People's Democracy

Implement Land Reforms For A More Inclusive And Sustainable Agricultural Growth – II

Views Of Bengal Govt Placed In NDC Meeting

The following is the text of the government of West Bengal’s written views placed in the NDC meeting held in New Delhi on May 29, 2007 by the state finance minister Dr Asim Das Gupta. The first part of the speech has been published in People’s Democracy issue dated June 17, 2007.

SEEDS, FERTILIZERS AND CROPPING PATTERN

IN order to increase the productivity of the major crops, it is essential to increase the use of improved seeds and also ensure a balanced application of fertilisers on the basis of preparation of a soil fertility map of the state. In the use of seeds, the coverage of improved variety of seeds in the state for paddy, the most important crop, has gone up to an average of 83 per cent in 2006-07. On the basis of existing trends, the target for coverage in the Eleventh Plan period has been fixed at 99 per cent for paddy and for all crops, at an average of 95 per cent. The Seed Replacement Ratio (SRR) of our state in 2006-07 has been 28 per cent, which is much higher than the all-India average of about 15 per cent and the SRR in the state has been targeted to increase to 30 per cent in 2007-08 and further towards its optimum level during the Eleventh Plan period. In the application of fertilisers, for ensuring steady returns, instead of diminishing returns, an emphasis has been placed on a balanced use of chemical, organic and bio-fertilisers. For this purpose, in the year 2006-07, steps have been taken to use, along with chemical fertilisers (14.94 lakh MT), enhanced quantities of organic fertilisers (137.29 lakh MT) and also bio-fertilisers (452.40 lakh MT). The targets for application of these fertilisers have been fixed at the end of Eleventh Plan at 23.50 lakh MT, 220 lakh MT and 3,700 MT respectively. It may be mentioned that application of NPK fertilisers in the state is in the ratio of 2.3:1.3:1 which is now considered to be the best in the country. The cropping intensity in the state has also steadily increased to reach the level of 182 in 2006-07, which is much higher than the all-India average of about 138. During the Eleventh Plan period, the cropping intensity in the state has been targeted to be raised to 200. In collaboration with the National Bureau of Soil Science and Land Use Survey, the state department of agriculture has also taken the work of fertility mapping of the soil of the state.

In our state, the total production of rice, despite the adverse effects of floods, has been estimated to reach 144 lakh MT in 2006-07 which is higher than the requirement of the state (presently 139.6 lakh MT), and West Bengal occupies the first position among the states in the production of rice. Moreover, the production of potatoes is also estimated to reach 77 lakh MT which is again much higher than the requirement of the state (43.4 lakh MT), and in this regard, West Bengal’s position is second among the states. In addition, the total production of vegetables is estimated to increase to 125 lakh MT which is substantially higher than the state’s requirement (86.7 lakh MT), and in this case also, West Bengal occupies the highest position among the states. However, it is also necessary to mention that there are deficits in the production of wheat, oilseeds and pulses in the state.

In order, therefore, to strengthen self-sufficiency in the production of foodgrains, and to reduce the deficit in the production of important crops, it has been decided to increase the production of foodgrains from 169.62 lakh MT in 2006-07 steadily to reach 183.04 lakh MT at the end of Eleventh Plan, surpassing the state’s foodgrains requirement as mentioned earlier. Regarding the other crops, a special priority has been assigned to enhance the production level, so that at least 60 per cent of the state’s requirement of wheat, oilseeds and pulses can be met from the state’s production at the end of Eleventh Plan.

In order to achieve these targets, it will be specially desirable to attain self-sufficiency in the production of improved seeds as well. After attaining self-sufficiency in seed production for paddy and oilseeds, it is now important to reach such self-sufficiency in the seed production of other major crops (particularly, for potato and wheat). To this end, after remaining careful about preserving bio-diversity of the state, it has been decided that on the basis of breeder and foundation seeds, and in coordination with the state agricultural university, the state agricultural research centres, the state agricultural farms, and the Comprehensive Area Development Projects (CADP), farmers and also the self-help groups of women under each block will be encouraged by involving the extension workers and the panchayats to expand production of certified seeds. To this end, vacant posts of extension workers of agriculture department are being filled up in a planned manner. At the same time, massive improvement in the infrastructure of state agricultural university, the state’s agricultural research centres, agricultural farms and CADPs will be necessary. It is urged that sharing of cost by the central government in the proportion of 75 (centre): 25 (state) be considered for purposes of this infrastructural development and improved inputs programme for enhancing the productivity of agriculture. It may also be noted that although West Bengal is the second largest producer of potatoes in the country, yet there is no sub-station of Central Potato Research Institute (CPRI) be set up in the state at the earliest.

As a part of crop-diversification programme (along with ensuring food security), steps have been taken to enhance production of horticultural crops (particularly apple, litchi, mango and vegetables) and also floriculture. Keeping in view the high level of production in these areas of horticulture, and the possibility of exports after meeting the state’s requirement, initiatives have been taken to set up special export zones for these crops.

FISHERY, ANIMAL RESOURCE DEVELOPMENT AND FORESTRY

In the sphere of fisheries, with the objective of enhancing production and employment generation, the department of fisheries, in coordination with the panchayats, has taken initiative for reclamation of water bodies, increasing water areas, use of improved seeds, training of fishermen and development of infrastructure. As a result of these steps, the total production of fish in the state has been estimated to reach 13.59 lakh MT in 2006-07, which is more than the state’s requirement of fish (12.99 lakh MT). On the basis of this trend in production, the target for enhanced total fish production has been fixed at 15.58 lakh MT at the end-year of Eleventh Plan. With this increase in production, efforts will also be made, in the interest of generation of employment and income, to export a part of the fish production after adequately meeting the internal requirement of the state.

The main objective in the sphere of animal resource development has once again been to increase employment generation and reduce the state’s deficit in the production of milk, egg and meat. To this end, particularly in milk production, along with improvement in infrastructure, a new initiative has been undertaken in recent years to train the unemployed youth in rural areas for assisting rural people in artificial insemination and health care of animals. As a result of these initiatives, the total milk production in the state has been estimated to reach 40 lakh MT in 2006-07, and is targeted to increase to 44.25 lakh MT at the end of Eleventh Plan which would be nearly 75 per cent of the state’s requirement. A similar approach has been adopted in the production of eggs and meat as well.

In the sector of forestry, as a result of involving the local people – through the panchayats – in social forestry and forest protection, the forest cover as a proportion of the total area of the state has increased from 14.97 in 1991 to 15.68 in 2006. If tree-cover is added, then the total forest and tree-cover as a proportion of the total area of the state would reach 27 per cent in 2006 which exceeds the national-level target of 25 per cent, set for the year 2006. On the basis of this experience, and augmentation of infrastructural facilities, this proportion of forest and tree-cover in the state has been targeted to increase steadily to 33 per cent at the end of Eleventh Plan period.

For achieving all these targets in fishery, animal resource development and forestry, there is again a need for appropriate sharing of costs for relevant infrastructural development between the centre and the state in the proportion of 75 (centre): 25 (state).

CREDIT FACILITIES

The annual requirement of credit for agriculture and allied activities in the state, consistent with the targets of production and employment generation, has been assessed to be at least Rs 10,000 crore. However, the actual credit disbursement by the nationalised commercial banks, RRBs and cooperative banks has been only about Rs 3,720 crore in 2006-07. Considering the significance of growth of agriculture and allied activities the target for credit disbursement in 2007-08 has been fixed at Rs 5,000 crore, with at least 50 per cent of this disbursement earmarked for the small and marginal farmers, and for coverage of one lakh of beneficiaries of land distribution and one lakh of recorded sharecroppers at a low rate of interest (of 4 per cent). However, at the end of Eleventh Plan period, it is essential that for keeping pace with targeted agricultural expansion as well as to compensate for the existing credit gap, the credit disbursement from the organised banking sector should cross Rs 10,000 crore and reach at least Rs 15,000 crore with prioritised earmarking for the small and marginal farmers as well as beneficiaries of land reforms.

In order to achieve these objectives, it is essential to have universal coverage of banking facilities of nationalised commercial banks, RRBs and the cooperative banking sector within the Eleventh Plan period. A specially targeted OTS facility for the small and marginal farmers and full extension of KCC facility will be essential for the purpose. At the same time, universal coverage of cooperative membership should be aimed at, and implementation of the Vaidyanathan committee recommendations on cooperative banking structure should be implemented with clearance of formalities without any further delay. Along with these efforts at extension of credit facilities of the organised baking sector, it would also be essential to ensure 100 per cent coverage of farmers under crop insurance scheme against natural calamities over the Eleventh Plan period.

MARKETING FACILITIES

In order to ensure increase in the income of the common farmers along with increase in production and employment generation in agriculture, it is important to provide improved marketing infrastructure (godown, cold storage, market yard etc.) to which common farmers can have access, and at the same it is essential to ensure remunerative prices for their produce as well.

For developing the marketing infrastructure, we assign a special emphasis on the cooperative structure including the role of self-help groups. We are prepared to amend the state AOMC Act in an appropriate manner, without however allowing for contract farming.

For ensuring a sustained growth of foodgrains, it is essential to ensure remunerative foodgrains price for the farmers. To this end, minimum support price (MSP) for foodgrains, particularly for paddy/rice need to be properly accommodative. Keeping these needs in view in our state in the case of rice, the state government, the Food Corporation of India and the cooperative societies have drawn up a joint programme in coordination with the panchayats so that the paddy produced by the farmers can be procured from them by the self-help groups of local women at a remunerative price, converted to rice and then supplied to the consumers through the Public Distribution System and for other social programmes. However, this entire programme is now facing an obstacle because, unlike in the previous procurement year, distribution cost has not yet been allowed by the government of India in the current procurement year. If this correction is made, and distribution cost is included as a part of economic cost, then an innovative and decentralised programme of procurement and public distribution can be adequately carried out in this state which will not only ensure remunerative price for the farmers for foodgrains (paddy) production, but will also ensure additional employment and income generation for the self-help groups of poorer women in an extensive manner.

FINANCIAL ISSUES AND ACHIEVEMENT OF TARGETS

As per suggestion of the ministry of agriculture & cooperation, government of India, an investment proposal has been prepared for enhancing the foodgrains production as well as the total production in agriculture. To this end, the total requirement of fund for development of infrastructure in agricultural spheres as well as augmentation of facilities of irrigation (minor, medium and major) has been assessed at Rs 12,768.73 crore over the Eleventh Plan period.

On the basis of existing resource availability, however, the plan for agriculture and allied activities as well as for irrigation and flood control has been curtailed at Rs 3,384.35 crore over the Eleventh Plan period.

It may be carefully noted after necessary correction of data in Table 2.1 of the NDC Sub-Committee Report that due to the alternative approach to agricultural policy followed in West Bengal, with its basis on land reforms as well as on provision of non-land inputs by involving the people through the panchayats, the compound rate of growth of foodgrains production has, unlike in other states, actually increased from 2.50 per cent in the period from 1990-91 to 1999-2000 to 2.80 per cent in the period from 2000-01 to 2004-05, and that growth of productivity of foodgrains also has increased from 2.02 per cent to 2.13 per cent over this period.

Similarly, regarding the compound annual growth rate from Net State Domestic Product from agriculture, the rate of growth of agriculture in West Bengal has increased from 4.99 per cent in the period from 1980-81 to 1989-90, to 5.37 per cent in the period from 1990-91 to 1999-2000, and then fallen to 2.88 per cent in the period from 2000-2001 to 2004-05. However, if adverse effects of severe flood damage are removed, then even for the period from 2000-01 to 2004-05, the rate of growth of Net State Domestic Product for agriculture will reach nearly 3 per cent.

In this situation if the investment need for the state is not curtailed but adequately provided for with appropriate sharing between the centre and the state in a manner indicated in earlier sections, then it is indeed possible to increase the rate of growth of agricultural SDP to 4 per cent per annum during the Eleventh Plan period, with the targeted growth of foodgrains production and employment generation fully achieved.

In formulating this agricultural plan for the state, it is essential to start not only from the level of each district, but also from each block of the districts. At the level of each block – on the basis of interaction on overall priorities of agricultural production at the open meetings with the local farmers by involving the panchayats at the village levels – a block agricultural plan can be formulated by integrating resource flows at the block level from each department of the state government, central funds as well as the block level credit plans of the banks. These block plans can then be integrated at the district level to formulate the District Agricultural Plans, which will finally be integrated into the State Agricultural Plan. After this formulation of the agricultural plan from the grassroots level, it will also be implemented by involving the departments as well as the local farmers and common people through the panchayats at the same basic level.

With such an approach to agricultural plan, due to its inclusiveness on the basis of land reforms and support of non-land inputs as well as decentralised participatory formulation, it will not be a technocratic plan on paper, but a plan to which the common farmers can relate – a plan which will be their plan for agricultural development. (Concluded)