Peasant Society Land Tenure System and Peasant Market

Peasant Society, Land Tenure System and Peasant Market Relations Part-1 Course name: Peasant Society: Soc-405 Dr. Kazi Abdur Rouf Visiting Faculty Department of Sociology University of Chittagong

Peasant Society, Land Tenure System and Peasant Market Relations • • • Topics to be Covered Peasant society land tenure system and peasant market relations Land tax and agriculture production Land tenure history Land Tax collectors Land tax reform acts during British Period Peasant Acts Social division of Ryots and Zaminders Pakistan regime land tenure system (Land owning ceiling) Land tenure system during Bangladesh Analyze Bangladesh Land Tenure System

Peasant Society, Land Tenure System and Peasant Market Relations Topics to be Covered continue-2 • • • Subsistence Economy Labor wage exploitation and generates capital Mahajons and Peasant Loans Types of peasant loans and sources of loans NGOs and micro finance institutions (MFIs) loan services Peasants Market Relations External capital to peasant economy and Contract growers Capital accumulation in the market production system Intermediate organization and capitalist production Wholesale Merchants and Brokers role in agricultural market Forced Commercialization

Peasant society land tenure system and peasant market relations • Land is very important in peasant society because agricultural activities based on land. • Peasant society is a part of greater national state • Land tenure system becomes complex because peasant society is now part of urban economy and state structure • Although peasant involved in land cultivation of agriculture, they are not owners of all means of production • A big portion of agricultural products are owned by outsiders • For example, land tax is paying by land cultivators to Zamindars or to state.

Land tax and agriculture production The dynamics of agricultural products depend on land tenure system A great portion of products of peasants go to Zamindars as land tax It effects total agricultural production In Bangladesh, it is observed production is less in sharecroppers’ land the owner of the land solely looks at collecting only land tax • Therefore, they do not attentive to increase production because they do not get inspired for more crop production. • •

Land tenure history • • History of society can be known if we can know the land tenure system and Know dynamics of peasants’ involvement in agricultural productions This historical process of changing peasant society is wide and complex Knowing peasants history, we can understand pre-British, during British and after British land tenure system.

Land Tax collectors • Are land tax collectors the owners of lands? • Debates: Land tax collectors were the owners of lands before colonialism • Others say, ” State was the owner of lands, Zamindar was responsible for collecting land tax. ” • Moghul and Nababi period is the example of it. • The revenue belongs to the king, but the land to the Zamindar • Different opponents are “The proprietor or the lords of the soil is the Emperor and • Zamindars and Chaudhuries are written as officers and depend, conditionality or carrying on of the improvement of cultivation, discharging the revenue of the government together with the duties of protecting the highways… other duties. ”

Land Tax collectors continue-2 • Another statement is “The supreme owner of the land, the state, gave a Sanad to whom it appointed to the office of Zamindar • The Zamindar did not have the right to alienate one bigha of revenue paying land without the sanction of the government, nor to sell it though by custom he could inherit …” • Even Zamindar seized the land from the peasant • Above him there were many layers of elites who shares peasants’ tax • Even sometimes Zamindar and related other elites imposed and collect share agriculture inputs from peasants.

Land tax reform acts during British Period • The peasants land ownership rights little changed during British regime although land tenure system changed • The main changed occurred by the Permanent Settlement Lands Acts imposed by British in 1793 • However, Zamindar collected land tax without changing revenue of previous period • Even Zamindar can collect land ax from peasants or Ryat as they like • Peasants were called Ryats in the new British Land Tenure system • Peasants have no land ownership rights although they cultivated lands in exchange of paying and tax to Zamindars.

Land tax reform acts during British Period continue-2 • The Haftam Act of 1799 was made by the pressure of Zaminders that affects the Ryots • The situations of peasants were more miserable when British introduced leasing system acts in 1919 • This new system allowed creating another new Intermediary Class and this new intermediary class shared peasants’ land tax. • The peasants were more exploited by these Zaminards and Ryots (Intermediaries).

Peasant Acts • Many peasant Acts made for supporting the peasants • For example, the peasant Acts 1859 or Peasant Acts 1885 • Although these acts were favorable to peasants; however, peasant’s had no land rights rather Ryots can evict peasants any time • The Land Act of 1859 was the first tenancy legislation to improve the relation between landlords and their tenants • Its aim was to strengthen the position of the Ryots by placing restriction of the landlords’ power of rent enhancement and eviction.

Social division of Ryots and Zaminders • Mainly two types of Ryots: Occupancy Ryot, non-occupancy Ryot etc. • Ryots under Ryots • Occupancy Rryots: here rights were clear, peasants’ cannot be evicted any time • However, Zamoder can evicted in non-occupancy Ryots anytime • Ryots behave unethically to petty Ryots • For example in Rangpur, Jotjar was a direct peasant of Zamindar and many Jotdars exploited peasants • Jotdar himself cultivated lands as well he leased his lands, gave land for sharecrop to other peasants, collect crops share from peasants.

Social division of Ryots and Zaminders • Chokanidar was a system where one Jotdar cultivate lands under another Jotdars • This subdivision of Jotdars created powerless and asset less labor slaves in society • After independence of Pakistan, many Hindus migrated to India • Many people say’ “It was an attempt to fill up the gap other say it is a populist attempt by the Muslim League. ” • Another researcher says, “The land reform attempt did not change the fate of peasants. ” • State compensates Zamindars to recover their loss.

Pakistan regime land tenure system (Land owning ceiling) • Land ownership highest ceiling was 100 bigha per family and 10 bigha per family members of the family • It was prohibited to sublet or give land to others for cultivation • But this land tenure system accepted to cultivate land by sharecroppers and cultivate lands by labors • Resulted absentee land lords created living in cities, but cultivate lands by share cropping or cultivate by labors system • In 1958, Martial Law increases land ownership 350 bigha per family • Many people comments it encourages for capitalist agriculture.

Land tenure system during Bangladesh After Bangladesh, adornment land tenure system was two times During Majib period, the highest land ceiling was 100 bigha Ershad time 50 bigha Last land tenure adornment committed Khas land will distributed to landless people. Sharecropper dead should be at least 5 years • The share cropping system should be one share for land owner, one portion to share copper and one share to one who provides inputs. • •

Analyze Bangladesh Land Tenure System • Small numbers of land plots and small numbers of farmers increase in Bangladesh • At the same time big farmers’ numbers and big farming numbers also increases • The average land size of the farm decreased, it is because of land fragmentation • Share cropping numbers are increasing • 38% share croppers tenancy found in 1977 survey • Among them 6% were pure share cropper tenants and • 32% owners cum tenant.

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Peasant Society, Land Tenure System and Peasant Market Relations Part-2 Course name: Peasant Society: Soc-405 Dr. Kazi Abdur Rouf Visiting Faculty Department of Sociology University of Chittagong

Subsistence Economy • Subsistence economy is a principle of the peasant society • The character of peasant society is peasants cultivate their own lands, use family labors and collect and sell his other inputs • Another important feature is peasants exchange inputs among them • There are many classes whose socio-economic situations are different among peasant society • Poor peasant and rich farmers both exist in addition subsistence farmers • Rich famers can make surplus production

Subsistence economy continue-2 • The surplus production is his source of extra capital • Rich famers cultivate Jute which is a cash crop • Poor and marginal peasants are unable to make surplus after consuming their family consumptions • Also they are unable to collect their agriculture production inputs for their next crop production • It is common that peasants are suffering from lack of capital for crop cultivations • If poverty increases, lack of capital increase among poor peasants • There is a relation between savings and capital • If savings are available, peasants can produce extra in addition to subsistence production • Extra production can contribute to extra capital accumulation.

Labor wage exploitation and generates capital • Labor wage relation expands more if farmers have more capital • Capital is the driving force of more production because farmer can use improved technology and mechanical cultivation • Extra labors need for big farmers for cultivate • Hence extra capital is needed in contemporary agriculture • Extra surplus production generates extra capital and encourages class division in the peasant society • In this capitalist process, some people became rich and others sufferings from capital for production • This process generates differentiation among rich and marginal peasants in the villages.

Mahajons and Peasant Loans • A great portion of peasants are dependent of loans and become fall into the trap of credit nets • Mohajoni loan is an informal credit institution in the village where loan receivers no need to provide collateral for the loan • Mohajon put pressure to peasants to repay loans even in adverse natural conditions • Peasants become credit borrowers starting from British period • Peasants economic situation become miserable • Because of Zamindars pressure for huge tax imposition, collection and exploitation.

Mahajons and Peasant Loans continue-2 • Zamindars were involved in collecting land tax instead to think for peasants’ welfare and develop agriculture production • They did not initiated development programs for the benefit of peasants • Rather Zamindars continuously increase land tax • Poor peasant loss their capital and become marginalized day by day • Peasant went to the Mohajon who lend money with high interest • This has resulted an exploitative Mahajon, money lenders developed in the villages • They are another exploitative class is money lender who has created in the villages those rich were unjust people in the villages.

Types of peasant loans and sources of loans • There are three categories can be categorized informal loans 1. Cash loans 2. Receive cash loans but return loans in kinds 3. Provide in kinds loans but return loans in either cash or kinds • One survey shows that 80% peasants’ loans received from informal resources. • Maloni and Ahamed pointed out 10 sources of loans among peasant society • From relative and friends 20%, • Mohajon 20%, from Jewelers 1%, • From businessmen 13% and • From employers 7%. • Informal loans networks have widespread.

Types of peasant loans and sources of loans continue-2 • Formal loan providers also increased in villages. Takavi loan introduced by British for peasants’ facing disasters • During Pakistan period, peasants received loans from IRDP • Rich farming become influential in getting loans from IRDP • State also initiated in providing loans to peasants by Agricultural Development Finance Corporation and Agricultural Bank of Pakistan • They encourage peasants receive loan from these financial institutions • Each technology is capital based, so agriculture loan gotten importance to peasants.

NGOs and micro finance institutions (MFIs) loan services • After independence of Bangladesh, agricultural development bank (ADB) is providing loans to peasants in Bangladesh • Agricultural loans were for buying irrigation equipments, planting crops, buy cattle for plough • Peasants need to provide mortgage to get loans from these financial institutions • As mortgage required for getting agricultural loans from these financial institutions, only influential rich farmers, rural elites get loan from them • Recently NGOs are providing loans to rural peasants • Here marginal cultivators and landless people get loan from them • Loans are for raising cattle, fisheries, seasonal business etc. • BRAC is providing micro loans to marginal peasants in the villages • BRAC provided • 55% loan for petty enterprises • 19% for agriculture and irrigation and • 17% for cattle fattening/rearing.

Peasants Market Relations • • • General goods production economy is different from agricultural economy Peasant produces for his family need and the surplus (if any) for market Rich farmers produce cash crop products which have market relations Peasant products come to urban and they used industrial productions too Currently peasant economy is saturated and integrated in the world market Some thinkers said, ” Peasant economy treated ‘petty commodity producer’. ”

Peasants Market Relations • Peasant economy cannot contribute to capital accumulation although they produce for market • Evolve rich peasant class, middle class and marginal peasants • Middleclass or marginal peasant bound to produce products for market because he is dependent on market in various ways • Marginal peasants compel to repay his dues of cost or livelihoods costs from investors’ loans

External capital to peasant economy and Contract growers External capital added in peasant economy For example, BTC buy tobaccos from peasant by contract growing method Here production costs supply to peasants in advance However, it fixed quota how much a farmer can produce and his products shall be purchased • Contract growers/farmers: Vegetable producers, cow fattening, poultry farming, poppy cultivation • •

Capital accumulation in the market production system • Through capital economy, capital accumulated by market production system • However, some peasants’ loss their production cost in the competitive market • One category of peasant can accumulates capital in peasant economy which cannot widely transform into capitalistic market • However, peasant economy proceeds to different capitalist system • It is because of diverse/manifold/ miscellaneous historical reasons • For example, Punjab capitalist accumulation of resources occurred which is different from West Bengal India • It is because these two agricultural regions developed historically in two different ways- one region developed capitalism.

Capital accumulation in the market production system continue-2 • East Bengal failed to develop peasant capitalist economy • Peasant economy market relations expand with the expansion of new technology • Agricultural labor market increases with the expansion of production • As a result labor market becomes active • Labor demand increase with expansion of production resulted by labor from outside market in many peasant family • Production activity influenced by finance • Peasant economy is linked with urban economy • Therefore production transaction prevails between peasants and cities.

Intermediate organization and capitalist production • Intermediate organizations are BTC, Grameen Krishi Foundation • They are the linking intermediate organizations between actual capitalist production process, producers and consumers • For example, a cigarette company reached its products by its many wholesalers and retailers • Nevertheless , these market agents wholesalers and retailers rarely influenced production organization. • But non-production class has huge role to link peasant society with market • In this way market interlock relationships develop with peasants • In this way rich peasant has control over two sources • (1) Land market • (2) Capital market.

Wholesale Merchants and Brokers role in agricultural market • Intermediate agencies gain profit from these two sources • They control over share croppers and they become powerful day by day • Wholesalers and brokers exist in villages that control products and capital market • They consume surplus agricultural production • Wholesalers and brokers are businessman and capital investors • Peasants sell their cops in advance to wholesalers and brokers before starting crop harvesting seasons • Even they receive advance loans for sending family expenditure • They repay these loans after crop harvesting.

Wholesale Merchants and Brokers role in the agricultural market -continue 2 • Peasants get fewer prices of their crops by selling their products for repaying their loans to Mahajons and loan investors • Wholesalers and brokers make profit through this cyclical trap • Wholesalers and brokers are widespread both in cities and villages • Wholesale Merchants and Brokers receive investment capital from their neighboring wholesale merchants and brokers • This money paid by the wholesalers and brokers of big market and harbors have widespread link with cities • They bring loan capital from agriculture absentee land lords live in cities • All of them get profit from buying agricultural products in the fluctuating market.

Forced Commercialization • Peasant borrowers bound to repay their loans immediately after crop harvesting • However, the crops price is low when peasant sell his products in market and repay his loans • The price is increasing after few months • The profit continually consumed by whole buyers • Peasant borrowers know the market fluctuation, but they are helpless • Because of distress sale-crop sell immediately after harvesting for peasant own family need

Forced Commercialization • Price control is out of producers and deprive of a major share of profit • Peasant economy dynamism is coming from with the expansion of capitalism system • However, this creates a structural tension by social division • This structural tension leads to dynamism in society.

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