ECONOMIC TRENDS

SECTION II-ECONOMIC PROSPECTS

Factors Determining Economic Prospects.

Economic prospects of a region are mainly conditioned by natural as well as external factors. Availability of natural resources such as fertile land, abundant water-supply, rich forests, minerals and manpower are pre-requisites to the development of any region. However, any endeavour for economic development is conditioned by the exploitation of the natural resources by application of external aids such as capital, machinery and equipment, skilled labour, improved techniques of production, transport facilities, etc. With the given supply of natural factors of production over a long term, external factors have to bear the brunt of economic progress. Consequently, planning of the factors of production becomes essential for the achievement of optimum production.

Another fact that must also be taken note of is the existence of inter-regional and national planning. The idea of a separate and independent plan for a region is inconceivable. Planning today has shed its individualistic and regional approach. The principle of regional self-sufficiency is not regarded as scientific. A region in the wake of its development is expected to contribute its highest towards the wider national economy. The whole problem of future development possibilities have to be viewed from this angle.

Economic Background.

In the preceding chapters a detailed analysis of the various aspects of economic life of the people of the district is made, and as such subjects like agriculture, industry, trade, transport and miscellaneous occupations are described in their historical and structural aspects. Even though no attempt is made to draw conclusions or to evaluate the rate of progress in the various fields, it is made sufficiently clear that during the course of the last 50 years the economy of the district has advanced considerably. The rate of economic and social growth was, however, slow till the advent of political freedom. It was thwarted by lack of imagination and niggardliness of the British rulers and also the peculiar topography of the district.

The chapter on Agriculture indicates an improvement in the technique of production, variety in the output, and a slight expansion in the yield. Industry appears to have made some progress. Some large scale industries have sprung up near Panvel, Pen and Khopoli; and it seems probable that the pace of industrialisation will quicken in the future. The transport system also indicates far-reaching changes. A well-built national highway passes through the district. Extension of the Diva-Panvel-Uran railway service is contemplated during the third five-year plan. A big chemical plant and the application of the package plan to the district should be expected to affect favourably the economy of the district in an unprecedented measure. It is against this background that the economic prospects of the district will have to be considered.

Agrarian Economy.

Agriculture is the main pursuit of the people in this district. The predominant agrarian nature of the district's economy can be traced to the most ancient times. The agricultural land in the district is chiefly suited to the production of paddy. And as such there is ample scope for increasing the production of paddy with the increased availability of green and chemical fertilisers, improved seeds and scientific methods of cultivation. Bumper paddy crops can be visualised as a consequence of the working of the package plan.

Extensive and Intensive Cultivation.

Agricultural production can be accentuated by extensive or intensive cultivation. There is not much scope for extensive cultivation as a large proportion of the total geographical area is already under cultivation. The remaining area is occupied by mountain ranges and hills. So there is not much of cultivable waste land which could be available for cultivation. Reclamation of forest area is also not worthwhile as in the past forests were cut indiscriminately. However, some fragments on the low-lands between the hills may be availed of for further cultivation.

Intensive cultivation has, therefore, to be resorted to for increase in agricultural production. The main lines along with which agricultural progress has to proceed are adoption of improved methods of cultivation, such as resort to the Japanese method, agricultural research and demonstration and measures for soil conservation.

Improvement of Agriculture.

The prevalent rab system of paddy cultivation, in which dependence on assured rainfall is the main drawback, is becoming outdated and needs to be supplemented by better facilities of manuring. As is evident from the experiments on private farms by the Government, the Japanese method of paddy cultivation is calculated to yield more remunerative returns. A vigorous programme for bringing increased acreage under this method is expected to multiply the production of paddy. In addition to expanding the area under the Japanese method, measures such as increased supply of improved seeds, manures and fertilisers should be undertaken. Selected seed from the paddy research station at Karjat which is distributed to some of the progressive cultivators for further multiplication is expected to multiply unadulterated production of paddy. The disease resistant and high yielding strains evolved at the research stations will help to accentuate production.

Vegetables in the rabi season can be expected to yield prospective returns. Considerable portions of agricultural land in the vicinity of Panvel and Uran are very suitable to the production of cabbage, val, cucumber, water melons, chillis, brinjals, beans, coriander, methi and gram. These places enjoy the advantages of being near the assured vegetable market of Bombay. Vegetables from Uran can be sent in vessels or launches within a short time to Bombay across the harbour.

If better irrigation facilities are made available the production of the vegetables can be increased to a considerable extent. Absence of proper irrigation facilities is a great deterrent to the production of vegetables on a commercial scale.

Mango, cocoanut, cashew-nut and pineapple can be produced on a commercial scale if organised and systematic efforts are made. Large hilly tracts can be profitably brought under cultivation of these crops. The importance of mango and cashew-nut cannot be overemphasised as they fetch the much needed foreign exchange.

Land Reforms.

The programme of land reforms mainly relates to prevention of fragmentation and consolidation of holdings, bettering the conditions of tenancy and fostering co-operative farming. The subdivision of holdings into very small and ill-shaped fragments is the worst feature of agriculture in this district. Efforts at improving agriculture are very often defeated by it. The subdivision of holdings makes mechanical cultivation well-nigh impossible. The tenancy legislation which has turned tenants into owners has not led to appreciable increase in production so far. But with the adoption of the progressive measures discussed so far, the desideratum may be reached in due course.

Forest Produce.

Development and proper use of forest produce is an integral part of the programme of optimum utilisation of land. It is essential to plan forest development in order to cope with the increasing demand for forest produce for industrial as well as domestic purposes. A step in this direction will include keeping forest reserves, afforestation in denuded areas and providing communications to inaccessible forests.

Forests occupy an area of 4,01,245 acres, and comprise mainly teak and ain which are valuable as timber and furniture wood. Some of the forests are rich in trees like bamboo, khair, sisum, apta, sawar, etc. Establishment of wet nurseries is essential for ensuring a supply of good quality seedlings for the forest development schemes. Plantation of the various species of soft-wood, which can be useful for the manufacture of matches, is expected to yield quite favourable returns. Propagation of bamboos will also be helpful in initiating the paper pulp industry in this district.

Fisheries.

The coast line of this district is interspersed by a number of creeks and the mouths of these creeks provide considerable scope for an expanding fishing industry. The off-shore fishing grounds are also rich. Karanja, Mora, Rewas, Thal, Varsoli, Murud Revdanda, Shriwardhan and Dighi are important fishing centres. There is considerable scope for development of inland fresh water fisheries also.

Mechanisation of indigenous fishing crafts is calculated to multiply fish catch by enlarging and intensifying the sphere of operations. Demonstrations in mechanised fishing will induce local fishermen to avail themselves of the mechanised fishing equipment. Co-operative societies of fishermen provided with modern fishing equipment will be of advantage if they train fishermen in utilising the equipment properly.

The commercial development of fisheries postulates scientific-investigations of fishery problems, such as life history of important food fishes available in the locality, their spawning grounds, feeding habits, seasonable migrations due to changes in the planktonic food, the chemical nature of waters and the population studies of different groups of fish, etc. The Marine Biological Research Station at Ratnagiri which is undertaking such studies will prove useful to the fishing industry of Kolaba coast line.

Industrialisation.

The Kolaba region is rich in natural wealth, such as, minerals, fruits, fish, salt, vegetables, timber and forest produce. This region affords all the facilities for industrial development since plenty of potable water and power are available. There is abundance of cheap labour and a big port and market like Bombay is in its vicinity.

It seems probable that Kolaba district promises potentialities regarding pure salt and soda ash industries near Uran, and special grade. paper, organic chemicals, intermediates and dyes-tuffs, pharmaceuticals and rayon industries, in the Patalganga Valley. In the wake of big units, numerous feeder small and medium-scale industries can also he started. Tail water from the Kundalika and the Patalganga rivers will help in the development of such industries. From the Koyna Hydel Scheme it is expected that ample power supply would he available to this region. This will accelerate the growth of industries in this area. The Patalganga Valley is ideally suited for setting up an industrial estate This area has abundant supply of natural resources. Kharpada has been chosen as a suitable sire for a big rayon manufacturing unit. All other optimum conditions are found to be present in this place. The lack of adequate transport facilities will now be removed by the Diva-Panvel-Kharpada railway line that is to be completed by 1963. Konkan provides about 60 per cent of the labour in the manufacturing units at Bombay. It is very clear from this that there is surplus labour always available for these new plants.

The natural vegetation and abundant supply of water and firewood in the vicinity of Khopoli and Bhira strengthen the case for the establishment of paper and pulp factories. Production of blotting paper, brown paper, wrapping paper and cardbroads can he increased considerably near these places. Electric power at economic rates can be made available to such plants.

The areas surrounding Panvel and Uran are congenial to the establishment of industrial estates. If small-scale industries are established in these areas, they will serve as feeders to the bigger industrial units at Bombay and much of the congestion in Greater Bombay would be reduced.

Lack of railway transport facilities has been one of the factors hampering the industrial development in this district. If railway transport is made available, it will encourage rapid industrialisation of this region. The proposed Diva-Dasgaon railway route which may further he extended to Mangalore is calculated to usher in an era of economic prosperity and industrialisation Construction of this railway unite as well as a bridge across the Thana Creek are expected to open this area to industrial units, with the result that much of the congestion in Bombay will be. removed.

The degree of industrialisation also depends upon the progress of the existing financial institutions and facilities of underwriting of capital. On this count this district suffers much as there is not sufficient number of banking houses and agencies for underwriting capital. The proximity of Bombay and Poona may, however, partly make for this shortcoming.

Transport and Communications.

The development of facilities of transport and communications in general and ports in particular has much to do with the economic prosperity of this district. The difficulties of transport in this district as in the entire Konkan are well-known. Traffic from Bombay to Konkan is taken up by the State Transport and the steamer services. Both are, however, inadequate to meet the enlarged traffic demand; and while the former is just able to cater to the needs of passenger transport throughout the year, the latter is totally suspended during the monsoons. However, the state of affairs is fast improving. This district has a coastal line of nearly a hundred miles. But many of the ports have silted up and it is feared that the steamer service might become impossible in the near future if dredging operations are not undertaken in good time.

Revdanda and Rajpuri ports have the advantage of being natural harbours which are not exposed to violent winds. From the landing as well as defence point of view Rajpuri has strategic importance. It can serve as a supplementary port to the Bombay harbour. This will, however, entail some dredging operations.

If the waterways are made convenient for traffic, transport of passengers and cargo will become very cheap. This will encourage trade and commerce. Waterways will serve the shortest link to Bombay and at cheaper rates.

Any programme of economic development will have to take into consideration the necessity of improvement in roads. The important centres of trade and commerce should be linked with the ports by good roads. Improvements in the Bombay-Konkan Goa road have helped increase in the goods as well as passenger traffic. Construction of the Dharamtar bridge has met with the long-felt need of the local population as it has made through traffic to Alibag possible. It facilitated passenger transport to a very large extent.

Marketing reforms.

Profitable disposal of agricultural produce can be made possible by improving the working of existing regulated markets and by establishing new ones. Encouragement should also he given to co-operative marketing. Emancipation of the agriculturist vis-a-vis the fluctuations in prices caused by speculative activities of the traders will have an adverse impact on the agricultural economy of the district. The present state of affairs in this respect is far from desirable in this district.

It is, therefore, essential to establish regulated markets at all the centres of trade and to provide for the required facilities at the existing market yards. Marketing of agricultural produce should be linked with co-operative credit and warehousing. This will relieve the agriculturist from the necessity of selling his produce immediately after the harvest when the prices are considerably low.

TOP