UPSC Mains 2015 GS Paper 3 Q3: model answer
In view of the declining average size of land holdings in India, which has made agriculture non–viable for a majority of farmers, should contract farming and land leasing be promoted in agriculture? Critically evaluate the pros and cons.
What the question wants
Weigh the pros and cons of promoting contract farming and land leasing given small, non-viable holdings.
How to structure it
Context, pros, cons, verdict.
- Shrinking holdings
- Contract farming: pros and cons
- Leasing: pros and cons
- Safeguards
- Verdict
How to think it through
Holdings keep splitting; many are too small to be viable. Contract farming gives assured price and technology but risks buyer power. Leasing lets land go to those who can farm it and lets owners take non-farm jobs, but tenancy laws push it underground. Verdict: promote both with safeguards, as in the Model Acts of 2016 and 2018.
Model answer
The average Indian holding has shrunk from 2.3 ha in 1970–71 to 1.08 ha in 2015–16, and 86% of holdings are small or marginal. On such plots a family cannot earn a living from farming alone, so the question is how to farm better without taking land away.
Contract farming
Pros
- Assured price and market, so price risk moves to the buyer.
- Technology, seed and credit from the firm; PepsiCo's potato growers in Punjab are the stock example.
- Linkage to processing and exports.
Cons
- Unequal bargaining: a large firm against a small farmer.
- Rejection on quality grounds when market prices fall.
- Monoculture and heavy chemical use.
- Weak enforcement: few farmers can afford to sue a company.
Land leasing
Pros
- Land goes to those willing to farm it; owners can take non-farm jobs without fear of losing land.
- Tenants become eligible for credit, insurance and relief.
- Larger operational holdings bring economies of scale.
Cons
- Fear of losing ownership keeps leases oral.
- Short leases discourage long-term investment in soil.
- Rents can rise beyond what the tenant earns in a bad year.
Safeguards
NITI Aayog's Model Land Leasing Act, 2016 and the Model Contract Farming Act, 2018: written agreements, quick dispute settlement, land never mortgaged to the buyer.
Yes, both should be promoted, but as contracts between equals; FPOs give the small farmer that equality.
Draw: A two-by-two table: contract farming and leasing against pros and cons.
Keywords, cases and data to drop in
average holding 1.08 ha, Model Land Leasing Act 2016, Model Contract Farming Act 2018, FPOs, Andhra Pradesh Licensed Cultivators Act, PepsiCo potato case, operational holding.
Where most answers lose marks
- Being only for or only against. 'Critically evaluate the pros and cons' wants both sides and a reasoned verdict.
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Question text as printed in the official UPSC Civil Services (Main) question paper. The model answer is original Battle IAS work; use it to learn structure, not to memorise.
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