Revisiting agrarian questions of capital: examining diversification by capitalist farmers in Punjab, India

While economic diversification by capitalist farmers in India is a commonly accepted fact, it is rarely analysed through the lens of agrarian questions of capital. This paper argues that questions about the movement and transformation of agrarian capital continue to be significant in understanding contemporary processes of agrarian change and rural development. However, these need to be studied by looking beyond the agrarian transition debate in contexts where agrarian capitalism has consolidated itself and non-agricultural capitalist development is not fuelled by agrarian capital. Using the case of the state of Punjab and drawing on intensive field research, the paper examines a broad spectrum of non-farm investments and activities of large capitalist farmers, including agriculture-based business, non-agricultural business, education-based diversification and international migration. It shows that both industrial investments and mobility through education have been limited. International migration is a preferred, but also risky, channel for the utilisation of agrarian surplus. The analysis takes seriously experiences of failure of non-agricultural businesses, resulting in the circulation of agrarian capital across the agricultural and non-agricultural sectors. This both further strains accumulation within agriculture and reveals the limits to productive investment in the non-agricultural economy imposed by historically specific social, political and economic conditions.