Indian agriculture deregulation being considered
October 05, 2018 | 0 Comments
The agricultural census shows that landholders increased from 71 million in 1970 to 143 million in 2018. Increasing population is the prime reason as successive generations of family members subdivide the land. The largest average holding is in Nagaland state 5.06 hectares per owner while the smallest is in Kerala at 0.18 hectares. This has implications for productivity as smallholdings are much less productive and cannot afford many inputs. Compounding the problem is the restriction on lease of farmland in most parts of India.
Smaller holdings could be leased out and combined with neighbouring farms to corporate farmers or cooperatives, a move that is under consideration By the government and would have a major positive impact on Indian farm productivity and therefore the entire economy, which is still fairly agriculturally dependent. Over 250 million people are directly dependant on farm income.