Development of Capitalism in Agriculture—II
FROM about 1960 onwards, as the effective failure of the land reforms became clear, there was a swing in official policy towards a technocratic solution of the agricultural problem, exemplified initially in the Intensive Agricultural Development Programme. The main idea was the provision of new inputs—mainly fertilisers, pesticides, better seeds and know-how, in irrigated areas. New investment in the land, use of better inputs and some mechanisation, had already started at an earlier date as the stimulus of improving terms of trade became operative. This is clear from the estimated increase by 39 percent between 1951-52 and 1960-61, starting from a very low or non-existent base, of the purchases of intermediate goods by agriculture from ivon-agriculture : notably fertilisers, pesticides, electricity, diesel oil and machinery.49 The investment was largely on account of the bigger cultivators, as was pointed out by SC Gupta on the basis of the data then available : he already discerned in this a trend towards capitalist development.50 It is ^certainly logical that those with investible funds and access to credit—the rich peasants and dominant landholders—who also market a substantial part of their output, should be those who undertake productive investment as the profitability of agricultural production rises.