UPSC MainsECONOMICS-PAPER-II202315 Marks
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Q11.

Explain the concept of ceiling on agricultural landholding in India. Examine its rationality with respect to equity and efficiency.

How to Approach

This question requires a nuanced understanding of land ceiling acts in India, their historical context, and a balanced evaluation of their impact on both equity and efficiency in agriculture. The answer should begin by defining land ceilings and tracing their evolution through different state legislations. It should then critically examine the arguments for and against these acts, supported by data and examples. A structured approach, discussing equity and efficiency separately, followed by an overall assessment, is recommended.

Model Answer

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Introduction

Land ceiling refers to the legal limit on the size of land that an individual or a family can own. Introduced in post-independent India, primarily in the 1950s and 60s, these acts aimed to address the skewed land distribution inherited from colonial rule and feudal systems. The core objective was to redistribute surplus land to landless laborers and marginal farmers, thereby promoting social justice and economic equality. However, the implementation and impact of these laws have been complex and often debated, with concerns raised about their effect on agricultural productivity and investment. The first such legislation was enacted in Uttar Pradesh in 1946, followed by similar acts in other states.

Historical Context and Evolution of Land Ceiling Acts

The impetus for land ceiling legislation stemmed from the concentration of land ownership in the hands of a few landlords, a legacy of the Zamindari system. The Community Development Programme (1952) and the Intensive Agricultural District Programme (1956) highlighted the need for land reforms to improve agricultural productivity and reduce rural inequalities. Different states enacted their own land ceiling acts, leading to variations in ceiling limits and implementation strategies. Key states included Uttar Pradesh, Bihar, West Bengal, and Kerala.

Rationality with Respect to Equity

The primary rationale behind land ceiling acts was to promote equity by redistributing land ownership. This was based on the following arguments:

  • Social Justice: Addressing historical injustices and reducing the concentration of wealth in the hands of a few.
  • Poverty Reduction: Providing landless laborers and marginal farmers with access to a productive asset, thereby improving their livelihoods.
  • Reduced Rural Inequality: Narrowing the gap between the rich and the poor in rural areas.
  • Empowerment of Marginalized Sections: Giving land ownership to historically disadvantaged groups like Scheduled Castes and Scheduled Tribes.

West Bengal’s ‘Operation Barga’ (1978-1984) is a notable example of successful implementation, registering sharecroppers and granting them security of tenure. This significantly improved the economic condition of bargadars (sharecroppers). However, the success varied significantly across states.

Rationality with Respect to Efficiency

The impact of land ceiling acts on agricultural efficiency is more contentious. Arguments in favor of efficiency gains include:

  • Increased Productivity: Small farmers are often more motivated and efficient in utilizing land resources compared to large landowners.
  • Improved Irrigation and Investment: Land redistribution can lead to increased investment in irrigation and other agricultural inputs by small farmers.
  • Reduced Underutilization of Land: Large landowners often leave land fallow or underutilized. Redistribution can bring this land into productive use.

However, several arguments suggest a negative impact on efficiency:

  • Fragmentation of Landholdings: Redistribution can lead to fragmented landholdings, making it difficult to adopt modern farming techniques and achieve economies of scale.
  • Disincentive to Investment: Fear of future land redistribution can discourage large landowners from investing in land improvement.
  • Litigation and Implementation Challenges: Land ceiling acts often faced legal challenges and were poorly implemented, leading to delays and corruption.
  • Reduced Supply of Land for Sale/Lease: Landowners often disguised ownership through benami transactions, reducing the availability of land in the market.

A study by the National Council of Applied Economic Research (NCAER) in the 1990s indicated that land ceiling laws had a limited impact on overall agricultural productivity growth.

Comparison of Land Ceiling Acts across States

State Ceiling Limit (Irrigated Land - per family) Ceiling Limit (Unirrigated Land - per family) Implementation Effectiveness
Uttar Pradesh 12.5 acres 25 acres Low
Bihar 10 acres 20 acres Moderate
West Bengal 7.5 acres 15 acres High (Operation Barga)
Kerala 5 acres 15 acres Moderate

Challenges in Implementation

Several factors hindered the effective implementation of land ceiling acts:

  • Benami Transactions: Landowners transferred land to relatives or fictitious entities to evade the ceiling limits.
  • Loopholes in Legislation: Acts often contained loopholes that allowed landowners to retain control over surplus land.
  • Weak Administrative Machinery: Lack of adequate administrative resources and political will hampered the implementation process.
  • Litigation: Landowners challenged the validity of the acts in courts, leading to lengthy legal battles.

Conclusion

Land ceiling acts in India were a well-intentioned attempt to address historical inequalities and promote social justice in rural areas. While they achieved some success in redistributing land and empowering marginalized sections, their impact on agricultural efficiency remains debatable. The acts were often hampered by poor implementation, loopholes, and legal challenges. In the current context, with changing land use patterns and the increasing importance of land consolidation, a re-evaluation of land policies is needed to ensure both equity and efficiency in the agricultural sector. Focus should shift towards strengthening land records, promoting secure land tenure, and facilitating land leasing markets.

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

Bargadar
A sharecropper or tenant farmer who cultivates land owned by another person and shares the produce according to a pre-agreed arrangement.

Key Statistics

According to a 2013 NSSO report, approximately 18.8% of rural households in India were landless.

Source: National Sample Survey Office (NSSO), 2013

As per the Agriculture Census 2015-16, the average landholding size in India is 1.08 hectares.

Source: Department of Agriculture, Cooperation & Farmers Welfare, 2016 (Knowledge cutoff)

Examples

Kerala Land Reforms

The Kerala Land Reforms Act of 1963-64 was a comprehensive land reform initiative that included land ceiling, tenancy reforms, and the abolition of intermediary tenures. It significantly reduced land inequality and improved the livelihoods of tenant farmers.

Frequently Asked Questions

Why did land ceiling acts fail to achieve their full potential?

Land ceiling acts faced challenges like benami transactions, loopholes in legislation, weak administrative machinery, and extensive litigation, which hindered their effective implementation and limited their impact.

Topics Covered

EconomyAgricultureLand ReformAgricultural PolicyEquity