- Commercialization of agriculture during British rule in India refers to the shift in agricultural practices where farming was driven by commercial considerations rather than local consumption. It started gaining prominence around the 18th century, particularly after 1813 when the industrial revolution in England accelerated. The primary purpose of commercializing Indian agriculture was to meet the demands of British industries and generate commercial gains for Britain in the European and American markets.
- The focus was on cultivating crops that were needed by British industries or could fetch cash returns in international markets. Efforts were made to increase cotton production to supply raw materials to the rapidly growing cotton-textile industries in Britain. Indigo, tea, coffee, jute, sugarcane, oilseeds, opium, black pepper, silk, and other cash crops were also encouraged, as they had a ready market abroad.
- The control of most commercial plantations and transactions was in the hands of the British. Cash transactions became the prevalent mode of exchange, replacing the traditional barter system.
- Overall, the commercialization of agriculture during British rule in India aimed to meet the needs of British industries and generate profits for Britain through the cultivation of specific cash crops, resulting in a shift towards commercial considerations and cash-based transactions in the agricultural sector.
How Commercialization of Agriculture happen?
- The commercialization of agriculture in India was primarily initiated by the British through their policies and activities. The introduction of new land tenures systems such as the Permanent Settlement and Ryotwari Settlement transformed agricultural land into a freely exchangeable commodity. The Permanent Settlement granted ownership rights to zamindars, creating a class of wealthy landlords who could buy and sell land.
- With this shift, agriculture, which was previously a way of life, began to be practiced for sale in national and international markets. Crops like cotton, jute, sugarcane, groundnuts, and tobacco, which had high market demand, started being cultivated more extensively. The East India Company played a significant role in procuring and exporting Indian commodities, earning profits, and increasing agricultural exports as raw materials for industries in Britain.
- The advent of plantation crops like tea, coffee, rubber, and indigo marked a new era in agricultural practices in India. However, the commercialization of agriculture was a forced and artificial process for the majority of Indian peasants. The initiative did not come from within the peasant society, and the benefits did not accrue to them either. It was introduced under coercion by the British rather than being driven by the incentives of the peasants themselves.
- For instance, in the case of indigo cultivation in eastern India, planters had to persuade and later force local peasants to accept advances and cultivate indigo on their lands. In general, peasants were compelled to cultivate cash crops due to high revenue demands, the requirement to pay revenue and rent in cash, and the burden of debt servicing.
- The peasantry resorted to cultivating commercial crops under duress, as they had to fulfill their land revenue obligations to the British government and were oppressed by planters. Commercialization gained more momentum in regions where cultivation was intended for export, such as the wheat region of Punjab, the cotton region of Gujarat, the jute region of East Bengal, and the cotton region of Berar.
Several factors encouraged and facilitated the commercialization of agriculture in India during British rule:
- Political Unity and Unified Market: The establishment of political unity by the British led to the rise of a unified national market, making it easier to engage in commercial agricultural activities.
- Spread of Money Economy: The transition from barter to a money-based economy replaced traditional exchange systems, and agricultural goods became market commodities.
- Colonial Subjugation: British rule reduced India to a supplier of raw materials and food grains to Britain, creating a demand for commercial crops such as cotton, jute, tea, and tobacco to meet the needs of British industries.
- Replacement of Custom and Tradition with Competition and Contract: The introduction of competition and contractual arrangements replaced traditional customs and traditions, promoting commercialization in agriculture.
- Improved Means of Communication: The rapid development of railways and shipping provided better means of transportation, enabling the trade of agricultural products over long distances and connecting rural areas with urban centers.
- Emergence of Grain Merchants: The rise of grain merchants facilitated agricultural trade, acting as intermediaries between rural producers and urban markets.
- Monetization of Land Revenue Payments: The conversion of land revenue payments into monetary form provided an incentive for agricultural commercialization.
- Industrial Revolution: The Industrial Revolution in England created a demand for raw materials, leading to increased production of agricultural goods to satisfy the needs of British industries.
- Expansion of International Trade and British Finance Capital: The enlargement of international trade and the entry of British finance capital played a role in boosting agricultural commercialization.
- Demand from Foreign Countries: Increasing demand for certain commercial crops in foreign countries also contributed to the commercialization of agriculture in India.
- Triangular Trade with China: The Company encouraged tea farming in India and promoted opium cultivation for export to China, leading to a triangular trade between London, Calcutta, and Canton.
- American Civil War: The diversion of British cotton demand to India during the American Civil War stimulated cotton cultivation in western India and created pockets of prosperity in the Deccan cotton belt.
- British Policy of Free Trade: The one-way free trade policy of the British allowed manufactured goods from industries like textiles and jute to enter the Indian market freely, while Indian manufactured goods faced restrictions in European markets.
- Economic Motives of Peasants: Peasants turned to growing commercial crops to repay debts to moneylenders and seek better economic opportunities. For example, jute cultivation expanded as peasants saw it as a way to earn more income.
Despite the commercialization of agriculture, the benefits often did not reach the primary producers, as British manufacturers and exporters exerted control over prices, leaving growers with little bargaining power.
The commercialization of agriculture in India during British rule had several impacts:
- Increase in Inequality: Although commercialization was expected to increase agricultural productivity, it mainly benefited the rich farmers, leading to increased income inequalities in rural society. The poor peasants did not see significant improvements in their living conditions.
- Benefits to Planters, Traders, and Manufacturers: The commercialization of agriculture primarily benefited British planters, traders, and manufacturers who made significant profits from the commercialized agricultural products. Indian traders and moneylenders also benefited to some extent by acting as intermediaries for the British.
- Increased Dependency on Moneylenders: Poor peasants were forced to sell their produce at low prices to meet the demands of the government, landlords, moneylenders, and their own family needs. This led to increased dependency on moneylenders, who often took advantage of the situation by purchasing the produce at below-market prices.
- A decline in Food Crop Production and Frequent Famines: Commercialization resulted in a reduction in the cultivation of food crops as commercial non-food crops replaced them. This led to a decline in food crop production, which, coupled with population growth, resulted in frequent famines. The Bengal famine of 1943 is a notable example.
- The impoverishment of the Indian People: The commercialization of agriculture, coupled with population growth, fragmentation of land, and lack of modern agricultural techniques, contributed to the impoverishment of the Indian people. The majority of the population did not benefit significantly from the commercial revolution.
- Regional Specialization of Crops: Commercialization led to a regional specialization in crop production based on climatic conditions and soil suitability. Different regions focused on specific crops such as cotton, jute, indigo, opium, tea, and wheat, which led to economic disparities between regions.
- Linking Agriculture to the World Market: The commercial revolution linked the agricultural sector to the world market, making Indian farmers vulnerable to price fluctuations and business cycles. Farmers began prioritizing market demand and prices over their own domestic needs.
- Adverse Effect on Self-Sufficiency: Commercialization of agriculture, while beneficial for the industrial revolution in Britain, negatively impacted the self-sufficiency of the village economy. It disrupted traditional agriculture-industry relations and hindered the development of a balanced rural economy.
- Lack of Technological Development: The commercialization of agriculture did not bring about significant technological advancements. The focus was on commercial profit rather than improving agricultural productivity. As a result, the agricultural sector did not experience substantial technological progress.
- Peasant Revolts: The oppressive practices of European planters and the exploitation of Indian peasants led to various peasant revolts, such as the Indigo revolt in 1859. The commercialization of agriculture exacerbated the grievances of the rural population.
Overall, the commercialization of agriculture had a mixed impact, with the majority of the benefits going to the elites and British industries, while the Indian peasants faced impoverishment, dependency, and adverse consequences such as declining food crop production and frequent famines.
Positive impacts of the commercialization of agriculture during British rule in India include:
- Transformation into a Capitalistic Economy: Commercialization encouraged social exchange and facilitated the transformation of the Indian economy into a capitalistic form. It introduced market-oriented practices and helped in the growth of a market-based economy.
- Integration with the World Economy: Commercialization linked India with the world economy. It allowed for the exchange of goods and facilitated trade between India and other countries. This integration provided opportunities for economic growth and exposure to global markets.
- Growth of a National Economy: Commercialization created a foundation for the growth of a national economy. It led to the development of a more interconnected and integrated economic system within India, transcending local and regional boundaries. Agricultural problems also acquired a national character, leading to a more unified approach to addressing them.
- Regional Specialization of Crops: Commercialization resulted in the regional specialization of crop production based on factors such as climate and soil suitability. This specialization allowed regions to focus on crops that they were best suited to grow, leading to increased efficiency and productivity in agriculture.
- Increase in Production: Commercialization, to some extent, stimulated agricultural production. The market-oriented approach and the demand for commercial crops encouraged farmers to increase their production levels to meet market requirements. This led to economic growth in the agricultural sector.
It is important to note that while there were some positive impacts of commercialization, the overall effects were mixed, and the negative consequences, such as inequality, dependence on moneylenders, and decline in food crop production, should also be considered.
Frequently Asked Questions (FAQs)
Q1: How did the British commercialize agriculture in India during their rule?
A1: The British implemented various policies to commercialize agriculture in India. One significant measure was the introduction of the Permanent Settlement in 1793, which fixed land revenue at a permanent rate. This led to the transformation of Indian landlords into rent collectors, pushing them to maximize revenue by encouraging cash crop cultivation. Additionally, the British promoted the cultivation of commercial crops like indigo, cotton, and opium, which were in high demand in the European markets.
Q2: What impact did the commercialization of agriculture have on Indian farmers during British rule?
A2: The commercialization of agriculture had mixed effects on Indian farmers. While it introduced cash crops and market-oriented farming, providing economic opportunities, it also led to the exploitation of farmers. The imposition of high land revenue, coupled with the unpredictability of crop prices, left many farmers in debt and poverty. The shift towards cash crops also meant a decline in food grain production, contributing to famines. The unequal distribution of benefits further exacerbated social and economic inequalities.
Q3: How did the British policies affect traditional agricultural practices in India?
A3: British policies significantly disrupted traditional agricultural practices in India. The introduction of cash crops led to a shift from subsistence farming to commercial agriculture. The emphasis on revenue collection pressured farmers to focus on crops with market value rather than those for personal consumption. Additionally, the modernization of agriculture, such as the introduction of new tools and techniques, was often skewed towards serving colonial interests rather than improving the overall well-being of Indian farmers. This marked a departure from the sustainable and diversified farming practices that had been prevalent in India for centuries.
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