Commercialization of Agriculture and Impact of Commercialization of Agriculture PDF

Title Commercialization of Agriculture and Impact of Commercialization of Agriculture
Course Micro Economics
Institution Aligarh Muslim University
Pages 4
File Size 83.9 KB
File Type PDF
Total Downloads 37
Total Views 144

Summary

Commercialisation of agriculture is a phenomenon in which agriculture is governed by commercial considerations, i.e., certain specialised crops began to be grown for sale in national and even international markets rather than for consumption in villages. Agricultural commercialization began in India...


Description

Commercialization of Agriculture and Impact of Commercialization of Agriculture Commercialisation of agriculture is a phenomenon in which agriculture is governed by commercial considerations, i.e., certain specialised crops began to be grown for sale in national and even international markets rather than for consumption in villages. Agricultural commercialization began in India during the British colonial period. Toward the end of the 18th century, revolutionary changes in agrarian property relations occurred. When the industrial revolution in England picked up steam in 1813, the commercialization of Indian agriculture began. Around 1860 A.D., agriculture began to become more commercialised (during American Civil War which boosted demand of Cotton from India to Britain as Aerica was not able to export Cotton). The commercialization of Indian agriculture took place not to feed India's industries, but because India lagged behind Britain, France, Belgium, and many other European countries in the eighteenth century in terms of industrial development. The commercialization of Indian agriculture was done primarily to feed British industries, and it was only undertaken and achieved in cases where agricultural products were either required by British industries or could be sold for a profit in the European or American markets. For example, several efforts were made to increase cotton production in India in order to supply raw and high-quality cotton to Britain's cottontextile industries, which were rapidly expanding after the Industrial Revolution. As a result, India's cotton growing area grew, and the country's cotton production grew exponentially over time. Plantations of indigo, tea, and coffee, among other things, were encouraged in India because they had a commercial market outside the country. The English controlled the majority of commercial crop plantations. Jute was another product that the English company was interested in because jute-based products had a ready market in America and Europe. Cash transactions largely replaced the barter system as the medium of exchange. How Commercialization of Agriculture Happened? India is being commercialised. The British introduced agriculture to India through direct and indirect policies and activities. Agricultural land had become a freely exchangeable commodity thanks to the new land tenure system introduced in the form of permanent settlement and Ryotwari Settlement. The Permanent Settlement created a class of wealthy landlords by granting the Zamindars ownership rights, which they could exercise through the sale or purchase of land. Furthermore, agriculture, which had previously been viewed as a way of life rather than a business, began to be practised for the purpose of selling on the national and international markets. Furthermore, crops with high market demand, such as cotton, jute, sugarcane, ground nuts, tobacco, and others, were increasingly cultivated. Plantation crops such as tea, coffee, rubber, indigo, and others heralded a new era in Indian agricultural practises. These were primarily intended for markets, and with

the expansion of British rule, agricultural commercialization reached new heights. For the majority of Indian peasants, agricultural commercialization was a forced and artificial process. It was imposed on the peasantry as a result of British coercion, not because of popular demand. Under duress, the peasantry began cultivating commercial crops. He had to pay the British government the land revenue owed on time. Furthermore, he was forced to grow a commercial crop on a specific portion of his land under the yoke of planters. What Caused Commercialization of Agriculture in India during British Period? A variety of factors aided and encouraged the commercialization of Indian agriculture. The British established political unity, which resulted in the rise of a unified national market, was a significant factor. Agricultural goods became market items as a result of the spread of the money economy, which replaced barter. The colonial subjugation of India under British rule was the most important factor. India was reduced to a supplier of raw materials and food grains to the United Kingdom, as well as an importer of manufactured goods from the United Kingdom. To meet the demand in Britain, many commercial crops such as cotton, jute, tea, and tobacco were introduced. Competition and contract replaced custom and tradition, resulting in the commercialization of Indian agriculture. Better communication (along with the rapid development of railways and shipping) allowed for the trade of agricultural products, particularly over long distances. Grain merchants arose as a natural result of this, greatly facilitating agricultural trade. Another important incidental factor in agricultural commercialization was the monetization of land revenue payments. Another factor that aided agricultural commercialization in India was the acceleration of the Industrial Revolution in England. As more agricultural goods were produced to meet the demand for raw materials by British industries, commercialization became a factor. Commercialization of agriculture was also boosted by the expansion and expansion of international trade, as well as the entry of British finance capital. Commercialization of agriculture was accelerated by rising demand for some commercial crops in other countries. Indirectly, the American Civil War aided the commercialization of agriculture in India by diverting British cotton demand to India. Cotton demand remained high even after the civil war ended, thanks to India's growing cotton textile industry. The British policy of one-way free trade also acted as a sufficient motivator for commercialization, as manufactured textiles, jute, and other goods could freely enter Indian markets, whereas manufactured goods could not freely enter European markets. Peasants began growing commercial crops in order to repay money lenders in a timely manner. What was Impact of Commercialization of Agriculture The following are some of the effects of agricultural commercialization:

1) Increased Equality—Normally, this would have been a catalyst for increased agricultural productivity. However, due to poor agricultural organisation, obsolete technology, and a lack of resources among most peasants, this did not happen. It was only the wealthy farmers who benefited, which exacerbated income disparities in rural society. 2) Significant benefits to planters, traders, and manufacturers- The commercialization of agriculture benefited British planters, traders, and manufacturers, who were able to make huge profits by purchasing commercialised agricultural products at bargain prices. The commercialization of Indian agriculture benefited Indian traders and money lenders, who made huge fortunes by acting as British middlemen. 3) Increased reliance on moneylenders-The poor peasant was forced to sell his produce as soon as it was harvested at whatever price he could get in order to meet the demands of the government, the landlord, the money lender, and his family members. This put him in the hands of the grain merchant, who was able to dictate terms and buy his produce for a fraction of the market price. As a result, the merchant, who was often also the village money lender, reaped a large share of the benefits of the growing agricultural trade. Commercialization of agriculture did not encourage the expansion of the land market because the majority of the profits went to company traders and intermediaries. Indian moneylenders provided cash advances to farmers in order for them to cultivate commercial crops, and if the peasants did not repay the moneylenders on time, the land of the peasants became the property of the moneylenders. 4) Food Production Decline and Frequent Famines-The British policy of commercialising Indian agriculture harmed the majority of the Indian people. Due to the substitution of commercial non-food grains for food grains, the area under cultivation of food crops was reduced. Commercial crop production increased by 85% from 1893-94 to 1945-46, while food crop production fell by 7%. This had a devastating impact on the rural economy, and famines were common. 5) Indian People's Poverty- The misery was exacerbated by the fact that India's population was growing every year, land fragmentation was occurring due to increasing pressure on land, and modern agricultural production techniques were not introduced in India. As a result, the British commercialization of agriculture in India was one of the major causes of the Indian people's poverty. 6) Crop Specialization by Region- Crop specialisation by region, based on climatic conditions, soil, and other factors, was a result of the commercial revolution in agriculture. Cotton was grown in the Deccan districts of the Bombay presidency, jute and Indigo was grown in Bengal, opium was grown in Bihar, tea was grown in Assam, wheat was grown in Punjab, and so on.

7) Agriculture's Link to the World Market- Another important result of the agricultural commercial revolution was the agricultural sector's link to the world market. Price changes and business fluctuations in the global markets began to have an impact on the fortunes of Indian farmers in ways they had never experienced before. When it came to crop selection, the farmer prioritised market demand and price over his family's needs. Because of market imbalances, the peasantry has suffered. 8) Negative impact on self-sufficiency—Commercialization of agriculture had a negative impact on village economy self-sufficiency and was a major factor in the rural economy's decline. 9) Impact on traditional agriculture—relationship with industry— Traditional agricultural-industry relationships were impacted by commercialization. Traditional Indian relationships acted as stumbling blocks to each other's development. 10) No Technological Development-commercialization Agriculture's did not signal a commercial revolution. However, there was no technological revolution to support this. Because the health benefits that agriculture and related fields would have provided were not realised. Agriculture's commercialization had a mixed effect. While it aided Britain's industrial revolution, it harmed India's villages' economic self-sufficiency. The British introduced a new phenomenon in Indian agriculture: commercialization of agriculture. While the upper class and British industries benefited, the lives of Indian peasants were influenced by a distant international market. 11) Peasant Revolts-The most serious consequence of commercialization was the oppression of Indian peasants by Europeans. The famous Indigo revolt of 1859 was a manifestation of this. Furthermore, the commercialization of Indian agriculture resulted in a series of famines that claimed a large number of lives. 12)Positive Impacts of Commercialization of Agriculture: Despite its many negative consequences, commercialization was a progressive event in one sense. Commercialisation facilitated social exchange and allowed India's economy to transition to a capitalist model. India's economy became intertwined with the global economy as a result of commercialization. It paved the way for the development of a high-level social and economic system. Commercialisation made a significant contribution to economic integration. It also laid the groundwork for the country's economic development. Commercialization of agriculture resulted in the expansion of national agriculture, and the agricultural problem took on a national dimension. It also resulted in the efficient specialisation of crops by region....


Similar Free PDFs