Land Reforms
Land Reforms
Land Reforms
Agrarian Issues
UNIT 2
LAND REFORMS
Structure
2.0
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
2.15
2.0
Objectives
Introduction
Meaning and Objectives of Land Reforms
Land Reforms: Historical Perspectives
2.3.1
2.3.2
The Settlements
OBJECTIVES
2.1
describe and explain the generic issues involved in the process of land reforms;
enumerate the different components and the features of land reforms; and
identify the problems which need to be attended to.
INTRODUCTION
Since independence, the objectives of the Land Reforms Policy have been as follows:
restructuring agrarian relations to achieve an egalitarian social structure,
eliminating exploitation in land relations,
realising the age-old goal of land to the tiller,
increasing agricultural production, and
infusing equality in society.
Each state in India has its own legislation and programme of land reforms. It will not be
possible for us to go into the details of these variations, given the scope and space of this
unit. This unit aims at a brief review of the developmental changes regarding land
reforms in India. It discusses the meaning of land reforms, the historical context in
which they were introduced, the measures we have adopted and finally the new
developments. While you read about land reforms in this unit, you will read about the
Green Revolution in the next unit of this block. Taken together, they give you a reasonable
understanding of the agarian issues confronting rural development in India.
20
2.2
Green Revolution
The term land reforms specifically referes to land tenure reforms. The word tenure,
derived from the Latin word teneo, means to hold. Therefore, land tenure is used to
refer to the conditions under which land is held. Or, we may look at it as an arrangement
by which farmers hold or control land and the conditions that must be observed for its
use and occupancy. Land is expropriated or confiscated and redistributed in order to
maintain this system.
Land reforms are visualised as an instrument of social justice as they seek to do away
with exploitative relationships characterised by sharp class division between rich
landowning classes and impoverished peasants with no security of tenure. It is a step
against the concentration of land holdings in the hands of a few absentee/non-cultivating
owners, through imposition of ceilings on the size of holdings, which can be owned by a
family. Although land reforms are popularly understood to mean redistribution of land,
their scope is much wider (see Box 1).
Box 1
Components of Land Reforms
Land Reforms encompass mainly five components:
i)
ii)
Tenancy reforms;
iii)
iv)
v)
Land reforms alter the power structure, both economic and political, since land has
always been a source of wealth, income, status and a reflection of the interlocking class
and caste structure of Indian society. It empowers the actual tillers of the soil, and
enables them to seek development benefits from the state. Thus, they are also a means
of increasing agricultural production through land development, as the interest of peasants
in investing in the land they own grows significantly.
Apart from this, land reforms would also enable a more equitable distribution of land,
which in turn will generate incomes on a more equitable basis. The generation of such
incomes will lead to greater demand of industrial goods through increased purchasing
power among the lowest sections of society who do not posses any land whatsoever.
Thus, land reforms are seen as a way of not only increasing income and employment in
the agricultural sector, but also in the industrial sector.
Since, the nature of the problem varies widely in different regions, the policy on land
reforms requires a flexible approach to respond to the local requirements. For countries
with a large agricultural base, it is essential that land-man relationships are properly
defined. The Government has strived to change the ownership pattern of cultivable
land, but has had limited success so far. The abolition of intermediaries was a significant
achievement after independence. Contrary to it, the lack of progress in the other
components of the land reforms programme, viz. implementation of land ceiling laws,
security of tenure for tenants and consolidation of land holdings, remain a matter of
serious concern (10th Plan document) even today. Therefore, agrarian structure in the
country still continues to be as unequal as before. Even now, above 60 per cent of the
workforce is engaged in agriculture, majority of whom are either marginal farmers or
landless labourers living in abject poverty.
21
Rural Development
Agrarian Issues
We hope that the meaning and objectives of land reforms are clear to you now.
Check Your Progress I
Note: a) Use the space provided for your answers.
b) Check your answers with the possible answers provided at the end of
this unit.
1)
2)
2.3
It is important for us to understand the genesis of land reform measures in India. In this
section we will present a summary account of the origin and the historical developments,
which gave shape to concerns about land reform measures in the post- independence
era. In this section, you will come to know about the structural changes in the land
related policy during the pre-independence as well as the post-independence period.
22
When the British came to India, they first tried to collect revenue through professional
tax collectors and later by auction to the highest bidder. This system failed before long.
Between 1770 and 1793, the device of permanent settlement of revenue, with zamindars
having proprietary rights on land, was introduced. After the British established their
right to collect land revenue, all thitherto de facto authority over land became de jure.
New rights were conferred and new settlements followed. The type of settlements to
be made and the criteria on which revenue was to be collected were finalised by the
British authorities after many years of debate and deliberations.
Green Revolution
Since the British had to consolidate their position in India, need was felt to regularise the
revenue collection system, which they did by working out different settlements with the
different sections of the peasantry in different regions.
b)
the Jagirdari system in which the zamindar did not have proprietary rights on the
soil, but enjoyed the right to collect land revenue;
c)
the Ryotwari system, whereby the Government settled the rents directly with the
ryots (cultivators) without the intervention of an intermediary. This settlement was
applicable to western and southern India; and lastly
d)
Mahalwari system, by which the land belonged to a small group of families who
were usually the most powerful in their region and were responsible for paying rent
to the state. This settlement covered the north and north-western provinces of
India.
23
Rural Development
Agrarian Issues
concentration of land in the hands of a few continued to grow and landlessness, hunger,
unemployment and indebtedness reached unprecedented hights. Eviction and insecurity
of tenancy aggravated the problems, whioch needed to be addressed immediately in
independent India.
Having gone through the above details, you must appreciate the context in which the
need to recast the land reforms policy was felt after independence. Now, we will discuss
the steps taken to address those concerns.
Check Your Progress II
Note: a) Use the space provided for your answers.
b) Check your answers with the possible answers provided at the end of
this unit.
1)
What were the different land related settlements drawn up by the British?
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2)
2.4
P.C. Joshi has pointed out that attempts to directly alter the pattern of the distribution of
land holdings assumed the form of four types of approach in land reforms:
i)
Land reform from above through statutory enactments made and implemented
by the state legislatures on the lines broadly indicated by the Central Government.
ii)
Land reform due to the pressures of militant peasant action from below (Telengana
and Naxalbari movements, for instance) and to some extent, land grab movement
by various left peasant organisations.
iii) Land reform from below by persuading landlords and through peaceful pressure
by peasants (e.g. bhoodan and gramdan movements under the leadership of Vinoba
Bhave).
iv) Land reform through legislative enactments from above in combination with
peasant mobilisation from below (e.g. controlled land seizure in West Bengal
under the United Front Government during 1967-69 and protection of poor peasants
in Kerala under CPI Ministry).
24
Land reform continues to be a state subject, but the Central guidelines provide the
framework and the direction for enactments by the state legislatures and implementation
of land reform measures by agencies of the state governments.
Green Revolution
We shall now discuss some of the major concerns expressed in these guidelines and the
shape that they intended to give to the crucial programme of land reform.
Following the policy directive of the First Five Year Plan, wherein increasing agricultural
production was accorded top priority, the Government set up a Central Committee for
land reforms to review from time to time the progress of land reforms in different
regions and to advise the states on their land reform proposals. The Plan document
stressed that the main outlines of the policy would have to be conceived in terms of
different interests in land, viz. those of a) intermediaries, b) large owners, c) small and
middle level owners, d) tenants at will and, e) landless workers.
The first major landmark in land policy came with the report of the Congress Agrarian
Reform Committee, 1949, under the chairmanship of J.C. Kumarappa (see Box 2).
The Committee was in favour of abolishing feudal intermediaries. Even the intermediaries
that existed below the zamindars and jagirdars were proposed to be got rid of.
Box 2
Recommendations of Kumarappa Committee
Elimination of all intermediaries between the state and the actual tillers of
soil.
Subletting of land to be prohibited except in the case of widows, minors and
other disabled owners.
Providing full occupancy rights on the completion of six years of tenancy.
Restrictions on the resumption of land by the landowner under the pretext of
self- cultivation.
Safeguarding the position of tenants in the cases of resumption of land by
land owners.
Financial (institutional) support for tenants to realise the above measures.
Fixation of reasonable rent.
Setting up of a separate Central Land Commission along with an independent
machinery vested with the necessary powers to quicken the pace of land
reforms.
Before formulating the proposals for the Second Five Year Plan (1956-61), the Planning
Commission constituted a Panel on Land Reforms with the aim of reviewing the progress
in the implementation of land policy proposed in the First Plan and studying further steps
in connection with the Second Plan.
Detailed proposals on land reforms were set out in the Second Plan for:
tenancy reforms (regulation of rent, security of tenure for tenants, and conferment
of ownership on them);
agrarian reorganisation, including consolidation of holdings and prevention of subdivision and fragmentation.
The proposals in the Second Five Year Plan were essentially in the nature of a broad
common approach which had to be adapted and pursued in each state with due regard
25
Rural Development
Agrarian Issues
to local conditions and in response to local needs. In November 1969, the Chief Ministers
Conference, convened by the Ministry of Food and Agriculture, emphasised the need
for a Central body for watching the progress on land reforms and providing guidance to
state governments.
In September 1970, a subsequent Conference of Chief Ministers on Land Reforms held
in Delhi decided that the entire range of problems connected with land should be referred
to a Central body. Accordingly, the Central Land Reforms Committee was constituted
under the chairmanship of the Union Minister of Agriculture. It looked into the question
of ceiling, exemption, compensation, distribution of surplus land, and implementation of
reforms.
The Draft Fifth Five Year Plan (1974-79) gave its assessment of land reforms in the
following words:
the laws for the abolition of intermediary tenures have been implemented fairly
efficiently, whilst in the fields of tenancy reform and ceiling on holdings legislation, it has
fallen short of the desired objectives and implementation of the enacted laws has been
inadequate.
The National Commission on Agriculture (1976) in its report on Policy and Strategy
emphasised that for optimum results from agrarian restructuring, the programmes of
land reform, consolidation of holdings, land development, irrigation and drainage should
be integrated and executed in a proper sequence.
The Sixth Plan (1980-85) observed that the less than satisfactory progress of land reforms
has not been due to deficiencies in the policy but rather due to tardy implementation of
reforms and conferment of ownership rights. Both the Sixth and the Seventh Plans
stressed therefore, the effective implementation of the land reforms policy covering all
the policy instruments (see Box 1). The Seventh Plan enunciated land reforms to be an
intrinsic part of anti-poverty strategies and their need has been reiterated in every
successive Plan.
The Eighth Plan (1992-97) stressed that landlessness is a root cause of rural poverty.
The Plan set seven objectives of land reforms as follows:
26
To enforce the ceiling laws stringently as the small and marginal farms were viable
in terms of efficiency and equity,
The poor should be given access to wasteland and common property resources,
Updation of land records was considered a necessary pre-requisites for the success
of the reform policy
Green Revolution
The Tenth Plan (2002-07) admits that the need for the effective implementation of the
existing land ceiling laws cant be over-emphasised. The changes in the agrarian economy
warrant a fresh look at tenancy laws, which may need to do away with all restrictive
tenancy conditions. Farmers owning land below the ceiling limit may be provided a
guarantee that their land would not be taken away. The fixation of rent could be left to
the market forces. Given the extent of concealed tenancy in states that have banned
tenancy, it is not likely to increase the area under tenancy dramatically in the short run.
In the medium- to long-term, however, more land is expected to come on the land lease
market which can be accessed by the rural poor.
Keeping this in view, the National Agricultural Policy (2000), inter alia, gave emphasis
to the following issues to be accorded utmost attention for rural development and land
reforms:
i)
Consolidation of holdings all over the country on the pattern of North -Western
States;
ii)
Redistribution of ceiling surplus lands and waste lands among the landless farmers,
unemployed youth together with some initial start up capital;
iii) Tenancy reforms to recognise the rights of the tenants and share croppers;
iv) Updating, improvement in and computerisation of land records and issuing land
pass-books to farmers; and
v)
2)
What were the major issues highlighted in the Ninth Plan to accelerate land
reforms?
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27
Rural Development
Agrarian Issues
2.5
Legislative measures for the abolition of intermediary tenure started with Uttar Pradesh
with the Zamindari Abolition and Land Reform Act of 1950 of U.P. followed by
legislations in other states. The pattern of land ownership is a key element for ushering
in change. Since the Zamindari Abolition Act of U. P. was hailed as an agrarian
revolution, you may be interested in knowing its key elements. These were:
i)
It abolished all rights of zamindars and jagirdars and put a ban on further acquisition
of land.
ii)
iii) The vast mass of the peasantry was freed from all illegal exactions in cash, kind
and services.
iv) Land records were created and survey and settlement was carried out in these
areas.
v)
While the Act ushered in a new era, it was not without any weaknesses. First, an unduly
high price was paid by way of compensation to the erstwhile intermediaries, in addition
to a number of other benefits like debt settlement and interim compensation. Further, in
the name of khudkasht of land under self-cultivation, many of the old landlords were
able to retain extensive areas under their control leading to dispossession and eviction of
a large number of tenants.
Thus, while the tenurial patterns changed, they did not lead to any effective improvement
in the position of the poorer (evicted) tenants, the sharecroppers and the agricultural
labourers. The Act had not clearly envisaged any radical redistribution of land. Many of
the old relationships between the owners of the land and those with tenancy rights were
retained.
By 1954 almost every state had passed Land Reform legislation on priority basis for the
abolition of intermediary tenures on payment of compensation, as a result of which 20
million tenants were brought into direct contact with the state. Moreover, it is important
to note that what is supposed to have been abolished is only the topmost layer of a
hierarchy of intermediaries and not intermediaries as a class.
2.6
TENANCY REFORMS
Leasing of land on a large scale in areas where settlement was made directly with the
ryots and sub-leasing where intermediaries existed, were common practices in the past.
Rents were high and there was very little security of tenure. Three important guidelines
were laid down by the Plans, which became the major components of tenancy reform.
They are:
i)
ii)
28
In several states, however, the existing legislation in relation to tenancy reforms falls far
short of the accepted policy because of the lack of sharpness in the definition of personal
cultivation, which did not include family labour as a compulsory element. Large-scale
eviction of tenants, aided by the device of voluntary surrenders, was carried out under
this pretext.
Green Revolution
Many of the voluntary surrenders were open to doubt as bonafide transactions. The
Second Five Year Plan had recognised this and recommended that:
i)
all so called voluntary surrenders should be checked and registered by the revenue
authorities before they could be accepted as valid;
ii)
iii)
those legal rights to resume should be restricted by sharply redefining the concept
of personal cultivation.
It was felt necessary to strictly enforce the provision of personal cultivation and restrict
future transfers of agricultural land to persons residing in the same village or in an
adjacent village.
Let us now look at the different aspects of tenancy reform in a somewhat greater
detail.
a)
Security of Tenure
The most important and probably the most significant provision for regulating tenancy
has been the measure of security to the tenants. Such security provides incentive for
carrying out improvements in land, increase its productivity and enable the tenant to
retain an equitable share of the produce. The following steps provide for security of
tenure:
restrictions on ejectment;
The land tenure system (minimum period of tenancy prescribed) in the country varied
from state to state. At the beginning, it ranged from 5 to 10 years with a provision for
automatic renewal. Such a provision would have been useful if leasing was always on
record. In rural areas, however, oral agreements with legally unacceptable terms continue
to be a common practice even today.
Restrictions on ejectment of tenants were incorporated in the laws from a very early
date in the history of legislation for land reform. It has often been done by prescribing
the grounds on which a tenant can be ejected. These include:
leaving the land uncultivated without adequate reasons (this is applicable in some
states).
By the Third Plan (1961-66), legislation providing security of tenure had been enacted in
11 states and in all Union Territories. Insecurity of tenure existed under the garb of
29
Rural Development
Agrarian Issues
voluntary transfer. The gap between legislation and implementation continued. Legislation
for security of tenure had three essential aims. They were:
ejectments do not take place except in accordance with the provisions of the law;
land may be resumed by an owner if at all, for personal cultivation only; and
The Fourth Plan (1969-74), noted with concern that under the system of informal tenancy
and sharecropping neither the landlord nor the tenant was investing in the improvement
of land productivity, thus impeding the modernisation of agriculture. In order to bring a
sense of security among tenants, it suggested measures for declaring tenancies nonresumable and permanent, regulating voluntary surrenders, implementing legislation
related to security of tenure, penalizing wrongful evictions, and securing tenure in the
cases of homestead lands. These measures were pursued in the subsequent plans.
Ejection of the tenants took place on a massive scale through voluntary surrenders or
by resuming the tenanted land by the landowner for personal cultivation. This right of
the landowner was widely used to dispossess tenants in many parts of the country.
Therefore, during the Second Plan, all the states framed provisions for resumption broadly
on three different patterns:
Full security was given to all tenants giving the owners the right of personal cultivation.
Owners were given the right to resume a limited area (not more than a family
holding) subject to the condition that a minimum area was left with the tenant.
Limit was fixed on the extent of land, which a land-owner may resume, but the
tenant was not entitled to retain the minimum area for cultivation in all cases.
The second type of legislation has by and large been accepted by the major states
(Gujarat, Kerala, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Himachal Pradesh,
Assam and Punjab).
b)
Regulation of Rent
The issue of rent in our context implies extractions made by the land owning section
from the non-owner cultivators, be it tenants or share-croppers. This has been an inherent
aspect of the tenurial arrangements. Rates of rent happened to be the basic issue that
caused the first legislative intervention in the country, incidentally in Bengal.
Regulation of rent, in a situation where the ownership of land is in the hands of a few, is
not an easy job. It is necessary to have very effective, impartial and well educated
administrative machinery reaching down to the village with a foolproof system of recording
of contracts and observance of such contracts with some sense of equity and freedom
from exploitation. The rights and obligations should be known and respected by both the
parties with a minimum of administrative interference. These are exactly the factors
missing in the rural scene. Ownership in the hands of a few powerful persons, and
an illiterate and socially and economically deprived group of people depending on them
for survival, makes the observance of rules impossible.
30
The general policy for regulating rents had been to keep the rent changeable with the
paying capacity of the cultivator. In the country as a whole, the rate of rent varied
between 34 to 75 per cent of the produce. To regularise it, the First FYP stated that thr
maximum rent should be fixed at one-fourth or one-fifth of the total produce. Legislations
fixing the maximum limit of rent, however, have been violated quite often. For instance,
while in Bihar, the maximum limit is 25 per cent of the gross produce, share-croppers
are usually required to pay 50 per cent. Customary rates of rent continued to prevail for
a long time and may still hold true for some parts of rural India. It is only in areas where
there is an organised force of share-croppers, tenants, etc. that certain norms are
established, although these may still not tally with the all India guidelines. Being ignorant
of the rights granted by legislation, the tenants do suffer at times. Further, where there
is pressure on land and the social and economic position of the tenants is weak, it
becomes difficult for them to seek the protection of law.
Green Revolution
There was a move to shift from rents paid in kind to rents in cash. The Second Plan
suggested that commutation of rents in kind into cash payments might be facilitated if,
with due regard to variation in each district, rents could be declared as multiples of the
prevailing land revenue assessment. Moreover, operationalising the legislation is not an
easy task as long as the concentration of land holdings, and political and social power
continues to be in the same hands that determine the extent to which land reform measures
can be allowed. It is this concentration of power that needs to be altered.
c)
The policy of land to the tiller was expounded as early as 1948 by the Congress Agrarian
Reforms Committee through provisions like:
rights of pre-emption or first option to purchase the land if the land owner wanted
to sell it;
right of voluntary purchase when the tenant can, at any time, make an offer to
purchase the tenanted land according to the procedure laid down;
conferment of the ownership right of the tenancy land on the tenant from a specified
date by a notification, according to the provisions made in the law.
The ultimate objective of tenancy reform is to confer ownership rights on tenants and
share-croppers who are tilling the soil, so that the absentee landlordism is completely
eliminated. The failure to ensure full security for the tenants has often been attributed
partly to the implementing machinery and partly to the existing conditions of production
in Indian agriculture. The following are the major factors that contribute to this situation:
interlocking of (land) lease, labour and credit markets in which the poor tenants and
the landless are the natural losers.
In a number of states, governments followed three ways for bringing tenants of nonresumable lands into direct relationship with the government:
through the acquisition of the landlords rights by government and bringing tenants
into a direct relationship with the state, option being given to tenants to continue as
such on payment of fair rent to the government or to acquire full ownership on
payment of the prescribed compensation.
In the course of the Third Plan (1961-66), steps were to be taken to complete the
programme for conferring rights of ownership on the tenants of non-resumable lands.
As a result, about 11.2 million tenants acquired ownership rights over 15.3 million hectares
of land.
31
Rural Development
Agrarian Issues
Box 3
Distribution of lands among cultivators, 1995-96
Category of holdings No. of operational
in hectares
holdings (000 number)
Area operated
(000 hectares)
Average size of
operational
holdings (hectare)
Marginal (< 1)
71179 (61.6)
28121 (17.2)
0.40
Small (1- 2)
21643 (18.7)
30722 (18.8)
1.42
Semi-medium (2-4 )
14261 (12.3)
38953 (23.8)
2.73
7092 (6.1)
41398 (25.3)
5.84
1404 (1.2)
24163 (14.8)
17.21
115580 (100.0)
163357 (100.0)
1.41
All Holdings
2)
32
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2.7
Green Revolution
In January, 1959, at the Nagpur Conference of the Indian National Congress, it was
resolved that agrarian legislation to cover restrictions on the size of land holdings must
be implemented in all states by the end of 1959. The idea was to reduce the extent of
inequality in the ownership of land. It was realized that social inequalities and exploitation
cannot be eliminated unless ceilings are imposed and the surplus lands are distributed
among the landless and marginal workers. The policy on ceiling, however, remained
unclear. Finally, it was introduced in two phases:
a) Phase 1: Pre-revised ceiling laws (1960-72)
The question of whether the family or the individual should be the unit for the application
of ceiling laws was debated in the Second Plan. The important issue was the treatment
of transfers of land on the part of the landowners subject to ceilings. Since the enactment
of the ceiling laws, transfers of land have tended to defeat the aims of the legislation for
ceiling. Whether a transfer should be disregarded and from which date became an issue
in every state.
Transfers were taking place among the family members. This was advantageous to the
landed section where the unit of application was the individual. It was suggested that
the ceiling should apply invariably to the aggregate held by a family rather than to
individuals. Keeping in view the fact that ceilings had already been applied in several
states to individual holdings and to aggregate area held by a family in the other states, a
way had to be worked out to balance the disparity and discrepancies.
By the time of the Fourth Plan (1969-74), it was realised that due to ineffective
implementation of the existing legislation, only about 964,800 hectares had been declared
surplus, out of which about 640,000 hectares was taken possession of by the State
Governments. The delay in taking possession of the entire land was due to hurdles
inherent in the policy framework. Compensation was being given to those who owned
land above the ceiling. Thus, in states like Andhra Pradesh, the government decided to
take possession of lands only when funds were available for paying compensation. In
West Bengal and Gujarat, for example, work was held up due to litigation resorted to by
substantial landholders.
There were also administrative and legislative hurdles and the problems arising from the
inferior quality of land surrendered by the landholders. These issues came up before the
Chief Ministers conference held in November 1969, when it was decided to review the
legislative provisions pertaining to the level of ceilings, transfers and exemptions in the
light of contemporary technological developments (during Green Revolution) and social
requirements. It was also considered necessary to quicken the pace of implementing
ceiling laws and the distribution of surplus land to the landless agricultural workers.
b)
Phase II: Revised ceiling laws after the National Guidelines (1972)
Following the Chief Ministers Conference, it was found that the acreage mobilised by
land reforms was much smaller than expected. The ineffectiveness of the ceiling laws,
the exigencies of agricultural production and the agrarian unrest in the form of land grab
movement in the country led to a review of the ceiling legislation. The Central Land
Reforms Committee was set up in 1971 to study the problem, which ultimately laid
down the national guidelines for future legislation on land ceilings.
The main features of the policy were:
i)
For irrigated land, the basic ceiling should range from 10 to 18 acres (4 to 7.2
hectares) of irrigated land with two crops for a family of five persons, including
husband, wife and minor children. This might vary from state to state or state and
in regions according to the fertility of soil and other factors;
33
Rural Development
Agrarian Issues
ii)
For other land, water, productivity, soil, crops, etc. should be considered, but the
upper limit should be 54 acres (21.9 hectares) for a family of five;
iii)
All exemptions for modern, mechanised, etc. farms should be abolished; and
iv)
Exemptions for plantations (tea, coffee, rubber, etc.) should be considered in the
states and discussed again with the Chief Ministers to formulate a more uniform
national policy.
To consider these recommendations, the Chief Ministers Conference was held in July
1972, which approved the national guidelines. The states enacted legislation or amended
the then existing Act suitably, incorporating the suggestions contained in the guidelines
(see Box 4). Consequently, a large degree of uniformity was attained. Most of the
states accepted January 24, 1971 as the recommended date for giving retrospective
effect to the law in the National Guidelines.
Box 4
Ceilings on Land Holdings (in hectares)
State
Irrigated land
with two crops
4.05 to 7.28
10.93
21.85
Andhra Pradesh
4.05 to 7.28
6.07 to 10.93
14.16 to 21.85
6.74
6.74
6.74
Bihar
6.07 to 7.28
10.12
12.14 to 18.21
Gujarat
4.05 to 7.29
6.07 to 10.93
8.09 to 21.85
Haryana
7.25
10.90
21.80
Himachal Pradesh
4.05
6.07
12.14 to 28.33
3.6 to 5.06
5.95 to 9.20
Karnataka
4.05 to 8.10
10.12 to 12.14
21.85
Kerala
4.86 to 6.07
4.86 to 6.07
4.86 to 6.07
Madhya Pradesh
7.28
10.93
21.85
Maharashtra
7.28
10.93
21.85
Manipur
5.00
5.00
6.00
Orissa
4.05
6.07
12.14 to 18.21
Punjab
7.00
11.00
20.50
Rajasthan
7.28
10.93
21.85 to 70.82
Sikkim
5.06
20.23
Tamil Nadu
4.86
12.14
24.28
Tripura
4.00
4.00
12.00
Uttar Pradesh
7.30
10.95
18.25
West Bengal
5.00
5.00
7.00
Assam
Irrigated Land
with one crop
Dry land
Most of the ceiling laws have been included in the Ninth Schedule of the Constitution
of India. This provides immunity against any challenge in courts of law on the ground of
alleged infringement of the fundamental rights guaranteed in the Constitution. Though
exemptions were reduced in the revised ceiling laws, certain categories of land continue
to be exempted from ceiling. This left ample scope for evasion of laws through the
device of shifting lands to the exempted categories. Some of those categories were:
34
Land held by the State or the Central Government, any institution (agricultural college/
university) conducting research and imparting education, etc.
Plantations of coffee, cocoa, tea including the land used for any purpose ancillary
thitherto.
Lands owned by sugarcane factories solely for research and seed farming.
Green Revolution
Review of the implementation also pointed to the fact that there was little linkage
between this Central programme and the others. Jurisdiction of civil courts was barred
in respect of land reform cases because of their inclusion in the Ninth Schedule of the
Constitution in 1990. Now we hope to look forward to a large cultivable area coming
under direct possession of the Government.
At the end of the Eighth Plan (1992-97), 2.30 million hectares were declared as ceiling
surplus and out of that 2.09 million hectares were distributed among 5.5 million
beneficiaries. By the end of the Ninth Plan, the position was virtually the same.
There has been no progress in the detection of concealed land and its distribution
to the landless rural poor.
Since, the assignees of ceiling surplus land are also the targets of other poverty alleviation
programmes like IRDP, NREP, RLEGP, etc., it was decided to follow an integrated
approach by pooling together resources available under different programmes to undertake
activities like rural housing, drainage, link roads, social and farm forestry, land development,
minor irrigation schemes in compact areas, etc. in the subsequent plans.
2.8
CONSOLIDATION OF HOLDINGS
Sub-division and fragmentation of holdings chiefly arise from the customary practice of
partitioning of land among the heirs. As a result, in successive generations, holdings not
only become smaller but also get dispersed in fragments. The growing population only
increases the pace of this process. On the other hand, consolidation of fragmented
holdings helps in improving the agricultural production as well as in providing common
services to small holders.
Consolidation of holdings was attempted in isolated experiments in different parts of the
country, mainly under the aegis of the cooperative movement. The need for consolidation
of holdings was realised way back in 1917 and therefore, All India Board of Agriculture
drew the attention of the local governments to draw up remedial measures in consultation
with the Registrars of Cooperatives Societies. It was only in 1928, however, that the
case for consolidation was finally established with the recommendations of the Royal
Commission on Agriculture.
The process of the evolution of legislation on consolidation of holdings was a slow one
and had two distinct phases. The first phase that started with the Baroda Act in 1920
did not impose any compultions. The implementation/application was purely on voluntary
basis. It was with the Central Provinces Consolidation of Holdings Act, 1928 that a
graduated degree of compulsion for consolidation was introduced. The second phase is
marked by the Bombay Prevention of Fragmentation and Consolidation of Holdings
Act, 1947, which provided for compulsion to be exercised by the state for enforcing
consolidation.
The Tenth Plan (2002-2007), reviewed the situation and stated that the progress on the
consolidation of land holdings has been slow. Most states have stopped consolidation
proceedings. As on 31 March 2003, the total area consolidated was 66.10 million
hectares, against a total cultivable area of 142 million hectares.
35
Rural Development
Agrarian Issues
advantage of having land in fragmented parcels in the event of floods and other
natural calamities as the risks get distributed;
the apprehension that the bigger farmers would get a better deal in terms of being
the major beneficiaries of the better quality land.
2.9
ii)
iii)
merging the offices of the Sub-Registrar and Tahsildar for better maintenance of
land records.
The Ministry of Rural Development (MoRD) brought out a Vision Document for
Computerisation of Land Records in 1999 to bring uniformity in land
administration. This document, for the first time, spoke about the standardisation of a
Land Information System for and the identification of core data fields across the
country, which would be useful for planning purposes, implementation of uniform modern
36
procedures to conduct cadastral surveys and generate land records, conversion of Land
Records Administration into a financially self-sustaining activity, etc. Formulating and
implementing a national policy on land records in the new millennium is now due.
Green Revolution
By now, we hope you fully appreciate the various facets of the policy pertaining to Land
Reforms in India and their genesis and progress. In the followign section, we will have
a glimpse of the new developments directed to achieve the long-term objective of
achieving social equity.
Check Your Progress V
Note: a) Use the space provided for your answers.
b) Check your answers with the possible answers provided at the end of
this unit.
1)
Mention three ways in which ownership rights can be conferred on the tiller.
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
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.................................................................................................................
2) What benefits accrue from the consolidation of holdings and what are the
apprehensions of farmers in this regard?
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
37
Rural Development
Agrarian Issues
i)
ii)
they retain their land, in the sense, they never surrender their right to land;
iii)
iv)
v)
everyone gets a share in the produce according to the land contributed and labour
performed.
Co-operative farming movement in India, however, failed to achieve its much repeated
objective of raising farm productivity. The Fourth Plan (1969-74) reviewed the progress
and stated that although co-operative farming had been officially accepted, no substantial
progress was made in actual practice. In the subsequent Plans, therefore, no special
effort was made to organise any co-operative farms.
Now, contract farming arrangements are coming up as an alternative device for
achieving the same twin objectivesraising farm productivity and increasing the earnings
of small farmers. It should be helpful in providing the necessary forward and backward
linkages to agriculture as well as to agro-processing industries. It provides for a contractual
arrangement between the industry and the raw material producing farmers. The industry
provides a forward linkage to the farmers in terms of purchasing their produce and
backward linkage in the form of assured supply of all critical inputs. Contract farming
helps in raising the yields and income of the farmers irrespective of farm sizes (see
Box 5). Contract Farming is a halfway house between independent farm production
Box 5
Contract Farming: Case Study
In Punjab, Hindustan Lever Limited (HLT) has contractual arrangements with
farmers for tomato cultivation. The company provides hybrid seed to the farmers
on credit basis and takes care of other capital and technology needs of the farmers.
Since the price of output is pre-decided under the contract, farmers dont have
the risk of price fluctuations. Against this, the company has sufficient and regular
supply of raw materials of desired quality. As a result, net income of farmers
under contract increased up to Rs. 20,000 per acre in Amritsar district as against
that of Rs. 10,200 for non-contract farmers. However, sometimes violation of
contracts was reported from both sides. Obviously, creating a conducive
environment and legalizing contract farming by the government will protect the
interests of both the parties and will go a long way in achieving the social objective
of land reforms.
Source: T. Haque (2003)
has been strengthened by making provisions in the law regarding termination of tenancy,
eviction of tenants, surrender by tenants and purchase of tenanted land by the tenants.
Green Revolution
Since land reforms constitute a state subject, the Central Governments role is
restricted to formulating general directions on this issue and persuading the state
governments to take them up for implementation. The political will on the part of
the state governments to enforce the legislation is weak, and the bureaucracy
rather indifferent.
ii)
Legal definitions of the terms have left room for different kinds of interpretation
affecting the process of realising the goals of the programmes.
iii)
iv)
There remains a wide gap between the land distributed and its actual occupation
by the beneficiaries, which is obstructed by physical prevention and litigation (the
beneficiaries like landless labourers and poor peasants can hardly afford it).
v)
Local civil organisations have to come up with innovative ideas to rectify inequities of
land ownership in the rural areas, like in case of the Pani Panchayat in Ralegaon Siddhi
in Maharashtra. Under this, every member of the village, irrespective of the size of his
land holding, has a proprietary right over the harvested water for irrigation. As the
water available to each member is limited, members with large land holdings have been
persuaded to lease their land to small and marginal farmers and agricultural labourers
who have water rights but no land. The arrangement has allowed the landless access to
land. The large landholders have also benefited as they receive rent for land, which
would otherwise have remained fallow for lack of irrigation.
Box 6
Under various ceiling laws, till September 1998, 3.04 million hectares of land
has been declared surplus, 2.15 million hectares have been distributed to
5.54 million beneficiaries mostly belonging to weaker sections. In addition,
about 0.88 million hectares of Bhoodan land and 5.97 million hectares of
wasteland have also been distributed.
Legislative provisions have been made for consolidating holdings and 64.08
million hectares of land has been consolidated in the country so far.
Rural Development
Agrarian Issues
Taking over possession of wasteland after going through the relevant quasi-judicial
and other administrative processes.
Provision for the consumption and the production credit to enable the new allottee
to start cultivation without getting into the debt trap of the former patron with the
eventual possibility of alienating the land.
Initiation of the legal process to establish tenancy rights and to register names in the
record of rights.
Legal and physical support to tenants against their eviction from the homestead, as
most of the tenants in a number of areas live on landowners land as mere permission
possessors.
2.12
LET US SUM UP
We have seen that land reforms, leading to structural equity in the distribution of land,
are an essential prerequisite for economic development through agricultural
40
transformation. In addition, the efficiency of land use and land management, and protection
of the land rights of the tribals and women have assumed great significance in the
context of the changes that are taking place in rural India.
Green Revolution
We have reviewed the progress in various components of land reforms such as abolition
of intermediary tenures, tenancy reforms, ceiling on land holdings, distribution of surplus
land, consolidation of holdings, and compilation and updating of land records.
We have observed how land reforms are being integrated into the overall poverty
alleviation strategy to maximise its impact and the support mechanisms that are proposed
for its speedy implementation. We have also indicated the steps that need to be taken to
consolidate the gains from land reforms.
Finally, we have worked through the recent changes occurring across the states under
the new economic regimes, where lowering of the land ceiling does not appear to be the
ultimate solution. Under open economies, every produce has to come to the market with
the lowest possible price, which needs inter alia economies of scale. All this needs
different strategies, other than the mere distribution of small plots of land to the poor, for
providing gainful employment round the year.
2.13
KEY WORDS
Benami
Cadastral Survey
Contract Farming
Credit Market
Khudkasht
Labour Market
Land Market
Rentier Interest
Reverse Tenancy
Rural Development
Agrarian Issues
Share-cropper
Those who acquire the usufruct right of the land from the
owner on condition that in lieu they would pay a share of
the produce to the owner.
Tenants
Those who enjoy the usufruct right over the land owned
by others in lieu of a fixed amount of rent in cash or in kind
to be paid yearly or seasonally. Tenants are of two types:
occupancy tenants and tenants-at-will. The usufruct rights
of the former are hereditary, while the latter do not enjoy
the same rights and their contracts are renewed periodically
at the owners will.
Under-raiyats
Usufruct Right
2.14
Behuria, N.C., 1997, Land Reforms Legislation in India, Vikas Publishing House Pvt.
Ltd., New Delhi.
Haque, T., 2003, Land Reforms and Agricultural Development: Retrospect and Prospect
in Institutional Change in Indian Agriculture (eds. S. Pal, Mruthyunjaya, P.K. Joshi
and Raka Saxena), 2003, National Centre for Agricultural Economics and Policy
Research, New Delhi.
Haque, T. and A.S. Sirohi, 1986, Agrarian Reforms and Institutional Changes in
India, Concept Publishing Company, New Delhi.
Indias Five Year Plans, 2003: Complete Documents, First Five Year Plan (195156) to Tenth Five Year Plan (2002-07), Academic Foundation, New Delhi.
Joshi, P.C., 1975, Land Reforms in India, Trends and Perspectives, Institute of
Economic Growth, Delhi.
Joshi, P.C., 1978, Land Reforms Implementation and Role of Administrator in
Economic and Political Weekly, September, pp A78- A83.
Land Reforms in India 1998-99: Sage Publications, New Delhi.
Russell King, 1977, Land Reform: A World Survey, Westview Press, Colorado.
42
to ensure social equity as ceiling surplus land is distributed among the landless
poor Social objective;
to avoid social unrest caused by high levels of inequality in the society Political
objective.
2)
tenancy reforms;
Green Revolution
2)
Permanent settlement
Malguzari settlement
Jagirdari system
Raiyatwari system
Mahalwari system
Unfair returns to the actual tiller due to high rents/share of agricultural produce
to be given to the owner of the land.
2)
The main issues highlighted in the Ninth Plan include redistribution of ceiling surplus;
enforcement of ceiling laws; recording of the rights of tenants/share-croppers;
leasing of land to be made permissible; access to wasteland and common property
resources by the poor and ensuring land rights of women.
2)
Regulation of rent.
Security of tenure.
Conferment of ownership.
Restrictions on ejectment.
Rural Development
Agrarian Issues
2)
Right of pre-emption or the first option to the tiller to purchase the land if the
landowners want to sell it.
Right of voluntary purchase when the tenant can make an offer according to
the procedure prescribed.
44
Legal loopholes and flaws which prevent actual possession of the land
distributed.