kept
Step 5: Refresher Training; based on feld
assessment and trends observed to reinforce
major learning and strengthen focus on keeping
animal healthy through better feeding and
Promoting agency will provide a frst time
frst-aid kit after training free of cost (But
can be recovered if practice in feld has not
been satisfactory)
Promoting agency will provide Rs. 300 per
month for one year provided she provides
above mentioned services to the promoting
agency. For next six months it will be Rs.
150. Thereafter payment will be negotiated
on assignment basis.
Promoting agency will organize refresher
training for successful PashuSakhis after
one year.
Promoting agency will organize quarterly
review of cluster based PashuSakhis and
will provide incentives and prizes as per
performance. Incentives will be decided by a
peer and client ranking as well as appraisal
by Promoting agency staff.
The objectives of the study are: -
To Identify and prioritize key livelihood
activities in a district based on its impact
on poverty alleviation.
Understand the typical livelihood portfolio
of a poor household, with a special focus on
gender dimensions.
Understand the production, processing and
distribution system.
Understand the value additions at different
stages of the value chain.
Identify constraints and barriers at various
stages of the value chain.
Propose an alternative institutional
mechanism which can support SHG women
engaged in the economic activity.
The standard subsector methodology can include:
Preparing a preliminary sub-sector map
Refning understanding of sub-sector
Analyzing sub-sector dynamics and leverage
Choosing intervention point
Sampling Strategy
Sub-sector clusters with high prevalence of the
specifed economic activity to be chosen. Clusters
to be identifed representing diversity of socio-
economic groups, agro-climatic conditions, level
of backwardness etc. Sample will be calculated
based on the size of study subject universe
and the typologies involved. Stratifed random
sampling will be resorted to wherever possible.
Major tools to be used
The data collection tools used could be
Review of literature, records and documents
Focused Group Discussions (FGDs)
Key informant interviews
People to be interviewed
- Individuals directly engaged in the economic
- Individuals engaged in various stages of the
value chain
- Representatives of nodal governmental and
civil society organizations.
- Representatives of various interest groups/
coalitions such as producer unions,
- Elected leaders whose constituency includes
livelihood earners.
Estimated Time line
This time starts when the location (e.g. a specifc
district) is decided
Particulars Estimated
1 Secondary Literature research -
District & Subsector
1 week
2 Development of Tools of data
collection, including pre-testing
2 weeks
3 Subsector feld study
4 - Interactions with community 2 weeks
5 - Interactions with value chain
players input supplier,
manufacturers, wholesale traders,
retail traders etc.,
2 week
6 - Interaction with other stakeholders
(Government , NGO, private players)
1 week
7 Data analysis 1 week
8 Reporting 1 week
Total 10 weeks
The time allocated for these important steps
are indicative if done on a stand-alone basis.
However, in practice, many of these tasks can
be attended to simultaneously. Therefore the
above tasks that add up to 10 weeks will be
actually spread over 8 weeks.
Annexure 2
Guidelines for District-level Sub-sector Study
Notes :
Notes :
Notes :
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