2.B. The Impact of Technological Changes on the Land Tenure
Situation
After a long period of relative stagnation in agriculture,
the second half of the 1960s has brought about a technological
change resulting in a considerably higher production. The
"green revolution" was made possible by the development
of new seed varieties with a high yield potential and their
application together with other complementary inputs like
water, fertilizers, insecticides, etc. The extent to which
the different land tenure categories participated in this
process, and the way they were influenced and underwent changes
will be outlined in this chapter. At the beginning, however,
it has to be stressed that this process has affected only
part of the country, i.e. the irrigated areas which had the
necessary water or could arrange for its supply. Therefore,
the tenure categories are not affected on the whole but, primarily,
only in those areas which participated in the green revolution.
Of course, in time, a number of secondary changes also affected
other regions to a certain degree.
The two categories of landlords, as long as their land was
irrigated, participated rapidly in the green revolution. They
had information, access to the inputs and - if at all necessary
- to credit and were, as is usual for large farms, the early
adopters of the new technologies, thereby increasing their
production and income considerably. The first changes were
followed by secondary ones which, especially in the category
of "small landlords", brought about drastic and
far reaching alterations involving a change of attitude towards
agriculture which was no longer considered as a way of life
but as a business. This process started with the construction
of a large number of tubewells so as not to depend on canal
water, and in order to supplement it, changes in the cropping
pattern and mechanization of agriculture through the purchase
of a tractor were included. After this change in factor proportions,
it is only logical that a business-minded agriculturist had
a look at his labour organization and found that the old batai
system was expensive under the new input and yield situation.
The result was a general tendency towards abolishing share
cropping and increasing self-cultivation. The new business-minded
"commercial1 and 'capitalistic1 farmers used most of
their increased income to reinvest it in tubewells, tractors
and, whenever possible, land. The new terms of trade caused
even members of the urban upper class to invest in agriculture
and share in the new profitable business. Improved income
and the economic situation of landlords strengthened their
traditional political power, and with their political influence
they succeeded in ensuring the continuation of the landlord-biased
agricultural policy: no taxation, favourable product prices,
cheap inputs and reasonable terms for credit at the institutional
credit market, to which they had access.
While these landlords have generally benefited from the
technological changes their attitude to land changed considerably.
Although their production has increased, their experiences
are not altogether positive and they rightly claim that they
had some difficulties and problems. These are mainly the result
of imperfect conditions of the factor market and lack of change
in the agro-business sector, the level of which is now much
lower than that of agro-technology. In view of the high risk
involved in modern technology and commercial farming, untimely
supply of fertilizer, electricity breakdowns causing tubewells
to stop functioning or sudden shortages of labour cause much
more difficulties than in former times, and influence considerably
the financial result of farm operations.
The family owner-cultivators (the same applies to many of
the tenants of better standing) have fully participated in
the green revolution. They first started doing so after a
time lag of one or two years, partly due to limited access
to information and inputs, and partly because they first wanted
to see the results on the landlords' farms to be convinced.
Soon after, there occurred a development similar to that involving
smaller landlords: application of new seeds and fertizer,
installation of tubewells and even purchase of tractors. Quite
a number of them tried to increase their farm size by renting
or purchasing land, they also made the investment profitable
by selling water or working with the tractor on custom hire.
By and large, the results - on a smaller scale - were the
same as outlined for landlords, i.e. higher production resulting
in increasing prosperity and a high degree of capital formation,
to quite an extent by non-monetary means, thus converting
labour into capital. These smaller cultivators, however, suffered
much more from the market imperfections and the poor service
structure. Difficulties in getting their share of canal water,
untimely fertilizer supply, problems in obtaining credit,
etc., are a real danger in view of the high monetary investment
in modern agriculture and the limited ability to bear risks.
Thus, even though their income has increased considerably,
the security of this group is low, and they suffer much from
the deficient service structure catering for their needs.
The share of the marginal owner-cultivators in the new technologies
is negligible. Regardless of the fact that seed and fertilizer
are divisible inputs and do not require minimum size, this
category has neither means nor access to input and credit,
has no risk-bearing capacity and sometimes no desire to use
new seeds because they do not suit their home consumption
needs. Even if they want to participate, there is usually
no service structure that reaches these small cultivators
with inputs, credit, etc. The fact that they hardly market
anything raises the question of payment for initial investments
and for repayment of credit, particularly in view of the risk
involved* Their rather stagnant situation, as compared with
the increasing prosperity of the categories discussed so far,
causes frustration and disappointment.
The impact of the green revolution on the tenante-at-wi11
depended initially on the landlord's willingness to apply
the new technologies. Because of the limited availability
of inputs, he often used them only on his self-cultivated
land* Even later, the tenants played a more passive role as
they were cultivating according to the landlord1s instructions.
Soon, however, the situation and size of this cateogry underwent
considerable change. The introduction of tubewells caused
landlords to change the partition ratio for produce, sometimes
rather arbitrarily. Even if the new ratio was justified, it
caused unrest among the tenants. After buying a tractor the
landlord no longer had need of the tenant's bullocks for cultivation,
but considered the traditional batai system to be an expensive
kind of labour and frequently dismissed his tenants. In this
process a large number of tenants lost their tenancy status
and had to join the ranks of casual rural labourers, a process
which was accompanied by much frustration, unrest and radicalism.
There is no general agreement on the impact of the green
revolution on rural labourers. The usual interpretation is
that some improved their situation by becoming technical specialists
like tubewell operators, tractor drivers, etc., while the
general increase in labour demand and wages was limited. On
a closer look, the impact seems to be more far-reaching and
varies among the different groups of labourers.
The traditional bondage of kammis to their cultivators,
resulting in inability to accept work from outside, is no
longer functioning. More demand for technical skill, increased
number of workshops in mandi 3/ towns, etc., have opened alternatives
for the kammi as compared to exclusive work for the village
cultivators, and the latter had to agree to their kammis working
outside in order to secure their presence in the village at
all. Today, a kammi may do his sep work in the evenings against
the old traditional remuneration, and during the day may seek
work in towns. Social services connected with kammis have
diminished too. With more work outside the village, they could
improve their income considerably.
The permanent labourers also improved their situation by
occupying the new posts of specialists. Landlords depend on
their skill and, as these specialists are not numerous, the
result is not only higher wages but also a certain degree
of freedom.
The impact of the technological changes on the casual labourers
is very complex. The ranks of this always mobile and discontented
group have been further filled by the dismissed tenants. After
the changes, quarrels with landlords about new wage rates
sometimes caused strikes during harvest time and this was
an indication of the more tense relationship. On the other
hand, some developments were favourable to those casual labourers.
The price increase now makes it possible to earn a living
with a pair of buffaloes by selling milk and ghee, and most
of the fodder consists of weeds collected by family members
at roadsides. Sometimes, getting more fodder is a greater
incentive to work than the wage. This new situation gives
these people a degree of freedom which, so far, has been unknown
to them. Besides, it seems that the secondary employment effects
of the green revolution have created a larger number of jobs
than generally assumed. Another point is that the general
outlook of these people has changed and they do not just sit
idly waiting for work; an increasing mobility of this group
is noticeable. Altogether, the result of this is that cultivators
experience difficulties in getting enough hired labour during
the season. This, to be sure, is a matter of the wage offered,
but wages have already increased more than inflation and the
high supply price of labour indicates that they no longer
need to accept whatever is offered.
Summarizing the impact of the new technologies from the point
of view of agricultural production, one can say that, during
the process, production has greatly increased because of a
fuller utilization of the potential in the better sectors
of agriculture, i.e. the better irrigated lands and the large
farms. It is an undisputable fact that the rural upper class
benefited much from the green revolution because the existing
service structure sufficed to meet their needs while the necessary
services were not available for smaller farms. The prosperity
of the large farmers and the given incentive structure with
emphasis on private enterprise and development of capitalistic
agriculture caused a dualism in the agricultural sector with
larger farms developing more and more, while small farms remained
more or less stagnant, thus widening the gap. This dualism,
which has serious social and political consequences, has the
biased organization of rural service structure as one of its
main causes.
After discussing the impact of technological changes on
different land tenure groups, a few comments seem to be indicated
to place the arguments in proper perspective. As has been
stated, the impact varies considerably in that some groups
benefited much and increased their income notably while others
hardly have a share and are forced into occupational mobility
with its risks and manifold frictions. These widening disparities
among different groups of the population have been given much
publicity in recent years, and this is a correct interpretation
of the facts. However, it seems that a much more serious aspect
is the increasing regional disparity between irrigated areas
where application of the new technologies is possible and
usually done to the utmost extent, and other regions which
lack the necessary water and which, therefore, cannot participate
in the green revolution. The latter tend to stagnate at the
technological level of the 1950s with obvious consequences
for income and prosperity. While the income disparity between
population groups can be overcome by institutional changes
and policy measures like taxation, change of ownership structure,
rural industrialization and welfare measures, no solution
is in sight for the dry areas and their agricultural development.
There, everybody, from landlord and cultivator to tenant and
labourer is locked in the stagnant structure of traditional
agriculture.
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3/ Small market town for agricultural produce.
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