During the British rule, commercialisation of agriculture was forced on the farmers, while now it is the need of the hour. Discuss.

Forced Commercialization under British Rule (1757-1947)

The British East India Company and subsequent colonial administration actively promoted commercialization of Indian agriculture, but in a manner that was largely exploitative. This was driven by the need for raw materials for British industries and a market for British manufactured goods.

• Permanent Settlement (1793): Created a class of landlords who prioritized revenue maximization, leading to increased pressure on farmers to grow cash crops like indigo, opium, and cotton.
• De-industrialization: The decline of Indian handicrafts forced farmers to rely on agriculture, increasing the supply of agricultural produce for export.
• Railways & Infrastructure: While facilitating transport, railways primarily served the purpose of transporting raw materials to ports for export, rather than benefiting farmers directly.
• Indigo Rebellion (1859-60): A prime example of the coercion faced by farmers forced to cultivate indigo under unfavorable contracts.

This forced commercialization led to several negative consequences: increased indebtedness, famines (like the Great Bengal Famine of 1770 and others in the 19th century), and a decline in foodgrain production.

Need for Commercialization in Present Times

Today, commercialization of agriculture is not an imposition but a necessity for several reasons:

• Increased Productivity: Commercialization encourages farmers to adopt modern technologies, high-yielding varieties, and efficient farming practices to maximize output and profits.
• Market Integration: Connecting farmers to wider markets through infrastructure development (e.g., e-NAM, Grameen Rural Infrastructure Development Fund - GRIDF) allows them to realize better prices for their produce.
• Diversification: Commercialization promotes crop diversification, reducing dependence on a few crops and enhancing resilience to climate change and market fluctuations.
• Value Addition: Encourages processing and value addition of agricultural produce, creating employment opportunities and increasing farmer incomes.
• Global Competitiveness: In a globalized world, Indian agriculture needs to be competitive to participate in international trade and ensure food security.

The Economic Survey 2022-23 emphasized the need for promoting agricultural diversification and value addition to boost farmer incomes and enhance the competitiveness of the Indian agricultural sector.

Challenges to Commercialization

Despite the benefits, several challenges hinder the effective commercialization of Indian agriculture:

• Small Landholdings: The fragmented nature of landholdings makes it difficult for farmers to achieve economies of scale.
• Inadequate Infrastructure: Lack of adequate storage, transportation, and processing facilities leads to post-harvest losses.
• Weak Market Linkages: Farmers often lack access to reliable market information and are exploited by intermediaries.
• Risk & Uncertainty: Agriculture is inherently risky due to weather variability, pests, and diseases.
• Access to Credit: Limited access to affordable credit hinders investment in modern technologies and inputs.

Addressing these challenges requires a multi-pronged approach involving investments in infrastructure, strengthening market linkages, promoting farmer producer organizations (FPOs), and providing adequate risk mitigation mechanisms.