[Land Ceiling] Meaning, Reasons, Pro and Anti Arguments

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  1. Prologue
  2. What is Land Ceiling?
  3. Why Ceiling on Land holdings?
  4. Land Ceiling in India
  5. Land Ceilings: Benefits/Advantages/Positive Points
    1. With political Will
    2. Production increased
    3. Employment increased
    4. Naxal reduced
    5. Social Justice
    6. Growth of New political parties
  6. Land Ceiling: Pro and Anti arguments
  7. Mock Questions

Prologue

So far we’ve seen

  1. Three land tenure system of the British: Their features, implications.
How the British had difficulty learning the land Revenue system of Desi Nawabs. So, they came up with Permanent settlement, Ryotwari and Mahalwari systems.
  1. Peasant struggles for land reforms in British Raj: causes and consequences.
But the British tenure systems caused much pain and anguish among Indian peasants and led to numerous revolts.
  1. Land reforms, Before independence: by Congress governments in Provinces, their benefits and limitations.
After the Provincial elections of 1937, Congress ministries took measures to protect tenant farmers. But by and large shied away from zamindari abolition.
  1. Land reforms, After independence: Abolition of Zamindari, Reasons, Impact, Obstacles, Limitations.
After freedom, State Governments enacted Zamindari Abolition Acts. As a result erstwhile (superior) tenants became virtual owners of their land. =>This is First tool of Land reform.

Now comes the new problem:

  1. After abolition of Zamindari, the (superior) tenant farmers became virtual owners of the land. They owned tens and hundreds of acres of land. While other (inferior tenants/sharecroppers/landless laborers) owned nothing.
  2. Many Zamindars themselves kept lot of land in pretext of ‘personal cultivation’.

Therefore, State governments enacted land ceiling acts. E.g.an individual farmer cannot own land beyond say 10 acres. Thus, if a farmer owned 12 acres, government would take away 12-10=2 acres of surplus land from him, and “distribute” it to some landless laborers. This is Second tool of Land reform.

before going further let’s again recap the players in a tenancy system

What is Ceiling on Land Holdings?

  • It means fixing maximum size of land holding that an individual/family can own.
  • Land over and above the ceiling limit, called surplus land.
  • if the individual/family owns more land than the ceiling limit, the surplus land is taken away (with or without paying compensation to original owner)
  • This surplus land is
    1. distributed among small farmers, tenants, landless labourers or
    2. handed over to village panchayat or
    3. Given to cooperative farming societies.

Why Ceiling on Land holdings?

  1. Because DPSP Art.38 seeks to minimize the inequalities of income, status, facilities and opportunities. Land ceiling minimize inequality in the land ownership and thus reduces inequality of income.
  2. Because DPSP Art.39 wants to ensure that the operation of economic system does not result in the concentration of wealth. In a village, land=wealth, hence land ceiling is necessary to prevent concentration of wealth in the hands of few.
  3. Because DPSP Art.39 wants to give right to adequate means of livelihood for all citizens. Land ceiling (and subsequent land redistribution) provides self-employment opportunities to landless agricultural laborers.
  4. If there is no land ceiling, rich farmers will buy all the land of entire village and tehsil. But since they cannot cultivate all the land by themselves- they’ll ‘lease’ it to small farmers (tenants). Small farmer (tenant) doesn’t have any ‘motivation’ to work harder because he doesn’t own the land and he has to give 30-50-70% of the produce to that rich farmer, as “rent”= exploitation.
  5. So, After abolishing Zamindari, IF State Governments had not implemented Land ceiling, then rich farmers/superior tenants would have become the new de-facto/virtual Zamindars of Modern India.

Although, economists who believe in free market / capitalism, donot like land ceiling. We’ll see their anti-land ceiling arguments at the end of this article. But for the moment, let’s continue with the assumption that land ceiling is beneficial.

Land Ceiling: Pro and Anti arguments

Like I said in the middle of the article- the economists believing in free market / capitalism- they don’t like land ceiling. So let’s hear their arguments

Anti-Land CeilingPro Land Ceiling
  • Land ceiling should be abolished. even corporate sector should be allowed to buy agri. land.
  • This will enable the enterprising farmer to enlarge his holding by buying or leasing lands of small farmers.
  • Although landlessness will increase but these small farmers could find employment in agri. and allied sector as a result of capitalist mode of production.
  • Agricultural income= exempted from income tax.
  • So, if land ceilings are removed, the rich people will rush to buy farm land.
  • Thus land prices will soar. A new ‘intermediary’ group of Agri.land mafia will emerge.
  • But millions of small and marginal farmers will be pushed off their land.
  • Hence, the time is not yet ripe to bring forth such drastic reforms (of removing land ceilings).
  • Capitalist mode of agriculture=>more surplus income=> invested back into the agriculture=economic growth.
  • if corporate sector is allowed to enter in agriculture=> Agri. exports will increase=>more foreign exchange incoming=>Current Account deficit gone, rupee will strengthen.
  • Capitalist mode of agriculture uses more machines, less laborers=>unemployment increased.
  • Yes, Economic growth will be achieved but at the cost of unemployment and subsequent fall in human development.
  • small farms are not productive because they hinder mechanised farming
  • Small farmers have limited capital to invest in improving agro. Production.
  • large farms tend to prefer monoculture (single crop), because they can be easily managed with heavy machinery. = more susceptible to pest attacks, not good from soil fertility point of view.
  • Small farmers usually have mixed crops (intercropping), they combine and rotate crops and livestock, with manure => soil fertility improves.
  • Land ceiling and distribution => poverty and disguised unemployment continues.
  • Some people need to be shifted from agricultural sector to manufacturing/service sector. There is no need to give land to each and every landless person.
  • Villagers should be kept self-employed, even if on small and marginal farms.
  • This fits with Gandhian ideas of village republics.

Land Ceilings: Benefits/Advantages/Positive Points

With political Will

States with political will in favour of land ceiling=showed great progress. Example

  1. Jammu and Kashmir, Land ceiling laws fully implemented and by the middle of 1955 about 230,000 acres of surplus land had been handed over to tenants and landless labourers, that too without having to pay any compensation.
  2. West Bengal had less than 3% of total cultivate land in India. Yet more than 25% of the total surplus land that was distributed throughout India, belonged to WB.

Production increased

  1. Earlier large tracts of wasteland belonging to big zamindars/farmers remain uncultivated. Now this given to landless laborers= increases area under cultivation=food security.
  2. More Production: Equal distribution of land will encourage intensive cultivation resulting in increased agricultural production.
  3. Some Farm management studies conducted in India testified that small farms yielded more production per hectare. It is so because family members themselves cultivate small farms.
  4. Even one hectare of land is also an economic holding these days on account of improvement in agricultural technique. Hence, small size of holding due to ceiling will not have any adverse effect on agricultural production.
  5. Atleast some of the Land owners shifted to direct ‘efficient’ farming in order to get ‘exemption’ from land ceiling.

Employment increased

  1. Landless laborer= gets employment only during sowing and harvesting season but now he given land ownership = he is 24/7 self-employed farmer.
  2. Even if he did not get land, still other farmers got land=> more demand for agri.labourers= wage bargaining power increased.
  3. In other words, land ceiling increased employment opportunities.

Naxal reduced

  1. With reduction in inequality among the villagers, possibility of class struggle will be minimised.
  2. They will live with perfect peace and harmony and not join Maoists/Naxals movements any longer. (atleast in theory)

Social Justice

  1. In a rural economy, whoever controls land, controls the power.
  2. Land ceiling Reduced this power inequality among villagers.
  3. Promoted spirit of cooperation among villagers. Will help develop cooperative farming later on (atleast in theory).

Growth of New political parties

  • 1959: N.G. Ranga, C. Rajagopalachari and Minoon Masani setup the Swatantra party.
  • Because they were against land ceiling, compulsory cooperativization, nationalization of private industries etc. policies of Congress government.
1967Charan Singh formed BKD
1974BKD+ Swatantra Party + other parties merged=>BLD
1977BLD was major component of Janta Government under the great Morarji Desai who defeated Indira Gandhi.

Thus, in a way land ceiling helped destroying Congress monopoly / One party rule in Indian politics.
In the next articles, we’ll the two phases of Land Ceiling laws in India.

Mock Questions

  1. Land ceiling is more of an impediment than a catalyst for economic growth. Comment
  2. Evaluate the significance of Land ceiling as a measure of land reforms.
  3. The positive impacts of Land ceiling did not trickle down below the middle rung of peasantry. Comment.
  4. Define Land ceiling. Why was it necessary to enact land ceiling acts in post-independent India?
[Land Reform] is a long topic, I’ve split it into several parts. Therefore, to get comprehensive list of all articles, visit Mrunal.org/Polity.

Mrunal recommends

  1. (free) NCERT, NIOS, TN-Books
  2. Environment by ShankarIAS
  3. Indian Polity M.Laxmikanth (Hindi | English)
  4. Art & Culture by Nitin Singhania (Hindi | English)
  5. Spectrum: Modern History (Hindi | English)
  6. Bipin Chandra: Post Independence
  7. Fast-track to Arithmetic Rajesh Verma
  8. MK Pandey’s Analytical Reasoning
  9. Disha’s Topicwise Paperset (Hindi | English)
  10. School Atlas
  11. Mains: Language papers
  1. (free) NCERT, NIOS, TN-Books 4 History,Geo,Sci
  2. Indian Polity M.Laxmikanth (Hindi | English)
  3. Spectrum: Modern History (Hindi | English)
  4. Maths: Quantam CAT Sarvesh Kumar
  5. Objective General English SP Bakshi
  6. Word Power made Easy -Norman Lowe
  7. Topic wise Solved Paperset by Disha


So far 29 Comments posted

  1. Rush

    :::::::::::::::::::::::::::::::)))) Nice bro

    1. PREVENTIVE

      In India it is only the farmer who has a restriction on the size of land that he can hold a builder can have as much land that he wants, an industrialist can have as much as he wants but not a farmer. I have heard that Infosysis having 800 acres of campus, reliance is having 1600 acres of mango farm in jamnagar but there is a ceiling on land that a farmer can hold. he can not practice economies of scale. why does Infosysis need so much land it can be operated from a huge building like Petronas tower and if reliance is being allowed such a large orchard why not a farmer.
      if socialist fundas are to be applied so that every one should have land then give ESOPS to every worker in the industry (if every tenant has a right to land then worker should have ownership in the industry)
      well if enterprise is being promoted every where then why not in agriculture if tperson doning any other profession is not being told not to scale up his operations then why farmers are being restricted from scaling up the operations.

      1. Sachin Sinnarkar

        i want to know under which section a company can purchase hundreds or thousand acres land…reply me the on my mail

  2. J&K

    superb!!!!!!! Kamal ke chij ho aap….Lakh Lakh Dhanyavadd.

  3. raghu bv

    mast……….. sir ji, thank u

  4. sikandar

    sir it would be better to concentrate on some other topics for mains 2013(esp. current) than to go into so much details on a single topic.thanks

  5. Kartavya

    CSM Admit cards out…(not yet on upsc.gov.in)
    step 1: Go to http://upscadmitcard.nic.in
    step 2: click on “INDIAN ECONOMIC/STATISTICAL SERVICE EXAMINATION” admit card
    step 3:in sddress bar you get “http://upscadmitcard.nic.in/IESDefault.aspx” change it to “http://upscadmitcard.nic.in/CSMDefault.aspx” by editing IESDefault to CSMDefault

    Note: if you directly copy paste this link it wont work…dont know why

  6. tarunendu singh

    thank you very much sir

  7. Manish

    Great post. Thanks for doing such a great work and share it.

    તમે પણ પહેલા IAS આપેલી છે?

  8. Gunasekaran M

    Keep it up.

  9. deepak

    gr88 sirji….

  10. vinod

    Sir Your article very easy to understand I am a regular visitor of your site for a year. Now I am going to request one thing plz consider this, I ve great difficulties in Geography in few chpters –

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    Geo11_12_World Climate and Climate Change
    class6 Geo earth and solar system
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    WATER (OCEANS)
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    Just for GS pre purpose only . It is a very humble request to provide a easy articles so that we can understand who don’t have Optional subject Geography

  11. prashant

    your article is very easy to understand,thanks sir

  12. Jerin

    Hi sir,

    what is bitcoin ? Explain in your terms sir.

  13. shruthi sirimalla

    sir,thanks alot for your material on history.please let me know the old editions of ncert history books

  14. J A

    very lucid way of writing…thanxxa lot..

  15. subhashbinani

    Dear Sir
    Pl provide information on the following points:-

    1. circumstances/reasons under -which law- land purchase by golder forest was declares surplus and taken over by State Govt. of Punjab, UK etc.

  16. subhashbinani

    Dear Sir
    Pl provide information on the following points:-

    1. circumstances/reasons under -which law- land purchase by golden forest was declared surplus and taken over by State Govt. of Punjab, UK etc. 2. Whether land purchase by Mr. Robert Vadera in any state exceed ceiling limit.

  17. subhashbinani

    What is present maximum ceiling limit of land in UP and whether these rules are still applicable in Uttrakhand.

  18. Rajiv

    Below given qts was asked in police sub inspector preliminary exam 2014 conducted by Maharashtra PSC :-
    Ceiling on Land Holdings Act was applied in two stages.

    (1) Upto 1961 and after 1962 (2) Upto 1971 and after 1972
    (3) Upto 1972 and after 1972 (4) Upto 1982 and after 1982

    After reading your article….. my answer option 3…

  19. srinivas

    I want to know how much time limitation period freedom to sell away my ceiling land & what is G.O no. In Andhra Pradesh.

  20. stinivas

    about srno17

  21. Sumit

    There is no limit on any cooperative society owning land. Progressive farmers can make society to practise economy of scale. Also, a rich farmer can sell 10 acres of poor land and buy more expensive farm.
    This act has restricted the Indian tendency of hoarding and that’s why it pinches us so much.

  22. Sachin Sinnarkar

    how much land an Agro Company can purchase and hold…what is the section

  23. V.anuradha

    Does a person who gave his land to ceiling has any right to sell or acquire that land again

  24. V.anuradha

    Does a person has any hold on the surplus land.can he sell or transfer or claim the surplus land.pl mention the section in favour of my query

  25. V.anuradha

    Does a person has any hold on the surplus land taken over under ceiling.can he sell or transfer or claim the surplus land .pl mention the section in favour of my query

  26. K. LAXMINARAYANA

    Sir. It is said by my Dad that since our ancestors were craftmen by profession, they lost their whole land of some acres because of this land reform act. Then full family suffered a lot by losing everything n living in rental cottages. The story still continuinig but somehow we could manage to survive ourselves. But d stuggle for food n butter itself is running Sir, is there any chance to regain our ancestors property back ?

  27. Majid Khan

    Dear Sir,
    Your articles on different topics as well as on different issues are very lucrative for we people esp.for those whom are preparing for various competative exams.So ,thanks for such a priceless effort .

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