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Agrarian
Economies
of the Two
Punjabs
Iqbal
Mustafa and
Farrukh M.
Khan |
Before
the Partition of
the subcontinent,
the province of
Punjab was the breadbasket
of the Indian subcontinent.
After the Partition,
the divided parts
of Punjab Pakistani
and Indian are still
performing the same
functions with many
differences and
some similarities.
The major difference
is in production
efficiencies where
Indian Punjab leads.
For example, it
produces about the
same amount of wheat
from half the acreage
of Punjab in Pakistan.
In rice, the differences
are even more dramatic:
Indian Punjab produces
five times more
with three times
the yield per hectare.
Although direct
comparison between
the two Punjabs
is not truly valid,
given the difference
in size geographical
area of Indian Punjab
is only 25 per cent
of Pakistani Punjab
and it has more
uniformity of climate,
better water resources
and less uncultivable
wastelands the higher
production efficiency
is because of many
factors attributable
to human effort
from which Pakistani
Punjab can learn
many lessons.
Provincial
Profiles
An outline
of the land and
water resources
of two Punjabs is
given in Table-1.
Table
1
| No. |
Parameters |
Indian
Punjab |
Pakistani
Punjab |
| 1. |
Geographical
area (million
hectare) |
5.036 |
20.630 |
| 2. |
Cultivated
area (million
hectare) |
4.224 |
15.960 |
| 3. |
Cropping
intensity (%) |
185 |
145 |
| 4. |
Total
No. of farms
(million) |
1.093 |
3.864 |
| 5. |
Land
holding (%) |
|
|
| |
Upto
2 hectare |
36 |
56 |
| |
From
2 to 5 hectare |
29 |
29 |
| |
From
5 to 10 hectare |
28 |
10 |
| |
10
& above |
7 |
5 |
| 6. |
Average
size of holding
(hectare) |
3.61 |
2.91 |
| 7. |
Irrigated
area million
hectare (%) |
|
|
| |
Canal |
1.148
(28.45%) |
3.700
(56.40%) |
| |
Tubewell |
2.880
(71.38%) |
2.740
(41.77%) |
| |
Others |
0.007
(0.17%) |
0.160
(2.44%) |
| |
Total |
4.035
(100 %) |
6.560
(100%) |
| Source:
Department of
Agriculture
Punjab (2002-03)
and Agriculture
Census, Federal
Bureau of Statistics,
Pakistan (2003-04) |
Both
provinces lie in
the temperate zone
within the monsoon
belt. Annual rainfall
in Pakistani Punjab
varies from 150
mm in the south
arid regions, 620
mm in central semi-arid
Punjab to 1150 mm
in northern sub-mountainous
regions. In Indian
Punjab the annual
rainfall is similar
to central and northern
Punjab in Pakistan
varying between
500 mm to 1000 mm.
The seasonal distribution
of rainfall is strongly
influenced by monsoons,
which start in June
and cause 70 per
cent of the rainfall
till September.
Winter rains occur
during December
to March and are
more wide-spread.
The quantity and
distribution of
rainfall is normally
insufficient for
crop requirements
in most areas.
In
both provinces there
are four distinct
climatic seasons:
- Winters
-- moderate widespread
rainfall –
from December
to March
- Summers
-- extremely hot
and dry –
from April to
June
- Summers
-- hot and humid,
scattered rainfall
– from July
to September.
- Autumn
-- cool and dry
– from October
and November.
Crops
are classified by
season: Summer crops,
grown from April
to November, are
called Kharif crops
while winter crops,
grown from October
to April, are known
as Rabi crops.
It
may be noted from
Table 1 that in
Indian Punjab, 95
per cent of cultivated
area is irrigated
while in Pakistani
Punjab only 41 per
cent of cropped
area is irrigated.
There are large
tracts of agricultural
lands that are rain
fed in Pakistan,
called barani areas.
This factor depresses
overall yield per
hectare in Punjab
for wheat. In addition
to this difference,
71 per cent of irrigation
in Indian Punjab
is from tube-wells
and canal irrigation
is 28 per cent.
In Pakistani Punjab,
41 per cent areas
are tube-well irrigated
and canal irrigated
areas are 56 per
cent. However, in
Pakistani Punjab
the total quantum
of irrigation water
from tube-wells
is higher as canal
irrigation is mostly
augmented by underground
water. There are
two reasons for
higher use of ground
water in Indian
Punjab. First is
the relative quality
of groundwater that
is better in India;
many areas in Pakistan
have subsoil water
that is unfit for
agriculture having
either high salinity
or high sodicity,
or both. Secondly,
the Indian government
has provided huge
subsidies on electricity
for tube-wells.
Until recently,
electricity was
provided free for
tube-wells but now
a flat rate of Rs.
60 per Horsepower
per month is levied,
which is nominal
compared to the
high electricity
tariffs in Pakistan.
Land
Distribution
A
major difference
in agricultural
economies of two
Punjabs is the land
distribution patterns.
The Indian Land
Reforms brought
about in 1960 by
the Nehru government
limited a family
holding up to 16
standard acres (6.5
hectares). A standard
acre is defined
as one that is irrigated,
has good subsoil
water and is not
affected by excessive
salts. For lands
that have some defects
or are poor in fertility
(excessively sandy)
the holding limit
is enhanced up to
35 acres (14 hectares).
In the land holding
figures for India,
therefore, the category
of 10 hectares and
above corresponds
to 14 hectares maximum.
The three land reforms
in Pakistan (1979,
1972 and 1977) reduced
individual holdings
to 8,000 Produce
Index Units (PIUs),
or 100 acres irrigated
and 200 acres unirrigated
land. This has allowed
some farmers to
own large tracts
of land under family
holdings. Therefore,
in the figures of
land distribution
for Pakistan 10
hectares and more
may correspond to
much larger holdings.
Following the 1960
Land Reforms, the
land ownership patterns
changed in Indian
Punjab. 'Since the
introduction of
the green revolution
technology, the
agrarian structure
of Punjab has witnessed
interesting changes.
The number of marginal
and small holdings
declined sharply,
while those in the
higher-size categories
showed a modest
increase. These
changes occurred
primarily due to
three reasons. First,
with the onset of
the green revolution
technology, crop
production activities
became economically
attractive, which
created an active
land-market for
leasing and selling
land. Secondly,
progress of agriculture
under the green
revolution technology
created additional
employment opportunities
in the non-farm
sector. These encouraged
many marginal farmers
either to sell their
land or lease it,
to earn higher incomes
from non-farming
jobs. Finally, the
new technology turned
out to be more attractive
to the large farmers,
mainly because the
mechanical inputs
associated with
it were indivisible,
and thus uneconomic
for use in smaller-size
farms.'
During the 1980s,
as farm profitability
decreased and non-farm
job opportunities
became limited,
the number of farms
increased. The average
holding has decreased
from 4.07 hectares
(in 1980-81) to
3.61 hectares. However,
the trend has been
arrested now in
spite of land division
by laws of inheritance.
The current distribution
of land holdings
is given in Table
2.
Table
2: Size of Farms
in Indian Punjab
Size
Hectares |
Number
farms |
percent |
Area
1000
Hectares |
Percent |
| Below
1 |
204 |
19% |
122 |
3% |
| 1-2 |
183 |
17% |
240 |
6% |
| 2-4 |
320 |
29% |
833 |
20% |
| 4-10 |
306 |
28% |
1754 |
42% |
| 10-14 |
80 |
7% |
1198 |
29% |
| Total |
1093 |
100% |
4147 |
100% |
Source:
Department
of Agriculture,
Punjab (India)
2003-04 |
In
Pakistan, the range
of land holdings
is far wider. With
higher limits on
land holdings on
one end, and increase
in subsistence farms
on the other due
to Islamic laws
of inheritance in
the absence of land
markets, land holdings
have been fragmented
at a faster pace
than in India. The
lower limit on land
holdings and fast-track
adoption of production-augmentation
technologies in
India has created
uniformity in size
of land holdings.
The distribution
of land holdings
in Punjab, Pakistan
is given in Table
3.
Table
3: Size of Farms
in Pakistani Punjab.
Size Hectares
|
Number
Farms |
Percent
of
Farms |
Area
Hectares |
Percent
of Area |
| Under
0.5 |
703638 |
18% |
201112 |
2% |
| 0.5
to under 1 |
617265 |
16% |
459408 |
4% |
| 1
to under 2 |
844219 |
22% |
1166753 |
10% |
| 2
to under 3 |
597863 |
15% |
1403901 |
12% |
| 3
to under 5 |
536361 |
14% |
2081497 |
19% |
| 5
to 10 |
368362 |
10% |
2422326 |
22% |
| 10
to 20 |
149018 |
4% |
1858563 |
17% |
| 20
to under 40 |
36696 |
1% |
909254 |
8% |
| 40
to under 60 |
5712 |
0% |
263095 |
2% |
| 60
and above |
4932 |
0% |
469257 |
4% |
| Total
|
3864070 |
100% |
11235161 |
100% |
| Source:
Federal Bureau
of Statistics,
Pakistan. Agriculture
Census 2000 |
If
farm sizes are arbitrarily
divided into small
(less than 2 hectare),
medium (up to 20
hectare) and large
(above 20 hectare)
the distribution
of lands shown in
Table 4 indicates
that in Pakistan
the distribution
curve is much wider.
Table
4: Comparative Distribution
Curve of Land Holdings.
| Farm
Size |
India |
Pakistan |
| Small |
9% |
16% |
| Medium |
91% |
69% |
| Large |
Nil |
15% |
| Computed
from Table 2
& 3 |
India
has focused its
institutional support
in terms of infrastructures,
technology, credit,
research and extension
and market mechanisms
for the medium sized
farms in a very
aggressive way.
In Pakistan the
proportion of small,
uneconomic farms
and larger farms
is much higher.
Larger land holdings
have a profound
influence on political
economies of rural
areas where large
farmers are able
to appropriate disproportionate
amount of resources
credit, subsidies,
extension services
etc.
Infrastructure
Rural
infrastructure plays
a critical role
in the development
of agriculture.
Roads, electricity
and communications
are key components
of infrastructure,
apart from social
sectors like health,
education and sanitation
etc. Indian Punjab
has higher density
of roads, electricity
and communications
network than its
Pakistani counter
part. Compared to
Pakistan's Punjab,
the Indian Punjab
has twice as much
density of rural
roads 0.47 kilometres
of roads per square
kilometre of area.
Pakistan has only
0.19 kilometres
per square kilometre.
In Indian Punjab
81 per cent of tube-wells
are powered by electricity
as compared to only
10 per cent in Pakistan's
Punjab. This may
have to do with
higher electricity
tariffs but more
so with distribution,
efficiency and reliability
of rural electricity
networks. Indian
Punjab is ahead
on other benchmarks
of infrastructure
development.
In
comparison, effective
land reforms are
considered a key
factor for development
of agriculture in
Indian Punjab by
many experts. It
is true that uniformity
of farm size has
helped in creating
commercial orientation
of agriculture,
especially with
institutional support
provided by the
government. It has
been easier for
research and extension
services to focus
on technology packages
for medium sized
farm operations.
However, while land
reforms laid the
foundations for
progress in a planned
economy, many other
government initiatives
and policies contributed
towards fast growth.
The aggregate impact
of the government's
support to agriculture
in Indian Punjab
has, therefore,
been very effective
because of the planned
synergy between
many factors, which
reflects in its
higher productivity.
Land
Utilisation, Production
and Yields
Table
5 provides a profile
of land utilisation
in the two Punjabs
as a comparison.
Table
5: Classification
of Area (000 ha.)
| |
Indian |
Pakistani |
| |
Punjab |
Punjab |
| Geographical
Area |
5036 |
20630 |
| Forests |
277 |
520 |
| Land not available
for Cultivation
|
454 |
3010 |
| Un-culturable
wasteland |
16 |
1800 |
| Fallow |
62 |
1560 |
| Net Area Sown |
4224 |
10750 |
| Area sown
more than once |
3602 |
5300 |
| Total Cropped
Area |
7826 |
16050 |
| Area under
cultivation
% |
85 |
52 |
| Cropping Intensity
% |
185 |
145 |
Source:
Department of
Agriculture
Punjab
(India) and
FBS, Census
2000, Pakistan
|
It
may be noted that
Indian Punjab has
one-fourth the geographical
area of Pakistani
Punjab but its total
cropped area is
about one-half.
This is due to higher
utilisation of lands
for agriculture
(85 per cent as
against 52 per cent)
and higher intensity
of cropping (185
per cent against
145 per cent). Combined
with higher per
hectare yields,
this translates
into much higher
production efficiencies.
Since both provinces
share similar climate,
soils and water
resources, the cropping
patterns are quite
similar out of historical
inertia; however,
the share of land
allocated to various
commodities varies
out of economic
choices. Table 6
shows the allocation
of cropped area
to various crops.
Table
6: Percent of land
allocated to crops
| |
Indian |
Pakistani |
| |
Punjab |
Punjab |
| Wheat |
41.1% |
41.0% |
| Paddy |
31.6% |
11.0% |
| Maize |
1.9% |
1.0% |
| Pulses |
1.3% |
7.0% |
| Total
oilseeds |
1.9% |
2.0% |
| Sugarcane |
1.3% |
3.0% |
| Cotton |
6.9% |
15.0% |
| Vegetables
including onions |
1.7% |
4.0% |
| Fruits |
0.8% |
1.0% |
| Fodders |
7.4% |
13.0% |
| Forests |
3.4% |
2.0% |
| Source:
Future of Agriculture
in Punjab (India),
CCRID, 2002,
and FBS, census
2000, Pakistan |
There
are similarities
in cropping patterns
to a large extent,
except that Indian
Punjab allocates
larger acreages
to rice while in
Pakistani Punjab
cotton and fodders
occupy larger shares
in land allocations.
The higher yields
and better quality
justify greater
emphasis on cotton,
which feeds Pakistan's
large and competitive
textile industry.
The higher yields
and guaranteed support
price make rice
an attractive option
for Indian farmers.
Livestock accounts
for a larger share
(over 50 per cent)
of agricultural
GDP in Pakistani
Punjab; therefore
more land is allocated
for fodders. However,
low yields of fodder
crops and low milk
production of animals
also contribute
to disproportionately
large allocations
of land to fodder
crops.
The key difference
between the two
provinces lies in
yields. In wheat
and rice yields
differences are
dramatic while in
other crops Indian
Punjab has significantly
higher yields. Cotton
is the only exception
to this. Table 7
provides production
and yield data for
main crops in the
two Punjabs.
Table
7: Production &
Yield of Main Crops
(2002-2003)
| |
Indian
Punjab |
Pakistani
Punjab |
| |
Production |
Yield |
Production |
Yield |
| Wheat |
14415 |
4190 |
15355 |
2518 |
| Rice |
14411 |
5513 |
2579 |
1706 |
| Maize |
459 |
2882 |
882 |
2105 |
| Pulses |
47 |
855 |
804 |
700 |
| Cotton |
1478* |
7664 |
7664* |
590 |
| Sugarcane |
|
59520 |
|
45100 |
| Sunflower |
32 |
1590 |
55 |
1471 |
| Oilseeds |
63 |
1075 |
146 |
969 |
| Production:
|
000
Tons |
| Yield
|
| |