[Answered] Discuss thecommercialisation of agriculture in India duringcolonial rule. Discuss various consequences of agricultural commercialisation.

The British rule had pronounced and profound economic impact on India. The various economic policies followed by the British led to the rapid transformation of India’s economy into a colonial economy whose nature and structure were determined by needs of the British economy. One important aspect of British economic policy was commercialisation of agriculture.

Commercialisation of Agriculture during British Period:

The commercialisation of Indian agriculture started post 1813 when the industrial revolution in England gained pace. It became prominent around 1860 A.D (during American Civil War which boosted demand of Cotton from India to Britain as America was not able to export Cotton).

1. Its aim was not to feed the industries of India because India was far behind in industrial development as compared to Britain, France, Belgium and many other European countries of eighteenth century.But was done primarily to feed the British industries.
2. It led toproduction of only those agricultural products which were either needed by the British industries or could fetch cash commercial gain to the British in the European or American market.For example, several efforts were made to increase the production of cotton in India to provide raw and good quality cotton to the cotton-textile industries of Britain which were growing fast after the Industrial Revolution in Britain. Therefore, cotton growing area increase in India and its production increased manifold with gradual lapse of time.
3. Indigo and more than that, tea and coffee plantation were encouraged in India because these could get commercial market abroad.
4. Most of the plantations for commercial crops were controlled by the English. Jute was another product that received attention of the English company because the jute made products got a ready market in America and Europe.
5. Cash transactions become the basis of exchange and largely replaced the barter system.
6. The new land tenure system was introduced in the form of permanent settlement and Ryotwari Settlement had made agricultural land a freely exchangeable commodity.The Permanent settlement by giving ownership right to the zamindars created a class of wealthy landlords; they could make use of this ownership right by sale or purchase of land.
7. The agriculture which had been way of life rather than a business enterprise now began to be practiced for sale in national and international market.
8. Crops like cotton, jute, sugarcane, ground nuts, tobacco etc. which had a high demand in the market were increasingly cultivated. The beginning of the plantation crops like Tea, coffee, rubber, indigo etc heralded a new era in agricultural practices in India. These were essentially meant for markets and thus commercialisation of agriculture took to new heights with the expansion of the British rule.
9. The commercialisation of agriculture was a forced and artificial process for the majority of Indian peasants. It was introduced under coercion of the British and not out of the incentive of peasantry at large. The peasantry went for cultivation of commercial crops under duress. He had to pay the land revenue due to the British government in time. Moreover, he had to grow commercial crop on a specified tract of his land under the oppression of planters.

Negative Impacts of Commercialisation of Agriculture:

1. Led to inequalities-It should have acted as a catalyst in increasing agricultural productivity. But, in reality this did not happen due to poor agricultural organization, obsolete technology, and lack of resources among most peasants. It was only the rich farmers; who benefited and this in turn, accentuated inequalities of income in the rural society.
2. Benefited rich-The commercialisation of agriculture beneficial to the British planters, traders and manufacturers, who were provided with opportunity to make huge profits by getting the commercialised agricultural products at, throw away prices. The commercialisation of Indian agriculture also partly benefited Indian traders and money lenders who made huge fortunes by working as middlemen for the British.
3. Exploitation of poor-The poor peasant was forced to sell his produce just after harvest at whatever prices he could get as he had to meet in time the demands of the government, the landlord, the money lender and his family members’ requirements. This placed him at the money of the grain merchant, who was in a position to dictate terms and who purchased his produced at much less than the market price. Thus, a large share of the benefit of the growing trade in agricultural products was reaped by the merchant, who was very often also the village money lender.
4. Loss of land-Indian money lenders advanced Cash advances to the farmers to cultivate the commercial crops and if the peasants failed to pay him back in time, the land of peasants came under ownership of moneylenders.
5. Increased miseries of Indian farmers-Most of the Indian people suffered miserably due to the British policy of commercialisation of Indian agriculture. It resulted in reduced area under cultivation of food crops due to the substitution of commercial non-food grains in place of food grains. This had a devastating effect on the rural economy and often took the shape of famines. The misery was further enhanced became the population of India was increasing every year, fragmentation of land was taking place because of the increasing pressure on land and modern techniques of agricultural production were not introduced in India. Thus, the commercialisation of agriculture in India by the British was also one of the important causes of the impoverishment of the Indian people.
6. Regional Specialisation-Regional specialisation of crop production based on climatic conditions, soil etc., was an outcome of the commercial revolution in agriculture. Deccan districts of Bombay presidency grew cotton, Bengal grew jute and Indigo, Bihar grew opium, Assam grew tea, Punjab grew wheat, etc.
7. Impacted indian market-Another important consequence of the commercial revolution in agriculture was linking of the agricultural sector to the world market. Price movements and business fluctuations in the world markets began to affect the fortunes of the Indian farmer to a degree that it had never done before. The farmer in his choice of crops attached greater importance to market demand and price than his home needs. The peasant class got adversely affected owing to imbalances in market condition.
8. Decreased self sufficiency-Commercialisation of agriculture adversely affected self sufficiency of village economy and acted as major factor in bringing the declining state in rural economy.Commercialisation effected traditional relations between agriculture and industry. In India, traditional relations acted as factors for each other’s development which were hampered.
9. Assisted Britain’s industrialisation on the cost of India’s growth-The commercialisation of agriculture had mixed effects. While it assisted the industrial revolution in Britain, it broke the economic self-sufficiency of villages in India.

Positive Impacts of Commercialisation of Agriculture:

1. Encouraged social exchange-In spite of having many negative effect commercialisations in one sense was progressive event. Commercialisation encouraged social exchange and it made possible the transformation of Indian economy into capitalistic form.
2. Linked indian economy with global economy-Commercialisation linked India with world economy. It led to the growth of high level social and economic system. The important contribution of commercialisation reflected in integration of economy.
3. Growth of national agriculture-It also created a base for growth of national economy commercialisation of agriculture led to growth of national agriculture and agricultural problem acquired national form.It also brought about regional specialisation of crops on an efficient basis.
4. New commercial crops– It led tointroduction of a large number of commercial crops such as tea, coffee, indigo, opium, cotton, jute, sugarcane and oilseed.
5. Capitalism-It made possible the transformation of Indian economy in to capitalistic form. Commercialisation of Indian agriculture also partly benefited Indian traders and money lenders who made huge fortunes by working as middlemen for the BritishIntegration of economy took place which also created for the growth of national economy.

The commercialisation of agriculture was a new phenomenon in Indian agriculture scene introduced by the British. While the upper class and British industries benefitedfrom it, the Indian peasants’ life was tied to remote international market. The worst effect of commercialisation was the oppression of Indian peasants at hands of European. This found expression in the famous Indigo revolt in 1859. Moreover, commercialisation of Indian agriculture got manifested in series of famines which took a heavy toll of life.