Commercialisation of agriculture refers to the shift from subsistence farming to the production of crops for sale and profit in the market. Some crops are grown only for sale, like indigo, cotton, and sugarcane, while some crops are grown for both consumption and sale, like food grains. The medieval rulers preferred to collect land revenue in cash. Therefore, peasants had to sell their crops in the market. The commercialisation of agriculture, thus, was not new to the Indian economy during the British period. However, its nature and impact were new.
The rapid industrialisation in England was one important reason for the change in crop patterns in India. English factories and mills needed cotton, indigo, sugarcane, wheat, tea, tobacco, etc. The British made policies and developments to suit their commercial interests. Railways and road networks were developed along with ports so they could easily export agricultural raw materials from India. With the invention of the steam engine (1769) and the opening of the Suez Canal (1869), the transportation of agricultural raw materials became much easier. To make it further attractive, the British Government heavily reduced the freight rate on agricultural produce, including wheat and rice. Many peasants were encouraged to grow 'cash' crops when they saw the possibility of earning a good profit. In some places, peasants also cultivated cash crops to pay land revenue, fearing they might consume the food crops themselves.
The pattern of commercialisation varied from crop to crop. Tea plantations were directly managed by whites, who kept the labour force in miserable conditions. In other places and with other crops, well-off peasants cultivated cash crops themselves. The peasants of eastern Bengal cultivated indigo, the peasants of the Deccan cultivated cotton, the peasants of U.P. cultivated sugarcane, and the peasants of the Central Provinces cultivated opium. English traders, in some places, gave advance money to peasants to grow the crops of their choice.
Impact of Commercialisation of Agriculture
1. The cash crop required more investment. For bigger threads, high-yielding seeds were required to grow cotton, which was exported to Manchester mills. Such high-yielding seeds required more irrigation.
2. High investment forced the peasants to borrow money from planters and moneylenders (the Mahajans) who trapped them and charged heavy interest. They also cheated the peasants.
3. The growing trend of cultivating cash crops resulted in the shortage of food crops, making them costlier. Due to the pressure of rent and land revenue, peasants in many places cultivated commercial crops and higher-priced food grains like wheat, which meant a shift away from poor men’s food crops like bajra, jowar, pulses, etc. This aggravated the situation during the famine years.
4. Due to the commercialisation of agriculture, the Indian market was linked with the international market. Widely fluctuating prices in the international market often affected the prosperity of Indian peasants. The Deccan Riots (1875–79) stand as a testimony to this fact.
5. Due to the export of raw materials like cotton, Indian manufacturers found it extremely difficult to purchase it. It became one of the reasons for de-industrialisation in India.
6. The role of various agents and intermediaries increased due to the commercialisation of agriculture. They brought crops from rural areas to cities, then to port cities for export. Even prices were dictated by them, and the peasants never got the actual price of their produce. However, in crops like sugarcane, the role of intermediaries was limited as sugar mills were situated nearby, and unlike cotton or indigo, it could not be stored for a long period. Intermediaries were also not seen in areas where the road network was good, and peasants were relatively in good condition.
7. It was often noticed that when the cash crop market was in an upswing, the demand for land revenue also increased, adding further to the woes of the peasants.
8. For rich peasants, cash crops were a matter of choice, but for medium and marginal peasants, it was nothing short of forced commercialisation.
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