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Jharkhand with an area of 79.71 lakh ha and a population of 27 m is primarily a rural economy. About 75 pc population resides in rural areas and more than 80 pc of the total labor force is dependent on agriculture. The state has been categorized under agro climatic zone VII known as Eastern Plateatu Hill Region and is further divided into 3 sub zones viz. Central and North Eastern Plateau, Western Plateau and South Eastern Plateau. Average annual rainfall or these zones varies from 1304 mm to 1409 mm out of which 80% is received during four monsoon months (June-Sept). The nature of the monsoon is erratic and late arrival and early cessation is not uncommon. The assured irrigation is available to hardly 8-9 % area during kharif, 6% during rabi and 1-2 % during summer season. In the absence of perennial river system, the agriculture is largely rain dependent. 

             Agriculture economy of the state is characterized by the existence of large number of small and marginal farmers. Agriculture operation in the state is of the subsistence type due to the adverse land : man ratio. Land distribution pattern among the cultivators is highly iniquitous and a large number of holdings are uneconomic. On the whole about 83% operational holdings are below 2.0 ha, covering only 37 % of the gross area. Only 0.69 % operational holdings are above 10 ha, covering over 9% area. Majority of the farmers thus fall under the category of small and marginal farmers subsisting on a very small earning from farming occupation. They have little or no resources of their own to provide for high cost input needed to increase the agricultural productivity.