Development Policies and Rural Poverty in Orissa: Macro Analysis and Case Studies A Study by Vasundhara March, 2005 Revised: December, 2005 Supported by Planning Commission, GoI VASUNDHARA 15, Saheed Nagar Bhubaneswar-751007 Orissa, India. Tele-fax: (91-674) 2542011, 2542012, 2542028 e-mail: [email protected] 2 Development Policies and Rural Poverty in Orissa: Macro analysis and Case Studies Research Team Late Shri Ashok Babu Shri Sudhir Pattnaik Shri R.K. Sarangi Ms. Rekha Panigrahi Mr. Tarun Pradhan Mr. Soumen Sarangi 3 Contents Pages Acknowledgements Introduction 10-24 Section I : Agriculture Sector 25-119 Sectyion II: Forestry Sector 120-197 Section III: Industrial and Mining Sector 198-245 Annexures 246-254 Bibliography 255-258 4 Tables Agriculture Sector Case Study 1 – Jambahal Village of Palnagarh Block, Bolangiri District, Orissa Table 1 Profile of Jambahal Village 28-29 Table 1A Landholding Profile of the Jambahal Village 29 Table 1B Landholding Pattern of a few classes in Jambahal Village 30 Table 2 Cropping Pattern of Jambahal Village 30-31 Table 3 Account of Irrigation Coverage in Jambahal Village 32 Table 4 Different Sources of seeds used by the Farmers of Jambahal 33 Village Table 5 Comparison of Productivity between HYV & Traditional 34 paddy seeds in Jambahal Village Table 6 Estimates of use of inputs for paddy, cotton and tomato in 36 Jambahal Village Table 7 Use of Energy & Implements in Jambahal Village 37 Table 8 Unit rates of inputs used for agriculture in Jambahal Village 38-39 Table 9 Cost of cultivation of HYV Paddy in Jambahal Village 39-40 Table 9A Labour Component in Cost of Cultivation of HYV Paddy in 40-41 Jambahal Table 9B Share of own labour in total labour component in HYV 41 paddy in Jambahal Village Table 9C Fertiliser & Pesticides component in Cost of Cultivation of 41 HYV Paddy in Jambahal Village Table 10 Cost of cultivation of Traditional Paddy in Jambahal Village 42 Table 10A Labour Component in Cost of Cultivation of traditional 42-43 paddy in Jambahal Village Table 10B Share of our labour in total labour component in traditional 43 paddy in Jambahal Village Table 11 Cost of Cultivation of cotton in Jambahal Village 43-44 Table 11A Labour Component in Cost of Cultivation of Cotton 44-45 Table 11B Share of own labour in total labour component in cotton in 45 Jambahal Village. Table 11C Fertiliser & Pesticides component in Cost of Cultivation of 46 cotton in Jambahal Village Table 12 Cost of Cultivation of Mung in Jambahal Village 46-47 Table 12A Labour Component in cost of cultivation of Mung in 47 Jambahal Village Table 12B Share of our labour in total labour component in Mung 47 (Kharif) in Jambahal Village Table 12C Cost of Cultivation of traditional Paddy Vs. HYV Paddy in 48 Jambahal Village. Table 12D Analysis of Credit involvement in agriculture in Jambahal 49 Village Table 13 Analysis of Credit involvement in agriculture in Jambahal 50-51 Village Table 14 Productivity of Different Crops in Jambahal Village. 52 Table 15 Prices of important agricultural commodities during peak 53 marketing period in Jambahal Village Table 16 Estimates of Surplus of Big farmers of Jambahal Village. 55-56 5 Table 17 Estimates of Surplus of Medium Farmers of Jambahal 58-59 Village Table 18 Estimates of Surplus of Small Farmers of Jambahal Village 61-62 Table 19 Estimates of Surplus of Marginal Farmers of Jambahal 63-64 Village Table 20 Comparative farm surpluses in Jambahal Village 64 Table 21 Farm Surplus pattern of a few clases in Jambahal Village 65 Table 22 Agricultural income of Jambahal Village 65 Table 23 Estimates of total employment in agriculture in Jambahal 66 Village Table 24 No. of people guaranteed employment through agriculture in 67 Jambahal Village Table 25 Employment from different sources in Jambahal Village 67 Case Study 2 – Upparbahal Village of Louisingha Block, Bolangir District, Orissa Table 1 Profile of Upparbahal Village 73-74 Table 1A Landholding Profile in Upparbahal Village 75 Table 2 Cropping Pattern of Upparbahal Village 76 Table 3 Irrigation coverage in Upparbahal Village 78 Table 4 Different source of seeds used by the farmers of Upparbahal 79 Village Table 5 Estimates of use of inputs for Paddy, Cotton and Tamato in 81-82 Upparbahal Village Table 6 Use of energy and implements in Upparbahal Village 83 Table 7 Unit rates of inputs used for agriculture in Upparbahal 84 Village Table 8 Cost of Cultivation of HYV Paddy in Upparbahal Village 85-86 (Kharif) Table 8A Labour component in Cost of Cultivation of HYV Paddy in 86 Upparbahal Village Table 8B Share of own labour in total labour component in HYV 86-87 Paddy in Upparbahal Village Table 8C Fertiliser & Pesticides component in cost of cultivation of 87 HYV paddy Table 9 Cost of Cultivation of traditional paddy in Upparbahal 87-88 Village Table 10 Labour component in cost of cultivation of traditional paddy 88 Table 10A Share of own labour in total labour component in traditional 89 paddy Table 11 Cost of cultivation of cotton in Upparbahal Village 89-90 Table 11A Labour component in cost of cultivation of cotton 90-91 Table 11B Share of own labour in total labour component in cotton in 91 Upparbahal Village Table 11C Fertiliser & Pesticides component in cost of cultivation of 91-92 cotton in Upparbahal Village Table 12 Cost of cultivation of Tomato in Upparbahal Village 92-93 Table 12A Labour component in cost of cultivation of Tamato 93 Table 12B Share of our labour in total labour component in Tamato 93-94 (Kharif) in Upparbahal Village Table 12C Fertiliser & Pesticides component in cost of cultivation 94 6 Tamato in Upparbahal Village Table 12D Cost of cultivation of traditional paddy Vs. HYV paddy in 95 Upparbahal Village Table 12E Analysis of cost of cultivation in Agriculture in Upparbahal 96 Village Table 13 Analysis of credit involvement in agriculture in Upparbahal 98 Village Table 14 Productivity of Different Crops in Upparbahal Village 99 Table 15 Prices of Important agricultural commodities during peak 100-101 marketing period in Upparbahal Village Table 16 Average Price deductions of a farmer for paddy sold at RMC 101 Yard Table 17 Estimates of earning of Big Farmers of Upparbahal Village 102-103 Table 18 Estimates of income of Medium Farmers of Upparbahal 104-105 Village Table 19 Estimates of income of Small Farmers of Upparbahal Village 106-107 Table 20 Estimates of earnings of Marginal Farmers of Upparbahal 108-109 Village Table 21 Comparative farm surpluses in Upparbahal Village 109 Table 22 Income pattern of farmers of different categories in 110 Upparbahal Village Table 23 Agricultural income of Upparbahal Village 110 Table 24 Estimates of total employment in agriculture 111 Table 25 No. of people guaranteed employment thru agriculture 112 Table 26 Employment from different sources 113 Forestry Sector Table 1 Estimates of area under shifting cultivation in Orissa 127 Table 2 Inconsistencies in official data about encroachments 128-129 Table 3 Sectorwise Forest Area Diverted for Non-Forest use 130 (under Forest Conservation Act, 1980) Table 4 Production of Kendu Leaf and wages earned by the 131 pluckers in different years inside the Sanctuary Table 5 Foodgrain production in Orissa during 1995-96 to 1999-2000 143 Table 6 Percentage of Revenue from NTFPs (including Sal Seed), 145 Bamboo and Kendu leaf to total Forest Revenue Table 7 Collection of Sal Seeds (in Metric Tonne) in Balangir district 149 Table 8 Minimum Procurement Price fixed up for certain MFPs by 159 TDCC and at the District level for the period 2001-2002 Table 9 Collection figures of Mahua flower and Sal Seed by 5 162-163 Women NTFP Gatherer's Cooperatives during the period 2003-04 to 2004-05 Table 10 Realistic implications of Minimum Support price in 164-165 important MFPs Table 11 Export earning figures of some years from the export trade 174 of Kendu Leaves Table 12 Comparison of share of KL pluckers wages in total turnover 177 sales between Orissa Madhya Pradesh and Andhra Pradesh states Table 13 KL Grant ought to be disbursed to Gram Panchayats and 178-179 7 actual grant received during the period 1984-85 to 1995- 96(in Crores) Table 14 Utilization of KL Grants in 4 Gram Panchayats of 179 Sundergarh District (1994-99) Table 15 Procurement amount and revenue earned from bamboo 183 during the period 1980-81 to 1999-00 Table 16 Loss occurred to the State after the closure of Bamboo 185 harvesting operations Industrial and Mining Sector Table 1 Percentage of population below poverty line in Orissa and 201 India. Table 2 Annual compound growth rate of Net State Domestic 204-205 Product (NSDP) and the share of Manufacturing in NSDP at 1970-71 prices (in %). Table 3 Growth Rate of NSDP of Orissa and its Sectors from 1980- 205-206 81 to 1999-2000. (At 1980-81 prices) Table 4 Sectoral Composition (%) of NSDP, Orissa. 206-207 Table 5 Large & Medium Industries promoted by IPICOL 209 Table 6 Surplus and Employment generated by IDCOL during the 210 period 1993-94 to 1999-2000 Table 7 Industrial Base of Orissa: 1966-98 211-212 Table 8 Pattern of Investment and Employment generated during 214 the period 1990-91 to 2001-02 Table 9 Status of New units, Investment and Employment in Small- 218 Scale Industries Table 10 Status of Growth, Investment and Employment in Cottage 220 Industries Table 11 Mineral Reserves in Orissa 221-222 Table 12 Pattern of Growth in Mineral Production and Employment 223 generated in Orissa Table 13 Revenue Receipt from Mining Sector and Total Own 224 Non-Tax Revenue of Orissa Table 14 Magnitude of displacement due to various development 227 projects in Orissa (1950-1993) Table 15 Brief information about OMC and other private mining 230-231 companies operating in the study area Table 16 Names Of Persons Affected By "Forcible Land Acquisition” 231-233 by OMC And other Mine Owners.