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[Agri Alert-102] New Industrial Policy of Orissa Spells Doom for Agriculture.

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  • Living Farms, Bhubaneswar
    Agri Alert – 102 28.02.2007 Contents: 1.Orissa Cabinet approves new IPR policy 2. More feedback on the FDI in retail issue. Comments: The state of
    Message 1 of 1 , Mar 1, 2007
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      Moderator's comments
      Compensation has no relevance at all.WE should completely ban fertile land for conversion.Industry should be asked to develop wasteland and barren land and government should give subsidy to them for that purpose.WE should try to bring in more land under agriculture and related activities and increase productivity.India is heading for very bad times.MNCs will never ever give large employment.They cant.Neither Indian corporates.It is foolish and futile exercise.India will become importer of even basic food items very soon.WE are digging our own grave by reducing agriculture land on one hand and pressurising USA etc to wiothdraw their subsidies.Could not be more foolish act.All people should resist any such move by this brainless and corruput politicians-bureaucrat nexus.
      Agri Alert – 102   28.02.2007
      1.Orissa Cabinet approves new IPR policy
      2. More feedback on the FDI in retail issue.
      The state of agriculture in the country today and the Govt's response to the crisis is fuelling speculation that the ulterior motive is to force farmers to abandon their fields paving way for industrialization and contract farming. In Orissa the State Govt has recently declared that one crop land will be considered for SEZs.
       One crop land (eka fasalia  jami) constitutes 70% of the State's agricultural land. Most of the rural population depends on it either as landlords, tillers, or persons benefiting indirectly from the produce of the land. While the Govt talks of giving peanuts as compensation to the landowners the other beneficiaries are left high and dry. The entire population looses its economic and food security, livelihood, ancestral property and its cultural identity. They also loose access to forests, grazing land, rivers, canals, streams and lakes on which they depended for non farm produce as well as for building material, fodder and fuel.  
       The new Industrial Policy Resolution (IPR) of the Govt of Orissa confirms fears that Orissa will soon loose its status as an agricultural state. Not only is the Govt usurping land in the name of promoting SEZs, corporates are taking huge chunks of land from farmers on lease to produce non food commercial crop like Jatropha. Rapid urbanization  has already reduced 5 lakh hectares from land under agriculture in the last  decade. The Govt's present decision to give more sops to small and medium scale industries by granting tax and fees relief will only add to the woes of the farmers.
      A lot of questions have to be answered.What are the pros and cons being considered here? What does the Govt hope to benefit from the whole exercise? What is the ultimate goal? How much of this is based on ground realities and how much on WTO instructions? Taking land away from thousands of small holders and giving it to a few powerful entities, how far is this action justified? What will be the fate of the people displaced?
      Kindly continue to send your valuable feedback, comments, suggestions as well as articles to livingfarms(at)gmail.com.
      Pioneer News Service | Bhubaneswar
      Orissa Cabinet approves new IPR policy
      (The Pioneer, Wednesday, February 28, 2007)
      In order to attract small and medium scale investors to Orissa, the State Government has taken a slew of measures. In this regard, the State Cabinet on Tuesday approved the new Industrial Policy Resolution (IPR), to liberalise the One Time Settlement Scheme (OTS) and set up new laws to assess the performance of the Government employees. Instead of Confidential Character Report (CCR), the Government will issue Performance Appraisal Report (PFR) to the employees to give them the timely promotion. However, CCR would be applicable in pending cases.
      As per the policy, the State has identified agro-processing, automobile and auto components, textile and apparel, ancillary and down stream industries under the thrust group.

      They would be asked to stress on generation of employment. All the companies under the sector would be given tax concessions and other benefits. However, they have to inform the State Government about their minimum capital investment and employment opportunity. They will get tax relief for a period of seven years.

      The State Government would also push for petroleum products , petrochemical industries, pharmaceutical and leather industries.

      For KBK and three other backward districts like Mayurbhanj, Kandhamal and Gajapati, the State Cabinet has approved a number of steps to encourage industrialisation in these areas.

      Those industrialists who take up non-mining activities in these areas, would get the status of Thrust Industries and would be provided with all sort of tax benefits.

      For infrastructure development, the State Government would set up the Industrial and Allied Infrastructure Development Fund. Rs 100 crore would be deposited as corpus fund. It will provide funds to different projects which would be taken up on a PPT basis.

      The State Government has decided to bring few reforms in the allocation of lands to industrialists. Allotment of lands would be divided under four categories. Small and Medium Sector Industries would be given some relaxation in the deposit of fees towards conversion charges. Generally, the conversion charges is collected for conversion of agricultural land to that of the non-agricultural purposes. It has made some classification in this context. Similarly, in the case of collection of stamp duties, the State Government has announced few relaxation..

      It has made provision for 100 per cent exemption of entry taxes, relaxation in the collection of Central sales taxes and some modification under VAT. It has made some provision to provide some subsidy under the PMRY and REGP programme.

      One Time Settlement Scheme has been liberalised and people would be encouraged to pay their outstanding loans which they have taken from the Orissa State Finance Corporation. A minimum 5 per cent and a maximum 13 per cent tax would be collected towards the outstanding loans.

      In yet another major decision, the State Government has decided to appoint Anganwadi workers as supervisors. Preference would be given to seniority.

      The State Government has also decided to exempt Acharya Hari Hara Cancer Research Institute from paying the annual ground rate and cess.
      Feedback:Re:[Agri Alert-98] FDI in Retail: What are the implications?
      1. Prof Rajendra Gupta.
      I would like to point out how Super Marts and retail chains take toll of indian economy:

      1.Bulk purchases from farms will put commission agents,.brokers etc out of job.Farmers will be paid peanuts due to sheer financial muscle of big chains

      2.Most of mom and pop stores and other small set ups will disappear as consumers will be induced to visit these stores as happening in metros already.In US too lot of neighborhood stores have been affected. In Mumbai for example many shop keepers have leased out their premisis to the upcoming retail store chains for a few thousands more money per month.They are now looking for other avenues of jobs.

      3.The overheads of these stores will be terrific.It is doubtful in India they will maintain standards too being managed by Indians(Basically dirty and greedy people)like sanitation, running of air conditioner(NO cinema hall in cities runs air conditioning despite increase of tickets from Rs 25 to 95 ans 150 in last 6 years)

      4.Hefty salaries are being offered to even starter shoplfloor executives thus putting heavy salaries burden on consumers.

      5.After throwing out the small stores and millions of people from small business jobs, these will squeeze both the customers and suppliers( See how Wal Mart etc crush companies like P&G. At least Wal Mart etc are under heavy public scanner and behave .In India regulations and consumer movement is virtually nil with rampantly corrupt and ineffective judiciary and bureaucracy) The Indian Government should  be advised to pronounce a clear cut retailing policy and take care of small businesses and employment.There has to be careful and preplanned scope for retail chains, Indian or foreign does not matter,for controlled growth and not exploiting both manufacturer's and consumers I can forecast that after a decade 80 % of Indian consumer market in A class and metro cities will be handled by these chains and consumers will be heavily exploited by unreasonable margins due to their monopoly.

      The politicians and bureaucrats should come on ground and appreciate that facts of life.I have worked as senior executive in Indian corporate sector for long time and have handled public relations, government liaison, projects and new ventures and thoroughly know how we fool politicians and babus,corrupt them and extract advantages.Don't taker business houses Indian or foreign for fools.They know well how to extract their pound of flesh.

      2. Sri Ramakrishna Chitrapu.
      I agree with a what is written. The improvement over local shops is only the addition the overheads added by the so called beautiful and smartly dressed salesman.  I am reminded of the Customer care executives of the Tata Indicom or other cellular phone services.They do not know what they are talking and the arrogance with which they reply is deplorable.
      In mail order business and the like the overheads are minimum. The middlemen are eliminated. Here thousands of people selling vegetables , pedaling  their cycles loose their daily earnings. Do we at this juncture need Wal Mart like establishment? First strengthen your home base.The villages you have completely forgotten. The village arts and crafts are disappearing. The culture is vanishing. Now you want to deprive them of their daily earning capacity. First improve the condition of living at the village. Then you can think of getting Italian Pizzas.

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