Rural Economy

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Topic: Whether Agriculture Satisfy Rural Economy Or Not? A Case Study of Nimpara Union, Charghat, Rajshahi.

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Authors 1. Faria Afrin Zinia Undergraduate student (L-3.T-II) of Department of Urban & Regional Planning, Rajshahi University of Engineering & Technology, Rajshahi-6204, Email: [email protected]

2. Md. Sadrul Anam Undergraduate student (L-3.T-II) of Department of Urban & Regional Planning, Rajshahi University of Engineering & Technology, Rajshahi-6204, Email: [email protected]

3. A. K. M. Sadat Hossain Undergraduate student (L-3.T-II) of Department of Urban & Regional Planning, Rajshahi University of Engineering & Technology, Rajshahi-6204, Email: [email protected]

Corresponding Author A. K. M. Sadat Hossain Mailing Address: Holding no: 342/01, Belderpara, Sultanabad, Ghoramara, Boalia, Rajshahi-6100 Email: [email protected] Mobile no: +8801736456855

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Topic: Whether Agriculture Satisfy Rural Economy Or Not? A Case Study of Nimpara Union, Charghat, Rajshahi

Abstract Bangladesh is predominantly an agricultural country and this agricultural sector plays a pivotal role in accelerating the economic growth. But this sector is beset with many problems which causes low rate of return, seasonal unemployment etc. Because of low economic return many farmers and agricultural labors have bound to shift in other occupation and/or migrate to another region. This paper is an initiative to find out whether agriculture is supporting rural economy satisfactorily or not. The whole research is based on primary and secondary data. Participatory Rural Appraisal (PRA) has been used as a tool in primary data collection. The primary data has found that, agriculture is creating seasonal unemployed which induce migration. Whereas secondary data analysis has concluded that owing to lower wage and economic benefit manpower involvement is reducing in this sector day by day. Keywords: Agricultural labor, migration, rural economy.

1. Introduction Farming is the most primitive and common occupation in Bangladesh. Most of the rural people of Bangladesh are involved in farming. Agriculture constitutes the single largest share in GDP. Its sub-sector, crop production dominates the agriculture sector contributing about 72% (fisheries, livestock and forestry are 10.33%, 0.11% and 7.33% respectively ) of total production (Agriculture, 2006 ). Though the agricultural sector is being developed day by day, but still agriculture has some present and future challenges and problems. Major challenges include over Population,

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lowering ground water level in dry season, seasonal unemployment, loosing fertility and excessive land use, excessive use of fertilizer and pesticides etc (Shaon, 2007). Whereas the major problems are financial problem, natural disaster, non use of new inventions, mono-crop production, inaccessibility to weather report, higher input cost of production, transportation problem, lack of coordination between government and private stakeholders (Shaon, 2007). Owing to these problems and challenges economic contribution of agriculture on rural economy has been lessened. Rajshahi is one of the metropolitan city which is located northern part of Bangladesh. Owing to rapid growth of population, decreasing trend in availability of cultivable land, and changes in socio-economic patterns, some substantial changes have taken place in agriculture sector over the past few decades in this region. This research is an attempt to find out the economic contribution of agriculture on rural economy in Rajshahi.

2. Literature Review The economy of Bangladesh is developing day by day from its impendence. But yet the economy is unable to extract the full potential of its land resources due to lack of appropriate human capital and technology adoption. About 47 million people are still below the national Poverty line (Helal & Hossain, 2013). Average unemployment rate from 2000 to 2010 was 4.6 (BBS, 2011). Bangladesh has an agrarian economy. About 65 percent of labor force in Bangladesh is engaged in agriculture which contributes about one forth percent of nation’s gross domestic product (GDP). The projected annual rice production is estimated to be 26.53 million tons, while fish production is 2.32 million tons . In 2009-2010, agriculture accounted for 23.5% of the country’s GDP. Average share of agriculture total GDP is 26.13% in Bangladesh since 1980 with a highest 32.77% in 1985 and a minimum of 18.29% in 2011 so agriculture is the

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lifeline of Bangladesh economy. For that reason the development of growing economy depends largely on the development of agriculture (Bishwajit, Barmon, & Ghosh, 2014). Furthermore, about 70 percent poor people live in rural areas and directly or indirectly involved in agricultural sector. Therefore poverty alleviation from Bangladesh requires reducing poverty among farmers in the rural areas (Raihan, 2012). The main agricultural sub-sector is crop production and it yield about 14 per cent of the country’s GDP. Rice is staple food of Bangladesh hence, the major agricultural product. It provides livelihood for 13 million farm households in the country. Bangladesh is the fourth largest rice producing country in the world (source: IRRI). It’s also the fourth biggest riceconsuming country. Because of huge domestic consumption, there is rice deficit in the country, in fact, a net rice-importing country (Raihan, 2012). The general agricultural sectors in Bangladesh are cotton, sugarcane, flower, sericulture, horticulture, fisheries, vegetables, livestock, seed development and distribution (Raihan, 2012). Since agriculture is seasonal in nature, it creates seasonal unemployment. Seasonal unemployment occurs at certain seasons of the year. It is a widespread phenomenon of villages basically associated with agriculture. Since agricultural work depends on Nature, therefore, in a certain period of the year there is heavy work, while in another there is lean. It is estimated that the farmers growing only one crop in year are unemployed for 5-7 months a year. One of the major consequences of seasonal unemployment is migration. Internal migration most often occurs when there is inadequacy or absence of suitable employment or livelihood opportunities in the local areas. People migrate to another region a viable with expectations

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of higher wages, better employment alternatives and factors which maximize family employment in the destination areas (Khandker, Khalily, & Samad, 2012). Seasonal migration can be considered as a strategy to minimize seasonal hardships such as the lack of food or income during certain months of the year when local markets do not offer income earning opportunities. A study from Vietnam shows that, among other factors, social network influence a lot in deciding in migration (Khandker et al., 2012). In northwestern Bangladesh 5 million extreme poor people living below the poverty line have to cope with a regular pre-harvest seasonal famine. It is locally known as Monga. This is widespread lean or “hungry” seasons experienced throughout South Asia and Sub-Saharan Africa, in which households are forced into extreme poverty for part of the year. The proximate causes of the famine season are easily understood—work opportunities are scarce between planting and harvest in agrarian areas, and grain prices increases during this period (Bryan, Chowdhury, & Mobarak, 2014). Migration has recently increased significantly. Nearly two-thirds of emigration from is rural to urban areas. The major problems that migrants are faced are- lack of low cost housing, physical insecurity, skewed distribution of the delivery of basic utility services and subsequent health problems. About 53% of poor migrants live in private slums and 44% squat on public land. Average per capita space is 2.7 square meter. The water and sanitation services are worst in migrant’s squatter, which determine health and environmental safety. One water tap is shared by 5-6 families and a female slum resident must travel an average distance of 69 m daily, which affect her health and productivity. About 90% of the slum dwellers use hanging or non-sanitary toilets in Dhaka city. In case dwellers and female worker in a garment factory morbidity rate is estimated at 52% and 42% respectively.

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Problems of accommodation, sickness and disease, robbery and physical harassment loom large for migrants at destination (Afsar, 2003). Internal migration also adversely affects the rural life. It is estimated that the proportion of agricultural workers was halved between 1987 and 2000, because greater employment opportunities generated in the rural non-farm sector. Income from agriculture reduced from 59% to 44% (Afsar, 2003). Internal migration also creates intra-village inequality because more affluent villages and villagers learn first, and are able to avail new job opportunities while the extreme poor groups are generally excluded from such opportunities (Afsar, 2003).

3. Objectives and Methodology of the Study The main objective of this paper is to make an overview of agricultural contribution on rural economy in Bangladesh. It tries to analyze weather this sector’s fulfill the basic need of rural economy and what are the consequences of inadequate support of this sector on overall socioeconomic condition of any region. The research is mainly based on conceptual ideas, secondary information and empirical field observation. Field observation has been done with PRA (Participatory Rural Appraisal) including key informants and group discussion. The secondary information is collected from BBS and a survey of literature and relevant Internet based websites.

3.1. Study Area Profile Nimpara is one of the six unions of Charghat upazila, Rajshahi. It has 3 wards consisting of 28 villages. The total area of Nimpara union is 9,136 acres. Number of total house hold is 9,136 and average size of household is 4. The union has the population of 35,768 and the population density is 967 people per sq.km. (BBS, 2011)

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Nimpara union is mainly agriculture based region. Farmers of this area grow various types of crops. Such as- paddy, sugarcane, wheat, vegetables, jute, pulses, potato etc. Among them paddy, wheat and potato are the major ones. Various fruits like mango, banana, jackfruit, guava, coconut etc. are also grown in the union. Farmers mainly grow crops two times in a year in their fields. One is March-April and another one is November-December. The economic condition of this union is not satisfactory. Farmers don’t receive enough wages from the agricultural sectors to maintain their family and daily lives. They don’t receive any subsidy from the government and help from the NGOs. Many farmers change their agricultural sector and move to non agricultural sectors and sometimes become migrants. This is a remote area and the transportation system is not also developed.

3.2. Limitations Because of time limitation, the field survey could not be done in a large scale. The field survey was conducted in a remote village named Vatpara and its surroundings. Owing to lack of manpower it was quite tough to cover the large portion of the area as well as respondents.

4. Data Analysis and Discussion

4.1. Analysis of Occupation Bangladesh is a country of agriculture. 63% of the labor force of Bangladesh is involved in agricultural sector. From Figure-1 it is seen that about 88% labor force of Nimpara union was involved in agricultural sector. The data is collected from BBS 2011.

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3%

9%

Agriculture Industry Service

88%

Source: BBS, 2011

Figure-1: Field of activity in Nimpara union

But from the field survey 2015 (Figure-2) it is seen that 62% people of Nimpara union is involved in agricultural sector. The data varies from the BBS statement. So it is clear that the involvement in agriculture has decreased than before.

38% Agriculture Other 62%

Source: Field survey, 2015

Figure-2: Occupation percentage of Nimpara union

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4.2. Daily Income Per capita income known as income per person is the mean income of the people in an economic unit such as a country or city. According to BBS, per capita income of Bangladesh is $1,190 in 2015. That means daily average income is 260.27 taka (1 USD=77.83 Taka). According to Figure-3 the minimum monthly income is 3,000 taka and maximum monthly income is 43,000 taka in Nimpara union. Most of the participant family’s yearly income is 8,000-13,000 taka, in daily consideration it is 22-36 taka. It is not enough in terms of today’s expenses to maintain their basic needs. So, present per capita income for the peoples of Nimpara union is less than the country’s overall per capita income. Thus it is clear that the

Percentage of income

economic condition of Nimpara union is worse and people cannot enjoy the basic needs.

60 50 40 30 20 10

Percentage

0

Income range (tk) Source: Field survey, 2015

Figure-3: Yearly income in taka

According to BBS 2011 shown in the Figure-4, daily average wage of male agricultural labor in Charghat upazila is 200 taka. Where female receive 150 taka and child less than 15 years receive 120 taka. No Union basis secondary data has been found.

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Average daily wage (tk)

450 400 350 300 250 200 150 100 50 0

Agricultural labor

Garde Electri Plumb Garde Child( Color Porter Other Other n Femal Maso Carpe c er n Male Under Helper mistre (coole femal labor labor mistre mistre male e n nter 15 yr) e e) e (adult) (child) e e labor labor 200

150

Consrtuction labor

120 300

200

300

300

Non agricultural labor

400

300 400

200

150

200

150

Source: BBS 2011

Figure-4: Wage rate of different labor class people of Nimpara union

Here average daily wage rate of construction labor in Charghat upazila shows that an electric mistree get highest daily wage of 400 taka on average. Plumber mistree, color mistree, carpenter, mason also get a higher daily wage compared to an agricultural labor on average. Again in the chart it is shown that sometimes a non agricultural labor (porter) get higher daily wage than an agricultural labor on average. Thus an agricultural labor easily induces to shift his/her agricultural sector to construction or non agricultural sector as he gets higher return from the other sectors than the agricultural sector.

4.3. Month of Unemployment The following figure shows the month of unemployment in Nimpara union obtained from field survey-

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120

Response at %

100 80 60 40 20 0 Rainy season

Summer season Season

Source: Field survey, 2015

Figure-5: Season of unemployment

Figure-5 shows that people remain unemployed mostly in the rainy or monsoon season. More than 95% respondent has said that rainy season (Ashar, Srabonand, Vaddra) is the season of unemployment. There are few reasons behind thisa) Most of the people are involved in agriculture related works. During the rainy season the crop lands go under water and people cannot grow any crops in their fields. Thus they become unemployed. But the BBS data shows that there was no flood occurrence in the year of 2009, 2010 and 2011 in the Upazilla. So the reason behind flooding the crop lands is massive water logging. The ground level of Nimpara union is lower than the surrounding area. So most of the crop lands go under the water because of water logging and people become unemployed in the rainy season. b) Because of water logging the village roads also go under water and the labor class (rickshaw puller, van puller etc) people become workless.

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4.4. Migration

90.0 80.0

Percentage

70.0 60.0 50.0

77.8

40.0 30.0 20.0 10.0

22.2

0.0 Yes

No Response

Source: Field survey, 2015

Figure-6: Figure Migration rate of Nimpara union

In Nimpara union majority of the people are involved in agriculture. In different seasons of the year, mainly in the rainy season most of the agricultural labor goes to another region for the betterment of their economic condition. From the figure-6 we can see that near about 80% percent agricultural laborer are migrated to the other region. They work in different sectors as like brick factory, garments factory, mason work and different types of business. In this region there is no well developed factory or industry to consume local manpower, manpower so many of the people are migrated to other region and sometimes they shift their agricultural sector. Thus our agricultural economy of the region goes down.

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The following map (Figure-7) prepared by a key informant named Md. Zafor Ali shows that the areas of Baladiyar, Vatpara, Jhaubona and Kaluhati have greater migrant people than the other regions. The map also shows that the previously mentioned areas also contain greater number of agricultural labor class peoples. So according to this map, it is clear that the regions which have greater agricultural labor class people also have a greater migration rate.

Source: Zafor Ali, key informant, Field survey, 2015

Figure-7: Migration map of Nimpara union

Thus majority of the migrants are agricultural labor. These migrant people shift agricultural sector and their region because there is very small opportunity to flourish their economic condition by remaining in agricultural sector. Again the wage rate is very low in the perspective of today’s expenses.

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Table-1: Seasonal Diagram Month Parameters

Baishakh

Jaistha

Ashar

Shrabon

Litchi, Corn, Mango

Litchi, Corn Mango

Jute

Jute

Vadro

Ashin

-

-

Karthik Ograhayon

Poush

Magh

Falgun

Chaitra

Mustard

Pulse

White, Onion.

Income

Production

Paddy

Disturbance of climate

Migration

Source: Field survey, 2015

Paddy

-

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In the Table-1 we see that, firstly the per capita income is quite well in the month of Baishakh, Jaistha, Falgun and Chaitra. But in the month of Ashar, Shrabon, and Vadro people have no work in this region. Secondly, the production rate of crops is very good in the month of Baishakh, Jaistha and Chaitra. Thirdly, the natural calamities often occurs massively in the month of Baishakh Ashar and Shrabon. So finally we got that the migration rate is increased in the month of Ashar, Shrabon, and Vadro because of the above three factors. People cannot afford their daily necessities in those months so that they shift to another region for the betterment of their socioeconomic condition.

4.5. Group Discussion Group discussion is a tool of PRA method and it was applied in the field survey, 2015. The group discussion on economic satisfaction with agriculture and its recent consequences was held in Vatpara village of Nimpara union. People of different ages and classes from surrounding villages were present, who were predominantly farmers. In the discussion they expressed that they were dissatisfied with the yield of agriculture as the rate of return in this sector was very low. The amount of benefit after deducting production cost and labor cost was not remarkable. The farmer said that they could not grow enough crops as they were illiterate on the use of fertilizer and pesticide. They also informed that they didn’t get any subsidy from government and were unable to access any bank loan. Again Owing to water logging and seasonal nature of agriculture they don’t have any work for several month of the year. Because of this seasonal unemployment many labor and farmer are forced to migrate in another region by shifting occupation.

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4.5. Key Informant’s Peroration For this project, three key informants had been chosen. They are- Md. Nahid Parvej, an educated youth; Mrs. Nahida Khatun, a primary school teacher & Md. Zafor Ali, an old villager. According to a young educated key informant named Md. Nahid Parvej, “Most of the farmers our union are illiterate on scientific knowledge of agriculture so the crop yield is unsatisfactory again in rainy season farmers and labor do not have any work. So they migrate in Rajhahi and Dhaka city”. In the word of Md. Zafor Ali is an old and wise villager, “Generally labor class people migrate in cities to earn livelihood as they the income in village is very low. If these people can earn 300/day, they won’t go outside of the union. So if they can be employed within the union by establishing agro-based industry, it will be helpful for our local economy.” Mrs. Nahida Khatun a primary school teacher added in his(Md. Zafor Ali) speech as,”Mango orchard is increasing as it is more profitable than cultivating other crops. But there is no processing factory or cold storage to preserve them; so I prefer establishing cold storage and juice factory in our locality”.

4.6. Findings Analysis of primary and secondary data concludes that, Owing to lowest wage rate in agricultural sector population involvement has reduced. Moreover in rainy season (Ashar, Srabonand, Vadro) crop lands and roads go under water due to massive water logging .So a large number of farmer and day labor become seasonally unemployed. This unemployment acts as a

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push factor of migrating people in other regions especially in large cities like Rajshahi, Dhaka etc.

5. Conclusion From the research it is clear that, rural economy is not satisfactorily contributed by agriculture. The prime reasons behind that are unscientific way of cultivation and seasonal nature of agriculture. Owing to this problem, the ultimate result is intra-urban migration which creates extra burden on large cities. With the passage of time population will increase and if any initiative is not taken now, the problem is likely to increase. So focus should be given on establishing agro based industry like rice mill, jute mill, juice factory etc. However juice factory may be most preferable because mango grows plenty in Rajshahi region and there is no industry like that. Cottage industry should also be provided to involve women folk in income generating works.

References Afsar, R. (2003). Internal Migration and The Development Nexus: The Case of Bangladesh. Paper presented at the Regional Conference on Migration, Development and Pro-Poor Policy Choices in Asia, Dhaka, Bangladesh Agriculture, M. o. ( 2006 ). Transformation of Agriculture for Sustainable Development and Poverty Alleviation in Bangladesh: Actionable Policies and Programs (Vol. 3,4, pp. 115). BBS. (2011). Report on Labour Force Survey 2010. In R. Ibrahim (Ed.), (pp. 1-251). Dhaka.

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Bishwajit, G., Barmon, R., & Ghosh, S. (2014). Reviewing The Status of Agricultural Production in Bangladesh from A Food Security Perspective. Russian Journal of Agricultural and Socio-Economic Sciences, 1(25),19, 20. Bryan, G., Chowdhury, S., & Mobarak, H. M. (2014). Underinvestment in A Profitable Technology: The Case of Seasonal Migration in Bangladesh. Journal of Econometric Society Econometrica, Vol. 82, No. 5 (September, 2014),1671–1748, 1-2. Helal, M., & Hossain, M. A. (2013). Four Decades Of Economic Development Of Bangladesh: An Assessment. Journal of the Asiatic Society of Bangladesh(Hum.), 58(2), 2013, pp. 335-362, 353-361. Khandker, S. R., Khalily, M. A. B., & Samad, H. ( 2012). Seasonal Migration and Mitigating Income Seasonality in Northwest Bangladesh (pp. 4-6). Raihan, S. (2012). Economic Reforms and Agriculture in Bangladesh Assessment of Impacts using Economy-wide Simulation Models (pp. 1-2,16). Shaon, B. (2007). Challenges in Agricultural Sector in Bangladesh (pp. 1-14).