Agricultural Production

Tanmay Mondal
IIM graduate, Batch of 2014


In West Bengal, 68 per cent of the population is dependent on agriculture for their livelihood. It is thanks to the farmers that West Bengal is a rice-surplus state and the number one producers of rice in the country. Naturally, the State’s policies would be focused on agriculture.

Under the Mamata Banerjee led West Bengal Government, the State’s performance in agriculture has been remarkable. The farmers are receiving good returns on investment for rice. At the same time, the production of cereal has increased from 148 lakh tons in 2010-11 to 173 lakh tons in 2013-14. This increase in production, despite the thrust in production of low-yielding fine rice, is especially noteworthy. The Mamata Banerjee led West Bengal Government has also taken initiatives to increase the export of coarse rice and consequently increase the production of fine rice.

To increase the overall agricultural production with major focus on fine and aromatic rice- which brings higher revenue to the farmer, the Government has implemented several steps.

Purification and distributions of seeds: The government has started purification of the Tulaipanji variety of seeds as well as the distribution and increase in the area of production.

Exhibitionary fields: The government is providing training in modern technology with high quality seeds, fertilizers and other agricultural implements in agricultural exhibitionary fields of 4, 66,038 hectares.

Hybrid corn: The government is encouraging farmers to grow hybrid corn, peanut and pulses, through training in modern farming in Purulia, Bankura and Paschim Medinipur districts.

Meteorological centres: The work of setting up of 145 automatic agro-meteorological centres across the State have been started, of which, the construction of 47 automatic meteorological centers have already been completed.

Distribution of farm equipment: Providing tractors, power tillers, power reapers, pump sets to 67,186 of farmers at government subsidized price and direct transfer of government subsidy to the farmers’ account for purchasing small agricultural equipment has been successfully made available for the first time. The government has also started the ‘Aamar Phasal and Aamar Gola’ scheme under which one time financial grants are being given to small and marginal farmers for storage facility for their produce.

Agro-education: With the objective of promoting agro-education, new campuses of the State Agricultural University have been opened in Burdwan and Bankura districts. Additionally, an agricultural college will soon open its gates at Tapan, Dakshin Dinajpur.

State Seed Laboratories: These laboratories have been opened at Krishnanagar and Bankura. To promote modern scientific education in agriculture, ‘Matir katha’- a unique initiative, has been stated by Department of Agriculture, Government of West Bengal. This project aims at disseminating information on agriculture, new government programmes, VDOs relating to agro-extension, educational documentary films and such, to farmers with the help of modern technology. This serves the objective of agricultural extension and rural development.

Crop Insurance: 15 horticultural crops have been brought under the purview of crop-insurance. This initiative has encouraged farmers to cultivate these crops.

Onion-Farming: West Bengal produces nearly 3.04 lakh tones of onion during the rabi season. The estimated demand is around 3.33 lakh tones. To be self sufficient in demand, the Government of West Bengal has initiated onion production during the kharif season.

Revenue Collection

Samprati Motghare
IIM graduate, Batch of 2014


When the new Government came to power in West Bengal in 2011, the fiscal condition of the State was in disarray. There was a huge debt burden of about Rs 2 lakh crores and the GSDP growth rate was way below national average. However, in the last three years, there has been a remarkable improvement on the economic front.

For any state, there could be three ways to increase revenue generation. They can increase the tax rates or increase the number of tax-payers or else have a combination of both. Increasing the tax rates is the easiest way out as it does not need any investment in improving the tax collection machinery. In order to bring about an increase in the number of people who pay taxes, it becomes imperative to build new avenues and bring new systems for making the whole operation accessible and affordable to the masses.


What do the numbers say?

From 2004-05 to 2010-11, West Bengal’s own tax revenue collection hovered around 4.2-4.5% of Gross State Domestic Product (GSDP). Financial year 2011-12 witnessed the collection to grow to 6.26% of GSDP, followed by 7.50% in 2012-13 and 7.9% in 2013-14. This shows that the new government has taken tax collection to a different level altogether.

Till 2010-11, West Bengal had tax revenue of Rs 21,128 crores which by the end of FY 2013-14 is estimated to touch Rs 39,100 crores, showing a spectacular growth of close to 85% in 3 years. A closer look at the numbers show that Y-O-Y growth touched a maximum of 31.56% in 2012-13, though it has remained impressive at 18.03% in 2011-12 and 19.18% expected in 2013-14.

Another important factor to consider is the decrease in Central Government’s Grant-in-Aid which was close to 11% in 2012-13 over 2011-12. This shows that the state government is constantly trying to reduce revenue deficit by increasing Own Tax Revenue collection without actually increasing tax-rates. These facts point to the seriousness of West Bengal government towards the WBFRBM Act of 2010. A significant sum of Rs 86,000 Cr has also been paid to the Central government as per the debt service obligations in the last 3 years.


Technology has helped in making it possible

West Bengal was able to raise its tax collection during a period of economic downturn and reduced profit margins for companies because of its e-governance efforts. By making every registered dealer who has to pay tax worth Rs 2 Lakh or more to make payments only electronically, government has succeeded in increasing compliance and there by plugging out possible channels of leakages. The website of West Bengal’s directorate of commercial taxes is quite user friendly and offers a range of services to the citizens. A growth of 60% in tax-revenue (in 2012-13) through stamp and registration accompanied by 17% growth in sales tax collection exemplifies how citizens favour the new way of availing government services.