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Indian Economic Policy

Notes change in agriculture. It is only a fusion of technological and institutional changes that can
optimise the process of agricultural growth from the point of view of maximising production as
well as distributive justice. However, this fusion has not taken place yet. As a result, the
technological progress in the agricultural sector has been accompanied by growing inequality.
Although as a consequence of rapid agricultural growth, the wages of agricultural labourers
have risen in the green revolution areas of Punjab and Haryana. It has also been observed that
land is being treated by the rich farmers as a very valuable asset. Exploitation of tenants has not
declined and consequently, the fruits of agricultural progress are being pocketed by the rich
peasantry. This is the paradox of growing agricultural production and growing inequalities
and injustices.
(vi) Failure to control growth of rural population : The Government failed to arrest the rapid
growth of population in rural areas and also to create non-agricultural employment in the rural
sector so that those who could not be provided land in the programme of land redistribution
could be provided non-agricultural employment to eke out a living. A programme of enlarging
non-agricultural employment, if it could grow faster than the increase in total labour force,
could, after a period of time, help to reduce the excessive pressure of population on land.
Basically, the Planning Commission failed to appreciate the fact that the process of agricultural
transformation should emphasise not only higher growth rate in agriculture but should also
stress the need for a decentralised industrial pattern of growth with greater emphasis on labour-
intensive technology.
(vii) Unbalanced agricultural development : Bulk of the increase in output, particularly foodgrains
had been concentrated in a few progressive regions which were already enjoying high levels of
consumption of foodgrains. As a result, the marketable surplus of foodgrains had been rising at
a high rate in these states resulting in the accumulation of large stocks with the Government
with the attendant problems of storage and distribution and the cost of storage and distribution.
Many regions had continued to be poor and backward, indicating the necessity for a balanced
growth of agriculture as between different regions. Crop yields were low in these areas and,
therefore, the use of modern inputs in these areas would raise agricultural productivity
considerably.
Likewise, a break through in dry-land farming would help to raise the output of millets, pulses
and oilseeds and thus help to correct inter-crop imbalance. Small and marginal farmers
predominate in the dry-land farming regions and naturally, they will benefit most through
watershed programmes and national pulse and oilseed development programmes.
The various weaknesses of the agricultural sector mentioned above indicate the main concerns
and thrusts of the successive Five Year Plans. Outlining the strategies of agricultural development
during the Seventh Plan, the Planning Commission wrote : “Broadening the base of agricultural
growth and modernisation through infrastructure development e.g. irrigation, drainage, roads,
markets and credit institutions in the less developed regions, extension of new technology,
particularly break-through in dry-land farming, afforestation and appropriate price and
procurement policies for crops are essential for accelerating the growth of agricultural output,
reducing annual fluctuations in output and for correcting inter-regional, inter-crop and inter-
class disparities. Such a pattern of growth can also provide the necessary impetus to rural
development through the dispersal of agro-industries. This is how agriculture can contribute
more effectively to the fulfilment of the national objectives of self-reliance, removal of poverty,
increase in productivity and eco-preservation.”
11.2 Crop Patterns in India Since Independence

Crop Pattern Before Independence
By cropping pattern is meant the proportion of area under different crops at a point of time. A change
in cropping pattern implies a change in the proportion of area under different crops. At the begining
of the century, more than 83 per cent of land was put under food crops and about 17 per cent under

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