Indian Agriculture Commercialization Under Colonial Rule
Commercialization of Indian Agriculture
Commercialization of agriculture refers to the process by which agricultural production is increasingly oriented towards the market rather than subsistence. Under this system, crops are grown mainly for sale and profit, not just for local consumption. In India, commercialization of agriculture began in a limited way in the late eighteenth century but expanded rapidly during the British colonial period, especially between 1800 and 1857.
Before British rule, Indian agriculture was largely subsistence-based, though peasants did produce surplus for local and regional markets. According to Irfan Habib, pre-colonial India had well-developed markets, but production was not primarily guided by international demand. The real shift towards commercialization occurred under colonial rule due to changes in revenue systems, transport, trade policies, and global market integration.
Factors Driving Commercialization
Several factors contributed to the commercialization of Indian agriculture:
- The British revenue settlements, such as the Permanent Settlement (1793), Ryotwari, and Mahalwari systems, forced peasants to pay revenue in cash, compelling them to grow crops that could be sold easily in the market.
- The expansion of railways, roads, and ports after the 1850s improved connectivity and linked Indian agriculture to national and international markets.
- The growth of European industries, especially in Britain, increased demand for raw materials like cotton, indigo, jute, sugarcane, tea, and coffee. According to R.C. Dutt, colonial policies transformed Indian agriculture into a supplier of raw materials for British industries.
Impact on Agrarian Economy
The impact of commercialization on Indian agriculture was uneven and contradictory.
Positive Aspects
On the positive side, it encouraged the cultivation of cash crops, expanded the area under cultivation, and promoted market integration. Certain regions such as Bengal (jute and indigo), Bombay Deccan (cotton), and Assam (tea) experienced agricultural expansion. Some rich peasants, landlords, and traders benefited from rising prices and market opportunities. Tirthankar Roy argues that commercialization created new economic opportunities and linked Indian agriculture to global trade networks.
Negative Consequences
However, the negative consequences were far more severe:
- The emphasis on cash crops led to the neglect of food crops, making peasants vulnerable to food shortages.
- Commercial crops were subject to price fluctuations in international markets, which peasants could not control. When prices fell, cultivators faced heavy losses but still had to pay fixed revenue.
- According to Bipan Chandra, commercialization under colonial rule was driven by British interests and did not aim at improving peasant welfare.
Societal Transformations and Vulnerability
Commercialization also deeply affected agrarian society. It intensified rural inequalities. Rich peasants, moneylenders, traders, and landlords benefited, while small peasants and tenants suffered. The need for cash revenue increased dependence on moneylenders, leading to widespread indebtedness and loss of land. The rise of absentee landlords under the Permanent Settlement worsened peasant exploitation. Ranajit Guha highlights how these pressures resulted in frequent peasant resistance and uprisings during the nineteenth century.
Famine Vulnerability
Another major consequence was the growing vulnerability to famines. Since food production was not prioritized and grain was often exported, millions died during famines despite the availability of food in markets. Mike Davis later described this as a “colonial famine structure,” though its roots lay in nineteenth-century commercialization policies.
Conclusion
In conclusion, commercialization of agriculture in India was not a natural or balanced economic transformation. It was largely imposed by colonial policies to serve British industrial and commercial interests. While it expanded markets and production in certain areas, it disrupted subsistence agriculture, deepened rural inequalities, increased indebtedness, and exposed peasants to severe economic risks. Thus, commercialization profoundly reshaped Indian agriculture and agrarian society, mostly to the disadvantage of the peasantry.