Panel abstract EASAS conference

Convenor: R S Deshpande, Institute for Social and Economic Change, ISEC, Bangalore, India
Co-convenor: Neelambar Hatti, Dept of Economic History, Lund University, Sweden

Panel Abstract: Institutions play a significant role in Asian agricultural development. In south Asian countries agricultural institutions have a long history, starting from the traditional form of shifting cultivation to modern capital intensive agriculture. This also poses certain questions on the factors that have compelled such changes and transformation. Institutions in agriculture could be analyzed in various ways. However, to organize them in a systematic framework these can be grouped in four basic forms namely institutions associated with inputs, production, exchange, and social system..
Composition of inputs in agriculture has undergone drastic changes over a period of time. During the early phases of settling cultivators and pre-modern agriculture seeds and manual labor were the only inputs beside some simplistic instruments for agricultural activities. Therefore, institutions in South Asia developed often to regulate labor and route the other inputs. However, with the advancement of agriculture besides labor, availability of land was also scarce. In such phases, institutions attempted to regulate both land and labor often through interlocking them. In recent years agricultural inputs have substantially increased from land labor to various forms of seeds (HYV and GM), fertilizer, pesticides, insecticides, various instruments like tractors etc.
Institutions associated with production had always two functions. First, to enhance the productivity of the system with the improvement in technology. Second, to reduce uncertainties associated with the production system. Improvement in technology is often is associated with the input structure. Various institutions emerged to regulate the input supply and organize the production system. Such institutions over the years however, have undergone changes: non-cultivators became the landowners (feudal) and tillers became the tenants. There are other forms of production institutions like production mortgage, contracting of fruit gardens and tribal agricultural institutions.
Exchange as an integral form of market institution has undergone changes in various forms. The economic exchange from a barter system in a need-based economy to economic exchange in monetary units is a substantial departure. In monetary exchanges too we identify various deformities associated with the system. Such distress related to exchange at a set rate by the traders, or interlocking of land market, labor market, and product market with the credit market are some well known facts in the political economy literature, which attributes the development of such markets to the colonial revenue policies. In the context of liberalisation in the World these forms have received added attention. Therefore, the existing as well as the emerging institutions need to be taken up for discussion and research;

Papers accepted for presentation in the panel:

Paper Giver 1: Deepak Shah, Faculty Member, Gokhale Institute of Politics & Economics, BMCC Road, Deccan Gymkhana, Pune –411004 (Maharashtra), India.

Paper 1 Title: Rural Credit Delivery System in Maharashtra: A Step Towards Rejuvenation

Paper Abstract: An investigation into rural credit delivery system in Maharashtra shows slower growth in institutional finances through commercial banks, credit cooperatives, RRBs and LDBs, particularly during the decade of 1991-2000, which is mainly due to adverse environment created by the financial sector reforms. Due to unfavourable policy framework, the entire rural credit delivery system encompassing rural branches of commercial banks, cooperative credit institutions and RRBs is reduced to a moribund state. High transaction costs and poor repayment performance are the twin root causes of the moribund state of rural credit delivery system. With a view to revive the agricultural credit delivery system, there is need to adopt innovative approaches like linking of Self-Help Groups (SHGs) and Non-Government Organizations (NGOs) with mainstream financial institutions. Such linkages are reported to have not only reduced transaction costs but also ensured better repayment performance. One of the recent studies conducted in Maharashtra has shown cent per cent recovery of loans through SHGs despite having excessively high rates of interest (24-36 per cent per annum) on their loan advances. One of the further disquieting features of RFIs in Maharashtra has been the high proportion of NPAs to total assets, particularly of RRBs and SCARDBs, which are estimated to hover around 36-48 per cent during the mid-to late nineties. One of the reasons for such high incidence of NPAs of RFIs has been the familiar practice of debt forgiveness, which eroded repayment and allowed defaulters to scot free with no deterrent reprimand. Political interference in issues of prudent fiscal management has got a lot to do with this unfortunate scenario. In order to rejuvenate rural credit delivery system, the twin problems facing the system, viz., high transaction costs and poor repayment performance, need to be tackled with more fiscal jurisprudence reserving exemplary punishment for willful defaults, especially by large farmers. In fact, insofar as the rural credit delivery system is concerned, the focus should be on strategies that are required for tackling issues such as sustainability and viability, operational efficiency, recovery performance, small farmer coverage and balanced sectoral development.

Paper Giver 2: R. Parthasarathy, Professor, Gujarat Institute of Development Research,
Gota, Ahmedabad, India

Paper 2 Title: New Institutions in Irrigation Sector: Their Trajectories and Impact on Rural Economy

Paper Abstract: Since the mid-1980s, governments worldwide have been engaged in Irrigation Management Transfer (IMT) in one form or other. Managerial and financial responsibilities for the public schemes are being handed over to newly organized Water User Associations (WUAs), with a view to improve water rights of farmers and improvising the use efficiency of the infrastructure. The goals were three-fold. First, IMT was expected to boost productivity by harnessing farmers’ local knowledge, entrepreneurial skills and their interest in ensuring adequate water services. Implicitly it was expected that though participatory irrigation management is, not a panacea for all water management issues, it could go a long way in ensuring efficient running of canals, optimum on-field water application and reuse or proper drainage of the excess water from irrigation systems and farmers fields. Second, the accompanying reform of mostly-inefficient yet costly state irrigation bureaucracies was supposed to lead to better water services and, lastly, to promote participation management which would then lead to users managing the systems. Overtime, however, the goals have become much less ambitious. Presently, IMT is considered successful if it saves government money, improves cost-effectiveness of operation and maintenance while improving, or at least not weakening the productivity of irrigated agriculture. The results of the documentation of the process of implementation and evaluation of PIM programmes indicate dwindling expectations. Productivity gains are hardly reported. Recent evaluations of past IMT programmes show a clear trade-off between past modes of IMT and poverty alleviation. Earlier, it was assumed that IMT is class neutral. However, the mode of IMT, as implemented till now, appears to work only in non-poor, high-performing, business-like agriculture In schemes in the middle- and low-income countries with a heterogeneous composition of farmers in the command areas, IMT could only succeed where farmers with the largest holdings became the “champions.” In some places, withdrawal of state support has led to partial or full collapse of the scheme, with negative consequences for productivity. The paper argues that IMT could have been successful if the process had been right, that is, if it had been more gradual, with more emphasis on institutions. This would have led to a better definition of water rights. These and other factors have also impacted on the extent of participation of users in the newly set up programme; some would argue that extent of participation has also impacted the expected results of the IMT programme.

Paper Abstract: Bhutan is in the process of accession to the WTO and also takes part in the SAFTA (South Asian Free Trade Agreement). Bhutan is one of the most mountainous countries in the world, which has big implications for its agriculture, both in terms of production as well as in terms of the marketing of its products. Generally spoken, productivity is relatively low compared to its neighbouring countries and that brings up the question whether its agriculture will be able to compete with the cheaper imports, which generally come along with trade liberalisation. However, further trade liberalisation is not likely to effect Bhutanese agriculture substantively, as its agricultural markets has been practically liberalised since 1949, when the country signed a free trade agreement with its big neighbour India. Bhutan started opening up to outside world from nineteen sixties, when it became a member of the UN and when the first roads were built. Since its agriculture started slowly developing from complete subsistence oriented, towards more market oriented, it did not face much protection, besides the country’s topography and small market, which adds considerable transport costs to everything imported. The fact that Bhutanese agriculture has its current low productivity level, is partly a consequence of the absence of adequate protection of its agricultural markets. Other factors are the unfavourable natural environment, its poor production and marketing infrastructure and the slow pace of modernisation by farmers. Bhutanese agriculture is not fully taking advantage of the market offered by its growing urban population. Despite the fact that Bhutanese consumers prefer domestically produced agricultural products, only a part of the consumers is willing to pay the price, which is relatively high compared to Indian import products. However, to generate more cash income, Bhutanese farmers have adopted cultivation of various cash crops, which are exported, mostly to India and Bangladesh. The most important cash crops are mandarins, apples and potatoes, for which production the country obviously has a comparative advantage. For a country with one of the highest percentages of rural population, it is extremely important to raise rural incomes. Agricultural development will stimulate general economic development in many ways. To ensure this the country should put more effort to strengthen its current agricultural export markets. It could profit even much more from its comparative advantage for these crops, if it would improve the marketing and production. Secondly it should stimulate the production and marketing of the domestically consumed products and force import substitution. Finally it should identify new potential export products, for export to neighbouring countries, as well as Western countries. These products should be high value niche products. The country has comparative advantages for these kinds of products, lying in its exceptional environmental circumstances and the relatively clean production (low use of agrochemicals). Niche products to be identified could lie in the range of medicinal plants, organically produced products, floricultural products, incense and mushrooms. To make a success out of these products, very professional efforts should be made, again both in terms of production and marketing.

Paper Giver 4: Steen Folke, Danish Institute for International Studies, Copenhagen, Denmark

Paper 4 Title: From Training and Visit Extension to Farm Women Groups: Impact – in terms of economic benefits and empowerment – of four Danida-supported training projects for farm women

Paper Abstract: Since around 1980 agricultural extension in India has been dominated by the Training and Visit approach initially propagated by the World Bank. The approach has been criticised for its rather top-down communication, individual focus on contact farmers and narrow and standardised extension messages. From the mid-1990s more broad-based, group-focused and participatory approaches to agricultural extension have gradually replaced the T&V system. This evolution is also reflected in the history of four Danida-supported training projects for farm women, three of which were initiated in the 1980s. The projects are Women and Youth Training and Extension Project, WYTEP, in Karnataka (1982-2005), Tamil Nadu Women in Agriculture, TANWA (1986-2003), Training and Extension for Women in Agriculture, TEWA, in Orissa (1987-2003) and Madhya Pradesh Women in Agriculture, MAPWA (1993-2005). These projects have been innovative in so far as they have for the first time on a major scale targeted women in their role as agricultural producers. Over the years more than 1 million farm women have received training and extension under the four projects, mostly based on the T&V approach, but in recent years with Farm Women Groups as the framework for both extension and income generating activities. The total cost for Danish tax payers has been around DKK 279 million. Based on extensive fieldwork in all four states (in 2002-03) by a team of researchers and research assistants (in the context of a Danida evaluation for which the author was team leader) the paper investigates the impact of the four projects both in terms of economic benefits (higher yields, savings on chemical fertilizers, income generating activities) and their contribution to the farm women’s empowerment (self confidence, role in decision making, collective strength). The analysis uses the empowerment framework developed by Naila Kabeer, who was a member of the team. The impact is analysed in relation to the institutions involved, particularly T&V versus the Farm Women Groups, and the village-based training employed by three of the projects versus training in district agricultural centres employed by the oldest and biggest project, WYTEP.

Paper Giver 5: R.V.Dadibhavi , Professor, Dept of Economics, Karnatak University, Dharwad, India.

Paper Abstract: It is well known that the growth of Indian agricultural sector has suffered a heavy toll in the post-economic reform period that began in the mid 1991.Several studies revealed that price and non-price factors such as technology, production-cum market infrastructure and conducive institutional structure, both formal and informal, are more potent besides being relatively more important in influencing agricultural development in India. In the new policy regime, the emphasis shifted to greater role of markets in economic development and the receding role of the state. A study visualized continued dominance of the state in irrigation and extension and infrastructure development, but he underlined the need for reforms in the public organizations for their financial viability and efficiency. However some researchers consider institutional reforms sine qua non for sustainable agricultural development and poverty alleviation. In particular, sustainable use of common pool resources and management of surface irrigation have received much greater attention and the need for institutional reforms ensuring stake holder’s participation and equitable distribution of benefits is reiterated time and again. In this paper, we use the available evidence and also present our micro level study evidences to draw lessons for the development of commons requiring collective actions. Open access to the commons is the main problem which is popularly known as the ‘tragedy of commons’. Commercialization of resources and conflicts arising due to increasing scarcity have further complicated the management problem. Besides these problems distorted policies, breakdown of traditional social institutions and lack of alternative institutions are responsible for the degradation of the commons. Similarly breakdown of village level social institutions led to degradation of common lands, irrigation tanks and village forests, etc. The objectives of the study are: To examine changing size of CPR;s in Karnataka; ii. to study status of common property land resources; iii. to examine the impact of CPR on the livestock economy.; iv. to study the contributions of CPR’s to rural households in Karnataka. The study is based on both Primary and Secondary level data. Primary level data are collected through sample household survey of 1021 poor and 347 non-poor households in 15 villages, spread in four regions of Karnataka state in India during June 1994 to July 1995. The main findings of the study are: i. CPR’s in land has declined over the last 30 years; ii. Animal husbandry is an inseparable complementary activity in Karnataka and this activity is directly dependent upon the availability of CPR’s; iii. Illegal encroachment is responsible for loss of CPR’s in villages.; CPR’s contribution to the rural household even today is significant to both poor and non-poor in regard to the fuel and fodder requirement, income and employment. The emerging policy implications of the study are: i. There is need to discontinue the policy of government distribution of grazing land and waste land to the poor for cultivation and to the private parties. ii. The effective management of CPR’s cannot be thought of without the emergence of strong local institutions.; iii. Community management of commons must be encouraged.; iii. The study shows that it is inescapable for government, village community and NGO’s to play a crucial role in overcoming the problems of ‘the tragedy of commons’.

Paper Giver 6: Jatinder Bir Singh, Reader in Economics, SGGS College of Commerce, University of Delhi, India

Paper 6 Title: Futures Markets and Price Stabilization - Evidence from Indian Hessian Market

Paper Abstract: Futures markets play important role in determining the inventory decisions in the cash market. The futures market is the nerve centre for collection and dissemination of information about the agent’s expectations of future cash market. It performs the price insurance and price discovery functions. The latter function enables the traders to make rational choices about inventory management. This results in reduction in volatility of cash prices. This paper investigates the hessian cash (spot) price variability before and after (over 1988-1997 period) the introduction of futures trading to ascertain whether the futures market help in reducing the intra-seasonal and/or inter-seasonal price fluctuations. This paper is seeking to show how the influence of hessian futures market has led to reduced cash market volatility in the hessian market.To know about the pattern of volatility over the season, Figlewisky (1981) measure of volatility has been adopted. To take account of inter-seasonal price variability, this volatility measure has been normalized to make it akin to coefficient of variation. The relationship between hessian price variability and jute prices has been investigated using regression of logarithm of volatility on logarithm of prices and monthly dummy variables. To take account of possible price variation differences between the two sub-periods, multiplicative dummy variable model was applied.The evidence in this paper suggests that cash market volatility was less pronounced after 1992 when hessian futures market was established. The major role for futures market appears to be in reducing inter-seasonal volatility as opposed to intra-seasonal volatility. The results suggest that futures market may be indeed viable policy alternative for policy-makers to reduce uncertainty in agricultural markets. The liberalization of state support policy which was designed to stabilize farmers’ income will increase risk and uncertainty to market participants. The futures markets through its information role may vastly improve the storage across the seasons, thereby stabilizing cash prices.

Paper Giver 7: Balz Strasser, Research Assistant, Department of Geography, University of Zurich, Switzerland

Paper Abstract: In recent years, the Indian natural rubber sector has been affected by trends towards trade liberalisation, a reduced role of the state, and organisational reforms. Rubber small-holders in Kerala have been affected by these processes in different ways. It is hypothesised that small producers, especially the ones located in agro-ecologically marginal rubber areas, are nowadays coping these changes with attempts to move from rubber-dominated to more diversified livelihood strategies. Using empirical case study material, a detailed analysis of recent changes of livelihood strategies of different categories of small-holders will be presented. A special focus will be given to the analysis of the wider institutional setting within which small-holders operate, e.g. markets, trade unions, extension services, etc., trying to assess its supportive or hindering role in the diversification process.

Paper Giver 8: Kumbamu Ashok, Research Scholar, Department of Sociology, National University of Singapore

Paper 8 Title: The “Gene Revolution” in the Era of Globalization: Changing Agra

Paper Abstract: In the early 1960s, the “Green Revolution” package comprising the “miracle seeds”, controlled irrigation, fertilizers, pesticides, and correlated farm management skills has been introduced into the post-colonial societies with the premise of averting the Malthusian spectre of famine. But despite the profound impact of the “Green Revolution” on food grain production, (FAO, 2001 estimates) over 800 million people are still suffering from permanent or intermittent hunger and about 2 billion people are chronically undernourished. More than 150 million children under the age of 5 years are underweight and about 6 million children in the Third World die each year due to malnourishment. Since the problem of feeding the world’s rapidly growing population has not been solved through the “Green Revolution” technological interventions, now, the “war on hunger” is being waged by using the cutting-edge technologies in molecular and cell biology, which are often discussed under the general rubric of “biotechnology” or the “Gene Revolution”. The experience of the “Green Revolution” in India shows that besides the technological advancements and applications; institutional support such as credit, extension services, land reforms etc., played a paramount role in increasing agricultural production at the national level. The past experiences in Indian agriculture also show that the potentials of the technological application could not be realized due to lack of proper instructional support. Indeed, agrarian institutions have very important role to play in the era of the “Gene Revolution” since (a) the new technologies are knowledge/information-intensive and the cost of imperfect information in terms of yield or production loss is very high; (b) the new seeds increase pressure on cash-needs of the peasantry; and (c) inadequate vigilant regulatory mechanism to control selling of spurious seeds may devastate entire crops, which may result in negative externalities and collective actions.The proponents of biotechnology often claim that the “Gene Revolution” is a prolongation of the “Green Revolution” or the “Doubly Green Revolution” or the “Evergreen Revolution”, and the new technology is “neutral” and the benefits could be more widespread to all regions. They further argue that to realize the potentiality of the new agricultural technologies of the “Gene Revolution”, efficient agrarian institutions would be required. Contrary to the enthusiastic claims of the proponents, the opponents of the “Gene Revolution”, by considering the “terminator” and “gene-pesticide” character of the new seeds, argue that biotechnology has profound implications for millions of poor farmers and environment in the Third World, whether or not there is proper institutional support. However, the institutional division between “basic research” (public research) and “applied research” (private research) , overwhelming involvement of private sector in research, development and marketing of the new seeds, extension of patents to living organisms (genes in particular) under the new trade regime, commoditization of seeds, rapid adoption of genetically modified crops by farmers across the globe and possible adverse consequences of biotechnology have become the central issues in the raging global debate about biotechnology. However, biotechnology is an innovative technology, which offers many possibilities for development and application. The consequences - opportunities and risks - involved are remain uncertain. The central problem is therefore the uncertainty of knowledge. This uncertainty also applies to the question of whether biotechnology conforms to the overall concept of sustainable development. Therefore understanding the potential benefits and risks of biotechnology going beyond the narrow economic cost/benefit analysis and gauging its relevance to rural development in India is very essential. However, the contemporary issues pertaining to agricultural biotechnology can be adequately understood only when viewed in a socio-historical perspective. Thus the paper attempts to analyze the political and economic history of development of biotechnology and the importance of agrarian institutions in the era of globalization and biotechnology. In so doing, the paper is structured as follows: (i) conceptual and theoretical aspects of the development of the new agricultural technologies in general, and biotechnology in particular; (ii) transition from the “Green Revolution” to the “Gene Revolution” and its implication for agrarian change in India; (iii) the implications of institutional reforms in the milieu of liberalization and the “Gene Revolution” for the Indian peasantry, research and development and domestic seed industry; and (iv) finally, it addresses the need of the new agrarian institutions in the ear of capitalist globalization and biotechnology.

Paper Giver 9: A. Narayanamoorthy, Reader, Gokhale Institute of Politics and Economics, Pune, India, and R S Deshpande, Institute for Social and Economic Change, ISEC, Bangalore, India

Paper 9 Title: Irrigation Institutions in India: With Special Reference to Maharashtra State

Paper Abstract: Role of institutions (Water Users’ Associations) in water management is not a new phenomenon as far as India is concerned. In the name of kudimaramat, the users (farmers) were involved in tank repairs, management works, distilling of tanks, removal of weeds, distribution of water and collecting revenue even during the 17th and 18th century much before the British rule. Unfortunately, due to various reasons, the users’ participation in water management has declined drastically over the years. Now, partly because of pressure from the donor agencies such as the World Bank, the users’ participation in irrigation water management has become a widespread strategy in all countries in Asia including India. In India, more emphasis was given to users’ participation in water management only after the announcement of the National Water Policy: 1987 & 2002, wherein gradual involvement of farmers in system management was advocated. Studies carried out in different countries including India have clearly established that users-managed systems outperformed the systems that are managed by the irrigation agencies. While the irrigated area managed by the Water Users’ Associations (WUAs) is very limited as of today in India, a significant progress has been made, at the policy level, in bringing more irrigation systems under WUAs in the recent years. In Maharashtra, significant progress has taken place since 1992 as the irrigation department has been encouraging the farmers to form WUAs by explaining its advantages. As a result of the continuous effort by the irrigation department and non-governmental organisations, about 822 WUAs have been functioning at different levels in Maharashtra as of September 2001. While there are no two opinions about the importance of WUAs in increasing the performance of irrigation system, there is no guarantee that WUAs would improve the performance of irrigation system, as the interference of government agencies is still considerable. It is also reported that the most part the outlet and canal committees are there only in name; they are not consulted on substantive issues; nor are department officers required to follow their advice. There is also considerable reluctance, if not opposition, from the operational staff of irrigation departments to involving users in management; and even users themselves tend to be apathetic to the idea. However, not many studies have analysed how the new (WUAs) irrigation institutions established with the support of government agencies are functioning at the field and whether WUAs are able to fulfill the objectives for which the same is established. It is in this context, an attempt will be made in this study to bring out the overall functioning of different irrigation institutions (lift irrigation user’s association, canal irrigation users’ association, etc) using both primary and secondary level information.

Paper Giver 10: Amalendu Jyotishi, Assistant Professor, Gujarat Institute of Development Research, Ahmedabad, India, R S Deshpande, Institute for Social and Economic Change, ISEC, Bangalore, India, and Neelambar Hatti, Dept of Economic History, Lund University, Sweden

Paper Abstract: The two-fold role of the Indian State as a development catalyst and as an interventionist has long been debated on the count of ease in policy formulation. Institutions in various forms have been constantly shaping the policy from the outside State ambit. On this backdrop the present paper addresses to the analysis of the role of the State as reflected from the nexus between the State policies, interest groups and institutions to reach the consequent steps towards alleviation of poverty. It is pointed out that the role of state in India has changed substantially during the last five decades in perceiving poverty and this is largely due to the institutional interface. The results show positive success during seventies till mid eighties and stagnation thereafter. The paper incorporates discussion on the differential policy impact in a federal context, on different provinces of the Indian federation and the differential changes in poverty across groups, specifically the rural population and the weaker sections of the society. The paper highlights the role of institutions in the poverty alleviation strategy

Paper Giver 11: Vinod Vyasulu, Centre for Budget and Policy Research, Basavanagudi, Bangalore, India

Paper 11 Title: Agriculture and 73rd Constitutional Amendment: Institutional Challenges

Paper Abstract:The Department of Agriculture in a state government has been responsible for the implementation of agricultural policy. Agriculture is a state subject in India, and although the union government does a great deal by way of support to agricultural research, it is the state that is responsible for the state of agriculture. In many states, the department has risen to the challenge of improving the lot of a largely poor farming community. At the government level is a minister, assisted by a Secretary, who belongs to the IAS. This ministry is responsible to the legislature for all policy matters. For implementation, there is a Department of Agriculture headed by a Director of Agriculture, who is a technical person. In some states, a Commissioner for Agriculture, from the IAS, has been brough in above the Director, but the technical nature of the department has been retained. The Department has several divisions in the head office, and at the district, is headed by a Joint Dorector for Agriculture, who reports both to his department, and the deputy commissioner or collector of the district. The collector is the head of all departments at the district level. The JDA is helped by Assistant directors at the block level and lower level staff at the village levels where the interface with the farmers is highest. The 73rd amendment has brought in elected governments at the district, block and village levels. The department has now to function differently, but this change has been slow in coming. This paper discusses the issues and challenges involved in this process.

Paper Giver 12: D.V. Gopalappa , Asst. Professor at the Institute for Social and Economic Change, Nagarabhavi, Bangalore, India

Paper 12 Title: Institutions And Rural Development – A Case Of Sericulture Quality Clubs

Paper Abstract:The development of the rural poor is an essential issue for the country’s equitable and sustainable economic development. The experience so far, has been that the economic development of the weaker sections was not possible through the government intervention alone. Other alternatives are: actively involving people to form co-operatives and the involvement of Non-Government Organisations, banks, educational institutions, panchayat raj institutions, etc. In this paper, an effort has been made to analyse the role of farmers cooperative society in the form of a group called Sericulture Quality Clubs (SQCs) in the rural development in general and the sericulture activity in particular. Towards this we have taken two villages where the SQCs are formed and implemented certain development activities in both the villages. The empirical evidence reveals that farmers who possess basic education in the villages have better coordination than farmers who are illiterates and little above this standard. Kuruburu village has been successful in its attempt to form the society and make it as a successful programme. In approximately two years the society with the able guidance of the president, secretary and the members could make business of Rs 2.3 lakhs just with the initial capital of Rs10,000 supported by the sericulture department. Out of this they could make a profit of Rs 26,000 just by selling the disinfectants. More than these, they could invite the scientists and arrange the lectures, which helped them to take up the improved varieties of mulberry and silkworm races. Whereas, in Nayakarahalli the president and the members are not educated. The president has studied only till the 7th standard and all the other members are not educated and not that active. They keep quiet and do not question the president about the initial capital and also what happens in society. This has led to no improvement and most of the villagers do not know whether there is a society of this kind in their own village. The president does not like to interact with the people easily. Therefore, this has resulted in the stagnation of yield level in Nayakarahalli. However, it can be suggested that societies of this kind have to be encouraged for specific programmes. But one should select the better group with better education so that it is easy to convince them to take up modern implements and practices in agriculture, sericulture and other allied activities.

Paper Giver 13: Golam Rasul and Gopal B. Thapa, School of Environment, Resources and Development, Asian Institute of Technology, Thailand

Paper 13 Title: Implications of Changing National Policies on Land Use in Chittagong Hill Tracts of Bangladesh

Paper Abstract: Land use in the Chittagong Hill Tracts (CHT) of Bangladesh had undergone changes over past several centuries. The landscape, which was mostly covered with forest with interspersed shifting cultivation plots until the beginning of the colonial period, had gradually changed into a landscape with a blend of land uses. Overall, the forest area was gradually declining, while the area under shifting cultivation and other types of sedentary agriculture had expanded. The process of the change was multi-directional. National forestry, land use, land taxation and population migration polices, and development activities, such as construction of a hydroelectric dam and roads, played an important role in this process. Shifting cultivation had inflicted little damage on the forest until the beginning of the colonial period. The pace of deforestation accelerated with the nationalization of forest that abolished tribal people’s customary use and management rights to forest, and allowed large scale commercial logging both legally and illegally. The pace was further intensified by the policy, encouraging population migration to CHT and construction of a reservoir on Karnafuli River. Efforts were made to replace shifting cultivation with more productive type of sedentary agriculture. However, much change could not take place in the absence of secure land rights, supportive trade policies, and required support services and facilities, including infrastructure. Locationally suitable land use had evolved in areas where transportation facilities were available and farmers were granted land title with necessary extension services and credit facility. These findings bear important policy implications for promotion of environmentally and economically sound land use in CHT.

Paper Giver 14: Koichi Fujita, Associate Professor, Center for Southeast Asian Studies, Kyoto University, Japan

Paper 14 Title: Transformation of Groundwater Market in Bengal: Implications to Efficiency and Income Distribution

Paper Abstract: The rapid agricultural growth since the early 1980s experienced in Bengal brought about a drastic rural change and reduction of poverty in the region. The engine of growth was the diffusion of private shallow tubewells (STWs). The development of groundwater market enabled non-STW owner farmers to adopt irrigated farming. Discussions on groundwater market have been widely done in Bengal and other South Asian regions. Since groundwater market is characterized as a highly segmented market, where usually a few rich farmers sell water to a large number of poorer farmers, its implication to income distribution has been paid serious attentions. Efficiency issues have also been addressed, where land productivity differential between owners and non-owner farmers has been one of the most important issues. However, so far, empirical studies have been, by and large, concentrated in examining the market structure at one particular point of time. Dynamic transformation of it has been relatively neglected. The purpose of this paper is to examine such an aspect of groundwater market, based on primary data collected in several selected villages in Bengal, where the author conducted intensive surveys during the last decade. The major conclusions are as follows.
First, in the study areas of Bengal, private STWs diffused rapidly during the 1980s. Groundwater irrigation by tubewells covered almost all the farmland within a decade or so, by the beginning of the 1990s. At this initial stage, tubewell owners, most of them were large farmers, rented land from non-owner farmers on a seasonal basis (land rent was paid in-kind after harvest), or sold water to them under the crop-sharing arrangement with water. Under these arrangements, the effective rate of water charge was very high, and tubewell owners enjoyed a high rate of return. The share to water in irrigated rice (boro) production reached as high as 30%, and accordingly the share to land decreased to 20%, from 30-50% in the case of traditional rainy season rice (aman). It is difficult to deny the argument of emergence of ‘waterlords’ instead of traditional landlords.
Second, however, what happened in the 1990s was the continuous investment in STWs even though groundwater market had already ‘saturated’. The number of STWs reached nearly or more than double during the several years. This resulted in a drastic decrease of command area of tubewells (from 10-12 acres to 6-7 acres) and a substantial decline of real water price. As a result, the rate of return declined sharply. The share to water in irrigated rice production also decreased sharply to 11-13% from about 30% just several years ago. The ‘waterlords’, once appeared in the 1980s, quickly left rural Bengal by the end of the 90s.
Third, in 1999 or 2000 there observed a sharp contrast between Bangladesh and West Bengal in the factor share to land and labor in rice production. Namely, the share to land reached 50-58% in Bangladesh whereas it remained only 27-40% in West Bengal. The corresponding share to labor was 20-30% in Bangladesh compared to 38-42% in West Bengal. In other words, the decreased share of water in irrigated rice production was almost totally absorbed by land in Bangladesh, while labor share remained at a very low level.
Fourth, many STWs fell into financial deficit in both regions in the year 1999 or 2000. However, it may not be able to say that individual farmers who additionally invested in STWs behaved ‘irrationally’, if various benefits from the ownership of tubewells, including non-monetary advantages, are taken into account. It is important to note here that there is a significant differential in land productivity between tubewell owners and non-owner farmers. In addition, in the case of West Bengal, groundwater market was not in equilibrium, where conversion from ordinary STWs to submergible STWs (SMs) was going on.
Fifth, the fact that individual farmers behave ‘rationally’ does not necessarily mean that the groundwater market is efficiently working. Rather, it can be evaluated as inefficient, due to the morale hazard behavior of both water sellers and buyers. Water sellers are not conscious enough in delivering water to buyers in time and in proper volume, while water buyers have a strong tendency to refuse payment of water charge. Such a morale hazard behavior in both parties strengthens each other, forming a vicious circle. Such a structure became the main cause of the above-mentioned differential in land productivity, which induced socially excess investment in STWs.
Sixth, policy for promoting competition among tubewells through increased number of them in a confined area is effective to reduce water price and thus to improve rural income distribution, but at the same time, such a policy can easily bring about socially excess investment in tubewells, leading to a wasteful resource use, especially in the context of Bengal rural society.
Lastly, the introduction of SMs in West Bengal is not a fundamental solution to the problem of declining water table. Market is not enough to solve the problem and needs to be supplemented by some kind of community level coordination and government regulation. The same is the above- mentioned problem of inefficient resource use arising from excess investment in tubewells. The transfer of DTWs from the state government to farmer’s group now under progress in West Bengal also needs some non-market institutional mechanism. It is true that because of the individual farmers’ initiative groundwater irrigation (especially STWs) achieved a widespread and rapid progress and contributed to the agricultural development in Bengal since the 1980s. However, it is high time to re-evaluate the role of the government and the community in minor irrigation sector.

Paper Giver 15: M N Panini, Professor, Jawaharlal Nehru University, New Delhi, India

Paper 15 Title: A Study of Social Implications of the Introduction of Genetically Modified (GMO) Crops in Indian Agriculture

Paper Abstract: Green revolution has dramatically turned around India from being a country of endemic food shortages to a country self-sufficient in food grains. The controversy about the introduction of the GMOs has been keeping the debate alive. While there are reports of farmers in Gujarat already cultivating Bt cotton extensively, formal approvals for the commercial sale of genetically modified seeds of Bt cotton and of potatoes have not been granted as yet. The Bt cotton crop has been developed by one of world’s major agribusiness firms Monsanto in collaboration with the Indian firm Mahyco whereas genetically modified potato has been developed by an Indian scientist. There is a need to study the implications of this controversy on the State functioning, public corporations, professionals working in the area of bio-technology, NGOs and the farmers themselves In India the problem has become more acute because the Indian farmers recklessly used fertilisers and pesticides by falsely correlating productivity with the application of fertilisers and pesticides. The proponents of biotechnology, who include some leading biotechnologists within the country and abroad and the trans-national agribusiness corporations that have heavily invested in research on GMOs, hold that the new genetically modified crops reduce both biotic and a-biotic stresses in agriculture. They claim that the GMOs can reduce the consumption of pesticides, increase yields, improve the ability of plants to resist droughts and enhance the nutritional quality of food. This paper seeks to assess the social and cultural implications of the controversy over GMOs in India. The politics that has emerged around the introduction of GMOs in India only serves to highlight the changed social significance of science and technology. A dramatic example of this is the introduction of ‘green revolution’ technology in the 1960s just when India was experiencing a major food shortage. The new agricultural technology neatly skirted the problem of major institutional reforms that many thinkers felt were necessary in order for India to become a self-sufficient in food. The new technology has had a profound impact on the Indian rural society and the rural landscape. That food security will be ensured.
Biotechnologists have produced transgenic crops that reduce dependence on pesticides, enhance nutritive qualities of food, increase yield and resist droughts. They claim that transgenic crops increase productivity and reduce ecological stress; farmers will not have to use pesticides and fertilizers thereby increasing productivity. This development is not even a decade old found in the genes of species of d in plants from issue of introduction of genetically modified organisms (GMOs) in Indian agriculture has now become a major controversy. The controversy has been stirred by several NGOs who have vehemently opposed the introduction of GMOs. Biotechnology promises self sufficiency for developing countries despite prospective population increases and minimises ecological stresses. Vigorous opposition to biotechnology—food developed by biotechnology is referred to as Frankenstein food. The international patent regime, the big biotechnology corporations, government regulations on the transgenic varieties, NGOs and the WTO agreements intermesh to determine whether the potentials of biotechnology are realised. This study attempts to examine the working of the regulatory institutions in Bt cotton. It also looks into the methodology of extension of the new technology and to study how it affects the attitude of the farmers towards the new technology. Apart from these how have the campaigns against Bt cotton affected the farmers? Do they resist the technology? Who are the farmers who have agreed to cultivate Bt cotton on their fields? Are there any farmers who are opposing Bt cotton? What are their grounds for opposing Bt cotton?, are some of the questions of interest addressed in this study.

Paper Giver 16: Dr. A. Rajagopal, Research Fellow, National Institute of Rural Development (NIRD), Hyderabad, India

Paper 16 Title: Dynamics of Water Institutions and Agriculture under a South Indian Canal Irrigation System

Paper Abstract: The paper is about the water insecurity situation in an irrigation system, factors contributing to the scarcity condition, the role of institutions in reducing water insecurity and its impact of agriculture and livelihoods of poor. The paper also analyses the dynamics of these institutions over a period and their impact on agriculture and livelihoods. These observations are based on a study of a canal irrigation system in South India in 1980s and a re survey of it after a period of 15 years. The study rests on the premise that irrigation institutions and their role in management are significantly conditioned by the agricultural and socio-economic environment especially caste and class of the region. Maintenance of irrigation structures and regulation of water supply to tanks under large-scale irrigation system is fully the responsibility of the State. However the State is not able to undertake these functions efficiently due to its own constraints. Hence local level irrigation organisations undertake maintenance like cleaning and de silting of channels, which bring water to their tanks. Though the State is not able to regulate water to the tanks properly, local institutions themselves undertake such tasks. Collective action both in the appropriation of water from the main canal and allocation of water at the local / tank level is quite significant. These organizations called panchayat have well defined structures, rules and functionaries. The members of the panchayat are generally farmers with relatively larger land holdings and community influence in the village. They are assisted by professional watermen and watchmen, appointed during every irrigation season and paid through the farmers' contribution. Thus collective action as regards functions of water management is quite significant and brought substantial benefits to farmers including small in terms of access to water and productivity gains from irrigation.
Had there not been such institutional arrangements there would have been substantial losses to farmers (especially poor) because of overall reduction in the quantum of water in the system due to the inter-state river water dispute and the increased problems due to encroachment and alkalinity of soils.Though there has been a significant change in the land control, the villagers continue to show interest in collective action as majority of their livelihood depends upon agriculture for which irrigation is the basis. Not only irrigation but also the very life of villagers depends upon cooperation among themselves for the fear of subordination by the dominant castes. The continued presence of irrigation institutions and their role in water management and other village affairs point to the fact that pessimism expressed on collective action by theorists of `tragedy of commons' like Hardin, and Gordon is exaggerated.The resurvey shows that irrigation systems do not exist as blue prints but continue to undergo changes in which institutions are important. Though there are many changes in irrigation and agriculture, caste as an institution continues to play an important role in irrigation and other village affairs.

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Panel No. 8

Panel Title: Institutions and Agricultural Development

Papers accepted for presentation in the panel: