Project title: Smallholders in Indian Agriculture-Past-Current Status and Future

Project leader: P. A. Lakshmi Prasanna

Project team: Dr. P. Adhiguru, Dr. Rajni Jain and  Dr. Shiv Kumar

Background:

The Indian agriculture is undergoing structural change in terms of increasing share of smallholders both, in operational holding number and area. This is likely to have far reaching implications for the Indian economy as the issue of smallholder viability is inextricably related to observed structural change. The project attempts to identify underlying causes and consequences of structural change for understanding its implications for Indian agriculture.

Objectives:

1. To examine spatial and temporal changes in operational holdings and growth of small holders in India.

2. To examine changes in production portfolio of smallholders and also examine smallholders input use pattern, access to information and credit.

3. To study access to market and marketable surplus of smallholders.

4. To analyze implications of changing farm structure.

Study area:

Secondary data from Agricultural census (from 1970-71 to 2000-01) and Input survey (from 1976-77 to 2001-02) will be analysed considering states as units.

Methodology:

1. Tabular analysis, functional analysis using regression framework.

2. Markov chain – transitional probability in analysing structural change.

3. Data Envelopment Analysis –for analysing efficiency in agriculture.

Key findings:

1. At all-India level inequality in distribution of operational holdings has declined.

2. U.P. and Bihar are top two states both in 1970-71 and 2000-0, in terms of their share in number of smallholders operational holding in the country.

3. In 1970-71, these two states also had highest share in area under operational holding, while by 2000-01, it was U.P. and Maharashtra that had maximum share.

4.  At all-India level operational holdings area under tenancy are declining.

5. Share of smallholders both, in wholly leased in area and in partly leased in area is showing increasing trend.

Funding agency: NCAP