During the 1960s and 1970s there was an intense debate on the observed inverse relationship between farm size and per hectare agricultural productivity in India. It was subsequently argued that the higher productivity of smallholdings would disappear with the adoption of superior technology, modernisation and growth in general. However, close to half a century later, National Sample Survey data from the initial years of the 21st century show that smallholdings in Indian agriculture still exhibit a higher productivity than large holdings. These smallholdings however show lower per capita productivity and the incidence of poverty is widespread. Strategies for Indian agriculture and smallholding households should include reducing the inequality in land distribution and promoting off-farm work in the rural areas itself. The strategy of improving the crop land-man ratio by facilitating migration from rural India has not worked and will not work. The lives of smallholding families can be improved only by building on their higher per acre agricultural productivity and by promoting off-farm rural employment.
