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Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern Agricultural Land Lease Pattern in Uttar Pradesh: Implications in Uttar Pradesh: Implications for Landless, Marginal and Small for Landless, Marginal and Small Households Households

Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

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Page 1: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Dr. Jabir AliAssistant ProfessorAgriculture Management CentreIndian Institute of Management,Lucknow – 226 013

Agricultural Land Lease Pattern in Agricultural Land Lease Pattern in Uttar Pradesh: Implications for Uttar Pradesh: Implications for Landless, Marginal and Small Landless, Marginal and Small

HouseholdsHouseholds

Page 2: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Indian Institute of Management, LucknowIndian Institute of Management, Lucknow

BackgroundBackground

Under the Uttar Pradesh Zamindari Abolition and Land Reform Act, 1950, lease has been banned except by defence personnel, disabled person of various categories and students.

Leasing-in and leasing-out is common in reality and visible among all categories of households with no records and safeguards.

Liberalization of tenancy may benefit marginalized community

Proper utilization of land resources

Page 3: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Indian Institute of Management, LucknowIndian Institute of Management, Lucknow

ObjectivesObjectives

This paper focuses on:

– Land use pattern and fallow land

– The magnitude of land ownership among various categories of households

Gini Ratio: (varies between 0 to 1; 0 being perfect equality and 1 perfect inequality)

Lorenz Curve: (The diagonal line represents perfect equality, while area under the curve as proportion to total area under the diagonal line represents degree of inequality)

– Implications of lease pattern in improving agricultural practices and providing livelihood support to landless, marginal and small farmers by enhancing operational holdings.

Page 4: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Indian Institute of Management, LucknowIndian Institute of Management, Lucknow

Landuse Pattern in Uttar Landuse Pattern in Uttar Pradesh Pradesh

Land use categories Area in 000' hectares % of Reported Area

1980-82

1990-92

1998-00

1980-82

1990-92

1998-00

Reported Area 23999 24437 24418 100 100 100

Forest 1683 1739 1759 7.0 7.1 7.2

Barren Land 838 726 630 3.5 3.0 2.6

Land under Non-Agricultural Use

2195 2333 2446 9.1 9.5 10.0

Culturable Waste 824 709 565 3.4 2.9 2.3

Permanent Pasture & Miscellaneous

80 406 403 0.3 1.7 1.7

Other Fallow 703 823 671 2.9 3.4 2.7

Current Fallow 1128 1110 1027 4.7 4.5 4.2

Net Cropped Area 16548 16592 16917 69.0 67.9 69.3

Cropping Intensity 137 141 144 - - -

Other Fallow/NCA=4.0%, Current Fallow/NCA=6.1%

Page 5: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Indian Institute of Management, LucknowIndian Institute of Management, Lucknow

Area under current fallow reported by Area under current fallow reported by the sample households the sample households

Categories Total Sample

Households reported current fallow

Current Fallow Area

Number % (ha) %

Marginal 204 34 (16.7) 46.5 18.0 15.2

Small 125 17 (13.6) 23.3 20.2 17.0

Semi-Medium 52 11 (21.2) 15.1 26.1 22.0

Medium & Large 15 11 (73.3) 15.1 54.4 45.8

Total 396 73 (18.4) 100.0 118.6 100.0

Page 6: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Indian Institute of Management, LucknowIndian Institute of Management, Lucknow

Landholdings in Uttar PradeshLandholdings in Uttar Pradesh

State/Region

1980-81 1990-91 1995-96

Eastern 1.34 0.67 0.70

Western 0.73 1.09 0.98

Central 1.29 0.85 0.86

Bundelkhand 2.12 1.71 1.42

Ghazipur 0.88 0.78 0.77

Aligarh 1.54 1.36 1.19

Sitapur 1.01 0.82 0.86

Jalaun 2.06 1.67 1.68

Uttar Pradesh

1.11 0.90 0.86

Average size of landholdings in Uttar Pradesh

Page 7: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Indian Institute of Management, LucknowIndian Institute of Management, Lucknow

Distribution of Landholdings in Uttar Distribution of Landholdings in Uttar PradeshPradesh

Number (1980-81)

Marginal70.8%

Semi-Medium9.1%

Medium3.6%

Large0.4%

Small16.1%

Number (1995-96)

Marginal75.4%

Small14.6%

Semi-Medium7.4%

Medium2.5%

Large0.2%

Area (1980-81)

Marginal23.6%

Small24.6%Semi-Medium

26.8%

Medium19.4%

Large5.6%

Area (1995-96)

Marginal33.9%

Medium15.8%

Large3.3%

Semi-Medium23.2% Small

23.8%

Page 8: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Indian Institute of Management, LucknowIndian Institute of Management, Lucknow

Inequality in Land Distribution (Gini Ratio)Inequality in Land Distribution (Gini Ratio)

Region/ Districts

1980-81 1990-91 1995-96

Regions

Eastern 0.48 0.69 0.68

Western 0.59 0.71 0.76

Central 0.74 0.81 0.83

Bundelkhand 0.53 0.93 0.63

Districts

Ghazipur 0.62 0.69 0.75

Aligarh 0.50 0.72 0.75

Sitapur 0.74 0.83 0.89

Jalaun 0.53 0.56 0.57

Uttar Pradesh 0.47 0.64 0.69

Page 9: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Indian Institute of Management, LucknowIndian Institute of Management, Lucknow

Inequality in Land Distribution (Lorenz Curve)Inequality in Land Distribution (Lorenz Curve)

Distribution of Land Holdings in Uttar Pradesh, 1980-81

and 1995-96

0%

20%

40%

60%

80%

100%

Cumulative % no of household

Cu

mu

lati

ve %

of

area

1980-811995-96

Page 10: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Indian Institute of Management, LucknowIndian Institute of Management, Lucknow

Percent of Households reporting leasing out Percent of Households reporting leasing out and leasing in by category, 1992 and leasing in by category, 1992

Category Uttar Pradesh India

Leasing out

Leasing in

Leasing out

Leasing in

Marginal 5.6 24.7 4.9 31.5

Small 7.9 16.0 7.3 10.9

Semi-Medium 11.4 6.2 9.9 8.3

Medium 11.5 5.6 8.3 6.5

Large 8.5 15.2 7.3 3.9

All 5.7 16.5 4.8 14.6

Page 11: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Indian Institute of Management, LucknowIndian Institute of Management, Lucknow

Distribution of Leased in area by Distribution of Leased in area by terms of Lease in Uttar Pradeshterms of Lease in Uttar Pradesh

Category Fixed Money

Fixed Produce

Share Produc

e

Usufructuary

Mortgage

Others

1982

Marginal 23.2 14.2 51.9 1.0 9.7

Small 7.2 3.9 78.7 0.2 10.0

Semi-Medium 16.0 3.4 73.1 0.9 6.6

Medium & Large 8.2 10.1 70.0 0.4 11.3

1992

Marginal 15.0 11.0 41.8 0.1 32.1

Small 6.6 20.9 51.1 0.6 20.8

Semi-Medium 8.3 13.2 43.8 0.0 34.6

Medium & Large 1.9 13.7 36.9 0.0 47.4

Page 12: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Indian Institute of Management, LucknowIndian Institute of Management, Lucknow

Lease Pattern and Operational Holdings Lease Pattern and Operational Holdings in Uttar Pradesh in Uttar Pradesh

Category No. of Households

Shift in household category after lease

Average Owned Land (ha)

Average Operational Holding (ha)

All 4 Districts

Landless 51 0 0.00 0.96

Marginal 194 204 0.43 0.58

Small 95 125 1.27 1.31

Medium & Large 56 67 3.20 3.20

Total 396 396 0.97 1.17

Page 13: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Indian Institute of Management, LucknowIndian Institute of Management, Lucknow

Land Lease-in Pattern in Selected Land Lease-in Pattern in Selected Households Households

Districts Category No. of Lessee % of lessee

Ghazipur Marginal 23 100.0

(23/99) Small 0 0.0

Semi Medium 0 0.0

Medium 0 0.0

Aligarh Marginal 27 96.4

(28/99) Small 1 3.6

Semi Medium 0 0.0

Medium 0 0.0

Sitapur Marginal 20 83.3

(24/98) Small 3 12.5

Semi Medium 1 4.2

Medium 0 0.0

Jalaun Marginal 22 95.7

(23/100) Small 1 4.3

Semi Medium 0 0.0

Medium 0 0.0

Total Marginal 92 93.9

(98/396) Small 5 5.1

Semi Medium 1 1.0

Medium 0 0.0

Page 14: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Indian Institute of Management, LucknowIndian Institute of Management, Lucknow

Conclusion and SuggestionsConclusion and Suggestions

Active lease market has positive impact on improving the operational landholdings of landless, marginal and small households.

But due to lack of legislative support farmers are reluctant to participate in lease market and rather prefer to leave their land fallow instead of leasing it out.

Therefore, proper policy support for lease land may enhance the utilization pattern of agricultural land and better livelihood support to landless, marginal and small households.

Page 15: Dr. Jabir Ali Assistant Professor Agriculture Management Centre Indian Institute of Management, Lucknow – 226 013 Agricultural Land Lease Pattern in Uttar

Indian Institute of Management, LucknowIndian Institute of Management, Lucknow