Agriculture: Impact of commercialisation


Aloysius Milon Khan | Published: December 04, 2014 00:00:00 | Updated: November 30, 2024 06:01:00


Bangladesh is still largely an agrarian country. Nearly 70 per cent of its population is living in villages, of which 54 per cent live on agriculture and the remaining on rural non-farm sectors.  Agriculture is one of the most crucial sectors in Bangladesh contributing 19.6 per cent to the national GDP (gross domestic product) providing livelihood to 63 per cent of the population.
Agriculture has an overwhelming impact on employment generation, poverty alleviation, human resources development and food security. Production of rice, being the staple food, is critically important. Unfortunately, the agricultural land in the country is gradually shrinking due to increasing population, unplanned urbanisation, and industrialisation. According to the World Bank, the total arable land in Bangladesh is 61.2 per cent of the total land area (down from 86.3 per cent in 1980). Farmers are usually very small due to population bulge, unwieldy land ownership and inheritance regulations.
The cultivable agriculture land is only 80,30,000 hectares of which 30 per cent is under threat of being lost. Every year about 1,000 hectares of agriculture land is being washed away by river erosion. Moreover, the government has no control over 80 per cent of agricultural khas land; 56 per cent of the total population of the country is landless. There are about 1,76,804 farmer families of which 60 per cent is marginal farmers. While the agriculture land is being turned to non-agricultural uses, the livelihood of these marginal farmers is at stake.
COMMERCIALISATION OF AGRICULTURE: While agriculture is getting commercialised, most of the cultivable lands are cultivated and as a result, the gap between cultivable and cultivated land decreases. This was clearly found in an exploratory study conducted by Professor Dr Abul Barakat and his associates and sponsored by the Association for Land Reform and Development (ALRD) in January 2011. In this survey titled 'Commercialisation of Agricultural Land and Water Bodies and Disempowerment of Poor in Bangladesh', a micro-level village study was conducted to explore some aspects of commercialisation of agriculture in Bangladesh. The study found that in an average village, the gap between (average) cultivable and (average) cultivated lands was 160 acres in 1972, which has reduced to 43.3 acres in 2009; a decrease of nearly four times has also been noticed in four decades.
Commercial agriculture provides incentives to those crops which bring profit, and acts as disincentive for those crops whose yield is not lucrative. The study found six types of new crops produced during the last 20 years, which were not produced earlier in the villages and it has also come across 11 types of old crops which were produced 20 years earlier but discontinued afterwards. The average increase in cultivable land was steady during 1972-1989 period, nearly 50 per cent increase in two decades.
But there was a downward trend from 1989 to 2009, a 19.28 per cent per cent decrease in 20 years. Per village average extent of decrease in cultivable land was 203 acres during the last four decades. Using this parameter, the estimated total decrease in cultivable land in all the 4 villages of Bangladesh comes to 10,709,630 acres. Cultivated land of 40 per cent villages has decreased during the same period. The average extent of decrease in cultivated land per village is 89.25 acres. Using this parameter, the total amount of decrease in cultivated lands in all the villages of Bangladesh comes to 3,139,029 acres.
Total agricultural lands of the country, specially farm land and forestry, that have gone for non-agriculture uses like housing, shops, industries, schools, medical centres and mosques from 1972 to 2009 is 2,666,856 acres and annually 72,077 acres. About 2,198,200 acres of agriculture land have gone to housing during the past four decades. So, annually 59,410 acres of agricultural land have been used for housing purposes.      
The number of and area under water bodies increased over time due to commercialisation of agriculture spread over water bodies. The area under natural water bodies decreased but surpassed by the number of lands under commercially- dug water bodies. In the commercial setting, quantity of natural fish production decreased though that of commercial fish increased manifolds through the increase of commercial fishery. Natural fish production has decreased by 177,565,337 'maunds' during the last four decades having annual decrease of natural fish production by 4,799,063 'maunds'.  
POSITIVE IMPACT:  While agriculture gets commercialised, a plethora of commercial off-farm activities have provided alternative employment opportunities to the rural people.  Commercialisation of agriculture has produced some positive impacts boosting commercial activities. More lands were available for more production leading to increasing agricultural and non-agricultural products. Crops, both food and cash, increased. Also fish production increased supplying protein diet. Employment opportunities were created. New consumer goods and services were made available. Accommodation for increased people was possible. Access to primary education and primary healthcare increased. There was a rise in rural human capital. Poor people's asset base income   was created. Ultimately, rural GDP increased.  
NEGATIVE IMPACT: The negative impact of commercialisation of agriculture was evident in the fact that agricultural lands decreased. Fewer cultivable lands have been left for future cultivation. Unemployment and under-employment persist in agriculture leading to a great number of farmers leaving farming. Also a huge number of fishermen have left fishing. Rural-to-urban migration has increased to a great extent. Natural fish production has decreased.
Land degradation for alien tree plantation has taken place. Brick fields were set up causing permanent damage to the soil fertility and causing environmental pollution. Tobacco and shrimp cultivation have caused a dent into soil fertility and irreversible damage to ecology. Marginal farmers and fishermen have been forced to leave their primary occupations. Though food production has increased overtime, more output may not be a precondition for the poor people's food security while their decreased real income has failed to afford necessary nutrition.
Increased rural-to-urban migration implies that there have been insufficient employment opportunities for those living in the villages. Hence, the long-term problem, created by agricultural commercialisation, is much more alarming. Soil infertility, land degradation, land abuse and misuse or inappropriate use are deeply connected with commercialisation which will ultimately result in severe food insecurity by leaving  inadequate, low fertile cultivable lands for rising population of the country.
A NATIONAL LAND POLICY NEEDED: A national land policy for safeguarding and using lands productively has become a dire need. The government has already made a draft for the Protection of Agricultural Land and Land Use Act 2011.  
In the 2014-15 Budget, the government has allocated only 7.6 per cent of the total outlay for agriculture sector. The agriculture sector needs to be addressed with priority if we are really serious about making Bangladesh a middle-income country in the near future.    

The writer, a former Communications Manager at DFID, is Treasurer of the Association for Land Reform and Development (ALRD).
khan.aloysius@gmail.com

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