CONDITIONS IN THE RICE ECONOMY Case Studies of Tamil Nadu and Assam

NARENDAR PANI

A thesis resubmitted to the University of Mysore

for the award of the degree of Doctor of Philosophy in Economics

through the Institute for Social and Economic Change, Bangalore.

1984

Th.1. 1s to ,,:.rUty t.bat this 1a the

&,ev1aed vera.1on o&.: tnt:) tbe.1L-i ent.iUed.pruouct.J.on

conu1~1ona 1n the R.1ae ~ouay. C e Stuui8S of

Te.J.1 N.wu .am All ... bf tU.NaceOO4U i 411.1 who

worked on thJa aubJvc~ 1a ~ laa~1tut. toe

1)oc1.1 ana :coaoaic Gh"~ ....... loz-e ira.

A~uat 1977 -.0 May 1~80. All the c.;hdn\i~. .u'J~at4ld

by t.be _.a .... l:. have been .... waaer .~ vu1~cance. I h4d 4IJ..0 guJ.Ufld .uw .u~rv.t...Q the ~r~..,arClUon

&aO wr.1t.1ng ot \be t.tlva.1. 1a .1t~ ,,~1.1" tona.

I alao deCJ.are that. t.h18 th~.1a 1. the r ul~

vnollr or 1D loJ.rt. Mea aua.lt.t..-d toe any otl'wr

....... Due .ctuXN1"' __ 'ta h.vlt .... -.de

*.~&' anJt.h1~ M .... n borroWljQ trUil

I

II

III

y

VII

VIII

Introduction, A TheoreU.cal beckdE'O.,

Agricultu~dl Sl-t ... 10 A ..... A HJ.at.oric.u O\&U ....

Ayr1Qul tlLt.l SY.~ 1n T.uJ. ... '-"1' A H1~torical ~utl1ne

P.t~ern. ot InY ~n~ aDd CCQVP~

.....

1

30

1nt. .. n.1"1 J.D Taa1,l .... aDuAa... lOa

"'IM~ and ito. Intluenc. on CZ'O.i-'9iaag Inten.ity aDd Inve$~Q&

FUll .::iia ... .nO 1t. 1lltJ.l..1c::ctUone tOE"

11'

Invw.~Dt .na ~o~p~ In~n.lt.y lJ4

Ullaert.t&1nty. CX'oaJP.1~ .l.a" .. na.1t.y and Iav .......

""&IIX!iHE!lT!

1ftl1a reviaed tM.U na. berwi1t..cS Wl.ldol\.lJ tJ:'UIa tJl~

_.Int ot Uw .. .-hwc

1bJ.. U\-a.1. owe. IIUah to th"- .. YiUAD~" of ~rot. Q. P.

Millbra. HJ.a .~jJOCt on bOtJa ...... 10 Uk.1 OUlwr IMtot.era wu

.-on,*, tht: J. .... t. a.1Agl. t.-atot. wh.1..:n h ... .,..a in u.. ~vl.tion ot thh theai.. In such ci.r'gw.at..uk:e;:a to ~c ....

~,"at.1.t.uoe .1. ~rh ..,. rwces ry .... t tw.ccilJ .ul:t.1c:1ent..

Prot.M.V.Nadkun1 ~nt tbrou'" .nul ... gcuU

~n.t4k1~1~ ~ .... .1t. ot .1.1. ~ 811m iu.enl.li. lilUte. once

aga.i.D. on_ (';dn onlr _~ rea. ~.Ut.\Mie 40 ... .,. 1neW-.-.&4t.CI 1\

.. y be.

To ~ruta. ~.S.Venk.t.u_ ..... ClOY V.M.kClO. ur.P.M.

lCulk-rrU _0 ~\ID EU"Ance. all at "boll coftUJJNt"d thtc~

cU.ti(.;\ll:tS.1ulUl . MU o~c cSC.o_J.c: nel. 1 ~c .... __ ~.t.J.t\lde.

8~c:i4l1 t.iaanka uU Q\a8 CoO Jo~1Ib W4l.tJ:'iOl lIIbo ~_coWilr

h4il1,*cS in .--art1culiJ:' 11 dJ.tt1c:w.t ... _ ot thtl t.he.1

8ot.h Che AOIId_J.c 4IIlU ~n.1..Udt.1v .. ~i of the

ln~t..1t.ute to~ soc1al &no Ecoaa.1c: Change vera conal.tent

ID ~ce 0: Del~.

Mr.aun11 lJecan Ray. 1.. .c.i1.1". Wlu.UU clC~ l"'.J. ~.1uevi ke~t al1vu tn16 ~.1a ~v~ o,1acua.1on. ano encouc4ve--nt.

~ w.11e J"\IQ. yCW~ .UQb ot t.ne .... v1s;.t.loa fac thJ.a work

with h~J. .ujJ~rt. on both tht:s ...... 'e aDa non-tIOedI je

~Gt.. ot t.b4t ua.a1a.

It. a.yite 01 all th.la be.l,y, IIJ.a~Ake. r....u.n,

ot CUUCIMI, .it .lti tb8 1101. 1: ~.J.Dllitl O~ the AUtJ1ur.

11.1

WT or ,.".wa AD&l~.1. 01 Vu lance in Ilic411 Y1.1da ..,.~ l_~

Rat.io of l~ J.o u1 t. ut" al !Abu," to P~o..,l. vlt1a SIJeGlt1ecl ClCcupet.1oa 1n M .... .l.1

11.a Pro~t.!oa o~ ~ UDdeC u1Lt_~e~ ~~. in ANd. - 1i71

11.4

11.1

11.6

Pro~rU_ of ACe. WICJaI' Ric" to 'fot4ll cro~~ ~u. 1D A .... - lv71

Pr~t.1oD of Tw. -.. t.Q T~ ~~.,_ .v .. 1a Aa_ - 1:1111

~~~t. of Tea by Indi. t.o V.rlo\UI CuunLC1~. 1jO.l-ol

11.7 Pro~~t1on ut Jute .ec .. c. in aaGb Si8e el ... .in Aa ... - 1911

11.8 '-ro,tJOCt..i.un of "'opw..at.1on dnocrkMr. in

.... ~ .

41

Agr1cul~uce in Aa... II

11.1J Pro.,ar;UuQ ot wnd _dK lJ1tter.at. v ... in All ... - 1911 59

11.11 cro~....s.~ lot.eD&1.U ... Aa Aa_ 1~i1-5I;l t.o 1~1o-71 60

11.12 .. t.. value. in t.he L.1..... Truda 1ft Ric. Proauct.~v1~1 in Aa.~ .1

III. 1. PerOlnt..~Q of Cooli. LAboUl- in ~-'ua_ ... C..t.;:8 10 Madr .. V&" ... 1u..r)Qj' - J.u11

I

J

III. 3 LADd UDdeC ~ i'OI:'a ot Ttln"". in T-.&.l

Ncadu - llJ81

lU. 3 "&'1DC.1~e1 AtcJ.c:l of ~t t&'Oll Itc&dr". P&'ua1dcancr 9a

Ill. 5 PrOroct1OD of Ar.. 1n D!tt~rent ~i~ .. el ..... - ~j.,l "

III. 6 Orowtb RAte in RiCfit ~1~lQ .i.u r....u. N.a& 1964-6S to 1970-71 ti

III." R.~ tiftQ vYliIJ:aJ.l Qrowtb of ~v ()utp\K

IV. 1

111 T~l "\1 1~4 t.o 196Jf.l1 100 PI'ClPOCt,1on ot To~al Areca Irl'i94t.ecI 1ft ~11 H~QU .ad A.... lt7~

IV. a Met..v.. lrX'i\ldt.6ld bJ ~.n.la t~ .... District.s at Taa1.l. :~~u - .L :J72-7l 112

IV. 3 pro~t,lo" of Are. UDdU ''''1nl)' Pub.1c anD ....... Dly prj. y.". sources of lZ"rJ.'tJA-tien in 'raai.l. Nadu - 1~71 114

IV. S Dist.rict-wi .. Inve~~Dt in Aa... 118

V. 1 Rel.t..1o~ aetwe.n Ten.nay. cro .I,lJ1ng Int.ena1~ aDd ~DV ""'t. .tel' T.-1J. du eng A.... 126

v. a pro~tJ.oa O .u.. "l~ UDdU J.n T_.11 l4~u .nQ iUi ... - ~"1 128

VI. 1 IDdax o! P._ S1& .1D T..ul Ii&aU end As... - 1~71 141

VI

VI.I

VI

Ral_.1~ .. tween Cro;'io.i1Dg In~.n.1~J" l ..... c..enc. AftQ zcu;. 3ue 1n T .. 11 Ncaw aDd A ....

ClJeif1c::1.nt.. of Corr'llut.1on b"t.ween P.na ai8e and cco~~1n~ InL_n.it.t in T.-11 ~ ana A .... - 1~71

&a~~.d Nuabwr ot ~1cu1t.urdl M4Cb1-1181"1 ~I" 100 bou.-holcSa by .1&8 c;:l.... 0& HouM-bolu o ... ~.tJ.on.l Hol~~.

bt.J.aated ..... 1' 0' ~1c\llt\I.L'.1 Macdlie ~~t ~ 100 AeotArea ot o .... r.t.a ~ ~ ~ .. o~.~ ~I" t."'4IG\.01" (100 Mot.dl" .. )

C08fl!cient. of Co~I".1.~1on be~ Fera ~1a. ana Pr1y.t~ l~r1Qgt1on.no Pro l 4ct.1oQ 0& Tut.4IIl AC". UDc.Mt&" Pc1vc.at.. ~'&'1 ... t1\.in

51" Cl ... w1a. c&"0,.,tI1ng Inc.8na1U tu&" .~l_~.a ~U1ct.a

VI.S

CHAPTIR I

Over the last t.wo deeade!:", at.t.81pts h... lIMn

.-de &0 altudy the PCObl_s ot Indlan dQrlc~ltuce

lvnorlnc;; the production tunct1on. Most Ot thelie

at.terr.pt however. do not od.,-a"s ceplaee t.he prOCUet.iOfl

functlon wit.h an oltecnative theoretical fr~~4~ock.

aa.. etud1es restrict th .... lv to Ju~t lookifig dt

.-pirie.l rela tionshlps bet.w .. n varlabl.s. There 'e,

thus. a atroOQ empir1cist. tr.tdltlon aeveloplog in Inc~n

a9rlcllltural .C!OftOIftlc:a. 'I'hill 8C!hool ilJnores ... Of the

C!auae-efteot relatlonahipe which .ut nece8~.r11y exist

for any anelY61a. r 01' 1Mt~nce study 01 trends 1n

a9rloultural ~aQe. w111 only be complete 1t we oen atote

what determine. t.he$e wdge rateS.

All thie ... not to 5"'\Ihen cc-rt .... 1rl reldt1on-

ahl~ are obecYed .-pJzlecally they 4Ire souCjfr.t to be

apl.lned. These exVlaMtlonu. howevel'. co not.

al ... },. fit lnto a which

oould be t4ken as it re*"la.,.ent for iolCoCuctlon fun~tion

eoor;calca. ene of t.he few dtteQ'i~ta which twve been

Mde to t~ise on the besi. or .an cSlten.4tive fl'dllleWQl:k

i~ t.hcat. ~ {,.K. :.AIIl. 1 ~ian r-.:v1v",:. CUaj8lN'1j J.

C~OCu&Jt. (,.\~ .. ~&CII1t. '-.;CO~. 'nULl ~I..&~~ evn-

Vato" with t.m.il.)' lcabo",,". In . .:.ntu ~~vt.ivn toik. .. w

4Ua;u tl~~t.b. I:iW4IJ b~ a1w. 410 ,-c~y ~~ uIl 1",~~

tr.L~o ~ ~AaJl~n o;..~t.~ --.v1r1~~ uo~vJu.vn~ nuu-

G~Q .1n lnuj,an ~'1~t..lt.".:s. !ow 1n:.;t.caD..~. ~~"'"~nw to

1. --------

A.K.Ben. NPecuwnt.s .and lJ\..Ctl.L .. w1Ul ~ _.U1UUt. ~\46'~ uu Lcabu",,"". ~Uw.uu .!..l. I "v+i4"-'~ .,:A.;J.

A.V. ~.nuv. 'Ib! PE~-x 01 UI! .... i:III4Ult. -4;;v9Ull!!l. eel. u. "nlDl'nc:c ..JO. UU',.1. It ( l!J.inuid: 1' ... 4( ! .loo).

w f I .. ... r :j ... :I I. t; IC r ~ ~ : .. ... It :r i ! l i I .. 0' e " ... i i ! ~ ... .. 1 ., =- i I It i- G' r. n ! c , i (; l f c It ! It ... a nfCl J; ,.. S t (1 8 ~ ,. 4t i " It tr. f :r 'C ~ I f I ., & , C 0 .., (t c:. ,.. (. :r :J :J CI) .. i ... !; f B ~ r l ., " ~ ir e ('I l tL r ... ... c ... ~ ~ g. ... t" tt ! t't .... E '< C ! 0 .... I! i Pi" u . i r. to p 'C f. l ~ i .... ... IC 1 ~ It f i ~ .... ., ... ~ It i ... .. M ~ I Ii( ~,. (; c I i .... .> " ~ CI ~ ~ fl. ... ... ... p. : '< ~ i ... i D too- ~ nl't" ... "- c " ... f r " , & Ol CII ''C ~ r c- It c-. ,. i $' i tt fit P ~ C G. ... C ... ~ ~ ~ I r. too ~ r r (' C " ... (: ~ ... 0 -c c C ~to .. ' t: ft = ., ~ ,. ~ ~ c - !i .... rl'" i ... ~ ~ 8 i c '< : r II( ... r'! P." ., 1 .: ~ g I ~ .... .. Ci ~ ,. ... ~ r' c; ... ., .. D i '< ,. ... &. r.t ,. ~. .... 0 c e. f ~ ~; ... ,. t' ... tal :J ... t :J t; ... tt t': r.. t0o- t' I ,. ft ~ .,. ~ I,. I ('. r

.... -

taw Q.1&~t),I;.noe lady not. iN Ia&l.all .1n the aJ.atl 0& ua. '-

t.u", .... U.. 10 suet. an evuotu.a.l1t.r t.bu IJuc1.1aUc ~

".111 bCt.luk o~n. Evun jn Cd". -a.re taw 14UCjle 1..u1kC. uo not. "t, .;r_.,unt .1ny,,; $t. .n~., at .11. it. 1,it. ,,~t..

tapa cuw.c ~ h.1~ :tio,la ~ Attot, ... 4I. l:a .... .1r.1~4iU1~

.,~4~. Ch8 80 c.a,u,'

I

IlUt1y~ 'a4t noc. OOIIillcate. 1bI 1_ vc: 'a ~t b~ Ju.-t. ~t. ot. ~ 1oc.tl ~ 6~\JCt:.Y.L~ ~.t..H~X th.n a , w.t:J.~

uktit ~lec. on ~ l~ Q4t ~.le. 1'hW;.. uwu .. n ~t.h t.hQ

'Ulla Uti l~WC. t.,.uU 4'XUUUCUun 1e 1J.k 1~ to be baft an etttlct. on ~uUUlCt.J..V.1t.)f. In gtAw; \IIO.oe. U.

81_ 01 Uae t .. J.a JWt. " cnOl.dCt.cr.1at.1c OL