SPECIAL NUMBER JULY 1959 THE ECONOMIC WEEKLY

(II)-Politics of It Will the Peasant Accept It?

Walter Hauser

Discussions on joint cooperative farming overlook the most important question: Is the idea accept­ able to the man in the village who will be directly affected?

The Indian peasant is highly individualistic and does not relish the thought of impersonal relation- ship with his land.

Pandit Nehru knows alt this. He is perhaps more aware of the traditional pattern of rural think­ ing which has to be overcome to achieve these ends than many of his critics give him credit for. When he speaks of cooperatives, he thinks in terms of working in the fields together in a spirit of cooperation "which must bring out the farmer from his age-old traditions'.

The socialist ideal by itself cannot provide sufficient stimulus to pursue the idea of cooperative farm­ ing with sufficient vigour to solve India's problems, even assuming that its claims are valid in the Indian context.

The author writes from his background knowledge of the Kisan movement which he has been studying for the past two years.

THE Nagpur Resolution on agri­ nor any of the kisan adjuncts of cottage industries. They will also be culture is the accepted policy of the other political parties have been responsible for credit and other ser­ the Congress. The Resolution re­ able to prosper since Independence, vicing functions, including market­ presents the most significant agra­ following the break-up of the origi­ ing and storage. rian programme formulated by the nal kisan movement in the War (4) In order 'to remove uncertain­ Congress since the abolition of period. There are a number of fac­ ty' regarding land reform, ceilings zamindari in several States follow­ tors responsible for this, not the should be fixed on existing and ing Independence and culminates a least of which is the fact that as future holdings; and legislation to long history of agrarian reform political parties in an Independent this effect, as well as for the aboli­ attempted both by the Congress India, responsible to a mass rural tion of intermediaries, is to be com­ Party and its Governments. electorate, the policies of the parties pleted in all States by the end of themselves have necessarily had However, even before Nagpur, the 1959. Whatever surplus land ac­ much to do with the major agricul­ interest of the Congress in develop­ crues as a result of imposing ceilings tural problem that faces the country. ing the agrarian sector was demon­ is to vest in the panchayat and to For this reason the Nagpur Resolu­ strated strikingly in the West Ben- be managed through cooperatives tion on agriculture, as has already gal Congress Kisan Conference held consisting of landless agricultural been indicated, is the basic and ma­ at Kakdwip in March, 1958. That labourers. jor policy of the Congress itself. meeting, taking place in an area (5) In order to assure a fair price where the Communists had run a Provisions of Nagpur Resolution to the tiller, a minimum price is to be parallel government in 1949-50 fol­ Provisions of the Nagpur Agra­ fixed reasonably in advance of the lowing an armed insurrection, also rian Resolution have by this time sowing season of each crop. indicated the awareness of Congress become familiar. Essentially it (6) State participation in the politicians that the rural sector held covers the following key points: wholesale trade in foodgrains to be the key to their political power. To (1) The agrarian pattern should be brought about. augment that strength on a general that of cooperative joint farming (7) Uncultivated waste to be basis, and particularly in the Kakd­ in which the land would be pooled brought under cultivation with a wip area where an overwhelming for joint cultivation, the farmers Central Government Committee de­ majority of peasants are sharecrop­ continuing to retain their proprieto­ termining the utilization of the pers, the Congress decided to orga­ ry rights and getting a share from new lands. nise a kisan wing. The presence of the net produce in proportion to their Shri U N Dhebar, then Congress The three primary aspects of the land, while those who do the work, President, and the Union Minister, Resolution are those relating to owners or not, will get a share in Shri A P Jain, lent weight to this joint cooperative farming, service proportion to the work they do. policy of revitalizing the Congress cooperatives and land ceilings. It (2) Preparatory to this, service organisational machinery down to is on the first of these points that cooperatives are to be organised. its lowest level, viz, the Mandal most of the discussion and opposi­ This stage of the process is to take Committee, in order to strengthen tion have centered. As for the issue a period of three years. the Party at the basic kisan level. of service cooperatives, which envi­ It is not, however, entirely correct (3) The cooperatives are intended sage the development of new techni­ to assume that a kisan wing of the to introduce progressive farming cal facilities In the countryside such Congress could be the instrument methods and improved techniques of as the provision of improved seeds, for effecting agrarian reform. Nei­ cultivation, developing animal hus­ fertilizers and irrigation works and ther the kisan wing of the Congress bandry and fishery and encouraging are to handle marketing on a co- 1038 THE ECONOMIC WEEKLY SPECIAL NUMBER JULY 1959

operative basis, there appears to be in the Congress would be a gross Krishna Ballabh Sahay, who is per­ little real opposition. The coopera­ overstatement. If differences on haps the strongest exponent of tive idea may be said to find general the issue have not led to more sece­ agrarian reform in the State, is now acceptance to this extent, and cer­ ssions or a split, it should be taken a defeated candidate and out of tainly it is in this sphere that the to reflect a wide range of political office, and in the temporarily ineff­ ideal of social justice can combine self-interest, rather than political ective position of leader of a dissi­ with practical considerations and valour, on the Part of the many who dent, minority group within the political wisdom to produce the are in fact opposed to the policy. Bihar Congress. Similarly in the greatest results in Indian agricul­ Nevertheless, there are those Con­ Punjab there is division on the ture. gressmen whose opposition to Nag­ issue while in West Bengal the posi- Land ceilings, though causing pur is clear and decisive. One of tion is not entirely clear In the more concern than service coopera­ the most lucid and well-reasoned South, Andhra is also divided with tives, also find favour in so far as expressions of opposition was made important Congressmen in opposi­ the ceiling legislation is not likely by Shri Charan Singh, the former tion, while Shri N G Ranga, who is to break up already productive Revenue Minister of Uttar Pradesh, associated with the All-India Agri­ farms, and will take into consider­ who spoke against the resolution at culturists' Federation, has left the Congress on this question. Shri ation differences in the character of Nagpur, but later voted as a 'loyal Ranga has an impressive back­ the land, as exemplified by irrigated Congressman' for the sake of una­ ground as one of India's foremost and dry land. It is also hoped that nimity of support. He contends peasant leaders. In and out of the prior transfers of land will be re­ that cooperatives will lead to big­ Congress a number of times, he is cognized by the impending legisla­ ness and that this, with mechanised now one of the leading figures in tion, and that compensation at the agriculture, will in fact result in a the new Swatantra Party. Else­ prevailing market price will be paid. decrease in per capita production where in the South, the Chief Minis­ Real Issue rather than an increase. Figures of some European countries and espe­ ter of Madras is a strong supporter The real issue in the debate re­ cially of Japan, where the per capita of agrarian reform and his Finance lates to joint cooperative farming. production is considerably higher Minister, who had earlier opposed On this question, the leading propo­ than In countries where large hold­ the cooperative reform, is now a nent is the Prime Minister himself ings prevail, have been cited in sup­ supporter. Yet there are political who looks upon cooperative farming port of this argument. This position factors in the State which indicate as the means whereby production often overlooks the fact that there that the pace will not be rapid. can be increased, and production, is in these small-holding countries a Of the States with Congress Mi­ after all, is the problem that needs climatic condition different from nistries, the one that is most likely to be tackled. And when Shri that of India, and that in any case to move forward in the implemen­ Nehru speaks of cooperatives, he there is a certain basic minimum tation of the Nagpur Resolution is thinks in terms of working in the below which intensive farming Bombay, where cooperatives have fields together in a spirit of coope­ would not necessarily mean higher already had a good beginning and ration 'which must bring out the per capita production. But the where the Congress is united in its farmer from his age-old traditions'. argument, nevertheless, has strong desire to carry out a rapid policy A cardinal tenet of the Prime validity given the attitude of the of agrarian reform. Ministers' position on coopera­ Indian peasant towards coopera­ C R's Opposition tive farming is that it must tives, and assuming the development be done 'with the consent of the of technical facilities that the pro­ The most vigorous and articulate people'. He is perhaps more aware posed service cooperatives are to opposition to the Nagpur Resolution of the traditional patterns of rural provide. has come from Shri C Rajagopala- thinking, which need to be over­ chari, the first Governor-General of come to achieve these ends, than Position in Various States Independent India. Recently he many of his critics give him credit Shri Charan Singh apart, the founded the conservative Swatantra for. He has announced that he would Chief Minister of U P can himself Party on this very issue. He sees go from village to village and field hardly be considered a strong ex­ great danger In the Congress pro­ to field to plead the validity of his ponent of the cooperative idea. He posals. Joint cooperative farming views before the peasants of India. has indicated that the Resolution would mean multiple ownership and He makes a just and legitimate should be implemented, but his sup­ multiple management, and that claim for knowing and understand­ port seems lukewarm especially in would mean too much management. ing the mind of India's masses, and, the light of fears expressed earlier A new bureaucracy would have to in his view, the Nagpur Resolution that collective farms would be the be created and there would be in­ is in keeping with the trend of the logical sequel to cooperatives. Bihar creased Government intervention at times in the country. is, In a similarly doubtful position. all levels and also constant reliance on Government leading to a fall in Shri Nehru is prepared to uphold The Chief Minister, Sri Krishna production rather than a rise. Com­ the decision of Nagpur as the official Sinha, supports the cooperative idea pensation would have to be paid Congress view at the cost of split­ and tours the State tirelessly to for transferred land and that would ting the Party itself. The Nagpur propagate the programme and edu­ mean converting land ownership Resolution certainly has received cate the people. But some of the into money, and more money in cir­ great support in the Congress; but key figures in his Cabinet and in the culation would mean inflation. This, to say that the unanimity with ruling group of the Congress are combined with a fall in production, which it was accepted at Nagpur opposed to cooperative farming. The would have disastrous results, the reflects fully the true position with­ former Revenue Minister, Shri 1039 SPECIAL NUMBER JULY 1959 THE ECONOMIC WEEKLY whole process being pursued in the in relation to agriculture was given them as Individuals and as Prime hope of equalizing social happiness a considerable fillip by the press Minister and President have not while in fact distributing poverty. reports in mid-June of an exchange been uncommon. But this does not The prospect of indefinite radical of letters between President Rajen- detract from the significance of change would make for great un­ dra Prasad and the Prime Minister what the President says and its certainty, and this in turn would which revealed important policy importance in political and econo­ largely destroy the incentive that differences on the agrarian question mic terms for the country. Rajen- was so necessary in agriculture. and other developmental matters dra Prasad may be considered an Shri Rajagopalachari has no fear of between these two eminent leaders. orthodox political thinker, but he is hoarding by grain dealers. In fact, The President accepts the principles first and foremost a man of total according to him, the best guaran­ underlying Government's socialist honesty and integrity. When Dr tee for honest and fair distribution goal, but expresses concern for an Prasad speaks, he cannot be accused is in the competition of the whole­ increase in the production of food- of representing any angle other than sale and retail trade. In short, the grains and urges that this problem that of the welfare of his country, policy of the Swatantra Party can should not be confused with pro­ and it would be preposterous to as- be said to be one of individual grammes of social legislation. In sume that his is barren opposition enterprise and trusteeship. regard to cooperatives, Dr Prasad to socialism as such. His know- cautions against causing any psy­ ledge of Indian rural conditions is Shri Rajagopalachari raises the chological upset by giving rise to perhaps unique in the country. The bogey of Communist China and the a feeling that the peasant's owner­ President comes from a village in dislocation and extinction of family ship of small holdings may be jeo­ Saran District in Bihar; and, as bonds. He warns that the Govern­ pardized. In fact he goes to the has been true of virtually every ment of India 'is going on the same point of urging encouragement for important nationalist leader that road. . .what is described as happen­ the existing large farms and crea­ Bihar has produced, his background ing in China will happen, is bound tion of new farms utilizing mecha­ is that of the peasants of India. to happen here also'. To avoid this nised methods. The President ac­ He is indeed a village man, an agri­ is needed a 'national opposition cepts the idea of service coopera­ culturist, a kisan of India, in the which would stand for the freedom tives which would provide the neces­ finest sense of those terms. His of man, freedom of the farm and sary credit, improved seed and irri­ perception of Indian agrarian life the family as against the attack gation facilities. As to State trad­ must be given serious consideration. by totalitarianism on the freedom ing in foodgrains, the President Validity of Socialist Ideal of everybody'. This is necessary feels this would merely multiply 'not to change the Government, but difficulties by giving rise to vast Shri Nehru has himself raised opposition will help to keep the organisational and personnel prob­ some doubt as to the validity of Government in proper order'. lems. In general the approach of the socialist ideal in a country like Dr Prasad is one that is far more India. In his recent speech before Finally C R charges the Congress cautious than that of the Prime the Nepal Council of Asian Rela­ with fostering 'class hatred' which, Minister. And in some respects at tions and World Affairs in Khat- with the taxation system, had cut least, it approximates to the posi­ mandu, he said that he considered at the very roots of production and tion of the Swatantra Party. himself a socialist but he believed the national economy. He concludes that socialism in a poor country that the core of the Congress and While the Prime Minister has could only mean that it would re­ its rank and file have become 'deplored' the publicity given to his main permanently poor. Instead of essentially corrupt, selfish and exchange of views with the Presi­ producing wealth in a real sense, greedy, and that the Congress has dent and refused to discuss the it might only equalise poverty. He refused to infuse new blood into the letters, press reports indicate that implied that Industrial development organisation, and is 'bent on ruling he emphasized the fact that service must come first. To be sure, deve­ the country with its traditional cooperatives were the primary con­ lopment of the basic industrial monopoly of power'. Certainly the sideration at the moment, although complex in India is a key point in most serious charge which the lea­ he would like cooperative farming Shri Nehru's economic programme, der of the new party brings against to develop gradually. On other but perhaps quite unintentionally the Congress is that its leadership points, he defended and justified his his remarks have raised doubts as has been affected by 'megalomania', already familiar position. to the propriety at this stage of which, he feels, has vitiated the proceeding with rationalisation of planning of the country. It must be made very clear in regard to the President's expressed agriculture on cooperative lines. President's Views views, that in the constitutional set­ To assess the Congress policy on The Prime Minister himself, per­ up in India all responsibility devolves joint cooperative farming accurate­ haps more out of respect for C R on the Cabinet which is answerable ly, it must be judged by at least than for his party, has welcomed to an all-powerful Parliament, very three criteria, namely, its political its role as an opposition party similar to the British example. And wisdom, its general acceptability though considering it little more similarly the role of the President and its merits. than the political projection of the is not unlike that of the British With regard to the first of these Forum of Free Enterprise, a charge monarch. As such, the President's points, it may be said that so long that Shri Rajagopalachari rejects. remarks must be looked upon as as Shri Nehru is there, virtually any He rather associates the Party with advice tendered by a revered leader, policy of Congress will have politi­ the position taken by the Agricul­ with whom the Prime Minister is cal wisdom even though basically tural Federation of India. indeed in frequent consultation. In it may not be accepted by the vil­ The debate on economic policies fact, exchanges of views between lager who casts the vote for the 1040 SPECIAL NUMBER JULY 1959 THE ECONOMIC WEEKLY Congress. This is so because of thoughtful response was that if the ill-founded. It is idle to assume the magnetic personality of the advocates of Bhoodan were serious that the family structure would be Prime Minister whose amazing ap­ in their desire to help them, they endangered by the 'thin end of the peal continues at the mass base of should distribute the lands on an Communist wedge' which is the Indian society. But it is important individual basis. phrase used by some critics to in this context to differentiate be­ Monumental Task describe cooperatives. The wedge tween policy and personality. And Overlooking the monumental di­ may come from Borne other direc- it is also important to distinguish mensions of the task of initiating tion but not from cooperative between ideas of reform that may cooperatives in India's 5 to 7 lakh farming. sound attractive and their practical villages, the attitude going with Since compulsion will never be implementation. our peasants would call for an even used in democratic India to estab In many discussions on the issue more monumental effort of conver­ lish cooperatives, which automatic­ of joint cooperative farming, the sion and education. Shri Jayapra- ally rules out radical solutions to most important question is frequ­ kash Narayan refers to the villages the agrarian problem, what alter ently overlooked: Is the idea accep­ as India's 'sleeping giant', The natives can there be to joint coope- table to the man in the village who giant must be stirred to a new cons­ rative farming? will be directly affected? If he does ciousness to achieve the Bhoodan The alternatives can be found not agree with the idea, then most ideal, and, similarly, to achieve the both in the Congress resolution on of the discussion on the subject be­ cooperative ideal. But unfortunately service cooperatives and ancillary comes largely academic. The fact such ideals are often remote, and agrarian reforms, and in some of that the Congress policy envisages that is so in the case of cooperatives the points made by Congress critics a voluntary programme makes the no less than of Bhoodan. This would mean first an attempt task all the more difficult and for There are centres for training co­ to remove the uncertainties that all practical purposes virtually im­ operative personnel, and the Union both Shri Rajagopalachari and Dr possible. The socialist ideal by it­ Government has provided training Rajendra Prasad expect to flow out self cannot provide sufficient stimu­ facilities to place a cooperative offi­ of the vague and uncertain agrarian lus to pursue the cooperative farm­ cer in each of the National Exten­ reforms now pending. ing idea with enough drive to solve sion Blocks. At the same time the In a more positive direction it India's problems now or in the near All-India Cooperative Union is send­ would mean an urgent effort to future, even assuming that the ing touring groups into districts to provide through service cooperatives claims of cooperative farming are educate members of the co-opera­ the latest technical facilities in valid in the Indian context. tives themselves. Yet all these pre­ agriculture. This relates to ferti­ The Indian peasant is intensely parations appear infinitesimal in the lizers, manures, seeds and irriga- individualistic. He has a love for shadow of the task. This is all the tional facilities, which are so vital his land that nearly borders on a more so, considering the past un­ to agricultural progress over the personal relationship, and he does successful history of cooperatives greater part of the country. It not like to share it with others. The in most parts of the country, these would also mean providing reliable fact that Just now cultivable land is institutions being viewed by the credit and marketing facilities scarce and that land disputes con­ peasants as mere extensions of through service societies that would stitute the most fruitful source of Government into the villages. minimise the peasant's reliance on litigation is not likely to enhance As to the merits of cooperative the bania. These latter services the peasant's desire to share the farming as an instrument for lar­ and also others, for that matter, land he now holds. It may also be ger production, there appear to be must be administered by incorrupt­ noted that the peasant's Individual­ valid pros and cons argued by both ible persons who are sufficiently istic preoccupation is evident in the sides, and these have already been well-paid to keep away from corrupt failure of cooperative farming ven­ cited. The key issues seem to be practices and who would be sternly tures in the past in India, with two, firstly, the need of avoiding dealt with should they indulge to members most frequently evincing the proliferation of large-scale corruption. There should also be a interest in their own. rather than bureaucratic control and secondly, minimum price guarantee to assure in the common, good. of solving the problem of helping the peasant of a reliable income. A recent observer in North Bihar, peasants to get along cooperatively And finally a concerted effort must who spent two months in villages on the farm. The first considera­ be made to bring waste lands under and is himself an educated villager, tion is met to a degree by the pro­ cultivation. And in other areas ventured the estimate that no more posal to operate through the Ex­ scientific knowledge should be ap­ than one per cent of peasants in tension programme and by the sug­ plied to the problem of double that populous part of the State ac­ gestion from Dr V K R V Rao that cropping. cepted cooperative farming as a the form of organisation should be Healthy Beginning means of cultivation. sufficiently small to avoid excessive Given these circumstances, with administration. The second prob­ Lest it be assumed that this indi­ programmes to be assidiously pur­ lem is a very formidable one in­ vidualism is found only among sued by Government at the prac­ deed as has already been indicated. middle and small holding peasants, tical level, the substance of the a case relating to landless agricul­ In the light of these bleak prosp­ policies of the Congress as influen­ tural labourers must be cited. When ects for the acceptance of cooper­ ced by the views of its critics can Bhoodan lands were offered to such ative farming as a means of incre­ certainly be instrumental in raising labourers for cooperative farming asing production in the foreseeable the productive capacity of Indian in so widely separated areas as future, the fears of Shri Rajagopal- agriculture, which is of such vital those of Bihar and Malabar, the achari in many respects seem necessity today, If legislation Is 1041 SPECIAL NUMBER JULY 1959 THE ECONOMIC WEEKLY

necessary to implement the resolu­ ponents claim is the need of the developments mat may ensue when tions and policies, that should be hour, does not succeed, what will Prime Minister Nehru is no longer attended to. The recent appoint­ then be the result of such a failure? in office. Yet there would be no ment of working group with Shri The unpleasant outcome of such a cause for much pessimism under S Nijalingappa as chairman, to development has recently been fore­ any circumstances if the productive formulate specific measures to en­ shadowed by a Bihar Congress M P, capacity of the country does in­ sure the facilities discussed here, is who supports cooperative farming, crease; and this should be possible a healthy beginning. as 'chaos and confusion'. And that without insistence on the specific prognostication is unfortunately not condition of joint cooperative farm Assuming that the experiment in an isolated one, although it is more ing. Other methods and policies cooperative farming, which its ex- frequently used to indicate possible can serve India's interests us well.

(III) — Economic basis Case for Cooperative Farming S K Bhattacharyya

The case for cooperative farming rests on the unique contribution it makes to solving the problem of investment in agriculture, without creating inflationary pressure. It also helps solve the problem of equit­ able distribution of the gains from this investment. Peasant psychology can be taken care of through ownership dividends, preceded by re-distribution of land. Economies of scale are not crucial to the success of cooperative farming. A cooperative farm need not cultivate the entire land as one compact block. Cooperative farming is expected to increase the marketable surplus by raising productivity and thus satisfy the concern for social justice and help to speed up economic development at the same time. Training of adequate cadres is essential for its success and the pace of cooperative farming must be slow in the beginning.

I mic Weekly (Special Number— chemical fertilisers constitute the NOT all the arguments that, are July, 1958). The object of this note programme of the first type. This currently being advanced for is primarily to reestablish that ar­ js, by and large, the centralist and against cooperative farming In gument in the context of some approach to the solution of the India seem to recognise adequately alternatives proposed and some im­ problem. The centralist is con­ the necessity of distinguishing be­ portant objections raised, vinced that it is next to impossible tween the general case and a special II to devise any organisational ma­ case. Opposition is often based on The economist's case for coopera­ chinery which may induce the mil­ certain general difficulties that the tive farming in an underdeveloped lions of illiterate and conservative institution of cooperative farming economy of our type rests mainly peasants themselves to introduce may have to face, while it is not on the fact that it is the only fea­ superior techniques and undertake uncommon to find support being sible method of solving in a signi­ investment projects not always canvassed on the ground of some ficant manner the problem of in­ directly related to their individual general desirabilities of the coope­ vestment in agriculture. Almost holdings. He, therefore, pins his rative form of organisation as everybody knows by now that the faith on whatever can be done by such. Thus conducted, the debate set of chain reactions which can the state itself. may prove to be endless. If it be lift our economy out of the morass But such projects necessitate the case, however, that in the spe­ of stagnation can only be started mobilisation of considerable amounts cial situation of the Indian econo­ by the initial spark of a sizable of resources; also, they generally my, given its needs and the nature increase of investment in agricul­ have long gestation periods. It is of its resources, there is hardly any ture followed by a considerable apparent that we can hope to exe­ alternative to cooperative farming, increase of agricultural output. cute, at the initial stages, only a much of the present discussion But the problem remains, how to very limited number of such pro­ would appear to be pointless. For kindle that initial spark? jects, and that the time necessary 1 then, the Issue is no longer a mat­ Proposals for tackling this all- for achieving the 'critical level of ter of choice between different important problem are in many increase in agricultural output in institutional patterns of agricul­ cases of a mixed character. We this manner will be pretty long. ture only; it becomes the very vital can however, conveniently group But time is of crucial importance one of the choice between stagna­ them under three broad types ac­ in our programme for economic tion and development. Dr K S cording to their main emphasis, development. As time passes, the Gill pressed home this point quite (1) Centralist, Big Projects consumption standard will tend to ably in his article on Chinese ex­ Big darns, large-scale irrigation rise and the population pressure perience, published in The Econo- projects and adequate provision of will increase, so that the 'critical' 1042