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Pattern and Distribution of Operational Holdings

Chapter-II: Agricultural Production in Assam: An Overview

2.12: Pattern and Distribution of Operational Holdings

67.32 percent of the total holdings and 25.84 percent of the total operated area. The small holding shared 18.27 percent of the total holdings and 22.91 percent of the total operational area. Semi-medium and medium size holdings shared 14.26 percent of total operational holdings covering 41.85 percent of total operational area. On the other hand, the large holdings constituted only 0.15 percent of the total number of holdings and 9.4 percent of the total operated area in the state in 2010-11(Economic Survey, Assam, 2014-15). Following two tables show the trend of operated holdings and area in the state.

Table-2.6: Trend of change in agricultural holdings, operated area and average size of holding in Assam with all India average since 1970-71: (As per Agricultural Censuses)

Agricultural Census Year

Number of Holdings

Total Operated

Area (in‟000 ha) Average Size of Holdings in Assam (in ha.)

Average Size of Holdings in India (in ha.)

1970-71 1964376 2882 1.47 2.28

1976-77 2253654 3079 1.37 2.00

1980-81 2297588 3121 1.36 1.82

1985-86 2419156 3161 1.31 1.69

1990-91 2523379 3205 1.27 1.57

1995-96 2682997 3138 1.17 1.49

2000-01 2712137 3114 1.15 1.32

2005-06 2750114 3049 1.11 1.23

2008-09 2747826 3160 1.15 -

2010-11 2720223 2999 1.10 1.16

Note: Total may not be equaled due to rounding off to nearest zero.

Source: (i) Economic Survey, 2012-13; (ii) CMIE, Report on Agriculture, November 1997, (iii) Agriculture Census, 2010-11,Agriculture Census Division, Ministry of Agriculture and Co-operation, Govt. of India, New Delhi.

There is a gap in the average size of operational holdings between Assam and all India in all the NSS Rounds. The table shows a decreasing trend in the state as well as in all India but the average size in Assam is lower than all India level. Average size of operational holdings in Assam was 0.83 hectare in NSS 26th Round that declined to 0.69 hectare in NSS 59th Round. On the contrary, average size of operational holding declined from 1.25 hectares to 1.06 hectares at all India level in the corresponding periods (see appendix Table II.1). The percentage decrease in the average size of operational holding in the state was 16.87 compared to 15.2 in all India level during NSS 26th to 59th rounds.

Table-2.7: Category-wise distribution of number of operational holdings and area operated in Assam based on Agricultural Censuses:

Year Number of operational holdings (in lakh) Area operated (in lakh ha.) Margin

al

Small SM Medi

um

Large all Size

Margin al

Small SM Mediu

m

Large all Size 1970-

71

11.20 (57.03)

4.70 (23.9)

2.74 (13.95)

0.90 (4.58)

0.10 (0.51)

19.64 (100)

5.09 (17.66)

6.61 (22.9)

7.57 (26.27)

5.21 (18.08)

4.34 (15.06)

28.82 (100)

1976- 77

13.43 (59.66)

5.09 (22.6)

2.96 (13.15)

0.96 (4.26)

0.07 (0.31)

22.51 (100)

5.93 (19.27)

7.18 (23.3)

8.08 (26.25)

5.28 (17.15)

4.31

(14.00)

30.78 (100) 1980-

81

13.63 (59.4)

5.22 (22.8)

3.13 (13.64)

0.92 (4.01)

0.05 (0.22)

22.95 (100)

5.83 (18.7)

7.48 (23.9)

8.59 (27.54)

4.87 (15.6)

4.42 (14.17

31.19 (100) 1985-

86

14.51 (59.98)

5.46 (22.6)

3.22 (13.3)

0.92 (3.8)

0.08 (0.33)

24.19 (100)

5.83 (18.44)

7.81 (24.7)

8.68 (27.46)

4.87 (15.41)

4.42 (13.98)

31.61 (100) 1990-

91

15.5 (61.43)

5.78 (22.9)

3.0 (11.89)

0.91 (3.61)

0.04 (0.16)

25.23 (100)

6.07 (18.94)

7.84 (24.5)

9.18 (28.64)

4.92 (15.35)

4.04 (12.61)

32.05 (100) 1995-

96

16.69 (62.21)

5.62 (20.9)

3.51 (13.08)

0.96 (3.58)

0.05 (0.19)

26.83 (100)

6.21 (19.79)

7.7 (24.5)

9.24 (29.44)

4.95 (15.77)

3.28 (10.45)

31.38 (100) 2000-

01

16.99 (62.62)

5.61 (20.7)

3.52 (12.97)

0.96 (3.54)

0.05 (.18)

27.13 (100)

6.63 (21.3)

7.3 (23.2)

9.58 (30.76)

4.89 (15.70)

2.74 (8.8)

31.14 (100) 2005-

06

17.53 (63.7)

5.91(2 1.48)

3.2 (11.63)

0.83 (3.02)

0.05 (0.18)

27.52 (100)

7.60 (24.93)

7.18 (23.6)

8.46 (27.75)

4.27 (14.00)

2.98 (9.77)

30.49 (100) 2010-

11

18.31 (67.29)

4.97 (18.3)

3.03 (11.17)

0.85 (3.12)

0.04 (0.15)

27.20 (100)

7.75 (25.84)

6.87 (22.9)

8.18 (27.27)

4.37 (14.57)

2.82 (9.4)

29.99 (100)

%incr ease /decre ase*

(+) 63.48

(+) 5.74

(+) 10.95

(-) 5.6 (-) 60 (+) 38.5

(+) 52.26

(+) 3.93

(+) 8.06

(-) 16.12

(-) 35.02

(+) 4.06

Note: S M: Semi Medium; Figures are rounded up; Figure in bracket indicates percentage of household and area per household; * % increase/decrease in 2010-11 over 1970-71.

Source: Directorate of Economics and Statistics, Govt. of Assam.

From the table 2.7 it is seen that both the number of holdings and operated area of marginal and small size class increased from 1970-71 to 2010-11; number of holdings and area operated under semi-medium has also increased till 2000-01 and thereafter decelerated. Area operated under medium holdings decreased from 5.21 lakh hectares in 1970-71 to 4.37 lakh hectares in 2010-11. Numbers of holding and area operated under large holdings also decreased during the period. The distribution of operational holdings in the state is uneven. Holdings are also highly fragmented and situated in different

places making difficult to use modern technology, wastage of labour, time and other inputs and hence less suitable for efficient cultivation.

Table-2.8: Comparison in percentage distribution of Operational Households and Operated Area by size

categories in Assam with all-India from 1970-71 to 2010-11 (Rural) Size

Class Sta

te Operational Holdings Operated Area

1970 -71

1980 -81

1990 -91

2000 -01*

2005 -06*

2010 -11

1970 -71

1980 -81

1990 -91

2000 -01*

2005 -06*

2010 -11 Margi

nal

A 57.03 59.39 61.43 62.65 63.74 67.31 17.66 18.69 18.94 21.29 24.93 25.83 I 51.0 56.4 59.4 62.9 64.8 67.0 9.0 12.1 15.0 18.7 22.2 22.2 Small A 23.94 22.75 22.91 20.7 21.49 18.28 22.93 23.98 24.46 23.45 23.55 22.91

I 18.9 18.1 18.8 18.9 18.6 17.9 11.9 14.1 17.4 20.1 20.9 22.1 Semi-

Medi um

A 13.95 13.64 11.89 12.96 11.57 11.17 26.27 27.54 28.64 30.76 27.75 27.27 I 15.0 14.0 13.1 11.7 10.9 10.1 18.5 21.2 23.2 24.0 23.9 23.6 Medi

um

A 4.58 4.00 3.61 3.52 2.98 3.08 18.09 15.62 15.35 15.71 13.95 14.58 I 11.2 9.1 7.1 5.5 4.9 4.3 29.7 29.6 27.1 24.0 23.1 21.2 Large A 0.1 0.05 0.04 0.05 0.06 0.04 15.05 14.17 12.61 8.79 9.77 9.40 I 3.9 2.4 1.6 1.0 0.8 0.7 30.9 23.0 17.3 13.2 11.9 10.9 Note: * Excluding Jharkhand; A: Assam, I: India

Sources: (i) Author calculated from table nos. 2.6 and 2.7; (ii) Agriculture Census 2010-11, Agriculture Census Division, Department of Agriculture & Co-operation, Ministry of Agriculture, Govt. of India.

Table 2.8 gives a comparative statement of the percentage distributions of operational households and operated area owned by five broad size-classes in Assam and all-India from 1970-71 to 2010-11 as obtained from Directorate of Economics and Statistics, Assam, Agriculture Censuses and NSSO Land Holding Surveys. In Assam, the large and medium holdings, at the top 4.68 percent bracket, owned 33.14 percent of the total land in rural area in 1970-71, their share declined to 3.04 percent and 23.72 percent respectively in 2005-06. But in 2010-11, medium and large holdings increased to 3.12 percent and their land area also increased to 23.98 percent. On the other hand, considering the country as a whole, the large and medium holdings, at the top 15.1 percent bracket, owned 60.6 percent of the total land (rural) in 1970-71, their share declined to 5 percent and 32.1 percent respectively in 2010-11. At the bottom, the proportion of marginal holdings increased from 57 percent to 67 percent and operated area increased from 17.66 percent to 25.83 percent from 1970-71 to 2010-11 in Assam (Economic Survey, Assam, 2014-15) while in all-India; marginal holdings increased from 51 percent to 67 percent and operated area from 9 percent to 22 percent respectively during the period. Thus, percentage of marginal holding in Assam is almost same with India but operational area under marginal holding in Assam is more than all India level.

The process of marginalization of holdings has been witnessed by all the states in the country though the extent of marginalization varies from state to state. Inequality of land ownership in Assam can be understood by studying the evolution of the average size of holdings by ownership size-classes which are shown in table 2.9.

Table-2.9: Class-wise average size of operational holdings (area owned per household) in Assam and all India: (in ha.)

Size- Classes

State Average Size of Operational Holdings

1970- 71

1976- 77

1980- 81

1985- 86

1990- 91

1995- 96

2000- 01*

2005- 06*

2010- 11

Marginal A 0.45 0.44 0.43 0.40 0.39 0.37 0.39 0.43 0.42

I 0.40 - 0.39 - 0.39 0.40 0.40 0.38 0.38

Small A 1.41 1.41 1.43 1.43 1.36 1.37 1.30 1.22 1.38

I 1.44 - 1.44 - 1.43 1.42 1.42 1.38 1.42

Semi- Medium

A 2.76 2.73 2.74 2.69 3.06 2.63 2.73 2.66 2.69

I 2.81 - 2.78 - 2.76 2.73 2.72 2.68 2.71

Medium A 5.78 5.5 5.29 5.29 5.41 5.15 5.22 5.13 5.15

I 6.08 - 6.02 - 5.90 5.84 5.81 5.74 5.76

Large A 43.4 61.57 88.4 55.25 101 65.6 53.02 60.92 65.69

I 18.10 - 17.41 - 17.33 17.20 17.12 17.08 17.37

All size classes

A 1.47 1.37 1.36 1.31 1.27 1.17 1.15 1.11 1.10

I 2.28 - 1.84 - 1.55 1.41 1.33 1.23 1.16

Note: * Excluding Jharkhand; A: Assam; I: India

Source: (i) Calculated by the author from the table nos. 2.7 and 2.8; (ii) Agriculture Census, Census division, Department of Agriculture and Cooperation, Ministry of Agriculture, Govt. of India.

Table 2.9 shows that the area per household in the marginal class has gradually declined from 0.45 hectare in 1970-71 to 0.37 hectare in 1995-96 and it increased by a little. The average size of marginal land holdings in Assam is bigger than that of in all India. The average size of large operational holdings in Assam has increased from 43.4 hectares in 1970-71 to 65.69 hectares in 2010-11 whereas in all India it has decreased.

The pattern of land holding in Assam varied from place to place especially in between the plain and the hill areas. While some districts such as Cachar, Dibrugarh, Sibsagar and Lakhimpur have bigger size of land holding. The average size of land holding in Karbi Anglong and Dima Hasao has been relatively larger. This was mainly

due to the terrain conditions, low density of population and the prevalence of jhum cultivation (Gopalakrishnan, 2000).

The values of Gini‟s co-efficient (a measure of skewed distribution of land) cited in table 2.10 indicate the changes in the degree of concentration in the distribution of operational holdings in Assam and all India over the decades. There was a falling tendency of Gini‟s co-efficient of concentration of operational holdings in Assam and the all India since 1970-71 and in Assam the co-efficient was lower than all India average. In Assam, the co-efficient decreased from 0.5321 in 1970-71 to 0.4094 in 2010-11 whereas in all India it has decreased from 0.6205 to 0.5399.

Table-2.10: Gini‟s co-efficient of operational holdings of Assam and India based on different agricultural censuses:

Agricultural Censuses Assam All India

1970-71 0.5321 0.6205

1976-77 0.5298 0.6141

1980-81 0.5676 0.6052

1985-86 0.5341 0.5925

1990-91 0.5442 0.5805

1995-96 0.4563 0.5610

2000-01 0.5128 0.5513

2005-06 0.5149 0.5489

2010-11 0.4094 0.5399

Source: Calculated by the author

It is seen that the distribution of operational holdings is relatively less skewed than distribution of ownership holdings. Lorenz curve for the ownership holdings distribution has also more or less remained unchanged between 1961-62 and 2003. High incidence of landlessness and marginalization of landholdings pose a threat to livelihood security of rural poor households. About 79.6 percent households at the bottom own only 23.0 percent of the total area, while 3.6 percent households have land above 4 hectares own 34.7 percent of the total area.

Landlessness and the Land Acts:

Landlessness among farmers is another characteristic of Indian agriculture. The NSSO (2006a) defines landless households as only those households which own less than 0.002 hectare or less than 0.05 acre or less than 0.15 bigha of land. Owning less than 1 acre as

„effective landless‟. According to 59th Round of National Sample Survey (NSSO, 2006b), nearly 6.6 percent of the rural households in India don‟t own any land, while about 3.4 percent households own on average 0.002 hectare only. These two categories of rural households are generally categorized as landless. Table 2.11 reveals the changes in proportion of landless households in rural Assam and India as estimated by the survey of NSSO.

Table-2.11: Changes in proportion of landless households in Assam and all-India (Rural)

State/Year Percentage of landless households

1961-62 1971-72 1982 1992 2003 2013

Assam - 25.0 7.5 13.4 8.1 7.42

All-India 11.7 9.6 11.3 11.3 10.00 7.41

Source: NSS 59th Rounds (2003) and (2013).

Surprisingly landless families in rural Assam significantly declined after 1970s.21 The percentage of landless households in Assam has decreased from 25.0 to 7.42 as decreased in all India percentage from 9.6 to 7.41 during the period from 1971-72 to 2013. However, average area owned per household in rural Assam was 0.551 hectare, if landless households are excluded, it was 0.599 hectare while in rural India these figures were 0.725 hectare and 0.806 hectare respectively in 2003 (NSSO). The Assam Fixation of Ceiling of Land Holding Act, 1956 was vigorously enforced in entire plain districts of Assam and land ceiling was fixed at 50 bighas (16.6 acres or 6.7 ha) per family in 1970.

Surplus land acquired under Ceiling Act was distributed for various purposes and some lands were also distributed to the people and as a result landless families in Assam were decreased significantly (Brahma, 2013). Moreover, the decision to grant ownership under the Rights of Tenant‟s Act, 1971 entitled the Bengali refugees of the early 1950s, who

21 In view of the 1970 land policy the government of Assam in collaboration with the Panchayat (a village level administrative body) undertook a survey of landless persons during early 1970s and it reveals 622295 landless persons in Kamrup in 1969 included in three different categories. First, persons having no land numbered 228833; next, persons having 1.65 acres numbered 285984; and lastly, persons having 1.65 to 2.64 acres numbered 107568 (Baruah, S. N., Rural Economy of Assam (art.), The Assam Tribune, March 8, 1972).

had been mere bargadars, to become land owners in the 1970s. So the numbers of landless households in the state decreased after 1970s. Another important factor that contributed to decline of landless families in Assam was the impact of the Assam Bhoodan Act, 1965 which provided the basis for regulation, distribution and settlement of bhoodan land. In pursuance of this Act, nearly 12000 acres of land were donated of which 928.85 acres could be distributed among 856 landless families (Directorate of Land Requisition, Acquisition and Reforms, Assam).The Government Land Policy 1968 and 1989 encouraged Gramdan and Bhoodan movement in the state. Besides, the implementation of Minimum Need Programme and Rural House Sites Scheme from 1974-75 for rural landless agricultural workers also reduced landless families in the state.

Tenancy in Assam:

An unequal situation of the rural poor in accessing land through ownership may be partly improved if they are able to lease in land from large and medium farmers. The NSSO (2013) show that about 14 percent rural households in India lease in land which accounts for nearly 12 percent of the total area owned. Out of total leased in area, 74.2 percent are operated by marginal, small and semi-medium farmers. The large farmers share only 11.2 percent of the total leased in area (Haque, 2005).

Tenancy is an important agrarian institution in Assam and a sizeable portion of the state rural farm population is engaged in share tenancy. The historical pervasiveness and the persistence of tenancy have widely been noticed in the state. The evolution of the institution of tenancy can be traced back to the land revenue system in Assam (Goswami, 1962). Share tenancy is more prominent among small and medium size group of farmers in Assam. The main factors influencing share tenancy, from the point of view of the tenants are insufficient land to meet the farm family need and surplus labour. More than sufficient land, labour shortage and managerial problems are the reasons for leasing22 out the land by the big land owners. Moreover, indivisible and non-tradable inputs, nature of crops grown, area under irrigation, absenteeism of land owners, inferior quality of land, land not suitably located, etc. also determine the magnitude of tenancy (Barman and Das, 2005). The existing share cropping arrangement is still a major factor influencing the

22 Land Lease: Granting of the right to use a piece of land to others, either on rent or free, by the owner without transferring the title. In the land holding surveys of NSSO, hereditary tenancy and long-term lease for 30 years or more are not treated as land lease---they are treated as land ownership. On an average, a tenant holding included about 0.7 hectare of leased-in land during 2002-03.

economic performance of the share tenants. In many cases the tenants discriminate between their owned plots and share cropped plots. The share tenants mainly prefer output sharing ratios on a 40:60 and 25:75 basis. In Assam plains, sharecropping in the form of half share of the produce was the principal form of tenancy. This system is known as Adhi and the share croppers are known as Adhiars. Table 2.12 shows the share tenant holdings and share of area leased in from 1961-62 to 2002-03 in Assam with comparison to all India.

Table-2.12: Percentage of tenant holdings and operated area leased-in for Assam and India: (Rural)

Note: (i) Tenant holding stands for an operational holding with wholly or partly leased in area; (ii) Data for 2002-03 relate to the Kharif season

Source: Report No.492, NSS 59th Round, 2003; NSS 70th Round, 2013.

The results of the 59th round reveals that both percentage of tenant holdings and percentage of operated area leased in for rural Assam and India are declining during the period of 1971-72 to 2002-03. According to NSSO data, in 2002-03, only 9.9 percent tenant holdings with 6.5 percent of operated area in all India and 8.9 percent tenant holdings with 5.3 percent operated area in Assam was under tenancy. Tenancy holding and share of leased in area in India have increased to 13.65 percent and 11.62 percent respectively in 2013 but in Assam both the share of tenant holdings and leased in area decreased. Percentage of households reporting leased out land is also less in Assam (1.78%) compared to all India (3.26%) in 2013 (NSS 70th Round Report, 2013).

The NSSO landholding surveys classify tenancy contracts relating to leased in land into the following categories: (a) Fixed Money lease, (b) Fixed Produce lease, (c) Share of Produce lease, (d) Service Contract lease, (e) leased from Relatives, (f) Share of Produce along with other terms. Among the forms of tenancy contract, share-cropping is predominant, i.e., the shares of produce lease (Basole and Basu, 2009) (see appendix Table II.2).

Most of the contracts for share cropping and for kinds of rent are verbal. Further, land-owners change tenants frequently to frustrate the provisions of laws (Phukan, 1990).

State Percentage Share of Tenant Holdings Percentage Share of Area Leased in 1961

-62 1971

-72 1981

-82 1991

-92

2002- 03

2013 1961 -62

1971 -72

1981 -82

1991 -92

2002 -03

2013

Assam - - 12.9 10.1 8.9 7.04 - - 6.4 8.9 5.3 4.5

All India 23.5 25.7 15.2 11.0 9.9 13.65 10.7 10.6 7.2 8.3 6.5 11.62

After share cropping, it is „fixed money‟ term which has also been reported as the common form of tenancy in Assam. The incidence of tenancy in land leasing in Assam is lower than all India level. Table 2.13 compares the distribution of land leased out in terms of lease in Assam with India.

Table-2.13: Percentage distribution of area leased-out by terms of lease: 2002-03 and 2013

State For Fixed Money For Fixed Produce For Share of Produce Other terms All 2002-

03

2013 2002- 03

2013 2002-03 2013 2002- 03

201 3

2002- 03

201 3

Assam 20.47 10 0.00 24 38.71 52 40.82 14 100 100

India 31.04 28 15.30 12 39.55 38 14.11 22 100 100

Source: (i) Govt. of India (2006), Household Ownership Holdings in India, 2003, NSS Report No. 491, (ii) NSSO, 70th Round Report (2013).