Republic of India Livelihoods in intermediate towns


Mobility and the Non Farm Economy



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7. Mobility and the Non Farm Economy



7.1. Where Do They Come From? Interestingly, only around one-fifth (20.3%) of those who reported being involved in non-farm activities currently, appeared to have switched over from agriculture, as their previous livelihood. Upon analysis, we understand that a substantial number of them had a member of a generation prior to them from their families working in either the traditional caste based occupations (23%) or another non-farm employment (26%) or a salaried job (10.3%). The proportion of those respondents who had themselves worked as full time cultivators or in a traditional occupation for their own family before they moved to a non-farm economic activity is much smaller (12.3%). The corresponding combined figure for the same set of activities (i.e. a traditional caste based occupation and farming) for the prior generation of the respondents (father) is higher (43.3%) (see Table 17).


Table 17: Occupational Mobility across two generations

Occupation

Father (%)

Self (%)

Traditional / Caste occupation

23

7

Farming (Self owned and/or Sharecropping)

20.3

5.3

Labour

9

3.3

Migrant

3

18.7

Non-Farm

26

19.7

Regular Job (Govt/Private)

10.3

3.7

Never employed

3.7

37.7

DK / No response / NA

4.7

4.7

Total

100

100

Among the trends for a generation wise analysis of the involvement in non-farm activities, we can see significant and interesting variations across caste and communities. For instance, families of respondents from the traditionally upper castes cannot be identified with any caste specific occupation, even for a prior generation (See Table 18). Members of the traditionally upper castes in both the settlements either reported to be directly pursuing farming or were already engaged in a non-farm occupation. In contrast, a much larger proportion of OBC and SC respondents reported that a prior generation of family members was employed in traditional caste-based occupations (see Table 11). Not only did a majority of these respondents’ families not pursue agriculture a generation earlier, most of them also owned no or very small plots of agricultural land. In the current generation, as many as 68 percent of all the respondents (94% among SCs) reported owning no agricultural land and another 19 percent reported owning less than one acre of land. Only around 4 percent of the total respondents reported owning 5 or more acres of land. Thus, for a large majority of those respondents who belonged to traditionally land owning caste and community groups, their holdings have increasingly become unviable (due to fragmentation of holdings across generations).



Table 18: Father's Occupation across social categories




Upper Caste

Trading Caste

Other OBCs

SCs

Muslim

Total

Traditional / Caste occupation

0

(0.0)


8

(12.9)


31

(34.8)


19

(38.0)


11

(17.5)


69

(23.0)


Farming (Self owned + Sharecropping)

7

(19.4)


19

(30.6)


19

(21.3)


5

(10.0)


11

(17.5)


61

(20.3)


Labour

1

(2.8)


2

(3.2)


4

(4.5)


10

(20.0)


10

(15.9)


27

(9.0)


Migrant

2

(5.6)


3

(4.8)


0

(0.0)


1

(2.0)


3

(4.8)


9

(3.0)


Non-Farm

16

(44.4)


19

(30.6)


20

(22.5)


8

(16.0)


15

(23.8)


78

(26.0)


Regular Job (Govt / Private)

6

(16.7)


7

(11.3)


6

(6.7)


0

(0.0)


12

(19.0)


31

(10.3)


Never employed

1

(2.8)


3

(4.8)


4

(4.5)


3

(6.0)


0

(0.0)


11

(3.7)


DK / No response / NA

3

(8.3)


1

(1.6)


5

(5.6)


4

(8.0)


1

(1.6)


14

(4.7)


Total

36

(100.0)


62

(100.0)


89

(100.0)


50

(100.0)


63

(100.0)


300

(100.0)



Some of the respondents continue to practice farming (10.3%) along with a non-farm activity but reported farming as a secondary source of livelihood. Most of such respondents belong to the traditionally upper castes and both the OBC categories. A large majority of the respondents (74.7) work full time in their corresponding non-farm activity though some of them simultaneously engage in more than one non-farm activity (6.3%). A good proportion of the respondents (24.3%) also have another family member along with them in the (primarily) reported non-farm activity.

8. Motivations Sources of Funding and Income: From the discussion above, it is discernible that more than 60 percent of those who reported being currently engaged in a non-farm activity are first generation workers, i.e. their fathers and other members of the family from the generation prior to them were either employed in agriculture or in a traditional caste based occupation. It is therefore both interesting and worthwhile for us to understand what was it that motivated them to shift from such livelihoods to those that they are currently employed in? How did they mobilize the initial investment required for starting such enterprises? How much do they earn?
8.1: Motivations: Even though the decline of agriculture as a source of employment and of social status is quite evident, few of our respondents seemed to have consciously attributed their decision to start a non-farm activity to it. Given the average size of land holdings in the area, agriculture is perhaps no longer seen as a viable option of employment by villagers from across communities (see Table 12). As one of the respondents put it:
Agriculture is good. One can do many things with land. One can keep cattle and also do a poultry business. But only if we have enough land. We do not have much land here. We also have a serious problem with irrigation. Other inputs such as seeds, fertilizers and labour, everything is very expensive. Those who are doing agriculture are not doing well. There is no income from land. Agriculture is a lot of hassle (bahut lafda hai kheti)
Ram Yadav, an auto-rickshaw driver in Satghara, also felt similarly and argued that agriculture could be a profitable and worthwhile activity, only if the government provided facilities.
In absence of electricity and assured irrigation, which ought to be provided by the government, we will only loose our money if we were to invest in agriculture.
Among those who own larger than average tracts of cultivable land, farming is still not seen as a viable option for either current or future livelihoods. Interestingly, such respondents complained of a shortage of labour. Pankaj Kumar of the Suri caste in Satghara, had this to say to us -
We have land and we used to cultivate it on our own. But with people going out for work, it is hard to find labour. We do not have a large proportion of SCs here. If they were around, farming would have been easier. It is better to give it on sharecropping.
Agriculture is also seen as a stagnating work, with no future for progress. Sachin Kumar Thakur, a twenty-year old man returned to his village after working as an assistant in a dental accessories making unit in Amritsar for a few years. His two brothers are still in Delhi and Mumbai respectively. Even though they own a small plot of land, Sachin chose to work with his father as a barber. He expressed his opinion on agriculture clearly and sharply:
The world is progressing very fast. How long can we keep sitting with a shovel in our hand? Working in the shop is far more profitable than working on land. This work is also easier. Who would want to plough land?
Most of the respondents reported starting a non-farm activity because it made sense to them as a possible source of employment. Many of them did so either because it was their family business (nearly 30 percent) or they had been exposed to it during their work outside the village (nearly 15 percent) and many others reported assessing that they simply had no other options for employment (12.3 %) or that there was a local need for the business they initiated (28.7%) (see Table 19). Interestingly, we observe very similar patterns of aspirations across communities.



Table 19: Caste Category and Motivation for Starting Current Activity

 

Castes

Total

Upper Castes

Trading Castes

Other OBCs

SCs

Muslim

Previous knowledge due to migration/

as apprentice



6

(16.7)


12

(19.4)


10

(11.2)


4

(8.0)


12

(19.0)


44

(14.7)


Family Business/ inheritance

10

(27.8)


19

(30.6)


32

(36.0)


18

(36.0)


10

(15.9)


89

(29.7)


Peer Influence

2

(5.6)


3

(4.8)


3

(3.4)


2

(4.0)


4

(6.3)


14

(4.7)


Lack of employment opportunities

3

(8.3)


4

(6.5)


13

(14.6)


8

(16.0)


9

(14.3)


37

(12.3)


Low Capital Required

0

(0.0)


0

(0.0)


0

(0.0)


1

(2.0)


0

(0.0)


1

(0.3)


Disenchantment with Agriculture

0

(0.0)


0

(0.0)


0

(0.0)


0

(0.0)


1

(1.6)


1

(0.3)


Inspired by local needs

13

(36.1)


21

(33.9)


27

(30.3)


3

(6.0)


22

(34.9)


86

(28.7)


DK / No Resp / NA

2

(5.6)


3

(4.8)


4

(4.5)


14

(28.0)


5

(7.9)


28

(9.3)


Total 

36

(100.0)


62

(100.0)


89

(100.0)


50

(100.0)


63

(100.0)


300

(100.0)

An overwhelming majority (73 per cent) of migrant workers are in the age group of 15-35 years. Deshkingar et. al. (2006) in their study of migration from Bihar also state that ‘young people are now consciously opting to migrate to explore other areas and in the case of lower castes to break away from caste oppression in the village’. Migration is hence also a strategic decision in case of the young and the vulnerable groups who chose to move out of the rural agricultural economy.
8.2. Investments and Sources of Funding: As we have discussed in a prior section on mapping the range of non-farm activities in both the settlements, the range of such activities is fairly wide and diverse. However, a large majority of these were self-owned enterprises (nearly 80%), which require an initial investment. Given the diversity of caste/class/community in rural Bihar and the nature of the non-farm activity itself, the volume and source of investments associated with it vary considerably (see Table 20 and 21).


Table 20: Amount Invested at the time of establishment

 Amount

Caste

Total

Upper Caste

Trading Caste

Other OBCs

SCs

Muslims




None or up to Rs 5000

6

(16.7)


13

(21.0)


24

(27.0)


16

(32.0)


9

(14.3)


68

(22.7)


5001 to 20000

8

(22.2)


17

(27.4)


19

(21.3)


5

(10.0)


17

(27.0)


66

(22.0)


20001 to 50000

6

(16.7)


16

(25.8)


10

(11.2)


2

(4.0)


14

(22.2)


48

(16.0)


50001 to 100000

7

(19.4)


7

(11.3)


9

(10.1)


3

(6.0)


11

(17.5)


37

(12.3)


100001 to 200000

3

(8.3)


3

(4.8)


5

(5.6)


4

(8.0)


4

(6.3)


19

(6.3)


200001 to 500000

1

(2.8)


2

(3.2)


3

(3.4)


0

(0.0)


0

(0.0)


6

(2.0)


Above 5 lakh

0

(0.0)


1

(1.6)


0

(0.0)


0

(0.0)


0

(0.0)


1

(0.3)


Inheritance / Family Activity

2

(5.6)


1

(1.6)


1

(1.1)


0

(0.0)


1

(1.6)


5

(1.7)


Not Applicable

3

(8.3)


2

(3.2)


18

(20.2)


20

(40.0)


7

(11.1)


50

(16.7)


Total

36

(100.0)


62

(100.0)


89

(100.0)


50

(100.0)


63

(100.0)


300

(100.0)

As we can see from Table 20, a significant share of the SC and EBC respondents were in activities that did not require any investment, which also implies that they tended to work for others. Even in cases where we can ascertain that they set-up their own enterprise, the corresponding investments for SC, EBC and Muslim respondents were relatively meager. For instance, we do not find any SC or Muslim respondent among those who reported investing more than 2,00,000 rupees.
Sources of investment also varied across social groups but not to the same extent as the volume of investment. Personal and family savings coupled with loans from local moneylenders constituted the source of investment for more than half of the respondents in both Bhagwatipur and Satghara. One of the more noteworthy features here is that of the negligible significance of remittances as a source of investment in either of the settlements. Whereas it is the case that money saved as a migrant worker constitutes a share of the personal savings of the respondent, it is certainly not the case that money sent by a migrant worker outside the settlement while he continues to work there, can contribute towards the establishment and operation of a non-farm activity of his kin in the settlement. Remittance, in the classic sense, therefore does not have a trigger effect on investment, and as we shall understand in the course of our analysis, it may do so only in the case of consumption and agricultural production. According to Rodger and Rodger (2011: 46) in their recent study of two villages in Bihar, ‘most respondents indicated that the primary use of remittances was for food, clothing, health and house repairs – i. e., meeting basic needs – and education’. Also, punji (capital), and the lack thereof continues to be a major reason why a high set of the respondents believe that they don’t see a profitable future for their activity.


Table 21: Caste and Source of Funding for NFE

 Sources

Caste

Total

Upper Caste

Trading Caste

Other OBCs

SCs

Muslim




Personal/

Parents’ Savings



14

(38.9)


26

(41.9)


34

(38.2)


9

(18.0)


22

(34.9)


105

(35.0)


Friends and families

2

(5.6)


9

(14.5)


6

(6.7)


3

(6.0)


3

(4.8)


23

(7.7)


Local moneylenders

6

(16.7)


11

(17.7)


21

(23.6)


10

(20.0)


17

(27.0)


65

(21.7)


Institutional Loan (banks)

8

(22.2)


10

(16.1)


6

(6.7)


7

(14.0)


9

(14.3)


40

(13.3)


Sale of land

0

(0.0)


3

(4.8)


2

(2.2)


0

(0.0)


3

(4.8)


8

(2.7)


Remittances

1

(2.8)


0

(0.0)


0

(0.0)


0

(0.0)


0

(0.0)


1

(0.3)


Inheritance

2

(5.6)


1

(1.6)


7

(7.9)


1

(2.0)


1

(1.6)


12

(4.0)


DK / Not Applicable

3

(8.3)


2

(3.2)


13

(14.6)


20

(40.0)


8

(12.7)


46

(15.3)


Total

36

(100.0)


62

(100.0)


89

(100.0)


50

(100.0)


63

(100.0)


300

(100.0)





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