Economic Affairs, Vol. 62, No. 3, pp. 483-493, September 2017 DOI: 10.5958/0976-4666.2017.00060.2 ©2017 New Delhi Publishers. All rights reserved Agricultural Development in West Bengal: An Inter–temporal Analysis Satyen Sarkar1 and Tapan Kumar Ghosh2* 1Department of Economics, Ananda Chandra College of Commerce, DBC Road, Jalpaiguri, West Bengal, India 2Department of Economics, Ananda Chandra College, Jalpaiguri, West Bengal, India *Corresponding author: [email protected] ABSTRACT Indian economy since ancient time’s agriculture has been backbone of occupation for Indian people. Near about 70% of population in India is dependent on agriculture for its livelihood and despite concerted industrialization in the last six decades, agriculture still occupies a place of pride. It contributes a sizable percentage to the domestic product as also to exports. More than two-thirds of the work-force is engaged in agriculture and large many depend upon it being engaged in trade in agricultural products, agro-based industries etc. Being the largest industry in the country, agriculture provides employment to around 60% of the total work-force in the country. The present paper deals with inter-district disparities in rural agricultural sector in West Bengal and its impact on agricultural development through a (cross- sectional study) inter-temporal analysis of 18 districts. Cluster of districts of rural economic have been prepared for selected 10 indicators, in the period of time 1990-91, 2000-01 and 2010-11. The analysis reveals that extreme disparities continue to persist with respect to the availability of economic indicators in rural areas at the district level. The pattern of districts in terms of development of rural infrastructure has also remained broadly unchanged. West Bengal agriculture should promote diversified and export oriented agriculture. Particular attention needs to be paid to the backward districts for more balanced regional development. This calls for increased investment in rural infrastructure by both the public and private sectors. Keywords: Agricultural development, cross-sectional study, Indian economy, livelihood, West Bengal state Agricultural sector is a prime sector of the by the Bengal Chamber of Commerce and Industry, economy of West Bengal where expansion of Calcutta (BCCI, 1971) when it stated: “While the industrial sector is limited due to its topographical Calcutta Metropolitan District or the district of constraints. The study of the relationship between Burdwan in the coal-iron ore belt represents a value of agricultural produce per hectare of net relatively high level of development, the outlying area sown and agricultural values are relevant regions like Darjeeling-Cooch Behar-Jalpaiguri in and significant to find out the roots to pace of the north or Purulia-Bankura-Murshidabad in the agricultural development. There is the coexistence of west reflect a sorry plight of stagnation and decay. developed and developing districts in West Bengal. Indeed, a greater degree of intra-State regional The changing pattern of association of agricultural imbalance is not witnessed in any other state of development indicators for the decadal year of 1990- the Indian Union, as … the data provided by the 91, 2000-01 and 2010-11 has been analyzed. Some ten Census of India, reveals.” (10) variables have been identified at district level In another place it remarks: “Regional disparities in West Bengal to analyze the level of agricultural among the States of the Indian Union as well as development. among the districts or regions within the same The existence of sharp variation in development State are quite marked and by itself would furnish had been recognized and brought to focus in 1971 Sarkar and Ghosh no cause for comment. This indeed is a problem has been in the range of 55 to 52%, though it was common to all developing countries of the world, as declining, but as the process of industrialization and also to many developed countries. But the extremely economic growth gathered momentum, the share of high degree of spatial imbalance that is manifested agriculture indicated a sharp decline and reached in West Bengal is something extraordinary”. a level of 22% in 2003-04 and 20% in 2006-07. Many development and growth theories have Comparison can be made between the positions of proved that regional disparities and imbalances agriculture in India with that in the other countries are inherent in the progress of development and as regards the share of agriculture in national their degree goes on changing with the stages income. In the United Kingdom and United States, of economic development. However, there are only 2 to 3% of the working population is engaged differences of opinion among the economists in agriculture; in France, the proportion is about about the pattern of regional disparities during the 7%; and in Australia, this is about 6%. processes of economic development. According It is only in backward and less developed countries to Myrdal (1957), the main cause of economic that the working population engaged in agriculture disparities in the strong ‘Backwash Effect’ and weak is quite high. For instance, it is 35% in Egypt, ‘Spread Effects’. Richer and progressive regions 59% in Bangladesh, 50% in Indonesia and 68% in attract net immigration, capital and trade from China. The more developed a country, the smaller other parts of the country and this movement by is the share of agriculture in national output. India, itself tends to favour these regions and disfavour having not yet reached the stage of an advanced of the other regions. Hirschman also expressed economy, has an agricultural sector which is still similar views, using the concepts ‘Trickling Down’ the dominated one in the country. and ‘Polarization Effects’ (Hirschman, 1958). However, there are differences in their approaches Indian agriculture and pattern of employment to development. Hirschman agrees in favour in the country of producing geographical imbalances through Agriculture dominates the economy to such an creation of development centers, but Myrdal stands extent that a very high proportion of working for strengthening the mechanization for spread population in India is engaged in agriculture. effects from the outset. (Rao, and Sundaram, 1972). Agriculture provided employment to 98 million This view as ‘concentration Cycle’ and was found people in 1951; the number of people working valid in some empirical studies. [Williamson (1965), on land (cultivators and agricultural labourers) Alonso (1968), Koropeekyj (1972)] have tested the increased to 235 million in 2001. In terms of validity of ‘Concentration Cycle’ and opined that the percentage, however, people working on land came process of economic development at national level down from 70 to 59 during the five decades between is seldom regionally balanced and trade-off exists 1951 and 2001. between the economic development at the national The Tenth Plan (2002-07) estimates that the level and reducing of regional disparities within agricultural sector still provides employment to 57% the nation. Regional disparities diverge initially of India’s work force and is the single largest private and converge later on because of market forces or sector occupation. It is, however, really disturbing deliberate policy measures in response to pressure that the proportion of agricultural labourers has from the less developed regions. As a result, there increased from 20 to 27% between 1951 and 2001 but is same kind of an inverted-U relationship between that of cultivators registered a decline from 50% to economic growth and inter-regional inequality. The 32%. This shows clearly the growing pauperization significance of agriculture in the national economy of the rural peasantry. can best explained by considering the role of agriculture under different heads as follows. Importance of agriculture for industrial development Share of agriculture in the national income Indian agriculture has been the source of supply of According to the Economic Survey 2003-04, between raw materials to our leading industries. Cotton and 1950-51 to 1960-61, the share of agriculture in GDP jute textile industries, sugar, flour mills, vanaspati Print ISSN : 0424-2513 484 Online ISSN : 0976-4666 Agricultural Development in West Bengal: An Inter–temporal Analysis and plantations, all these depend on agriculture In other words, prosperity of the farmers is also directly. There are many other industries which the prosperity of industries. Likewise, bad crops depend on agriculture in a direct manner. Many lead to a depression in business. Generally, it is of our small-scale and cottage industries like the failure in the agricultural front that has led handloom weaving, oil crushing, rice husking etc., to failure of economic planning in particular depend upon agriculture for their raw materials, periods. Agricultural growth has direct impact on together they account for 50% income generated in poverty eradication. It is also an important factor the manufacturing sector in India. in containing inflation, raising agricultural wages But then, in recent years, the significance of and for employment generation. agriculture to industries is going down as many Besides, the allied sectors like horticulture, animal new industries have come up which are not husbandry, dairy and fisheries have an important dependent on agriculture. Under the Five Year role in improving the overall economic conditions Plans, iron and steel industry, chemicals,