Opinion | Indian agriculture’s problem of scale
Live MintThe past few days have neatly summed up the scale and nature of the challenges facing India’s agriculture sector. First, the provisional agriculture census 2015-16 showed that landholdings have continued their decades-long trend of fragmentation, leading to a further rise in the proportion of small and marginal farmers. In his famous 1962 The Economic Weekly article, “An aspect of Indian agriculture”, Amartya Sen had argued that small farms have higher per-acre output. Cobbling together data from the National Sample Survey Organisation, agriculture census and the Union ministry of agriculture’s input survey, they found that the inverse relationship between farm size and per-hectare agricultural productivity still holds. And as Sen, with a sting in his article’s tail, had pointed out, “the factor that makes the crucial difference is not size as such, which is incidental, but the system of farming, whether it is wage-based or family-based.” Andrew D. Foster and Mark R. Rosensweig backed this up last year, studying village-level survey data on farms to find that productivity actually follows a U-shaped distribution curve.