Farming Case of Godavari Delta G Parthasarathy V Pothana This paper enquires into the extent and trends in the development of capitalism in agriculture in a canal irrigated paddy growing district of Andhra Pradesh. The district selected for this purpose, West Godavari, has been under the strong influence of technological change associated with high-yielding varieties. The main indices set up for study of the transition towards capitalism are: (i) hired labour use relative to family labour use; (ii) rental incomes; (iii) output levels per hectare and marketed surplus; (iv) use of modern inputs; (v) investments per hectare; and (vi) rate of surplus value, rate of profit and reinvestments.