Under Mamata, Bengal’s becoming a favourite investment address again – Dr Amit Mitra Interview

Edited excerpts of Dr Amit Mitra’s interview with Economic Times (published on August 30, 2016)

 

What’s the mood among industrialists?

Everybody I met today, including private equity firms, multinational corporations, acknowledge the change that has happened in West Bengal. The growth of gross value added (GVA) in 2014-15 has been a little over 10% when India’s growth has been 7.3%.

1

Tell us what happened in the financial year 2015-16?

We are perhaps looking at GVA growth of as much as 12%, when India has been growing at least 3 to 4 percentage points less. In 2010-11, our state’s nominal GDP was Rs 4,61,000 crore. In 2014-15, it has doubled to Rs 8,00,000 crore, and in 2015-16, our revised figures are Rs 9,39,000 crore.

 

How did this happen? What were the drivers?

There are three major drivers. The first is the government expenditure which translates into Keynesian multiplier. During 2010-11(the last year of the communist government), West Bengal’s planned expenditure was little over Rs 14,650 crore. The actual planned expenditure in 2014-15, (under Trinamool) had touched Rs 39,893 crore. In 2015-16, it is Rs 54,000 crore. So from Rs 14,000 crore to Rs 54,000 crore – it is quite a jump.

 

What’s it spent on?

Capital expenditure within planned expenditure, which is asset creation, was a negative 26% in 2010-11 under the communist regime. We reversed it. It is actually six times of what it was in four years. What it simply means to me as an economist is that Keynesian multiplier on asset creating expenditure, which means cement, steel — the whole down-the-chain industry which creates Keynesian multiplier is approximately 4 times in India. One of the factors that’s debated in the West is when private expenditure is slow, public expenditure can trigger private investment.

One element of this is private expenditure and it gets attracted once they see GDP growth taking place in a stimulated economy and the dipstick tests show there’s a lot of energy in the economy. So, these numbers — of planned expenditure and capital expenditure — are the triggers. Whereas in communist rule, capital expenditure was at a negative 26% during their last year, and it was shrinking. Planned expenditure was a puny Rs 14,000 crore. A climb to Rs 54,000 crore in five years – this has never happened in any state to my knowledge. And no one knows about it.

 

Isn’t there a flipside to the public expenditure? The looming debt trap which West Bengal is facing, which Mamata Banerjee herself termed as a death trap…

The debt is phenomenal — the debt left behind by the communist government was Rs 2,00,000 crore. Its bonds or small savings matured, I’m not talking about interest. I’m talking just about repayment of principal amount. In five years, we repaid Rs 42,000 crore, which is all from the Rs 2,00,000 crore left behind by the CPI(M). What we have borrowed has not come back to maturity.

These are all 10-year debt which we repaid. The total amount we have borrowed during our regime is Rs 1,13,000 crore of which Rs 94,000 crore is for repayment and interest of that Rs 2,00,000 crore. Imagine, my last year’s repayment and interest was Rs 28,000 crore. This year, it is about Rs 33,000 crore. And the coming years when they borrowed the most in 2007-08, those bonds will come to haunt us.

 

Are your new borrowings at a lower cost?

At a much lower cost as we have borrowed from the market. We have borrowed at a much lower rate. At least 200 points difference. Having said so, our debt GDP ratio has come down.

 

How come?

Because GDP has grown phenomenally. So, while there’s no question that we are in a debt trap because we are essentially borrowing. Just Imagine, we have borrowed .Rs 1,13,000 crore of which Rs 94,000 crore has gone towards repayment and interest. We have thus borrowed for development about Rs 18,000 to Rs 19,000 crore in five years. So we haven’t borrowed much at all.

 

How did you fund the growth in GDP that you mentioned earlier?

Taxes have exactly doubled.

 

How did you manage to do that?

Tax collections went up from Rs 21,000 crore to almost Rs 43,000 crore in four years in our regime. We have implemented the largest e-taxation drive by any state in India during the period, and the central government has given us the highest award for that.

 

How does this e-taxation work?

Every part of the tax can only function transparently through the computer. For example, VAT registration and digitised signature cannot be done in paper. It has to be done compulsorily online. What did the government give you back? Dematerialised VAT certificate with digitised signature. Then the ease of doing business in the state.

Businessmen were complaining that they paid VAT and should be able to seek refund, but they don’t get it. So I said we’ll give you 90% of what you self-declare. Then I got information that some officer arrives at their offices — you know what that means. I’m perhaps the only finance minister in India who said on the floor of the house after consulting with the chief minister that no officer shall go to a dealer’s office without an official letter from the commissioner. Within three months, the loophole got plugged, and now it’s a perfect system.

GDP of Bengal has more than doubled in five years: WB CM

West Bengal Chief Minister in her Facebook page informed that the Gross Domestic Product (GDP) of West Bengal has more than doubled from nearly Rs.4.61 Lakh Crore in 2010-11 to Rs.9.20 Lakh Crore in 2015-16.

This quantum jump has been possible, partly due to massive increase in plan expenditure and partly due to huge creation of permanent assets in the state through increased capital expenditure.

The plan expenditure in the state has increased by nearly 4 times from Rs.14,615 Crore in 2010-11 to Rs.54,069 Crore in 2015-16 and capital expenditure has increased by nearly 7 times from Rs.2225 Crore in 2010-11 to Rs.15,946 Crore in 2015-16.

Our commitment is to take Bengal to the No.1 position in the country and my entire “Paschimbanga Paribar” is fully dedicated to this task, the West Bengal Chief minister said.

 

পাঁচ বছরে রাজ্যের আয় বেড়ে দ্বিগুণ হয়েছে: মুখ্যমন্ত্রী

পাঁচ বছরে রাজ্যের মোট উৎপাদন বৃদ্ধি পেয়ে দ্বিগুণ হল৷ মুখ্যমন্ত্রী মমতা বন্দ্যোপাধ্যায় তার ফেসবুক পেজে জানিয়েছেন, ২০১০-১১ সালে বাম জমানার শেষের দিকে রাজ্যের মোট অভ্যন্তরীণ উৎপাদন বা জিডিপি ছিল প্রায় ৪.৬১ লক্ষ কোটি টাকা৷ ২০১৫-১৬ আর্থিক বছরের বর্তমান সময়ের তথ্য অনুযায়ী পশ্চিমবঙ্গের ক্ষেত্রে জিডিপি-র পরিমাণ হয়েছে প্রায় ৯.২০ লক্ষ কোটি টাকা৷

গত ২০১০-১১ সালে রাজ্যে পরিকল্পনাখাতে খরচ হয়েছিল প্রায় ১৪ হাজার ৬১৫ কোটি টাকা৷ ২০১৫-১৬ সালে এই খরচ চারগুণ হয়েছে৷ ২০১৫-১৬ সালে পরিকল্পনাখাতে খরচ হয়েছে প্রায় ৫৪ হাজার ৬৯ কোটি টাকা৷ ২০১৬-১৭ অর্থবর্ষের জন্য অবশ্য এই খাতে আরও প্রায় আড়াই হাজার কোটি টাকা বাড়তি ধরা হয়েছে৷

অন্যদিকে, মূলধনীখাতে বরাদ্দ ওই পাঁচ বছরে প্রায় সাতগুণ হয়েছে৷ বাম জমানার শেষ আর্থিক বছরে রাজ্যে মূলধনীখাতে বরাদ্দ পরিমাণ ছিল প্রায় ২,২২৫ কোটি টাকা৷ শেষ হওয়া অর্থবর্ষেই সেই পরিমাণ হয়েছে প্রায় ১৫ হাজার ৯৪৬ কোটি টাকা৷ মূলধনীখাতে এত বরাদ্দ-বৃদ্ধি নিঃসন্দেহে অন্য রাজ্যের কাছে নজিরবিহীন৷

মুখ্যমন্ত্রী বলেছেন, “দেশের মধ্যে বাংলাকে সেরা করাই আমাদের লক্ষ্য৷ দায়বদ্ধতা৷ এবং আমার পুরো ‘পশ্চিমবঙ্গ পরিবার’ এই কাজের জন্য উৎসর্গীকৃত৷এত বড়মাপের সাফল্য বা জাম্পের পিছনে অন্যতম কারণ পরিকল্পনাখাতে খরচ ব্যাপক-বৃদ্ধি৷”

 

Highlights of West Bengal Budget 2016-17

The State Finance Minister, Dr Amit Mitra placed the Interim Budget for 2016-17 today in the West Bengal Assembly. Dr Mitra had placed a vote-on-account earlier this year because of the election.

While presenting the vote-on-account in the Assembly earlier, Dr Mitra had introduced no new taxes and proposed a 17% hike in Plan outlay, amounting to Rs 57,905 crore, for financial year 2017.

Finance Minister Dr Mitra had listed the Government’s “unprecedented” allocation in the social sector, while pointing out that the debt-ridden State has received no help from the Centre in terms of debt moratorium. He added that the State, on the basis of Gross Value Added, has expanded at 12% against the national growth of 7.3%.

Dr Mitra claimed that the State had set a record in terms of expenditure in the social sector — increasing rural development budget four times, health budget three times, minority development budget five times and agricultural budget three times, and creating planned expenditure for women and child welfare.

 

LIVE BLOG of the Budget speech

Main bure halat ke tufano se ghabrata nahi/ Mujhe apne hauslo pe betahasha naaz hai

Our aim is to establish Bengal as number one among the States in every sector

Planned Expenditure for 2015-16 was Rs 53,000 crore, the highest ever

Kanyashree, Khadya Sathi, Sabuj Sathi, Fair Price Medicine Shops and e-governance are some of our achievements

Jean Drèze, the famed economist, who penned books with Amartya Sen, praised Bengal’s Khadya Sathi Scheme

Capital Expenditure in 2015-16 rose seven fold over the capital expenditure in 2010-11

GSDP has risen to Rs 9,20,083 crore

Revenue has risen from Rs 20,000 crore to Rs 42,000 crore

Fiscal deficit was 4.2% in 2010-11 and now it is 2.6%

We have a huge debt burden; yet, we have followed fiscal discipline

We spent over Rs 94,000 crore to repay the debt incurred by the Left Front

Several schemes of Bengal have been adopted as models by other States

Revenue deficit has come down to 1.03%

Institutional delivery has increased from 68 to 90%

30 lakh farmer families have received compensation after floods

There has been a five-fold increase in the disbursal of loans to Self Help Groups

Infant mortality in Bengal has come down from 32 to 27 per 1000 live births

We have sanctioned new permits for 4,000 new routes; this is unprecedented

We have registered 78,000 folk artistes under Lok Prasar Prakalpa

UN has appreciated Bengal for Nirmal Bangla Mission; four top districts in India in the cleanliness mission are from Bengal

We have focussed on the MSME sector – bank funding has increased substantially, which is now the highest in India

We have organised Bengal Global Business Summit twice, which was attended by representatives of 31 nations

A new district was created out of Alipurduar

Five police commissionerates were created

One municipality and three municipal corporations were created

West Bengal Chief Minister has conducted 127 administrative meetings across the State

Chief Minister’s brainchild – Administrative Calendar – is now a model for the rest of the country

Integrated Financial Management System was launched, which helped in the optimal use of assets

2 lakh housings for the poor were made under Geetanjali Scheme

We will do away with manual TDS certificate submission for work contracts; it will now be done online

The deadline for disposal of tax dispute cases regarding VAT reduced from 1 year to six months

Over 8,000 cases of tax disputes settled in fast-track courts; we are doing away with the Settlement Commission

Rs 200 crore allotted for Swami Vivekananda Merit-cum-Means Scholarship

732 virtual classrooms (e-classrooms) with high-speed internet to be set up at universities and colleges; 2,000 such classrooms to be set up in higher secondary schools

Rs 1,000 crore allocatted to the e-classroom project

Rs 57,905 crore allocatted for Planned Expenditure

Rs 285 crore allocatted for agricultural marketing

Social sector spending has increased 4.5 times compared to 2010-11

Infrastructure sector spending increased by 4 times

Agricultural spending increased 7 times over 2010-11

Food grain procurement increased nine-fold over 2010-11; total food grain production was 174 lakh metric tonnes

Rs 495 crore allocatted towards forest conservation

22 lakh new employment opportunities will be created this year

Over 1,000 km of roads built and renovated; this is unprecedented

100% rural electrification has been achieved under the Sobar Ghore Aalo Scheme

85 lakh man-days created under MGNREGA, with an expenditure of Rs 18,000 crore

We created the North Bengal Development Department, Tribal Welfare Department, Child Welfare Department and Sericulture Department

89 police stations, 65 women police stations, 88 fast-track courts, 51 women’s courts have been set up

Five development authorities set up for providing even better governance to the people

হবে জয়, হবে জয়,হবে জয় রে, ওহে বীর, হে নির্ভয়। হবে জয়

 

২০১৬১৭ আর্থিক বছরের বাজেটের অংশবিশেষ 

আজ বিধানসভায় ২০১৬-১৭ আর্থিক বছরের বাজেট পেশ করলেন অর্থমন্ত্রী অমিত মিত্র। নির্বাচনের কারণে তিনি এ বছরের ফেব্রুয়ারি মাসে ভোট অন অ্যাকাউণ্ট পেশ করেছিলেন।

ভোট অন অ্যাকাউণ্ট পেশ করার সময় অর্থমন্ত্রী নতুন কোন কর ঘোষণা করেননি। বরং তিনি ২০১৭ আর্থিক বর্ষে পরিকল্পনা খাতে ব্যয় ১৭ শতাংশ অর্থাৎ ৫৭.৯০৫কোটি টাকা বৃদ্ধির প্রস্তাব দিয়েছেন।

রাজ্যের ওপর বিপুল ঋণের বোঝা ও কেন্দ্র থেকে কোনরকম সাহায্য না পাওয়া সত্ত্বেও সামাজিক ক্ষেত্রে “নজিরবিহীন” বরাদ্দ তালিকাভুক্ত করেন অর্থমন্ত্রী। তিনি আরও বলেন, রাজ্য তার GVA growth (Gross Value Added growth) ১২% বৃদ্ধি করেছে, যখন দেশের ক্ষেত্রে এই বৃদ্ধির হার ৭.৩%।

ডাঃ মিত্র দাবি করেন, রাজ্য সামাজিক খাতে ব্যয়ের দিক থেকে রেকর্ড তৈরি করেছে – গ্রামোন্নয়ন বাজেট বৃদ্ধি চার বার, স্বাস্থ্য বাজেট তিনবার, সংখ্যালঘু উন্নয়ন বাজেটের পাঁচবার এবং কৃষি বাজেট ও নারী ও শিশু কল্যাণে পরিকল্পনা ব্যয় বৃদ্ধি পেয়েছে তিনবার।

তার বক্তব্যের কিছু অংশঃ 

  • ২০১৫-১৬ সালের পরিকল্পনা ব্যয় ছিল ৫৩০০০ কোটি টাকা, যা সর্বোচ্চ
  • কন্যাশ্রী, খাদ্য সাথী, সবুজ সাথী, ন্যায্য মূল্যের ওষুধের দোকান আমাদের কৃতিত্ব
  • ২০১৫-১৬ সালের পরিকল্পনা ব্যয় ২০১০-১১ সালের চেয়ে সাত গুন বৃদ্ধি পেয়েছে
  • GSDP বেড়ে হয়েছে ৯,২০,০৮৩ কোটি টাকা, রাজস্ব ২০০০০ কোটি টাকা থেকে বেড়ে হয়েছে ৪২০০০ কোটি টাকা
  • ২০১০-১১ সালে রাজস্ব ঘাটতি ছিল ৪.২% এখন তা ২.৬%
  • বিপুল ঋণের বোঝা থাকা সত্ত্বেও আমরা আর্থিক শৃঙ্খলা বজায় রেখেছি
  • ৩০ লক্ষ চাষিকে বন্যার জন্য ক্ষতিপূরণ  দেওয়া হয়েছে
  • স্বনির্ভর গোষ্ঠীর ঋণের পরিমান পাঁচগুণ বৃদ্ধি কড়া হয়েছে
  • বাংলায় শিশু মৃত্যুর হার ৩২% থেকে ২৭% এ নেমে এসেছে
  • ৭৮০০০ শিল্পী লোক প্রসার প্রকল্পের আওতায় এসেছে
  • নির্মল বাংলা মিশন ইউ এন দ্বারা প্রশংসিত, রাজ্যের ৪টি জেলা এই প্রকল্পে শীর্ষস্থানে রয়েছে
  • আমরা MSME সেক্টরে নজর দিয়েছি. ব্যাঙ্ক তহবিল যথেষ্ট বৃদ্ধি পেয়েছে, যা ভারতের সর্বোচ্চ
  • আমরা বাংলায় দুবার গ্লোবাল বিজনেস সামিট আয়োজন করেছি যেখানে ৩১টি দেশের প্রতিনিধিরা উপস্থিত ছিলেন
  • আলিপুরদুয়ার নতুন জেলা তৈরি হয়েছে, পাঁচটি নতুন পুলিশ কমিশনারেট তৈরি করা হয়েছে
  • সারা রাজ্য জুড়ে মুখ্যমন্ত্রী মোট ১২৭টি প্রশাসনিক বৈঠক করেছেন
  • একটি নতুন পৌরসভা ও তিনটি নতুন পৌর কর্পোরেশন তৈরি করা হয়েছে
  • মুখ্যমন্ত্রীর উদ্ভাবনী উদ্যোগ ‘প্রশাসনিক ক্যালেন্ডার’ দেশের বাকি রাজ্যের জন্য একটি মডেল
  • গীতাঞ্জলী প্রকল্পের অধীনে ২ লাখ গরীব মানুষের জন্য আবাসন তৈরি করা হয়েছে
  • ইন্টিগ্রেটেড আর্থিক ব্যবস্থাপনা পদ্ধতি চালু করা হয়েছে, এর মাধমে সম্পদের সদ্ব্যবহার করা সম্ভব হয়েছে
  • স্বামী বিবেকানন্দের মেরিট স্কলারশিপের জন্য ২০০ কোটি টাকা বরাদ্দ করা হয়েছে
  • বিশ্ববিদ্যালয় এবং কলেজে ৭৩২টি ভার্চুয়াল ক্লাসরুম (ই-ক্লাসরুম) হাই স্পিড ইন্টারনেট সহ স্থাপন করা হবে
  • উচ্চ প্রাথমিক বিদ্যালয়ে এই ধরনের আরও ২০০টি  ক্লাসরুম তৈরি করা হবে
  • ই-ক্লাসরুমের জন্য ১০০০ কোটি টাকা বরাদ্দ। পরিকল্পিত ব্যয়ের জন্য ৫৭.৯০৫ কোটি টাকা বরাদ্দ করা হয়েছে
  • ২০১০-১১ সালের তুলনায় সামাজিক খাতে ব্যয় ৪.৫ গুণ বেড়ে গেছে
  • পরিকাঠামো খাতে খরচ চার গুন বেড়েছে। ২০১০-১১ সালের তুলনায় ২০১৫-১৬ সালে কৃষিখাতে খরচ সাতগুন বৃদ্ধি পেয়েছে
  • বন সংরক্ষণের জন্যও ৪৯৫ কোটি টাকা বরাদ্দ করা হয়েছে
  • NREGA প্রকল্পের আওতায় ১৮০০০ কোটি টাকা ব্যয়ের সঙ্গে সঙ্গে ৮৫ লাখ শ্রমদিবস তৈরি করা হয়েছে
  • ১০০০ কিমি নতুন রাস্তা নির্মাণ ও পুনঃসংস্করণ করা হয়েছে যা নজিরবিহীন
  • ‘সবার ঘরে আলো’ প্রকল্পের অধীনে ১০০ শতাংশ বাড়িতে বিদ্যুতায়ন সম্ভব হয়েছে
  • ২০১০-১১ সালের তুলনায় এবছর খাদ্য শস্য উৎপাদন নয় গুন বেড়েছে. মোট খাদ্যশস্য উৎপাদনের পরিমান ১৭৪ লাখ মেট্রিক টন
  • আমরা উত্তরবঙ্গ উন্নয়ন বিভাগ, আদিবাসী উন্নয়ন দপ্তর, শিশু কল্যাণ দপ্তর এবং একটি রেশম দপ্তর তৈরি করেছি
  • ৮৯টি নতুন থানা, ৬৫টি মহিলা থানা, ৮৮টি ফাস্ট ট্র্যাক কোর্ট, ৫১টি মহিলা আদালত স্থাপন করা হয়েছে
  • সুশাসন ও গতিশীল পরিষেবা দেওয়ার জন্য পাঁচটি নতুন উন্নয়ন পর্ষদ স্থাপন করা হয়েছে
  • বৃত্তিকর ছাড়ের উর্দ্ধসীমা ১০০০ টাকা বৃদ্ধি করার প্রস্তাব রাখা হচ্ছে
  • শিল্প উন্নয়ন সহায়ক প্রকল্পের মেয়াদ ৩ বছর বৃদ্ধি করা হয়েছে
  • ৬৮ লাখ লোকের কর্মসংস্থানের তৈরি হয়েছে গত ৫ বছরে আরও ২ লক্ষ কর্মসংস্থান তৈরির কাজ চলছে
  • এই বছর ২২ লাখ নতুন কর্মসংস্থানের সুযোগ তৈরি করা হবে

 

 

Statistics show Bengal growing faster than other States: WB FM

West Bengal Finance and Industry Minister Dr Amit Mitra laid forth several macroeconomic statistics that highlight the current developmental progress of the State.

He was speaking at the celebration of Bengal Day at the International Trade Fair in Delhi.

Dr Mitra said that according to NSO’s reports prepared with a base of the 2004-05 GDP, in 2014-15 West Bengal has elevated herself from many of the States.

According to Central Government figures, the rate of growth of GDP in Maharashtra being 5.66%, that of Rajasthan being 5.75%, Uttar Pradesh being 6%, Telengana being 5.35%, Karnataka being 7.05% and Punjab being 5.32%, West Bengal registered a growth of 7.15%.

In case of industrial growth, West Bengal is ahead than many of the States. The rate of growth being 4.36% in Karnataka, 4.01% in Maharashtra, 2.02% in Punjab, 3% in Rajasthan and 3.64% in Tamil Nadu, Bengal has an industrial growth rate of 5.05%.

The West Bengal Finance Minister informed that the developmental growth has been made possible in spite of the loan of Rs 87,000 crores made from the market in the last four years. He also stressed on the point that Rs 82,000 crores have been spent by the State to repay loan and interest made by the past Left Government.

The State Finance Minister stated that prior to 2011, there was only 50% electrification covering the households of the state and within four years 93% households could be provided with power supply.

He also stated that for irrigation purpose, prior to 2011, 1.10 lakh electric pump sets were used, the number of which rose to 2.65 lakh by 2015. He also stated that Bengal has instituted the Integrated Financial Management System, which no other State could yet implement.

Sugata Bose speaks during discussion on the agrarian situation in the country | Transcript

Full transcript:

Agriculture is close to my heart and ought to be the focus of informed debate in our country. Since my student days, I had been working on problems facing our agrarian economy in a larger global context.

The labours of peasant smallholders, sharecropper and agricultural labourers form the bedrock of our national economy. And their well being should exercise minds of the people’s representatives and policymakers.

The agrarian situation in India, Mr Deputy Speaker Sir, in one word, is grim. Boasting a rate of high GDP growth, the economic surge acknowledges that the agricultural output has grown at a rate of just 1% last year.  The terms of trade against agriculture are clear since the year 2011.

The Finance Minister acknowledged in his Budget Speech that of the five major challenges facing India today, the first and foremost is the stress on agricultural incomes, yet his Government has shown no real commitment to address that challenge.

In replying to the debate of the Land Acquisition Bill, the Rural Development Minister said in a tone of complaint that the agricultural sector accounted for nearly 55% of employment in our country and contributed less than 15% of our GDP. While it is imperative to create non-farm employment, it was extraordinary to find a farmer’s son and grandson cast against persons of the majority of the working population in our land and wishing that peasants and agricultural labourers would not resist land grabbing by this Government’s corporate friends and allies.

We must not deny small farms. Very often, they are more efficient than large farms even though we need to address the problems of self exploitation of unpaid women’s and children’s labour on farms which are a cause for suicide by farmers.

My friend Sri Karunakarn has given some startling figures in the course of his speech. Cotton cultivators in Maharashtra or in Gujarat and sugar cultivators in Karnantaka seek subsistence via the market. They need favourable prices and credit for their cash crops in order to command access to food. Tens of millions of peasants in our country live on the borderline of life and death. They suffer from chronic malnutrition and hunger.

Now, there have been unseasonal rains that have affected crops in six northern states. But we must always remember that we are facing not a problem of nature but a problem of political economy. It is not just droughts or floods or monsoon failures that adversely affect the odds of life of our peasantry. Our British colonial masters lead by Lord Curzon used to try and pass of manmade catastrophes as acts of God but we know it in Bengal that the great famine of 1770 or 1943 were manmade famines. Great economist like Romesh Dutt always pointed out that the food supply in India as a whole has never failed but the people were so resourceless, so absolutely without any savings that if crops failed in one area they were unable to buy food from neighbouring provinces rich in harvest.

We must learn from our great economic thinkers and not from our colonial masters.

Our agricultural sector is beset with problems of reduced cultivated areas and low yields. Our primary producers are caught within the meshes of iniquitous and interlinked product and credit market. How can we turn things around?

Let me suggest some policy measures that must be taken to tackle the challenges of both agricultural production and distribution. Talk about the second green revolution in our country has been confined to the realm of rhetoric and has not been transformed into practical policy. We need more public investment in agricultural science and research as well as extension services to educate our farmers about best practices. At most about 40% of our cultivated area has no irrigation of any kind. Our focus should be on micro irrigation projects that will provide rural employment in the short run while increasing productivity in the longer term. We need environmentally sound watershed management.

In the 1980s in my own state of West Bengal the indiscriminate digging of tube wells compounded the problem of arsenic poisoning in ground water. The current Government’s Jol Dhoro Jol Bhoro programme has been more farsighted and successful. The Central Government’s Krishi Sichai Yojana should learn some lessons from Mamata Banerjee’s West Bengal.

The problem of peasant debt has two aspects. First, the peasantry needs to be freed from extortion at interest rates charged by mahajans and sahukars. Second, primary producers need access to adequate credit at right moments of the production cycle.

The Finance Minister has set an ambitious target of Rs 8.5 lakh Crore of farm credit during 2015-2016. Unfortunately, Mr Dy Speaker Sir, institutional credit from Banks hardly ever reaches small holding peasants and gets cornered by richer farmers and by agricultural corporations. Better targeting of agricultural credit is an urgent necessity.

The peasants never get a remunerative price for their produce as traders and middlemen in the agricultural market chain siphon off the profits. The solution being offered by this Government is the creation of a national agricultural market. My own considered view is that this problem should be addressed in the first instance at the local and regional levels.

Let me give the example of the rural areas of my own constituency Jadavpur to illustrate the needs and available best practices. Nearly 80% of the holdings in Baruipur, Sonarpur, Bhangar rural areas of my constituency are less than one hector in size, the cropping intensity 165%. In addition to rice approximately 20% of the cultivated area is devoted to the production of fruits and vegetable of very high quality. They are mostly sold in local markets. In Baruipur, there is only one cold storage facility with a capacity of 1200 MT, which is not sufficient to cater the needs of the peasants of the region. Moreover, even this facility is not equipped to store fresh vegetables and fruits. This one large facility needs to be upgraded with the help of central schemes to make it fit for storing fresh fruits and vegetables.

Mini cold storage units ranging from 5 MT – 30 MT needs to be set up all over the country for groups of small and marginal peasants. On a more optimistic note, let me mention one positive development in Bhangar, another rural area of my constituency. With the support of the West Bengal’s State Horticulture Department, a Bhangar Vegetable Producer’s Company Ltd has been established with a membership of 1750 marginal peasants, all owning less than one hectare of land each. This company has now a paid up capital of Rs 7.3 lakh. It is a federation of 100 small peasant interest groups. The company has improved access to inputs and finance and has enhanced productivity by promoting better agricultural practices. It has helped peasants undertake value added activities by grading, packaging at the village level and provided marketing support.

As a result, per hectare output has increased dramatically from 7500 kg to 9500 kg and average peasant’s income has risen from Rs 22000 in 140 days to Rs 88000 in 120 days.  This local example of West Bengal has much wider relevance for small and marginal peasants, all over the country.

Deputy Speaker Sir, the Railways can play an important role in agricultural marketing and I hope that Agriculture Minister and Railway Minister will discuss this matter. I have seen how small peasants come to Baruipur and Sonarpur railway stations to sell their produce. Instead of complaining about squatters on railway land, the Railways can redesign the land owned by them, near stations of B and C level towns, to revolutionise the marketing of agricultural produce of small peasants.

The Railways can address problems of overcrowding, retail, inter modal transport needs, absence of public space through affordable intelligent design and by openness to market oriented small peasants, producers from the agrarian hinterland of these small towns.

In addition to creating cold storage facilities for agricultural produce, this Government should put something else into deep cold storage for all time to come in interests of India’s kisans and Khet mazdoors.  This is the ill conceived Land Acquisition Bill that was railroaded through this Lok Sabha.

I am taking my stand on 1970 style populism that which Arun Jaitley referred to in his Budget debate. I am taking my stand on a need for a balanced and harmonious 21st century economy that guarantees a fair deal to the underprivileged in our quest for rapid growth and development. Land acquisition from our farmers in our great Democracy must be based on consent and not on coercion, on compensation, not expropriation and it must be for public purpose and not private profit.

So it is incumbent on this Government, Deputy Speaker Sir, to provide equity in both sense of the term, equity, in the sense of fairness and justice and as well as equity in the form of ownership and the stake in the land, whenever the land is taken away from our peasants.

The Government by opening bank accounts and taking away Jan Dhan in the form of agricultural land and handing it to over to corporate houses on the false pretext of public purpose genuine fairness and transparency the two words that way in the title of the Bill that was passed in this House demands nothing else.

Mr Deputy Speaker Sir, on behalf of my party let me urge this House, to rise to its full stature and make sure that the peasant and agricultural laborers and the range of service providers in rural areas be made partners and not victims in India’s development story.

Thank you very much.