Monday, April 1, 2013

Changes in Forces and Relations of Production in Indian Agriculture



 
                                                                                                                 T. Lakshminarayana 
                                     Director, NRR Research Centre, Hyderabad

India is a very big country with wide regional variations in the socio-economic conditions. In agriculture there are similarities, variations and differences between the states and regions. Today, agrarian economy is facing alarming situation and going through perpetual and deep multi dimensional crises. It is very important to study in depth and analyze to arrive at a comprehensive understanding on agricultural sector from the critical angle of Marxist thought.
During the British rule Indian economy remained backward; it was dependent and colonial in character. But imperial interests dictated the need for a certain measure of capitalist development though superimposed on a feudal-landlord base in the country.
In independent India, no doubt tremendous and radical changes have taken place in the agrarian sector which resulted change in the production and production relations. All those positive changes in agrarian sector were achieved through mass struggles only. Now, some of them have been reversed and attempts are underway by the state to revert in favor of Multinational Corporations as well as Indian Corporate and big business houses in the present era of neo-liberalism.

Abolition of Intermediaries: In the Pre- Independence era there were three principal types of land tenure i.e. Zamindari, Ryotwari and Mahalawari systems. About 50% of the country was under Zamindari and other feudal systems. Under Zamindari system feudal landlords were the proprietors of the estates and the peasants were obtaining the holdings by leasing the same from the landlords. The remaining 50% was under Ryotwari and Mahalawari systems. The major part of the land was belonged to rent receiving landlords, who were not the tillers of the soil. Other than land, labour and the means of production were supplied by the peasant cultivators. The profits were grabbed by the feudal landlords contributing neither capital nor labour to the production process. The peasants were the victims of the combined oppression and exploitation of the landlords (Zamondars, Jagirdars and Inamdars etc.), merchants and usurer capital under British Rule.

In that background, two popular slogans of peasant movement were put forwarded; they are “Abolish the Zamindary System” and “Land to the Tillers”. These slogans underlined the anti-feudal and anti-imperialist character of the movement and made it an integral part of national liberation struggle. In the midst of the bitter struggles the All India Kisan Sabha was founded in 1936 and it spear headed the movement. These heroic peasant’s struggles spread over throughout the country. The heroic peasant’s armed struggle in Telangana was pioneer in that movement.
After independence the Indian bourgeoisie class headed by ruling Congress Party pursued policies directed towards capitalist path of development. In order to expand the internal market and to mobilize capital resources, it was also vitally necessary to carry out a certain measures of land reforms and restrict feudal relations in agriculture. This came in to conflict with the interests of the landlords and princely houses. It had to be anti-feudal in its direction. Though the demand of “Abolish the Zamindary System” had emerged during the national liberation movement, the bourgeois leadership was not prepared to carry out this to its logical conclusion. It displayed strong vacillations and compromising policies on vital aspects which signified a retreat from the programme of the national liberation movement. But in its class interest for industrial and capitalist growth, the bourgeoisie government had abolished princely states and intermediary tenures. However the ruling class compromised with feudal landlords and Paid huge compensation of about Rs.600 crore and allowed them to retain lakhs of acres of land in the name of self-cultivation and home land properties. As a result of that, there remained strong remnants of semi-feudal exploitation. But, the system as such was abolished. As a result the statutory feudal relations and forms of production were removed by and large. About 2 crores of peasants (tenants) become free and owners of 17.3 crore of acres of land which they have been cultivating. They got direct relation with the state. And also crores of acres of waste lands, community lands, forestry and other lands were liberated from the ownership and hold of Princes, Zamindars, Jagirdars and Inamdars etc. It was a big blow to feudalism.The long cherished anti feudal struggle of peasants succeeded in the abolition of feudal system. Undoubtedly the breaking up of the feudal statutory landlordism is a first and foremost radical change in the cruel feudal relations of production in India as well as paved the way for favorable conditions for the development of capitalism.

The rulers of princely states and the feudal landlords had constituted the crucial social and political base of colonial power. It was, therefore, expected that in independent India no place will be given to them in political and economic spheres. This did not happen. The ruling bourgeoisie continued its alliance with the landlords as well as the dislodged rulers of princely states. The landlords were also given an opportunity to become capitalist (farmer) landlords and evict thousands of “tenants-at-will” in the name of resuming self-cultivation. The feudal landlords transformed and developed as capitalist landlords with the money and land which they got from the state. The capitalist landlords and the new stratum of rich peasants formed the political base of the new ruling class in countryside.

Land reforms:  Along with abolition of intermediaries the land ceiling laws were enacted during 1950s & 60s. The provisions for imposing ceiling on land holdings and protecting tenant farmers from exploitative land leasing practices were included. The level of ceiling was very high, with number of loopholes and exemptions from ceiling. The definition of family was ambiguous. In 2004 the Union Govt. informed Parliament that the land declared surplus in the country was 7.3 million acres, land acquired by state governments was 6.5 million acres and the land actually distributed was only 5.3 million acres (most of this was done in the states of West Bengal, Kerala and Jammu Kashmir). The land lords are allowed to dispose their lands above ceilings through various methods of sales, benami transactions, transfers and exemptions etc. it wants to develop capitalist landlordism and rich farmers in order to develop capitalism and capitalist relations of production.

The expectation of landless peasantry was belied and in 60s and 70s land struggles took place in many parts. The heroic legacy of anti-feudal struggle was carried forward with the slogan “land to the tillers”. The Communist Party of India headed by its then General Secretary Com. C. Rajeshwar Rao carried out several militant land struggles for breaking up large estates under the occupation of big landlords like Challapalli Raja. Several thousand acres of land was occupied and distributed among landless peasants and agricultural labour. In many cases the farmers or their children are still cultivating the land, which they had taken possession of in 1960s and 70s. Though the peasants occupied and cultivated Challapalli Raja’s lands after a long and bitter struggle, they got legal entitlement only in 1980s.  The Naxalbari Movement also rose in 1967 calling for land redistribution. The bourgeoisie was forced to understand the militant struggles of the rural poor and was forced to amend ceiling laws radically in 1972, though- not implemented sincerely. More over the state compromised with the landlords and sabotaged its own laws. Therefore the internal market did not expand to the desired extent. The obstacles that stand in the way are precisely because of the capitalist path pursued by the bourgeois - landlord dispensation at the helm of the state, which in addition to its compromise with semi-feudal elements also has links with foreign monopoly capital.

Green Revolution: It was introduced in mid-sixties in the northern states. The government invested a great deal of resources in HYV programme. The necessary physical and market infrastructure was provided on subsidized rates to the well endowed farmers of Punjab, Haryana and western U.P. Productivity increased many-fold and the class of resource-rich capitalist farmer was consolidated. At the same time a large number of small and marginal farmers moved out of agriculture in these states. The Green Revolution increased disparities both between regions and within regions. It needs to be noted that notwithstanding the emergence of a powerful capitalist farmers lobby, the semi-feudal production relations survived the entire period of the green revolution prosperity. 

Tenancies: The national bourgeois wants to eliminate tenancy system because it contains feudal and semi-feudal relations of production and it is an impediment in the way of capitalist mode of development in agriculture. But at the same time it does not want to eliminate the land owners as property holders. At the same time it cannot directly expropriate the tenants who are in millions and struggling for the rights. So, the state created legislative and administrative pressure on the land owners so that they take away land from tenants and become cultivators or sell away to tenants or others. The state acted more favorably to the land owners. It is only in Kerala under the Chief Ministership of Achuthamenon tenancy was by and large abolished and sincerely implemented the law with all sincerity and 35 lakh tenants were given land.

By and large Semi-feudal land relations had been gradually reduced. But still tenancy system exists in various forms as clandestine tenants; informal tenants and tenants at will have no records. There are other tenants under religious and other institutions, having some records. Today in some districts of coastal Andhra Pradesh 70 to 80% (21.82% in 1962 in the A.P.) of land is cultivated by tenants. This development took place because of various reasons. The educated and experienced landlords with their surplus money have entered into industry, business, trade, transport services, contracts, construction, real-estate, financial business and so on. The educated youth left rural areas to join or in search of employment in government and private sectors in urban areas as well as in abroad. As a result they have rented out their lands to the tenants. Due to the crisis in agriculture and uncertainty caused by natural calamities, the growing burden of indebtedness and the lack of employment, there is large-scale migration from the rural to the urban areas in search of work and better opportunities of livelihood. The industrialists, contractors, businessmen, doctors, engineers and other urban rich and wealthy sections purchased agriculture lands in order to get income tax exemptions and rented to tenants. Most of the tenants are agricultural labour, marginal and small peasants. So, absentee landlordism continues to exist. The contradictions and interests of classes also continue to exist between land owners and tenants.

Growth of marginal and small farmers: After independence the ruling class faced serious challenges, one is scarcity of food due to agrarian crises, another problem is growing Population. To overcome the prevailing situation the bourgeoisie decided to cultivate millions of acres of cultivable waste lands by involving rural poor in order to produce food grains as well as raw materials to the industries, which helps to build capitalism in the country. The bourgeoisie understood that without providing employment to the vast rural masses it is not possible to expand internal market for their industrial goods. So, for the growth and expansion of industry and in its own class interest it did not expropriate the rural poor from land and also encouraged with some supporting schemes like IRDP etc.

Role of Technology: Capitalism took roots in agriculture using the achievements of Science and Technological Development. Water is the most essential input in the development of agriculture. The construction of Major and medium irrigation projects led to massive growth in agriculture. Multi crop areas and Production and productivity increased. Technological development has brought modern equipment to agriculture, such as Electricity (Pump sets etc.), Farm mechanization (tractors, fertilisers dispensing machines, other equipment that safeguards crops, plowing and weeding machines, JCB machines etc.); the wider availability of  fertilizers, High yielding Seeds, Pesticides, Credit facility etc. - all of them played vital role in the development of modern agriculture. Ofcourse large, medium and Semi-medium peasants benefited maximum with this technological development.  The marginal and small farmers could not benefit much because their size of land holdings is small and financially weak. So attributing this weakness the state is discouraging small and marginal framers by saying cultivation in small land holdings is not viable and trying to eliminate poor peasants from farming activity. At the same time promoting contract and corporate farming as part of their game in strengthening capitalism in agricultural sector.

The medium and semi-medium farmers generally follow the lead provided by the big farmers in switching over to new technology, new cropping pattern and new production arrangements. Sometimes they do it willingly in the hope that the returns will be high. More often it is done under compulsion because earlier infrastructure has been dismantled. In 1980s and 90s the medium and semi-medium farmers shifted to new cropping pattern and new technology. As a result the spate of farmer’s suicides has become a matter of great concern. The beginning of the 21st century has been greeted by a pervasive and intractable agrarian crisis in Indian economy. More than two lakh farmers have committed suicides. Agricultural growth has stagnated. The share of agriculture in GDP has come down to 12%, whereas its share in workforce still remains as high as 58%.  The cumulative effect of neo-liberal policies is that the goal of Food sovereignty is under serious threat. Nation cannot afford to depend on food imports to feed its people. Food export is used as a political weapon by imperialist countries.

In spite of multi-fold attacks, agriculture still managed to survived, contributing 18.7% (58.8% in 1960-61 & 46.62% in 1980-81) income to the state Gross Domestic product (SGDP) and providing about 60% of the total employment. Expansion of farm incomes continues to be an effective weapon for reducing poverty. Rapid and sustainable growth in Agriculture has been identified not only as a key driver for economic development but also for achieving self sufficiency and ensuring food security to the people. Andhra Pradesh over the decades has witnessed gradual transformation of the agricultural sector. The nature of the transformation itself has undergone change overtime. During 1980s, there was a shift in agriculture from traditional cereal-based system towards commercial commodities.

Abolition of the system of Patel- Patvari or Reddy-Karanam: This system by and large served the interests of the feudal and semi- feudal landlords in Andhra Pradesh. It was used as a weapon to exploit and harass the small and marginal farmers by bungling the land records. The abolition of this system led to radical changes in the countryside and democratised up to some extent and it gave great relief to the poorer sections.

Enactment of MGNREGA: This Act is a progressive step in not only providing some livelihood and implementing minimum wages, and it also liberated the landless agricultural workers from semi-feudal exploitation up to some extant. Ensuring food security and provision of gainful employment continues to be the essential premise of socio economic development and employment guarantee schemes like Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and other Rural Livelihoods programmes. But some contradictions have been arising between peasants and agricultural labourers on the implementation of the Act in the present form because of scarcity of labour. But the state never implemented the minimum wages act in letter and spirit. The percentage of population below the poverty line in the state are mostly the weaker sections of the society i.e. SC’s, ST’s and other Backward Caste’s. The development of society cannot be achieved without the development of these oppressed people. Most of the landless agricultural labourers and small farmers belong to this group.

Problem of usurers: Apart from forcible land grab and introduction of contract farming by corporate houses, the farmers are also subjected to an iniquitous credit system. Loans previously given to agriculture as a priority sector are drying up. Once again the peasants are being thrown to the mercies of the money lenders. It is estimated that while the banking system as a whole financed 35.6% of the loans, private money lenders accounted for 25.7% of the loans advanced to farmers. With the intensification of the agrarian crisis, features like usury, bondage and caste violence have resurfaced aggressively.

Attack from Crony capitalism: The development of capitalism in Indian agriculture is based on a compromise with feudal remnants on the one-hand, and collusion with foreign capital on the other.  While semi-feudal production relations still dominate in many parts in rural India, the doors has been opened for the multinational corporations to enter the field and assume cardinal positions in certain areas.  IMF, World Bank and the WTO have played an active role in this respect. The government has signed Indo-US Agricultural Initiative where representatives of Monsanto, Cargill and other multinational companies participate in joint committees to take important decisions on research and new initiatives in Indian Agriculture. This is a clear indication of what role the MNCs are going to play.

A new offensive was launched on the farm sector by corporate and industrial units, land mafia, real estate developers and the government in the name of Special Economic Zones (SEZ), Public Private Partnership (PPP) and other developmental projects. In the name of industrial development and urbanization the state is trying to grab the ‘patta’ lands from the farmers’ and assigned lands from weaker sections. The state invoked antiquated Land Acquisition Act of colonial era of 1894 to evict peasants from their land and hand over the land to private companies and justified indiscriminate use of force against peasantry and poor people. Under the neo-liberal frame, the state reversed the clock of land reform acts. The SEZ Act say’s no Indian law will apply to SEZ area and the land will be treated as foreign land. In the process, several lakh acres of land have been acquired and millions of peasants and others dependent on land have been evicted and deprived of their livelihood.  This is a crude and brutal offensive of the bourgeois state led by the corporate houses and big business. As a result bitter and often violent struggles by farmers resisting the forcible acquisition of land by the state and the corporate entities with the active help of the state have been taking place in many parts of the country. The corporate sector has been allotted vast tracts of forest land and the so called waste land and farm land. It has also got indirect control over farm land through the provision of contract farming.

After independence national bourgeois is engaged in the process of building capitalism, abolished feudal landlordism and to expand internal market they enacted land ceiling acts; when there was a food crises they promoted green revolution; today as part of neo-liberalist policies, they have reversed land ceiling acts and handed over lakhs of acres to Multinational companies, Indian corporate and big business houses as part of building crony capitalism.

Land is the key issue. The land problem cannot be resolved without severe class struggle in the countryside. This struggle should not only aim at the dying semi-feudal system, but mainly targeting MNCs, Indian Corporate and big business houses and their henchmen and ruling class. Certainly this struggle will carry forward the object of achieving democratic revolution in our country.  

The Structural Adjustment Programme, which heralded the offensive of liberalization, privatization and globalization, brought with it a new crisis in rural livelihoods. The inclusion of agriculture in the Urguay Round of negotiations and the so-called Free Trade Agreements with some countries under the new regime of WTO has adversely affected our agriculture. All restrictions on external and internal trade of agricultural commodities were removed and the agrarian sector was exposed to unfair and unequal international competition. The big farmer ‘lobby’ took an ambiguous stance towards the new regime. Initially, they perceived trade liberalization and entry of agribusiness as programmes advantageous to them. However, the deflationary trend in world market prices in latter half of 90s and unequal bargaining power vis-a-vis the corporate lobby made them uncomfortable. So contradictions between corporate and the big farmer lobby developed.

The domestic and foreign multinational companies rapidly made deep inroads in input and output markets. The supply of seeds, fertilizers and pesticides is now largely controlled by MNCs. The recent mode of attack on Indian peasantry is through forcibly providing genetically modified seeds by the seed MNC’s in collaboration with government. This is creating havoc and instability in agricultural production. The government intends to pass a ‘Seed Bill’ which will give a legal basis to this attack on agriculture.

Agriculture is being drawn into the world commodity market, subjecting land, water and other natural resources and agricultural inputs and outputs to inexorable market forces. This signals the growth and development of capitalism and capitalist relations of production in agriculture. The growth of capitalism in agriculture is sharpening all social contradictions. Superimposed on the ruins of earlier modes, it accounts for the specific nature of the crisis in agriculture, the widening disparities and the misery of the lower strata of the working peasantry. Though capitalist development has proceeded a-pace there is a mixture and co-existence of several earlier social formations i.e. feudal, semi-feudal, tribal scattered across a vast territory of the country.

                                                              ********
Annexe: 1        
      Distribution of Land Holdings by Size Classes, 1956-57 and 2010-11 in Andhra Pradesh
Size Group                No. of Holdings (Lakh)           % to Total             Operated Area (Lakh Hect.)        % to Total      Average Size of Holdings (Hect.)
                              1956-57    2010-11     1956-57     2010-11      1956-57   2010-11      1956-57   2010-11        1956-57      2010-11
    1                       2             3            4                5              6             7                8           9                10           11
Marginal           16.38    84.25      38.58       63.95      8.16       37.27         7.90    26.08          0.50        0.44
Small                    7.75   29.18      18.25       22.15     10.00      41.20          9.67    28.82         1.29        1.41
Semi-medium     7.53   13.99      17.73       10.62     16.69      36.85        16.15    25.78         2.22        2.63
Medium               7.11     3.97       16.75        3.02      29.04     22.09        28.09     15.46        4.08         5.56
Large                    3.69      0.36        8.69         0.27      39.48       5.52        38.19      3.86       10.70       15.33
Total                  42.46  131.75    100.00     100.00    103.37   142.93     100.00   100.00     2.43          1.08
Source: Directorate of Economics and Statistics. (Note: One Hectare = 2.47 acres)
Annexe: 2        
Land Utilisation in Andhra Pradesh 2011-12:
The total geographical area of the State is 275.04 lakh hectares. Out of this, 40.58% is under Net Area sown i.e. 111.60 lakh hectares (113.74 lakh hect. in 1956-57), 22.65 % under Forest  62.30 lakh hectares ( 55.55 lakh hect. in 1956-57), 8.26 % under current fallow lands 22.73 lakh hectares ( 17.85 lakh hect. in 1956-57), 10.19% under Land put Non-Agricultural uses  28.03 lakh hectares ( 15.24 lakh hect. in 1956-57), 7.36 % under Barren and uncultivable land  20.24 lakh hectares (25.87 lakh hect. in 1956-57) and remaining 10.96% is under other fallow land, cultivable waste, lands like permanent pastures and other grazing lands and land under miscellaneous tree crops and groves are not included in the Net Area Sown  30.14 lakh hectares (40.87 lakh hect. in 1956-57).

(Paper presented in the Debate on “Indian Society – Evolution in Mode of Production” held at Vijayawada, Andhra Pradesh on 29-30th March, 2013 organized by Leftist Study Circle)     evolution

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