Commercialisation of Indian Agriculture

In the latter half of the nineteenth century, another significant trend was the emergence of the commercialisation of agriculture. So far, agriculture had been a way of life rather than a business enterprise. Now agriculture began to be influenced by commercial considerations. Certain specialised crops began to be grown not for consumption in the village but for sale in the national and even international markets. Commercial crops like cotton, jute, groundnut, oilseeds,

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The servants of the Company forced the natives to buy dear and sell cheap... Enormous fortunes were thus rapidly accumulated at Calcutta, while thirty millions of human beings were reduced to the extremity of wretchedness. They had never [had to live] under tyranny like this...

—Macaulay

sugarcane, tobacco, etc., were more remunerative than foodgrains. Again, the cultivation of crops like condiments, spices, fruits and vegetables could cater to a wider market. Perhaps, the commercialisation trend reached the highest level of development in the plantation sector, i.e., in tea, coffee, rubber, indigo, etc., which was mostly owned by Europeans and the produce was for sale in a wider market. The new market trend of commercialisation and specialisation was encouraged by many factors—spread of money economy, replacement of custom and tradition by competition and contract, emergence of a unified national market, growth of internal trade, improvement in communications through rail and roads and boost to international trade given by entry of British finance capital,

etc.

For the Indian peasant, commercialisation seemed a forced process. There was hardly any surplus for him to invest in commercial crops, given the subsistence level at which he lived, while commercialisation linked Indian agriculture with international market trends and their fluctuations. For instance, the cotton of the 1860s pushed up prices but this mostly benefited the intermediaries, and when the slump in prices came in 1866, it hit the cultivators the most, bringing in its turn heavy indebtedness, famine and agrarian riots in the Deccan in the 1870s. Thus, the cultivator hardly emerged better from the new commercialisation trend.