Transcript Implications of India*s Land Policy: Poverty of Land or Land of

Implications of India’s Land Policy:
Poverty of Land or Land of Poverty
- An Empirical Study
Anjan Kumar Jena
Suresh Kumar Sukumarapillai
New Delhi, India
1. Introduction
Area
under
Agriculture
(including Culturable Waste,
Grazing land, Miscellaneous
Tree Crops and Grooves)
Share of Agriculture in GDP
62.8%
1950-51 – 56.5%
2012-13 – 14.3%
Share of Agricultural Workers to 1950-51 – 69.8% (97 Mn)
Total Work Force
2012-13 – 54.6% (263 Mn)
New Land Policy - Right to Fair Compensation, Transparency
in Land Acquisition, Rehabilitation, and Resettlement
(Amendment) Bill, 2015
2. Macro Performance of Agriculture
Table-1: Agriculture and Allied Sectors, GDP, and Employment
(1952-53 to 2012-13)
Period
Agriculture
Workforce in
Share of
Share of
Triennium
and Allied
Agriculture Agriculture in Agricultural
ending (TE) Sectors, GDP
and allied
GDP
Workers to
at 2004-05
sectors
(%)
Total Workers
prices
(Million)
(%)
(Rs. Million)
TE 1952-53
1,621,120
69.8
97
56.5
TE 1972-73
TE 1992-93
TE 2012-13
2,580,700
4,064,040
7,453,850
126
185
43.5
29.3
263
14.3
69.7
64.8
54.6
Source:(1) Government of India, Central Statistics Office, National Annual Accounts
for various years
(2) Government of India, Registrar General of India, Census Data for various years
2. Macro Performance of Agriculture (Contd..)
Chart-1: Percentage Share of Agriculture to GDP
and Agricultural Workers to Total Workers
Share of Agricultural Workers to Total Workers
Share of Agriculture in GDP
69.8
56.5
TE 1952-53
69.7
64.8
54.6
43.5
TE 1972-73
29.3
TE 1992-93
14.3
TE 2012-13
2. Macro Performance of Agriculture (Contd..)
Chart -2: Growth of Agricultural & Allied
Sectors and Overall Economy
Agriculture & Allied Sectors
Overall Economy
6.9
3.6
2.2
4.6
2.8
3.1
1952-53 to 1972-73 1972-73 to 1992-93 1992-93 to 2012-13
3. Unemployment Situation in Agriculture
Table-2: Percentage Distribution of Usual Status Workers of all Ages by Industry
of Work
Category of Persons
Industry of Work
Agriculture
Secondary
Tertiary
59.4
74.9
64.1
22.0
18.7
16.7
8.3
20.4
15.5
Male
5.6
35.3
59.1
Female
10.9
34.0
55.1
Person
6.7
35.0
58.3
Male
43.6
25.9
30.5
Female
62.8
20.0
17.2
Person
48.9
24.3
26.8
Male
Rural
Female
Person
Urban
Rural
+
Urban
Source: Government of India (2013), National Sample Survey Office, Key indicators of
Employment and Unemployment in India 2013.
3. Unemployment Situation in
Agriculture (Contd..)
Table-3: Sectoral Distribution of Employment
Years
Agriculture
Industry
Services
Construction
1999-00
2004-05
2009-10
2011-12
59.9
58.5
53.2
48.9
11.9
12.6
11.8
13.6
23.7
23.4
25.4
26.9
4.5
5.5
9.6
10.6
Source: Government of India, Reserve Bank of India
3. Unemployment Situation in
Agriculture (Contd..)
Table-4: Sectoral Employment Elasticity
Sector
Elasticity
Agriculture
0.04
Manufacturing
0.09
Mining & Quarrying
0.52
Construction
1.13
Trade & Transport
0.19
Finance / Real Estate
0.66
Other Services
0.08
All Sectors
0.19
Source: Government of India, Reserve Bank of India Database
4. Consumption and Expenditure Pattern
Table-5: Income and Consumption Expenditure of Agricultural Households (in Rs.)
Marginal
Marginal
Farm Size
2002-03
Propensity
2012-13
Propensity
Class
Income Consumpt Surplus to
Income Consump Surplus to
(Ha)
ion
consumpti
tion
consumpti
on
on
<0.01
1380
2297
-917
4561
5108
-547
1.66
1.12
0.01 – 0.40
1633
2390
-757
0.41 – 1.00
1809
2672
1.01 – 2.00
2.01 – 4.00
2493
3589
4.01–10.00
10.00 +
All Sizes
5681
9667
2115
4152
5401
-1249
-863
1.46
1.48
5247
6020
-773
1.30
1.15
3148
3685
-655
-96
1.26
1.03
7348
10730
6457
7786
891
2944
0.88
0.73
4626
6418
2770
1055
3249
-655
0.81
0.66
1.31
19637
41388
6426
10104
14447
6223
9533
26941
203
0.51
0.35
0.97
Source:(1) Government of India (2005), National Sample Survey Office, ‘Income, Expenditure and Productive Assets of farmer
Households’
(2)Government of India (2014), National Sample Survey Office, ‘Key indicators of Situation of Agricultural Households in India’
4. Consumption and Expenditure Pattern (Contd..)
Table-6: Percentage-wise Distribution of Income from Different Sources by Landsize Classes, 2012-13
Farm
Size
Income from
Total Income
Class (Ha)
Wages/salary Cultivation Farming of Non-farming
animals
business
<0.01
63.64
0.66
25.90
9.80
100.00
0.01 – 0.40
57.45
16.54
14.95
11.05
100.00
0.41 – 1.00
38.33
40.88
11.99
8.81
100.00
1.01 – 2.00
23.52
57.28
11.13
8.07
100.00
2.01 – 4.00
15.44
68.58
10.82
5.16
100.00
4.01 – 10.00
10.34
77.63
7.64
4.38
100.00
3.17
86.22
6.34
4.28
100.00
10.00 +
All Sizes
32.22
47.94
11.87
7.97
100.00
Source: Government of India (2014), National Sample Survey Office, ‘Key indicators
of Situation of Agricultural Households in India’
5. Operational Holdings and Area Operated
Table-7: Estimates of Certain Key Characteristics of Operational Holdings in Rural India
from Land Holding Surveys of NSS: 1960-61 to 2012-13
Item
1960-61
1970-71
1980-81
1991-92
2002-03
2012-13
th
th
th
th
th
(17 )
(26 )
(37 )
(48 )
(59 )
(70th )
1.No.
of
50.77
57.07
71.04
93.45 101.27 108.78
operational
holdings
(Million)
1.1.Percentage
12.4
24.5
31.5
8.4
7.4
increase (%)
2.Area operated
133.48
125.68
118.57 125.10 107.65
94.48
(Million ha.)
3.Average area
2.63
2.20
1.67
1.34
1.06
0.91
operated (ha.)
4.Percentage of
4.22
0.60
0.62
0.08
0.40
3
joint holdings
5.number
of
5.7
n.a.
4.0
2.7
2.3
2.0
parcels
per
holding
Source: Government of India, National Sample Survey Organization, ‘Household Ownership and
Operational Holdings in India’, various issues
5. Operational Holdings and Area Operated (Contd..)
Table-8: Changes in the Percentage Distribution of Operational Holdings by Category of
Holdings
India – Rural
Category of
Percentage distribution of operational holdings
holdings
1960-61
1970-71
1980-81
1991-92
2002-03
2012-13
th
th
th
th
th
(17 )
(26 )
(37 )
(48 )
(59 )
(70th )
Landless
0.03
Marginal
39.10
45.80
56.00
62.80
69.90
Small
22.60
22.40
19.30
17.80
16.05
Semimedium
Medium
19.80
17.70
14.20
12.00
8.95
8.10
14.00
11.10
8.60
6.10
4.3
3.04
4.50
3.10
1.90
1.30
0.8
0.37
100.00
100.00
100.00
100.00
100.00
100.00
Large
All Sizes
73.17
15.30
Source: (1) Government of India (2006), National Sample Survey Office, ‘Some aspects of
Operational Land Holdings in India, 2002-03’
(2) Government of India (2015), National Sample Survey Office, ‘Household Ownership
and Operational Holdings in India’
5. Operational Holdings and Area Operated (Contd..)
Table-9: Changes in Percentage Distribution of Operated Area by Category of
Operational Holdings
India-Rural
Category
1960-61
1970-71
1980-81
1991-92
2002-03
2012-13
of holdings
(17th )
(26th )
(37th )
(48th )
(59th )
(70th )
Marginal
6.90
9.20
11.50
15.60
22.20
27.71
Small
12.30
14.80
16.60
18.70
20.60
23.44
Semimedium
Medium
20.70
22.60
23.60
24.10
22.40
23.50
31.10
30.50
30.20
26.40
22.65
19.33
Large
29.00
23.00
18.20
15.20
12.15
6.02
100.00
100.00
100.00
100.00
100.00
100.00
All Sizes
Source: (1) Government of India (2006), National Sample Survey Office, ‘Some aspects
of Operational Land Holdings in India, 2002-03’
(2) Government of India (2015), National Sample Survey Office, ‘Household
Ownership and Operational Holdings in India’
5. Operational Holdings and Area Operated (Contd..)
Chart-4: Percentage Distribution of Operational Holdings and
Operated Area
Semi-Medium, Medium & Large
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
61.7
19.2
Op. Opd
Hldg Area
1960-61
24
Op. Opd
Hldg Area
1970-71
88.5
85.95
80.6
75.3
68.2
48.85
57.2
65.7
72
76.1
80.8
11.5
14.05
19.4
24.7
31.9
38.3
Marginal & small
42.8
51.15
28.1
34.3
Op. Opd
Hldg Area
Op. Opd
Hldg Area
Op. Opd
Hldg Area
Op. Opd
Hldg Area
1980-81
1991-92
2002-03
2012-13
Migration
• 55th Round Survey of NSSO on ‘Migration in India,
1999-2000’ estimates
– 245 million people as migrants (27 %)
– Rural-rural migration - 61.8 %
– Rural-urban migration - 18.8 % (Recurring migration
stream).
• 64th Round 2007-08 estimates
– Rural-Urban – Rural-Rural –
19.5 %
No major change
• Between 1999-2000 and 2007-08
– Male Migrants 34.4 % to 39.0 %
– Female migrants - 14.4 % to 14.8 %
6. Debt Burden
Table-10: Estimated Number of Indebted Farmer Households
NSSO Survey
Percentage of farmer Average amount of
Rounds
households indebted outstanding
loan
(Rs.)
59th Round (2003)
48.6
12,585
70th Round (2013)
51.9
47,000
Source: Government of India, ‘Key Indicators of Situation of
Agricultural Households in India’ (NSSO 70th Round) &
‘Indebtedness of Farmer Households’, (NSSO 59th Round).
6. Debt Burden (Contd..)
• Credit to farmers - A critical concern for productivity-raising
investment
• Institutional and non-institutional credit expanded over years – But
not reaching Marginal and Small farmers .
• A series of shocks – both natural and market-induced – affect the
small-holders’ agriculture.
• Minimum Support Prices (MSP) not forthcoming in time.
• No Storage Facilities – leading to distress sales
• Farmers produce food for consumption for humans and animals
AND
–
–
–
–
–
raw materials / inputs for industrial production,
interest incomes for money lenders,
input dealers in fertilizers, seed, pesticides, etc.,
unregulated lending business in rural India and more so for banks.
rental income in cash and/or in kind by virtue of ownership title in
land.
7. Towards Land Policy
(a) Food Security
• Per capita net availability of food grains remained more
or less stable at 186 kgs per year (since 1991)
• Food grains stock in the Central pool increased from
19.13 mn tonnes in 1991 to 66.69 mn tonnes in 2013.
– Mssive leakages in the Public Distribution System (PDS)40% or more food grains released by Central pool fail to
reach actual beneficiaries.
• Food Security Act, 2013 - Promises provision of rice,
wheat, millets, etc., at highly subsidised prices to 75%
of rural and 50% of urban population.
– Protein intake missing in the Food Security Act, 2013.
7. Towards Land Policy (Contd..)
Solution to the problem
• Further expand wheat revolution, livestock
production, especially in rural India, boost
purchasing power of people.
• Direct cash transfers
• Use MNREGA to create public assets.
– The scheme to be dovetailed to building houses
and toilets for the rural poor.
7. Towards Land Policy (Contd..)
(b) Land Markets
• Inefficient land markets - a major obstacle to economic
growth.
• Landed class has monopolised the rural land market.
– Major impediment to higher productivity and capital
mobilization
Solution to the problem
• Liberalize land lease markets
– Will facilitate both the lesser and lessee to freely negotiate on
terms of lease contract
– Will lead to productivity-enhancing investments in land
• Right to Fair Competition and Transparency in Land
Acquisition, Rehabilitation and Resettlement (Amendment)
Bill, 2015 likely to address some of the concern areas of
2013 Act enacted in Indian Parliament.
8. Conclusion
• Land acquisition must be regulated through legal/
policy intervention so that production and productivity
is not compromised and without sacrifice of selfsufficiency in production and biodiversity.
• Land acquisition for industrialization and urbanization
in view of employment potential growth is a sine-quanon for giving a go ahead to equitable development
process.
• India’s new Land Bill aims, among many other things,
at creating an enabling framework to deal fairly with
the displaced and dispossessed in the process of land
acquisition.
8. Conclusion (Contd..)
• Irrespective of any Land Policy, the incidence of
marginalization of land holdings and farmers is on
the rise, resulting from gradually diminishing
income from farm activity.
• Enactment of Land Policy is of urgent necessity to
address following 2 issues:
– Marginalization of farming in falling average land size
and increasing numbers of farmers being
marginalized,
– The challenge of employment generation for surplus
population in agriculture.
Thanks for
Your
Kind Attention