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Lecture 25
Lecture 25
i. It increased inter farmer inequality because relatively rich farmers gained more.
ii. It increased inter regional inequality because there was very high benefit in states like
Punjab, Haryana, Western UP, Tamilnadu and coastal regions of AP but relatively low
growth in Bihar, Rajasthan, Eastern UP, MP and Odisha.
iii. It resulted in excessive use of fertilizers and pesticides along with intensive irrigation
technique which depleted the water table and removed soil fertility in many regions.
Therefore, green revolution proved to be environmentally unsustainable in the long run.
iv. It resulted in discouraging institutional reforms in agriculture.
v. It resulted in increasing cost of cultivation in agriculture because farmers had to buy
inputs like fertilizers, pesticides, irrigation facilities etc which increased cost of doing
business and therefore risk in agriculture.
Evergreen Revolution-
It is a concept which suggests that agricultural policies should be designed to achieve increase in
output without harming natural capital so that agricultural development remains sustainable. It
can be achieved by technological reforms and institutional reforms.
Technological reforms-
Institutional reforms-
Yellow revolution-
Fill from office.
Operation flood was initiated in 1970 with establishment of national diary development board. It
was mainly focused on increasing milk production through development of farming cooperatives,
promotion of higher amount of procurement from even remote areas and comparatively smaller
amount to process it and sell it in the market. It also developed skimmed milk and milk powders to
increase self-life of milk in the market.
Benefits-
i. It made India largest producer of milk in the world and increased nutrition security.
ii. It became an additional source of income for farmers especially in dry land regions.
iii. It increased empowerment of small and marginal farmers.
iv. High milk production has also resulted in improving food processing in India giving
higher returns to farmers.
Blue revolution-
Blue revolution refers to very high growth in fish production and marine output production in India,
especially after 2006.Post 2006 national fisheries development board was given statutory and
autonomous status. It has taken steps to modernize fishing industry, developing better marketing
support, and training farmers in use of modern technology. Marine production and fishery
production has increased at 9% per annum between 2006 and 2014 and then at 11% between 2014
and 2022. India’s exports of fishery products were worth 8 billion dollars in 2021-22. Increase in
productivity has improved income for farmers especially in coastal regions. It has also increased
shrimp exports making India one of the largest exporters of Shrimp.
Lecture-26
i. Abolition of zamindars
ii. Security of tenants/Tenancy reforms
iii. Land ceiling
iv. Land consolidation
Land reforms were introduced in India with a special act in 1948 under which the government
declared abolition of zamindari. The objective of zamindari abolition was to remove intermediary for
tax collection between government and farmers. Under this reform zamindar’s rights of tax
collection from farmers and his rights over common village property were abolished. Common
village grounds under the control of zamindar were confiscated and distributed among landless
farmers.
Benefits-
i. Excessive tax burden put on the farmer by the zamindar were abolished.
ii. Administrative control of zamindar on land which resulted in exploitation of tenants
was abolished.
iii. Redistribution of land among poor farmers reduced asset inequality to a great extent.
Tenancy reforms-
They were mainly executed in Kerala, West Bengal and Jammu and Kashmir. It consists of three
parts.
a. Security of demure- Before independence the tenants were routinely evicted from land
without any major reason, government made a rule post-independence that if a tenant is
evicted then it can only happen if landlord will do personal cultivation and even then, the
landlord will have to pay compensation to the tenant.
b. Reduction in rent-
Rent before independence was as high as seventy five percent in certain areas, this was
reduced to a maximum of 33% after independence, however some states like Punjab and
Tamilnadu increased it to 40%.
c. Ownership rights for the tenants-
The government provisioned that if a tenant cultivated the land for a given period (fixed by
state government) then some part of land will belong to the tenant.
Benefits-
Challenges-
Land ceiling-
When government fixes an upper limit on amount of land holding that an individual or a family can
keep then it is called land ceiling. Land ceiling act was passed on recommendation of S.
Radhakrishnan committee which recommended that maximum land holding should be fixed at 15
acres per adult in a family, any surplus land should be surrendered to the government and state
government can fix compensation for landlords for taking away their land. This land should be
redistributed among landless peasants and small farmers. Plantation land and land for commercial
use should be exempted from the list.
Benefits-
Challenges-
Agricultural subsidies-
i. Price subsidy-
a. Minimum Support Price (Price floor)-
The price at which government provides an assurance that they will buy farmer’s
produce.
b. Procurement Price-
The price at which government will purchase agricultural product for its own
purpose of meeting food security or raw material requirements.
c. Issue price-
The price at which government will release food grains from godowns of FCI.
MSP can be fixed based on cost incurred by the farmer in production. There are 3 possible methods
of measuring the cost.
a. A2 = It includes all payments made by farmers on hired factors of production like payment of
wage, rent, interest and expenditure on raw material.
b. A2 + FL = Family labour (estimated cost)
c. C2 = A2 + FL + Estimated rent of owner-occupied land + estimated interest on capital supplied
by owner
i. It is tilted heavily towards wheat and rice which have open procurement while other
crops have closed procurement.
ii. It is mainly used by large farmers because small farmers are not informed and they don’t
have the surplus to produce.
iii. It creates inter regional inequality because those states which have a strong
procurement system can purchase higher amount compared to other states.
iv. Higher MSP can lead to higher inflation.
v. MSP is an indirect subsidy and it is considered against WTO rules.
Therefore reforms in APMC system will be needed to promote better functioning of agricultural
subsidies.