Economics Of Land-Use Transformation Through Tea Plantation A Case Study

I n trod u cti on : The econom y of t he Nort h B engal i s charact e ri zed by predom i nance of agri cul t ure and al l i ed s ect ors and a few indus t ri es bas ed on t ea, touri s m and ti m ber. Agri cul t ural act i vit i es domi nat e over i ndus t ri al act i vi t i es wi t h a l arge pool of t he tot al worki ng popul at i on i n t he regi on bei ng ei t her cult i vat ors or agri cul t ural l abourers and earni ng t hei r l i vel i hood from t he pri m ary s ect or act i vi ti es . In i ndus t ri al s ect or, apart from t ea and touri s m i ndus t ry, t here are no ot her indus t ry wort h m enti oni ng. The regi on i s char act eri zed by a weak i ndust ri al bas e as com pared t o ot her part s of t he s t at e. Cons equent l y, t he bes t as s urance of econom i c s ecuri t y of the rural fol k com es t hrough t he ri ght s of owners hi p and cul ti vat i on of l and whi ch i s t he onl y s ource of pres ent and fut ure s t ream s of i ncom e for t hem . However, t he regi on has been undergoi ng a proces s of l and us e convers i on for more than a decade. Thi s is a new phenom enon t hat has been pres ent for s everal di s t ri ct s of t hi s regi on. It is wort h not i ng t hat the t erm l and- us e t rans fer m ay have s everal connot at i ons . In t he cont ext of the pres ent st udy, i t refers to t he proces s of t rans fer of predom i nant l y paddy, pi neappl e and fol l ow l ands int o t ea pl ant at i on. The expans i on of l and area under t ea pl ant at i on underl yi ng t hi s phenom enon i s l argel y due t o s m al l hol der expans i on. As a m at t er of fact , t here has been a t rem endous prol i ferat i on of t he s m al l t ea growers duri ng 1994- 97. The di s t ri ct s i n whi ch t he l and- us e t rans fer phenom enon i s mos t l y vi s i bl e i ncl ude J al pai guri , Darj eel i ng (bari ng t he hi l l y t errai n), Nort h Di naj pur and s om e part s of C oochbehar di s t ri ct . However, the m agni t udes of l and us e changes have di s t ri ct vi s a vi s bl ock l evel vari at i ons . An overvi ew of th e p robl em : The prol i ferat i on of s m al l t ea gardens has arous ed cons i derabl e concern am ong t he peopl e of t hi s regi on over t he l as t coupl e of years . As a m at t er of fact , t here are m ai nl y t wo di s s enti ng voi ces am ong the peopl e over thi s is s ue - one is rai s ed from t he t radi t i onal agri cul t ural s ect or and t he ot her from t he t ea s ect or. F i rst of al l , t he prol i ferat i on phenom enon has l ed t o a decl i ne of l and area under t radi t i onal crop product i on and gradual i ncreas e of l and area under product i on of t ea. The t radi t i onal farm i ng s yst em of t hi s regi on, whi ch i s us ual l y percei ved to be s el f-s us t ai ned in nat ure, has been col l aps ed t o a cons i derabl e ext ent due t o t hi s fact or. Thi s coul d bri ng about t he probl em s of l and al i enat i on, as s et l es s nes s , incom e ins t abi l it y and j obl es s nes s of the s m al l hol der cul t i vat ors vi s a vi s agri cul t ural workers . The proces s m i ght al s o res ul t i n ot her s oci o-econom i c probl em s s uch as out mi grat i on, food i ns ecuri t y, increas ed i ndebt ednes s , decl i ne in t he st ock of vil l age com m ons (whi ch are s uppos ed to m eet the bi om as s dem and for li ves t ock t o a s i gni fi cant ext ent ) and t he s ubs equent decl i ne of li ves t ock hol di ng, t he wi deni ng gap bet ween ri ch and poor, t hreat eni ng s oci al s t abi l it y s o and s o fort h. M oreover, the proces s of l and-us e t rans fer m i ght put hi ndrance t o t he pos s i bi l i ti es of ext endi ng cul t i vati on of t radi t i on crops s uch as paddy, j ut e et c. not m erel y t hrough a reduct i on of t radi t i onal crop l and areas but even t hrough i nduci ng a change in choi ces of farm i ng (due t o negat i ve envi ronm ent al cons equenc es of s uch a proces s ) i n l and areas t hat are adj acent t o t ea pl ant at i on areas . Thus , t here is a percept i on t hat the whol e proces s funct i ons as a fact or l eadi ng t o m argi nal i s at i on and i m poveri s hm ent of peopl e li vi ng i n t he rural areas of t hi s regi on. S econdl y, t he prol i ferat i on of sm al l hol ders t ea has been m ade res pons i bl e for t he pres ent cri s i s i n t ea i ndus t ry. The mus hroom i ng growt h of t ea pl ant at i on i n s m all s cal e has l ed t o the es t abl i s hm ent of num erous bought l eaf fact ori es (B LF s ) in Nort h B engal i n the l as t t wo decades . B LFs got am pl e as s i s t an ce from sm al l t ea growers who s ol d t he l eaf t o B LF s at a throwaw ay pri ce i n m any i ns t ances . The Tea B oard cons i dered t hes e B LF s as cont ri but i ng t o the probl em s of t he i ndus t ry by l oweri ng t he qual it y s t andards and depres s i ng t ea pri ces . Accordi ng t o the Tea Board, the B LF s have no cont rol over t he m ai nt enance of green l eaf s t andards l eadi ng to poor t ea qual i t y, and operat e at a m uch l ower product i on cos t and t herefore, abl e t o di s pos e of t hei r t eas at very low pri ces . Thi s i s depres s i ng the overal l m arket

pri ces of t ea to t he det ri m ent of t he organi zed t ea indus t ry. It m ay be not ed in t hi s connect i on t hat t he B LF s t ook root i n Nort h B engal in t he 1990s . Even as 32 t ea es t at es i n Nort h B engal cl os ed down becaus e of l oss es , t he m em ber of B LF s went up from 22 in 1999 t o 74 i n 2004. B LF s now account for 24 percent of t he t ot al m ade t ea produced i n t he s t at e of Wes t B engal . In thi s cont ext , t he pres ent probl em is m ul ti di m ens i onal and needs t o be proved s ys t em at i cal l y. However, t here has not been any ri gorous st udy on t hi s s ubj ect ti l l t oday. On the cont rary, l it t l e at t ent i on has been gi ven t o t he ques t i on whet her t ea pl ant at i on ins t ead of t radi t i onal crop cul t i vati on i s an at t ract i ve l and us e of opti on i n t erm s s us t ai nabl e li vel i hood i m pl i cat i ons of poor peopl e in t he rural s ect or. M oreover, l i tt l e econom i c i ns i ght exi s t s on the nat ure of such t rans form at i on and the param et e rs whi ch gui de t he proli ferat i on of sm al l growers garden. Agai n, no st udy has yet been not i ced whi ch m ade an at t em pt t o as s es s t he envi ronm ent al im pact of t he l and- us e convers i on proces s on the l and- bas ed l i veli hood opport uni ti es of t he peopl e li vi ng i n vi l l ages s urroundi ng t ea pl ant at i on. The above di s cus s i on s ugges t s t hat t he l and- t rans fer probl em needs t o be s t udi ed care ful l y and t horoughl y from a s oci o-econom i c pers pect i ve as it has profound s oci o- econom i c i m pli cat i ons for t he t wo broadl y defi ned s ect ors of t he econom y of t hi s regi on, vi z t he agri cul t ure and t he t ea s ect ors . The pres ent res ea rch proj ect i s undert aken keepi ng t hi s end i n vi ew.

T h e Mod e of Lan d T ran s fer : The t wo pri nci pal m odes of l and t rans fer found in Nort h B engal are : i. ii . Land t rans fer t o t ea wit h t he change of owners hi p of l and Land t rans fer t o t ea wit hout t he change of owners hi p of l and.

Under t he fi rs t m ode, the l and were s ol d out t o the growers of t ea by t he vi l l agers who have t radi t i onal l y been sm al l hol der cul ti vat ors engaged i n paddy or ot her t ype of t radi t i onal crop cul t i vat i on for earni ng t hei r l i vel i hoods . M ost of them do not own l and except t hei r hom es t ead fol l owi ng l and t rans fer. The l and di s pos ed of by t he vi l l agers are uti l i zed ei t her for ext ens i on of es t abl i s hed t ea gardens (popul arl y known as proj ect gardens ) or for es t abl i s hm ent of new growers garden res ul ti ng i n a rapi d expans i on of t ea product i on i n t hi s regi ons . The s el l ers of l and now earn t hei r dai l y wages by worki ng in newl y es t abl i s hed t ea gardens vi s a vi s i n inform al s ect or at a com m ut abl e di s t ance from thei r pl ace of res i dence. In t he s econd cas e, t he l and owners , who are t radi t i onal l y ri ce growers or pi neappl e growers , ret ai ned t he owners hi p of l and but t hey have s wi t ched over t o t ea cul ti vat i on for a num ber of reas ons . It i s t o be not ed t hat s om e of them get i nvol ved in t ea cul t i vat i on excl us i vel y, whil e s om e ot hers t ake up t he cul t i vat i on of paddy and t he cul t i vat i on of t ea s im ul t aneous l y on s eparat e areas of l and under thei r owners hi p. Category of L an d T rans fer red to T ea : The l and t rans ferr ed t o t ea pl ant at i on can broadl y be cl as s i fi ed i nt o fol l owi ng cat egori es : -

i)

Vi rgi n land : In t hi s cat egory, vil l age wood l ot s , degraded fores t l and al l ot t ed or encro ached, t ri bal l and and governm ent fal l ow l and are i ncl uded i n whi ch l and rem ai ned unut i l i zed for agri cul t ural act i vi t i es .

ii) iii)

Crop rep l aced l an d : Thi s cat egory occupi es a m aj or port i on of t he area under l and-us e convers i on. S uch areas i ncl ude repl acem ent of paddy, j ut e, pi neappl e, veget abl e cul t i vat i on et c. Margi n al l and : In thi s cat egory, governm ent grazi ng l and, paddy nurs ery, hi gh l and paddy area, barren l and of vari ous nat ure can be i ncl uded. Thi s cat egory of l and requi res s ui t abl e rehabi l i t at i on before bri ngi ng under t ea. Howeve r, i n pract i ce i t was not fol l owed. Un s ui tab l e l and : In s om e cas es , i t is found t hat t ea was i nt roduced in s uch areas where t he l and i s not at al l s uit abl e for growi ng t ea com m erci al l y. S uch as fi l l ed up l ow l and, shal l ow l and of s andy are as , degraded l and us ed previ ous l y under vari ous purpos es ot her t han cul t i vat i on.

iv)

It m ay be not ed i n t hi s connect i on t hat m ost of the l and us ed by t he sm al l growers m ay be cons i dered as s econd grade l and for growi ng t ea. As a l at ecom er, t he s m al l s ect or vi rt ual l y found very li t tl e vi rgi n hi gh l and. It m ay al s o be not ed that l and t rans fer proces s has creat ed di s cont ent am ong t he l ocal peopl e i n m any i ns t ances . Thi s enforced t he governm ent t o com e up wi t h a l and pol i cy i n earl y 1990 wi t h t he ai m of s afeguardi ng the i nt eres t s of t he local peopl e. The fol l owi ng condi ti ons for l and t rans fer are form ul at ed under the l aw : 1) 2) 3) 4) It It It It i s not t o be pri m e agri cul t ural l and i s not t o be t ri bal l and does not fal l wit hi n t he Tees t a C om m andArea i s not fores t l and

An i ndi vi dual s eeki ng t o es t abl i s h a garden has t o m eet up thes e condi ti ons fai l i ng whi ch he woul d not get cl earan ce from t he l and revenue depart m ent and hi s garden woul d be t reat ed as i l l egal . M oreover, he coul d not get hi ms el f regi s t ered wi t h t he Tea B oard and hence coul d not t ake fi nanci al benefi t offer ed by t he B oard. It i s obs erved t hat m aj ori t y of t he s m al l growers gardens acros s t he di s t ri ct s of Nort h B engal are non-regi s t ered owi ng t o t he non- ful fi ll m ent of one or m ore of t he condi t i ons s ti pul at ed under t he l aw. In Nort h B engal , onl y 3% of t he t ot al s m al l s cal e t ea pl ant at i on are regi s t ered whi l e 97% are non- regi s t ered. Thi s is why the accur at e dat a on l and-us e t rans fer t hroughout t he regi on is not avai l abl e from t he governm ent s ource. Thi s pos es a s eri ous probl em for a res ea rch er. Accordi ng to an es t im at e m ade by t he Uni t ed Forum of Sm al l Tea Growers As s oci at i ons , t ea occupi es nearl y 18,000 hect ar e area in Nort h B engal i n sm al l t ea s cal e cul t i vat i on. Howeve r, the s m al l t ea growers are st i l l growi ng i n num bers t hroughout t he regi on. S oci o E con omi c B ack groun d of S mal l T ea G rowers : S m al l hol der t ea growers occupy a dom i nant pl ace i n the Nort h B engal t ea s cenari o. They have di vers e ident i t y, di ffer ent capabi l i t i es and out l ook dependi ng upon t h e background from whi ch t hey cam e unl i ke the bi gger count erpart s who have com m on bus i nes s background. The sm al l t ea growers are cat egori z ed on t he bas i s of t hree di s ti nct soci o- econom i c backgrounds .

1)

S ed en tary cu l ti vator : Growers of t hi s cat egory have adopt ed t ea cul t i vat i on wi t h an obj ect i ve of augm ent i ng t hei r i ncom e bes i des ens uri ng product i on of vari ous crops whi ch can be s afel y grown t o gi ve an adequat e, vari ed and pal at abl e year round di et for t he fam i l y. Labour com es m os tl y from fam i l y s ources , and t here are ti m es i n a year when fam i l y l abour is i nadequat e for doi ng crop hus bandry j obs properl y, t hereby neces s i t at i ng induct i on of addi ti onal l abour.

2)

E du cated ru ral you th : Growers of thi s group are m ore urbani zed i n out l ook. They us ual l y s hy away from engagi ng them s el ves i n growi ng of ot her crops except t ea due t o fancy at t ached t o t ea cul t i vat i on. They have more confi dence i n t hei r own judgem ent and feel l es s need for approval of ot her convent i onal farm ers . They are m ore concern ed wit h profi t m aki ng, m ore wi ll i ng t o t ake ri s ks and bet t er abl e t o t ake deci s i ons . E du cated you th from u rb an area : Growers of thi s group are res i dent s i n urban areas u ndert aki ng ot her com m erci al act i vi t i es . They are rel at i vel y wel l - off and for whom the cul t i vat i on of t ea i s a m eans of expandi ng t hei r bus i nes s bas e, and thus can be cal l ed as urban agri cul t uri s t s . There are wi de di fferen ces i n at t i t ude and obj ect i ves from thei r count erpart i n rural areas . They are l es s bound by convent i ons , m ore rat i onal , l es s fat al i s t i c and m ore wi l li ng t o t ake ri s ks and innovat e, s om e have hi gher as pi rat i on, great er need for achi evem ent and are ext rem el y eager to have forward li nkages (l i ke es t abl i s hm ent of t ea fact ori es , packagi ng of t ea) in fut ure. B es i des , corporat e s ect ors al s o purchas ed huge l and as they are forerunne rs in s t art i ng new t ea gardens in Nort h B engal and s om e bi g growers al s o are pl ant i ng t ea here.

3)

Profi l e of th e S mal l T ea G rowers : The sm al l t ea s ect or i n Nort h B engal began i n 1980s . It had m ade it s fi rs t apperan ce i n C hopra B l ock in Ut t ar Di naj pur di st ri ct . Growers hol di ng up to 10.12 hect ors under t ea are cons i dered t o be sm al l growers . M ai nl y the growers have m i grat ed from paddy, j ut e and pi neappl e. Sm al l t ea s ect or m us hroom ed i n Nort h B engal becaus e t ea was found to be m ore profi t abl e t hem ot her crops and coul d rem ai n rem unerat i ve for years t o com e. In t hi s cont ext , i t i s wort h m ent i oni ng t hat t he concept of growi ng t ea in s m al l hol di ngs was i ni t i al l y m oot ed by a few wel l es t abl i s hed t ea com pany, s uch as Duncans and J ayas re e t ea com pany of the B i rl a group o f i ndust ri es , as t hey st art ed m aki ng i n the l at e 1980s s m al l t ea garden i n the nam e of proj ect gardens under thei r owners hi p i n P hans i dawa and Naxal bari Bl ocks i n Darj eel i ng di s t ri ct and S adar M ai naguri and R ai ganj Bl ocks i n J al pai guri di s t ri ct . B ei ng encourag ed by t hi s phenom enon, a good num ber of growers from paddy, j ut e and pi neappl e s ect ors st art ed t aki ng up t ea cul ti vat i on on a s m al l s cal e bas i s wi t h the ai m of s ell i ng green l eafs to bi g t ea com pani es on an out grower bas i s . Thes e farm ers earned hands om e profi t s from t ea cul t i vat i on whi ch i nduced m ore and m ore vi l l agers t o abandon t he cul t i vat i on of t radi t i onal crops and s t art s wi t chi ng over to t ea cul t i vat i on t o get a s t eady i ncom e. It woul d be rel evant to not e in t hi s connect i on t hat pri or to s hi ft i ng t o t ea cul t i vat i on, t he growers had been faci ng a m ul t i t ude of probl em s wi t h t hei r crops s uch as t he abs ence wel l -organi zed and wel l -funct i oni ng m arket , non-real i zat i on of rem unerat i ve pri ces for the produce, t he l ack of pres erv at i on faci l i t i es , s o on and s o fort h. It is t hi s ki nd of si t uat i on t hat m i ght have been boost ed up the cul t i vat i on of t ea. Lat er on m any peopl e of bot h urban and rural ori gi n and incl us i ve of educat ed unem pl oyed yout h have com e up t o m ake s m al l grower gardens aft er obs ervi ng t he bount i ful and profi t abl e t ea m arket prevai l i ng at t hat ti m e. In the i ni ti al years , the hol di ngs were l es s , but duri ng 1994- 97 t he s m al l s ect or of Nort h B engal fl ouri s hed. The growt h m om ent um st i l l keeps goi ng whi ch furt her acc el er at es t he l and- t rans fer proces s . The accur at e dat a on the s m al l t ea growers of Nort h B engal is not avai l abl e. In 2001, a s urvey was done by t he depart m ent of Tea M anagem ent , Nort h B engal Uni vers i t y under the s pons ors hi p of Tea Board. The s urvey has reveal ed t hat t here are 877 s m al l

growers i n Nort h B engal . Whi l e st udyi ng the di vers i on of l and t o t ea, it reveal ed t hat t he t ot al area covered by new gardens com e to 4282.21 hect ars of whi ch act ual t ea pl ant at i on exi st ed i n 2988.79 hect ars . Thus , s everal hect ors of l and were s ti l l t o be brought under pl ant at i on. The dat a col l ect ed on di st ri ct wi s e di st ri but i on of s m al l t ea growers s hows that t he Utt ar Di naj pur di s t ri ct has the hi ghes t concent rat i on of new growers , foll owed by J al pai guri , Darj eel i ng and C oocbbehar. F inal l y, t he st udy of si ze di s t ri buti on of farm hol di ngs t hroughout the regi on has reveal ed t hat m aj ori t y of t he new grower gardens (66%)of thi s regi on has an area bel ow 2 hect ors . However, t here i s a s ubs t ant i al num ber of gardens (21%) wi t h the hol di ng s i ze of 2 t o 5 hect ors . F i nal l y, t here i s a rel at i vel y few num ber of gardens (13%) under t he hol di ng s i ze of 5 hect ors or above. However, t he report does not reveal t he t rue pi ct ure of l and t rans fer phenom enon; due t o non- cooperat i on from cert ai n s ect i on of growers , i t coul d not proj ect act ual fi gures . Nevert hel es s , t he report i s us eful t o get a feel of t he l and t rans fer probl em .

An indirect estimate of the districwise figure of small growers could be obtained from the petition made for N. O. C. of tea cultivation to the land and Land Reforms Department, Government of West Bengal. This is given in the following table :
Di s tri ct J al pai guri Darj eel i ng Ut t ar Di naj pur Coochbeha r T otal p eti ti on recei ved for N. O . C. T otal n o. of N.O .C. is s u ed

1860 1947 2005 129

650 890 482 47

B es i des t he above pi ct ure, t here i s inform at i on t hat s ubs t ant i al num ber of sm al l t ea growers have not yet s ubm it t ed appl i cat i on for regul ari zat i on of l and. In Nort h B engal onl y 53 8 s m al l t ea growers are regi s t ered wi t h Tea B oard. The unoffi ci al fi gure for t he num ber of s m al l t ea growers com es t o nearl y 20,000 t hroughout the regi on. O b jecti ves of th e S tu d y : The m ai n obj ect i ves of t he st udy are as fol l ows : 1) To i dent i fy and eval uat e t he param et ers t hat gui de t he proces s of l andus e convers i on i n t he form of prol i ferat i on of s m al l growers garden i n Nort h B engal . To anal yze t he effi ci en cy and profi t abi l it y of sm al l growers garden wi t h res pect to i nput us age and hol di ng s i ze. To exam i ne t he ques t i on of equi t y i nvol vi ng the l and t rans fer proces s t hrough a com pari s on s oci al benefi t s deri ved (s uch as generat i on of i ncom e and em pl oym ent , creat i on of auxi l i ary indus t ri es et c.) and s oci al cos t s incurred (s uch as cos t of l and al i enat i on and as s et l es s nes s , i ncom e ins t abi l it y et c.) from s uch a proces s . To as s es s t he envi ronm ent al ext ernal i t y im pact of t he l and t rans fer proces s on t he out put and product i vi t y of t radi t i onal crop l and areas of adj acent vi l l ages whi ch have rem ai ned outs i de thi s proces s .

2) 3)

4)

5)

To exam i ne whet her t he s m al l t ea s ect or vi s a vi s t he bought l eaf fact ori es coul d be m ade res pons i bl e for t he pres ent cri s i s i n t ea i ndus t ry.

S ou rces of Data an d Meth od ol ogy of th e S tu d y : The st udy i s pl anned to be conduct ed on t he bas i s of an em pi ri cal anal ys i s of i nform at i on about the econom i cs of l and-us e t rans form at oi i n t hrough non-t radi t i onal s m al l s cal e t ea pl ant at i on i n s el ect ed areas in t he di s t ri ct s of Ut t ar Di naj pur, Darj eel i ng, J al pai guri and C oochbehar. B ot h pri m ary and s econdary dat a wi ll be us ed t o m eet t he dat a requi rem ent of the s t udy. F or t he coll ect i on of pri m ary dat a, fi el d i nves t i gat i ons , s uch as hous ehol d s urveys , and i nt ervi ews wi t h knowl edgeabl e pers ons i n t he l ocal i t y are t o be us ed. Three s et s of ques t i onnai re are t o be s et for dat a col l ect i on : (i ) one for peopl e l i vi ng in vi l l ages where l and t rans fer t ook pl ace; (i i ) t he s econd one for peopl e li vi ng i n vil l ages s urroundi ng t ea pl ant at i on; (i i i ) t he l as t one for s m al l t ea growers . Two ques t i onnai re (i ) and (i i i ) are al m os t fi nal i zed whil e t he t hi rd one (i ii ) is under preparat i on.

The pres ent st udy wi l l al s o m ake us e of s econdary dat a. Im port ant sources of s econdary dat a are report of the depart m ent of t ea m anagem ent , Nort h B engal Uni vers i t y, vari ous report s and bul l eti ns of Tea B oard and ot her s econdary m at eri al s col l ect ed from int ernet . As a part of the t ot al res earch proj ect , one fi el d s urvey has al ready adm i ni s t ered and i nform at i on was col l ect ed on t he fol l owi ng it em s : i) ii) ii i ) i v) v) vi ) C omm uni t y wi s e di s t ri buti on of s am pl e hous ehol ds ; Nat ure of t he l and t rans ferr ed t o t ea pl ant at i on; S t at us of t he l and t rans fer red to t ea pl ant at i on; Vi l l age wi s e di st ri but i on of t ot al l and t rans fer; J ob creat i on agai ns t l and t rans fer; M onet ary com pens at i on recei ved agai ns t l and t rans fer.

T h e S tu d y Area : The s t udy was conduct ed i n s i x vi l l ages vi z. Bhel kuj ot e, Nayanj ot e, Tam bari , Dugi dhura, B husi vi t a and Tarbandha al l i n t he J al as Ni zam t ara P anchayat under P hans i d ewa B lock Devel opm ent area i n t he Darj eel i ng di s t ri ct of Wes t B engal . The vil l ages are found t o be m ul ti - com m uni t y i n nat ure, bei ng com pri s ed of bas i cal l y t hree com m uni t i es , vi z. M us l im s , Tri bal s and B engal i s i ncl udi ng a s ubs t ant i al R aj bans hi popul at i on. The s am pl e dat a s how that 44 perc ent of t he res pondent s of t he s urvey area bel ong t o M us l im com m uni t y. The R aj bans hi com m uni t y com pri s es 25 percent and t he Tri bal s m ake up 21 percent of the s am pl e t ot al . The res t of t he hous ehol ds m ai nl y bel ong t o backward cas t cons t i t uti ng 12 percent of t he tot al . The occurren ce of t he l and t rans fer phenom enon has been found t o be s i gni fi cant for t he M us l im s , R aj bans hi and the Tri bal com m uni t y. M os t of t he vi l l agers are dependent on agri cul t ure. They us ed t o work as owner cul t i vat or, s hare- cropper and agri cul t ural l abour. There i s a dom i nance of sm al l hol der s ubs i s t ence agri cul t ure and cul t i vati on of t radi t i onal crops i n the regi on. However, agri cul t ure does not provi de adequat e l i vel i hood opport unit i es to t hem . M oreover, i rri gat i on faci l i t y is nearl y abs ent , and t he rai n wat er i s the m ai n s ource of i rri gat i on. The fi el ds are us ual l y l eft fal l ow aft er a s i ngl e cul t i vat i on of paddy and j ut e. As a

m at t er of fact , t he s i ze of l and hol di ng for a m aj orit y of t he popul at i on is not econom i cal l y vi abl e enough to s us t ai n t he hous ehol d. The s m al l si ze of hol di ng i s a m aj or probl em for t hem t o carry out t radi t i onal crop product i on on a s ust ai nabl e bas i s . B es i des , t he ri si ng i nput pri ces and s t agnant agri cul t ural crop pri ces , t he reduced acces s t o ins t it ut i onal credi t and ot her agri cul t ural ext ens i on s ervi ces (t he suppl y- si de as s i s t ance) m ake t hi ngs m ore di ffi cul t for t hem . Hence peopl e have to l ook for al t ernat i ve em pl oym ent opport uni ti es . Li ve s t ock reari ng i s an i m port ant com ponent of t he econom y i n t he s t udy area. Wom en are s ubs i di ary i ncom e earne rs and perform t he funct i on of hous e keepi ng. Very li t t l e i nfras t ruct ur al faci l i t i es are avai l abl e i n the vi ll ages . There are no banks , hi gh s chool s , or m et al l ed road connect i ng t he vi l l ages t o urban cent ers . El ect ri ci t y i s avai l abl e i n t he vi l l ages , but m os t of t he hous es are not el ect ri fi ed. Li t eracy i s i nadequat e i n t he vi ll ages . S u m m a r y o f t h e F i n d i n gs : L a n d t r a n s f e r h a s b e e n f o u n d t o b e a s t r o n g p h e n o m e n o n i n vi l l a g e s w h e r e survey was conducted. However, the magnitudes of land transfer have varied across the villages. In all the villages, it is predominantly the small holders who have transferred land through sale to a large tea company. Moreover, it is largely the m i n o r i t y g r o u p s ( M u s l i m s , R a j b a n s h i s a n d T r i b a l s ) w h o h a v e e x p e r i e n c e d t hi s phenomenon. The numerical figure for total land transfer comes around 118 acres in this area. Two features of this phenomenon are worth noticing. First, out of the total land area that has come under tea, 90 per cent are crop replacing land and 10 per cent are fallow land. This definitely indicates a fall in area under cultivation of t r a d i t i o n a l t y p e s o f c r o p s s u c h a s p a d d y , j ut e e t c . f o l l o w i n g l a n d t r a n s f e r . S e c o n d l y , the ownership holding has been found to the largest category of land which have transferred to tea and it comprises 65 percent of the total area. This is followed by vested land comprising 25 percent, and patta land comprising 10 percent. It is i m p o r t a n t t o n o t e i n t h i s c o n n e c t i o n t h a t m a n y r e s p o n d e n t s d o n ot o w n l a n d e x c e p t t h e i r h om e s t e a d f o l l o w i n g l a n d t r a n s f e r . P ri m a r y f i n d i n g s s u g g e s t t h a t t h e r e a r e a t l e a s t t h r e e r e a s o n s b e h i n d s u c h a p h e n o m e n o n . T h e v i l l a g e s a r e l o c a t e d o n t h e r i g ht bank of the Teesta Canal and are having no irrigation facilities. This means that v i l l a g e r s a r e d e p e n d e n t u p o n r a i d - f e d m o n o c r o p p i n g a n d w h a t e v e r s u bs i d i a r y activities are available, which are less than the required. Moreover, the land in w h i c h a g r i c u l t u r a l o p e r a t i o n i s c a r r i e d o u t b y t h e vi l l a g e r s l i e i n a r e a s w i t h a l o w a r a t e o f yi e l d . B e s i d e s , t h e r e i s a p r e v a l e n c e o f s m a l l a n d t h e m a r g i n a l h o l d i n g s . Thus, the non-profitable agricultural operation with respect to traditional crops and the lack of awareness with regard to cultivation of non-traditional crops such as tea have led them to sell out their land. Secondly, in many cases, high drains have been d u g u p b y t h e t e a g a r d e n t o a v o i d w a t e r l o g g i n g i n pl a n t a t i o n a r e a s . T h e s e d r a i n s take away water from the land surrounding the plantation area. This negative externality factor has also been found to be responsible for land transfer. Finally, the proposed establishment of new plantation has been succeeded in creating an a t m o s p h e r e o f o pt i m i s m a m o n g t h e vi l l a g e r s a b o u t l a r g e r e c o n o m i c b e n e f i t s i n t h e form of higher wages, more workdays during a year, and more secure form of employment than the traditional agriculture is capable of providing to them. This factor has contributed significantly to the process of land transfer. L a n d T r a n s f e r - L ab o u r M a r k e t L i n k a g e s : The information elicited from the respondents suggest that there are strong linkages between land-use changes and labour market out come. The process of land t r a n s f e r i s a c c o m p a n i e d b y t h e g e n e r a t i o n o f e m p l o ym e n t o p p o r t u n i t i e s f o r t h e affected people, besides the payment of monetary compensations which varies from R s . 9 , 0 0 0 / - R s . 1 5 , 0 0 0/ - p e r a c r e . T h e y h a v e g o t j o b i n t h e t e a p l a n t a t i o n e i t h e r a s a permanent labour or as a casual labour depending upon the amount of land being

t r a n s f e r r e d . T h e n o r m t h a t w a s f o l l o w e d i n p r o v i d i n g e m p l o ym e n t w a s o n e permanent job and one temporary job against a transfer of one acre of land, and one temporary job only against a transfer of less than one acre of land. It is found that 2 0 4 j o bs h a v e b e e n c r e a t e d a g a i n s t a t r a n s f e r o f 1 1 8 a c r e s o f l a n d . T h e r a t i o o f j o b creation to land transfer is calculated to be 1.72:1. As far as the nature of job creation against land transfer is concerned, there is a dominance of casual jobs over the permanent jobs. In percentage terms, 62 percent of the total jobs are of the casual nature and 38% of the permanent nature. It would be relevant in this context t o m a k e a di s t i n c t i o n b e t w e e n t w o c a t e g o r i e s o f l a b o u r e r s . A p e r m a n e n t w o r k e r i s o n e w h o i s s u p p o s e d t o g e t e m p l o ym e n t g u a r a n t e e a l l t h r o u g h t h e y e a r o n t h e fulfillment of certain conditions being laid down by the tea garden authority. He is s u p p o s e d t o g e t a d a i l y w a g e o f R s . 4 8 . 6 2 p l us n o n - w a g e b e n e f i t s ( l i k e f u e l w o o d , house repairing allowances, free medical treatment etc.). On the contrary, a casual w o r k e r i s o n e w h o m a y o r m a y n ot h a v e e m p l o y m e n t g u a r a n t e e a l l t h r o u g h t h e y e a r . It is found that there are two categories of casual labourers. One category of casual labourers are paid a daily wage to the tune of Rs. 50.25 against a minimum plucking o f 1 8 k g . g r e e n l e a f pl u s s o m e n o n - w a g e b e n e f i t s w h i c h a r e f a r l e s s g e n e r o u s a s compared to that of their permanent counterparts. However, they are seen to be absorbed in jobs for nearly the entire year. The other category of casual labourers a r e p a i d o ut w a g e s o n l y a n d n o n o n - w a g e b e n e f i t s . T h e y a r e e m p l o y e d b y t h e g a r d e n as and when required. The basic distinction between two categories of casual labour is that while the employment of one category is temporary in nature, the employment of the other is purely seasonal. T h e s hi f t o f l a n d u s e f r o m t r a d i t i o n a l a g r i c u l t u r e t o t e a p l a n t a t i o n h a s c r e a t e d significant changes in women work participation in agricultural operation. Before land transfer, women were subsidiary income earners and performed the function of house keeping. They were being occasionally involved in small-scale marketing. Land transfer has opened up new opportunities for female work force in the rural region. An important reason for this is that women are more efficient in plucking work than the men. As a result of this, there is greater involvement of women in economic activities outside the household. Thus, the opportunities available through tea plantation are supposed to increase the economic power and social status of women. C o n c l u s i on : This paper has aimed to explore the economics of land-use change through tea plantation in North Bengal. It has used a case study to explore the nature and cause of land-use transformation and the economic benefits and costs associated with it. T h e c a s e s t u d y h i g h l i g h t s t h a t e c o n o m i c b e n e f i t s t o t h e r u r a l p o p ul a t i o n s a r e s i g n i f i c a n t i n a n um b e r o f w a y s . T h e r e i s n o d o u b t t h a t t h e l a n d t r a n s f e r p r o c e s s h a s led to the destruction of some traditional types of agricultural jobs. But this loss of j o b o p p o r t u ni t i e s a r e c o m p e n s a t e d t o a s i g n i f i c a n t e x t e n t b y a l t e r n a t i v e j o b opportunities created by tea plantation. Moreover, the tenure of newly created jobs is much longer than before during a year in many instances. Thus,it can be said that t h e t h e s i t u a t i o n i s n ot w o r s e t h a n b e f o r e a t l e a s t i n t e r m s o f e m p l o y m e n t g e n e r a t i o n v i s a v i s e m pl o y m e n t g u a r a n t e e . S e c o n d l y , t h e t e a pl a n t a t i o n h a s l e d t o e m p l o ym e n t diversification in the form of opening up job opportunities for both women and men, which were previously monopolized by men. It has been found that there is a significant rise in the rate of female work participation in newly created jobs. The case study also helps to explore the negative consequences underlying this phenomenon. One important finding of the study is that most of the permanent works are females while most of the casual workers are males. One important reason

f o r t h i s s o r t o f o ut c o m e i s t h a t i n c o m e f r o m t e a g a r d e n i s n o t e n o u g h f o r subsistence. Moreover, there is no evidence of tea garden related auxiliary economic activities to support subsistence of the family. Thus, the family has to look for subsidiary income sources which have been seen to be available at commutable distances from the place of residence of the family. Since it is more convenient for m a l e m e m b e r s o f a f a m i l y t o c o m m ut e , t h e y h a v e p r e f e r r e d t o w o r k a s c a s u a l l a b o u r e s . T hi s i s c l e a r l y i n d i c a t i v e o f p o o r l i vi n g c o n d i t i o n a n d i n c o m e i n s t a b i l i t y of the people even after the occurrence of land transfer. Again, there is a clear evidence of deprivation of the tea garden workers (both permanent and casual) in terms of the disparity between the benefits that the workers were promised to derive and that they are actually deriving now. The range of fringe benefits is very narror in the tea plantation in comparison to the provisions under the plantation Labour Act. This probably accounts for the small proportion of non-wage labour costs in total labour costs in new growers garden.

Distribution of Respondents by Community : Village Bhelkujote Nayanjote Tarabari Dugidhura Bhusivita and Tarbandha Total % Distribution of Total Muslim 42 6 48 44 Tribal 3 11 3 4 21 19 Rajbanshi 7 17 1 2 27 25 Others 1 10 2 13 12 Total 53 38 10 4 4 109

Job Creation Against Land Transfer : Village Bhelkujote Nayanjote Others Total % Distribution of Total Job Creation against Land Transfer Permanent Casual Total 37.00 31.00 10.00 78.00 38.23 56.00 47.00 23.00 126.00 61.77 93 78 3 204 100

C a t e g o r y o f L an d T r a n s f e r r e d t o T e a P l a n t a t i o n Village Bhelkujote Nayanjote Others Total % Distribution of Total Total Land Transfer (In acres) 52.40 50.55 15.15 118.10 Ownership Land (In acres) 34.73 34.19 7.95 76.87 65.08 Vested Land (In acres) 13.50 14.36 1.40 29.26 24.77 Patta Land (In acres) 3.98 2.00 5.80 11.78 9.97 Land Under Bargadars (In acres) 0.19 0.00 0.00 0.19 0.16