Ceilings for Landholdings was imposed as one of the measures of agrarian reform in India after independence to redistribute land and land properties. The main aim of these ceilings was the demolition of the large amount of land properties that had been captured by the big landowners.
Reasons behind the ceiling:
Before independence, the British government created a "Zamindari" system through which the Zamindars, i.e the big land owners, had the power to exploit the poor farmers. They could also forcefully acquire the land of the farmer. There was no limit of this land occupation as well.
Even the intermediaries between landholders and Government, developed by the British, also captured the land of the cultivators.. Therefore, the farmers were hardly interested to invest.
So, after independence, the ceiling for landholdings was absolutely necessary for tenancy reform and proper redistribution of land.
Rules of the Ceilings for Landholdings:
At first, the limit was set only for those landholdings or land properties which would be captured in future. But later, a fixed upper limit was set for the amount of landholdings. If the size of land exceeded the prescribed limit then that would be taken by the Government and redistributed to the small and marginal farmers.
The landholders were given the choice to decide which part of the land they would give if the amount of land exceeded the ceiling limit. So the obvious result was that most of the acquired land were infertile and wastelands. So later on, the choice was transfered to the government and the limit was set in terms of land utility.
Effects:
The ceilings for landholdings abolished the concept of big land property and helped the tenancy reforms.
By the imposition of ceilings, land were redistributed in an equitable manner and no big landowners could capture the lands unlimitedly. This also helped to develop a good land management system.
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Professor at Columbia University. Recipient of the Nobel Memorial Prize in Economic Sciences in 2001 & the John Bates Clark Medal in 1979. Author of "Freefall: America, Free Markets", "The Sinking of the World Economy", "Globalisation and its Discontents" & "Making Globalisation Work".
Professor of Economics & Director of the Earth Institute at Columbia University. Special Adviser to the UN Secretary-General on the Millennium Development Goals. Founder & co-President of the Millennium Promise Alliance.
Chancellor of the Exchequer of the United Kingdom from 1992 to 2007. Prime Minister of the UK between 2007 and 2010. Inaugural 'Distinguished Leader in Residence' at New York University. Advisor at World Economic Forum
CEO and co-CIO of PIMCO. Served as President and CEO of the Harvard Management Company for 2 years, while also working at the IMF for 15 years. In 2008, his book "When Markets Collide", won the Financial Times award for Business Book of The Year in addition to being named as the one of the best business books of all time by The Independent.