LAND REFORMS IN INDIA

Economics

INTRODUCTION: WHY LAND REFORMS ARE IMPORTANT

Land reforms refer to a set of institutional and structural changes introduced in the agrarian system with the objective of ensuring social justice, improving agricultural productivity, and reducing rural poverty. In an agrarian economy like India, land is the most important productive asset. Therefore, the way land is owned, distributed, inherited, and cultivated directly affects agricultural growth as well as the socio-economic condition of farmers.

Key factors that influence agricultural investment and productivity include:
- Size of landholdings
- Pattern of land ownership
- Method of inheritance
- Security of tenure for cultivators

In pre-independent India, these factors were shaped by exploitative colonial land tenure systems, which made land reforms a critical necessity after independence.

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LAND TENURE SYSTEMS IN PRE-INDEPENDENT INDIA

Before independence, the British introduced different land revenue systems primarily to ensure maximum and assured revenue collection. These systems fundamentally altered the traditional relationship between the cultivator and the land.

1. ZAMINDARI SYSTEM

Areas of prevalence:
- Bengal
- Bihar
- Orissa
- North Madras

Nature of the system:
- Introduced by the East India Company, most notably through the Permanent Settlement of 1793
- A class of intermediaries called zamindars was created
- Zamindars acted as revenue collectors on behalf of the British government

Key features:
- Revenue was fixed between the government and the zamindar
- Zamindars were free to extract any amount of rent from tenants
- Cultivators had no ownership rights over land
- Tenants could be evicted at will

Impact:
- Severe exploitation of peasants
- Absentee landlordism became common
- Decline in agricultural investment
- Widespread rural poverty and indebtedness
- Particularly devastating effects in Bengal and Bihar

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2. MAHALWARI SYSTEM

Areas of prevalence:
- North India

Nature of the system:
- Land revenue was assessed for an entire village or group of villages (mahal)
- Village community was jointly responsible for revenue payment

Key features:
- No individual ownership in practice
- Revenue demand revised periodically
- Collective responsibility increased pressure on peasants

Impact:
- Reduced intermediary exploitation compared to zamindari
- However, high revenue demand continued
- Village communities often fell into debt

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3. RYOTWARI SYSTEM

Areas of prevalence:
- Madras Presidency
- Bombay Presidency
- Assam

Nature of the system:
- Introduced by British officials like Thomas Munro
- Direct relationship between cultivator (ryot) and the state

Key features:
- No intermediary between farmer and government
- Ryot recognized as landholder as long as revenue was paid
- Revenue demand was high and rigid

Impact:
- Gave cultivators greater legal recognition
- But high taxation discouraged long-term investment

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MAJOR LAND REFORM MEASURES AFTER INDEPENDENCE

After independence, land reforms became a core component of India’s development strategy, aiming to remove colonial distortions and create a more equitable agrarian structure.

1. ABOLITION OF INTERMEDIARIES

Objectives:
- Eliminate zamindari and similar systems
- End absentee landlordism
- Establish direct relationship between cultivator and state

Measures:
- State governments enacted laws to abolish intermediaries

Outcome:
- About 30 lakh tenants acquired ownership rights
- Approximately 62 lakh acres of land transferred to cultivators
- Strengthened the concept of owner-cultivator

Limitations:
- Many landlords evaded laws using loopholes
- Actual beneficiaries varied across states

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2. LAND CEILING LAWS

Objectives:
- Prevent concentration of land in a few hands
- Promote equitable distribution of land

Key provisions:
- Maximum limit fixed on landholdings
- Surplus land to be acquired by the state
- Ceiling amended in 1972 to apply to family holdings

Impact:
- Some redistribution of land to landless farmers
- Implementation weak due to benami transfers and exemptions

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3. CONSOLIDATION OF HOLDINGS

Problem addressed:
- Fragmentation of land due to inheritance practices

Objectives:
- Improve agricultural efficiency
- Facilitate mechanisation and irrigation

Progress:
- Successful in Punjab, Haryana and Western Uttar Pradesh
- Limited success in eastern and southern India

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CO-OPERATIVE FARMING

Concept:
Co-operative farming was advocated by Mahatma Gandhi in 1942 as a means to achieve economies of scale while preserving the spirit of cooperation and social justice.

Rationale:
- Small landholdings limit productivity
- Collective effort improves efficiency and bargaining power

Forms of co-operative farming:
1. Co-operative tenant farming – land owned by society and leased to members
2. Co-operative collective farming – land permanently surrendered to the collective
3. Co-operative joint farming – land pooled for cultivation but ownership remains individual

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LAND ACQUISITION ACT, 2013

Official name:
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

Need for the Act:
- Replace the colonial Land Acquisition Act, 1894
- Address displacement, protests, and lack of transparency

Objectives:
- Ensure humane and participatory land acquisition
- Mandatory consultation with Gram Sabhas and local bodies
- Provide fair compensation
- Ensure rehabilitation and resettlement
- Make affected persons partners in development

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NATIONAL LAND RECORDS MODERNISATION PROGRAMME (NLRMP)

Nature:
- Centrally Sponsored Scheme
- Merger of land record computerisation and revenue administration reforms

Objectives:
- Modern and accurate land records
- Transparency in ownership
- Reduction in land disputes

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GREEN REVOLUTION IN INDIA

Background:
- Triggered by food shortages and the Bengal Famine of 1943
- Ensuring food security became a national priority

Period:
- Began in 1967–68

Key features:
- High Yielding Variety (HYV) seeds of wheat and rice
- Expansion of irrigation
- Increased use of fertilizers and pesticides
- Adoption of modern farm practices

Key personality:
- Dr. M S Swaminathan – Father of Green Revolution in India

Achievements:
- Self-sufficiency in food grains
- Increased agricultural productivity

Negative impacts:
- Soil degradation
- Groundwater depletion
- Environmental pollution

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SECOND GREEN REVOLUTION

Focus:
- Improving post-harvest management
- Reducing wastage
- Strengthening storage and supply chains

Key aspects:
- Biotechnology and plant breeding
- Market reforms
- Contract farming
- Compliance with global standards

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EVERGREEN REVOLUTION

Concept:
- Proposed by Dr. M S Swaminathan

Core idea:
- Sustainable increase in productivity without environmental damage

Features:
- Integrated pest management
- Balanced nutrient use
- Efficient resource management

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SEEDS AND PLANT VARIETY PROTECTION

Indian Seed Programme:
- Involves central and state governments, ICAR, universities, private sector and farmers

Protection of Plant Varieties and Farmers’ Rights Act, 2001:
- Grants IPR to breeders
- Protects farmers’ traditional rights

Sui Generis System:
- Farmers can save, use, exchange seeds
- Sale of branded seeds not allowed

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FERTILIZERS

Status:
- India meets most of its urea requirement domestically
- Heavy dependence on imports for phosphatic and potassic fertilizers

Nutrient Based Subsidy Scheme (2010):
- Subsidy based on nutrient content
- Encourages balanced fertiliser use

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IRRIGATION

Importance:
- Critical for crop growth and productivity

Accelerated Irrigation Benefit Programme (AIBP):
- Launched in 1996–97
- Focus on completing incomplete projects

National Mission on Micro Irrigation:
- Promotes drip and sprinkler systems
- Saves water and energy

Neeranchal Watershed Yojana:
- Implemented during 2016–21
- Linked with PM Krishi Sinchai Yojana

Rainfed Area Development Programme:
- Under RKVY
- Focus on small and marginal farmers

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AGRICULTURAL CREDIT SYSTEM

Structure:
- Commercial banks
- Regional Rural Banks
- Cooperative societies

NABARD:
- Established in 1982
- Apex rural credit institution
- Provides refinance and regulates cooperative banks

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AGRICULTURAL MARKETING INSTITUTIONS

NAFED:
- National level cooperative marketing body
- Procurement and trade of agricultural commodities

TRIFED:
- Promotes tribal produce marketing

National Cooperative Development Corporation:
- Financial and capacity-building support to cooperatives

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AGRICULTURAL INSURANCE

Agriculture Insurance Company of India Limited:
- Established in 2002
- Implements crop insurance schemes

National Agricultural Insurance Scheme:
- Operational since 1999
- Covers production risk

Weather Based Crop Insurance Scheme:
- Covers adverse weather conditions

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AGRICULTURE MARKETS AND DEFECTS

Present marketing channels:
- Village traders and moneylenders
- Weekly haats
- Mandis and wholesalers
- Cooperative markets

Major defects:
- Too many intermediaries
- Low price realisation for farmers
- Poor storage and transport
- High wastage
- Farmer indebtedness
- Strong trader lobbies
 


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Subject: Economics

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