India - Agriculture

Landholding Categories

India is a land of small farms, of peasants cultivating their ancestral lands mainly by family labor and, despite the spread of tractors in the 1980s, by pairs of bullocks. About 50 percent of all operational holdings in 1980 were less than one hectare in size. About 19 percent fell in the one-to-two hectare range, 16 percent in the two-to-four hectare range, and 11 percent in the four-to-ten hectare range. Only 4 percent of the working farms encompassed ten or more hectares.

In the Great Indian Desert, rainfall is scanty and erratic. About 20 percent of the total area is under cultivation, mostly in Haryana and Gujarat states, and comparatively little in Rajasthan. The Indira Gandhi Canal--begun in 1958 as the Rajasthan Canal--was designed to bring water from the north. Progress was slow, and only the first stage was close to completion by the end of the Seventh Five-Year Plan (FY 1985-89). By then, the canal had substantially increased the area under cultivation in Rajasthan, and a new completion date of 1999 is anticipated (see Development Programs, this ch; Development Planning, ch. 6). The cultivable area is expected to expand further with the development of the canal's second stage during the 1990s. The leading crops of the subregion are millet, sorghum, wheat, and peanuts. Vast expanses of sparse vegetation provide sustenance for sheep and goats. In the late 1980s, dairy farming became important in locations that had sufficient pastureland.

By the beginning of the 1990s, all states and union territories, except Goa, Arunachal Pradesh, Nagaland, Manipur, Mizoram, and Tripura, had passed ceiling laws to conform to central government guidelines. In Maharashtra, for example, the revised ceiling law that became effective in 1975 set upper limits at perennially irrigated land, 7.2 hectares; seasonally irrigated land, 10.8 hectares; paddy land in an assured rainfall area, 14.6 hectares; and other dry land, 21.9 hectares. By the early 1980s, about 150,000 hectares had been declared surplus under this act, about 100,000 of which had been distributed to 6,500 landless persons. A 1973 land reform amendment in Bihar set a range of ceilings on holdings for a family of five, from six to eighteen hectares depending on land quality, and offered an allowance for each additional family member, subject to a maximum of one-and-one-half times the holding. Within five years, the Bihar government had acquired 94,000 hectares of surplus land and had distributed 53,000 hectares to 138,000 landless families. Success nationwide was limited. Of the 2.9 million hectares of land declared surplus, nearly 1.9 million hectares had been distributed by the end of the seventh plan, leaving 1 million hectares still to be distributed as of early 1993.

There are large disparities among India's states and territories in agricultural performance, only some of which can be attributed to differences in climate or initial endowments of infrastructure such as irrigation. Realizing the importance of agricultural production for economic development, the central government has played an active role in all aspects of agricultural development. Planning is centralized, and plan priorities, policies, and resource allocations are decided at the central level. Food and price policy also are decided by the central government. Thus, although agriculture is constitutionally the responsibility of the states rather than the central government, the latter plays a key role in formulating policy and providing financial resources for agriculture.

Food-grain production increased from 50.8 million tons in fiscal year (FY--see Glossary) 1950 to 176.3 million tons in FY 1990. The compound growth rate from FY 1949 to FY 1987 was 2.7 percent per annum. Overall, wheat was the best performer, with production increasing more than eightfold in forty years. Wheat was followed by rice, which had a production increase of more than 350 percent. Coarse grains had a poorer rate of increase but still doubled in output during those years; production of pulses went up by less than 70 percent. The increase in oilseed production, however, was not enough to fill consumer demands, and India went from being an exporter of oilseeds in the 1950s to a major importer in the 1970s and the early 1980s. The agricultural sector attempted to increase oilseed production in the 1980s and early 1990s. These efforts were successful: oilseed production doubled and the need for imports was reduced. In the early 1990s, India was on the verge of self-sufficiency in oilseed production.After independence in 1947, the cropping pattern became more diversified, and cultivation of commercial crops received a new impetus in line with domestic demands and export requirements. Nontraditional crops, such as summer mung (a variety of lentil, part of the pulse family), soybeans, peanuts, and sunflowers, were gradually gaining importance.

To ensure more uniformity in income, to combat evasion of the intent of the laws, and to secure more land for distribution to the landless, the central government in the 1970s pushed for greatly reduced ceilings. For a family of five, the central government guidelines called for not more than 10.9 hectares of good, irrigated land suitable for double-cropping, not more than 10.9 hectares of land suited for one crop annually, and not more than 21.9 hectares for orchards. Exemptions were continued for land used as cocoa, coffee, tea, and rubber plantations; land held by official banks and other government units; and land held by agricultural schools and research organizations. At the option of the states, land held by religious, educational, and charitable trusts also could be exempted. To protect the states from legal challenges to their land reform laws, the constitution was amended in 1974 to include in its Ninth Schedule the state laws that had been enacted in conformance with national guidelines. Land reform laws enacted after 1974 also were included in the amendment.

Because of the large number of landless farmers and the frequent neglect of land by absentee landlords in the early years of independence, the principle that there should be a ceiling on the size of landholdings, depending on the crop planted and the quality of the land, was embodied in the First Five-Year Plan (FY 1951-55). An agricultural census was conducted to provide guidance in setting such ceilings. During the Second Five-Year Plan (FY 1956-60), most states legislated fixed ceilings, but there was little uniformity among the states; ceilings ranged from six to 132 hectares. Certain specialized branches of agriculture, such as horticulture, cattle breeding, and dairy farming, were usually exempted from ceilings.

All the states instituted programs to force landowners to sell their over-the-ceiling holdings to the government at fixed prices; the states, in turn, were to redistribute the land to the landless. But adamant resistance, high costs, sloppy record keeping, and poor administration in general combined to weaken and delay this aspect of land reform. The delays in legislation allowed large landowners to circumvent the intent of the laws by spurious partitioning, sales, gifts to family members, and other methods of evading ceilings. Many exemptions were granted so that there was little surplus land.

In the far south of the Peninsula, the area under cultivation varies from about 10 percent in the Western Ghats, to 25 percent in the western coastal tract, to 55 percent on the Karnataka Plateau. Here is the India--the land of spices--that Vasco da Gama and other European navigators came searching for in the fifteenth century. On the Karnataka Plateau, sorghum, millet, pulses, cotton, and oilseeds are the main crops on the 90 percent of the cultivated land that is dry-farmed; rice, sugarcane, and vegetables predominate on the 10 percent that was irrigated in the late 1980s. Coconuts, areca, coffee, pepper, rubber, cashew nuts, tapioca, and cardamom are widely grown on plantations in the Nilgiri Hills and on the western slopes of the Western Ghats.

Land Use

In FY 1987, field crops were planted on about 45 percent of the total land mass of India. Of this cultivated land, almost 37 million hectares were double-cropped, making the gross sown area equivalent to almost 173 million hectares. About 15 million hectares were permanent pastureland or were planted in various tree crops and groves. Approximately 108 million hectares were either developed for nonagricultural uses, forested, or unsuited for agriculture because of topography. About 29.6 million hectares of the remaining land were classified as cultivable but fallow, and 15.6 million hectares were classified as cultivable wasteland. These 45 million hectares constitute all the land left for expanding the sown area; for various reasons, however, much of it is unsuited for immediate cropping. Expansion in crop production, therefore, has to come almost entirely from increasing yields on lands already in some kind of agricultural use (see table 26; table 27, Appendix).

By the early 1980s, most of the cultivated area had been surveyed and records of rights prepared. In most states, revenue assessment--the tax on land--against farmland had been revised upward in keeping with a rise in farm prices (see Agricultural Taxation, this ch.). In several states, steps were taken to associate village assemblies, or panchayat (see Glossary), with the maintenance of land records, the collection of land revenue, and the management of lands belonging to government; the results of these efforts have frequently been unsatisfactory.

By the early 1990s, nearly all the states had enacted legislation aimed at the consolidation of each tiller's landholdings into one contiguous plot. Implementation was patchy and sporadic, however. By the early 1980s, the work had been completed only in Punjab, Haryana, and western Uttar Pradesh and had begun in Orissa and Bihar. In most of the other states, nothing had been accomplished by the early 1990s. The Sixth Five-Year Plan (FY 1980-84) set a goal for the completion of the consolidation of holdings within ten years, which was not achieved.

Independent India inherited a structure of landholding that was characterized by heavy concentration of cultivable areas in the hands of relatively large absentee landowners (zamindars--see Glossary), the excessive fragmentation of small landholdings, an already growing class of landless agricultural workers, and the lack of any generalized system of documentary evidence of landownership or tenancy. Land was important as a status symbol; from one generation to the next, there was a tendency for an original family holding to be progressively subdivided, a situation that continued in the early 1990s. This phenomenon resulted in many landholdings that were too small to provide a livelihood for a family. Borrowing money against land was almost inevitable and frequently resulted in the loss of land to a local moneylender or large landowner, further widening the gap between large and small landholders. Moreover, inasmuch as landowners and moneylenders tended to belong to higher castes and petty owners and tenants to lower castes, land tenure had strong social as well as economic impact (see Varna , Caste, and Other Divisions; Settlement and Structure, ch. 5).

In order to protect tenants from exorbitant rents (often up to 50 percent of their produce), the states passed legislation to regulate rents. The maximum rate was fixed at levels not exceeding 20 to 25 percent of the gross produce in all states except Andhra Pradesh, Haryana, and Punjab. The states also adopted various other measures for the protection of tenants, including moratoriums on evictions, minimum periods of tenure, and security of tenure subject to eviction on prescribed grounds only.

Land Tenure

Matters concerning the ownership, acquisition, distribution, and taxation of land are, by provision of the constitution, under the jurisdiction of the states (see Local Government, ch. 8). Because of the diverse attitudes and approaches that would result from such freedom if there were no general guidelines, the central government has at times laid down directives dealing with the main problems affecting the ownership and use of land. But it remains for the state governments to implement the central government guidelines. Such implementation has varied widely among the states.

Many factors--historical, political, economic, and demographic--have affected the development of the prevailing land-tenure status. The operators of most agricultural holdings possess vested rights in the land they till, whether as full owners or as protected tenants. By the early 1990s, there were tenancy laws in all the states and union territories except Nagaland, Meghalaya, and Mizoram. The laws provide for states to confer ownership on tenants, who can buy the land they farm in return for fair payment; states also oversee provision of security of tenure and the establishing of fair rents. The implementation of these laws has varied among the states. West Bengal, Karnataka, and Kerala, for example, have achieved more success than other states. The land tenure situation is complicated, and it has varied widely from state to state. There is, however, much less variation in the mid-1990s than in the postindependence period.

Although farms are typically small throughout the country, the average size holding by state ranges from about 0.5 hectare in Kerala and 0.75 hectare in Tamil Nadu to three hectares in Maharashtra and five hectares in Rajasthan. Factors influencing this range include soils, topography, rainfall, rural population density, and thoroughness of land redistribution programs.

Himalayas

The Himalayan region, with some 520,000 square kilometers of land, ranks well behind the other two regions in agricultural importance. Despite generally adequate rainfall, the rugged topography allows less than 10 percent of the land to be used for agriculture. The sandy, loamy soils on the hillsides and the alluvial clays in the region's premier agricultural subregion, the Vale of Kashmir--located in the northwestern part of the state of Jammu and Kashmir--provide fertile land for agricultural use. The main crops are rice, corn, wheat, barley, millet, and potatoes. Most of India's temperate-zone fruits (apples, apricots, cherries, and peaches) and walnuts are grown in the vale. Sericulture and sheepherding also are being undertaken. In the eastern Himalayan subregion, the soils are moderately rich in organic matter and are acidic. Although much of the farming is done on terraced hillsides, there is a significant amount of shifting cultivation, which has resulted in deforestation and soil erosion. Rice, corn, millet, potatoes, and oilseeds were the main crops in the early 1990s. The region also is well known for the tea plantations of the mountainous Darjiling (Darjeeling) area in the northern tip of West Bengal.

Peninsular India

The east and west coasts, the coastal plains, and the deltaic tracts that extend inland for some 100 to 200 kilometers in Peninsular India benefit from both the June-to-September southwest monsoon and the October-to-November northeast monsoon. Farther inland, as the topography and climate change, so does the pattern of agriculture. The proportion of land under cultivation ranges from about 50 percent along the coastal plain and in the western part of Andhra Pradesh to about 25 percent in eastern Madhya Pradesh. Except in areas of certain developed river valleys, double-cropping is rare. Rice is the predominant crop in high-rainfall areas and sorghum in low-rainfall areas. Other crops of significance along the east coast and in the Central Highlands in the early 1990s were pigeon peas, mustard, peanuts, millet, linseed, castor beans, cotton, and tobacco.

Indo-Gangetic Plain

The vast Indo-Gangetic Plain, extending from Punjab to Assam, is the most intensively farmed zone of the country and one of the most intensively farmed in the world. Rainfall, most of which comes with the southwest monsoon, is generally adequate for summer-grown crops, but in some years vast areas are seared by drought. Fortunately, much of the land has access, or potential access, to irrigation waters from wells and rivers, ensuring crops even in years of drought and making possible a winter crop as well as a summer harvest. Wheat is the main crop in the west, rice in the east. Pulses, sorghum, oilseeds, and sugarcane are among other important crops. Mango orchards are common. Other fruits of the subregion include guavas, jackfruit, plums, lemons, oranges, and pomegranates.

Agriculture

AGRICULTURE HAS ALWAYS BEEN INDIA'S most important economic sector. In the mid-1990s, it provides approximately one-third of the gross domestic product (GDP--see Glossary) and employs roughly two-thirds of the population. Since independence in 1947, the share of agriculture in the GDP has declined in comparison to the growth of the industrial and services sectors. However, agriculture still provides the bulk of wage goods required by the nonagricultural sector as well as numerous raw materials for industry. Moreover, the direct share of agricultural and allied sectors in total exports is around 18 percent. When the indirect share of agricultural products in total exports, such as cotton textiles and jute goods, is taken into account, the percentage is much higher.

Topography, soils, rainfall, and the availability of water for irrigation have been major determinants of the crop and livestock patterns characteristic of the three major geographic regions of India--the Himalayas, the Indo-Gangetic Plain, and the Peninsula--and their agro-ecological subregions (see fig. 5; Principal Regions, ch. 2). Government policy as regards irrigation, the introduction of new crops, research and education, and incentives has had some impact on changing the traditional crop and livestock patterns in these subregions. The monsoons, however, play a critical role in determining whether the harvest will be bountiful, average, or poor in any given year. One of the objectives of government policy in the early 1990s was to find methods of reducing this dependence on the monsoons.

Land Reform

A major concern in rural India is the huge number of landless or near-landless families, many of whom are wholly dependent on a few weeks of work at the peak planting and harvesting seasons. The number of landless rural families has grown steadily since independence, both in absolute terms and as a proportion of the population. In 1981 there were 195.1 million rural workers: 55.4 million were agricultural laborers who depended primarily on casual farm work for a livelihood. In the early 1990s, the rural work force had grown to 242 million, of whom 73.7 million were classified as agricultural laborers. Approximately 33 percent of the employed rural workers were classified as casual wage laborers.

On the Deccan Plateau, deep, alluvial black soils that retain moisture for a long time are the basis for much of the region's output of farm products. However, the region also has many farming areas that are covered by thin, light-textured soils that suffer quickly from drought. Whether a crop is made or lost is, therefore, often dependent on the availability of supplementary water from ponds and streams. About 60 percent of the land in the state of Maharashtra was under cultivation in the early 1990s, less in Madhya Pradesh. About 75 percent of the cropland of the Deccan during this period was planted in food crops, such as millet, sorghum, rice, wheat, and peanuts; most of the remaining cropland was planted in fodder crops.

Dependence on agricultural imports in the early 1960s convinced planners that India's growing population, as well as concerns about national independence, security, and political stability, required self-sufficiency in food production. This perception led to a program of agricultural improvement called the Green Revolution, to a public distribution system, and to price supports for farmers (see The Green Revolution, this ch.). In the 1980s, despite three years of meager rainfall and a drought in the middle of the decade, India managed to get along with very few food imports because of the growth in food-grain production and the development of a large buffer stock against potential agricultural shortfalls. By the early 1990s, India was self-sufficient in food-grain production. Agricultural production has kept pace with the food needs of the growing population as the result of increased yields in almost all crops, but especially in cereals. Food grains and pulses account for two-thirds of agricultural production in the mid-1990s. The growth in food-grain production is a result of concentrated efforts to increase all the Green Revolution inputs needed for higher yields: better seed, more fertilizer, improved irrigation, and education of farmers. Although increased irrigation has helped to lessen year-to-year fluctuations in farm production resulting from the vagaries of the monsoons, it has not eliminated those fluctuations.

The per capita availability of a number of food items increased significantly in the postindependence period despite a population increase from 361 million in 1951 to 846 million in 1991. Per capita availability of cereals went up from 334 grams per day in 1951 to 470 grams per day in 1990. Availability of edible oils increased significantly, from 3.2 kilograms per year per capita in FY 1960 to 5.4 kilograms in FY 1990. Similarly, the availability of sugar per capita increased from 4.7 to 12.5 kilograms per year during the same period. The one area in which availability decreased was pulses, which went from 60.7 grams per day to 39.4 grams per day. This shortfall presents a serious problem in a country where a large part of the population is vegetarian and pulses are the main source of protein.

By the early 1970s, after extensive legislation, large absentee landowners had, for all practical purposes, been eliminated; their rights had been acquired by the state in exchange for compensation in cash and government bonds. More than 20 million former zamindar-system tenants had acquired occupancy rights to the land they tilled. Whereas previously the landlord collected rent from his tenants and passed on a portion of it as land revenue to the government, starting in the early 1970s, the state collected the rent directly from cultivators who, in effect, had become renters from the state. Most former tenants acquired the right to purchase the land they tilled, and payments to the state were spread out over ten to twenty years. Large landowners were divested not only of their cultivated land but also of ownership of forests, lakes, and barren lands. They were also stripped of various other economic rights, such as collection of taxes on sales of immovable property within their jurisdiction and collection of money for grazing privileges on uncultivated lands and use of river water. These rights also were taken over by state governments in return for compensation. By 1980 more than 6 million hectares of waste, fallow, and other categories of unused land had been vested in state governments and, in turn, distributed to landless agricultural workers.

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