Employment for Tribals - presentation to NCST June 25, 2018 OP - PowerPoint PPT Presentation

Employment for Tribals - presentation to NCST June 25, 2018 OP Shukla/ V Kumaraswamy

OP Shukla/V Kumaraswamy Author Credentials O P Shukla V Kumaraswamy • Growing Plantations in Myanmar. • Championed the New U 283 • Extensive experience in Vietnam clone and U 283 Turbo. Giving plantations – visited more than 15 world class output. sites incl NE, NW and Middle • Authored 6 published papers in Vietnam and seen their total life National / International journals/ cycle. conferences • Visited plantations in S Africa • Visiting France (Euca 2108) to Mozambique, Swaziland, Indonesia. present research findings on Euca • Discussions with Govt. officials of productivity and growth pattern. Gabon, SA, Swaziland, Myanmar, • Have visited plantations in Angola. And private parties in Vietnam, Indonesia, Malaysia, Uganda, Mozambique, Rwanda, Gabon, South Africa, Tanzania Mozambique, Myanmar, etc. • Author of Making Growth Happen in India (Sage) 25-06-2018 2

OP Shukla/V Kumaraswamy Nursery at Songadh, Tapi Poly house with mother plants Mist Chamber Infrastructure at CPM Inside view of State of art mist chamber Open nursery at CPM 25-06-2018 Clonal production capacity at CPM: 100 Lacs & at 3 JKPM: 165 Lacs per annum

OP Shukla/V Kumaraswamy Euca Clones in the Field Total Plantation coverage at CPM: 114600 Ha. 2 Year old CPMU283 turbo Eucalyptus clonal plantation at Surat, Gujarat 2.5 Year old subabul plantation at Bardoli, Gujarat Total Plantation coverage at CPM: 53000 Ha. . 25-06-2018 4

OP Shukla/V Kumaraswamy Myanmar Plantations 25-06-2018 5

Why Tribal Areas are Poor OP Shukla/V Kumaraswamy • Low or No skills • Only income comes from Land • Productivity of Land very poor • Green / Carbon value where it exists is not compensated With GVA of Rs 8477/Ha what can anyone achieve? 25-06-2018 6

OP Shukla/V Kumaraswamy Ways of Transferring GVA to Tribal Areas • Compensation for Carbon foot print – All carbon creating activity to buy certs – Tribal employment certs • Transfer low skill industries (mandate certain % to be sourced from tribal areas) – Beedi Rolling – Sanitary and other Hygiene products – Textiles and Garment finishing stage – Rural solar electrification • Tribal Tourism (make it compulsory for Graduate students to spend certain days there – will get greater appreciation of their concerns) • Plantation activity 25-06-2018 7

Alternative Models OP Shukla/V Kumaraswamy Indonesia, Myanmar Vietnam (Corporate Leasing) • • Land owned and leased out by Large tracts of land leased to Government. Previously barren. Corporates. Maximum known is • Clonal development responsibility : 272,000 Ha. Government • Land includes those which are • Rent : Governments revenue thru currently densely forested. Royalty on Harvest • 30-70 years • Seeds/Clones are bought by Farmers • Contractual obligations include – • 30 acres for 30 years thru extendable free access, roads, schools, some leases development obligations, • Penalty: uncultivated land taken away maintain bio diversity, etc. • No pricing intervention • Land rent + royalty • No restriction on end use of products • Mainly focused on pulp and or movement across states. paper industry. • Govt boldly developed plantation first without mindful of consequences. 25-06-2018 8

Alternative Models OP Shukla/V Kumaraswamy Current Indian Model JV between Govt and Corp. • • Land owned by farmers – small sizes Degraded forest owned by Govt. and lack of economies of scale. • Area to be 10,000 Ha. Minimum Leasing from farmers not allowed patch of 100 Ha. • No contracts permitted or • Govt to get a share in final harvest as enforceable – corporates are not sure compensation of getting back what they have • JV should be for 30-50 years promoted • JV agreement between FDC /Govt • Restriction on land holdings for and Corporate agriculture (50 acres) except tea, rubber and coffee plantations – • Details given separately fragments and makes it uneconomical • Clonal development by corporates • Aggregators buy crops at last stage and supply to corporates – disproportionate compensation to them. 25-06-2018 9

Vietnams Wood Chip Exports OP Shukla/V Kumaraswamy 2000-2014 Benefits (1998-2010) 1. 14 Million Ha planted 2. 20 lacs employment for farmers in Rural areas 3. No 1 wood chip exporter; 7 million Tn; $ 900 million 4. 3.5% increase in forest cover 25-06-2018 10

Target Industries OP Shukla/V Kumaraswamy Which industries What Crops • • Vegetables and fruits that are used by Food processing industry, the likes of Pepsi, packaged snacks, • Furniture and building • Commercial crops, Products, – Palm, • Energy industry Bio diesel (shd – Euca, be given the status like Solar), – Acacia (various), • Agri-crops, Sugar, Soya, – Casuarinas, – Poplar, Vegetable oil, – Bamboo • Seeds, – Subabool, etc. • Plywood, Pulp and Paper Manufacturers, Rubber, Mining of whatever kind – sand, • Commercial plantation like minerals on or below ground strictly Tea, Coffee, etc. not to be allowed. 25-06-2018 11

OP Shukla/V Kumaraswamy Cost benefit for 1 Lac Ha. - Various Species Eucalyptus Old Eucalyptus Casuarina Crop Unit Subabul Acacia Beneficiary clone clone clone Assumptions Years to Maturations/ Rotation Year 3 5 3 3 5 Yield MT/Ha 60 75 50 50 60 Market price- Basic Price+ cost of Rs/MT 5400 5100 5100 5100 5200 harvesting, debarking + cost of transportation Realisation For 1 Lac Ha. Rs Crore 3240 3825 2550 2550 3120 Costs Land Preparation One time Tribals 200 200 200 200 200 Ploughing & harrowing Yearly 90 150 90 60 120 Tribals Seeds/seedlings/clones, labour cost Yearly 377 377.06 404.48 483.73 400.08 (Pit digging, planting, weeding, fertilizer application, weeding etc) Tribals Cost of cutting, debarking & Rs. Crore Tribals/ 960 1200 750 750 960 transportation to mills Transport companies Cost of fertilizers Rs. Crore Other 203 203 215 335 247 Banks/ Interest & Insurance during Rs Crore 345 652 359 426 691 Gestation Financiers Rent Rs Crore Govt/ 150 250 150 150 250 Panchayat Total cost Rs Crore 2324.65 3032.06 2168.80 2404.74 2867.65 Oversight Cost Rs Cr (10 232.46 151.60 108.44 120.24 143.38 %/5%) Total Costs Rs. Crore 2557.11 3183.66 2277.24 2524.97 3011.03 25-06-2018 12

OP Shukla/V Kumaraswamy Cost benefit for 1 Lac Ha. – Key Statistics Old Eucalypt Casuarina Crop Unit Eucalyptu Subabul Acacia us clone clone s clone Revenue Per MT 5400 5100 5100 5100 5200 Costs Per MT 4262 4245 4554 5050 5018 GVA per annum Rs.Cr. 1080.00 765.00 850.00 850.00 624.00 Employment per Ha Manday 380 440 350 320 360 per Ha Total Employment Manday 84444 58667 77778 71111 48000 Generated (@150 Days in cycle per annum per person) Total wages per annum Rs.Cr. 225.47 156.64 207.67 189.87 128.16 @ Rs 178/manday 25-06-2018 13

OP Shukla/V Kumaraswamy Key Design Imperative The scheme has to be marketed as o Programme to Improve Green Cover o Programme to Create Tribal employment o Can we add Mean Annual Biological or Green Accretion also as one of the criteria in definition of forest (or objective to be achieved) o Shed Audit mindset or excessive fine tuning MP Protected Forest Rules sec 9(2) – excessive prescription. It o should have been in the training manual 25-06-2018 14

Design Imperatives OP Shukla/V Kumaraswamy • Simplicity of design – reason for Vietnams success – A policy to achieve 16 objectives ; Don’t displace people (reason for Brazils failure) • Create Markets but don’t interfere in pricing • No minimum prices or rent – only guarantee should be tribals employed • Sense of ownership – over processes and standing crops for the locals essential • Demonstration Effect – Model farms and stories essential to build for spreading the message • Even single or Mono bid should be accepted and proceeded with • Single agency for clearance and monitoring 25-06-2018 15