Pre-reforms Indian economy

Land reforms:
agricultural development, institutional reforms are equally needed in the same way as technological advancement
Overall progress of agricultural sector had received a severe jolt for ages owing to existence of varied problems such
as absentee landlordism, feudal relations, insecurity in the ownership of land, charging of exorbitant rent, prevalence
of unprofitable holdings, subdivision and fragmentation of land, and so on. Bringing about considerable raise in output
to feed the growing population and attainment of overall growth in the agricultural sector are impossible tasks unless
these institutional defects are remedied. Thorough institutional reforms are inevitably needed to get rid of these defects
and make agriculture a progressive occupation.

Meaning of land Reforms

Measures such as provision of land ownership to cultivators providing security of holding, fixation of fair amount of
rent, consolidation of small holdings and making them economic holdings, etc, may establish a milestone in the task
of laying a firm foundation for development of agricultural sector. Such institutional reforms are aptly called "land
reforms”.
Basic aim of land reforms is to consolidate holdings in order to attain agricultural progress by way of raising the
output and to make holdings secure by way of providing ownership of land to the actual cultivators Therefore. the
concept of land reforms involves two types of institutional changes. One relates to distribution of landed assets and the
other to size of holdings. Land reforms have been adopted as official policy in India taking into consideration the
necessity of elimination of defective land holdings structure, creation of economic and profitable holdings by avoiding
subdivision and fragmentation of land as far as possible, providing security of land to cultivators and doing away with
the system of collection of exorbitant rent.
Thus, land reforms are a way to attain an end, the end being maximisation of agricultural output and overall progress
to be brought out along with equal distribution of land. To be precise the aim of land reforms is of following two
types.
i) Social aim
ii) Economic aim
The social aim consists of attaining equality in land ownership and providing security of holding to the cultivator by
making him the owner of the land. Attainment of raise in output is the economic aim.

Objectives
Tenancy systems such as Zamindari system, absentee landlordism, etc, have largely placed restrictions on the
development of agricultural sector. Tenant will not be normally motivated to adopt measures to raise output as well as
to undertake efforts for long run development of land when he is cultivator for namesake while the land belonged to
others. If incentivised to develop his permanent of land he will be the cultivator is provided with ownership proudness
of possessing the own property. To put it in the words property with the of Sir Arthur Young, Give a man the secure
possession of a bleak rock and he will turn it into a garden; give him a nine year's lease of a garden and he converts it
into a desert." Unless defective landed property relations are eliminated, advancement of agriculture will prove to be
an impossibility. Thus, along with other institutional changes, land reforms measures have been used as official
weapon to bring an end to defective land holding structure

The following are the major aims of land reforms programme.

1, Removal of Intermediaries: Removal of intermediaries in landed property relations is the most important aim of
land reforms. This measure consists of abolition of. Feudalism Zamindari system, absentee landlordism, etc.
2. Security of Holding : Providing security of holding to the cultivator is another aim. The object is to create great
interest among cultivators in agricultural operations

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3. Equal Distribution of Land : Equal distribution of land is most essential to secure economic and social justice to
the farming community.
4. Fixation of Rent: Rent is to be fixed legally. Prevention of collection of unauthorized rent and restricting
confiscation of land are the other aims.
5. Consolidation of Holding: The other major aim consists of and consolidation of holding by way of overcoming
subdivision fragmentation of land. This will go a long way in making the holding profitable ones.
All these aims constituted a part of broader objectives of planning in India. Economic planning was brought into force
in 1951 with the purpose of formulating and implementing necessary policies aimed at attainment of economic growth
and establishment of welfare state. Basic goal of planning in India is to bring about social justice along with increase
in output. This aim will not materialise if equality is not accomplished in the ownership of wealth and income.
Land reforms were implemented as an official programme in India in 1951 with the objective of development of
agriculture and in bringing about equality in land ownership as far as possible.
Scope of land reforms is as follows.
i) Abolition of intermediaries,
ii) Reforms in tenancy System.
ii) Fixation of Ceiling on land holdings, and
iv) Reorganisation of landed assets through consolidation of holdings and by way of prevention of subdivision and
fragmentation we shall now discuss these issues in detail.
I. Elimination of Intermediaries
At the time of attainment of Independence, agricultural sector in India was disorganised to the maximum extent. When
land owner was a certain person, actual cultivator was the other. Land was in the ownership of the government. There
prevailed both the system of land being leased out to the tenant directly by the government and also through the
intermediary. The cultivator had to pay a part of crop as rent. Tenancy handed out to a cultivator may be temporary or
permanent based on fulfillment of certain conditions.
This type of intermediary consisted of three types.
i) Zamindari system,
ii) Rytawari system, and
ii) Mahalwari system
1. Zamindari System Under this system, land under the ownership of government was given to one individual or a
few persons who were joint holders. The land thus leased out by the government used to be given for rent by
landholders or Zamindars to cultivators. A certain part of the crop, usually half of it was to be given to landholders as
rent. Ninety percent of the crop obtained as rent had to be given to the government. To put it in another way, in the
Zamindari system, landlords acted as intermediaries between the government and cultivators
This system was introduced by Lord Curzon in 1793 in Bengal. Revenue collectors preformed the job of collecting
land revenue. But revenue collectors were made landlords after Zamindari system came into operation. Zamindari
system consisted of two types. They were: permanent settlement, and temporary settlement.
In permanent settlement, payment of land revenue was being fixed on a permanent basis. This system prevailed in
Bengal, Bihar, Odisha, Assam and certain parts of Tamilnadu. On the other hand, in temporary settlement, land
revenue was calculated for a period of about 20 to 40 years. This system was in force in Uttar pradesh, Madhya
pradesh, Rajasthan and Punjab.
2. Rytawari System

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Under this system, cultivators used to get land for rent directly from the government, and were paying land revenue to
the government. Hence there were no intermediaries in this system. Rytawari settlement for the first time came into
force in Madras in 1792. In this system, the tenant had the right to sublet the land. Since he was making payment of
land revenue directly to the government, he was considered to be landholder. Land revenue was fixed for a period of
20 to 30 years. Since tenants could sublet lend to others, features of zamindari system prevailed in this system too.
Rytawari tenure prevailed largely in states of Maharashtra, Gujarat, Tamilnadu and Assam
3. Mahalwari System
Under the Mahalwari system, entire e land land in in a village was Jointly held by the people of that village. Members
of village community had the responsibility of paying land revenue to the government individually and Jointly. Land
revenue was usually fixed for a period of 40 to 50 years, and it was being revised after this period. However, fixation
of land revenue, its payment and issues related to it differed from region to region. Mahalwari system existed in Uttar
Pradesh, Punjab and parts of Madhya Pradesh.
The land tenure system which was in existence in India in different forms was defective in many ways. As land was
the asset of others, cultivators did not evince permanent interest in the development of land. Equal share in the crop
was paid to government and to the land holder in the form of land revenue Tenants were finding it difficult to
undertake land development works in the remaining part of the crop. They lacked any interest to carryout development
works in this defective system, and there was absolutely no scope for raising the output. Many a time land was taken
back from cultivators as it was not leased out on a permanent basis. Tenancy rights lacked certainty. There was no
equality in handing out land for rent and this resulted in many farmers getting only very small pieces of land and they
led a miserable life. A large number of farmers led life as agricultural labourers. In Zamindari system, existence of
two classes of landholders and cultivators was naked in its presence Landholders were getting rich without any effort
while cultivators were pushed to the jaws of penury.
The task of abolition of intermediaries was accorded much importance in the post-independence period. Landed assets
reforms committee of the congress party in 1948 had opined that "intermediaries should have no place in India's
agricultural economy; land should belong to the tiller.'" Although a few measures were already afoot for abolition of
intermediaries. Their actual abolition started in 1948. Legislation was brought into force pertaining to it in all states
starting with Madras Statutes were implemented relating to abolition of intermediaries till 1954. As a result of this
task, about two crore cultivators were enabled to obtain ownership of land
Compensation was paid to intermediaries and their intermediary rights were abolished. The criterion for this
compensation differed among states. What was considered as criterion for payment of compensation was land revenue
in certain states, market value of the land in some other states and net income of land lords in yet other states.
Abolition of intermediaries was a bold step in attainment of agricultural progress. The system of tenants themselves
making payment of rent to the government came into existence. and the earlier system of land lords exploiting the
cultivators by taking rent in excess of land revenue came to an end. Tenants became landholders and they began to
take invincible interest in the efforts for permanent development of land and raising the output
II. Reforms in the Tenancy System
Although abolition of intermediaries could pave way for providing land to tenants it might not be able to completely
eliminate the problem of tenancy system. Big landholders may not be in a position to cultivate the entire land out a on
rent. Leasing out of land necessitates is inevitable handing when minors, cultivation widows, unmarried women,
mentally disabled on the persons, and so on. Placing an stringent restrictions on leasing out impossible measure when
the conditions mentioned above are tenancy system had taken into consideration In this backdrop, tenancy system had
to be allowed under inevitable circumstances, and necessary in it. measures have to be undertaken to overcome defects
inherent in it.
The programme of tenancy reforms consists of three factors which are as follows
i Control over rent,
ii) Security of holding, and
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ii) Provision of ownership rights

In the pre-independence period, the system that prevailed was to pay more than half of the crop as rent and it was to be
paid only in the form of grains. During the first five year plans, measures were taken to fix the rate of rent. States were
given guiding principles to fix rent which should mot exceed 20 percent or 25 percent of the crop. Followed by this,
States implemented laws for rent control and fixation of rent. However, rates of rent differed from state to state. Rates
of rent were fixed for different lands based on fertility of the soil, irrigational facilities, payment of land revenue, etc.
In the way of granting security of holdings, legislation was brought into force involving three major aspects. These
measures were aimed at preventing eviction of tenants from land. These measures were:
i ) If the landlords were to take back the land it should be only for the purpose of cultivation on their own.
ii. Even in cases where land is taken back, a certain portion of land had to be left for the tenant.
iii Tenant should be evicted as per law only when he fails to pay rent, when he inflicts any loss to the land and if he
sublets it to others
The law framed aiming at granting of security of holding established a milestone in tenancy reforms In majority of
states, cultivators have been provided with ownership rights. In certain states provision has been made in the law for
cultivators to purchase the land from landlords which they were cultivating. Consequent upon these measures tenancy
system has been brought to an end completely in the states of Gujarat, Maharashtra, Kerala, Himachal Pradesh and
Jammu and Kashmir. About 40 lakh tenants have obtained ownership rights pertaining to about 37 lakh hectares of
land
III. Ceiling on Land Holding
Fixation of ceiling on the extent of land the cultivators can possess has been a salient feature of land reforms
programmes in India. This programme has been pursued with the pious aim of attaining equality in the possession of
land in the same way as the purpose of elimination of extreme inequalities in the possession of other assets and wealth.
While some farmers possess very large holdings, certain other farmers have small and very small holdings and pursue
cultivation in an uneconomical way. This had been the fundamental feature of India agricultural system. It has been a
major reason for generation of grave inequalities in rural parts and their ballooning day by day.
Top 3.2 percent of rural families own 10.1 hectares of land on an average and possess 28.2 percent of total agricultural
land, whereas 54.8 percent of rural families own only one hectare of land on an average and possess only 7.6 percent
of the total agricultural land. This factor vividly reflects the existence of skewed agricultural system which is
unjustifiable to the core. This has resulted in majority of the farmers remaining poor and only a handful of farmers
getting rich. Removal of this inequality as far as possible and handing out land to landless people has been the avowed
purpose of fixation of ceiling on land holding.
While fixing the maximum the limit, family has been considered to be a unit. A Family consists of husband, wife and
minor children. If the number of members of the family exceeds five, each member is entitled to possess land in
excess of maximum limit. However, in such a situation, extent of land a family may possess should not exceed two
times of the maximum limit
As per the law that prevailed earlier, ceiling was fixed on the basis of individual instead of family. According to it
each member of the family was entitled to possess land upto the maximum limit. Thus the size of land that a family
could own was being determined on the basis of the number of its members. Taking into recognition that this criterion
led to severe inequalities, law was duly amended to fix ceiling basing the family as a unit
According to the new law, maximum limit of land in which a maximum of two crops could be raised and which has
irrigation facility in all the seasons will be 10 acres to 18 acres. Maximum limit for the land which has irrigation
facility and in which only one crop would be grown was 27 acres. And ceiling limit for all other types of land was 54
acres.
Fixation of ceiling on land holdings involves the following two factors.

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i) Barring any person from possessing land above the maximum limit in future.
Il Taking back the land from those in possession of maximum limit at present and to distribute it among the
landless and small farmers.
Compensation pertaining to surplus land confiscated will be on the basis of market value of the land.
Till March 3 1, 2018, 73.36 lakh acres of land has been declared as surplus of which 64.97 lakh acres of land has been
taken over by the government. The area distributed among the beneficiaries out of this land has been 54.03 lakh acres,
and the total number of beneficiaries stood at 57.46 lakhs. Of the total area of land taken over by the government but
not distributed. about 4.80 lakh acres is under litigation and about 3.60 lakh acres of land is uncultivable
IV. Consolidation of Holdings
Consolidating the fragmented land and making it an economic holding has been a major item in India' s land reforms
programme. Consolidation implies bringing together the land belonging to a farmer which is scattered in different
places and making it a compact holding situated in one particular place. Consolidation is attained when all the land in
a village is brought together and distributed to farmers in one place in accordance with their share.
Considerable progress is accomplished in the area of consolidation. About 58 million hectares of land has been
brought under consolidation measure till 2011. However, the progress differs from state to state. Progress achieved by
Punjab in this front has been far reaching. Consolidation of holdings has successfully come to an end in the states of
Punjab and Haryana.

B. Green Revolution
Indian agriculture has undergone transformation to a considerable and unimaginable extent since the middle of 1960s
Efforts have been seriously undertaken to bring about substantial rise in agricultural output by adoption of several
measures such as use of high yielding varieties of seeds, chemical fertilizers, insecticides, machineries etc, and by
adopting intensive cultivation with the help of better and improved irrigation facilities. Role of advanced agricultural
research has been no lesser in this end. These efforts in nutshell have two aims, one, to transform India into a self-
sufficient country in the food front, and two, make Indian agriculture a vibrant one where even small and marginal
farmers may treat it as remunerative.
Meaning of Green Revolution
An avowed programme of bringing about substantial rise in agricultural productivity and output by effectively
utilizing high yielding varieties, irrigation facilities, chemical fertilizers insecticides, advanced techniques of
production, and so on is popularly known as green revolution. The programme in its essence involves dryland farming
and multiple cropping too. This method of farming has been christened so with great expectation that it should bring
about far-reaching transformation by significantly jacking up agricultural output and enabling the country getting rid
of dependence on external sources. To put it in another way, effecting rapid rise in agricultural production through
modern and scientific methods of farming is the sum and substance of green revolution.
High yielding varieties are usually dwarf plants and yield crops in a very short span. Application of fertilizers of a
large scale is needed to enable them to yield better crops.
Intensive cultivation and multiple cropping are sine-qua- non for increase in output. Better irrigation system is most
essential in this end. Incessent efforts have been undertake to bring about expansion in irrigation facilities by way of
digging of tubewells, use of pumpsets and repairs and desilting of tanks In dry belts lacking irrigation facilities, quick
yielding varieties of seeds are made use of in cultivation. Mechanisation has moved to the center stage
Intensive agricultural development programme was adopted in 1960-61 in seven chosen districts in the country The
purpose behind this was to get more yield by concentrating in these areas all the techniques of better farming. With
initial successes, the programme was extended to more and more areas. By 1974-75 it was in implementation in about
30 districts
Ingredients of Green Revolution
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Various methods which the technique of green revolution contains are described here under.
1. Adoption of High-yielding varieties of Seeds: A large number of varieties which are high yielding have been
brought into use. This may be vastly found as regards the crops of wheat, paddy, Jowar, cotton and oilseeds, Salient
feature of these varieties is they yield output in a quick span of time. They are known for giving higher returns in tune
with irrigation facilities and application of chemical fertilizers. In 1966-67, about two million hectares of land was
brought under cultivation of this type of varieties which rose to about 60 million hectares in 2001-02.
2. Application of Chemical Fertilisers: Application of chemical fertilizers of a large quantity is the most essential
factor to get higher rate of returns. Many kinds of organic fertilizers containing the best organic matters are being
produced on a large scale. In case of domestic scarcity, they are imported from other countries. Application of
chemical fertilizers which was only 13 lakh tonnes in 1950-51 went up to 1300 lakh tonnes 1 period 200-102 and to
2300 lakh tonnes in 2018-19. In the same application of fertilizers per hectare of land has risen from 0.5 kilograms to
40 kilograms and then to 46.8 kilograms
3. Provision Improved Irrigation Facilities : Better and adequate irrigation facilities are more needed for success of
intensive cultivation and for high yielding varieties to give higher returns. Measures were continuously taken to
expand irrigation system from different sources as far as possible during the five year plans. Owing to these efforts,
area under irrigation has gone up from 33.6 million hectares in 1965-66 to 96 million hectares in 2001-02 and to about
104 million hectares in 2019-20
4. Mechanisation : Pursuance of multiple cropping is needed in green revolution and application of technique which
lends help to save time is most essential. It necessitates modern and most efficient type of machineries and equipments
instead of obsolete equipment’s and implements. Tractors, weeding implements, pump sets, crop cutting equipments
etc, are such machineries. Mechanisation is now rampant in all stages of agricultural operations
5. Multiple Cropping : Another major factor which the technique of green revolution contains is to raise agricultural
output by pursuing multiple cropping system. Extension of artificial irrigation facilities would serve a supplementary
role in this task. High yielding varieties give returns in a very quick pace and because of this it would be possible to
raise three of four crops in a year.
6. Plant Conservation : High yielding varieties of plants are an easy prey to locusts, and application of insecticides
and pesticides is needed to protect the plants
7. Extension of Financial Facilities : Provision of finances at a comparatively low rate of interest, on time and in an
adequate quantity is no less important in making green revolution a reality Necessary measures have been sincerely
pursed to extend financial facilities through commercial banks, cooperative institutions and regional rural banks.

Benefits of Green Revolution

Green revolution has secured a large number of benefits and it has undoubtedly been of considerable help in
transformation of Indian agriculture
1, Hike in output : Agricultural output has gone up tremendously as a result of green revolution. Food grains output
had risen from 72 million tonnes to 135 million tonnes between 1966-67 and 1981-82, that is an increase of 63 million
tons in a period of fifteen years. In contrast, it had risen by just 2 1 million tonnes in the fifteen years period between
1950-51 and 1965-96. Food grains pro duction had registered increase of 51 million tones, i.e, from 135 million tons
to 186 million tonnes in the fourteen years period between 1981-82 and 1992-96. This extraordinary achievement
undoubtedly has been the result of green revolution. Considerable amount of rise has taken place in case of
commercial crops too. But the success of the technique of green revolution may be vividly discerned in production of
wheat. Output of wheat which stood at 10.4 million tons in 1965-66 rose to 60 million tons in 1998-99.
Led by substantial increase in output, what has been materialisd is drastic cut in imports, ability to export many
agricultural commodities and attainment of self-sufficiency in food grains production
2. Rise in productivity : Green revolution has been credited with having increased he productivity of land
considerably largely by means of application of chemical fertilizers voluminously and adoption of improved methods
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of cultivation. Average productivity in food grains output has gone up from 783 kilograms per hectare in 1967-68 to
1450 kilogams in 1995-96 Hike in productivity is more visible in wheat production. In the period said above, per
hectare productivity as regards wheat production has gone up from1 030 kilograms to 1650 kilograms
3. Modernisation of agriculture : Modernisation of agricultural sector has become a possibility due to application of
different types of new machineries at various stages of farming. Indian agriculture which had remained in an archaic
condition for centuries together has been commercialized in a span of a very few years. A wholesome transformation
has taken place in the agrarian community as a result of large scale mechanization and thrust in scientific cultivation.
4. Spurt in employment opportunities : Considerable number of job opportunities have been created as a result of
multiple cropping, intensive system of cultivation, execution of irrigation projects, etc. The role of green revolution in
reducing disguised unemployment and seasonal unemployment has been extraordinary indeed
5. Growth of incomes : Green revolution has undoubtedly brought about substantial rise in income of cultivators as
well as agricultural labourers. Led by this, standard of living has considerably risen in the rural economy

Criticisms
Itis no exaggeration to state that green revolution has caused areal and long standing transformation in the agricultural
sector. To mention a few of its advantages, food grains production has gone up by 300 percent 1965-66 and 2001-02,
and cultivated area which enjoyed in a period of thirty six years between irrigation facilities rose from 22.6 million
hectares in 1950-51 to 9 million hectares in 2001-02. Its role is all the more memorable in turning the Indian economy
into a self-reliant food front and in resulting a sharp rise in rural incomes.
Despite far-reaching changes it has caused and incredible advantages it has provided, green revolution has been
criticized on many grounds. The programme has been excoriated as a failed one and has brought into being only a
handful of advantages in the midst of long ranging disadvantages such as introduction of high cost farming and
growing division between affluent farmers and small cultivators. An indepth analysis of green revolution makes us
understand that the problems it has caused are really more than the benefits it has provided
The following are some of the chief drawbacks of green revolution practised in India which has been hailed as a very
big reformative measure
1. Increase in regional inequalities : Green revolution as a programme had its concentration only in a few states or
regions such as Punjab, Haryana, Western Uttar Pradesh Maharashtra and Parts of Andhra Pradesh, Karnataka and
Tamilnadu. Output could register a voluminous increase as a result of pursuit of new techniques of production only in
a few states and regions. For instance, while average yield of wheat per hectare in India was 1477 kilograms in 1987-
88, it was 2537 kilograms in Punjab, In the same year, average production of rice per hectare was 1317 kilograms in_
India, and 3362 kilograms in Punjab Haryana and Tamilnadu which produced 2265 kilograms and 2210 kilograms of
rice per hectare were in the second and third place respectively after Punjab. A large number of regions which have
been experiencing food shortage are dependent upon few districts which are granaries of food grains In 1987-88,
47.28 million tonnes of rice were procured of which 52 percent, i.e, 24.56 million tonnes quantity was procured from
only one state of Punjab. Two thirds of the rice procured came from the two states of Punjab and Haryana. Of the total
procurement of wheat in that year, 58 percent or 31.99 million tonnes was the contribution of Punjab. In the total
quantity of wheat procured, 98 percent came from three states of Punjab, Haryana and Uttar Pradesh. Almost the same
situation prevails even at present. Green revolution has resulted in affluence for a few states and pushed many states to
the brink of poverty and in the process has its own share in aggravating regional inequalities.
2. Partial Spread : The programme of green revolution has really transformed the States of Punjab and Haryana into
granaries of wheat. From the point of view of crops too, green revolution has been partial. Spread of green revolution
is more pronounced as regards wheat and to a lesser extent in the case of rice. Its spread to commercial crops like
cotton and oil seeds is minimal, and its in fluence has been negligible as far as other crops are concerned. In fact,
production of oil seeds has actually slid during green revolution, and instead its exports have gone up. For instance,
import of oil seeds which was of the value of 23 crore rupees in 1968-69, went up to a massive amount of 620 crore
rupees in 1987-88. This factor highlights that green revolution has not been of great assistance in jacking up output
and in attainment of self-reliance.
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3. High cost : Agricultural output has undoubtedly risen to great heights, but it has been at a very high cost. Prices of
chemical fertilizers, insecticides, machineries and petroleum based products have risen to astronomical heights, and
the unbearable cost of production has made the life of farmer a miserable one. International prices of these materials
are also sky-rocketing. Government has come in a big way to subsidise them in order to make them purchasable
4. Nurturing of capitalist agriculture : A common charge has been green revolution has led to capitalistic
agriculture. Massive expenditures are needed to buy machineries, better variety of seeds, organic fertilizers,
insecticides and pesticides, and so on as well as for generation and utilization of irrigation facilities. Only rich and
affluent farmers may be in a position to incur expenditure of this magnitude, and it 1S beyond the reach of poor
peasants. This has led to a situation where green revolution has remained to be a revolution for prosperous farmers and
miserably failed to be a holistic transformational measure. Green revolution has been blamed to be inhuman in nature
5. Spike in individual inequalities : Green revolution has led to rise in individual inequalities. Of late two different
classes of people have taken birth in the rural sector, one of prosperous farmers possessing massive wealth and sources
of income, and the other of small farmers and landless workers. Benefits associated with modern and large scale
agriculture such as irrigation facilities, institutional credit of a very high magnitude, etc, are being cornered by
prosperous farmers. Green revolution has provided opportunities for farmers owning more land to amass wealth and to
become more prosperous. Consequently, individual inequalities in distribution of wealth and income have been on a
rising scale continuously.
6. Rural unemployment : Green revolution has contributed in no less a measure to the gravity of rural
unemployment. Need for labour has dipped at all states and this has led to severe unemployment in the farm sector.
Multiple cropping and intensive method of cultivation have undoubtedly bolstered job opportunities. Nevertheless, the
other side of the picture is mechanization has replaced labour on a very great scale and has thrown lakhs of already
employed persons to the jaws of unemployment
7. Dependence on foreign countries : Fructification of green revolution depends to a very large extent on the import
of machineries, technology, chemical fertilizers, insecticides, and so on from foreign countries. To take an example,
value of import of chemical fertilizers which was Rs. 133 crores in 1968-69 jumped to Rs. 3,246 crore in 1994-95 and
to Rs.33,706 crore in 2016-17. External debt and dependence have gone up considerably in the process

Conclusion
Partial spread as regards crops and regions has been billed as the major reason for limited success of green revolution
However, based on this very factor arguments have been put across in favour of green revolution. The summary of
these arguments is that concentration of efforts in only a certain pockets for expansion of output and limiting the
application of new technology only to certain crops and certain areas could give an added result. At any rate, the credit
for having taken the country towards self-reliance in food grains output unequivocally goes to green revolution
Green revolution is based on backward social fabric. Its success is determined on the criterion of rise in output instead
of social necessity. It is this factor which has led to social crisis resulting from inequality, instability and
disorganization. An offshoot of this has been growing inequalities in rural economy along with aggravation of social
unrest. Flow of money to foreign countries by way of import of advanced agricultural technology has had telling effect
on the economy. Any poised analysis of all these factors may lead us to a pessimistic conclusion that green revolution
has been neither green nor a revolution.
In this backdrop, commendable and extraordinary contribution of green revolution to rise in output has to be admitted;
and it should be made a movement sans problems, it should be operationalised encompassing all regions of the
country and all crops. Even small and marginal farmers should be enabled to reap benefts out of green revolution.
Only then the programme of green revolution will be admirable and can come out of blemish of having introduced
capitalistic agriculture.

C. Agricultural Marketing in India

Marketing of products is a very important and final stage in production system. Production activity could take place on
a continuous basis only when produce is sold and a remunerative price is secured. In this backdrop, marketing

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operations have a remarkable and paramount place in the agricultural sector Subsistence agriculture prevailed in India
before the middle of the nineteenth century. That is, farmers themselves used to produce all the commodities hey were
in need of and in the required quantity. Because of this, agricultural marketing carried no importance at all and it was
not in need of too.
But subsistence agriculture has now changed into commercial farming. Farmers usually produce a large volume of
food grains of different kinds, oil seeds, and commercial crops. Like in other sectors, in agriculture too the desire
among producers is to grow more, to secure better price and to enhance income. It is for this reason, agricultural sector
is in need of an efficient and effective marketing system: Such a marketing network should be in a position to secure
remunerative prices for the produces the farmer sells
Marketing involves all operations beginning from transportation of commodities from places of production till the job
of delivering them to final consumers. In other words, procuring the produces for marketing, transporting them to
market places, storing them in warehouses till they are sold, grading and standardizing them and their weighment or
measurement while selling constitute marketing operations
Types of Agricultural Marketing in India
The following five major types are found in Indian agricultural marketing
1. Village Markets : Village market is one which finds its existene in a small village. Exchange transactions between
buyers and sellers of the village take place in this market
2. Primary Wholesale Markets : Primary wholesale markets exist near production centres of agricultural
commodities as well as in big towns. Producer farmers sell a major part of their produces in this market. In these
markets, transactions usually take place between farmers and traders. Traders buy agricultural produces from farmers.
3. Secondary Wholesale Markets : Secondary wholesale markets are usually located at district centres or major
trading centres or at the meeting points of railways. Major part of the commodities that arrives to these markets is
from other markets. A large volume of transactions in these markets is carried out between village traders and
wholesale traders. The produce bought and sold at secondary wholesale markets is of a very large volume. Therefore,
special agents who can undertake different types of marketing jobs will have a dominant role in these markets. Chief
among them are commission agents brokers and weighmen.
4. Terminal Markets . Terminal market is One in which product is ultimately sold to consumers or processors Or
assembled for exporting. Such markets are located in major cities like capital cities or coastal harbours. Traders are
well organized in these markets and they use modern methods of rarketing.
5. Seaboard Markets : Seaboard markets are those markets which are located in coastlines and carryout the job
mainly of exporting and importing commodities. In India, markets existing in Mumbai, Chennai and Kolkata are some
of the examples for this type of market.
Defects of Agricultural Marketing in India
Agricultural marketing in India is known for defect inherent in it and the problems it has to face at every stage. In a
large number of cases produce is sold soon after the harvest is over and at villages or production centers, and at a very
low and unremunerative price. Distress sales which prevail in Indian agriculture even at the present day and to a very
large extent have no less a role in keeping Indian farmer in a state of abject poverty. Selling of commodities to money
lenders and commission agents at a low price for settlement of debt, inability on the part of small farmers to convey
products for sale to market centres owing to lack of transport facilities, fraudulent practices adopted in markets are
only a tip of the iceberg
Following are the major problems haunting the agricultural marketing operations in India.
Distress sales: Majority of farmers are small and marginal and they are indebted to the core. Because they are placed
in an unenviable situation of selling the produces at Cheap price to money lenders and traders as it an soon as
impossibility harvest is a on their part to postpone selling till a period where better prices over. Their weak financial
position makes are obtained. If a small amount of marketable surplus remains after settlement of debt, the farmer finds
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it difficult to store it till he may geta better price. This type of precarious situation is the definite outcome of very weak
economic condition of agriculturists Poverty of farmers and indebtedness has a major role in making agricultural
marketing unorganized and defective to the core.
2. Deficiency of storages: Facilities for storing products lacking in villages. Deficiency of facilities for storing the.
produces till the time they can earn a lucrative price leads to are ruination of the produces by mice, rodents and pests.
Rough estimates reveal that more than 15 percent of the produce is lost in this way. Deficiency of storage and
warehousing facility has harmed Indian agriculture on a vast scale
3. Lack of conveyance facilities : Deficiency of roads linking rural parts with towns and market centres is a glaring
problem. Most of the roads in existence are not in a good condition, and they fail to be all-weather roads. Conveyance
turns out to be impossible through these roads in rainy season. Scarcity of vehicles too haunts very much.
Transportation charges are unwieldy on the part of small and marginal farmers Consequently, leave alone small and
marginal farmers, even certain section of rich farmers find it difficult to convey produces to market centers. This
pushes the farmers to the pathetic situation of selling the produce at throw away prices to traders and commission
agents in villages and at production points.
4. Exploitation from middlemen : Exploitation by middlemen at mandis is at its height. Brokers or agents work as
middlemen between farmers and buyers on issues relating to price fixation and selling. A considerable part of the price
earned by the farmer is taken away by middlemen. Role of middlemen is visible at many stages from conveyance of
commodities from villages and till they are sold at mandis. As a result, there will be huge gap between the actual price
of the produce and the price the farmer gets ultimately. Middlemen or brokers have grown themselves into an
organized part in the marketing system and they hold an indomitable sway over marketing operations:
5. Malpractices in the market: Malpractices are largely inherent in weighing and measurement of the produce.
Inspite of clear orders and instructions by the government to use standard measures of weighing and measurement,
traders adopt fraudulent practices and deceive gullible farmers. Measuring method has almost disappeared, and
fraudulent weighing system has taken deep roots
6. Absence of grading and standardisation : System of grading and standardization of agricultural produces is
conspicuous in its absence. Consequently, commodities of different grades and qualities are sold without being graded
and standardised. In such a situation, farmers will be deprived of getting a fair price for the produces of best quality.
Any relationship between the produce, quality and price disappears completely and the farmers who are keen in
producing quality products will be discouraged.
7. Lack of market information : Information relating to ruling prices, changes in the market, market centres with
great demand, supply and demand situation, policy of the government etc, is not sufficient to bestir farming activities
as well as to bring awareness among agriculturists to earn profitable returns for their produce, Information at present
no doubt is disseminated through new papers, radio, handbills, etc. However, it is not enough to reach the scattered
and illiterate agrarian community. This results in dependence of farmers on the information provided by money
lenders, traders , commission agents, brokers and the like, and they are deceived in most of the cases.
Remedial Measures
Successive governments both at the center and states have come out with various measures which are far reaching in
nature to make agricultural marketing operations farmer-friendly and to enable the producer to earn an attractive price
for the commodities. However, complete remedy is still a mirage
Certain measures may be advanced to overcome the defects of agricultural marketing which persist till the present
day.
1. Sufficient storage facilities : What is most needed is sufficient storage facilities in rural areas to avoid ruination of
the produce from pests and rodents at the threshing floor and to protect it from getting rotten under heavy rains.
Storages are most essential to store and protect the commodities till such a period when they get better and fair prices.
Commercial banks co operative institutions and government should extend financial assistance in a large measure for
construction of storages Individual farmers may be encouraged to build their own storages or else, storages of a very

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large scale may be constructed at central and most suitable places and farmers of surrounding places may be made to
utilize the facilities.
2. Better transportation system : Development of a vibrant and an efficient agricultural marketing system and
growth of a transport system which enables conveyance of agricultural produces from rural centers to mandis located
at urban centers at a low cost and in a quick pace is the need of the hour. Construction of all-weather roads of better
quality, linking rural parts with urban centers should be given utmost priority. Along with carts consisting of wheels
made of rubber so as not to be burdensome to oxen, use of trucks and tractors should be commonplace. Such
conveyance facilities should be at beck and call of small marginal and farmers to transport their marketable produce
3. Grading and standardisation of produces : Grading and standardization system is very much necessitated in
order to separate produces of different qualities. Government has pursued certain far reaching measures in this front.
Centers have been established for standardization of certain produces according to 'Agricultural produces
(Standardisation and Marketing) Act'. The graded and standardized commodities are stamped with the seal of the
Agricultural Marketing Department -AGMARK. Produces with 'Agmark' seal command better prices and will have
wider market
With the purpose of testing the quality and purity of agricultural commodities for stamping 'Agmark', a central quality
control laboratory has been established at Nagpur and eight regional laboratories across the country. Government has
paid due attention to ramp up grading, inspection and quality control measures
Despite these measures a large quantity of agricultural produce is sold without grading and standardisation. It is more
so in the case of grains. Farmers should evince greater interest in selling the produce only after standardization and
quality control. Equally, government should not lag behind in stricter enforcement of grading and standardisation
system in mandis
4. Usage of prescribed measuring instruments : Usage of prescribed instruments in weighing and measurement of
produces is to be strictly enforced. Traders violating the norms and rules should be punished severely. Although
certain measures in this front are in force at present, they are found more in breach than in pursuit, Central government
brought into force 'Standard Weights Act way back in 1939. On the basis of this, State governments have come out
with measures to enforce standard weights norms.
5. Provision of warehousing facilities Provision of warehousing facilities may definitely serve as a major measure to
get rid of the problems prevailing in the area of agricultural marketing. Along with providing scientific storage
facilities at relatively low prices, warehouses give 'warehouse receipts' to enable farmers and traders to avail loans
from banks Government has taken initiative to provide godown facilities in towns and villages. Government of India
has established "National Co-operative Development and Warehousing Board in 1956. 'Central Warehousing
Corporation' was set up in 1957 with the purpose of constructing and maintaining godowns and warehouses for
storage of agricultural commodities. States have also established State Warehousing Corporations to extend storage
facilities for agricultural produce. Food Corporation of India too provides warehousing facilities.
In 2015, central warehousing corporation had 260 warehouses which provided storage facilities for 100.7 lakh tons of
produce, and State warehousing corporations had 1,300 warehouses and provided storage facilities for 212.9 lakh tons
of agricultural produce.
6. Marketing surveys and inspection: Surveys to study grievances existing in the marketing system are no less
important. Along with s surveys, inspection of market Operations is to be conducted to get rid of problems and to
bring about reforms in the system Government on its part has been undertaking market surveys of various goods and
has been adopting measures for removal of problems.
7. Organisation of cooperative marketing institutions: Cooperative marketing societies are organized by producers
who will be shareholders, and government extends assistance in the forms of loans, share capital, subsidy etc. These
institutions buy commodities from to the latter. They also advance loans on the basis of pledging farmers at a price
which is remunerative produces. of In cooperative marketing system no scope
8. Reforms in agricultural marketing: Government has brought about a number of reforms in agricultural marketing
system with the aim of making it competitive and producer friendly. It had appointed on Inter-ministerial Task Force
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on agricultural Marketing reforms to recommend measures to make it efficient and vibrant. The Task Force which
submitted its report in June 2002 suggested the following measures
i Development of agricultural markets in private and cooperative sectors
ii Promotion of direct marketing and contract farming
ii) Strengthening futures trading system to cover all agricultural markets.
iv) Use of information technology to provide information as well as market-led extension services to farmers.
v) Introduction of negotiable warehouse receipt system
Government has initiated long-ranging measures such as strengthening of regulated markets, establishment of direct
purchase centers, extension of assistance to cooperative marketing system, setting up of farmers' markets for direct
sale to consumers and ensuring complete transparency in the pricing system.

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