Banka has been ranked 3rd least developed district in India after Kalahandi and Raygadha (orissa). The main reason of Banka being declared a backward district could be less urban population. Banka, as a whole, is an agrerial economy. Banka is considered as RICE BOWL of Bihar. Banka has a very advanced system of Agro product marketing which is very complex yet very simple. The district has three-four major Rice Production and transaction center. The most famous are VIJAYHAT (successfully in existence for last forty years) and Rajoun. Apart from these two, there are Punsia, Katiya, etc. which is small in size (in volume). Most advanced is VIJAYHAT, which in the last 40 years of its existence has devised very strong form of functioning. it has many rice mill (small one) producing high quality USNA(Parmal) rice very popular among locals. The biggest buyers are from Bhagalpur, Kolkata, Purnia, Kanpur, Delhi, Dumka etc. Rajoun has emerged as very good competitor though all the local hat function with business ethics.
Apart from rice, Amarpur belt is famous for sugar cane and Gud mill. They produce world class gud rich in iron and minerals. THE MAIN PROBLEM FOR THESE VILLAGE INDUSTRY IS LACK OF BRANDING. All of them can be world class and have their own brand name e.g. Vijayhat Rice, Amarpur Gud like Mawana sugar or Dhampur Sugar which are location based name. But there is lack of awareness and business owner don't give heed to this side of business. they are happy doing business in crude form. These are the reason despite the very large volume their earning are less.
Timber Industry
Once very dynamic and vibrant industry were totally out of business during RJD regime. again gain momentum in recent years. There are not many saw Mill left and potential are abundant. But due to govt policy, it’s very difficult to flourish. Source of raw material is also a problem. Very much dependent
