Abstract
In rural areas, agriculture is the primary source of income, and the income depends on the primary factor of production, land. The higher the productivity of the land, the higher the income and general prosperity and lower the levels of poverty. However, it may not always be true if the benefit from the higher productivity accrues to a certain section of large farmers, bypassing the small ones. The study found that, the introduction of irrigation in a poverty-stricken region has promoted advanced capitalist farming and raised the level of output per unit of land. On the other hand, it has led to greater landlessness and inequality among various farm size groups. The benefit is concentrated among few farmers. In this process, there is greater ‘proletarianisation’, which needs to be stopped from worsening the situation further.
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