UPSC MainsECONOMICS-PAPER-II202510 Marks150 Words
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Q2.

Answer the following questions in about 150 words each: (b) What were the major impacts of 'commercialisation of agriculture' on Indian farmers during the pre-Independence India? Discuss.

How to Approach

The question asks for the major impacts of 'commercialisation of agriculture' on Indian farmers during pre-Independence India. The approach should involve defining commercialisation of agriculture in the colonial context, then discussing its various negative impacts on farmers, such as increased indebtedness, food insecurity, and exploitation. It is crucial to highlight the forced nature of this transition and how it benefited British imperial interests rather than Indian peasants. Conclude with a summary of its detrimental legacy.

Model Answer

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Introduction

Commercialisation of agriculture in pre-Independence India refers to the forced shift from subsistence farming, where crops were grown primarily for local consumption, to market-oriented production of cash crops like indigo, cotton, jute, and opium, driven by British colonial policies. This transformation, largely initiated post-1813 with the acceleration of the Industrial Revolution in England, fundamentally restructured India's agrarian economy. While ostensibly aimed at integrating India into the global economy, its primary purpose was to supply raw materials for British industries and generate revenue for the colonial administration, profoundly impacting the lives of Indian farmers.

Major Impacts of Commercialisation of Agriculture on Indian Farmers

The commercialisation of agriculture under British rule had far-reaching and largely detrimental impacts on Indian farmers, transforming their traditional way of life and leading to widespread distress.

  • Increased Indebtedness: Farmers were often compelled to take loans from moneylenders at exorbitant interest rates to cultivate cash crops, purchase seeds, and meet land revenue demands. When harvests failed or market prices crashed (due to global fluctuations), they fell into a vicious cycle of debt, often losing their land to moneylenders and becoming landless labourers.
  • Food Insecurity and Famines: The shift from food grains to cash crops significantly reduced the area under cultivation for staple foods. This led to frequent food shortages and devastating famines, as the local population had limited access to food grains, which were often exported even during crises. For instance, between 1893-94 and 1945-46, while commercial crop production increased by 85%, food crop production fell by 7%.
  • Exposure to Market Volatility: Farmers, whose livelihoods were previously insulated by self-sufficiency, became vulnerable to unpredictable international market price fluctuations for cash crops. They had no control over pricing, which was often dictated by British traders and planters, leading to low returns despite increased production.
  • Loss of Self-Sufficiency and Village Economy: Traditional self-sufficient village economies were disrupted as farmers became dependent on markets for both selling their produce and buying food. This undermined the intricate balance of local agriculture and associated rural industries.
  • Exploitation by Intermediaries: The system fostered a new class of intermediaries, including European planters, traders, and Indian moneylenders and landlords, who exploited farmers through oppressive contracts, unfair prices, and high rents or interest. The notorious Indigo Revolt of 1859-60 is a prime example of such exploitation.
  • Widening Rural Inequality: While a small section of rich farmers, traders, and moneylenders benefited, the majority of small and marginal farmers were pushed into deeper poverty and landlessness. This accentuated income disparities within rural society.

In essence, the commercialisation of agriculture was an externally imposed process that primarily served imperial economic interests, leaving the Indian peasantry impoverished and vulnerable.

Conclusion

In conclusion, the commercialisation of agriculture during pre-Independence India was a foundational element of colonial economic exploitation. While it integrated Indian agriculture into the global market, it did so at the heavy cost of peasant welfare. Farmers endured rampant indebtedness, devastating famines due to reduced food crop cultivation, and extreme vulnerability to market fluctuations. This transformation dismantled traditional agrarian structures, exacerbated inequalities, and created a legacy of rural distress that continued to challenge independent India.

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 of cultivating crops primarily for sale in the market rather than for self-consumption. During British rule in India, this was largely a forced transition to cash crops to meet the raw material demands of British industries.
Subsistence Farming
A system of farming in which farmers grow crops and raise livestock primarily to meet the needs of their own families, with little or no surplus for sale in the market.

Key Statistics

Between 1893-94 and 1945-46, the production of commercial crops in India increased by 85%, while the production of food crops fell by 7%. This stark contrast highlights the shift from subsistence to cash crop cultivation and its impact on food availability.

Source: R N College, "Commercialization of Agriculture During British Rule in India"

While precise overall figures for pre-independence agricultural debt are scarce, the National Sample Survey Organisation (NSSO) 59th Round (2003) revealed that 48.6% of farmer households were indebted, with the average outstanding loan per farmer household significant. This reflects a persistent issue rooted in colonial policies.

Source: NSSO 59th Round (2003) - Indebtedness of Farmer Households

Examples

Indigo Revolt (1859-60)

Peasants in Bengal revolted against European indigo planters who forced them to cultivate indigo on their most fertile lands, often through oppressive contracts and violence, rather than food crops. This resistance highlighted the coercive nature of commercial agriculture.

Deccan Riots (1875)

Farmers in the Deccan region of Maharashtra revolted against moneylenders and the British administration, primarily due to severe indebtedness caused by high land revenue demands and the collapse of cotton prices after the American Civil War.

Frequently Asked Questions

What were the main crops commercialised during British rule?

The main commercial crops included indigo, cotton, jute, opium, tea, and coffee. These were chosen based on the demands of British industries and global markets.

Did any Indian farmers benefit from commercialisation?

A small section of rich farmers, large landowners, and Indian traders who acted as intermediaries for the British did benefit by accumulating wealth, but the vast majority of small and marginal farmers suffered severe economic hardship.

Topics Covered

Indian HistoryEconomyAgricultureEconomic HistoryAgrarian Economy