Is SEZ really a boon for the farmers?

[ROHAN KACHALIA]

As published in economic times:

MUNDHA KHERA, INDIA: It's a hot, humid Sunday morning in northern India, but the oppressive heat does not deter a group of about 15 farmers from trudging door-to-door, offering advice and sometimes warnings.

"Do not sell your precious land. Even if you are offered millions of dollars, do not sell. It is your only source of livelihood," Mahavir Gulia, the leader of the group, tells a villager in Mundha Khera, 100 kilometres (60 miles) from New Delhi.

"Sell your land and you will lose your identity," he warns another as the group winds its way through the cluster of austere mud, brick and cement homes.

Gulia is trying to spell out the dangers to locals whose land has been earmarked for a Chinese-style business enclave - a joint venture between the Haryana state government and Reliance Industries, India's largest private conglomerate.

"We want to be sure our fertile land that gives us three crops a year does not end up as part of the Reliance empire," he said. "We don't want Reliance to colonise us. Land is what sustains us farmers with food, respect and dignity."

In Neemana village, 10 kilometres away, Pratap Singh, 75, understands the message -- but a little too late.

Eight months ago, he was the owner of a 20-acre (eight-hectare) fertile field that yielded three harvests a year.

"My sons were lured by the promise of good and quick money. They persuaded me to sell most of my land to the big company," says Singh, squatting on the sandy floor of the one-room house that he and his wife share with a buffalo.

He did get some cash, but it did not last him long in the world outside his usual farming routine.

"We have a saying here that our land is our mother," Singh added sadly. "How can you get any respect when you have sold your mother?"

India's "Great Land Grab"

Singh's land is now part of the 25,000-acre Reliance-Haryana government Special Economic Zone (SEZ) -- a project encouraged by the Indian government to spur industrialisation, infrastructure development and push economic growth into double digits.

For foreign and domestic corporate giants, the SEZs are a tempting option -- promising a way around the country's notoriously slow, corrupt and spirit-crushing bureaucracy.
But opponents say the government is merely sidelining the still-crucial farm sector -- stealing labour and prime land from a sector which employs more than 60 percent of the workforce and generates more than a fifth of India's gross domestic product.

Journalist-turned-activist Praful Bidwai says the years 2006 and 2007 "will be noted in history for the launch of the Great Land Grab".

"It's happening across India," added social activist Vandana Shiva, pointing to farmers' protests in the Communist-ruled eastern West Bengal state in March.

Fourteen farmers were killed when police entered their village to evict them from land designated for a SEZ - causing a furore and polarising public opinion.

Not that land grabbing is a new concept in India - tribal peoples have long seen their forest land shrink with the march of urbanisation.

But SEZs are different, says Shiva. "These are enclaves of privilege, insulated from the laws of the land - whether it is labour laws or environment laws."

Democratic-corporate "schizophrenia"

So far, India has approved 303 SEZs and set aside 1,400 square kilometres (540 square miles) of land on which they are to be built.

According to India's trade ministry, the 126 enclaves already operating have generated 32,578 jobs, and this will swell to 1.5 million by December 2009. It also hopes SEZs will generate 25 billion dollars worth of exports in 2008-2009.

While the figures look impressive, critics argue that Indian democracy is suffering.

"When there is large scale displacement of people involved, you need their consent. In a democracy, people have the right to decide their own future," said prominent community activist Aruna Roy.

"All the villagers should decide -- not just the village headman." She also points to what she sees as the irony of Prime Minister Manmohan Singh's government -- elected on a pro-poor platform in May 2004, but aggressively pushing through the SEZs.

"It's a case of schizophrenia," Roy said. Those who may end up profiting from the affair are India's Maoists, who have seized on the land grabbing issue and already hold sway in much of the impoverished east.

"Agitations like the Maoists' insurgency are triggered by the repeated failure of governance to deliver basic rights," says Roy.

Economist Paranajoy Guha Thakurta says India's ambition to emulate the Chinese SEZ model is basically flawed - "because India is a democracy".

"The Chinese SEZs are like giant urban agglomerations, independent nation states with their own rules for labour and environment," he said.

India following the same model will only create "huge islands of industrial affluence in a sea of deprivation and poverty.

"This will be unacceptable in a democracy."

So guys lets have a debate on this as the SEZ is really a booming thing in our country.

[ROHAN KACHALIA]

Well according to me, India is going at a very rapid pace in sanctioning lands for SEZs without proper planning for the future of our farmers as hectares of their land have been taken away by industrialists which leave our poor farmers more debt ridden. The compensation given is also too little as compared to the inflation rate.

So I think we should go a little slow in allocating land and should not compare with China keeping in mind ours democracy.

[Wizard]

it is good for farmers they are getting good value for there land which was not given by farmers so it good for farmewr

[Wizard]

RECENTLY READ IN NEWS FARMERS OF SONIPAT HAVE BECOME MILLIONAIRE AFTER SELLING THERE LAND SO SO FAR SO GOOD

[kukrejanilesh]

not for framers but in the long run me must not curtail their development...but we must find the way of helping them

[mehernosh007]

It is good for farmers, if proper economic value is given to them in exchange for their land. However, at the same time, there should also be a scheme of providing employments to the farmers in the developed SEZ.

[squareleg]

No way. Its a curse. Everone knows how Reliance fooled one n all with Reliance Mobile, the way it was introduced. Initially they asked for all 36 Post Dated cheques, promising the service for 3 years and sayin the handset costed 10500/-. Same thing which they later gave for Rs.500/-

And the latest Reliance Power doom. Yes, iot a large conglomorate BUT one with least Dignity. News flash that Mukesh Ambani is the Richest Indian, and 4th in the World. And look at the Highest Taxpayers, both brothers r missing, news which was flashed abt 2 weeks ago. Some SRK, Mayawati top the list. Damn sure Mukesh earns hell lot then all others.

Again SEZ purpose itself is maligned. SEZ's r required ONLY for thos Upcoming Industries which deserve and require Govt Support to prosper. IT Revolution required it, Govt gave and today we r known worldwide for the same. Software Services. Again the point to be noted is it was INDUSTRY Specific, and not for each Corporate House own SEZ's, the way it is done today. Tatas , Videocons, DLF's n all have eyed their pie.

In the long run the displaced lot will take up some crime. Reason why we dont have peace. Barging into fertile motherland is the worst crime. The Naxalite n all problems we have is due to similar moves in the past which deprived the real owners of their dues. If one is really concerned they shud do it without acquiring the Land itself, make the farmer sleeping partner or get him involved in the process. Not by paying him today n displacing, ruining his life forever.

Does anyone think Reliance requires Govt. Support to Build a refinery?
Had it been Nanotechnology, Biotechnology then it is fine.

[amit67439]

indeed it s a bit tricky question to answer as the sez factor has been in news for the right and wrong reasons of late.. but what i would like to add is that sez is nevertheless a reality and at the same time a necessity in today's times..

[spy_gensa]

No sez is not a boon for the farmers because they have to loose their valuable land, and after that they have to go in another area or city for the work, there they have to arrange home and school for their childern so all these thing at last will be the same to the high price of the land which they wouls get. so at the end of the day they will be in lose.::SugarwareZ-042:

[kanthanmail]

its good for formers...............................................

[rahuldahiya.ibs]

Hi guys
SEZ is really a boon for farmers which are owner of prime agriculture land.
as you all knows that today world is going towards food crisis, we need to save our prime agriculture land and produce more & more to take stand for food crisis.
I am not saying that SEZ is bad for Indian economy or development but it should be developed at land which is infertile or not agriculture land.
Take the example of Reliance SEZ in Sonipat, Haryana which is going to develop on prime agriculture land situated at national highway no. 1 and also get benefit of exemptions available for SEZ.
what they will develop their as that area is already developed. Corporates are taking advantages of relationship with governments and try to get more & more profit at less cost but real cost for India is very high.

[randomvish]

i think India which was said to be an Agricultural country or a Farmers country will soon be changed to India a SEZ country........people in india r dyin coz of malnutrition....then also these people want our agricultural land to be converted into a township.....govt. is sayin tht SEZ will increase the revenue of country,will make india prosper etc. but wat abt our farmers.....where will they go....govt. is not givin them proper compensation also nor ne job guarantee......coz of this SEZ we will have more deaths due to malnutrition in the future....

[nvignesh]

Of course. I am from Tamilnadu and proud to say it holds the maximum no of SEZ in India. Thru SEZs export and import of agricultural commodities can be channelised and thereby their life will be improved

[rahuldahiya.ibs]

But mr. vignesh , for exporting the agriculture commodities, we need commodities and that can grew only on agriculture land.
and if govt is going 2 acquire agriculture land no use 2 export facilities
i m nt saying SEZs are bad but it should be develop on non agriculture land

[shobhitchandak]

hi

i just wanted to add that i dont know if this famous but there are 6 villages in maharashtra and the farmers there have applied for SEZ on tier own will... i think it is a boon for them as they will now come from villages to having proper infrastructure and they have full facilities... to add thier safety they will keep 60 % stake of the SEZ... to see this we understand that how from farmenrs they have become businessmen.... its quite cool i think and i think that it is helping farmers all over India... but the sad part is that as more land is being converted to SEZ it will soon have an impact on our agri sector which could lead to disaster. all in all i think SEZ are good for the economies as well as the farmers.

[atulanavekar]

great going, iam here to learn more about sez on which iam supposed to do a project and submit by this month end:SugarwareZ-141:

[shilpgala]

According to me SEZ is a really a boon because sez leads to satellite growth. It brings new employment opportunities. It converts the unskilled labour into skilled. But before a farmer enters into some sort of agreement he should be made clear regarding the future benfits and losses.There should more of clarty on his part. We cannot increase the gdp of the country by affecting some poor people. Thus there should be some sort of agency or regulation to help farmers and get them a good price for the land.

[punitparwal]

it is really good to offer money to farmers by exchange of land as it would help them monterey wise and hence in a way better for india

[punitparwal]

and as creation of SEZ by selling the land wud hence make a provision for betterment of indian economy

[punitparwal]

The sizzling controversy of whether setting up Special Economic Zones is good for India or would spell disaster is one that is not going to go away too soon. The media often forgets stories a couple of weeks old, but this one will be on the front pages for a long time to come. It is a controversy that is ironically pitting the Finance Ministry against the Commerce Ministry,

[punitparwal]

the ruling coalition with its partners, farmers with their state governments and activists against what they call, “people unfriendly” projects that can spin out of control by marginalizing a huge section of poor people. In the last few weeks there has been a lot of political posturing, differences of opinion and stance on the SEZ, as it becomes a hot potato

[punitparwal]

As Indian growth rates manage to keep its head high above stormy waters, the idea to many seem as one way of boosting the economy, setting up of new infrastructure, helping ancillary units sprout and creating millions of jobs

[punitparwal]

The idea of setting up Special Economic Zones was mooted in March 2000 as specially demarcated growth centers, to boost exports. It would have special laws protecting it, did not have to pay customs duties on machinery or goods it imported or bought locally.

[punitparwal]

It would be treated as a foreign territory doing business with various partners abroad

[punitparwal]

It would have liberal laws as far as labor and foreign investment was concerned. Apart from attractive tax and duty exemptions, it would be allowed to distribute its own gas, power and water. It was touted to have its unique style of governance. In short, be economic drivers.

[punitparwal]

When it was spelt out, it seemed good as its advocates kept pointing to China that attracted $30 billion in Shenzen, just one of its SEZ’s.

[punitparwal]

The investment here was more than what all the SEZ’s in India were projected to get. Another SEZ doing extremely well was Pudong, near Shanghai changing the entire skyline. Observers say China attracts nearly $45 billion per year in foreign direct investment compared to India's figures of $2 billion annually as it has used its huge SEZ's to boost its economy. India hoped to replicate it.

[punitparwal]

The SEZ’s sounded like an unique idea when it was described as being swank with its own malls, restaurants, flyovers, hospitals, golf courses, luxury apartments, recreation centers and even airports or jetties that would jostle to become among the best in the world. The Commerce Ministry says it is a great real estate opportunity for commercial complexes, offices, malls, golf courses and so on.

[punitparwal]

But SEZ’s need land to build such a massive infrastructure. All the contiguous land that is easily available and connected to the mainland is productive, fertile, agricultural land

[punitparwal]

Both the centre and the states are eager to acquire this land as they see it as the only way to put up what they think will soon be their economic drivers.

[punitparwal]

The Union Ministry of Commerce and Industries are in a great hurry to see it happen as visualize the zones will revive growth and investment.

[punitparwal]

Commerce Ministry officials are trying to push it as fast as they can saying that it will stimulate investments of over Rs. 1,00,000 crore, create over five lakh jobs and also bring in net revenue of Rs. 44,000 crore.

[punitparwal]

One government projection says that 94 SEZ’s dealing with IT will itself create as many as 12.5 lakh jobs.

[punitparwal]

rough plan is that 40 per cent of the SEZ will be set aside for greenery, sewage and water treatment, 25 per cent for real estate development and the rest 35 per cent for developing the SEZ.

[punitparwal]

But all this does not sound like good news for the Finance Ministry. It has real apprehensions: SEZ’s are estimated to end up with the Finance Ministry losing revenue to the tune of over Rs. 1,00,000 crore annually once the zones are up and running. With its huge fiscal deficit, India can hardly afford the loss

[punitparwal]

The Reserve Bank of India has in fact told banks that they should not treat SEZ’s as infrastructure projects but as real estate development activity.

[punitparwal]

The primary issue is the widespread apprehension that the SEZ’s will be hijacked by developers who will with government help, corner huge swathes of rich, agricultural land with a measly compensation handed over to farmers which will not have any resettlement and rehabilitation policy.

[punitparwal]

Many of them are IT related software parks and technology hubs. The argument put forward by critics is that there is no need for a SEZ for IT as they would have done well anyway as India has an edge and has solid human resource that is growing by the day

[punitparwal]

This has prompted the Commerce Secretary, Gopal Pillai, to say that the government will now go slow on approval for IT SEZ’s. As many as 148 IT SEZ’s has been granted approval and another 70 are likely to be okayed as they have been cleared in principle.

[punitparwal]

This may not be music to IT ears. The SEZ was a perfect dream for them as the existing Income Tax Act allows them tax sops only for another four years.

[punitparwal]

If they in that time got into a SEZ, they could again ride on a tax holiday for another decade or more.

[punitparwal]

What has been India’s experience with Export Processing Zones? Why did they not do as well as it was projected inspite of heavy financial incentives? Why has there been such an aggressive government overdrive to bring in SEZ’s into India in such a massive scale?

[punitparwal]

India is looking at developing more than 350 SEZ’s with more than Rs. 1,00,000 crore investments.

[punitparwal]

As many as 150 of them have got formal approval. Another 129 have been cleared in principle and nearly 200 others are awaiting clearance.

[astute_surfer]

nope.......................................................................

[punitparwal]

Reliance plans to buy nearly 25,000 acres of land from the Haryana government to set up Rs. 25,000 crore (Rs 250 billion) multi-product SEZ that will have a cargo airport and a 2,000-mw power plant. Apart from this, Mukesh Ambani, the Reliance Industries Chairman, has bigger plans. He wants to set up one of the biggest SEZ’s in India.

[punitparwal]

In association with the Maharashtra government, he wants to set up two of these zones in an area as large as 14,000 hectares in Navi Mumbai and Maha Mumbai. Both these would be impossible if irrigated land is not allowed to be acquired. Apart from Reliance, companies like Wipro, Infosys, Satyam, Bajaj, DLF and many others are firming plans to set up SEZ's. The SEZ rush is on. In the second week of November, Noida in Uttar Pradesh got the okay for eight SEZ’s.

[punitparwal]

As protests by farmers in various parts of India created a whirr with activists joining in, the government toned its enthusiasm and determination down a wee bit saying that agricultural land would not be taken over to build SEZ’s.

[punitparwal]

United Progressive Alliance chairperson, Sonia Gandhi, categorically said that good agricultural land should not be converted into SEZ’s.

[punitparwal]

Nationalist Congress Party leader Sharad Pawar who soon will have to face elections for state civic bodies and district councils in Maharashtra echoed the same fact saying that irrigated land must not be acquired.

[punitparwal]

Farmers in many parts near Mumbai and Pune are angry that land sharks that are developers for the SEZ are targeting their land.

[punitparwal]

For politicians, nothing could be worse than anger showing up at election booths. Maharashtra Chief Minister Vilasrao Deshmukh has already said that he would go slowly on acquiring land for these projects.

[punitparwal]

There is a distinct possibility that many existing manufacturing units would shift base to the SEZ just to escape tax.

[punitparwal]

The SEZ would be a great place for them to park as it would not only be better in terms of doing business but also help them reap huge tax benefits making their profits soar.

[punitparwal]

The SEZ’s will mainly come up in Maharashtra, Gujarat, Uttar Pradesh, Tamilnadu, Orissa, Karnataka and Haryana.

[punitparwal]

Many backward states that are underdeveloped will continue to be sentenced to remain so. This could lead to regional imbalances that will throw up complicated problems. NO SEZ for example, will come up in the north-east, which already suffers from the problem of alienation and discrimination.

[punitparwal]

The Commerce Ministry is pushing the argument that farmers would be well compensated.

[punitparwal]

But the fact remains as true as ever-from experiences earlier-that farmers do not know what to do with liquid cash. It is the kind of money they never saw before.

[punitparwal]

As they do not know how to manage it, invest it or recycle it for some other activity, it is often spent wastefully

[punitparwal]

Having lost the only kind of livelihood they knew, they caught in the whirlpool of debt.

[punitparwal]

Having lost the only kind of livelihood they knew, they caught in the whirlpool of debt. Another argument being used to dent the critics is how farmers could be rehabilitated with jobs in the zones. Most of them are going to be Information Technology related and how are farmers going to do a nine to six job at a desk or with machines they do not understand? The issues that arise are far too sticky to have immediate and easy solutions.

[punitparwal]

Having lost the only kind of livelihood they knew, they caught in the whirlpool of debt. Another argument being used to dent the critics is how farmers could be rehabilitated with jobs in the zones. Most of them are going to be Information Technology related and how are farmers going to do a nine to six job at a desk or with machines they do not understand? The issues that arise are far too sticky to have immediate and easy solutions...

[punitparwal]

It may not be so easy to find wasteland that is well connected to airports or ports. But it is an option that the government is now seriously looking at as anti-SEZ voices get louder.

[punitparwal]

The government may use the Land Acquisition Act to force farmers say goodbye to their land after compensating them in cash, but the aam aadmi factor looms large especially as elections are concerned

[punitparwal]

No wonder ministers and Congress chief Sonia Gandhi are treading carefully on the SEZ bomb. She categorically said that good agricultural land should not be acquired for SEZ’s.

[punitparwal]

In India, farmers are emotional about the land that they have farmed for years and just giving it up so that industry can be set up, is not something that can be easily digested.

[punitparwal]

Already, there have been numerous protests and farmers are now realizing the need to stick together to defend their right to their farmland.

[punitparwal]

The government is touting SEZ’s as the future islands of excellence. But at what cost will it be achieved? That is the moot question.

[punitparwal]

As thousands of acres of agricultural land are converted into concrete jungles, how will it affect food security? Will the farmers who are ready to give off their land get a fair deal?

[punitparwal]

Most of them fear they will get peanuts compared to what the developers will make. Punjab Chief Minister, Capt. Amrinder Singh, has already gone on record saying that land acquisition is a deal between the farmers and the SEZ developers and the government has nothing to do with it.

[punitparwal]

Will the same attitude continue when environmental degradation starts in the race to make a fast buck?

[punitparwal]

The enthusiasm that the government has in setting up the SEZ’s underline an ugly fact that even after five long decades of independence, we still do not have the kind of decent infrastructure in the country that should have normally been the case.

[punitparwal]

Services should have been available to all, but it could not be created and so now, there will be special areas demarcated for special people.

[punitparwal]

The others will continue to live without power, water, roads and green areas. Islands of prosperity where the rich are ecologically subsidized are okay, while the lesser mortals live on the fringe

[punitparwal]

Indian agriculture is facing a policy paradox. It has been primarily characterised as a means of subsistence, small investments, small return and a source of livelihood for the rural households.

[punitparwal]

Till recent past element of commerce was limited to a few commercial crops such as jute, sugarcane, cotton etc to provide raw material for particular industries rather than fulfilling the household needs

[punitparwal]

Whereas India’s agricultural policy is still rooted in the goal of self-sufficiency in grains, consumption patterns are changing fast towards high value agricultural products such as fruits and vegetables, livestock products and fish

[punitparwal]

The policy environment is lagging behind the structural change occurring in India’s consumption and production basket. To develop the agriculture on commercial lines to achieve its accelerated growth rates, the issues of profitability is coming upfront.

[punitparwal]

Hence, the favourable term of trade with effective market access is basic. This would be conducive to capitalise on resources potential based production through regionally differentiated production strategies to meet the growing and fast changing market demand.

[punitparwal]

For demand driven and market oriented production, timely backstopping of desired quality of inputs and appropriate technology to start with and necessary mechanism to ensure its availability in the desired form to the consumer ending with finished products, is required to be harmonised and in a continuum.

[punitparwal]

he super market revolution has been underway in developing countries. Supermarkets refers to all modern retail which includes chain stores of various formats such as supermarket, hypermarket and convenience and neighborhood stores have now gone well beyond the initial upper and middle class clientele to reach the mass market.

[punitparwal]

Until recently, super markets were not a major form of food retailing in developing countries and confined to only niche markets for higher income consumers in major urban markets.

[punitparwal]

It is a two-edged sword. On the one hand it can lower food prices for consumers and create opportunities for farmers, processors to gain access to quality differentiated food markets and raise income.

[punitparwal]

On the other hand, it can create challenges for small retailers, farmers and processors who are not equipped to meet the new competition and requirements of super markets.

[punitparwal]

Government has to put in place a number of policies to help both traditional retailers and small farmers pursue policies of competitiveness in the era of supermarket revolutions.

[punitparwal]

This is being perceived as the first wave of super marketisation. The South-East Asian supermarkets followed the suit about five to seven years later and now supermarkets are registering rapid growth in many East Asian countries.

[punitparwal]

A third wave has swept across East-Central Europe, and Africa led by South Africa. At present, West Africa, China and India are witnessing a supermarket revolution.

[punitparwal]

PARADIGM SHIFT:
A paradigm shift is occurring in the retail sector of the Indian economy. This new paradigm of market orientation to suit small and marginal farmers is a real challenge to the agricultural research system. Indian retail industry, which is worth $300 billion in 2006, is likely to reach $427 billion by 2010 and to $637 billion by 2015. Merely 3 per cent of retail in India is organised.

[punitparwal]

Visible retail revolution is on in India. In a short span of two years, retailing has exploded on the Indian firmament as a humungous business opportunity.

[punitparwal]

Organised retailing has come some way from what it was say as recent as five years ago, but there is a firm belief that: It is only the beginning and the best is yet to come.

[punitparwal]

Currently, India is one of the top five global destinations for retail investment with more than 21 million people employed in this sector which contribute 13 per cent of the nation’s GDP. In such a scenario food retailing cannot be far behind which account for nearly 60 per cent of the total and that too almost entirely in what is described as unorganised sector.

[punitparwal]

This is where organised retail has perceived an opportunity. India’s food sector is set to expand exponentially in the coming years.

[punitparwal]

Given the existing low per capita consumption, every increase in income will first translate into higher demand for food until the time basic food needs are satisfied.

[punitparwal]

Increasing urbanisation and growth of small towns throughout the country coupled with increased income level, diversified food habits, growth of working women outside home, willingness to pay for better quality and need for convenience drive demand for processed, ready-to-cook or ready-to-eat, convenience foods, packaged and preferably branded.

[punitparwal]

CORPORATE ENTRY:
The traditional model of farm plucked vegetables reaching the market and sold the same day by the petty traders had to slowly give way to sophisticated storage, handling and retailing of these commodities over few days by organised market chains.

[punitparwal]

The initiatives by large corporates are also increasing their outlets by connecting to farmers directly. With appropriate contacting mechanisms stakeholders can also connect to processing industries and fast food chain such as McDonalds, KFC, Pizza Hut and Narulas which continue to expand their operations in India.

[punitparwal]

Corporates know that the Indian agriculture sector is a potential goldmine that has not been tapped till now and farmers have a lot of reasons to be happy with the corporate entry into agriculture scenario.

[punitparwal]

With plenty of money and manpower’s at their disposal, these corporate Goliaths are attempting to give a new meaning to Indian agriculture

[punitparwal]

Many of these corporate are making a beeline to farmers’ doorstep for buying their produce, something, which the poor farmers have never experienced so far.

[punitparwal]

All the times it was the farmers who had to take his produce to the market and search for marketing channels. Corporate entry into agriculture could find an answer that has been plaguing the farm sector for long — proper and affordable price to the farmers.

[punitparwal]

All the times it was the farmers who had to take his produce to the market and search for marketing channels. Corporate entry into agriculture could find an answer that has been plaguing the farm sector for long — proper and affordable price to the farmers.

[punitparwal]

COOPERATIVE MOVEMENT:
All these improvements are more than what the government has been able to offer to the agriculture sector.

[punitparwal]

In fact the governmental cooperative movement which was started with the similar idea of procuring, transporting and retailing the produce has been a major disaster with red tape and political interferences clogging its functioning.

[punitparwal]

By moving in and taking over the supply chain in agriculture, corporate India is also breaking the stronghold of middlemen and loan sharks who have been exploiting the farmers.

[punitparwal]

But the litmus test is whether this new trend is relieving the present constraints that the farmers face in effectively linking with regional, domestic and global markets. How is private sector driving smallholders’ participation in retail food markets?

[punitparwal]

The common perception that private sector will exploit smallholders is slowly changing with the successful demonstration of several corporations that are working with small holders to connect them with domestic and world market.

[punitparwal]

TRADITIONAL RETAILERS:
As supermarkets spread and their market share grows, the market share of traditional retailers declines. Modern retail can also create jobs which are better paid with better conditions. But it requires more skill and education than employment in the informal retail sector. How well the government and the private sector raise the skills of workers in the distribution sector will determine whether the transition has poverty creating or poverty alleviating effects.

[punitparwal]

PLETHORA OF LAWS:
Retailing in India is subjected to a plethora of laws/regulations at the central, state and local/municipal levels.

[punitparwal]

There is lack of specific legislation controlling distribution trade and there is no nodal ministry to control and guide the operation of this sector.

[punitparwal]

This has resulted in delays owing to multiple clearance procedures. Single window clearance scheme should be set up. The elimination of market intermediaries will benefit both the producers and the consumers. Farmers selling to retail companies receive higher prices and hence take care of quality aspect. Simultaneously, this also helps to reduce wastage of perishable commodities which is as much as 30 to 40 per cent in case of fruits and vegetables

[punitparwal]

SMALL FARMERS’ MANAGEMENT REVOLUTION:
As recommended by Dr MS Swaminathan, chairman of National Commission for Farmers, the Special Agricultural Zones (SAZs) should be established to sustain and expand the retail boom from farm to market.

[punitparwal]

SAZs should aim to bring about a small farm management revolution which can help improve the productivity, profitability and sustainability of the major farming systems of the country. Special incentive and support for conservation of farming, timely supply of credit, effective insurance system and above all post-harvest infrastructure for value addition to primary produce, biomass utilisation and producer oriented marketing must be given to farm families in the SAZs.

[punitparwal]

The major purposes of such SAZs are: to conserve prime farm land for agriculture and to bridge the prevailing yield gap; To realize the untapped production potential of rainfed areas; To promote organic farming zones; To ensure National Nutrition Security and Food Sovereignty; To bring about a system approach with concurrent attention-consumption-commerce chain; To strengthen the supply chain from farm to the market and to sustain and expand the retail boom. As in the case of SEZ, special incentives and logistic support must be given to farm families in the SAZ areas.

[punitparwal]

These should include support for conservation of farming, timely support for credit, effective insurance system and above all post-harvest infrastructure for vale addition to primary produce, biomass utilization and producer oriented marketing.

[punitparwal]

There is another land war involving small and marginal farmers possessing fertile agricultural land and those who wish to purchase for setting up SEZs. The answer to this question is not just to persuade small farmers to quit farming by selling their land, however attractive the prevailing price may be.

[punitparwal]

This is where the agro processing and retail sector can make a contribution by providing opportunities for skilled non-farm employment. Sustainable food security with home grown food has three additional benefits. First it provides sustainable livelihoods, secondly, it protects our national sovereignty in foreign policy and thirdly, it diminishes the rate of inflation by creating a balance between demand and supply.

[punitparwal]

Moreover, adoption of integrated agriculture is the major source of job-led economic growth which in a population rich country like India would result in joyless growth. Therefore, SAZs should be promoted on the model of SEZs. Identify in every state areas with a high untapped agricultural potential both under irrigated and rainfed conditions and develop them into SAZs. Introduce with the help of farmers’ organisations and gram sabhas, as well as private sector, integrated package of technology, services, techno-infrastructure and producer-oriented trade; introduce common service centres, including Gyan Chaupals based on CSC programme of the Department of Information Technology with provision for providing key centralised services to support decentralised production. Spread a quality literacy programme, including knowledge of sanitary and phytosanitary measures and codex alimentarius standards of food security.
FDI IN RETAIL:

[punitparwal]

Currently, a heated debate is on whether or not; Foreign Direct Investment (FDI) in retailing is desirable. FDI is not allowed in retailing. FDI, however, in a single brand is permissible. It is also allowed only in franchising and in commission agent services. The Foreign Investment Promotion Board on a case-by-case basis approves the FDI proposal in the wholesale trade services. Many reputed foreign retailers with deep pockets and deeper market knowledge are waiting in the wings to enter the country. Restriction on FDI may constrain the growth of organised retailing.

[msmeghajain]

there is no point for boon or anything. a farmer can earn his livelyhood only through farming. taking away land from him and giving in return a handsome amount of money ( which still was very less as against their actual evaluation) cant make him earn for himself. and when there is already a shortage of cultivable land, taking that for industrialisation is definately a wrong decision in long run.

[maverick_playboy]

well proper survelience needs to be done before sactioning ....

[confused21]

sezs are nt boon for the farmers the money they get by selling their is nt goin to last long then wat will they do aftr that?? If these sezs provide employment to these farmers then it seems a bettr deal. The farmers shud nt be pressurised to sell their land it shud be with his consent only...

[anyzen]

SEZ, the money making tool for politicians and real estate business.
SEZ takes all the land from farmers and providing the land to few business.

Lands are given to the foreign companies at a far less rate and finally one day will come our whole country is going to be in the hands of foreign companies.

[ashpt33]

yes.........................................................

[neha20092009]

All the times it was the farmers who had to take his produce to the market and search for marketing channels.

[jigar pobari]

boon for farmers ....... as it would be having a great benefit to them to earn a good worth for their products

[greatdude10]

SEZ in a planned manner can be a boom. However today they only seem to be putting more industires into existing urbanized areas

[HARSHA6183]

s it is ,it provides farmers to gain revenue by selling their produce to certain buyers regularly

[VartikaChauhan]

provides an impetus to those to go forward and ask fuh it