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

Author Credentials

O P Shukla

• Championed the New U 283

clone and U 283 Turbo. Giving world class output.

• Authored 6 published papers in

National / International journals/ conferences

• Visiting France (Euca 2108) to

present research findings on Euca productivity and growth pattern.

• Have visited plantations in

Vietnam, Indonesia, Malaysia, Gabon, South Africa, Mozambique, Myanmar, etc.

V Kumaraswamy

• Growing Plantations in Myanmar.
• Extensive experience in Vietnam

plantations – visited more than 15 sites incl NE, NW and Middle Vietnam and seen their total life cycle.

• Visited plantations in S Africa

Mozambique, Swaziland, Indonesia.

• Discussions with Govt. officials of

Gabon, SA, Swaziland, Myanmar,

• Angola. And private parties in

Uganda, Mozambique, Rwanda, Tanzania

• Author of Making Growth Happen in

India (Sage)

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Mist Chamber Infrastructure at CPM Poly house with mother plants Open nursery at CPM Clonal production capacity at CPM: 100 Lacs & at JKPM: 165 Lacs per annum Inside view of State of art mist chamber

Nursery at Songadh, Tapi

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2.5 Year old subabul plantation at Bardoli, Gujarat 2 Year old CPMU283 turbo Eucalyptus clonal plantation at Surat, Gujarat

Total Plantation coverage at CPM: 53000 Ha. .

Euca Clones in the Field

Total Plantation coverage at CPM: 114600 Ha.

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Myanmar Plantations

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Why Tribal Areas are Poor

• Low or No skills
• Only income comes

from Land

• Productivity of Land

very poor

• Green / Carbon

value where it exists is not compensated

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With GVA of Rs 8477/Ha what can anyone achieve?

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

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Alternative Models

Vietnam

• Land owned and leased out by
• Government. Previously barren.
• Clonal development responsibility :

Government

• Rent : Governments revenue thru

Royalty on Harvest

• Seeds/Clones are bought by Farmers
• 30 acres for 30 years thru extendable

leases

• Penalty: uncultivated land taken away
• No pricing intervention
• No restriction on end use of products
• r movement across states.
• Govt boldly developed plantation

first without mindful of consequences.

Indonesia, Myanmar (Corporate Leasing)

• Large tracts of land leased to
• Corporates. Maximum known is

272,000 Ha.

• Land includes those which are

currently densely forested.

• 30-70 years
• Contractual obligations include –

free access, roads, schools, some development obligations, maintain bio diversity, etc.

• Land rent + royalty
• Mainly focused on pulp and

paper industry.

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Alternative Models

Current Indian Model

• Land owned by farmers – small sizes

and lack of economies of scale. Leasing from farmers not allowed

• No contracts permitted or

enforceable – corporates are not sure

• f getting back what they have

promoted

• Restriction on land holdings for

agriculture (50 acres) except tea, rubber and coffee plantations – fragments and makes it uneconomical

• Clonal development by corporates
• Aggregators buy crops at last stage

and supply to corporates – disproportionate compensation to them.

JV between Govt and Corp.

• Degraded forest owned by Govt.
• Area to be 10,000 Ha. Minimum

patch of 100 Ha.

• Govt to get a share in final harvest as

compensation

• JV should be for 30-50 years
• JV agreement between FDC /Govt

and Corporate

• Details given separately

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Vietnams Wood Chip Exports 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

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Target Industries

Which industries

• Food processing industry,
• Furniture and building

Products,

• Energy industry Bio diesel (shd

be given the status like Solar),

• Agri-crops, Sugar, Soya,

Vegetable oil,

• Seeds,
• Plywood, Pulp and Paper

Manufacturers, Rubber,

• Commercial plantation like

Tea, Coffee, etc.

What Crops

• Vegetables and fruits that are used by

the likes of Pepsi, packaged snacks,

• Commercial crops,

– Palm, – Euca, – Acacia (various), – Casuarinas, – Poplar, – Bamboo – Subabool, etc. Mining of whatever kind – sand, minerals on or below ground strictly not to be allowed.

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Cost benefit for 1 Lac Ha. - Various Species

Crop Unit Beneficiary Eucalyptus clone Old Eucalyptus clone Casuarina clone Subabul Acacia 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 harvesting, debarking + cost of transportation Rs/MT 5400 5100 5100 5100 5200 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 Tribals 90 150 90 60 120 Seeds/seedlings/clones, labour cost (Pit digging, planting, weeding, fertilizer application, weeding etc) Yearly Tribals 377 377.06 404.48 483.73 400.08 Cost of cutting, debarking & transportation to mills

• Rs. Crore

Tribals/ Transport companies 960 1200 750 750 960 Cost of fertilizers

• Rs. Crore

Other 203 203 215 335 247 Interest & Insurance during Gestation Rs Crore Banks/ Financiers 345 652 359 426 691 Rent Rs Crore Govt/ Panchayat 150 250 150 150 250 Total cost Rs Crore 2324.65 3032.06 2168.80 2404.74 2867.65 Oversight Cost Rs Cr (10 %/5%) 232.46 151.60 108.44 120.24 143.38 Total Costs

• Rs. Crore

2557.11 3183.66 2277.24 2524.97 3011.03 25-06-2018 OP Shukla/V Kumaraswamy 12

Cost benefit for 1 Lac Ha. – Key Statistics

Crop Unit Eucalypt us clone Old Eucalyptu s clone Casuarina clone Subabul Acacia 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 per Ha 380 440 350 320 360 Total Employment Generated (@150 Days per annum per person) Manday in cycle 84444 58667 77778 71111 48000 Total wages per annum @ Rs 178/manday Rs.Cr. 225.47 156.64 207.67 189.87 128.16

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Key Design Imperative

The scheme has to be marketed as

• Programme to Improve Green Cover
• Programme to Create Tribal employment
• Can we add Mean Annual Biological or Green

Accretion also as one of the criteria in definition of forest (or objective to be achieved)

• Shed Audit mindset or excessive fine tuning
• MP Protected Forest Rules sec 9(2) – excessive prescription. It

should have been in the training manual

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Design Imperatives

• 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

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