News Wrap
AGD
There has been an increase
in the fragmentation of farm land
in India, over the last five years. Small farm holdings (less than four acres) have risen further between 2005-06, and 2010-11. 85% of farmers claimed in 2010-11 to be cultivating areas of less than four hectares, in size, compared to 83.2% in 2005-06. The small and fragmented holdings have increased from 41% to 44%. The Union Government’s latest Agricultural Census (2010-11) points to the proportion of medium and large land holders, that is those owning more than 10 hectares, falling from 5.78% (2005-06) to 4.90% (2010-11). Even then, the high GDP growth and alternative employment avenues created in industry, construction and various other services in the last five to six years, have not diverted any substantial number of people, away from farms. The increased fragmentation of farm holdings is attributable to natural population growth, as well as inadequate rise in off-farm employment opportunities. Farmers fail to reap economies of scale and invest in mechanization, due to increased fragmentation of holdings.
Dwindling land revenue
Much of land speculation in India is a result of expropriating land at low prices just before it shoots up in value, because of a new railroad, a highway or industrialization. Land value increases from the conversion from low value uses to high value uses, like the conversion of agricultural land for residential or commercial purposes. In 2010-11, the states collected Rs 7000 crore in land revenue and agricultural tax, which is merely 0.5% of the agricultural income. Property tax revenues in the 36 largest cities in India are around Rs 4522 crore, yielding per capita revenue of Rs 486 with large inter-city variations. The all India collection of properly tax varies from Rs 6724 crore to Rs 9424 crore. At the high end, it amounts to just 6% of the gross rental value of urban dwellings. The rates are low relative to the cost of municipal services. The count of properties is far from reliable. The tax base is limited and the collection efficiency is low. Only 63% of assessed properties are actually paying taxes. The stamp duty raised Rs 3600 crore for the states in 2010-11. There is gross under declaration of sales value of property.
Clashes over land
In 2009, at Dubrajpur (Birbhum District of West Bengal), EMTA, a mining company entered into a joint venture with the Damodar Valley Corporation for supply of coal to its plant. The company acquired 200 acres of government land and 500 acres of private land, where it was slated to acquire 3500 acres of land. Loba has a TMC backed panchayat, and the surrounding villages fall within the 3500 acres area. On 06 Nov 2012, thousands of villagers who were protesting against land acquisition by the private coal mining company, attacked the police forces in Dubrajpur, about 200 km from Kolkata. The villagers were armed with bows and arrows and crude bombs. Over 27 policemen are reported to have sustained injuries. The state authorities denied police firing; and the hospital authorities also denied any bullet injuries. Fifteen villagers were injured in the clashes. Nine police vehicles were torched. A year earlier, the company had brought in some earth-moving equipment to begin work. The villagers alleged inadequate compensation, and launched the Save Agricultural Land Committee, supported by a TMC faction. They did not allow any work to be conducted. The trouble in Nov 2012 erupted when a large police contingent raided Loba village to recover an earth moving machinery, belonging to the mining company, which the villagers had taken away to press their demand, for adequate compensation for land, already parted with for the open cast mine. Three years ago the mining company had provided Rs 4 lacs per acre for river bank land, Rs 8 lac per acre for one-crop farmland, and Rs 10 lac per acre for multi-crop farm land.
More than a decade ago the Left Front Government of West Bengal had acquired about 7500 acres of land, across 40 villagers in Rajarhat (North 24 Parganas district). An information technology special economic zone is to be set up in Patharghata village, in New Town. Rajarhat abounds in poor administrative planning, political strife and an impromptu land acquisition drive. The modern township has vast open fields, which are also some of the largest grazing grounds in Kolkata. Most of the villagers allege they lost their farmlands to the government, as most of the land was acquired without informing the owners. The government even bulldozed houses to acquire the land. The compensation paid was meagre. Land in New Town was acquired for Rs 3 lac an acre, almost half the market price of Rs 6 lac an acre, in 2002. Formerly Rajarhat had fertile arable land, with crops grown three times a year. It was also famous for its vast mango orchards. Farmers were obtaining good returns. Now they are deprived of water at subsidized rates from river-lifting irrigation schemes, as the government installed water pump sets have since been removed. With income declining, farmers are working as contract labour in housekeeping and security jobs. Those from whom land was acquired in 2012, for erecting Rabindra Tirtha, a cultural centre in New Town, have not been paid any compensation as yet. Development of Rajarhat township, had led to over one lac farmers losing jobs. The development of the fourth phase of Rajarhat township has been called off, due to the stiff resistance to land acquisition. The West Bengal Housing Infrastructure Development Corporation has relaunched competitive bidding for a 25 acre plot in New Town–Rajarhat, for installing a financial hub.
North Korea Still Poor
Sanctions from western countries over nuclear weapons expansion, famine and mismanagement have rendered North Korea’s economy worse off, than what it was twenty years ago. The 14-square kilometre Hwangumphyong island is one of the four economic zones that were set up to attract Chinese capital and manufacturing industries. On the Yalu river, across from the bristling Chinese border city of Dandong, it is one of the few areas where North Korean citizens are allowed contact with the outside world. With unstable North Korean policies and instances of Chinese businessmen being driven out, the Chinese investors are showing little interest for North Korea. Sweeping economic changes are not forthcoming, as the North Korean leadership is terrified of reforms, which could weaken its iron grip on the state. While the capital Pyongyang boasts of theme parks and luxury hotels, one-third of children in North Korea suffer from malnutrition.
Frontier
Vol. 45, No. 27, 13-19, 2013
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