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Special Economic Zones (SEZs) Has Focused National Attention On The Loss Of Agricultural Land


By Dr arvind, Section GN
Posted on Sun Apr 20, 2008 at 11:15:57 PM EST

How much land is actually transitioning from farm to non-farm use? The government itself puts the figure at 1.5% of net sown area between 1990 and 2003, or more than 21 lakh hectares. The actual figures could be much higher. Putting just this much land under wheat would yield 57 lakh tonnes of produce, enough to feed more than 4.3 crore hungry people every year

The issue of land acquisition for the setting up of Special Economic Zones (SEZs) has focused national attention on the loss of agricultural land. Addressing a National Development Council meeting on December 23, 2006, Prime Minister Manmohan Singh said: "I agree that we must minimise the diversion of agricultural land and, given the choice, must opt for using wasteland for non-agricultural purposes. However, it must be kept in mind that industrialisation is a national necessity if we have to reduce the pressure on agriculture and provide gainful, productive employment to millions of our youth who see no future in agriculture."

It is obvious that the prime minister's statement was directed more at assuaging the violent opposition to the deprivation and displacement unleashed by land acquisition than at generating employment in off-farm activities for the rural youth. If this were not so, the government would have provided a figure on the threshold level for this diversion so that agricultural land is protected. In fact, the government itself does not know how much agricultural land has been diverted till date, as the Planning Commission's July 2006 report of the Working Group on Land Relations for the Eleventh Five-Year Plan made clear.

The reason for this lack of awareness is not difficult to figure out: both the government and the private sector have partnered in appropriating agricultural land to promote industry, real estate, infrastructure, highways, dams, etc. All this purportedly to benefit the `public', which somehow does not include people engaged in agriculture. The fact is that diversion of agricultural land for non-agricultural use will not only continue but also enjoy official sanction. As always, it is the poor who will pay in terms of livelihood loss and food insecurity.  

Do numbers matter?
Are SEZs the only, or principal, reason for the diversion of farm land for non-farm use? Available figures indicate that large-scale diversion of agricultural land has been going on for more than a decade. At present, a little over 46% of the country's area is cultivated. According to the ministry of agriculture, between 1990 and 2003 the net sown area declined by around 1.5%. While in percentage terms this may seem insignificant, in absolute terms it translates to more than 21 lakh hectares. On the other hand, between 1990 and 2004, land under non-agricultural use has gone up by 34 lakh hectares.

This extensive diversion of farmland has been facilitated by a relaxation of land acquisition and ceiling regulations post-1991, and has resulted in the State itself turning into one of the largest real estate brokers and developers in the country.  All that the Centre did to protect agricultural land was issue the National Land Use Policy Outline to States and Union Territories, in 1986. Instead of full implementation, the state-level Land Use Boards have redefined their role to coercing farmers to give up farmland.

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All across the country, agricultural land is shrinking. According to official figures, Tamil Nadu lost more than 10 lakh hectares of agricultural land between 1991 and 2003.  Mineral-rich Orissa, Jharkhand and Chhattisgarh are losing agricultural land to mining and power projects. In Kerala, between 1997-98 and 2001-02, over 80,000 hectares of crop land were diverted for non-agricultural use. Even in the case of a small state like Himachal Pradesh, the net sown area has declined by 33,000 hectares between 1991 and 2001.

At a seminar on land use planning held at the National Centre for Agricultural Economics and Policy Research, New Delhi, in 1997, activist Sulabha Brahme stated: "The Maharashtra Industrial Development Corporation (MIDC) has so far acquired 35,000 hectares of land over 200 locations... It has planned land acquisition for 120 industrial areas/estates covering 30,000 hectares of land... Nine large industrial townships with sizes ranging from 2,000 to 7,000 hectares are planned... MIDC is also planning deluxe industrial estates for attracting NRIs and foreign companies... Land is being acquired by the government for private hotel industry and tourism development."  No wonder the MIDC website proudly proclaims that by 2002 it possessed more than 52,000 hectares of land with plans to acquire another 35,000 hectares.

In the neighbouring state, MIDC's counterpart, the Andhra Pradesh Industrial Infrastructure Corporation (APIIC), expanded its ownership from 14,000 hectares in 2005 to 34,000 hectares in mid-2006. In November 2007, Tamil Nadu released its new industrial policy and announced that it would develop a land bank of 4,000 hectares to promote industrial development in the state.

This hunger for agricultural land continues unabated. Between 2002 and 2007, about 90,000 hectares of agricultural land across 25 mandals in and around Hyderabad have been diverted for real estate speculation and mega-projects. Another 63,000 hectares across 20 mandals of Ranga Reddy district have been lost over the past 10 years.  These figures have been reported in a paper published in the August 4-10, 2007, issue of the Economic and Political Weekly by V R Reddy and B Suresh Reddy who estimated that a mind-boggling 5 lakh hectares of agricultural land have been lost in Andhra Pradesh in recent years. The authors feel this is a conservative estimate.

While the prime minister was at least trying to appear as if he was not advocating the poaching of agricultural land, some state governments have not bothered with such niceties. Take Chhattisgarh, where 80% of the population depends on agriculture. The state government's Vision 2010 document states: "The existing rules prevent the diversion of agricultural land for industrial use. The state would simplify the procedures of diverting land from agricultural to industrial use." To achieve this, the state proposes that agriculture be left to the 30% of farmers who presently control 70% of the agricultural land!

Besides industrialisation, agricultural land is also being gobbled up at an unprecedented rate in the name of infrastructure development. In some cases, the scale may be smaller, as with the World Bank-funded Allahabad bypass project which led to the acquisition of 781 hectares of prime cropland. Or it may be huge as in the case of the Ganga expressway project in Uttar Pradesh, which is expected to acquire 63,110 hectares. The Gangetic plains hold arguably the most fertile land in the country, and 70% of the land earmarked for the project is agricultural land owned and cultivated by farmers.

The National Highway Development Programme Phase V plans to widen 6,500 km of existing four-lanes to six-lane highways. Across the countryside, about 146,000 km of new roads are planned, and a dedicated programme, the Pradhan Mantri Gramin Sadak Yojana, has been going on since 2001-02. The Cabinet Committee on Economic Affairs, meeting on January 10, 2007, called for an amendment of land acquisition laws to enable the speedy acquisition of agricultural land for Rs 5,000 crore railway expansion projects.

There's more. To sustain the 18% growth in the civil aviation sector, the government is planning to redevelop 45 big and small airports around the country. Foreign equity of up to 100% has been permitted through automatic approvals for greenfield airports.  The recently-cleared Greater Noida airport near New Delhi will involve the acquisition of 1,500 hectares of farmland. Reliance Industries Limited (RIL) and the Haryana state government have jointly proposed a greenfield international-airport-cum-cargo-airport at Jhajjar, near Gurgaon, for which 4,347 hectares have been earmarked. If similar demands to build new airports come up from 20 cities or SEZs, 50,000-80,000 hectares of farmland would disappear.

When the State itself goes about brazenly acquiring agricultural land and violating the principles of the National Land Use Policy Outline, can the private sector be far behind? In fact, the area be

By: Bhaskar Goswami From Infochange Agenda
The nuts and bolts of appropriating agricultural land

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