Changing Production Modes in Indian Agriculture

The advent of new technology in agriculture has revolutionized agricultural production. Resources beyond land have gained significance. Tractors, mechanized ploughs, pump sets, power threshers, and other equipment are now acquired through the market. Even without inherited land, individuals can join the class of landowners.

As production modes evolve, the composition of traditional landowners in the country is changing. Previously, most landowners inherited land from ancestors, and land was rarely purchased due to an underdeveloped market. This scenario has now shifted. The agrarian system is being restructured, influenced by land reforms and the Green Revolution. Consequently, a new class of farmers with diverse skills and experiences is emerging. These individuals are often retirees from civil and military services, investing their savings in agricultural farms, leading to the rise of the “Gentleman Farmer.”

This group now attracts educated individuals who view agriculture as a viable vocation, driven primarily by its increased profitability. These agricultural enterprises operate like modern business firms, marking a significant departure from traditional agricultural systems.

The rise of capitalist farmers is another notable development in independent India. While the extent of capitalism’s penetration into Indian agriculture remains debated, the trend towards capital infusion is evident, paralleling industrial trends. Capitalist wage labor agrarian systems have replaced traditional land relations, transforming peasant family farms into commercial capitalist farms. Although rich peasants existed before, they were not considered capitalist farmers due to the lack of capitalist influence in agriculture. Recently, however, factors beyond land reforms have impacted the agricultural sector.

New technology and agricultural development schemes have enabled a small segment of rich peasants to become powerful commercial and capitalist farmers. They have fully utilized resources such as high-yielding seed varieties, fertilizers, advanced implements, irrigation, credit facilities, and improved transport and communication. Capitalist farmers hire laborers to meet their agricultural needs, with the actual tillers being wage laborers employed by these farmers. The capitalist farmers engage in agriculture primarily to profit from it, generating surplus production for the market.

Although the class of capitalist farmers remains relatively small, its growth signifies a substantial change in the agrarian social structure. This emerging class has increased agricultural efficiency and productivity, contributing to industrial growth and development. However, this trend has exacerbated inequalities between rich and poor farmers, leading to increased unrest in rural areas.

Some Analyses of Production Modes in Indian Agriculture

1. Ashok Rudra perceives partial capitalism in Indian agriculture. He contends that a capitalist typically responds to market demand, but Indian agriculture remains entrenched in the wheat-rice system. This results in market-oriented production driven by convenience. Furthermore, Rudra points out that while a significant portion of land is dedicated to cash crops, the percentage of family income derived from these crops is low. This reflects a lack of input-output rationalization, indicating a partial capitalist spirit. Additionally, profits from agriculture are not always reinvested in the sector but are often spent on rituals and status consolidation, showcasing a partial capitalist nature.
2. Utsa Patnaik asserts that Indian agriculture remains in a pre-capitalist phase, serving as a precursor to capitalism. She argues that although technology is available, it is not widely utilized. Family labor is used instead of skilled labor services, and the farming community functions as a pressure group without wielding power. While the entire Indian economy is non-capitalist, there are isolated pockets of pre-capitalism with a few capitalist elements. Therefore, it is inappropriate to generalize that India is wholly capitalist.

The End of the Blog: Changing Modes of Production in Indian Agriculture