Analysis of Changes in Extent and Composition of Land Tenancy in India: Exploration in Technology Adoption and Agricultural Profitability

Abstract

This article analyzes the evolving trends in tenancy contracts in India. Using official statistical data, the study observes a U-shaped pattern in the proportion of land leased and the share of cultivators engaged in tenancy over time. This declined until 1991–1992 and was followed by a considerable increase since 2002–2003. Notably, in the 1970s, semi-medium cultivators were the predominant tenant class. However, in the revival phase, landless and near-landless households emerged as the principal demanders for land under the tenancy. The article argues that in the 1970s, the green revolution and the changes in public policy related to agriculture caused an increase in productivity and profitability and the introduction of markets for many factors and output which were previously nontraded, all of which induced a decline in the extent of tenancy. In the subsequent phase, as the impact of new technology tapered out and state support declined, the rising cost of cultivation and reduced returns created disincentives for landowners to cultivate, giving rise to absenteeism and an employment and livelihood crisis and leading to the revival of tenancy and the emergence of labor-supplying households as the primary tenant group.