News Wrap
AGD
The cost of production of
paddy and wheat have risen
faster than the rise in Minimum Support Price (MSP) in India, since 2010-11. The margin of profit for production of paddy is now 8.5%, compared to 34.77% (2010-11), and the margin of profit for production of wheat is now 13.95% compared to 33.17% (2010-11). Earlier the Swaminathan Committee had suggested that the MSP should be 50% above the cost of production. Farmers remain in debt trap continuously, which leads to a demand for loan waivers. The Comptroller and Auditor General have found that nearly 34 lac eligible farmers stand denied their right for debt waiver, and more than 24 lac beneficiaries have benefited through a massive scam. Even though the CAG has checked only 90,000 accounts out of 3.5 crore accounts, the CAG has found that 13% of eligible farmers were not considered by the lending institutions and 8.5% of ineligible beneficiaries got undue windfall profit. The Agricultural Debt Waiver and Deb Relief Scheme was launched in May 2008, aiming to waive agricultural loans between April 1997 to March 2007. The percentage of exclusion and inclusion of beneficiary farmers points to an estimated Rs 10,000 crore scam. 60% of small and marginal farmers take loans from private money-lenders.
Coal Mining in Burdwan
The Moira Madhujore coal block, in West Bengal’s Burdwan district, has estimated reserves of 680 million tons of coal. Simultaneous mining of coal could jeopardise West Bengal’s planned construction of an airport city in Burdwan district. The planned airport city at Andal will block coal reserves of nearly five billion tons. Underground coal mining will render vulnerable the surface construction of the airport city, due to soil imbalances. Problems might occur as three major coal seams are to be developed, below the air strip hangars and associated townships. There will be ground vibrations during landing and taking off aircraft. But no consideration has been made on designing of the pillars of the projected coal mine. The Bengal Aerotropolis Projects Ltd and its partner the Singapore Changhi Airport International maintains that coal extraction would be only below the township, and not below the airstrip or hangars.
West Bengal Budget
The Trinamool Congress Government of West Bengal in its maiden budget (2013-14) increases taxes in a major way. The net revenue deficit has increased significantly to Rs 13,108 crore in the revised estimates for 2012-13, against the projection of Rs 6858 crore for budget estimates 2012-13. The net revenue deficit for 2013-14 is projected to be limited at Rs 3488 crore. Reforms in tax collection will lead to marginal rise in the tax collection target to Rs 32,000 crore, against the budget estimate of Rs 31,222 crore for 2012-13. Revenue is expected to grow by 24% in 2013-14, rising to Rs 39,783 crore. Rs 25,000 crore will exit the treasury, as cut off by the Reserve Bank of India, to service the huge debt of Rs 2 lac crore, accumulated over the previous years. The lower value added tax has been raised from 4% to 5%, while the upper rate of VAT has been increased from 13.50% to 14.50%. The VAT on tobacco related products and cigarettes has increased from 20% to 25%. The ratio of tax to Gross State Domestic Product (GSDP) has crossed 5% for the first time in fifteen years. There are strong possibilities of tax leakages off setting the benefits of tax reforms. Besides fears of inflation, the budget has no allocations for the Darjeeling hills, and the backward areas Paschimanchal development.
Armed Exit
NATO troops and supplies are scheduled to leave Afghanistan by end 2014. After more than eleven years of combat in Afghanistan, Britain has about 6500 container loads of hardware, as well as 2600 vehicles that must be repatriated. Britain will sell military hardware to the authoritarian regime in Uzbekistan, in exchange for safe passage, for the thousands of vehicles and containers, that are to be brought back to Britain from Afghanistan. An agreement has been reached between Britain and the central Asian Uzbekistan to permit the transport of massive quantities of military equipment by roads and railways. While some military kit will be destroyed or left to the Afghan security forces, under the deal, Britain could sell armoured vehicles, helping to boost Uzbekistan’s security at its border with Afghanistan. USA and Germany are also keen to trade with the Uzbeks. Routes through Pakistan are also available. The 50-member International Security Assistance will be wound up at the end of next year. There is already a struggle on existing roads, which are coping with heavy traffic.
Meanwhile, President Karzai of Afghanistan has ordered all US special forces out of Wardak province, bordering Kabul, amid allegations that Afghans working with them are involved in murder and torture. Many parts of the province are controlled by the Taliban, who use it as a base to infiltrate insurgents into Kabul. For several months, there were complaints about US-sponsored militias in Wardak. Recently militias cut off a student’s throat, and abducted nine people. Wardak is considered strategically important to NATO. There have been frequent complaints about the rural Afghan militias formed by NATO. As most of the places are insecure or controlled by the insurgents, much of Wardak province is off-limits.
Organic Agriculture in Bhutan
Bhutan is carbon neutral and food secure. More than 95% of the population have clean water and electricity. 80% of the country is forested. Blessed with rivers, Bhutan has the potential of over thirty thousand megawatts of electricity, of which only two thousands megawatts have been exploited so far. Now Bhutan is steadily becoming the first country in the world, to turn its agriculture completely organic, banning the sales of pesticides and herbicides. More reliance is being placed on animals and farm waste for fertilizers. In the mountain terrain, chemicals do not stay in one spot, but impact water and plants. Most of the farm practices in the Buddhist country are traditional farming, which is largely organic. Organic farming is being introduced region by region, and crop by crop. Techniques like ‘‘sustainable root intensification’’ (SRI) are being adopted by the small holders. The amount of water that crops need and the age at which seedlings are planted are being carefully regulated. Amount of irrigated land is being increased, and traditional varieties of crops are cultivated, which do not require inputs, and have pest resistance. However, chemicals are still being used, to cope with exceptionally warm and erratic weather. Young people are migrating to India and other countries, and are reluctant to live just by farming. There is a population explosion; and pressures for consumerism and cultural change are building up.
Frontier
Vol. 45, No. 41, Apr 21- -27, 2013
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