UPSC MainsECONOMICS-PAPER-II201910 Marks150 Words
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Q1.

Account for the commercialisation of Indian agriculture during the second half of the 19th century and analyse its effects.

How to Approach

This question requires a historical understanding of the factors driving the commercialisation of Indian agriculture in the 19th century and a nuanced analysis of its consequences. The answer should begin by defining commercialisation in the Indian context. It should then detail the key drivers – land revenue systems, infrastructure development (railways, canals), global market forces, and changes in land ownership. Finally, it must analyze the effects, both positive and negative, on farmers, the economy, and social structures. A structured approach focusing on causes and effects is recommended.

Model Answer

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Introduction

The commercialisation of Indian agriculture refers to the shift from cultivation primarily for self-consumption to production for the market. While elements of commercial agriculture existed earlier, the second half of the 19th century witnessed a significant acceleration of this process, fundamentally altering the agrarian landscape of India. This transformation was inextricably linked to British colonial policies and the integration of India into the global capitalist economy. The period following the Sepoy Mutiny of 1857 saw a deliberate push towards creating a revenue-generating agricultural system, impacting the lives of millions of Indian farmers and reshaping the economic structure of the country.

Drivers of Commercialisation

Several factors contributed to the commercialisation of Indian agriculture during this period:

  • Land Revenue Systems: The introduction of systems like the Zamindari, Ryotwari, and Mahalwari systems incentivized farmers to produce cash crops to meet revenue demands. The high revenue demands forced many farmers into debt and dependence on moneylenders.
  • Infrastructure Development: The construction of railways (starting in 1853) and canals facilitated the transportation of agricultural produce to markets and ports, connecting previously isolated regions. This reduced transportation costs and expanded market access.
  • Global Market Forces: The Industrial Revolution in Britain created a demand for raw materials like cotton, indigo, jute, and opium. India became a major supplier, leading to the expansion of these crops.
  • Decline of Traditional Industries: The decline of Indian handicrafts and industries due to competition from British manufactured goods reduced alternative employment opportunities, pushing more people towards agriculture.
  • Changes in Land Ownership: The emergence of a class of landlords and intermediaries, particularly under the Zamindari system, facilitated the commercialisation process as they were more inclined towards profit-oriented agriculture.

Effects of Commercialisation

The commercialisation of Indian agriculture had far-reaching consequences, both positive and negative:

Positive Effects

  • Increased Agricultural Production: The focus on cash crops led to an increase in the overall production of certain commodities, contributing to economic growth (albeit primarily benefiting the British).
  • Development of Transport and Communication: The need to transport agricultural produce spurred the development of railways, roads, and irrigation infrastructure.
  • Integration with the Global Economy: Indian agriculture became integrated into the global market, exposing it to international price fluctuations.

Negative Effects

  • Increased Famine Vulnerability: The shift towards cash crops reduced the cultivation of food grains, making India more vulnerable to famines. The Great Famine of 1876-78, which claimed millions of lives, is a stark example.
  • Debt and Land Alienation: High revenue demands and fluctuating market prices led to widespread indebtedness among farmers, resulting in land alienation and the rise of a landless labour force.
  • Exploitation of Farmers: Intermediaries and moneylenders exploited farmers by charging high interest rates and manipulating prices.
  • Regional Disparities: Commercialisation was unevenly distributed, leading to regional disparities in economic development. Areas suitable for cash crops benefited more than others.
  • Decline in Soil Fertility: Continuous cultivation of cash crops without proper soil management practices led to a decline in soil fertility.

Comparative Analysis of Land Revenue Systems & Commercialisation

Land Revenue System Impact on Commercialisation
Zamindari Encouraged commercialisation as Zamindars focused on maximizing profits from cash crops. Led to increased land alienation.
Ryotwari Directly incentivized farmers to produce cash crops to meet revenue demands, but also led to indebtedness.
Mahalwari Village communities were collectively responsible for revenue, but the pressure to pay led to commercialisation and potential disputes.

Conclusion

The commercialisation of Indian agriculture in the second half of the 19th century was a complex process driven by colonial policies and global economic forces. While it led to increased production and infrastructure development, it also resulted in widespread exploitation, indebtedness, and increased vulnerability to famines. This period laid the foundation for many of the agrarian challenges that India continues to face today, highlighting the long-lasting impact of colonial economic policies on the country’s agricultural landscape. A more balanced and sustainable approach to agricultural development is crucial for ensuring food security and improving the livelihoods of Indian farmers.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Commercialisation of Agriculture
The process by which agriculture shifts from being primarily geared towards meeting the needs of the producer (subsistence farming) to being oriented towards producing crops for sale in the market.
Ryotwari System
A land revenue system introduced by the British in some parts of India where the revenue was paid directly by the peasant cultivator to the government.

Key Statistics

Between 1855-1860 and 1900-1905, the area under cotton cultivation in India increased from 2.5 million acres to 5.1 million acres, demonstrating the shift towards cash crops.

Source: Report on the Agricultural Situation in India, 1903

India’s share of world manufacturing output declined from 24% in 1750 to 2% in 1900, largely due to the deindustrialization caused by British policies, pushing more people into agriculture.

Source: Angus Maddison, Contours of the World Economy, 1–2030 AD (2007)

Examples

Indigo Rebellion (1859-60)

The Indigo Rebellion in Bengal was a direct consequence of the coercive methods used by indigo planters to force farmers to cultivate indigo, a cash crop demanded by British textile industries. This rebellion highlighted the exploitative nature of commercial agriculture.

Frequently Asked Questions

Was commercialisation of agriculture entirely negative?

No, while it had significant negative consequences, it also led to infrastructure development (railways, canals) and integrated India into the global economy. However, the benefits were largely skewed towards the British and a small section of Indian landowners.

Topics Covered

HistoryEconomyAgricultureBritish IndiaEconomic History