(On April 24th '06 in the Kisan Panchayat held in Dist. Sangrur, AIKMS presented a paper written by Com. S. S. Mahal. The paper titled "Development vs. Displacement: Whose Development and Whose Displacement?" touched on different aspects of the issue of displacement while concretely dealing with the problem in the context of Punjab. Here we are reproducing excerpts from that paper.  -Editor)

It is argued that Punjab has reached climax in agriculture and there is no possibility of development in this sector. It is also said that industrial development is a must for development of Punjab, from agricultural state it must go on to become an industrial state. Industrialization needs land, hence displacement is very necessary for industry, and hence development. Opposing displacement means opposing development. These two points are main in all their arguments: Industry is a must for development of Punjab and Displacement is a must for industrialization. 

It is said that agriculture has reached upper limit in Punjab. But though rationally it is not the upper limit of agriculture in Punjab, it is of the imperialist model of agriculture which was adopted in Punjab for the 'green revolution.' Based on the assumption "Build on the best" and "maximum inputs maximum outputs" this model imposed by imperialists has destroyed the Punjab peasantry. Farmers are committing suicides. This model was not suitable to the local conditions. If the model corresponding to local conditions and resources was adopted, the present ill effects of imperialist agriculture model could be avoided and there could be lot of possibilities before agriculture sector.

Agriculture is the base for industrialization. For Punjab the present imperialist model is considered as the basis. We are of the opinion that a new model of agriculture should be developed suitable to the local conditions and industrialization should be based on the new model.

It is better to discuss the industrialization of Punjab upto now. In Punjab there are some industrial centres- Amritsar (woollen clothes), Ludhiana (hosiery and cycles), Jalandhar (sports goods) and Batala & Govindgarh for iron related products. Besides these there are Cloth Mills, Sugar Mills, and other agro-industries. Industrial condition of Punjab is very poor. After the collapse of Soviet Union, hosiery has come to an end due to loss of permanent market. Due to inability to compete in world market, all the cloth mills have closed. Sugarfed has closed its four mills. Liquidators are appointed to close the other six mills. Only five mills which are in public sector are still surviving and their end is also near. Cycle industry is at the point of death. Foundry and steel industry are also facing grave crisis, going to their end. There are some new factories in Mohali but old ones have closed. This state of affairs should be borne in mind.

According to economic law, industries should be set up in the areas where there is raw material and market for them. So in Punjab there should be agro-industries. But as seen from Mansa to Govindwal, all cloth, thread, knitting mills have closed. Khanna Ghee factory, Jahwa Tomato plant have closed. The advocates of agro-industry pay no attention to these realities.

All capitalist production is for profit and profit only. The capitalists choose that area for their industry wherefrom they can earn maximum profit. For the same reason, Punjabi industrialist family Thapar has set up its industry in Balharshah in Maharashtra near the border of Andhra Pradesh. And a Punjabi industrialist has set up Modinagar (near Ghaziabad) and Modipuram (near Meerut). The reason is that there are no mines in Punjab and it is very expensive to bring coal, iron and metals to Punjab. Punjab depends on Thermal electric projects and supply of coal to Punjab is always uncertain. On the other hand Punjab is a frontier state and not suitable for domestic market. Carrying products to other places is very expensive. These days our markets are part of world market. In world market, sea routes play an important role in business and Punjab is far away from sea ports.  Seen from the angle of world markets the production in Punjab is expensive. As exportable production is more profitable, the areas away from sea ports remain industrially backward.

Our Govt. has made the country fully dependent on imperialism and imperialists have no interest in the development of Punjab including development of agro-industries. Due to this agro-industry in Punjab is going to meet its end. The Megaprojects praised by Amrinder Singh are not agro-projects. For example, proposed agreement with Ratan Tata is for automobiles. Being suitable for agro-industries what is the scope of non-agroindustries in Punjab?

Uneven development is a law of capitalism. The industrial backwardness of Punjab is the result of uneven development due to capitalists' approach. Industrialisation of Punjab is not possible without changes in social-economic-political system. Leaders of ruling class parties in Punjab have been talking about the industrial revolution but it has not taken place and industrial backwardness has not been removed. Surjit Singh Barnala had talked about industrial revolution in Punjab after signing an agreement with Pepsi but no results have been gained. Same will be the result of commitments by Amrinder Singh.

Second is the question of displacement as a necessary concomitant of industrialization as industries have to be set on land. But a capitalist sets up an industry not for public good but for earning maximum profit. Why should the capitalist not directly purchase it from farmers at market prices? Why should Govt. help the capitalist to get land at lower prices through acquiring it from farmers? Why should farmers pay the price for the profits of capitalists?

These days MNCs and some intellectuals are singing praises of the open market. Manmohan Singh and Amrinder Singh are among the advocates. But in the matter of land for capitalists for their industries, they forget to apply their open market laws. Amrinder Singh is acquiring land for Reliance, Gupta etc. who will determine the prices of their product as per open market norms but the farmers have no such right to use or sell their land according to their will.

Now about Trident case on the anvil of social cost and benefits. Trident factory has no social benefit. In Dhaula village it has a paper mill where cheap and lower quality of paper is made. Trident group has 70 acres of excess land there. There is a plan to set up a sugar and allied industry acquiring the land at Dhaula and Fatehgarh Chhanan. The waste from Sugar Mill will be used as raw material for paper mill and sugarcane juice will be used to prepare wine.

Traditionally this area is not growing sugarcanes. Upto now the reason for closure of sugar mills is shortage of sugarcane.  When already existing sugar mills are closing or have closed then question does not arise of setting up new sugar mills in the area. Instead of social benefit there is social loss which is not limited to the acquisition of land which will deprive them of their livelihood. Farmers generally cannot do any other work except farming and there is no land available for them to buy. They will have to go to far away places thus losing their society of which they have been part for centuries. This loss cannot be compensated.

Allied industry of sugar mill is wine. These days Punjab is already in the grip of the flood of this sixth river of wine (and drugs). Another wine factory will take more people in its grip. But Punjab Govt. has no interest in the development of the people, it is interested more in wine factories whose social cost is enormous. Paper and wine industry are sources of pollution. It becomes difficult to breathe due to foul smell generated by these. Its waste water is very dangerous for crops, animals and human beings. Treatment plants for disposing off the waste are costly and no capitalist builds them while pollution board is immobilized through bribery.

Past experience shows that people once displaced were not rehabilitated. The only benefit talked of is that of employment. But according to AIKMS investigation Trident group gave employment to a small number of people and they too were declared unfit and later expelled. This is because local labour is costly while migrant labour is cheap. So the capitalist employs migrant labour, while the people who paid the social cost of industry remain unemployed. It is clear that the industry has no social benefit while its social costs are enormous. The same is true of Sanghera project also.