UPSC MainsECONOMICS-PAPER-II202410 Marks150 Words
Q4.

Describe why farmers derived little benefits from the commercialisation of agriculture in pre-independence India.

How to Approach

This question requires a nuanced understanding of the impact of commercialization of agriculture in pre-independence India. The approach should focus on explaining how the existing land tenure systems, colonial policies, and market imperfections limited the benefits reaching the farmers. Structure the answer by first defining commercialization, then detailing the exploitative systems, and finally, explaining why farmers remained disadvantaged. Focus on specific examples like indigo cultivation and the impact of revenue systems.

Model Answer

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Introduction

The commercialization of Indian agriculture, a process gaining momentum in the 19th and early 20th centuries under British rule, signified a shift from cultivation primarily for subsistence to production for the market. While it led to increased agricultural output, the benefits were disproportionately captured by colonial authorities, intermediaries, and merchants. This was not a spontaneous process but a forced one, driven by the needs of the British industrial revolution. Consequently, Indian farmers derived limited benefits, often experiencing increased indebtedness and vulnerability. This answer will explore the reasons behind this limited benefit accrual to the farming community.

Land Tenure Systems and Exploitation

The pre-independence Indian land tenure system was characterized by various forms, each contributing to the limited benefits for farmers. The prominent systems included:

  • Zamindari System: Introduced by the Permanent Settlement (1793), it created a class of landlords (Zamindars) who had ownership rights but often exploited the actual cultivators. They extracted high rents, leaving farmers with little surplus.
  • Ryotwari System: While theoretically granting ownership to peasants, high revenue demands and rigid collection policies often led to indebtedness and land alienation.
  • Mahalwari System: A mix of both, it also resulted in exploitation by village headmen and revenue officials.

These systems, coupled with the lack of land ownership for most cultivators, meant that the increased production resulting from commercialization primarily benefited the landlords and the colonial government through land revenue.

Colonial Policies and Market Imperfections

British policies actively hindered farmers from fully benefiting from commercialization:

  • Discriminatory Trade Policies: India was treated as a supplier of raw materials and a market for British manufactured goods. High tariffs on Indian exports to Britain and low tariffs on British goods entering India stifled the growth of Indian agricultural industries.
  • Forced Cultivation: Crops like indigo and opium were often grown under coercion (Nila Jamai system in Bengal), forcing farmers to cultivate these crops at unfavorable terms, leading to widespread distress.
  • Lack of Infrastructure: Inadequate irrigation facilities, transportation networks (roads, railways), and storage facilities increased production costs and limited access to markets.
  • Money Lending Practices: The prevalence of exploitative moneylenders charging exorbitant interest rates trapped farmers in a cycle of debt, preventing them from investing in improved agricultural practices.

Impact of Commercialization on Different Farmer Categories

The impact of commercialization varied across different categories of farmers:

Farmer Category Impact of Commercialization
Large Landlords (Zamindars) Benefited significantly through increased rents and profits from commercial crops.
Tenants-at-will/Sharecroppers Highly vulnerable to exploitation; often received a small share of the produce and faced insecurity of tenure.
Small and Marginal Farmers Often forced into debt and land alienation due to high revenue demands and exploitative market conditions.

Limited Access to Credit and Technology

Farmers lacked access to affordable credit and modern agricultural technologies. The formal banking system was underdeveloped, and farmers were largely dependent on moneylenders. The introduction of new technologies was slow and often inaccessible to small farmers due to cost and lack of awareness. This limited their ability to increase productivity and benefit from commercialization.

Decline of Traditional Crafts

The influx of cheap manufactured goods from Britain led to the decline of traditional Indian crafts and industries. This resulted in unemployment and forced more people to rely on agriculture, increasing pressure on land and further depressing agricultural incomes.

Conclusion

In conclusion, while the commercialization of agriculture in pre-independence India led to increased production, the benefits were largely appropriated by the colonial state, landlords, and merchants. Exploitative land tenure systems, discriminatory trade policies, lack of infrastructure, and limited access to credit and technology collectively ensured that Indian farmers remained largely disadvantaged. This created a cycle of poverty and indebtedness, contributing to widespread agrarian distress and fueling social unrest. The legacy of this unequal commercialization continues to influence Indian agriculture even today.

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

Commercialization of Agriculture
The process by which agriculture shifts from being primarily focused on subsistence farming to producing crops for sale in the market, driven by profit motives.
Nila Jamai
A system prevalent in Bengal where indigo planters forced farmers to cultivate indigo by advancing them loans and then exploiting them through debt bondage.

Key Statistics

Between 1870 and 1914, India’s agricultural exports increased from approximately £21 million to £38 million, but the benefits were not equitably distributed among farmers. (Source: Bipan Chandra, India’s Struggle for Independence)

Source: Bipan Chandra, India’s Struggle for Independence

By the early 20th century, approximately 20% of the cultivated area in India was under commercial crops. (Knowledge cutoff: 2023)

Source: Various historical accounts and economic surveys

Examples

Indigo Revolt (1859-60)

The Indigo Revolt in Bengal was a direct consequence of the exploitative indigo cultivation system imposed by British planters. Farmers were forced to grow indigo on a significant portion of their land at pre-determined prices, leading to widespread resentment and ultimately, a peasant uprising.

Frequently Asked Questions

Did all regions of India experience commercialization in the same way?

No, the extent and nature of commercialization varied across regions. Regions with suitable climate and soil for cash crops like cotton, jute, and sugarcane experienced more significant commercialization, while others remained largely focused on subsistence farming.

Topics Covered

HistoryEconomyAgricultureAgricultural EconomicsColonial HistoryRural Development