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Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India

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  • Klaus Deininger
  • Daniel Monchuk
  • Hari K Nagarajan
  • Sudhir K Singh

Abstract

To appreciate overall impacts of fragmentation, underlying channels, and potential heterogeneity by holding size, we distinguish average fragment size and mean inter-fragment distance as two aspects of this phenomenon. Estimating a cost function with associated input demand equations on a large nationally representative Indian survey, robust to endogeneity, suggests that fragmentation’s main impact is to reduce mean plot size below the threshold for mechanisation. Higher inter-fragment distances increase costs for larger holdings, but by a much smaller magnitude. Implications as to when programmes to consolidate holdings may make sense and ways to ensure their sustainability are discussed.

Suggested Citation

  • Klaus Deininger & Daniel Monchuk & Hari K Nagarajan & Sudhir K Singh, 2017. "Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India," Journal of Development Studies, Taylor & Francis Journals, vol. 53(1), pages 82-98, January.
    • Handle: RePEc:taf:jdevst:v:53:y:2017:i:1:p:82-98
    DOI: 10.1080/00220388.2016.1166210
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