Iim calcutta indian social structure - the model of agrarian classes in india
Agrarian StructureThe Model of Agrarian Classes in India
Agrarian Structure: Network of relations among thevarious groups of persons who draw their livelihoodfrom the soil• In what form income from the soil is obtained: Rent/ Fruit of cultivation/ Payment for labour• What type of rights in the soil are enjoyed, and how much land is held under these rights• To what extent the individual actually performs the required fieldwork, or whether others are hired to do it for him.
Common pattern - • By malik we will refer to aThere are three family whose agriculturalprincipal groups income is derived primarily1. Proprietors from property right on soil or Malik • Kisan are those villagers2. Working who live primarily by their peasants or own toil on their own lands Kisan • Mazdur comprises those3. Labourers or villagers who gain their Mazdur livelihood primarily from working on other people’s land
The Model of • a) Big landlords, hold rights overAgrarian Classes in large tracts extending overIndia several villages; they are absentee owners rentiers with1)MALIKS absolutely no interest in landCommon management or improvementinterests is to • b) Rich landowners, proprietorskeep level of with considerable holdings but usually in the same village andrents up while although performing nokeeping the fieldwork, supervisingwage-level down. cultivation and taking personalThey collect rent interest in the management andfrom tenants, also in the improvement of land if necessary.sub-tenants andshare-croppers.
The Model of • a) Small landowners , havingAgrarian Classes in holdings sufficient to supportIndia a family, who cultivate land with family labour and who2) KISANS, do not either employworking outsider labour (except inpeasants having harvest) or receive rent.property interest • b) Substantial tenants,in the land but tenants holding leases underactual rights, either 1 a) or 1 b); tenurialwhether legal or rights fairly secure; size ofcustomary, the holding usually above theinferior to those sufficiency level. The rest isof maliks. as 2 a).
The Model of • a) Poor tenants, havingAgrarian Classes in tenancy rights but lessIndia secure; holdings too small to3)MAZDOOR- suffice for a family’s maintenance and incomeS, those derived from land often lessearning their than that earned by wage labourlivelihood • b) Sharecroppers, eitherprimarily from tenets-at-will, leases withoutworking on security; cultivating land forothers lands. others on share-cropper basis, having at least agricultural implements • c) Landless labourers .
Agrarian Classes in India• MALIKS Big landlords Rich landowners• KISANS Small landowners Substantial tenants• MAZDOORS Poor tenants Sharecroppers Landless labourers
What is contract farming?• A system for the production and supply of agricultural produce under forward contracts• A commitment to provide an agricultural commodity in a pre-agreed• price,• quality,• quantity and• time. 9
Types of contract farmingThree types :• Procurement contracts – only sale and purchase conditions are specified (Marketing)• Partial contracts – only some of the inputs are supplied by the contracting firm and produce is bought at pre-agreed price (Production)• Total contracts – all inputs are supplied by the contracting firm, farmer becomes just a supplier of land and labour (Production). 10
Factors resulting emergence of agribusiness and contract farming• Failure of govt. to support agriculture• A part of internationalization process in agriculture involving globalization of production, capital and trade• Support for contract farming under Structural Adjustment Programme• Its promotion by international development agencies• To ensure quality, timely and cost effective availability of raw materials and captive farming not being a viable option. 11
Growth of Agribusiness : A perspectiveIt is essentially a process of industrialization of agriculture and rural production through:Appropriationism : a process of exploitation of land and other biological sources of supply by the application of modern technology to get cheaper raw materialSubstitutionism : a process tries to move agribusiness away from direct dependence on land and other direct source of raw materials applying technology to create new productsThe application of bio-technology accelerate this process and leads to bio-industrialization. 12
Why contract farming is attractive to farmers?• Attracting to farmers seeking additional sources of capital and more certain price• Access to new technology and inputs which may be outside the farmers reach. 13
Why contract farming is attractive to agribusiness farms?• Provides assured and stable quality raw material supplies• Contract farming is similar to subcontracting in the industrial sector• Contracts make smaller demands on capital resources, impose less of an additional burden of labour relations, ownership of land, and farm production activities compared with that under captive farming• Allows to access unpaid family labour and state funds directed at farmers.
Contract farming: critics’ viewpoint• One mode of capitalist exploitation of farming sector• Farmers had little bargaining power compared with that of companies• Resulted monopolistic concentration in the international food processing and food manufacturing industries. 15
Critics’ viewpoint..• Causes environmental degradation• Shifts farm production in favor of export oriented and cash crops at the cost of basic food crops for the poor• Favouring large farmer, contracting may encourage a socially undesirable “dual” agricultural development• Leads to gender inequalities 17
Contract farming in India• Govt. of India’s National Agriculture Policy envisages that “private sector participation will be promoted through contract farming”• Several state govts. in Andhra Pradesh, Tamil Nadu, Karnataka, Gujarat and Punjab are actively promoting contract farming. Other state govts. are under active pressure to change their policy towards contract farming. 18
Conclusion• The case studies of contract farming reveal that though contracting has initially led to higher incomes for the farmers and more employment for labour, it is not smooth sailing for firms and is unlikely to be sustained due to lack of trust between firms and farmers and the tendencies toward agribusiness normalization by firms• What is needed is not less of the state, but a better state for promotion and regulation of economic activities, and new organizations and institutions for sustainability of agricultural development.