CHAPTER 2
INDIAN ECONOMY 1950-90
(PART - 3)
AGRICULTURE
FEATURES, PROBLEMS AND POLICIES
During the colonial rule, there was neither growth nor equity
in agriculture sector. The policy makers of independent India had to address
these issues which they did through land reforms and promote the use of High
Yielding Varieties of Seeds which ushered revolution in Indian agriculture.
1. Importance of Agriculture in Indian Economy –
1. Main source of employment – Over fifty percent of working population in India engaged in
agricultural sector. Implying that agriculture is the principal source of subsistence
for the people in India.
2. Contribution in National Income – Highest contribution of agriculture sector was at the
time of planning started. Contribution of agriculture was raging between 51% in
1950-51 to 17.4% in 2016-17.
3. Base of Industrialisation – As a supplier of raw material (cotton for textiles
industries, Oil seeds for oil industries and sugarcane for sugar industries),
agriculture sector is of primary significance for the growth of the industrial
sector in the economy.
4. Supply of food grains – Wage goods are necessity of life such as wheat, rice,
pulses, maize, bajra, oil seeds etc. Agriculture sector provides wage goods to
all its countrymen.
5. Importance in Foreign Trade – India exports many agricultural products like tea, jute,
cashew nuts, tobacco, coffee and spices.
6. Dependence on trade and transport – Agricultural sector supports to transport industries
as both railways and roadways are the bulk carrier of farm products.
7. Wealth of Nation – In terms of fixed assets, land occupies the highest rank in India.
8. Contribution to Domestic Trade – India has a
huge expenditure on the farm product needed by billions of people.
9. Capital formation,
10. Rainbow of revolution.
11. Contribution in revenue,
12. Base of economic development - ,
2. Characteristics of Indian Agriculture –
1. Disguised and seasonal unemployment – Disguised employment refers to a
situation of hidden unemployment. It is a distinct characterized of the Indian
agriculture.
2. Excess dependence of agriculture on Monsoon – Indian agriculture is heavily
dependent on rainfall. Good rainfall means good crop and vice-versa.
3. Small size of land holdings – Due to small size of holding, mechanism of farming becomes
difficult and marginal farmers continue to view farming as a source of
subsistence rather than an enterprise for profit.
4. Low level of productivity – Productivity refers output per hectare of land. It was
extremely low as compared to other neighboring countries.
|
Crop
|
Country
|
Productivity
(tones of output per hectare of land)
|
|
Rice
|
India
China
Vietnam
World
Average
|
3.6
6.8
5.8
4.5
|
|
Wheat
|
India
China
Vietnam
World
Average
|
3.1
6.5
9.0
3.3
|
|
Maize
|
India
China
Vietnam
World
Average
|
2.6
5.8
10.7
5.6
|
5. Old and defective agricultural production – Modern inputs like chemical
fertilizers, insecticides and pesticides are not judiciously used. It leads to
low productivity and therefore, backwardness.
6. Main source of livelihood.
7. Labour intensive agriculture.
8. Pre-dominance of food crops.
9. Backward technology.
3. Land Reforms - Land reforms, primarily, refer to change in the ownership of
holdings. It was done with the purpose of increasing agricultural production,
the direct intervention of government in agrarian structure.
3.1 Need for Land Reforms –
1. Retrograde agrarian structure and agrarian relation; and
2. Small and fragmented agricultural holdings.
3.2 Land Reform Measures –
1. Abolition of Intermediaries – Intermediaries, popularly known as Zamindars have been
abolished. Ownership rights have been referred to the actual tillers. This has
been done with a view to stopping exploitation by the zamindars.
2. Regulation of rent – Now rents have been fixed by the government which is not
generally exceeds to 1/3 of the crop value.
3. Cooperative Farming – This was encouraged to enhance to bargaining power of small
farmers. Together they can by inputs at lower rates and can sell their products
at a high price.
4. Tenancy Reforms.
However, the goal of
equity was not fully served by abolition of zamindars because of the following
reasons –
* In some areas former
zamindars continued to have large land holdings.
* In some cases tenants were
evicted and zamindars claim to be self cultivators.
* Even after getting the ownership
of land, the poorest of the agricultural labourers did not benefit from land
reforms.
RE-ORGANISATION OF AGRICULTURE-
3.3 Land Ceiling - It was the policy which recommended the fixation of maximum
size of land which would be owned by an individual. The purpose of land ceiling
laws has been to take away land in excess of prescribed ceilings from the
landlords and distribute it among landless labourers. Thus, the concentration
of land ownership in a few hands can be reduced.
However, the progress was
very slow and highly unsatisfactory due to poor enforcement of land ceiling
law. Data show that only less than 2% land has been declared surplus and only
1% of the total cultivated area actually has been distributed among landless
labourers. The reason behind the failure of land ceiling law was:
* A large number of exemptions
were granted from land ceiling law.
* Zamindars and big landlords succeeded to transferring a larg
area of land under the control of
their relatives.
* State delayed its implementation.
3.5 Consolidation of Land Holdings (Chakbandi) – Under this policy, a farmer is given one
consolidated land holding equal in area to all his split land holdings.
(for more data please watch video)
(Agricultural development, Land Reforms, Land Ceiling)
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Regards
Dr. Asad Ahmad
KV IIM, Lucknow
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Very usefull notes. Thank you sir
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