31 Jul Agriculture in Pre-Liberalization Era

Agriculture in Pre-Liberalization Era

The period from 1947 to 1991 marks the pre-liberalization era of Indian agriculture. During this time, agriculture remained a crucial sector of the Indian economy, employing over 70% of the population and contributing significantly to GDP. However, it faced numerous structural problems such as low productivity, land fragmentation, and subsistence farming. Various state-led initiatives attempted to reform and modernize the agricultural sector through land reforms, institutional support, technological inputs, and rural development programs.

1. Importance of Agriculture in Post-Independence India

• Primary source of livelihood for rural population
• Supplier of raw materials for industry
• Key driver of food security and employment
• Important contributor to foreign exchange through exports

2. Structural Features of Indian Agriculture (1947–1991)

• Dominance of small and marginal farmers
• Rain-fed and monsoon-dependent agriculture
• Widespread use of traditional techniques and tools
• Fragmented landholdings due to inheritance laws

3. Land Reforms

Land reforms were seen as a cornerstone for rural transformation and social justice.

3.1 Objectives

• Eliminate intermediaries (zamindars)
• Provide security of tenure to tenants
• Impose ceilings on land holdings
• Redistribute surplus land to landless farmers

3.2 Outcomes

• Legally abolished zamindari system, but loopholes remained
• Fragmentation and concealed tenancy persisted
• Ceiling laws implemented variably across states

4. Agricultural Planning and Key Programs

Post-independence agricultural policy was driven through various rural development programs.

• Community Development Programme (1952): First effort at integrated rural development
• Intensive Agriculture District Programme (IADP) – 1960s: Emphasized increased yield through modern inputs in selected districts
• Intensive Agriculture Area Programme (IAAP): Wider coverage based on IADP experience
• High Yielding Varieties Programme (HYVP): Paved the way for the Green Revolution

5. Green Revolution (1965–1985)

The most significant agricultural transformation in the pre-liberalization period was the Green Revolution led by M.S. Swaminathan and supported by global institutions like the Ford and Rockefeller Foundations.

5.1 Key Components

• Introduction of High-Yielding Varieties (HYVs) of wheat and rice
• Use of chemical fertilizers and pesticides
• Expansion of irrigation facilities
• Mechanization and credit support

5.2 Impacts

• India became self-sufficient in food grains
• Significant increase in wheat and rice productivity
• Led to regional inequality – Punjab, Haryana, Western UP benefited the most
• Neglected pulses, coarse cereals, and eastern India
• Environmental degradation due to excessive input use

6. Institutional Support and Rural Credit

• Establishment of NABARD in 1982
• Expansion of cooperative banks and rural branches of commercial banks post-nationalization (1969)
• Integrated Rural Development Programme (IRDP) for rural poor
• Food Corporation of India (FCI) created in 1965 to manage procurement and public distribution

7. Agricultural Price Policy and Food Security

• Minimum Support Prices (MSPs) announced to protect farmers’ interests
• Public Distribution System (PDS) evolved to manage food supply and price stability
• Buffer stock maintenance by FCI helped during droughts and food shortages

8. Challenges in Agriculture

• Low productivity and yield gaps
• Dependence on monsoon and lack of irrigation
• Fragmented and small landholdings
• Rural indebtedness and poverty
• Deficient market access and post-harvest infrastructure
• Inadequate credit and insurance facilities

9. Performance Overview (1947–1991)

• Food grain production increased from 50 million tonnes (1950-51) to 176 million tonnes (1990-91)
• Agriculture’s share in GDP declined from over 50% to about 30%, indicating diversification
• Employment in agriculture remained stagnant, suggesting limited shift to non-farm sectors

• Green Revolution mainly benefited northwestern India
• Eastern, central, and southern regions remained behind in productivity and income
• Dryland agriculture in Deccan Plateau continued facing frequent droughts and low output

11. Environmental Concerns

• Overuse of groundwater for irrigation
• Soil degradation due to fertilizers and monoculture
• Decline in agro-biodiversity
• Neglected traditional organic farming practices

12. Conclusion

Agriculture in the pre-liberalization era was a mixed story of achievement and challenge. While India managed to escape the “ship-to-mouth” food crisis and achieved food self-sufficiency, the sector remained plagued by structural weaknesses and rural poverty. The foundation laid in this period, however, enabled future reforms and modernization post-1991. A holistic approach involving technology, institutional support, and sustainability remains essential even today.

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Previous Year UPSC Questions (Mains)

• Examine the contribution of Green Revolution to food security in India. (2021)
• Discuss the major land reform measures adopted in India after independence. Why did many of them fail? (2018)
• Evaluate the role of institutional credit in agricultural development before liberalization. (2015)

Probable UPSC Mains Questions

• Critically evaluate the impact of pre-liberalization agricultural policies on rural inequality.
• What were the key features of India’s agricultural price policy in the pre-reform era?
• To what extent did the Green Revolution alter the structure of Indian agriculture?

Probable UPSC Prelims Questions

• Which program marked the beginning of intensive agriculture planning in India?
• Who is known as the father of the Green Revolution in India?
• NABARD was established for which of the following purposes?