Scope and importance of digitalization for agricultural sustainability and profitability in Bihar

Abstract

Our country aspires to become an advanced economy by 2047 under the vision of Viksit Bharat. Achieving this goal requires the development of technologies across all economic sectors, with a particular focus on agriculture. In India, and especially in Bihar, agriculture remains the primary livelihood for a significant portion of the population—over 47% nationwide and 85% in Bihar. Therefore, increasing farmers' income is crucial for achieving these developmental goals. However, several challenges hinder the growth of farmers' income, including the continuous decline in per capita land availability, inefficient use of agricultural inputs, and the low share of farmers in consumer expenditure. Given these challenges, the present study aims to analyze the state of agriculture in Bihar in the era of digitalization. The study utilizes secondary data from 2000-01 to 2022 to assess various agricultural parameters. Bihar is divided into four agro-climatic zones, each characterized by distinct agricultural practices and challenges. Over the past two decades, marginal landholdings have increased by 8.61%, primarily due to the reduction of medium and large-sized farms. During the same period, annual rainfall varied between 826.94 mm and 1297.73 mm. Despite advancements, there have been no significant changes in cropping patterns, with food grains still occupying over 90% of the Gross Cropped Area (GCA). A significant increase in food grain production was recorded, rising from 122 lakh tonnes to 185 lakh tonnes, mainly driven by increased cereal production—except for Ragi. However, the production of pulses such as Arhar, Moong, and Gram remains unimpressive. Although Bihar produces a variety of horticultural crops, farmers continue to struggle with low remunerative prices. During the study period, rural road networks expanded significantly, from 836 km to 120,503 km. additionally, the Minimum Support Prices (MSP) for notified crops increased more than fourfold, and various agricultural roadmaps implemented by the state government have positively impacted production. While many states in India have successfully integrated digitalization in agricultural marketing—especially for horticultural crops—Bihar lags behind, with limited adoption of digital marketing systems. This slow digital transformation is a major factor contributing to farmers' low income, as traditional marketing channels continue to be dominated by middlemen. The repeal of the Agriculture Produce Marketing Committee (APMC) act, in 2006 and creation of Information Technology and adoption by the various state government departments since the year 2007 in the state a prospect was arises for the producers to switch over other alternative of marketing like e- marketing, e- commerce, e- trade, etc. and so many farmers producers companies started to adopt e- commerce model platform in the state and boosting profit and sustainability.