The dynamics of household and regional economy of Banni grasslands in India were studied based on primary data collected from 280 households across 13 villages. Each household had one primary occupation and, on average, two secondary occupations. Pastoralism and charcoal production employed 58 and 28% of households as primary occupations, respectively, whereas leather work, services and tourism employed 4% of households each. Further, pastoralism and charcoal production employed 60 and 48% of households, respectively, as secondary occupations. Highest and lowest average annual net returns were realized from the sale of milk and milk products (₹ 414,070/HH) and honey and gum collection (₹ 2827/HH), respectively. The Banni grassland is still a traditional society predominantly based on the primary sector as it employed 88% of the households and contributed 91% to the economy. Pastoralism alone contributed 82% to the economy of the Banni region followed by charcoal production (8%) and tourism (5%), whereas all other occupations contributed <1–2% each. Contribution from secondary and tertiary sectors was very low. Pastoralism has evolved in the region, but it continues to be the dominant livelihood option. Therefore, arresting and addressing the land degradation process in Banni grasslands is of paramount importance to sustain the livelihoods and the ecology.

Pastoralism in Banni grasslands has evolved and adapted to significant ecological, geo-political, socio-economic and policy changes. This article critically examined the historical changes affecting pastoralism in Banni grasslands and identified the contemporary priorities of pastoralists concerning their livelihood. A socio-economic investigation was undertaken in Banni grasslands from 2014 to 2019 using primary, secondary and historical data. Traditionally, the pastoralists of Banni, mainly represented by the Maldhari community, have been amongst the finest cattle breeders and suppliers of the superior Kankrej bullocks for draught purposes in the region. The designation of Banni as a Protected Forest (1955) and the planting of Prosopis juliflora (1960s) by the Forest Department of Gujarat State are significant milestones in Banni after India’s independence. Pastoralists perceived that their livelihood is mainly constrained by successive and severe droughts, rapid invasion of P. juliflora, lack of access to dairy cooperatives, overgrazing and overall degradation in that order of severity. However, the community adapted to these ecological and policy changes by gradually replacing pastoralism with semi-migratory and sedentary animal husbandry/ dairy enterprise. Since the production potential of Banni grasslands has decreased, the cost of livestock rearing has increased as purchases from the market are compensating for the fodder shortage. Further, pastoralist households have diversified their livelihoods through charcoal production (20% of households), handicrafts (3%), services (2%) and tourism/ trade (2%). Still, >93% of households in Banni are engaged in pastoralism/ dairy enterprise contributing 82% to the economy of the grasslands. Granting of community rights for use, conservation and management of Banni; increasing the carrying capacity of the grasslands; management of droughts; and access to dairy cooperatives in interior parts are the contemporary priorities perceived by the pastoralists.