to the National Crime Records Bureau (NCRB), about two lakh peasants have committed suicide in India since 1997. The trend continues as news of distressed farmers of Vidarbha giving up their lives keep making headlines in newspapers. A deeper crisis awaits peasant type agriculture. This is the crisis of “depeasantisation” — the threat of dispossession and decimation of peasant class in the emerging world of large-scale agribusiness and corporatisation of small-scale agriculture. It is happening all over the world, including Europe and developing countries of Asia, Africa and Latin America; the only exception being the US and Canada where large-scale corporate farming has already fully established itself as a norm of capitalist mode of production.
The menace of depeasantisation is not new as it persisted in the history of peasantry. This time only the crisis has assumed entirely different character in terms of scale, spread and likely outcomes. Peasant history is a trajectory of dialectical development of the growth, decay and re-emergence of peasant classes. So far, peasantry managed to coexist and successfully compete for its survival with the feudal, capitalist and despotic type of what Marx called the “Asiatic” modes of production.
Often unable to contend with those structures, it comfortably nestled in dominant capitalist structures. Assimilation with conditions made peasantry fit enough to survive in a world weighed down by ruthless competitive “economic selection” processes and steep “economic ladders”.
However, under the globalisation of capital the threat to peasant mode of production is to be taken seriously. Peasants are face-to-face, on a massive universal scale, against powerful corporate firms penetrating peasant farms and with the combined force of conglomerates of industry, big investors, large agribusiness, MNCs, private equity funds, liberalised banking system, global finance, etc. The definition and concepts of agriculture have changed. In fact, all round vertical, horizontal and integrated supply chains of agribusinesses are determined to uproot and displace peasant agriculture. The world of peasantry was never like this in the past.
The world history of peasantry is replete with strategies devised by peasants for survival, often with active sanction and support of the state. We know that access to land is a lifeline for peasantry. In pre-British India, peasantry could survive in a semi-feudal structure due to community ownership of landed property. Periodic redistribution of land among peasant households based on size of family labour ensured adequate access of peasant households to the cultivable land.
Later in the British period, adequate supply of agricultural land was no longer guaranteed for subsistence agriculture in a regime of newly introduced private proprietorships, emerging land/lease markets, and limited monetisation. Instead, land alienation and expropriation of peasants oppressed under village moneylenders posed recurring threats to the existence of peasantry.
So long as moneylender was not interested in complete dispossession of peasants from means of production, the existence of peasantry was secure. At times, peasants and tribal cultivators in the British period managed to survive also because of political strength and struggle.
The Gandhian reformist practice of “passive resistance” and “non-violence” followed by the farmers associated with Workers’ and Peasants’ Party (1925 onwards) as also Bardoli Satyagraha (1928) went hand in hand with Tebhaga Movement (1946-7), Telangana Insurrection (1946-51) and Deccan Riots revolving against feudal-moneylender exploitation.
Much earlier, tribals of Santhal Parganas had insurrected against exploitative British Administration and Bengal moneylenders. In southern India, several Moplah uprisings against exploitative landlords and the British in the 19th century could establish the free spirit of small peasants in Malabar until the rebellion was completely suppressed in 1921.
Except in Punjab, western Uttar Pradesh and parts of Maharashtra, peasant organisations like the Bhartiya Kisan Union are generally not visible on the scene barring agitating for hike in crop prices. Even in those states where these organisations have a presence, they were helpless, ridden with factions, and unfortunately could not prevent tragic suicidal deaths of farmers.
One could often notice strong peasant demonstrations in developed countries against domestic agricultural or world trade policies, but peasantry of the developing world, especially in India, demonstrated a helpless and subdued attitude, leading them to suicides.
On the scene of the world history of peasants, their perseverance and strategies for survival were like this. In France, small peasantry was able to consolidate its economic strength during the 16th and 18th century by purchasing chunks of land through land market, despite heavy taxation on small farms and tax heavens for capitalist farms. Peasantry successfully resisted the threat of depeasantisation coming from the early phase of capitalism.
In contrast, peasantry in England could not succeed in resisting the attempts of the Crown to create large capitalist farms through use of sheer force and political clout or by devising restrictive legal devices such as the scandalous “Gage” system for land market, which prevented peasants from buying agricultural land.
The chronology of “Enclosure Movement” between A.D.1500-1914 also clearly points to the coercive ways used to promote large capitalist “enclosed farms” at the expense of small peasantry in England. In Russia before October Revolution, peasant commune type ownership of landed property, popularly known as village Mir system and periodic redistribution of land in the form of “allotment holdings” were instrumental in the survival and continuity of peasant households. After Bolshevik Revolution, the decree on nationalisation of all land secured the position of peasantry.
The survival of peasantry in India or anywhere in the world was often guaranteed as long as it was operating under conditions of community ownership of landed property. In fact, peasant commune type ownership of landed property existed at one time or the other in almost all countries of the world, including developed countries.
Community ownership of land under the aegis of state remained a dominant factor in deciding the economic fate and survival of peasantry. The concept of Common Property Resources popular today is a form of the historic community ownership of land, expansion of which can go a long way in promoting social progressive transformation and collective development of existing individualised peasant mode of production.
The essence of peasant agriculture is its inherently stabilising nature, which is reflected in the use of family labour, subsistence objective of production, diversification, cutting family expenses and “tightening of belt” in the event of adverse economic conditions. Even capitalist world appreciates these shock-absorbing features of the peasant agriculture.
So where did agriculture falter that depeasantisation now appears more as universal concrete reality than mere possibility or abstract psychosis of mind? Has peasant-type subsistence agriculture now become internally unsustainable? Has its essence and internal strength become a destabilising weakness?
A dialectical aspect of the current reality is that peasant-type subsistence agriculture carried out by “autonomous” peasants now cannot be actively supported further lest it should become suicidal in place of self-sustaining, as that is exactly happening today in India. Even poor monsoon threatens to derail the subsistence peasant economy, what to say about threat from corporate farming.
Our peasant agriculture has reached a stage where it is threatened more from inside than outside. In fact, external conditions always gave unconditional support to the small-scale peasant agriculture after Independence. The only adverse condition laid down once was in the form of cost-intensive Green Revolution technology, which did not exactly suit our small peasant farms, at least until the mid-eighties.
Then came the pressure of the imperialist cartels under the name of “economic reforms” in the nineties, which actually triggered the renewed threat of depeasantisation, as reflected first in the phenomenon of reverse tenancy. Now in the new millennium, lakhs of small peasants are reported to have abandoned agriculture.
While developed countries, after World War II, were on the course to capitalist mode of production, Independent India witnessed active promotion of the British policy of extensive peasantisation of agriculture by creation of “independent” peasant holdings, particularly after land reforms. The number of peasant holdings shot up from 67 million in 1931 (undivided India) to 81 million in 1976-77 and 119 million in 2000-01.
Peasantisation was basically promoted through institutional measures such as land ceiling, re-distribution of surplus land, nationalisation of banks, subsidised loans/inputs to agriculture, minimum support price, etc. While commercial banks always silently aspired to adhere to the principles of lending devised by the modern banking system compatible with capitalist production system, all banking agencies were paradoxically geared backwards to financing of subsistence agriculture.
The modern banking system, which evolved alongside capitalism with the establishment of Bank of England, is theoretically incompatible with subsistence farming. However, we tied the banking system with subsistence farming for 60 years! The result was that neither banks’ operations remained viable nor peasant farms.
Now globalisation is all set to overturn the existing economic structures. The spectre of depeasantisation is hovering all over the world. European countries are also beset with the problem of persistence of peasantry and are impatiently determined to attain a perfect state of capitalism. France, for example, is witnessing gradual depeasantisation since 1950s, which got accelerated after 1980s, as the number of peasant holdings came down from 20 million in 1952 to 10 million in 1982 and 7.5 million in 1992. The average size of holdings has risen to 100 acres. Depeasantisaton is evolving through vibrant agricultural land markets in Europe.
In developing countries like India, however, depeasantisation has taken abstract and less visible forms like reduction in average size of holdings, apportionment of holdings, unviable peasant farms, reverse tenancy, etc. rather than a more visible form of outright sales of land or complete dispossession of peasantry.
Nonetheless outright sales are also happening, particularly under Special Economic Zones. Simultaneously, corporate farming is thumping at the doors though old, independent, idyllic, pre-capitalist world of peasant agriculture is not inclined to change.
The corporate world has assessed a potential of US$500 billion investment in agribusiness in India for 10 years, of which US$25-30 billion is estimated for the next 3-4 years. Such massive centralisation of capital shall surely affect the life of peasantry.
Subsistence agriculture now cannot sustain peasantry. It must give way to a progressive socialised/ collective production system. At the same time, depeasantisation is also unpalatable. Corporate farming requires a reserve pool of landless agricultural labourers; so it will surely go for depeasantisation to happen.
The institutional set-up is at cross roads. It may ultimately align with corporate agribusiness. Even peasantry itself, in a desperate bid to survive, could decide to work out the chances of getting comfortably nestled in the world of capitalist agribusiness. But that is not a solution. The politics of survival is also not the solution.
From a wider social perspective, subsistence-type peasantisation and corporate-driven depeasantisation, both are retrogressive. Any way corporate agriculture does have a progressive feature, that is, its superiority of social/ collective production process vis-à-vis separated production processes of millions of autonomous Robinson Crusoe-type peasants.
The virtue of large-scale production is not about reaping the so-called “economies of scale” or growth and productivity; it is essentially about the need for association and collectivity per se in the production process.
The way ahead can be designed better. As an incentive, the peasantry needs to be convinced about collective association. Through awareness and education associations of peasants on production/ cultivation lines should be promoted as a bulwark against emerging large-scale corporate farms.
This would be like collective/cooperative farming on voluntary basis, as the concept of private landed property any way becomes obsolete with a paradigm shift in farming. Peasantry should not aspire for atomistic, separatist type survival strategies only. It primarily needs to think about collective progress; and social progress shall come only through uniting and collectivising at production level.
Cooperative banking, cooperative marketing, group banking developed thus far were all right, but more importantly cooperative farming has never been promoted. Although pilot experiments in consolidation and cooperative farming became failure under “half-hearted” land reforms in 1950s, there is no reason to say they would never succeed.
This is the ripe time to promote cooperative/collective farming. Peasant-type separated subsistence agriculture has no social relevance even if it manages to survive in the face of corporate farming. Corporate farming is not the infamous post-modernist “end of history”.n
The writer, an agricultural economist, is AGM (Economic Service), National Bank for Agriculture and Rural Development (NABARD) Head Office, Mumbai