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Telangana’s AgriculturalGrowth Experience

of development priority assurancesunder the Six Point formula. However, thefeelings of Telangana’s backwardnesscontinued to persist even after more than40 years.

Apart from political aspirations, theeconomic dimension of the feeling – ‘weare being neglected’ – is much associatedwith agrarian economy. This kind of feel-ing arose because there were no equityconcerns in state’s development initia-tives which left aside the interests of areashaving in-built growth potentials. Also,there has been an intellectual debate onTelangana’s backwardness in general andagricultural growth in particular. In thiscontext, Vamsi’s paper is quite appre-ciable for providing an understanding ofthe long-run agricultural growth patternsin the region.

One of the central observations of thispaper derived from his growth rate exer-cise challenges the popular perception byarguing that there is no evidence ofTelangana being ‘backward and stagnant’.One may agree with this observation butwith proper qualifications. It is evident thata region is called backward only in relativeterms, i e, it lags behind with reference tothe developed regions, and the term stag-nant implies the lack of movement in anydirection, i e, growth either positive ornegative. Therefore, in light of these clari-fications, Vamsi’s refutation of Telanganabeing backward and stagnant is not validfully. It is not growth rate per se but thelevels that matter while talking aboutbackwardness. Suppose if a region hasshown high growth rates but it grows atlevels lower than other regions, then willit be right to refer that this region is notbackward? We hold that it cannot be. Weagree that his analysis based on growthrates may nullify the ‘stagnation’ compo-nent of the popular perception but not theother part of backwardness as it is a rela-tive concept. For most of the agriculturaldevelopment parameters, Telangana’srelative position remained backwardthough there has been positive changessince the state formation. For instance,though the percentage of net sown area

under irrigation increased from 16 per centto 36 per cent between 1955-58 to 1996-99in Telangana, it remained below that ofcoastal Andhra (58 per cent). The valueof output per hectare when estimated for1996-99 triennium turns out to beRs 26,163, Rs 15,171 and Rs 19,466 forcoastal Andhra, Telangana and the stateaverage respectively. And the per capita(rural person) value of output is Rs 4,600,Rs 3,338 and Rs 4,225 in coastal Andhra,Telangana and the state average respec-tively [Subrahmanyam 2002]. In fact, theedited volume by Krishana Rao andSubrahmanyam (2002) is more illustrativeon regional disparities in Andhra Pradeshwith respect to growth and levels. Vamsi’spaper though being a complementary pieceis not complete per se. Some conceptsneed more clarity and explanations –especially on immiserisation of marginalpeasantry and agricultural labourers.

Irrigation is a vital input to agriculture.Adequately developed irrigation poten-tials can determine the growth of agricul-tural output. Investment in a plannedeconomy facilitates the development ofirrigation potentials. This investmentcomes from two sources, public and pri-vate. In the welfare state context, theagrarian economy is transformed fromprincipal source of state revenue to thedestination of state investment. Irrigationis an important area having large require-ments for state investment. The equityconcerns in the context of Telangana’sbackwardness puts forward the case forproviding a large degree of state help inthe form of public investment. This invest-ment if made in the form of building upirrigation networks promises returns tooas Telangana have the potential for agri-cultural development. Subrahmanyam(2002) has shown that the output elasticitywith respect to irrigation has remainedhigh in Telangana in comparison to restof Andhra Pradesh. Unfortunately, neitherof these aspects attracted state attentionand consequently, there has remained apaucity of funds required for the expan-sion of adequate irrigation networks.

The initial conditions were quite differ-ent in coastal Andhra where the expansionof canal irrigation network got momentumin mid-19th century. This initial effortplayed a significant role in transformingthis once-famine-ridden region into aprosperous one and thereby leavingcoastal Andhra with large areas under

M VENKATANARAYANA, VARINDER JAIN

The following discussion is in connec-tion with the paper ‘Agricultural

Growth and Irrigation in Telangana:A Review of Evidence’ by Vamsi Vakula-bharanam (EPW, Vol 39(13), March 27-April 2, 2004: 1421-26).

Telangana has been known for its back-wardness in all respects – social, eco-nomic, cultural and political development.This backwardness is attributed to itsgeographical, historical and cultural rea-sons. The historical reasons, for example,point towards the rule of non-progressiveNizam state. Being the most privilegedstate among the princely states under theBritish paramountcy, its socio-economicdevelopment was far below to that of itsfellow princely states. People’s sufferingsunder the oppressive, semi-feudal rela-tions and thereby a breakout under theguise of ‘The Great Telangana ArmedStruggle’, are known stories.

Andhra Pradesh was formed on thelinguistic basis out of the regions, viz,Andhra of erstwhile composite Madrasand Telangana of Nizam’s Hyderabad,with different levels of resource endow-ments and development experiences. Atthe time of state formation, in fact, the verysame state reorganisation commissionrather than joining Telangana with Andhrasuggested to remain it as a separate state.Nevertheless the state was formed withassurances of giving proper considerationand development priorities. Moreover, itwas felt that Telangana’s interests wouldbe considered, as there had been an ob-jective of balanced regional developmentin Indian economic planning. However,hitherto it remained unclear how far, sincethe state formation, the needs and aspira-tions of people and thereby the planningpromises have been fulfilled. The percep-tion of the people especially of middle andelite classes remained as they are beingneglected. As a consequence, it resultedinto ‘Separate Telangana Movement’ inthe late 1960s, which served politicalmileage for some rather than any advan-tage to the region except the reiteration

Discussion

Economic and Political Weekly May 29, 20042320

irrigation. The net sown area at the timeof state formation was 45 per cent. Thiswas higher than that of Telangana(only 15 per cent; one-third of coastalAndhra) [Krishna Rao 2002:30]. Giventhe promises of development priorities tothe people of Telangana at the time of stateformation, one would expect that tomaterialise in irrigation – a crucial deter-mining factor behind agricultural growthand thereby people’s livelihood in theregion. But the experience has been farfrom expected. Though Telangana’sachievement in bringing eight lakh hect-ares (out of 16 lakh hectares in the state)under irrigation during the last 45 yearsseems to be remarkable, the whole percep-tion changes when one considers the sourceof irrigation. The role of public effort inbuilding up this irrigation potential isminimal, as large contribution has beenmade with private initiatives. In 1960-61the share of irrigated area by canal, tankand wells was 19, 62 and 18 per centrespectively. These sources of irrigationhave undergone changes over the periodof time and the composition has changedto 18, 19 and 63 per cent respectively in1999-2000 [Subrahmanyam 2002:90]. Ifwe consider both canal and tank irrigationas public sources and wells as private one,it is evident that the increase in area underirrigation during the period took placemainly out of private investment.

This has implications in the context ofchanging agrarian structure in the state.There has been an increase in area and thenumber of holdings under marginal andsmall holdings vis-a-vis that under me-dium and large holding [Parthasarathy2002]. This change may have differentimplications for regions with varyinglevels of factor endowments.

Unlike coastal Andhra, the agriculturalcost of production in Telangana includesan extra element of irrigation cost (expen-diture on digging wells and lifting water).This additional irrigation cost has leftmarginal and small farmers of this regionin a most disadvantageous position be-cause the irrigation cost enhances the costof production and thereby leaves the farmerwith little surplus or even deficit in somecases. The farmers, not only by putting allphysical and financial resources at theirdisposal but also by borrowing money areproducing enough output which result inhigh output growth rates and stability inagricultural output [as Vamsi observed,p 1424]. It is important to note that thisgrowth in output is accompanied by anincrease in area under non-foodgrains,mostly commercial. This crop compositionalso has a bearing on farmers’ financial

position. Unlike food crops, the cultiva-tion of these crops makes the farmers morevulnerable to market fluctuations. Owingto this, the farmers in spite of producingenough are not able to maintain a decentstandard of living out of their earnings.This disability also arises due to lack ofadequate credit facilities. The agriculturalcredit (disbursed by commercial banks)per agricultural population (cultivators andlabourers) after excluding Hyderabad forthe year 2000 has been Rs 1,899 inTelangana in comparison to Rs 2,856 incoastal Andhra. In the absence of adequatecredit facilities, the farmers easily fall intousurious non-institutional debt trap whichin the presence of continuously rising inputcosts has led to farmers’ suicides inTelangana [Revathi 1998]. This pheno-menon when seen as a whole may be con-sidered a major factor behind theimmiserisation of peasantry especiallysmall and marginal, in the region.

But, in case of agricultural labourers, itremains still unclear how, as observed byVamsi, the immiserisation process takesplace in the region. It needs some clari-fication in the light of the fact that theagricultural wage rate in Telangana is atpar with coastal Andhra. When the con-sumption levels of agricultural labourersare determined by their wages, then why

is the immiseration of agricultural labourerstaking place only in Telangana and not incoastal Andhra! There are possibilities ofhaving almost same wage rates but atdifferent levels of man-days employed ina year. Keeping this in mind, the decliningnumber of man-days employed inTelangana may provide a better descrip-tion of the immiserisation of agriculturallabourers in the region.

References

Krishna Rao, Y V and S Subrahmanyam, (eds)(2002): Development of Andhra Pradesh (1956-200): A Study of Regional Disparities, NRRResearch Centre, Hyderabad.

Parthasarathy (2002): ‘Changing AgararianStructure: Nature of Transition in Post-GreenRevolution Period’ in Y V Krishna Rao andS Subrahmanyam (eds), Development ofAndhra Pradesh (1956-200): A Study ofRegional Disparities, .

Revathi (1998): ‘Farmers’ Suicide: Missing Issues’,Economic and Political Weekly, 33 (20): 1207.

Subrahmanyam, S (2002): ‘Regional Disparitiesin Andhra Pradesh Agriculture’ in Y V KrishnaRao and S Subrahmanyam (eds), Developmentof Andhra Pradesh (1956-200): A Study ofRegional Disparities,

Vamsi, Vakulabharanam (2004): ‘AgriculturalGrowth and Irrigation in Telangana: A Reviewof Evidence’, Economic and Political Weekly,Vol 39 (13): 1421-26.

EPW