INFOCUS|CHINA|AGRICULTURE
Sowing New Seeds of Reform In China, the ‘liuzhuan’ scheme gives farmers land- use rights that can be transferred to others in exchange for a rental fee. Is this ‘de facto land privatization’ scheme helpful in boosting agricultural productivity? The article explores China’s third wave of land reforms in addition to other challenges bogging the sector.
|52| India-China Chronicle January–February 2015
Jayshree Sengupta
I
t is time for China to gear up for fresh reform measures in its agricultural sector. When Mao’s land reform experiments with community based/collectivized farming failed, China realized that different type of reforms is necessitated. The year 1978 marked the beginning of looking at agricultural reform under the Household Responsibility System in which households were required to provide to their collective units, quotas of food grains in return for tools, draft animals, seeds and other essentials. Ownership of land lay with the communes but the user and production rights were decentralized. In effect, Deng Xiaoping moved agriculture towards a market economy. Further reforms were introduced in 1993. The grain rationing system was abolished and 90 per cent of all annual production was allowed to sell at market determined prices. There was an increase in public investment in agriculture as the government engaged in irrigation projects, larger state farms and encouraged mechanization and intensive fertilizer use. Agrarian sector spearheaded reforms in the rest of the economy. It catalyzed growth in the wider rural economy and Chinese population grew richer and moved to towns and cities. Agricultural growth fuelled rapid urbanization and industralisation. Challenges in Agriculture Today, rapid industrialization and urbanization has claimed large portions of arable land. Combined with huge population, China needs to increase food supply by 40 per cent to meet the increase in food demand by 2030. In 1995, per capita land area was 0.08 hectares but it is likely to go down to 0.05 hectare by 2030. China has to feed three times the number of people per unit area of land than the rest of the world. In addition, the growing middle class is consuming more protein diet, but feeding that demand may be difficult with increasing land and
water constraints. It has 1.4 million square kilometers of arable land and only 1.3 per cent of land permanently supports crops. The size of the farms is small and is divided into 200 million households where average allocation is just 0.65 hectares. The root of China’s problems is the limited availability of arable land. In addition, farmland quality in China is facing degradation and 2.9 per cent of farmland has medium to serious pollution levels. China uses 7 per cent of world’s farmland to produce but is able to feed 22 per cent of the global population. The country has reached self-sufficiency in food production but imports soybean and cotton. Recently, however, China has been importing food grains and imported 2.6 million tons of rice, 5.5 million tons of corn and 4 per cent of global grain production in 2012. On the whole it imported more than $46 billion in food grains in 2013.
The rise in producTion is due To an increase in yield as opposed To increase in planTed area. china boosTed iTs grain producTion by more Than 50 per cenT during The 1980s and 1990s when agriculTure grew aT 5.3 per cenT per year Lately, the government’s policy seems to be geared towards reducing the number of people dependent on agriculture. But people want to stay in the rural areas tied to land because it offers a form of social security for millions of registered rural residents. An increase in China’s agricultural productivity has been achieved through vigorous application of mechanical power and fertilizers. In 2012, for the total sown area of 163 million hectares, 583 tons of chemical fertilizers and 750,846 million kwh of electric power was used. About 63 million hectares were irrigated from
January–February 2015 India-China Chronicle |53|