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Conference Of Ministers On Agricultural Marketing Nov .1938

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CONFERENCE OF MINISTERS
ON
AGRICULTURAL MARKETING
NOVEMBER 1938.
RESUME OF DISCUSSIONS
NEW DELHI PRINTED BY THE MANAGER
GOVERNMENT or INDIA PRESS : 1939.

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RA INTVERSITVI ARY CONFCRLNCE OF MINISTERS ON AGRICULTURAL MARKETING DELHI-NOVEVBER 1938 Resume of proceedings and resolutions adopted 1-INTRODUCTORY At the Provincial Economic Conference 1934 there was general greement that of all prictiçal mesures for improving economic conditions, an intensive programme to develop marl eting facilities for farm products offered the best immediate prospects of substantial resu ts Accordingly the Government of India embarked early in 1935 upon a comprehensive scheme for the improvement of agricultural marketing in India for a period of fivo years and the Provinces and 220 Indian States co operated in carrying out niarketing survers throughout India As a result of these surveys, undertaken with the aid of grants from the Central Gov-rnment and the Imperial Council of Agricultural Research 1 numbər rf practical experiments in grading were carried out and central legislation 12 the Agr cultural Produce (Gradmg and Mari ing) Act was enacted in 1937 with a view to prescribing standards of quality ind safeguarding grade marhs 2 Subsequently the necessity for the exin ination of the whole ques tion of the future development of agricultural marketing work and of the best method to be adopted for co ordinating the marketing worl in India with production was discussed at a ineeting of the Governing Body of the Imperial Council of Agricultural Research held at Simla in July 1938 When a general feeling was expressed that the whole matter should be con sidered by a special conference to be convened for the purpose 3 Steps were accordırglv taken by the Imperial Council of Agricultural Research to hold a conference of the Hon ble Ministers in charce of Agriculture in 'he Provinces ind of sur ular r presentatives of Indian States Invitations were also extended to other l'rovincial Ministero mterested in rural development The Conferenca 198 held in New Dellu on the 29t11 and 30th November 1938 and His Excellencv the Vicerov ris gricin isly pleised to npen it The following representatives of the Central and Pro vincial Governments and of the Indian States attend d LIST OF MCVBCRS The Hon ble Kunwar Sir Juodishi Prasad KCSI CIT OBT Member in Charge of Education Health and Lands Dep ırtment and Chairman Imperial Council of Agricultural Research Charman Afinisters and trembers from Provinces and Indian Stut's The Hon'ble Mr A K Fazlul Huq Chief Minister, Bengal 2 The Hon'ble Mr. V. 1. Muniswami Millni, Minister for Developinent, Madrng. The ITon'ble Mr. Morarji Desai, Revenue Minister, Bombay. The llon'ble Mr. Amma Babaji Latllic, l'inance Minister, Bombny. The Ilon'ble Mr. Nalini Ranjan Sarkar, Finance Minister, Bengal. The Hon'ble Mr. Shamsuddin Ahmed, Agriculture Minister, Bengal. The Hon'ble Dr. K. N. Katju, Minister in charge of Agriculture, United Provinces. The Hon'ble Rao Bahadur Chaudlıri Sir Chhotu Rani, Minister of Development, Punjab, The Hon'ble Sardar Bahadur Sardar Sir Sunder Singh Majithia, Revenue Minister, Punjab. The Hon'ble Dr. Syed Mahinud. Minister for Develojiment and Agriculture, Bihar, The Hon'ble Mr. Anugrah Narayan Sinba, Minister for Finance and Local Self-Government, Bihar. The Hon'ble Khan Mohammad Abbas Khan, Minister for Industries, North-West Frontier Province. The Hon'ble Qazi Attaullah Khan, Minister for Education North-West Frontier Province.. The Hon'ble Pir Illahi Baksh Nawazali Shab, Revenue Minister, Sind. The Hon'ble Mr. N. Kanungo, Minister for Agriculture, Orissa. Mr. R. M. Crofton, I.C'.S., Revenue, Police and Agriculture Member, H. E. H. the Nizam's Government, Hyderabad (Deccan). Mr. K. V. Uplap, Minister in charge of Agriculture, Baroda. Ali Martabat Motamid-us-Sultan, Rai Bahadur Raja Oudh Narain Bisarya, Revenue Member and President, State Council, Bhopal. Ali Martabat, Ainin-ul-Mulbs, Wala Qadr Mr. Salamuddin Khan, Ivíember for Law and Justice and Commerce and Industry, Bhopal.

3 Khan Bahadur Nawab Choudhri Mohammad Din, Revenue Minister, Jodhpur Raja Harıhıshan Knul, CSI, CIE Revenue Minister, Patirla Kumar Shri Suisinghji, Minister of Educatioui, Nawanugar Representatives of the Government of India Sir Bryce Burt, CIE, MBE IAS, Vice Churman, Imperial Council of Agricultural Research Mr M W Yeatts, CIE, ICS, Joint Secretary, Education, Health and Lands Department Mr A M Livingstone, MA, B.Sc Auricultural Varl eting Advisci to the Government of India Dr W Burns D SC, IAS, Agricultural Expert, Imperial Council of Agricultural Research Mr P J herr, MRCVS, IVS, Animal Husbandry Expert, Imperial Council of Agricultural Research The Hon'ble Mr S N Roy, CSI, CIE, ICS, Secretary Communication Department Attended & part of the Con- M F D Souza Member (Transportation), ference. Railway Board Dr T E Gregory, DSC, Economic Adviser to the Government of India Substitute Delegates Mr K B I. Seth, IOS, Revenue Secretary, Central Provinres and Berar Dr S K Mitra Director of Agriculture, Assam Mr T G Ramu Iyer, Director of Agriculture, Mysore Mi MR Fotedar, Director of Agriculture, Kashinir Lt Sardar D K Jadhav, Director, Agriculture Department Gwalior. Mr KR Narayana Iyer, Director of Agriculture and Fisheries, Travancore Mr S Rasu, IOS (Sccretary) . The Hon'ble Sir Jagdish Prasad in inviting His Excellency the Viceroy the Conference said: to open Your EXCELLIENCY, My Department has ventured to inake frequent demands on Your Excellency s time because we are assured of Your Excellency's warm support and lively personal interest in all measures designed for the betterment of rural India. We are indeed fortunate that Your Excellency has been pleased to accept our request to open this most representative con'erence so soon after Your Excellency's return to the burden and cares of your exalted office, as on the subject of agricultural marketing Your Excellency can speak with unquestioned authority. It was very largely as a result of the Report of a Departmental Committee over which Your Excellency presided in 1923 that the Markets Branch of the British Ministry of Agriculture was formed in 1924. Your Excellency was Chairman of the Market Supply Committee in Great Britain from 1933 to 1936. Your Excellency's labours have left a permanent mark on the history of agricultural marketing in England, and it is to the Royal Coinmission on Indian Agriculture, over which Your Excellency presided, that we owe the first serious attempt on the part of the Governinent of India to study, with a view to improvement, jhe marketing of agricultural and animal products in this country. In 1934 the Government of India gave a grant of about Rs. 27 lakhs to provide the cost of a Central Marketing staff for a period of five years and to enable grants aggregating Rs. 10 lakhs Provinces by the Imperial Council of Agricultural Research. It was only in January 1935 that the new organisation began to function. The Central and Provincial marketing staffs have thus been in existence for less than 4 years. The problems which they have to face are more intricate and of wider range than those of Western Europe and America by reason of the numbers involved, the indebtedness and ignorance of the producers, their lack of organisation, the difficulties of rural finance, the comparatively primitive nature of rural communications and rural transport, the chaotic condition of the inarkets with a multiplicity of weights and measures and a varied host of middlemen, some necessary, others superfluous, that encumber the road from the producer to the consumer. There is little doubt that enormous waste is going on between the price obtained by the producer and the price that the consumer has to pay. Our agricultural statistics are notoriously deficient. It is not possible for me to vouch for the absolute accuracy of some of the figures which I quote, but according to some recent estimates, for wheat the producer's share of the consumer's price is about 60 per cent.. for rice 50 to 60 per cent., and for fruit considerably less. While making allowance for a wide margin of error in these figures, there can hardly be any doubt that with ellicient organisation, not only should the producer get a better pice but there should be a marked improvement in quality. It is indeed a painful commentary on the present state of affairs that even of an article of such great use in India as ghi. a pure urban supply is scarcely obtainable. Adulteration of inilk în our towns is notorious. Considering the short time during which the Central and Provincial staffs have been working we may claim to have made a good beginning. We have made surveys of the marketing conditions of a number as of commoditics on the lines laid down by the Roval Commission on Aguculture We have passed a Central Act to enable cert in agricultural products to be standardised, graded end marked We have established about 60 grading stations foi the grading of fruit, ghi, hides and sb ns eggs and tobacco We have, in collaboration with the trade, arranged for standard contracts for cert un heayı stuple commodities like wheat and linseed which enter into the wholesale trade of the country and we have helped in the drifting of provincial le,islation for the regulatior of marhets So far the value of the commodities we have graded is only about Rs 20 lakhs, a mero drop in the occan, when the value of gl alone is between 80 and 100 crores of rupees We have yet to do much to organise the producers, whose interests must remain paramount, so that they may be able to bargain on more equal ternis with the better organised distributors and consumers of their produce and may be able to get the full premium for quality and purity of their produce The task before us is difficult. and requires patient and persistent effort over a number of years beforo we can make our agricultural mari etin; organisation up to date and etficrent The presence this morning of Hon ble Ministers from auto. nomous Provinces and from Indian Statcs to whom I wish to extend a warm welcome and the significant frct that a Viceroy with such exſert knowledge of agricultural problems both in this countıy and in England is here to mark the inportance of this occasion makes me hojiful that our deliberations will be fruitful and that we will be able to devise and what is much important, rut into force circumstances permut effective nie isures to secure for the prorlicer 1 niore adeqi ato return for hs produce to the distributor a casonable remuneration and to the consumer & regular supply of commodities of assured quality at reasonable prices The objective I believe, is to improve the essential services and to eliminate tho non essential without injustice to any interest or cluss And now, it is my privilege to ask You Excellency to be pleased to open this conference ind to e pres, tc vou our gratelul thanl s for the honour wlucn lour Excellency has done us in coming here today to inhugurate these proceedings His Excellency the Viceroy then addressed the Conference as follows HIS L\CELIENCY TUIF VICEROY'S SPEECH ON THE OCC ISION OF OPENING THE CONFEREVCE OT MINISTERS ON AGRI- CULTURAL MARKETING ON THE 29TH NOVEMBER 1938 GENTI LMFN, I am glad to welcome to the Cajital this very representative gathering of Ministers from the Provinces of British India and from the Indian States Your attendance here today, and many of you have travelled far n order to be with us, is welcome proof of the importance you attach to the subject of Agricultural Marketing Let me say at once that your interest will be an immense encouragement to all in the Governinent of Indi wlo have been associated with this most importint asj ect of agricultural improvement Sir Jagdish Prasad has referred to my past experience in the field of agricultural marketing In Grent Britain my collergues and I signed the list of our five reports on the Distribution and Prices of Agricultural Produce in November 1923 These ieports led in 1924 to the setting up of the Marketing Branch of the Munstry of Agriculture and in 1928 Parliament pissed the Agricultural Produce (Grading and Marling) Act I incntion this because it is of interest to notice that in Great Britain it took about 5 yenis to get er 'int from the moment of the initin impulse. Ju Jilin, as Sir Jagdish lns raminel 19, the Royal Commission on Agriculturo, reporting in 1928, stressed th: grent importance of Agricultual Markeiing and linked it will trapazastastioil. In 1931 the l'rovincial Economic Conference led to the initiation of the prisent marketing scheme under which the Giovernment of lvli provide i mirai stali now consisting of 20 officers, while the Imperial Council n slegricultural Research lins provided lon litlilis na ripueros aprende videos is jrrind of live resets to meet part. of the cost of Provincial ilurketing Stalin, Thuise gents were made in oriler that the all-Tudia rummollits siirrey's right for irried out on an uniform basis. But it is worthy of (1971)}}},"st. that, al carli stara, there has been spontaneous (Ooperation in the autonomous Provinces and Sintes. Rich provincial (itsolemnarents from the outset, at its ow! (O$, provided a Provincial Marketing Olicit to take charge of the Provincial section of the work; and spoje"?!!) licorrorninunils lunta jirovirled additionil marketing st:: :und, 111011 17prontly. Save talen over some of the experimental levelopment: Skih ils grurling stations, any of tlu Siatrs, of whom no less than 2:30 hsp ("suppitested in this matter, bare provirler their own marketing statis, and this love Il muligt collaborated with the l'entrai Marketing Staff both in the commodity 511 Veya and in such practical matters as marking and grueling. In 1937 the central Luislature passed the Agricultural Procluce (Grading and Marking) Art, and it is signiticani to notice that in India this stage still reached about three roars afler Dr. Livingstone's rrisnl and rather less than two years from the cornpletion of the Marketing Stati. In Engl:0, 15 I have tolil you, a poriod of five years clapsed between the setting up of the Marketing Branch and the passage into law of the first Marketing Act. It is, I think, encouraging to note that despite the formidable complications ind diversities of the Indian marketing system, merchants and narket on in this country have shown themselves just as really as their brethren in the West to arail themselves of well thought out marketing improvemonts. The position today is that six marketing reports are now complete, and that a further four are well advanced. In congratulating all concerned upon the very promising beginning wat has thus been achieved, I feel that I must affirm my conviction, born of my own considerable exj crience, that adequate preliminary surveys are essential to the construction of sound schemes of marketing. Careful economic reconnaissance is an essential preliminary of every sound scheme, and I would confidently recommend all who are responsible for the construction of such schemes to count neither time nor money waster which are spent in prosecuting with zeal and efficiency these essential preliminary studies. In work of this nature, anxious as we all of us naturally are to improve produccrs' prices, it is seldom wise to attempt the short cuts. Rough and ready methods may seem at the outset to give quick results, but those are not the results that will stand the test of time. Organized marketing means the application of scientific methods to the problems of collection and distribution. That is why emphasis is laid on the importance of basing all future action on an adequate assembly of tested facts. Again, in using those facts and in drawing deductions from them, the scientific is the only safe method, which is to mistrust each conclusion until it has been subjected to every possible test.

In India an important stage has now been reached for inany marketing Burveys have been completed or are well advanced and broad conclusion I have emerged which call for application on a wide scale It is satisfactory to note that Centrul and Provincial Staffs did not await the completion of the all India commoditv reports before studying the possibilities of develop ment At a comparatively early stage the necessity of certain lmes of improvement became clear The standardisation of weights and measures & wider adoption of the system of regulated markets which had already proved its value in some parts of Indit a fact e nphasised by the Royal Commission on Aguiculture ate iecomniendations common to all the reports It was also apparent from the outset that grading and standardisa tion would offer 1 fruntful field for developnient and n consequen e the recommendation of the Provincial Fconomio Conſe ence of 1934 the preliminary studies on quality necessary for the consideration of grade standards were started simultaneously with the mail eting sul veya This stage wag-followed by the setting up of experimental grading stations for such commodities as fruit ergs and ) ides and skins which the surveys showed to be susceptible of such treatinent It was specdıly found that as in other countries legi lative action wa needed no protect the marks and as Sir Jagdish Prasad has sid the Agricultural Produce (Crad ng and Marking) Act directed to that purpose was passed by the Central legislatura in February 1937 on It is of interest to note that the total number of experin ental griding stations now in operation is about 25 Standardisation the detormmatiou of grades is more than agreement on convenient categories of physical attributes—size colour puritt water or fat content and the like Standards must be very definitely related ta the requnements of the consumer that is to the saleability of the produce Standardisation is a prerequisite of effective advertisement Standardısa tion the deterinination and stuct adlierence to grides is a key to distant markets and-given improved would conditions—2 sure rood to expand ng business But marketing organizations car do something beyond promot ing the orderly and economic distribution and sale of primary produc An efficient marketing organization should be the grower s intelligenre bureau Often you will find that the cultivitor who cannot lumself be in touch with distant and overseas markets will prefer a crop or a particular variety of some crop because of its agricultural advantage that is because it is easy to grow or beciuse it matures at a conven ent moment in the seasong' routine of the holding or appears to give a particularly heavy yield Some times indeed a variety will be sown in deference to mere local fashion and Inruiarty Lut tle Marl eting Ofhcerulo Inows the requirements of the ultimate markets and the prices ruling in those inarkets is quite fre quently in a position to advise the cultivator that he will increase his prospects of profit by growing some variety other than that one which seems to possess the highest agricultural dvantage Evidently this func tion of a mari eting service may be of great value in conditions in which world markets in terms of the relative demand for different kinds of primuy produce is—for one reason or another in a state of change and uncertainty Causes so different as the development of synthetic substitu tes or the econoinic aftermath of a war may substantially promote the demand for one t pe of produce at the expense of some other Consider how much loss may be spared to the grower if his marketing organisition- 8 what I have called lis intelligence bureau-is able to provide him with very carly warning of such a change in demand. The improveinent of marketing ofiers a fruitfúl field for co-operation between thic Central Goverument, Provinces and States. The development of markcting, in the main, falls within the provinciai sphere, but the main problems are of a wider character. Though the production of many commodities is localised, (the areas of concentration being scattered throughout the country and not being confined to any particular Province or State), the consumption of a product is generally spread over the whole country and many are of all-India importance boili as regards our internal and export trade. Wider issues relating to the finance of the primary producer are also involved, since marketing reforms are essential beforc the commercial banks can fully develop a system of short-terin produce advances. In the report of the Agricultural Credit Departinent of the Reserve Bank of India for 1936 it is stated that short-term advances for marketing produce should be regarded as viss of the inost importiunt parts of banking business, but that the comnicrcial banks have hitherto been unable io deve!op produce advances to the cuxtent of their capacity owing to the extraordinary diversification and vagueness of market conditions throughout lidia ind the manner in which produce contracts are drawn. In this connection, the Report stresses the importance of the following improvements in marketing, machiuery and practice: (i) a reasonable standardisation of the staples and of the contracts relating to them; (ii) the provision, in properly regulated markets and elsewhere, of suitable storage under conditions which would permit of proper insurance; and (iii) the establishment where possible and advisable of properly-regulated forward nursets pernibling of "hedging": and thus to the mitigation of violent market fluctuations. It is therefore satisfactory, to note that an agrceinent has been reached with the principal trade associations for standard future contracts for wheat and linseed, and that discussions are well advanced in regard to standards for groundnuts and coffee. Equally to be welcomed is the progress now being made in several provinces with legislation for the setting up or improvement of regulated markets. As progress is made with these two itenis, the consideration of the establishnient of more adequate terminal or future markets would be possible. To what extent provinces will, in future, require assistance from a central marketing staff in this and cognate matters is one of the matters which the Conference will consider. In conclusion let me again say how great a pleasure it is to me to welcome you here today, and how entire is the confidence I feel that your labours in this Conference will contribute in substantial degree to the promotion in India of orderly and efficient marketing of agricultural produce, an object of the utmost importance both to the cultivator and to the people at large.

II --RESUME OF PROCEEDINGS The Agenda of the Conference included inter alia the following subjects (1) Progress reports on- (a) the work done and results obtained by the marketing staffs and (b) the further work awaitmg inimedinte attention for the devon loprrent and improvement of marketing, (11) Agencies necessary (I entral Provincial and State) for carrying on marketing worh, and relation between the Central staff and the maileting staffs in Provinces and States, with spe. rial reference to the technical assistance required in future (after December 1939) from any Central Staff, (111) Slepa taken (or to be taken) in various Provinces and States (a) with the object of establishing closer relationship between the local marketing staffs and other departments concerned und with Ministers and (b) for the coriclation of agricultural production and marketing with 1 view to the production of the type qua aty and quantity required The question of the competence and the functions of the Conference 198 raised and it was pointed out from the Chur that the Conference in cluded representatives of non constituent as well as constituent States of thu. Impernl Council of Agricultural Research and other Ministers apırt from Ministers of Agriculture who norma ly constituted the Governing Body of the Council The recommendations of tlie Conference would, however be submitted to the Governing Body of the Council is well as to the Central Government and Governments of Provinces and States In the matter of procedure it was agreed that the business of tho Conference should be conducted on the basis of drift resolutions which sliould cover the main points under consideration During the prelimmary general discussion the Conference observed that draft resolutions should a'so bo prepared dealing respectively with (a) continuance of the Cential Marketing organisation (b) the continuance of the system of grints to Provinces and (c) the subject of railway freights The following is a resume of the discussious Progress of marl eting schemc-Continued co operation by Provinces and Statcs Aj reliminary discussion and review of the work took place on the basis of circulated papers (Appendix) dealing with items 1(n) and (b) of tho agenda These indicated the progress of the work done and tho results obtained by the marketing staffs so far and the further work awaiting immediate attention Marleting suriers which formed the foundation for further work had been completed in respect of 13 commodities and 4 all Indır reports had been written Other 17 surveys were being carried on These surters have brought out the various factors thich prevent the producer from receiving larger share of the price paid by the consuiner Market 10 charges, for example, are in many cases high and numerous and there was thereforo much need for their regulation and control by markets Acts in the Provinces and States. Tie surveys indicated also the need for the standardisation and grad. ing of agricultural produce in order to eliminate waste, reduce the number of malpractices such as adulteration, ind provide a proper basis for trading in the interests of both producers nnd consumers. Rules had been made under the Agricultural Producr (Grading and Marking) Act prescribing standards for 9 commoditics, Experimentul grading stations had been opened at about 60 centres and even allowing for certain failures these stations showed an average net increased return of 9 per cent in the case of graded fruit, 5 per cent on (arid 12 per cent on graded ghee. Where the grading stations had been established by producers themselves all this profit wont to them direct but even in cases where this work was done at other key points in the course of distribution the producers obtained a direct benefit. The standardisation of contracts by agreement with the trade and the introduction of inutual instead of non-mutual terms in the case of staples such as wheat, linsced and groundnuts tended to reduce the amount of losses on account of dirt and other impurities put on the market and ensured the payment of an adequate premium to the producers of high quality produce. The surveys indicated the need for an improved market news service for producers and for better arrangements designed to eliminate price risks through the proper operation of “future" markets. They also showed various directions in which the producer might secure a wider market for increased production but in this connection there was apparently & need for the closer co-ordination of production and marketing. In the course of the discussion several members referred to the progress made in their respective Provinces and States in regard to the introduction of Markets Acts and for the standardisation of weights in regard to which assistance was required through central legisiation. Attention was drawn to the need for surveys on other important crops, e.g., jowar, bajra and castor seed. In acknowledging the assistance from the Central Marketing Staff the inter-dependence of Provinces and States was emphasised and it was claimed that the Central Government should place its officers still more freely at the disposal of the Provinces. The discussions in general showed that progress in regard to marketing was being made in one direction or another in all the Provinces and Slates represented at the conference and that there was a great need for further progress and the continuance of close co-operation between the Central and Provincial and Slate staffs. The conference thereupon adopted the following resolution:--- Resolution No. 1. "That the marketing scheme has already shown evidence of being of value to producers and that all Provinces and States should continue to co-operate in the future' so as to maintain steady progress throughout the whole of. India in regard to the improved marketing of all commoditieg."

11 Mari cting Surveys It was claimed that the central and local marketing staff, should assist ung Provinco or State to carry out special investigations in respect of any commodity regarded as of particular importance The discussion in re gard to the Indian language to be used in the publication of the abridged editions resulted in an agreeinent that Hindustani sliould be talen to include both the lindi and Urdu scripts Emphasis was laid on the desirability of the results of the local anarheting surreys being made immediately available to Hon ble Ministers At the samc time it was recognised that these would require to be checked in the first instince by the Central Marketing Stift The deliberations of the conference in regard to these points were embodied in tho following resolution Resolution No 2 "(a) Thit commodity inarketing surveys should gener illy continue to be planned and compiled on an all Indir basis but any Provincial or State government desirous of carrying out a special intestigation on any other commodity may call for Assistance from the Central Marl eting Staff anl the staffs in other Provinces and States (6) That the Centr i Varketing Staff slould be responsible for the preparation and publication of the abridged marheting re ports in Inglish and Hindustan and that Provincial and State Gorcrninents should if they so desire undertako tho translation and publication of abridged cditions n other langunges and (c) 'llint pending the publiention of the completed all India com modity reports which must necessarily await the rcconuilia tion of discrepancies between the various local reports Pro vincini and State governments slould consider the publica tion of surnmaries ombouing the main facts relating to local morl eting conditions as soon as the material can be do quately cheched by thic Central Malhoting Staff frading Stations This desiability of rapidlı increieing the number of grading stations vne brought to the aftention of the Conference and it was suggested that in the case of experimental stntions started by the Centml Go crnment the Province, should not be orpected to the these over until they hnd been running for a period up to five years and that central contributions should progressively decrease until the final rear when the total cost would dovolio on the local foi crnment This proposal ung not generul accepted on account of the fact that of trio Central Government had to innuntain stations which had alrcady prosed their valuc, progress would bo retarded in onemng other stntions for new commodities 12 The need for strict examination and control of the quality of produce packed at the grading stations was felt and the Conference embodied ito recommendations in the following resolution :- Resolution No. 3. "(a) That when the experimental grading and marking of an particular commodity has proved beneficial, the original sta. tions may be taken over by Provincial and State governments and more grading and packing stations should be established by them as soon as possible; (6) That in order to ensure adequate control of quality early steps should be taken in Provinces and States for the authorisation of a sufficient number of suitable persons (c.g., market ing, agricultural and veterinary oficers and market superin. tendents) in the course of their other duties to inspect graded produce.' Standard Contracts. There was a general feeling that statutory backing should be given to the standard contracts in the event of trade and manufacturing interests. failing to agree or to put them into general use. The Conference felt that action on the part of Provincial or State governments might in some cases be necessary and a resolution in the foilowing terms was passed :--- Resolution No. 4, "That the Central Marketing Staff should continue to negotiate with trade and manufacturing interests in India and abroad regarding the adoption of standard contract terin for cereals, oilseeds and other products. The co-operation of the marketing staffs in Provinces and States would be essential particularly in securing the adoption of the standard contract terms by local associations for buying and selling in the mundi. Provincial and States governments might consider how far it would be necessary to give statutory authority to such contract terms." Regulation of Markets, 5 $ The incidence of market charges were in many cases oppressive and their variability in many cases discouraged producers personaily from making use of the market. It would be desirable that the nature and amount of the recognised charges in each market should be specified. Legislation for the regulation of markets already existed in several Provinces and States but there was need for more rapid expansion and for the extension of the markets to cover all agricultural commodities. At the same time it would be desirable that the local governments, themselves shouid tnke the initintive in establishing regulated market's not i only in producing but also in consuming centres. 23. Attention was drawn to the difficulties of applying markets législation, to* zemindari markets and to markets under the control of municipalities. ?

13 It was pointed out, however, that the essential question was the regula. tion of the conditions of truding in the marhet and of the market churges, and this need not interfere with remindarı rights Some discussion cnsued as to the items included under the term 'marhet charges These relate to deductions for weiglment ind tu aliou. ances of all kinds but the general view of the Conference wig that thero was no need to specify all the various items included under the head 'market charges' since these were a matter of cus on and generally qu to Tail understood locally After further discussion tho Conferenco adopted the following resolution Resolution No 5 (a) That Provincial and Strin Governments should tale steps to increase us far as possible the pumber of regulated mikets and that existing Marhets Acts should be extended to cover all agricultural and animal husbandry produco and to incrude markets in consuming centres as well as in producing areas, (b) That Marl ets Acts be introduced in Provinces and States whero no regulnted markets exist with a view to (I) the registration of markets and market charges, (II) the establishment of regulated markets and (III) the regulation of markets in regard to (1) fixing the number and annount of market charges and reducing the number of paymerts in hind (11) licensing of persons entitled to levy charges and market operators, cg, dalals, and (111) standardising practices in regard to weighment, sampling, gradmg and sa e of produce Standards of Il'cight The importance of standard weights in improving inarketing conditions and rendering mirket prices intelligible and compatible wis cinphusised In view of the fact thut several Provincial Ocruininents weru prepared to proceed immedintely with legislation on the subject it was considered desirable that centrul legislation should be passed at an curly date pres cribing standards of weight It was pointed out that a Bill scud bc ine troduced in the Central I cgislative Assembız in January 1939 The following resolution* was then adopted Resolution No 6 (a) That the nece sury Central Legislation should bo prsace forthvitli I'rovinces and States should then wer she cor. responding Icoislition ndopting the all Indii sting of weight (mitli suitabe local multiples and sit inultip'cs) and direct administrative action to bring the standard weights into opcraticu at an curls date, particularly in the important morl ets (regulated or unregulated). (0) Tlint Incil Measures he crainied by I'rovinces and States with Ich to their blandardisation noro •Since pound 14 Market News Service. Several Provincial representatives emphasised the importance of agricultural news service and urged that there should be a broadcasting station in the Capital of cach Province. I suggestion was also made that tlie Central Governmiont sliould arrange for the instaliation of deceiving sols and loud speakers at different market centres, due regard being paid to languages used in the different parts of the country. Ifurther, à protest was raised against the broadcasting station at Peshawar being reduced to the status of a relaying station in spite of representations that a higher powered station be installed there. It was then explained to the Conference on belialſ of the Contral Government how the scheine of bioadcasting had been worked cut and how it had developed. About 3 years ago i japital fund of Rs. 10 lakhs had been created out of revenue surplus for the development of broadcasting. The services of an expert--a research cngincer—from the British Broadcasting Corporation had been obtained for the purpose of advising on the best method of instalıing broadcasting stations within the limits of that suin. Recommendations were duly made but it was found that the funds available were not sufficient to provide all the broadcasting stations proposed to be installed. In order to give the widest possible service it was decided to substitute a certain nuinber of short wave stations for the medium wave stations originally recommended. The programme of development had also to take account of language difficulties—a most difficult problem in Indian broadcasting. Accordingly, medium wave stations were to be set up at Lahore, Lucknow, Rajahmundry, Trichinopoly and Dacca and short wave stations at Delhi, Bombay, Madras and Calcutta. All the short wave stations were now functioning, the Lahore and Lucknow medium-wave stations were in full operation, while the stations at Trichinopoly and Dacca were nearing completion. The response in the shape of increased receipts from licence fees had, however, been disappointing. Thcre were at present only about only about 60 or 70 thousand licences yielding a mere Rs. 7 lakhs annually. Expenditure was in the neighbourhood of Rs. 23 lakhs and was progressively expanding. It was, for example, intended to introduce educational broadcasts in 1939 but all this cost money. Then again, there was a demand for a broadcasting station at Patna. The reason why Patna was not originally included was that it had been hoped to serve that area by the short station at Calcutta and the medium-wave station at Lucknow. Another demand for a broadcasting station came from Sind, but the difficulty was to find funds. The cost of running & 5 kilowatt station was roughly Rs. 14. lakhs per annum. With reference to the complaint that the Peshawar station was to be reduced to a relaying station, it was observed that it was indeed difficult to ru a station unless there was an adequate response from the public. So far as could be foreseen, there was no hope of licence revenue increasing in the North West Frontier Province. It was proposed however to maintain the present staff in order to broadcast Pushtu programines. It was hoped that the Provinces would assist as much as possible in stimulating interest in broadcasting, thus bringing about an expansion in licence revenue. The Provincial representatives were assured that the Communication Department was not upmindful of their requirements and that as far -as-possible their wishes would be met. tvave 15 was The Conference was also apprised of the present position in regard to . the dissemination of market news. There were two broadcasts from Calcutta, one in Bengali and the other in English, given both in the afternoon and evenings. These dealt with stock exchange prices, jute, cotton from Bombay and shellac. At Bombay, daiiy broadcasts were made giving the Liverpool and Bombay cotion rates as well as Bombay prices relating to bullion, wheat, linseed, castorseed, groundnuts and the closing stock exchange quotations. From Delhi, the rural programıme in the cvenings included prices of-cereals, the ready and futures prices of wheat, gram and barley at Hapur as supplied by the Office of the Agricultural Marketing Adviser, livestock prices derived from the same source, quotations for gold, silver and vegetables. The rural programmes were timed for the early evening and the market news was broadcast about 7-15 p.M. With reference to the feeling expressed by some Provincial representatives that 7-30 P.M. was too late, as the villagers would be in bed by that time and that the best time would be in the early afternoon, it was made clear to the Conference that the Central Government were taking steps to assess the benefits of the present system. If tliese broadcasts proved to be useful they would be developed and improved. As far as broadcasting in the urban areas was concerned, apprehensions were felt in regard to the broadcasting of market news for commodities such as cotton, as it affected telegraph revenues. Nor, there any reason why speculators should be helped. Mention was made of the arrangements--shortly to be put into force—that had been made with the Indian Central Cotton Coinmittee to broadcast cotton prices for selected markets -in the Central Provinces. The experiment would be closely watched and if it gave indications of being useful to agriculturists, the number of such broadcasts would be increased. It was added that various experiments had been tried to fix the most suitable times for village programmes. These were to some extent flexible, being earlier in the winter and later in the summer. Mid-day had been found to be inconvenient as the villagers were in the fields at that time. On behalf of the Communications Department a promise was held out that the question of tinie would be further examined and that every endeavour would be made to arrange such broadcasts to suit the convenience of those for whom they were intended. In this connection it was mentioned that a special scheme for rural broadcasting in Delli province had been sanctioned for Rs. 1 lakh in order to give the Department sufficient data to enable it to decide to what extent rural broadcasting could be developed. The improvement which could be brought about in the lives of the villagers and the extent to which their interest could be aroused would be carefully watched and the results eventually placed at the disposal of Provincial Ministers so that the best policy could be adopted. A feeling was expressed in the Conference that the cost of receiving sets was high on account of the heavy import duty and that it was therefore highly desirablo that the Government of India should afford facilities for the manufacture in India of cheap radio sets. It was stated to the Conference that, the problem of inanufacture of cheap radio sets bristled with difficulties. Chenp sets could only pick up stations within a radius of 25 miles or so. A set for short wave reception could not be cheap. - Tựvo or three manufacturers of railio sots lad:

16 the whole question under consideration and it was liopod that some definito proposals from them would be received shortly. The fact that no industrialist had so far taken up the manufacture of radio sets in India in spilc of a 50 per cent prolcctive duty did not disclosc i lack of enterpriso but showed clearly that conditions for marketing clicap receiving scts were unfn yourable. The deliberations of the Conferenco were embodied in the following resolution:- Resolution No. 7. “(a) That thić Central Marketing Staff should continue to collect and lisseininnte information regarding prices, suppies and stocks in important markets of thoso commodities which figury prominently in the export and import, rado of India as a whole or of a number of Provinces and States, and (6) That the Provincial and Stato marketing stafis should mako arrangements for collecting and recording commercial prices for commodities of local inportance particularly in "key' marketsmand for disseminating news regarding prices, supplies and stocks to smaller country markets and to producers in rural areas. Elimination of IVaste. The attention of the Conference was drawn to the large amount of 'waste which takes place particularly in the case of perishables through delay which occurs in the course of collecting the produce in arcas of production for despatch to the main consuming centres. Any steps which can be taken to speed up the process would, therefore, be of distinct practical value. The Conference passed the following resolution: Resolution No. 8, "That Provinces and States should exaniine the possibility of the more rapid assembling of perishable produce from villagers by the organisation of collecting agencies which should operate the basis of the standard metliods of grading and marking.” on Reduction of price risks. on The existing provision in regard to the functioning of 'futures' trading associations was considered and it was recognised that while large well run financially sound institutions of this kind had a stabilising effect prices, this was not so in the crse of the smaller and more speculative borlies which existed in large numbers. It was agreed that it would be desirable to bring this form of trading under some measure of control. . In this connection, it was pointed out that "futures" markets legislation was a federal subject in the United States of America and that there were difficulties in the way of dealing "With the problem by means of local legislation since the business'' might 17 inerely move from one Province or State to another I he indications were that central legislative control wis essential and that the position needed examination The views of the Conference veie embodied in the following resolution Resolution No 9 That with a view to the elimination of fatha (satta) markets of the gambling type and the establishment of proper futures' markets controlled by large financially sound and stable asso ciations operating on a non profit sharing basis the Central Government should examine at an early date the possibility of central legislation controlling the conditions of futures trading in agricultural produce Adulteration The marketing surveys have shown that the practice of adulteration was very widespread and that special products were freely marketed for no other purpose T'or example a synthetic essence of mustard was sold with a view to converting low grade linseed or groundnut oil into a forn of mustard oil and a ground mineral product was offered as an imitation white flour for mixing with wheat flour This kind of business seemed reprehensible A certain amount of administrative control in regard to adulteration was undertaken by some of the large municipalities but the practice of adulteration had spread to the villages where it had become difficult even to get pure ghee Some discussion ensued as to the proposal put forward for colouring hydrogenated products so as to prevent their admixture with ghee and at was suggested that this aspect of the question might be examined The Conference was impressed with the need for more drastic steps being taken and after some discussion resolved Resolution No 10 Thit a special examination be made in Provinces and States of their existing Pure Food Laws and of their sistem of ad ministration with a view to remedying the enls of adultera tion" Marketing Staff The question of the continuince of the Central Marl eting Staff was considered The Provincial and other iepresentatives expressed their appreciation of the all India morl eting surver reports and hoped that the output of these reports would be speeded up With a view to economy it 1175 suggested thnt it might be possible to eliminate a certain amount of apparent duplication in checking the facts and figures by leavin, this work to be done entirely by the Central Marketing Staff It ang pointed out however thnt this was not possible particularly in regard to livestock and other products for which no statistics were vallnhle, and the material had to be collected locally 18 So far as the question of economy at the centre was concerned good deal depended on the amount of lielp and assistance which the Provinces and States required from the Central Marketing Staff. From an impartial point of view it was claimed that the reports published by the Central Marketing Staff had been of the grentest possible utility as they gave cross sectional view of the whole problem of Indian economics, and related the problems of agriculture as regarde production, distribution etc., to those of industry. The existence of the marketing staff was absolutely indispensable for this work. The quantity of agricultural produce coming on the markets was so large that even a very small saving per maund come to a very large sum of money, and the marketing organisation was showing in a practical way how it was possible to achieve very considerable aggregate results by unspectacular methods. A reference was also made to the increased returns obtained as a result of the grading work which had so far been carried out. Complaints had been made that the all-India reports were reaching Hon'ble Ministers too late to enable them to introduce the necessary legislation. It was felt, therefore, that a reduction in the Central Marketing Staff would be a falsc economy particularly as the expenditure on marketing represented a very small fraction of the total sums expended on agriculture as a whole in the various Provinces. The Conference as a whole came to the conclusion that the work on the present lines should continue and that an effort should be made to speed up the survey and development work while every possible regard should be paid to question of economy and to the needs of the Provinces for financial assistance. Accordingly, the following resolution was adopted : Resolution No. 11. “(a) That the Government of India should maintain an adequate Central Marketing Staff, and that existing Provincial and State marketing staffs suitably augmented as required to carry on development work be continued; (6) That the present system of grants to all Provinces should be continued and the amount increased; and (c) That adequate grants should be made to the Imperial Council of Agricultural Research for ad hoc work on experimental marketing projects." Closer relationship between departments concerned with marketing. At the last Co-operative Conference a resolution had been passed recommending a closer contact between co-operative departments and the marketing departments of the various Provinces. Instructions were therefore issued to the provincial marketing staffs to get into touch with the cooperative departments to see how far they could work together. Little response was forthcoming except in two provinces, namely Madras and the Punjab, in which there happens to be a standing joint board consisting of the various departments concerned with agriculture; for example, co-operative, industries, agriculture and veterinary 19 Further, the function of the marketing staff was to act as an intelligence bureau and their recommendations could in many cases only be put into effect by other departments It was, therefore, felt that there should be some machinery for coordinating the work to avoid overlapping Tor this purpose it was suggested that there should be some kind of Standing Marketing Committee, the duties of which would be to examine all problems relating to the improvement of marketing and to make the necessary recommendations to the Hon'ble Ministers concerned It was stated that in some Provinces all the beneficient departments connected with agriculture and industry were included in one portfolio under one Minister and in such cases co ordination was possible However, the general principle of having some machinery available to assist the on Ministers was accepted This led to the adoption of the following resolution Resolution No 12 That there should be in each Proyince and State 1 Joint Board of Standing Agricultural Marketing Committee which in addi tion to non officials would include the Directors of Agricul. ture, Veterinary Services and Industries, the Registrar of Co operative Societies and the Senior Marketing Officer and such other railway or departmental representatives as may be found desirable The duties of this Joint Board inter alia would be to establish and maintain close relationships between the various departments concerned with marketing work and to examine and submit proposals to government in regard to improved marketing The Joint Board would also take into consideration the correlation of inarketing with Agricultural production on the hand and with industries allied to agriculture on the other one Correlation of agricultural production and marketing securo It was felt that there was need for supplying the market with the right kind of material which the consumers require and that to an adequate supply of the particular quality required some measure of control of production was essential particularly in regard to the variety, seed supply, cultivation methods etc Many local handicaps had to be overcome before producers could be induced to undertake the mght type of production and secure the corresponding benefit There was general agree ment on the principle but some conflict of opinions in regard to the methods to be adopted It was suggested that special wholetime officers should be appointed in each Province or State one for Crops and the other on the Animal Husbandry side Somo Provincial representatives however doubted the necessity for such appointments and suggested that the Imperial Council of Agricultural Reschrch should set up a Standing Comınittee on crop 20 planning. After a somewhat exhaustive discussion the deliberations the Conference were einbodied in the following resolution: Resolution No. 13. "That in each Province and State particular attention be given to crop and livestock development and to the initiation of scheme for: (a) encouraging the production of those types of produce which are mainly in demand and which are suited for commercial development, (1) encouraging increased production of those commodities for which the marketing surveys have shown openings to exist, (C) following up from the production aspect the other results obtained from the marketing surveys from time to time. Provinces and States might care to consider for this purpose the appointment of a Crop Development Officer and a Livestock Development Officer who would work directly under the Director concerned and whose duties would be to initiate and supervise these schemes. These officers should be inembers of the Standing Agricultural Marketing Committee. The Imperial Council of Agricultural Research should constitute a Standing Coinmittee for Crop Planning". Transport. It was stated to the Conference that the marketing surveys revealed that freight represented a relatively large part of the total cost of distribution and that the introduction of special station to station rates could effect a direct reduction in transport charges and provide producers with a wider market. The provision of improved transport facilities in detail would also tend to reduce costs and save damage and waste. Various speakers in the course of the discussion alleged that not only were freights disproportionately high for short as compared with long hauls but that the rates also tended to favour imports to the detriment of the indigenous trade. It was explained on belialf of the Railway Administrations that according to the railway freight structure-which may appear to the layman as somewhat complicated commodities were grouped into 16 classes, the lowest class being the first category with a charge of 38 pie per marund per mile. Within this class were grouped most of the principal agricultural staples. The highest class was rated at 1.87 pies per maund per mile and embraced explosives and similar other dangerous articles. There were three divisions into which railway freight rates could be grouped, viz., (a) class rates, (b) schedule rates and (c) station-to-station rates, There very large number of station-to-station rates, most of which were on a considerably lower basis than the class or schedule rates that would otherwise be applicable. These were given for the special purpose of facilitating the movement of produce between large growing and consuming centres. If some of these rates formed a large proportion of the prime cost of the produce this was due to the distance factor. För instance, wheat, the price of which was, say, about Rs. 2 per maund at was 21 their way Lyallpur, was being sold at over Rs 3 al Calcutta largely because the freight was a little more than Re 1 per maund, but it was apt to be overlooked that the distance from Lyallpur to Calcutta was about 1,250 miles. There were, however, cases in which short distance freights were relatively higher than long distance ones, but there were special reasons for such discrimination For example, it costs about Rs 1/12 per maund to rail cotton from Nagpur to Bombay, whereas the freight from Calcutta to Bombay more than double the distance—was only Rs 180 per maund This was because of competition from steamer companies trading between Calcutta and Bombay whose charge was also about Re 1 per maund It was pointed out that if there was to be a general reduction in the freight rates for agricultural commodities, other traffic would have to pay higher rates in order that the railways might pay Otherwise the burden would have to be borne by the general tax payer and indirectly by the agriculturist in the long run The railways had, however, already introduced certain station to station rates for agricultural commodities and were willing to consider proposals for extending such rates if they are calculated to bring increased traffic The Government could not accept the view that the railways discriminated in their rates by favouring export and import commodities to the detriment of the internal trade The Acworth Committeo in 1921 had effectively disposed of any ground for criticism of thig nature und the Public Accounts Committee of the Central Legislature, who had taken up the matter about three years ago had been given a full explanation of the position at their meeting in July, 1936 Various instances were quoted of cases where concessional rates would be desirable and it was claimed also that there was a need for reconsideration of the freight rates by river steamship coinpanies as well as railways The Conference eventually adopted the following resolution on the subject Resolution No 14. "(a) That railway administrations and other transport agencies should be asked to take all possible steps to reduce the incidence of freight charges and to provide better facılıties for the movement of Agricultural produce, (b) That this Conference deprecates differential railway freight rates calculated to favour imported as against indigenous agricul tural produce' Final Resolution Finally, in order that the deliberations of the Conference should bear fruit, the Conference resolved Resolution No 15 "That copies of these foregoing resolutions be forwarded to the Central Government and to all Provincial and State Governments and to the Governing Body of the Imperial Council of Agricultural Research with a recommendation from the Conference that they may be implemented" 22 III. CONCLUSIONS OF PROCEEDINGS. At the end the Hon'ble Chairman thanked the members of the Conference for their co-operation in discussing the various problems which had been before them and in making the Conference a success. The Provincial representatives reiterated their request their request for financial assistance from the centre for the continuance of marketing work and the Hon'ble Chairman undertook to forward their requests to the appropriate department of the Government of India. He also expressed the conviction that the personal contacts which had been made between the Hon'ble Ministers and the officers of the Central Government, were of great advantage and of the utmost importance.

23 APPENDIX CIRCULATED PAPERS ON CERTAIN SUBJECTS DISCUSSED AT THE CONFERENCE OF \INISTERS ON AGRICULTURAL MARKETING HELD AT NEW DELHI ON THE 29TH AND 30TH NOTEVBER 1938 SUBJECT No 1 Report on (@) work done and results obtained by the Marketing Staffs, (6) further work awaiting immediate attention for the development and improvement of marketing (Note by the Agncultural Matheting Adviser) The Central Marketing Staff works in close conjunction with the local staffs in Provinces and States and also with the staffs appointed by special Cess Committees eg, for jute, lac and coffee A Marheting Surveys It is essential in the first mstance to get together all the facts relat ing to supply demand, prices, methods of costs and distribution of each commodity The surveys are planned by the Central Staff and local reports are submitted by the various marketing staffs to be compiled into one all India report This forms the foundation for all future work The position in regard to these surveys is shown on the next page B Standardisation and Grading Quite early in the course of the preliminary survey work certain defects became obvious and it was not necessary always to await the final publication of an all India report before commencing to take action This applies particularly to the question of quality Much of our Indian produce put on the market is dirty, defective and adulterated Steps were therefore taken in 1937 to pass the Agricultural Produce (Grading and Marking) Act, 1937, for prescribing standard methods of grading and marking and for establishing experimental grading stations to see to what extent producers could benefit by putting high grade produce on the markets The results of these efforts are indicated on pages 25 and 26 infra As a further means of reducing the amount of dirt and adulteration the attention of associations of manufacturers and traders was directed to the need for uniform standard contract terms throughout India for the purchase and sale of the main staple commodities, such as cereals and oilseeds That these efforts have met with a considerable amount of success will be apparent from page 27 infra C Development Work Various other practical lines of action have also become apparent in the course of the surveys Many recommendations are of a general character and relate to the regulation of markets and market charges, the better organisation and control of dealings in "futures", improved market news service, establishment of standards of weight, etc, as indicated on pages 27 to 31 infra Other special recommendations regarding particular products will be found on pages 31 to 37 infra So far as development work is concerned it will be appreciated that the main function of the Central Staff is to advise and give the initial 24 lead. Local conditions vary whormously and suitable adaptations of practical nature must bemarle locally to ment such conditions. Province or Slate, however, has a complete monopoly of the productie and trade of any single agricultural counxlity. External markets eitho in India or abroad are therefore essential and matters affecting the inter provincial and export trade are important, consideratious. No Province or State would wish to lag behind others in improving the conditions of their agriculturists, but naturally the legislative programmes, political exigencies and finances of the various Provinces and Slules will largely determine the pace and direction of this work. cardinal point nt issue is to see how far it may be possible to maintain in future steady progress throughout the whole of Indin in regard to the improved marketing of all commorlities. 1. Marketing Survcrs. The progranıne of survey's originally planned and subsequently adopted at Marketing Officers' Conferences or commenced by special Cess Committees included the following commodities:--- Cercals and Oilscci's Wheat. Rice, lin reu, Groundnut:, Barley, Gram, Jusinrel. Repared and Torin and Maize. Animal Husbandry Produc! ('attir, Eym, Jilk, Hide and Skins, Gheo and Butter, Wool and Hair, Sherp and Cirats end Fich. Fruits and Special Crops Tobacco, Jangocs, l'otturn, Grapes, Bananas, Apples, Oranges, Pineapples, Coffee, Coconuts, Sugar, Luc and Cashirwnuts. Miscellaneous Co-operative Marketing, Markets and finirs, Cold Storage and Transport. . Torl done. Reports comploted and published : Wheat (including Hindi and Urdu editions). Linscod. Eggs. Tobacco. Grapes. Cold Storage and Transport in Delhi. Work in progra88. Commodities still under survey by Market. ing Staffs of Provinces and States and of special Cess Committees : Alarkets and Fairs. Maize. Barloy. Gram. Mustard, Rapeseca and Toria. Coconuts. Gheo and Butter. Sugar. Cashewnuts. rvoy's completed by Provincial and State Staffs (with certain minor excep. tions) and reports being compiled by Central Marketing Staff: Milk. Cattle. Coffee. Rico. Groundnuts. Bananas. Iides and Skins. o-operative Marketing. otatoes. Wool and Hair, Sheep and Goats. Fish. Lac. Vangoes. Apples and other pomo fruits. Oranges and other citrus fruits. Pineapples. S.Survey work has not yet been started in respect of important commodities samum, Castor-seed, Millets, Chillies, Vegetables, Dried fruits, Poultry, Animal y, etc.

25 B Standardisation and Grading. Bitcommendations arising out of various preliminary surveys jndicatcd the need for the standardisation and grading of agricultural produce in order to eliminate waste, reduce the number of malpractices such as adulteration, etc, and provide a proper basis for trading in the interests of both producers and consumers The Advisory Board of the Imperial Council of Agricultural Research recommended that this work should be divided into two sections (1) Marketing Legislation for prescribing standard grades and methods of marking for certain commodities such as fruits, eggs, ghee, tohacco, hides etc, and the establishment of experimental grading stations, and (2) Standardisation of contract terma for heavy staple commodities such as cereals and oilseeds, to be arrived at in consultation with manufacturers and traders and to be controlled subsequently by trade associations, on the lines, gay, of the Last India Cotton Association (1) Marheting Legislation and Establishment of Grading Stations Marketing Legislation Tork done Anatting attention Agricultural Produco (Grading and Marh (I) Provincial Governments, Chombers of ing) Act, 1937, passed by Central Commerce and trade interests have been Government and Rules published consulted and a few replies are awaited for authoring persons to use the regarding the addition of certain items to AGMARK in respect of the following the Schedule attached to the Act, eg, commodities Fruit products, Cotton of specified bota. Fggs Grapes nical varieties, Ata, Rice of specified Tobacco Oranges varietics, Orlaceds and oilseed products, Hides Apples I heat of specificd vaneties Skins Mangoes Glice Plume Certificates of authorisation have been (II) The promulgation by Central Goicm. 1suod to 39 pachers of AGVARK ment of further Rules for thic arious products commoditice, and amendinents of crist, ing rules, some of which have already been notified Lettors havo bocp jagued to 34 persong (1 authorising them to inspect produco graded and marked in accordance with the Act and and rugh- 26 Establishment of Grading Stations. York donc. waiting attention. The following grading and packing sta. Establishment of many more grading sta. tions have boon cstablished somo, tions in Provinces and States. This ine.g., for fruits, wore run only during the volves the provision of: ROASon: . (i) certain funds in the initial stages to the stations experimentally for demonstration purposes, run Eggs (20). Pabbi, Peshawar. Kotta. rakara, Chongannur, Quilon, Delhi, Now Delhi, Bombay (3), Calcutta, Etah, Mardan, Havelian, Lucknow, Baroilly, Rampur, Chinnnganjam (Madras Pres.), Serajganj, Daulatganj. (ii) adequate staff to start and super vise the running of the stations, Tangra, Hides (5). Agra, Delhi, Garden Reach, Rampur. Ala (2). Delhi, Lahorc. (iii) authorisntion of a sufficient number of suitablo persons (c.g., marknting and agricultural officers, market superinten. dents, etc.) in Provinces and States to inspect graded produce and ensure adequate control of quality particularly of food products such as ghee, eggs, etc. (iv) steps to popularise and make known AGMARK products to consumers particularly in large consuming centres. Tobacco (1). Guntur under tho nuspicos of Indian Tobacco Associa. tion, Fruits (13). Nagpur (oranges), Nasik (grapos), Tarnnb (plums and pcaches), Shoikh Moliammadi (grapes), Kashinir (apples), Assam (oranges), Sikkim (oranges), Rahuri (oranges), Bulsar (mangoes), Digha (mangoes), Malda (mangoes), Malihabad (mangoes), Baluchistan (peaches and grapes). Ghee (18). Khurja (2). Aligarh, Hathras, Firozabad, Sirsaganj, Jaswantnagar, Shikohabad, Etawah, Cavnpore, Okara, Jaranwala, Phullerwan, Bombay, Calcutta, Delhi, Porbandar, Jamnagar. Results. These grading stations have shown, particularly in the case of fruits and eggs, that producers can, in this way, secure enhanced prices for graded produce amounting in some cases to over 25 per cent. more than for the same products ungraded, even after allowing for discarding that part of the produce which is defective and not worth sending to distant markets. At 10 fruit grading stations for which complete records are available where over 1 lakh rupees worth of fruits were graded, the net increased cash return on the graded produce as compared with ungraded averaged over 9 per cent. i.e., after allowing for the commercial cost of grading and for discarded produce. The average increased net return on the egg grading stations, even allowing for certain failures, amounts to 5 per cent. and on ghee 12 per cent. About 1 lakh rupees extra return has been obtained on these three commodities alone. So far far twenty lakhs rupees worth of graded produce of all kinds have been put on the market.

27 (2) Standardisation of Contract Terms Tork done Awaiting attention. Trade Conferences-- Ten trade conferences have been held and proceedings, including relevant papers, published Wheat Standard contract terms drawn up for ho nertain other white wheat and adopted by the princi pal & Bociations, millers and Kararhs spot" trad. exporters as the basis of " futures" trading t for Duruin 12 Linseed Standard contract terms for small" Adoption of the standard tertas for “epot" and "bold" linseed prepared and trading in the manlıs adopted by the leading associations Adoption of terms by exporters and millers at Bombay and Calcutta in their upcountry buying contracts Recogtution of terras by the Incorporated Oilseeds Association, London Groun inuts-- Bagis of standard contract prepared and Further conference to be held to settle final discussed with trade associations and terms manufacturers | Other products- Over 1,000 analyses carried out on Mus. Discussions between the Central Marketing tard, Rapeseed, Toria and their ouls Staff, and trade and manufacturers with a view to determining quality associations have been held in the case of characteristics as a preliminary to coffee Others will be undertaken in due defining standards Detailed exe course mination and analyses of rice, gram, maize, barley, wool, butter and coffee havo also been made NOTE -- In the course of the worl on standardisation, the Marketing Staffs have collected 13,000 commercial samples of 24 commodities and arrangod for ther examina. tion and analyeis at 26 different institutions throughout the country Results ---Introduction of mutual instead of non-mutual terms in the standard contracts for cereals and oilseeds will reduce the amount of logs on account of dirt and other impunties put on the market For example, in the case of lipseed sent to Calcutta alone the extra cost of freight on dirt and cleaning charges is estimated at Rs 3 lakhs per annum The clean. ing charges at Karachi on wheat in the course of a year amount to somewhere about 4 or 5 lakbs rupees These expenses are largely unnecessary and to that extent could be saved by the general adoption of the nen contract Further, the scale of allowances is 80 arranged that producers of high quality produce will in future get an adequate premium The standardisation of contract terms in general promotes more rapid and efficient inter trading between different parts of the country and with buyers abroad C Developinent Work. The published reports and the preliminary surveys have given rise to a number of recommendations of a seperal character as well as special recommendations relating to pirtscular commodities Development work for the improvement of marketing may therefore be divided into two categories, (1) General and (2) Special.

28 (1) General. The general recommendations are designed to expand the market for Indian products and secure for the producers a larger share of the con-. sumer's price by reducing the existing high costs of distribution. The following points particularly have been recommended as necessary:--- (a) Regulation of markets and reduction in the number and amount of market charges, (6) Standardisation of weights and measures, (©) Improved market news service, (d) Elimination of waste and damage in the course of distribution, (e) Measures calculated to reduce price risks and the seasonal depression at harvest time, (f) More efficient distribution and expansion of the market. (a) Regulation of markets. The main recommendations under this head are: (I) that all existing markets and market charges should should be registered, (II) that regulated markets should be established in which (i) the number and amount of market charges should be fixed and the number of payments in kind reduced, (ii) persons entitled to levy charges and market operators (e.g., - dalals) should be licensed, (iii) practices in regard to weighment, sampling, -auctioning, etc., should be standardised. Work done, waiting attention. A model Bill has been prepared and Introduction of a Markets Act in Provinces circulated to all Provincial and State and States where no regulated markets Marketing Staffs. exist. Central Provinces and Berar, Bombay, Extension of Markets Acts in those Provinces Madras and Nizam's Dominions al and States where they exist so as to cover ready have Market Acts and regulated all agricultural commodities and include Inarkets. markets in large consuming centres as A Markets Bill has been introduced into well as in producing areas. the Punjah Assembly. It is under. There should be Provincial or State control stood that the question of introducing over regulated markets. corresponding Bills is under active In order to multiply the number of regulated consideration in the United Provinces, markets rapidly it is essential that the Bengal and Bihar, initiative should be taken by Governments and not left to producers or local authorities who are liable to be deterred by vested interests. (b) Standardisation of Weights and Measures. The multiplicity of local weights and measures leads leads to countless malpractices and makes comparison of prices impossible. Scales and weighing machines are generally defective. The absence of standard weights hampers trade in every direction and makes trade between part of the country and another particularly difficult. Certain States have prescribed standards of weight, e.g., Mysore, where a maund=24 lb. Prior to the Government of India, Act, 1935, the Bombay Government passed an Act standardising the Railway Maund (82-2/7 lb.) and for making standard weights compulsory by stages one 29 40 Roers throughout the Presidency With the passing of the Government of India Act, however, standards of weight became a central subject, but once the standards are prescribed the question of their introduction along with guita able multiples and sub multiples approximating the local weights in com. mon use becomes a question for local governments It has been observed that when the introduction of standards of weight has been left to Muni. cipalities and other local bodies the results have been negligible TYork done Awaiting attention The Central Government has decided to When the necessary central legislation has legislato and a B:ll is not under prepara been passed it will be for Provincial Gov. tion for introduction in the Legislative ernments to undertake further provincial Assembly in the next ordinary session legislation to introduce the standard This will standardiso the cardinal weights weights in their areas along with suitable in the relation local multiples and sub multiples It is 180 grains al tola understood that the question is under 80 tolas = 1 keer active consideration in Madras, Bengal, = 1 maund ($2 2/7 United Provinces and Bihar ibor 100 lb The creation of inspection staff and labora Troy) tories the elimination of defective scales, the introduction of standard measures, aro matters falling entirely within tho scope of provincial governments It would be for Indian States to introduce corresponding legislation adopting the all India standards of weight and to take such action as may be necrssary to bring them into operation (c) Improved Marhet News Servios The surveys have shown that in respect of many commodities there is a lack of co ordination between markets Tor example, prices may be falling in one market and rising in one not far distant, one market may be glutted with supplies and in another produce may be scarco In order that the best possible price may be obtained, producers and the trado should be kopt regularly informed of the position regarding supplies and prices Thero aro two special kinds of news service, viz one for the markets and one for rural aroas 10, for producers themselves TYork done Aurailing attention. Weekly broadcast from Delhi bs Contral “Official" Gazette prices nro of little 1190 Marko ing Staff in Fnglish and Hindus from a marhoting point of vies per system of daily prior recording in marhets (i articularly regulnted markets) and from Trade sources nee is to lc orga- This bullotin is also 195urd to tho prie nised Similarly for the information of local I ocal Vari eting Staffe night with adınntago producers daily prices at Hopur are get in touch frith local Station Directors of brondcast or cry ovening for Wheat Broadcasting an idruse schemes in consul KTAIN otc Doily prices and number tation with them of buffalocs arriving and sold in Bombas collrcted for distribution to producing and deepntcting contreg A bron least forvico Arranged from Lahoro I Ailing radio facilities the ineur of Iulletinn by to Punjab Varketing Statin regirl dirert or to the local por and tlmpeting to local products Price of frunte te up of price in ingress lioulik trid corded at a Arnes of markets and a bul particular attention Iming simptn front letin iraulot by local marketing stair in in hri' malete United Province in conjunction with tho Trut Desclopment Board In Vad Ta vockly prenanm collected and pub linked in the gazette and the Indian Tobreco 1590Cintion (Guntur) publishes a monthly bulletin regarling tobacco A pro 1 T 30 (d) Elimination of waste and damage in the course of marketing. The amount of waste in the case of perishables is enormous and even in non-perishables, such as wheat and linseed, the damage in the course of a year amounts to many lakhs of rupeos. The transport of defective, adultierated, dirty and poor quality produce to market is a source of waste and loss but physical dariage may be attributed generally to defective storage, transport and containers. Work done, Arcaiting attention. Efforts are being made to have improved More efforts to convince persons concerned concrete storage (of Muzaffarnagar type) that capital expenditure on improved stor. adopted at various centres in Punjab and age pays through saving of waste and United Provinces. better prices owing to quality being main- Esporiments conducted on refrigerated tained. transport showed a saving of loss and There is also room for development of cold improved prices. stores, particularly in connection with Esperiments on improved containers for fruits, vegetables, eggs and fish at the eggs indicate that losses in transit can leading consuming markets. be considerably reduced. Senders need education in rise of refrigerated transport and storage. More needs to be done to improve indigenous containers used in various Provinces and States and to introduce standard types. Organised and more rapid collection of produce from village Holdings in the case of eggs, ghee and other perishables. (e) Reduction in price risks and in seasonal depression at harvest time. Price risks in the case of perishables are very high owing to the irregularity of supplies and lack of suitable temporary storage. In the case of non-perishables apart from good long-period storage, it has been observed that sound properly-run "futures” markets have a stabilising effect on the seasonal price depression and that the existence of upcountry "futures'' markets which are influenced by a large, relatively steady internal trade has a balancing effect on "futures” markets at the ports which may at times be unduly influenced by the fluctuating riature of the exports. "Hatka” or “Satta” associations of a gambling type (whether upcountry or at the ports) enhance the seasonal price depression to the detriment of producers. Work done. Awaiting attention. In regard to perishablos, the 1.0.A.R. Better daily news service regarding supplies fruit storage research scheme has defined and prices of perishables and arrangethe conditions of successful storage for ments for temporary cold storage, partimangoes, oranges and certain other cularly at large consuming centres. fruits and vegetables and shown which of a number of varieties studied are commercially suitable for storage and transport. l'or non-perishables, Punjab has appointed Elimination of the numerous small fatka: a committee to consider the question (satta) markets of the gambling type and of the reduction of the number of creation (where none exist at present) of " futures fatka) associations. large, financially sound, stable futures associations operating on a non-profit sharing basis. It is understood that the question of oxer. The firance of marketing and the seasonal cising control ovrr such associations depression in prices requires further local by registration and approval of their study, particularly as affected hy the rates constitution and bye-lats, is also under of interest of co-operative credit societies. consideration in Bihar.

81 co in ) More efficient distribution and expansion of the market Apart from obvious reductions in the cost of distribution by way of a reduction in market charges and the elimination of price risks a larger income may be gained for producers as a whole by the more efficient dis tribution of their produce so as to provide them with better prices (particularly for high quality) and a wider market for increased production from their holdings Work done Awaiting attention The recommendation of the various survey reports so far published indicate that a good deal can be done to expand and stabılıce the market for local producers by benefit to producers by giving better increasi g the number and improving the service than the individual middle technique of small industrialiste depen men and being more efficient than the dent on agriculture eg Chakki millers ordinary type of producers' the case of cereals and owners of operative marketing society Ghanıs (Cheki us) used for crushing oil seeds so far as the expansion of the market is Improvements in processing recommended concerned the Central Marl eting Staff in the reports would not only result in have had negotiations with interests better prices for hides rice tobacco, etc, concerned for the establishment of but extend the marl et, eg by preparing factories for the production of dried Indian tobacco (chewing and cigarotte) liquid or frozen eggs and for the mamu of a quality which can replace imports facture of rce starch Discussions have also taken place with a wider extension of co operative marketing view to having Indian wheat recognisod activities to include the cooperative orga es tenderable against the futures" nisation of primary village middlemen contract of the Liverpool Corn Trade (eg there are at least 150 existing centres Association and in regard to the further wlere village egg collectors might be expansion of the growing market for organised with henc fit to producers) and Indian tobacco in the United Kingdom the further development of urban co ope In the Punjab consideration is being given ratites and the closer union of existing to the production of fruit juices and consumer s co operative associations with canned products agr cultural co operatives needs to be undertaken on a realistic basis The development of local industries allied to agriculture requires careful study with a view to their expansion It is essential in such cases however to ensure that the technical aspects of the question are under stood, that the business management will be sound and that a sufficiently wide marhet exists either in India or abroad for the particular product it is proposed to manufacture This intoles a special and detailed survey in each case (2) Special As already stated no Province or State completely monopolises any one commodity, but the production in each case is to some extent loca lised so that ertaru Provinces and States are more vitally concerned than others The special problems of the various products are also to some extent local in character and can best be dealt with by local marketing staffs The general marketing improvements referred to above would bring about an improvement in each individual commodity It would not be possible to set out all the improvements specially required for each product and applicable in the different areas Te follow nicy is loever a summary of some of the main specific points calling for attention in the various Provinces and States 82 is а liruits and Special Crops. Ifruits and Vegetables.---The value of Indian fruit production alone is estimated at somewhere between 100 und 200 crores rupees and yet information regarding the acreage and quantity produced in the different areas is almost entirely lacking. There is therefore an urgent need for accurate surveys of the production of fruit and vegetables as a preliminary to further development work, particularly in the way of the manufacture of fruit products. The experimental grading stations have shown that on the average graded fruit has secured a net return of 9 per cent. more than ungraded and that fruit packed in improved containers commanded higher prices. This work therefore should be extended. Partly owing to the absence of proper market information and also to the lack of adequate credit facilities at the time of harvest and marketing, growers rule sell their standing crop to contractors. The marketing surveys show that when growers sell direct in the cons onsuming markets they secure Rs. 150 to Rs. 200 more per acre. The organisation of cold storage accommodation at the principal distributing centres would reduce price risks and save a great deal of damage. Growers lose heavily by planting varieties which are not of commercial value and by planting fruit trees which are not true to type or which have been grafted on inferior root stock. There is, therefore, need for for the introduction of some system of registration of approved plant nurseries and also for ensuring that no departure is made by planting more new varieties with different characteristics in areas which already have reputation for growing one particular type. The utilisation of the crop for making fruit products requires local study and before attempting to develop the production of fruit juices and syrups or a canning or bottling industry a special local survey has to be made to ensure that a sufficient quantity of fruits (or vegetables) is available in the neighbourhood to keep a factory running on economic lines and also the types grown suitable for the purpose. In addition it is necessary to ensure that an adequate market exists for the particular kind of product which it is proposed to manufacture. Tobacco.-—There are five main growing areas and in all of them with the possible exception of Nipani there is a striking absence of any established markets where growers can bring their produce for sale. It is therefore essential that regulated markets (with a system of open auctions) -should be established at a few centres in the principal tobacco growing "areas of Bengal, Bihar, Nipani (Bombay & Deccan States), Charotar (Bombay & Baroda) and Guntur (Madras). The Madras Government have notified their intention of applying the Commercial Crops Markets Act to the Guntur area. This example could be followed elsewhere. High quality is important in tobacco, particularly since the general trend in the price of low quality is downwards while that of high quality continues to rise. The downward trend in tobacco prices in Bengal and Bihar particularly requires attention with a view to producing types which are more in demand. Measures are needed to improve the production and distribution of pure -Secd and seedlings, to control the quality of tobacco grown and cured and a are 33 to introduce systematic grading from the grover onwards The licensing of fluecuring barns, re drying plants and of eaporters and other buyers would apper to be a necessary preliminary to proper control lle production, marketing and export of cigarette tobacco on the basis of the standard grades already prescribed is indicated and in this the soluntary efforts of the Indian Tobacco Association should be used The export trade, particularly in bigh grade Virginia cigarette lenf to the United Kingdoni, is developing rapidly, but will continue to increase only so long as strict steps are taken to control quality on the basis of standard grades Attention may also be directed to the fact that at present India is dependent on the USA for the regular supply of pure Virginia seed and for the expensive wooden hogs leads used for paching cigarette leaf Animal Husbandry Products Eggs --Nearly 75 lakhs of eggs liave been graded and sold under the AGMARK The gain in price to producers has been as much as 15 per cent in certain districts and allowing for certun failures the average gain over all stations exceeds 5 per cent There are at least 150 important egg collecting centres (in some of which up to 50,000 eggs could be collected daily) already in eustence where the co operative grading and marketing of eggs could be undertaken, the main object being to organise the village collectors An association of AGMARK eggs packing stations should eventually be establıshed, somewhat on the lines of the Egg Central Ltd in England Improved containers have proved to be successful in effecting a consider able reduction in the loss due to breakages in transit which is estimated to be over Rs 15 lakhs per annum Eggs worth a similar amount are lost annually owing to the absence of proper housing of poultry The loss of fowls themselves is extra Some attention might be paid to this, in connection with rural reconstruction work The improvement of desi fon ls and duchs also needs attention By not testing the quality of eggs in time and by allowing stale eggs to be transported and marketed at reduced prices, the trade suffers further loss of nearly 30 lakhs of rupees annually A considerable part of tlus amount could be saved, if grading were introduced at the production end The possibility of developing an export trade from Bengal, Travancore/ Cochin and Madras Presidency calls for further investigation in those parts particularly with a view to establisling factories for the production of dried and frozen eggs The supply of eggs as ship s stores at the ports is also capable of expansion Ghee - Enquiries show that it is difficult to obtain pure ghee not only, in the cities but also in rural districts owing to the prevalence of adulteration Consumers are reluctant to pay higher prices even for the pure product owing to suspicion and fear of adulteration A number of grading stations have been established and already 3 25,000 tins of ghee of various 817es from 1 seer upwards weighing over 15,000 maunds and worth about 71 lakhs rupees have been sold under the AGMARK The graded ghee has been selling at 2 or 3 annas & seer more than ungraded More grading stations are needed in almost all Provinces and States, but the tightening a 34 1 as up of the administration of the Food Adulteration Acts and Regulations is urgently called for in order that the graded ghee may become more rapidly established. The inspection and sampling of ghee under the Food Adulteration Act should be extended to small mandis also, adulteration generally starts in the village. An Association of AGMARK ghee producers should be formed to carry the costs of quality control; including the expenses of a central control laboratory. Vegetable oils and oil products are used for adulteration of ghee mainly cwing to their cheapness. It has been recommended that grading, packing and marking of such products should also be undertaken to ensure that they are free from animal fats and are manufactured up to the highest possible standard. Milk.—The practice of producing milk in the urban areas is uneconomiqal and unhygienic. Rural producers should be organised preferably on a 'Co-operative basis to collect and transport milk to the nearest consuming 'centres. Work in this direction has already been done with considerable success, for example near Calcutta, Madras, Allahabad and Nagpur, and should be extended to other areas. For meeting the needs of large cities, pasteurised milk can be transported for long distances. Potential areas for developing this trade are to be found in North Bilar and Gujerat. Adulteration of milk is apparently on the increase and in 1935, nearly 35 per cent. of the samples examined were found to be adulterated. Records of some leading municipalities show that less than one sample per shop per annum is being drawn. Proper enforcement of the Pure Food Laws is therefore urgently needed, and the fines imposed for adulteration should be exemplary. The standards of purity also need revision. In this case technical difficulties arise owing to the fact that there are two types of milk, viz., cow and buffalo, having different fat contents. The general tendency is to dilute buffalo milk which has higher fat content and to declare it as cow milk when an inspector draws samples. There should There should therefore be regulation to the effect that all milk cans should be properly marked indicating whether their contents are cow or buffalo milk. The standards should also cover cleanliness as well as the richness of milk. Dairies and cattle stables which conform to certain hygienic conditions should be encouraged to market their milk under purity, freshness and cleanliness, Selling his produce in the form of fluid milk is most profitable for the producer. Propaganda and education to encourage milk consumption might be undertaken at suitable centres, particularly in schools. Cattle. —Nearly 140 lakhs cattle annually assemble in the important inarkets and fairs and at least 12 lakhs of these are required to meet the demands for milk cattle in urban areas. The establishment of suitable terminal markets and stockyards at all large consuming centres are needed to facilitate efficient marketing. In those markets the market dues should be regulated and be reasonable. At present charges range from 1 anna to about Rs, 5 per head. a a guarantee of 85 Market news with regard to mulk prccs, number of ar ols, oumber of orpected arrivals and the range of pnco for cons and buffalocs at consum ing centres sliould be mado available in the producing areas in the same way ng is already being dono at Bombas Milchstock should be registered in herd books and a certificate of rc. gistration along with particulars regarding performance, age, ctc, should accompany each animal There are at least 500 or 600 goshalar and pinjrupoles throughout the country and the question of utilising these mistitutions for improving the qualiti necds special consideration in anch province In cattlo morkots and cattle fair, 1 system of licensing dalalo is found to reduco malpractices and the system sccms worths of ortension Hadies and ST 1918 Almost 2 lahls of hides have been so far gridd at the experimental grading stations This work has shown that about 10 ixer cent of the Indes consist of C grado and rejections due to flyer s cuts, brand marks, gall and gond marks, warble holes, ctc The practice of grading Ides at mumcipal centres should be further mtended and combined with demonstrations so as to train the flagers The system of payment on grade basis will csentunlly help to check the practice of branding the amunal on salunblo parts of the lucs, but further propaganda needs to be done in order that branding may be confined to the cars or checks Nearly 6 million pieces of ras hides, 1 inillion pieces of liall tanned Indes, 21 million picccs of rus shins and 9 million pieces of bull tanned skins nrc cxported annually from Ir dia The Indian marhet for lonil tanned shuis is controlled largely by the auctions held in the United kingdom Systemntic nuctions would be desirable in tlus country and a 'futures' market for half tanned skins either in India (odras) or London In Corcals, Pulsex and Oilseeds II heat - Iho standard contract terms up art from being used as tlk linsis for futures trading in the large centres blould also be intrxlucci for 'spot' trudil, in the sinnll country inarlet This sould not securing a premium 'o grouens of better qualits Ile practice of 'dori sales at one price of Inrion lots of its Te re mi pomuru al oul le abolatot particulirli in regulated markets Hicry effort pliould be inue to eliminate dirt Ilir coring of artrn dirt on went from the Punjab to horichs for simple to brine v befucon 1 and 14 Inhlis rurces per annuin Slonige — 'I he damage or loss (?count of us 16 our cron TOAT I'mperis cu a'ru tri immirovlje can eliminate much of this and can I min ni Air As (1A Vuraffarnagar Where to get x118 storage, something mht be our finns ce plein rither thmush on opamise on neitinn pornir (111 pi !! !! **al fram torporation Hrilor clara. Accommodatientall imple in a mund fistem of "futur" 1111ng tn 11 laptop derretion in friere *ori 36 Associations trading in "futures' need to be controlled and brought within the scope of the Markets Acts in Provinces and States. Improved hard types of wheat can secure a premium of about Re. 0-4-0. per maund above the average. Arrangements should therefore be made to market such wheats separately and to link up, with AGMARK ata turned. out by chakkıs and roller niills. Distribution of seed wheat of improved varieties should be concentrated in specified localities and not spread indiscriminately so as to cause mixing. of types. Rice..-High premium can be obtained for certain qualities of fine rices. It is essential, however, to market them separately in pure form. Mixing. with lower grade rices should be prevented, probably by the use of the AGMARK, Storage, particularly of such high quality rices, is important and the premium on old rice is adequate to cover the cost of storage. Parboiled rices have been found to be superior to raw rices in many respects in that they are inore nutritivc, cook better and give a high outa turn of whole rice from paddy. The latest methods of parboiling need to be tried out and some propaganda to increase the consumption of parboiled rices would help the trade. Certain areas, c.g., Patnai, Bijar, Sirimani, etc., might with advantage concentrate on the production of types suitable for export and avoid the mixing of types in their respective areas. In deficiency Provinces, such as Vuited Provinces, Assam, Micras, and Bombay, the introduction of a limited number of heavy yielding varieties would appear to be indicated. Paddy and rice are commonly sold by measure and not by weight. The standardisation of measures is therefore important. Linseed.The standard contract terms should be more widely adopted and used for “spot" trading in upcountry markets. The elimination of dirt is, in this case, even more important than in wheat. Bulk storage upcountry affords prospects of economy. Where a large number of village ghanis exist in a producing area the inarket is steadier and the harvest time depression is less. Since the oil from such ghanis can be sold at a premium their extension should be encouraged. The distribution of improved varieties and types of seed needs to be taken in hand. At present practically nothing is done for this crop. Linseed oil is used in considerable quantities for adulterating mustard oil. The administration of the Food Adulteration Acts should be more stringent to ensure that no mixing of edible oils is permitted. Mixing may liowever, be permitted in non-edible oils, but the nature and amount of admixture should be declared, particularly where mineral oils are mixed with vegetable oils (e.g., with linseed). Groundnuts.-So far as this crop is concerned, it seems desirable in general to concentrate on the export trade, since India has a very large export trade which alisorbs about 25 per cent. of the production. Crushing i: India is also steadily expanding and it may be noted that the quality requirements of Indian and foreign crushers are practically identical.

37 Standard contracts for buying and selling groundnuts foi crushing should be introduced and a system of AGMARK grading and marking started for edible (handpicked) groundnuts As the crop is at present almost entuely used for crushing into oil, the octroi charge in certain areas, which is based on the rate paid for dry fruits, is excessive and bears heavily on an industrial raw material Licensing decorticating plants should be undertaken with a view to controlling the practice of wetting NOTE ON POINTS IN REGIRD TO TRANSPORT BROUGHT OUT BY TIIE MARKETING SURVEIS (By the Agricultural Marheting Adviser) There is considerable coastal traffic between the different ports in India and large quantities of agricultural produce are handled by river transport in certain urens Road transport is a large factor in short distance traffic The railways, however, play by far the most important part For example, over 2 million tons of wheat and linseed are put on rail in the course of the year, the average annual traffic in unmanufactured tobacco is more than 32 lakh maunds, and all the long distance transport of eggs 18 entirely done by rail Rail Transport lhe marketing surveys show that the cost of rail transport constitutes a big item in the total cost of distribution In the case of wheat, for example, the difference between the price of Punjab wheat at Lyallpur and of the same wheat at Calcutta is Rs 1.1 7 per maund of which Rs 104 is due to rulway freight alone The average rail freight paid per dozen of eggs is Re 006 which represents about 15 to 17 per cent of the producers' price The question of rulway freight charges, therefore, is one of importance Any extension of the market for our produce would encourage further production and benefit railways in the long run Madras Presidency, for example, produces the earliest crop of mangoes amounting to about 4 lahhs maunds a year but only a negligible amount of this produce reaches northern markets In the same way Satgudi oringes of Cuddappa (ſadras) do not reach northern India although they are arulable during the three months September November, when supplies of Nagpur oranges are small A trial experiment in the reduction of freight charges on plantuns exported from Madras to north India during this year his resulted in a considerable increase in traffic The reduction in the rate on eggs has not only resulted in opening up nen outlets for eggs produced in the North-West Frontier Province hut has also increased the long distance trific of the railways So far as cattle are concerned a concessional rate of Re 0 2 9 per wagon per mile introdured by the G I P Rulway in 1937 resulted in 64 wagons being despatched from Singaji Fair in the Central Provinces is against 6 in the previous rear and a reduction of 25 per cent in return freight on dry she buffaloes from Bombay to Mehsana increased the number of warons from 1934 to 303 in 1936 There is no doubt therefore that the introduction of special rates will help to expand the producers' market and bring more traffic to the railways 42 in 38 a The question of bringing about a direct reduction in transport costs by the multiplication of special rates was considered at an early stage of the inarketing work. By arrangements with the Imperial Council of Agricultural Research and the Railway Board the agents of Class I railways were asked to undertake experiments in quoting special reduced rates for a particular commodity from one area to another provided that thereby the movement of that commodity could be stimulated to the general benefit of both producer and consumer and also railway revenues. They were also asked to get into touch with local Directors of Agriculture and Marketing Officers in order to explore the possibility of finding new markets and in consultation with them to take such steps on the lines indicated. As result of subsequent discussions with the local marketing officers many roduced rates have been introduced and the following cases may be quoted as examples. The North Western Railway reduced the freight on graded eggs from 1/2 to 1/3rd parcel rates from Pabbi to Lahore, Delhi, Karachi, Hyderabad (Sind) and later to Bombay and made & similar concession on ungraded eggs from the producing areas, viz., Dargai, Mardan and Havelian 'to the main grading centre at Peshawar. This railway has also recently allowed 1/6th parcel rates for return empties. The East Indian Railway reduced the freight on fruits and vegetables from 1/2 to 1/3rd parcel rate in September 1936, and recently introduced parcel rate on cauliflowers sent to Howrah. The Eastern Bengal Railway reduced the freight rate on parcels of oranges booked from Siliguri to Calcutta from Rs. 1-4-0 to Re. 0-14-0 per maund and also reduced the freight on outward traffic on Sikkim. The Madras and Southern Mahratta Railway have allowed concessional rates this year on limes sent to Calcutta from Katpadi, Venkatagiri, Nellore, Tenali, Bezwada and Palakot. The South Indian Railway granted in July a small reduction in the freight on eggs (from Rs. 2-5-0 to Rs. 2-3-0 per to Rs. 2-3-0 per maund) sent from Kottarakara to Madras, and H. E. H. the Nizam's State Railway introduced from January 1937, a special concessional rate of Rs. 2-3-9 per maund on wet hides from Agra to Madras. It will be observed from the examples given that most of the railways have shown a ready response in regard to the introduction of special rates on particular commodities. A closer contact in this respect between the marketing staff and the railway authorities would be in the interests of the producers and trade, and it is suggested that to secure this, the Senior Marketing Officers in Provinces and States should arrange to meet the Commercial Officers on railways as frequently as possible, and that the Indian Railway Conference Association might be asked to consider inviting the Agricultural Marketing Adviser to attend meetings of their Commercial Committee for Interchange whenever subjects pertaining to the marketing of agricultural produce are under consideration. Certain improved facilities would tend to bring about a reduction in the cost of transport, for example where special wagon rates are in force on certain railways the minimum quantity is relatively high and the forwarding of mixed consignments is not allowed. The question of making & oranges from 39 further reduction in the minimum load requires consideration and the fortfarding of mixed consignments so long as the commodities are of the same class should be encouraged. The introduction of special rates in respect of a lower minimum maundage would obviously assist producers who are as a rule small consignors. Marketing Officers in the Provinces might well be instructed to get into touch with the Commercial Officers on railways, with a view to ascertaining what could be done to meet the requirements of the trade in regard to these matters. The auxiliary services for the systematic collection and delivery of produce could be usefully extended. A system of street delivery has recently been introduced by the N. W. R. in Lahore and Delhi. The service applies to parcels weighing less than 5 maunds and booked by passenger train. The freight plus a small additional charge is payable on delivery except in the case of perishables which must be prepaid. A similar service is provided by the G. I. P. Railway in Bombay. The E. I. Railtray in Calcutta has provided a system for the collection of parcels and for the collection of produce from the Calcutta Cold Storage, on payment of an extra charge. The cost incurred by merchants and others in taking delivery of large consignments at stations is sometimes fairly high particularly where the Chaudhari system is in vogue as, for example, at the Howrah goods depot in Calcutta where rates are comparatively higher than at Kidderpore Docks which is a free point worked by a number of competing contractors. It would appear that the system of collection is capable of development and also the delivery system for small parcels which should, if possible, be extended to include wagon load consignments. Certain improved rail facilities would help considerably in reducing the total costs of distribution apart altogether from the question of railway freight. The marketing surveys have shown that considerable wastage of produce occurs in the course of transit and that much of this could be avoided by the provision of proper facilities. At one important station in Bihar the loss in respect of linseed trans-shipped from narrow to broadgauge is estimated at 1 per cent, principally owing to the absence of transit sheds to protect the produce against the elements aggravated perhaps to some extent by the condition of the gunny bags used. A large quantity of some of the important fruits and vegetables such as bananas, mangoes and potatoes rre carried in goods wagons and wastage up to 25 per cent has been observed. This is owing to the fact that no shelving is provided in the wagons so that the produce at the bottom becomes crushed and damaged. Further iron wagons get so lot that much of the fruit becomes over-ripe and unfit for sale. The possibility of introducing express goods trains for certain traffic seems also indicated. For instanco it takes & goods train 5 or 6 days to cover the distanco between Nagpur and Delhi (670 miles). Damnge in transit is duo also in many cases to defective containers. Experiments on improved containers for oranges have been tried and in the CNEC of eggs it has been shown that tastage can be reduced by at least 4 or 5 per cent. through better packing. Apart from the N. W. R. so far 40 as is known no other railway appears to have taken any steps in the way of designing and providing cheap light containers to producers and inerchants. Briefly the marketing surveys have brought out the following points in regard to rail transport: (i) The possibilities of expanding producers' markets and effecting a direct reduction in transport costs by the introduction of special station to station rates. These are capable of being multiplied in number through closer contact between local marketing staffs and local railway administrations. (ii) Certain improved facilities might be introduced to bring about a reduction in transport charges on primary products by through rates, expansion of the collection and delivery services, the reduction of minimum wagon loads and the introduction of Owners' risk rates on certain primary products, and readjustment of the rates on unmanufactured and manufactured products so that the incidence of the freight should more nearly approach an ad valorem basis. Road Transport. Freight rates by road are frequently lower than by rail but the marketing surveys do not show whether road services are always run on economic lines, but even in cases where the rate by motor lorry is higher than by raid the traffic goes by road. For example, between Okara and Lahore--a distance of 80 miles—the rate per maund by lorry is Re. 0-3-6 as against Re. 0-2-11 by rail but even so the use of motor lorries is preferred since it also enables direct collection from senders and delivery to buyers and avoids the formalities connected with the booking of goods at the railway stations. Road transport also has its drawbacks. It has been observed, for example, that some local bodies collect taxes on vehicular traffic carrying agricultural commodities, e.g., ghee, oilseeds, oilseed grain, etc., even when the produce is not intended for sale within their limits and the roads are not the property of the local body concerned. For example, all traffic in agricultural produce on the Lucknow-Cawnpore road is subject to terminal tax at Unao by the municipality and a bullock-cart of groundnuts taken from Hasanganj to Cawnpore is charged a terminal tax of Re. 0-4-0 at Unao and a terminal tax of Re. 0-8-0 at Cawnpore. Similarly, a lorry load of ghee from Khurja to Delhi is charged toll tax first at Sikandrabad, then at Ghaziabad and ultimately at Delhi although the road from Khurja to Delhi is the Grand Trunk Road. The marketing surveys show that owing to the amount of such charges traffic is driven into round about channels and the costs of distribution are increased. Large wholesale distributors are able to make arrangements for avoiding the payment of such tax by establishing their distributive Warehouses outside the bounds of the areas concerned. Individual primary producers are at present unable to escape such impositions and if municipalities are unable to reduce the amount of such charges it will apparently 41 be necessary in the long run for agricultural producers to organise themselves and operate their collecting and distributing centres outside the towns. The multiplicity and amount of tax on through traffic might be commended to the attention of local self-government departments in respective Provinces and States. At the same time the incidence of municipal octroi duties or terminal taxes on primary producers should be examined.

42 SUBJECT NO. 3 (6). CORRELATION OF AGRICULTURAL PRODUCTION AND MARKETING WITH A VIEW TO THE PRODUCTION ON THE TYPE, QUALITY AND QUANTITY REQUIRED, (Note by the Agricultural Marketing Adviser). To extend the market for Indian produce and increase the agricultural incorne of this country more attention must be paid to the type, quality and quantity of produce put on the market. The need for long staple cotton has long been recognised, but it is not generally appreciated that special types are also in demand in the case of every other commodity. For example, hard. wheat is preferred to soft, "bold" linseed commands a premium over "small", and the market preferences are quite as strongly marked in the case of such commodities as wool, tobacco, fruits, coffee, etc. The importance of producing the right type and quality may be appreciated from the fact that flue-cured Virginia tobacco grown in the Guntur district sells at about Rs. 200 per candy of 500 lb., but the ordinary sun-cured country tobacco is only worth Rs. 50 per candy in the same district, and even between first grade and second grade Virginia tobacco the difference is as much as Re. 0-2-0 to Re. 0-4-0 per lb. be or It might be expected that such price differences in themselves would suficient incentive to ensure the production of the right type and quality, but commercial quality is an elusive factor and not immediately obvious to the producer. Some grapes, for example, are good for eating in the locality where they are grown, but cannot stand transport to distant markets. Again, certain types of fruit may be good to eat but useless for canning and vice versa. The producer, therefore, needs to be educated and induced to produce the right type and quality required. Mixed produce of any kind generally sells at a discount so that uniformity in the type produced in an area is important, but it is equally important in many cases to have a minimum quantity. For example, à sufficiently large quantity of uniform type and quality is essential, particularly where it is proposed to develop allied industries. For example, before a factory for the canning and bottling of fruits vegetables or for the preparation of fruit syrups can be successfully run, a sufficient quantity of the right type of produce must be available in the neighbourhood to keep the factory running for a reasonably long period each year. In establishing a factory for the preparation of dried and frozen eggs, it would be essential for the success of the scheme to have a fairly large turnover daily and this would require a very much greater local production of eggs than is to be found at present in even the most concentrated areas. It is therefore necessary on occasions to stimulate the production of those products or types of products where marketing opportunities have been brought to notice. It seems clear from the marketing surveys already completed that one of the first essentials would be to scrutinise and check the the present method of collecting and preparing local statistics (and forecasts) in regard to the acreage, production and supplies of agricultural, horticultural and animal husbandry products. In regard to commodities such as tobacco, where the different types have quite different markets, no 43 attempt is made to collect any statistics regarding the production of the distinct types This fundamental question needs attention In the case of one major crop, namely cotton, the question of improve ing statistics and of encouraging the production of those types and varie ties most in demand has received continuous attention from the Indian Central Cotton Committee for the past 15 years with substantial results The newly established Indian Central Jute Commuttee has started work on the technology of jute with a similar objective, wbilst special committees exist for lac and coffee But for the majority of the crops pro duced in India, and for the whole of the animal products, there is at present no organisation of a similar character Clearly such central committees cannot be multiplied indefinitely, nor are all the problems involved capable of being tackled by such a form of organisatiou, but tho fact remains that the agricultur ıl and animal husbandry officers in the various Provinces and States concerned with the improvement of production have at present, no direct la son with the marketing officers though they control fairly numerous staffs and assistants engaged in the introduction of improvements in virieties It is suggested for consideration that it might be of great advantage if in each Province and State there could be appointed a Crop Develop ment Officer and Livestock Development Officer, who would work directly under the Director concerned and whose duties wou'd be to initiate and control schemes for (a) encouraging the production of those types of produce which are mainly in demand and which are suited for commercial development, (b) encouraging increased production of those commodities for which the marketing sui veys have shown openings to exist, (c) following up from the production aspect the other results obtained from the marketing surveys Notes are attached by the Agricultural Cxpert and tho Animal Hus bandry Expert, Imperial Council of Agricultural Research, the subject on Note by the Agricultural Dxpert Impenal Council of Agricultural Research Control of quality in crops may be held to imply control of the fol. lowing factors (1) Variety, (2) Seed Supply, (3) Cultus ntion inethods and (1) The soil on which the varicty niny ho grown As regards variety thrro is generalls for a particular arco, a variety sluch is more suitable agriculturally and commercially than any other. and it is worth while to attempt to set 1 solid block of that varicts This means the needing out of all other varieties, and making suro that any nes planting or sosing slall be done with the chosen variety only In Germany last year the number of sliezt varieti s allowed to lc grown 44 was cut down from over 100 to about 12. lu the grape-fruit growing areas of California, there has been an elimination of all except a few varieties, of which the Marsh variety is probably the best known.. The next thing requiring control is the scent supply. In India we have had several excellent seed supply schemes, all in connection with cotton. These schemes differ in details, but are of the same general structure. This structure is well illustrated in the pure seed production and multiplication scheme for Sind outlined by Rao Saleb K. I. Thadani at the First Conference of Research Workers on Cotton in India-(March 1937). It is as follows: Stage. Location. Aren in flcres. . are Secd patch (sown with self-fertilised veed obtained from the plant breeder) 21 Agricultural Research Station. Increase Block 25 Government Farm. Ficli Scalc Planting 250 "A" class registered growers. Willage Groups 2,500 "B" class registered growers, co-operative organisations, otc. District Groups . 25,000 General cultivation. Each stage is fed from the preceding one. The first three stages under direct departmental supervision, and the crop in these stages is rogued (i.e., all plants not true to type :ire removed) by departmental officers. The produce of all stages of the scheme is ginned under the strict supervision of the Agricuitiiral Department. The above is a unit of multiplication and in 1937 eleven such units were working in Sind, seven being devoted to the Sind-American Cottons (Sind Sudhar and Sind 4F-98), three to Sind Desi cotton (Sind N R and one to Sind Sea Island and Boss III-16 (the so-called Quality cottons). In the southern Maratha Country of the Bombay Presidency similar schemes lave been in action for many years for the distribution of the cotton varieties Jayawant and Gadag I. An organisation of this kind could be applied to any crop. Expenditure is required on a trained departmental staff entirely devoted to the scheme and on certain incidental expenses such as bags, storage space and labour. Apreenients have to be made with registered growers of the “A” and “B” classes, who must be personally known to the departmental staff, and such growers must not lose their work for the scheme. The buying and selling price of seed within the scheme is a point that demands careful planning in advance. In addition, where private agencies are used for sale of the seed it may be necessary to allow a small commission on the sale of the improved seed. For the multiplication of improved seeds or plants, private agencies are largely used in certain countries, the growers being subject to strict inspection and their produce certified. In New Zealand certificates are give'i (in the form of labels) for the potatoes of certain approved growers, and in the case of small lots of seed potatoes, the packages are actually packed, labelled and sealed under departmental supervision. In New South Wales, there is a Co-operative Bud Selection Society a limited company formed under the aegis of the Department of Agriculture and consisting of representative growers and nurserymen. It provides buds from specially selected trees. These buds are given to on 45 the Agri special nurserynien who bud them and the plants so prepared are available for growers in a fortnight The total number of buds given out in the year 1935 vas 40 000 The Society makes no profits In the Bombay Presidency the Government Horticulturist (Dr G $ Cheema) started some years ago < system of voluntary registration of nurserymen This involved inspection of their produce by nultural Department In such seed or planting schemes there lizs not as a Tule been any attenint to influence cultivation methods but there is no reason why this should not be done It could be made one of the terms of agree ment with tlie A and B growers and their loldings could be used for purposes of demonstration to growers in general cultivation (tlie final stage of the scheme) Such cultivation methods might include the use of a particular manure and if so the departmental organisation could arrange for its purchase in bull and for its distribution at fixed prices to growers In the Deccan Canal areas of Bombay water was given free for several years for the growing of san bemp as green manure for sugarcane The inost difficult part of any control poorimine would undoubtedly be the control of the lype of lard on which a crop might be grown It stands to reason that no one would be registered as seed grower or nurseryman whose holding was on unsuitable soil In the case of general cultivation lowever the profubition of the growing of a parti cular crop on 1 particular soil demands rather unusurl powers Such powers used to be exercised by the Irrigation Department in the Bombay Presidency who refused water for lands whicl were considered unsuitable for sugarcane The question is tenlly a part of the larger problem of land u8C problein which comes up in some form or another in nearly every aspoct of rural development Failing any special powers one must resort to propaganda and thus could be cffectively reinforced by gracing 18 produce from poorer soils and unsuitable arens would ninavs be niurkort below produce from better situations Crop quality control like crop marketing can and should be bised on accurato information got from sperial surveys and from the accunulated wieciom of the Provincial and State departments of agriculture As small erimple of the kind of thing that has been donc mas be inentioned 1 prorunme made in 1933 for one of the counties of South Caro'ıno This was bised on an economic study (embolied in South Carolina Cx periment Station Bulletin 289) huch sunt in detail into cultural inc ho-14 and standards for all the inajor crops I coil suricy nas nico mntic In thi clevelopment programe are projects for the production of icrt ford film coeds the production of congeluas (in connection irth nuly of established inarl. ting stamlards for that commodi') the reduction the number of cotton yonetics and the joiement of meet potatoes Thus worh was in clinrge of a spucalls upplosed agriculturist and of the counts agent of the department of sticul ure essential Similar) for crop quality control in Indha it would to laro special oflicers in chargo of such sorb fun '40 Addendum? I to Notc by the Agricultural Expert, Imperial Council of Agricultural Rescarch. now In the Southern Division of the Bombay Presidency, an organisation combining the supply of pure cotton sued und the auctioning of the pure produce has been working for several years with considerable Success. A comprehensive and ambitious revised scheme which aims at covering 7 laklis acres with Jayawant cotton (from seveu centres) and 14 lakhs acres from Gadag No. 1 cotton (from two centres) is in its third year. The organisation for the supply and multiplication of the pure seed is somewhat similar to that already mentioned for Sind 1.6., the Cotton Breeder supplies the puro sell-fertilised seed and a Gov. ernment Farm multiplies that seed. This is further multiplied in the districts in three further stages by co-operative societies and individual agents and then goes into general cultivation. The produce of th:50 stages is brought separately to the marketing centres and is graded and sold by auction. At tho time of auction, a condition is made with the buyers that they shall gin the produce of each stage separately under the supervision of the cotton staff and sell the seed at the market rate io a co-operative society or agent working with the Agricultural Department. Societies and agents undertake to purchase, stock and distribute pure pedigree sued of different stages by opening depots in various places and they get a subsidy of annas 4 per bag of 100 lb. and annas bag of 140 lb. of seed. They advance money to the cultivators and collect the produce of the reserved areas for auction sales and get com. mission both from the seller and the buyer. The cultivator gets a higher price for his cotton in the auctions and the buyer gets a better quality of cotton. The cost was estimated at Re. 0-1-4 per acre for Jayawant cotton and Re. 0-1-3 for Gadag No. 1 cotton. The actual costs incurred in two years are very close to these estimates. For the whole scheme the estimated cost for five years is Rs. 2,11,436 in the case of Jayawant and Rs. 58,228 in the case of Gadag No. 1 cotton. The Indian Central Cotton Committee is bearing 75 per cent. and the Bombay Government 25 per cent. of the cost. 6 per Addendum II to the note by the Agricultural Expert to the Inperial Council of Agricultural Research. Orchard Survey as a Preliminary to Quality Control in Fruit. Between 1927 and 1932 the Department of Agriculture of South Australia carried out an investigation into the nature and condition of Washington Navel (nange trees growing in various orange groves of the irrigated area of South Australia. The main objects of the investigation were : (1) To ascertain the nature or type of the individual trees and particularly to find out if these were of the true Wasbington Navel type or otherwise. (2) To discover the relative productiveness of individual trees and particularly to take note of trees of high productivity, also producing fruit of first class quality, so that these trees could be used as a source of bud wood for propagating pur. poses, and *" 47 (3) To endeavour to discover the reason for variations in the health and productiveness of individual trees and to ascertain if these differences were due to hiereditary or environmental factors. T'he investigation revealed the existence of a considerable number of trees of an inferior strain which produced per tree only 2/3rds of the vield of true Washington Navel, apart from being of poor quality. A similar survey would be a sounil basis for thr development of any orange area in India. Note by the Animal Husbandry Expert, Imperial Council of Agricultural Research. Animal Products. Iū spite of her livestock being potentially as well as actually one of the largest of the national assets of India, it is a well-known fact that Their development and economic exploitation bave not rechived the attention they deserve,--and no appreciable development of this vast in. dustry can take place until more effort commensurate with its size and requirements is made. In the proposals framed below it is suggested that in carrying them out the fullest use should be made of the subordinates of the Provincial Veterinary Departments (including stockmen) and these officials encouraged generally to take more interest in livestock trade, and not confine themselves to the control of disease. Soine remarks on the more important animal industries, excluding fish, are now offered, but it should be borrie in mind that owing to their undeveloped state we shall have to start ab initio in the case of most of these industries. Those to be considered include the following: Milk, Gheo. Hides and Skins, Wool, Live Animals and Eggs. Afilk.--It is a matter of common knowledge that though production is abundant in many places there is an unsatisfied demand for pure milk at reasonable prices especially in urban areas. The prices also vary considerably from place to place. An efficient narkcting organisation may remedy this defect. A beginning in this direction could be made by the establishment of milk collecting centres in areas of largo produce tion. As an illustration the experience of the Allahabad Agricultural Institute in this direction may be mentioned. The Instituto has stations at one to six miles away where gouvalas tio their cattic. Thero inay be up to 100 cows and buffaloes at each station. An employco of the Institute is stationed at cach centre. Morning and ovening tho aninials aro milked in his presence and the yield of each is weighed and entered on a special form. The Institute bugs concentrates at wholesalo rates, mixes them in suitablo proportions and sells the mixture to tho gowalas at cost price, the cost being deducted from the payment for milk at the end of crery week. Theso animals are allowed to be served only by the Institute Bull, and all scrub bulls in the locality nro castrat. .cd. To ascertain the dates of calving a sninll premium is paid to thoso who bring their cours to calre at the stntion. It is easy to sce that if a network of such stations were established iu suitable places and arrangements made for the proper dignosal of the Inilk, it is bound to have sery far-reaching effects in several directions.

48 are Where facilities are available, especially where large consuming centres are not far oft', an effort may be made to dispose of as much of the milk in liquid form as possible. This will ensure & supply of ready cash to the producer, which is the greatest incentive to him to feed his animals better. When he gets a remunerative return he is in an agreeable frame of mind and instructions regarding feeding and breeding readily imbibed and acted upon, and this results in an all round improvement in livestock. It is perhaps clear from the experience of the past that in this absence of any practical aid of this kind, all lectures, pamphlets and other forms of propaganda are largely wasted. To begin with, such centros may be within reach of Government Farms and the subordinates of the Agriculture and Veterinary Departments might be able to undertake the inajor portion of the work the work involved, along with their other duties. In course of time Government could gradually withdraw after co-operative societies of villagers have been cstablished for the purpose. The surplus of milk, left over after sale for liquid consumption, can be separated and ghec may be produced. The separated milk can be utilised for feeding calves or for consumption by the villagers themselves If large quantities of suitable skim milk become available the manufacture of milk powder might be taken up and transported to areas like South India where production of milk is insufficient and prices are high. Ghec.-In regard to ghee also there is an unsatisfied and almost unlimited demand for pure ghee. The grading system introduced by the Agricultural Marketing Adviser has been quite successful, and these operations should be extended. The opening of milk collecting centres as pointed out above and the eventual establishment of producers' societies on a village industry basis may improve the production and sale of pure ghee. The subordinate staff of the department concerned with livestock development should eventually be able io carry on propaganda in the hygienic production of ghee, as it is hoped, that the Imperial Dairy Institute will conduct experiments on this subject and soon be in a position to suggest improved methods for village manufacture. Live Animals. A demand for good stock always exists and there is an urgent necessity for organising and increasing the supply. The establishment of milk collecting centres as pointed out above will automatically lead to the production of niore efficient milch cattle, but efforts should be continued and intensified for the improvement of draught breeds. The internal trade in draugat cattle is one of great magnitude in India and it is largely maintained through the agency of cattle fairs which are held periodically throughout the country. A great deal could be done to develop the trade arising in these fairs by investigating the type of animal most in demand, the areas in which such animals bred and the districts to which they are taken. Contagious disease is another important factor in the internal as well as the external trade in livestock. In this connection the Animal Husbandry Bureau of this Council is at work on the construction of a map of cattle routes. When this is complete a clearer picture of the internal cattle trade will be available and it will be possible to introduce measures to prevent disease infection arising en route to cattle fairs and the spread of contagious disease from one province to another. are Annual shows held at sutable centres for the best known breede, including the award of prizes and sanods to deserving exbibits, would encouruge breeders and help them to get good prices for outstanding animals Arrangements have already been made for the holding of an all India Cattle Show every year Hides and Shins-In regari to these important conin.od tres the grading work which has proved 60 successful should be extended This should be accompanied by measures for the control or apunal diseases, the warble ty pest, etc, and propugauda is needed regarding the best methods of marking animals, flaying and the subsequent treatinent of the bides The establishment of village flaying centres, which was recently suggested to Provinces would go a long way in improviag the value of the raw product, and the provision of demonstration tlaying parties to visit these centres 18 to be encouraged Tool --Very little is at present known regarding the structure of Indian wools and the actual requirements of consumers of wool for particular trades Lfforts are required to organise the raw wool trade on better lines and introduce standards and possibly grading centres for this commodity Eggs -As a result of the Egz Marketing Report it is clear that the poultry and egg industry is one of the most promising in India and in some areas it may be possible to set up fautorica for the corunercial exploitation of eggs if the supply can be greatly increased One method of encouraging production would be to supply such institutions Veterinary hospitals in selected areas with breeding peng of buds suitable for the locality and also provide them with artificial incubators for hatching eggs in large numbers and for the issue of day-old chicks to those willing to take up this cottage industry on a larger scale 89 pursue tho Additional note by Mr P J Kerr, MR.CVS, IVS, Offg Animal Husbandry Expert, Imperial Council of Agricultural Research Mr Ware's notes read in conjunction with those of the Agricultural Marketing Adviser and Agricultural Expert cleurly indicate the wed for somo form of Joint Agricultural and Animal Husbandry Development Committees in Provinces and States and for the appointment of special Animal and Agricultural Industry Development officers to policy and programme of the committees as well as to explore and mako suggestions for new lines of development Relatively few cattle are moved by rail but large qumbers are driven Across country-often hundreds of miles-to market and on the wny thoy not only pick up diseases but sprand devastation in the ulages en route In addition to the improved handling and processing of animal husbandry Iroducts, thereforc, one of the first prohlems to be solved in marketing schemes is that of rapid and cheap transport This subject has to bo worked out by the committees for the Provincial Governments as both improved rond and railway facilities are involved Special transport Incilities are necessary for the distribution of supplies to producers ell ns for the converance of their products to market Minlastpg ricc polishings (rick) for cramplo, aro cheap in the amas whicmr thoy nro produced, but freight costs render their tirely near arcas and prico prohibitiro in other rein 50 1 . As a Provincial Director of Veterinary Services I have given this problem of ihe development of markets for anirnal products much thought. jor muny years. It has been my endeavour to find means to put a little vore ready money into the hands of the cultivator-thereby to gain his coubidence so that he may more readily accept advice on the feeding. and breeding of aninials which take years to show benefit. The view that the first step towards improvement of products and. the animals which produce thein is to improve the financial position of. the owner by helping to market his present produce more advantageously, is in my opinion the correct one. I am certain that once appointed it will soon be discovered that more than one Development Officer in each branch-Animal and Crop Industry-could be usefully empioyed. The work would require, to begin with, the whole-tine attention of one officer at least and cannot be delegated to the present Provincial Marketing Officer to be doue in his. spare time. The Animal Husbandry Development Officer must be a provincial officer who would work not only under the Director of Veterinary Services. but in direct touch with an influential provincial committee which should be able to bring pressure to bear on the Provincial Development Departments and, through the Minister, on the Provincial Government itself. Subsequent steps of the Development Officer will be directed to theimprovement of quality of animal products such as ghee, khoa, poultry, etc., by making available to the producer the results of research on higproduct as applied to his particular circumstances in the village or district' where he lives. : D-861 ICofAR--12.5-39--1,000.

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CROP PLANNING CONFERENCE, JUNE, 1934. AGENDA I-RICC Consideration of the following questions (1) Keeping in view the orld position, internal consumption, slocks carried over, and decreased exports overseas, would it be correct to state that there is an over production of rird (a) in rico producing provinces or other arcas , (b) in India as a whole (2) If the answer to the first question is in the affirmative what steps are desirable and practicable to deal with the problem A By way of restriction of the area under rice (a) If restriction is recommended, what is the extent of the area to be reduced (if any) in the case of cacli rice producing province ? (6) What are the alternative crops that are recommended 11 the case of each province or part of a province? What are the difficulties in the way of the substitution / (c) In any such change-over, what would be the effects on the Government revenue, both in the shape of land assessment and water rate, and what would be the effect on the land-owner and the cultivator ? B By way of development of mailets (1) external and (22) internal. In considering (1) discuss any Csisting restrictions and the possibility of their removal , also the question of improvements in the quality or milling of the rice Also consider in both cases the effect of railway and steamer freights (3) In case of restriction of import of foreign rice into India (2) What would be the effect of such restriction on competition of foreign with Indian rice in outside markets, and (rr) What form is retaliation by the countries affected likely to tale ! (4) Is the crcation of some organisation necessary or desirable for the purpose of improving and developing the cultivation and markcting of rice ? If so, what should be its functions and composition and how should it be financed ? Shoull at be permanent ? II WETAT. Consideration of the same questions as under rice. III -COTTON. All that is contemplated is a general review of the position in order to have a complete picture of India's crops. No questions are sct down as the subject is dealt with in detail by the Indian Central Cotton Committee.

6 IV.-JUTE. It is suggested that a general review of the jute position would be sufficient as all the relevant issues have been set out in the Bengal Jute Inquiry Committee's Report which is now under consideration by the Bengal Government. The Secretary's note on jute summarises the position, V.-OIL-SEEDS. A. Ground-nut and castor. (a) In view of the fall in exports of ground-nut and castor sced what measures are recommended by way of development of markets (i) external ancl () internal. In considering (8) discuss any existing restrictions and the possibility of their removal ; also the question of improvements in their quality and marketing Consider in botli cases the effect of railway and steamer freights. (0) In view of the increasing exports of ground-nut oil and castor oil, what steps should be taken to stimulate the oil crushing industry ? B. Linseed. In view of increasing exports, what steps, if any, should be taken to increase production and improve quality and marketing? Consider particularly the possibility of expansion in the Central Provinces, United Provinces and Bihar and Orissa. C. Rape and mustard, sesamum and cotton-sced. What measures are recoinmended by way of development of markets, external and internal ? D. Linsced, castor, ground-rrut, rapeseed and sesamum oils. In view of the preference in the United Kingdom, are any steps recommended to stimulate the export trade in these oils ? E. Coconuts are dealt with in a report by the Special Inquiry Officer which is under examination. VI.--SUGARCANE. Generally review the position. The matter is being dealt with in detail by the Sugar Committee. VII.-TOBACCO. Review the position (a) with regard to production of cigarette tobacco and (0) óf irnproved varieties suitable for flue curing, VIII.-FODDER CROPS. IX.-FRUITS AND VEGETABLES (INCLUDING ROOTS). X-CEREALS OTHER THAN RICE AND WHEAT, SPECIALLY, BARLEY, JOWAR, BAJRA, MAIZE AND GRAM (INCLUDING PULSES).

7 Note by Vice Chairman, Imperial Council of Agricultural Research, on the Proceedings of the Crop Planning Sub Committee of the Advisory Board of the Imperial Council of Agricultural Research In the folowing note I hve attempted to summarise the conclusions naved at by the Sub Committee of the Imperial Council of Agricultural le carch that lius been considering the subject of Crop Planning The full plocculings are available to members that want them The items are dealt witli according to the order in tlic Agenda paper I-RICC (1) Ou behalf of Madras it wis pointed out that there lias buen a chinge in the position of rice Ten yeurs ago it was thought that 11) per cent of the population of Madras ate rice and on the assumption that an aciult ate 1 25 lbs pei day it was supposed that there was a surplus in aice but tlit was not the position to day There had been a small increise in urca but the population had increased by over 11 per cent and manv more people were now eating rice than was the case ten years 180 Consequently the assumed suu pulses of ten years ago do not now list Madras consumed practically all the rice it produced and there were regular imports from Burma and there was thcrefore no case of over production Bombay had to supplement its production of rice by imports from Burina and there was therefore no question of surplus In Smd the pro tluction of rice was just equal to consumption Bengil', production was short of its needs by 14 lakhs of tons annually and that was supplemented from Burma The United Provinces wcie deficit province in the matter of rice and had to supplement its production from the Central Provinces and Dengal The question of rice wis not important to the Punjab Bhir and Orissa in spite of its large area under rice did not produce mnou for its consumption and liad to supplement its production from the Central Provinces and Bengal, the latter probably importing from Burma through Calcutta Central Provinces -As regards the Central Provinces when the crop was a 11 annis crop it was just sufficient for inte nal consumption When the crop exceeded 11 annis it casily exported the surplus to the adjoining 1 101inces In Assam the production and consumption were equal As regards Burna at had normally in exportable surplus of 3 million tons per annum but all the surplus passed at once into India proper, Ceylon, Mnlaya and the Fur Last There was a very definite demand for Burma rice and there was no question of over production It was agreed by the Sub Committee that there was no over production of 11ce either in India as a whole or in any part of it. In view lowever of the fact that the countries of the east which were tihing Indian rice, namely Ceylon, Talava and Japan were attempting to be self sufficient in the matter of their rice production and that the last cowitry had succeeded in becoming self sufficient and also of the competi tion that Indiin rice was meeting with in foreign markets from Siam and 8 Indo-China in the East and Italy and Spain in the West it was urgul that it would be wise to call a halt, to a further expansion of the rice arca in Irdia. The following proposition was moved and carried by 7 votes against 5 :- " That in view of the present work conditions in the matter of rice production, no Provincial (invement shoull ordinarily vler any stimulus to an increase in tlic present area under rice." The representatives from Bengal, Burma, the United Provinces, Sim and the Control Provinces constituted the ininority. (2) In view of the answer aller (1) above 110 restriction is recomliemed and the questions under (2) A do not arise. (2) B. As regards internal 3!!kets it was ilgreed that the development of internal markets was of great importance and that this developmeut could best be pursued by means of the marketing scheme now under the separate consideration of the Imperial Council of Agricultural Research. As regards external markets the Sub-Committee made the following l'ecommendations :- (i) that negotiations should be opened with Ceylon and Britislı Malaya with a vicw to obtain preference for Indian ricc, (ii) that as soon as financial circumstances permit the export duty on rice should be removed, (ii) that the specific cluty imposed by the Ottawa Agreement on imports of rice from foreign countries to the United Kingdom should be extended on paddy to the extent of 1.11'co farthings per lh. At present import of rice into the United Kingdom is subject to a specific duty of a penny per lll. while foreign pacy is taxed at 10 per cent. ad valorem. It was pointed out that Spain was increasing her exports of rice in the form of paddy to England in order to get tire benefit of this differentiation, and (iv) that Burma aud Bengal which produced rices suitable for English and Continental markets should continue their experiments in the matter of improving the quality of such rices. As regards railway frcights the Sub-Committee was informed by Mr. Calder of the Railway Board that a general reduction in the freiglits on agricultural commodities was not practicable but that where special rates were required to facilitate particular movements of special crops the question would always receive sympathetic consideration. The Railway Board would always consult agricultural officers and the new marketing staff in connection with such proposals. (3) The Sub-Committee felt that it would not be wise to impose any restrictions on import of foreign rice into India by means of eitlicr an absolute prohibition or an unreasonably heavy tariff. It considered however that a reasonable and moderate rate of duty was unlikely to lead to retaliatory measures on the part of foreign governments affected and passed the following resolution : “That an import duty at the rate of Rs. 1-4-0 per naund of rice and 15 annas per maund of paddy be imposed on imports of rice and paddy from foreign countries.

9 The SULT The reprt (4) The Sub Committee unanimously recommended that it was desir able to have a standing committee of the Imperial Council of Agricultural heseurch on lice The functions of such a committee which should ta coustituted under the Rules and Regulations of the Councıl should be adı 15ory and its constitution should be on the lines of the other standı, committeos of the Council It should be financed from the funds of the Council The Director of Agriculture Diadras under instructions from his Government asted that ? quotz should be fiver for rice which Burma was importing to Nſadris ports The Sub Committee was of the view that it was wrong in principle to suggest any restrictions on anv inter provincial tade wat in the Indian Empire The proposal was not the vfui appro ed II - WULAT (1) On behalf of the Punjab it is pointed out that in the last ten years the area under wheat had increased by 6 per cent while the populi tion had incre ised by 10 per cent As regards the yield roughly all the area depended on rain and considerin: the not infrequent occurrence on bud monsoons the production could not be termed excessive pluses of normal years were easily lisposed of by export to adjoining provinces and Calcutta The real danger would arise wlien Şind increased ats whert aren to the mavmum limit of two million acres sentative from Sind considered that with the normal prouth in Indian population the increasing consumption of wheat in preference to inferior grains and the risks to which food crops were exposed by vicisitudes of season it would be unwise to limit the growing acreage under wheat in Sind In any case if the Sub Committee decided that restriction was necessary, it should impose the restriction on an old province like the Punjab and not on Sind For the United Provinces it was stated that with the increase in population the surplus of wheat in that province nas nothing serious and was easily absorbed by the deficit provinces in India In the Cential Provinces the surplus was about 50 000 tons and there 1125 no difficulty in exporting it to other parts of India As reguds Llar and Oriss it was a deficit province in the matter of wheat and importe Tilent for its own consumption from other areas of India Bambu wa har lly self softicient in the natter of wheat production and there was no question of ove proclition The conclusion of the Sub Committe that there was no over production at present It was however pointed out by one of the members of the Sub-Committee that the internal regure ments of India in the matter of wheat imounted to about 91 million tono annually that no export market seemed possible for several years to come and that in the current year but for unexpected season II damage the soun area of over 35 million acres of wheat m India should have produced a crop of about 11 million tons He therefore proposed th something should be clone to limit the production to the figure of 91 million tons He suggested that the area under wheat iu India as a whole should be reduced by 2 million acres and thought that on this area linseed and barley could be substituted for wheat with advantage l'inally he moved the following resolution “ That leeping in view the world position in production and the trade in Fheat it is undesirable that the area under wheat in India as a whole should exceed 33 million acies." 177EHL 10 Then the following resolu- This resolution was lost by 6 votes against 4. tion was moved : “ In view of the world position in wheat and the possible danger of over-production this Sub-Committee recommends that no fresh stimulus should be given to the expansion of wheat cultivation in India and every effort should be made for the substitution of other crops for wheat." This resolution was agreed to unanimously. (2) A. In view of the answer under (1) none of the three questions under A arise. B. As regards external markets, in view of the fact that the carry over of wheat stocks outside India amount to more than a ycar's requirements of consuming countries, it was agreed that there was not much chance of India being in a position to export any wheat during the next few years. The following answer was returned unanimously “So long as world prices remained at the present level and the wheat import duty remained at the present level and the wheat import duty remains, there is no immediate prospect of developing external markets for Indian wheat.' As regards internal markets and railway freights the same answer was returned as under rice. (3) In view of the existence of the wheat import duty the questions under 3 do not arise. (4) The Sub-Committee unanimously recommended the creation of a Standing Committee on wheat of the Advisory Board of the Imperial Council of Agricultural Research on the same terms as those suggested for the Committee on rice. III.-COTTON, The two questions to be considered in connection with cotton, viz., the scope for an increase in the total area and the selection of varieties lo be cultivated, were being dealt with carefully by a special Sub-Committce of the Indian Central Cotton Committee. It was not therefore necessary for this Sub-Committee to go into the matter. IV.JUTE. All the questions in connection with Jute were, as explained in the printed note circulated to the Sub-Committee, under the consideration of The Bengal Government on the report of their Special Enquiry Committee and the Sub-Committee considered that no action at this stage was necesşary. V.-OIL-SEEDS. A.-Ground-nut and castor. (a) As regards ground-nut, the Sub-Committee came to the conclusion ibat there was no need for placing any restrictions on its cultivation, but that there might be room for cautious expansion. With reference to 11 external markets, in view of the growing competition in the United Kingdom market from foreign Soya Beans and other oil-seeds and from foreigtı fats and oils, the Sub-Committee passed the following resolution " That this Sub-Committee recomiends that the Government of the United Kingdom be approached with a proposal to impose an import duty on all foreign fats, oils and oil-secds whiclr compotc with oil-seeds produced in the Empire." As regards castor sced, the Sub-Committee considered that its position tras satisfactory and that there was room for its development ratlier than for its restriction. The Indian Oil Crushing Industry Committee of the Imperial Council of Agricultural Research was dealing comprehensively trith the questions of the improveinents in the quality and marketing of all oil-seeds and these questions may safely be left to that body. (b) It was pointed out that there had been great increases in the export of groundnut oil, especially to the United Kingdom, after the grant of the Ottawa Preferences and that the question of stimulating the industry miglit be left to the Indian Oil Crushing Industry Committee of the Imperial Council of Agricultural Research. B.-Linsccd. The large increases in the exports of linseed to the United Kingdom since the grant of Ottawa Preferences were pointed out and the Sub-Committeo emphasized the need for extending the cultivation of linseed in Indin, especially of the improved rust resistent varieties. It was also agreed that the favourable position in regard to linsced should be made widely known amongst cultivators and merchants, C.--Rape and mustard, sesamum and cotton-sced. So far as foreign cxports were concerned the resolution referred to ander A (a)-Groundnut--would cover the case of these oil-seeds 'The question of developing internal markets should be left to the Indian Oil Crushing Industry Committee of the Council. D-Linsoed, castor, ground-nut, rapeseed and seasanın oils. Complaints had been made by merchants in Bombay that facilities for tank wagons on railways and tank accominodation on steamers and facilities for storage of these oils at the Indian sea ports were lacking The Sub-Cotamittee resolved that action should be taken to improve the position in these respects. VI.-SUGARCANE. The following resolution was adopted :- “ From the point of view of general crop-planning the sugarcano area in India is not so large as to affect the general questi011. There is insufficient knowledge of the production and coulsumption of our to enable the Sub-Committee to make any specific recommendation regarding the maximum sugarcane area."

12 VIT.-TOBACCO. The Sub-Committee considered that there was ample scope for an cxpansion of area wder tobacco provided it was of the right type. The bulk of tobacco produced in India was consiimeri in India itself ; this was the heavy type of tobacco. What India required to develop was the light bright tobacco which was suitable for cigarettes. The Committee noteid with satisfaction the progress made in Ulis direction and considered that this crop could be adequately lealt with by the Tobacco Committee which was shortly to be formed by thic Council. VIII.HODDER Crors. It was considered that there was great scope in India for an increase of fodder crops but ihat propaganda for this purpose would be ineffective unless an incentive was given to the lyot to grow lodder where it was not now grown. The Committee was oſ opinion that this could best be done by a stimulus to the indigenous dairy inclusiry. The following resolution was passed :- " In orler to develop and organise the Indian dairy industry this Sub-Conimittee recommends that a protective duty bc levicd upon all imports of dairy products which are or can be produced in this country. IX.--FRUITS AND VEGETABLES (INCLUDING ROOTS). The Sub-Committee note that at the present moment all the provinces were making special efforts to extend and improve these crops and considered that their efforts should be co-ordinated more than they were nou. X.CERVALS OTHER TIIAN RICE AND WIILAT, SPECIALLY BARLEY, JOWAR, BAJRA, MAIZE AND GRAM (INCLUDING PULSES). It was considered that statistics in respect of these crops were extremely insiifficient and the Sub-Committee commended to the Government of India the possibility of including the crops mentioned under this subject in the all-India Forecasts. General, In view of the Sub-Committee's decision not to reconımcnd any l'estrictions on the present areas under rice and wheat, the question of suggesting substitutes for these crops did not arise. The Sub-Conimittee bolaver considered that in the interest of sound crop planning the question of alternative crops should be discussed. It was pointed out by one of the Local Governments' representatives that there was no possibility of taking any steps in this direction during the coming year. It was a matter not for one year or two but at the lowest for ten ycars. The following suggestions frere made :- (i) Madras. -Madras could increase its area under cainbodia cotton by 50,000 acres. It could put in another 50,000 acres under sugarcane iu the next three or four years by which time Madras considered it would be self-supporting in the matter of sugarcane. In the last five years it had increased the area under plantains by 14 per cent. It could increase its area still further iſ the railways would agree to 13 area giant contessional rates foi fruits and facilitis for their tiansport (22) Bombay-Bombay considered that the area undei sugarcane, mangoes, plantains and pine apples could be incilased (111) Bengal —Bengal had recently increased its sugarc inc but there was scope for some more increase It could also increase its area under fodder crops as a ready market for mill and mill products existed in Calcutta What was required was a stimulus to the Indian dairy industry (iv) United Provinces - In the United Provinces there was room for a high quality of barley suitable for malting It could increase the area under linseed with proper rust resisting varieties and also under san hemp (u) Punjab -- In the Punjab there was no information available about substitute crops except in respect of Soya Bean in the case of which prices were however very low The Sub Committee suggested that an experimental consigninent of suitable soya beans of uniform variety should be sent to England (VI) Buima--As regards Burma it was pointed out that the only alternative crop possible is sugarcane and tie maximum limit to which this could be increased was 100 000 uures even under favourable conditions (vii) Brhar and Orissa-Bihar and Orissa was lopiug to slou a further increase under sugarcine Its autuun ricc rnprotected areas in Bihar proper was precarious and it was quite prepared to replace it by morc remunerative crops If protection is afforded to the Indiin dairy inelustay the Province would gladly go in for fodder crops for which there is a great nced It could also increase its arcı under linse d with efficient marketing (2:11) The Central Provinces are already thing steps to incrt sc the area under linseed but there are difficulti, chiefly connected with the price in this connection It could also increase thic acreage under groundnut and ses lumu (22) Assam thought that there was scope for thic espansion of aren under linseed and sugarcane The Sub Committee was of the opinion that one great obstacle in the at of alternntive crops was the absence of inducement to the rjot to It thought that some security should be afforderl unst competition from foreign countries and passed the following resolution “Thnt in order to promote the more efficient production and mar. Ieting of Indian agricultural producc, thus Sub Committed recommends tiit the Government of India should consider the adusability of imposing protectic duties on the imports of animal and agricultural produce whicit computo with bomc groun prouinc from them 14. In order to improve agricultural statistics the Sub-Committee also made the following recommendations :- (i) that in the nionthly railborne trade returns figures should be given by trade blocks instead of by provinces only ; also that the value of commoditics should be given if practicable, and (ii) that the railway freights for agricultural commodities from and to representative centres should be published in the weekly Indian Trade Journal. The Railway Board's representative thouglit that there would be no difticulty in accepting this recommendation, $ 15 PROCEEDINGS Fmday, the 8th June 1934. The Crop Planning Conference met in the Members Room of the Legis lative Assembly Obamber at 10 am, the Hon'ble Khan Bahadur Mian Sir Fazlı Husain in the Chair. In opening the proceedings of the Conference, the Chairman niade the following remarks . Gentlemen Before we proceed with our work, I think I ought to vrelcome you to Simla Representatives from Madras, Burma and Assam have had a very long, tedious and probably troublesome journey to get through, and those of you who have been at work during the last three days in the Advisory Committee have not had, I think, lime to get any rust after your arduous journey. From what I have seen of the Agenda at seeins that there is not much rest in store for you during the next two days However, my apology for giving you all this trouble to come these long distances is the extreme importance of the work that is to be dono by this Conference We know too well the gravity of the situation We also huow that for some three years or more the situation has been very grave and the hopes that were at one time entertained of this wretched conomic depression passing away have not been realised Some people who are not as optimistic as others are inclined to the view that we must not treat this economic depression lightly and make ourselves believe that at is but a passing phase but that we had better deal with it seriously and see what, if anything, can be done From time to time people have been u ging the raising of the prices If we can raise the prices, the whole trouble will be over. When news comes to India from other great countries of the heroic efforts that are being made to raise the prices, naturally we ourselves as well as the masses feel, “ If other people are trying to raise the prices, why should we not do the same ?" Fiom time 10 time suggestions have been made of altering the exchange ratio and ancreasing the currency and I have no doubt the members of the Con fuence are fully aware of the fact that these possibilities have been most carefully considered, and it is only because it has not been found possible to proceed along those lines that no particular action has been taken Thir third possibility that has been suggested is Is there not something wrong in the crop planning of India ? Is the area under cultivation in India being put to its best possible use, producing the largest possible amount of wealth ? Is it not possible that there might be soine con modities which are over produced or some commodities which are not produced in sufficiently large quantities? If so, there must be a re adjust- Inent This is really the subjeot which this Conference has been called to discuss The immediate cause of calling this Conference was certain discussions which took place when the Provincial Economic Conference met in Delhi I believe some of you were present in that Conference Tnere tire question of rural indebtedness was taken up and kindred subjects were also discussed There a number of representatives from Various provinces urged that possibly relef might be obtained if the 111 orelor to improve agricultural mintistics the Sis.co.titiri mlin mindc the following resmintings ::.. (O) thot in thin peintlily rnilliciru! ! rarit ritsstuk 115fra hur le prirrn log trufo bloc. metin pieavinrk; only in sicer ile ir salig of pinilit ir, Bislet for inru : 135. srohir, ** (ii) that the railway frigins Crop bringtrat porttisis.- ii'o iristy Budit Iniin Trundle onirnal T1;, Hilir tiro.nl: **** pie visn.isto il rosszint i tv:n lunilal belin rim:1;: isimpting the no t'estillitatis.

15 PROCEEDINGS Frday, the 8th June 1934, The Crop Planning Conference met in the Members Room of the Legis lative Assembly Chamber at 10 am, the Hon ble Khan Bahadur Mian Sir Fazl i Husain in the Chair In opening the proceedings of the Conference, the Chairman made the following remarks Gentlemen Before we proceed with our work, I think I ought to Telcome you to Simla Representatives from Madras Burma incl Assam have had a very long tedious and probably troublesome journey to get through, and those of you who have been at work during the last three days in the Advisory Committee have not had I think time to get any rust after your arduous journey From what I have seen of the Agenda It seems that there is not much rest in store for you during the next two durs However, my apology for giving you all this trouble to come these long distances is the extreme importance of the worl that is to be done by this Conference We know too well the gravity of the situation We also hnon that for some three years or more the situation has been cry grie and the hopes that were at one time entertained of this writched cuonomic depression passing away have not been realised Some people vho are not as optimistic as others are inclined to the view that we must not treat this economic depression lightly and make ourselves believe that it is but a passing phase but that we had better deal with it seriously and see what, if anything, can be done From time to time people have been urging the raising of the prices If we can raise the prices thia whole trouble will be over When news comes to India from other great countries of the heroic efforts that are bung made to ruse the prices naturally we ourselves as well as the masses feel “ If other people are trying to raise the prices why should we not do the same lion time to time suggestions have been made of altering the exchanyc ratio and increasing the currency and I have no doubt the members of thic Con fuience are fully aware of the fact that these possibilities have been most carefully considered and it is only because it has not been found possible to proceed along those lines that no particular action has been taken Tır third possibility that has been suggested 15 Is there not somethin: arong in the crop planning of India : Is the arca under cultivation in India being put to its best possible use producing the largest possible amount of wealth : Is it not possible that there might be somnc con modities which are over produced or some commodities which are not produced in sufficiently large quantities 1 If so there must be a re adjust Inent Thus is really the subject which the Conference has been called to discuss The immediate cause of calling this Conference as ccrtna discussions which took place when the Provincial Economic Conference mct in Delhi I believe some of you were present in that Conference Tnere tire question of rural indebtedness tras taken up and hindred subjects were also discussed There a number of representantes froin various provinces urged that passibly relief might be obtained if the 16 possibilities of suitable cropping were examinnel. Theyn sugaritions sport taken up by us and the Council of Agricultural Research sol itself the task of collecting all relevant material. I believe that material has bei! circulated to all the honourable membris of the Crop Planung Conferenze: under the heading “ Statistics and Girapolis ". Of course, this is just il mass of statistics but I have no doubt that with your fpert knowler of these ati'airs you will be able to draw inferences from them and prolismi jormulaie selemes. Then there are a large number of motion writion by Directors of Agriculture from different provinies and this aliorul the most valuable material for the consideration of this conforonor. The there are three or four notes on some important subjects like jule, Sukhrcane and cotton, subjects which are already being dealt withi in sperial comunities of an All-India natura or, at all events, of a nature on which all interests relating to that subject arr representer). Therefore, it is 201 necessary for me to detain this c'onference for any length of time. Birre we have a mass of material which was presented to tlir Adrisory Committee, which was requested to deal with an agenda am give advice on thic various items covered by that agenda. I belirve the proceedings of the first day and of the second ray of the Conference have already been «irculated to lionourable inembers. The proceedings of the third day will probably be circulated by this afternoon, and we are indebted to the Vice-Chairman of the ('ouncil for thies Note which he hurriedly prepared last night and which I believe has also been circulatei. Som: members may have had time with their carly breakfast. 1o have glanced af it : others may not havn 1:111 time. I think the best. (ourse for the Conference to pursue iroull be to take up this agenda (pages 5-6 ante) and in the light of that Note (pages 7-11 antc) and the proceedings of 1he first day of tlır (inmunitirm, to proceed to real with this agenda. Unless there is a suggestion different from this, this is the course I intend to puisnic. The first item on the agenda is Rice--consideration of the questions set down. I believe. Nicnibers have this agenda before them. I believe it would be best if opinions on the subject were expressed by Provinces rather than hy indiviiluals. I shall be glad to hear Madras on the subject. Mr. H. M. Tood.--Sir, the first question is whether in the opinion of the Madras Government there is over-production of rice : and I think I can answer that question on behalf of Madras very briefly indeed. The Madras view is, very emphatically, that so far as the Madras Presidency is concerned, there is no over-procluction of rice. The area under rice is about 30 per cent. of the total cultivated area. That percentage has not increased materially. In fact I think it has slightly diminished in course of the last ten years. The actual area under rice has slightly increased, the production has accordingly increased to a certain small extent over that period, but it has not increased anything like as much as has the population of the Presidency ; and the Madras Government think there can be very little question that so far as this province is concerned, there is no such thing as the over-production of rice. Chairman.—Perhaps there are a few points some members would like to be more definite about. It is stated, for instance, that an adult in Madras eats 1.25 lbs. per lay of rice. Is that correct ? Mr. H. M. Haod.—That is the figure taken from the jail rations. ;

17 aware Duan Bahadur T Raghaviah -01dinally the Madras prisoner does not get rice every day but he is alloned rice every day for certain special reasons The scale allowed is 125 lbs per day. He also gets some Tegetables, dal, and gingilz oil in addition Mr HM Hood --According io the experiments of the dietetic experts (Col McCartison for instance) they have put down the requirements of an adult at about a pound and a half of cereals a day, but that is in addition to vegetables, I believe and other articles of diet But in the case of the Madias rvot and the population at large, they do not get the extra vegetables and so forth to a material extent because they cannot afford to and the actual production of cereals in the Presidency including imports provides, I think, only for about 13 lbs of cereals per adut head of the population That is a very clear adıcation that we do not produce more than is lequired, though it is possible one might produce more than people could afford. Rai Bahadur B.B Aukharji --So far as Bengal is concerned, at has already bern seen that we fall short of the requirements of consumption. by near about one and one fourth million tons Bengal, as you are will is very well suited for rice production We have got a climate stuted for it, and a lainfall quite suited for it, the cultivators are good experts in the production of rice, and yet we sow about 48 per cent of thr tatal cultiraied area with rice, and we are already short of thr total amunt that we need for our home consumption and we do import from Burnd aud other places mainly from Burma So there is unquestion ibly no oter production, on the other hand, ne are alı cady not quite self contained, and we would very much like to be self contained, and there 19 hardly any room for ieduction in the area Chairman-Who produces rice cheaper-Burma or Bengal ? Rai Bahadur B B Nukharji -I am quite sure that our is much finer, mucli sweeter and at the same time more nutritious a matter of fact Burma rice is only taken by our people as a matter of dire neccssitv If we can get our own rice, our people would not like to take Burma rice 'The lon'ble Sir Miles Irving ---The Punjab is not seriously interestrd It is there grown is a luxury article The finer forms are grown în a few favourable localities Commercially, we cannot say that we are seriously interested in the production of rice Dr TV Burns-In Bombay Presidency proper excluding Sind out of about 29 milyon acres there is something in the neighbourhood of 1,900 000 acres und nice, and we produce about 840 000 tons of rice But ut addition, there are imported into Bombay about 28 tons of rice by consting vessels which come into Bombay That figure includes not only Boinbay Presidency but also Sind But even assuming that only halt of that comes into the Bombay Presidency it is obvious that our own require. ments are not nearly made up by that which is produced in the Presi denci tsell Vr tt J Jenkins -As far as Sind is concerned the position at pret sent is that we are more or less supplying our own internal requirements The present acreage under lice in Sind is roughly a million acres Halt of this inca is grown on the Lloyd Barnage Canals, mamly thic Rico Canile LTTIHL rice as in rice IS anal hall on the olul imidation (allals in lippier and lower Sid. T): development oil the area under the Llow barran will not make any appreciable difference to the app under rive in Sind. The total inermise of rice arma with the full development of ile Darrage lands will not brunch more than a Jakh acres, Small 11:20111s of rice are exported from Sind. Thesr exports iront mainly in the Persian full. am Reri Sra ports but they are now being supplanter lor direct exports from calontlil and Ranuant. The rice festion is out of great important to Sinul anil, ily I have alrearly stated, the position is that we are more or less sys!psporting with regarl to this (10p). Chuinn: (011.--that is die area which will be brought livler rico then the later expansion of the scheme takes place. 1: 1. J. Jenkins.-- In the porrisport Pear. thare are about firp laklı acres under lice ou de Llava Barrage canals and with the final levelopment of the Barrage areas, it is estimated that there will be just about six lalil acres ouer rice. This is out of a total area of rice in Sind af about one million acre's. Jr. 11. I.. Drulo Brockma.ml the inforination we have goes to Sion that our needs are in CX(SY of our procluction his seeneiling like 100,000 foris per annum. Wo import roughly that quantity, mainly 2011 Burma. Jr. al. Vektorral.Duma is the only province that lias got over-produciion of padily and rier. Slir produces about seven to cight million tuns of which about a half is used by internal consumption and about a hall is exported. Of the amount (sported, about one million or a slightly over one million tons are at the present moment going to India. As everyburly knows, this tracie has been in cxistence for many years, Durma acting as a granary for India in her years of drought and deficiency. The trade I think is very advantageous to India, as it is to Burma, and so far as I can see tirere is not much prospect of the amount of rice produced in Burma exceeding Indian requirements. The population of India during the last decennium, increased by slightly over 33 millions whereas the acreage under food-grains for the whole of British India fell from 205 millions in 1921-22 to 203 millions in 1930-31. Tf the acreage of cultivation under foodstuffs had gone up in proportion to the population it would have been 237 million is an increase of 22 million acres. Unless the decline in ihe acreage has been accompanied by an increase of production there is no reason to suppose that the present figures of cultivation would meet the demands of India, and India must take rice from Burma for an indefinite period. The only question which we might perhaps consider is whether in Burma itself there is a tendency of putting too much land under rice. So far as I know the Government has no big project of irrigation and of course the other accretions which come from jungle and disafforested areas are almost impossible to estimate. During the last decennium, one million acres were added to the acreage of rice in Burma. I should not have believed it if I had been told then and I very much doubt if at the end of another 10 years another million acrcs will have been added to the rice arca in Durr 2. acres, that N 19 > tory maize a Chairman-May 1 ask whether Burma finds the present price of zice katisfactory MIT A VcKerral --No, Sir We do not find the present price satisinc- The price has fallen during the list few ipuis bv 60 per cent, which has seriously affected both the landlord and the Government CI arran. We would like to know that Burma considers as the extremt limit of fall of prica, at which stage Burma would consider it necessary to take up the question of substitution which really mear's how much is the next possible crop less paying as compared with rice its A ch'erral -Our difficulty in Burma is that the great bulk of ne is grown in lower Burin i under rain fed conditions, that is to say undei jainfall (helt usually exceeds 100 inches and may come up to 250 ineles So far as I know there is no other crop that can be grown on those areas except rice, except along the banks of streams where you may gut small areas which would grow sugaicine and possiblv jute and But we cannot consider the crops possible in these areas as berious commercial substitutte for rice On our canal areas of course we can do more Some of them are suitable for curcane and I gave the figure to the Advisory Committee of 100 000 acies as the minimum which we can leich if we substitute sugarcane for rice We have one sugar factory ii operation another is being built and a third is under contemplation As for other crops I am afraid I cannot think of any because the price of most of these crops has fallen in almost the same iatio as the price of rice Chairman -What is the difference in the cost of production of Purna rice, as compared with that of Bengal rica ? MA Nckcrral cannot say on the spar of the moment Dr M Vaidyanathan - We bad soine information from the Burma Goveniment The cultivation costs about Rs 20 per acre of irrigitel 11cc in Burina and in Madras it ranges between Rs 30 and Rs 90 Char man-So Burma has natural adı antages thich render the pios duction of rice much cheaper than elsewhere. Mfr 4 UcKerrat -The point is that the population of Burmi bemg too sinall to consume the total production a surplus of slightly over million tons is available for export This the Burma producer mus' nell at the best price he can get the cost of cultivation in Burma must be higher than in the rain fed areas of India because the waves of labou die lugher in Isluding They are nearly double what they are in Bengal Chairman --Are you quite sure that this idea of substituting sugar cane for nice is in the interest of the crop planning or is it the desilor being self sufficient ? 1r A Uckerrel -It is mainly in the interest of the cultivator, that eligarcine is protin If the cultivator can get Rs 10 to Rs 12 per ton of sugarcanc, he makes about Rs 100 per acre uliereis ut he gious rica he will get according to the Birma mcasure 30 baslats for which he will get only Rs 13 18 and half on the old inundation canals in Upper and Lower Sind. Tl:0 development of the area under the Lloyd Barrage will not make any appreciable difference to the acreage under rice in Sind. The total increase of rice arca with the full development of the Barrage lands will not be such more than a lakh acres. Small amounts of rice are exported from Sind. These (sports jent mainly to the Persian Gulf, and Red Sea ports but they are now being supplanted by direct exports from Calcutta and Rangon. The rice question is not of great importance to Şind and, as I have already stated, the position is that we are more or less self-supporting with regard to this crop. 1 Chair?(191.---- What is the arca urhich will be brought uuder rice when the further expansion of the scheme takes place ? NI!. I. J. Jenkins. In the present year, there are about five laklı acres under lice on the Lloyd Barrage Canals and with the final derelorment of the Barrage areas, it is estimaied that there will be just about six lakh acres under rice. This is out of a total area of rice in Sind of about one million acres. Mi. 1). L. Drake Brockman.--All the information we have goes to shiori that our needs are in excess of our production by Suple- Thing like 400,000 tons per annum. We import roughly that quantity, mainly írom Burma. 117. A. JIcKerral.-Burma is the only province that has got over-production of paddy and rice. She produces about seven to eight million tons of which about a half is used by internal consumption and about a half is exported. Of the annount exported, about one million or a slightly over one million tons are at the present moment going to India. As everybudy knows, this trade has been in existence for many years, Buma acting as a granary for India in her years of drought and defi- Cicicy The trade I think is very advantageous to India, as it is to Burma, and so far as I can see there is not much prospect of the amount of rice produced in Burma exceeding Indian requirements. The population of India during the last decennium, increased by slightly over 33 millions ulicreas the acreage under food-grains for the whole of British India Lell from 205 millions in 1921-22 to 203 millions in 1930-31. If the acreage of cultivation under foodstuffs had gone up in proportion to the population it would have been 237 million acres, that is an increase of 22 million acres. Unless the decline in ihe acreage has been accompanied by an increase of production there is no reason to suppose that the present figures of cultivation would meet the demands of India, and India must take rice from Burma for an indefinite period. The only question which we might perhaps consider is whether in Burma itself there is a tendency of putting too much land under rice. So far as I know the Government has no big project of irrigation and of course the other accretions which come from jungle and disafforested areas are almost impossible to estimate. During the last decennium, one million acres were added to the acreage of rice in Burma. I should not have believed it if I had been told then and I very much doubt if at the end of another 10 years another million acres will have been added to the rice area in Durir 1.

19 maize a Chanman-Way I ask whether Burma finds the present price of rice satisfactory! NA VcKerral —No, Sir We do not find the present price catisince tory. The price has fallen during the last few mus bv 60 per cent which has seriously affected both the landlord and the Government Chairman - We would like to know what Buria considers as the extreme limit of fall of prica, at huich stage Bumi would consider it necessary to take up the question of substitntion which really means how much is the next possible crop less paying as compared with rice u Nchcrral -Our difficulty in Burmi is that the great bull of lice is grown in lower Burin i under run fcd conditions, that is to say uuder jainfall alueli usually trcceds 100 inches and may come up to 250 inches So far as I know there is no other crop that can be grown on those areas except rice, except along the banks of streams where you may gut small areas which would grow «ugaicine and possibly jute and But we cannot consider the crops possible in these areas as serious commercial substitute for rice On our canal areas of course can do more Soinc of them are putable for cugarcane mn I gave the figure to the Advisory Committee of 100 000 acies as the manum which we can leich if we substitute sugarcane for rice We have one sugar factory in operation another is being bu't and a third is under contemplation As for other crops I am afraid I cannot think of iny because the price of most of these crops has fallen in almost the same ratio as the price of rice Chairman -- What is the difference in the cost of production of Durra ricc as compared with that of Bengal rien ? M1 A McKerral ---I cannot say on the spui of the moment Afr Vardyanathan _We had some information from the Burma Government The cultivation costs about Rs 20 per acre of irrigatel ricc in Durma and in Madras it ranges between Rs 35 and Rs 90 Char man-So Burma has natural advantages thich render the pro. duction of rice much che per than elsewhere. alr 4 IcKerral –The point is that the population of Bumi bemg too snall to consume the total production a surplus of slightly ovei nila 11on tons is available for caport This the Burma producer mus sell at the best price he can get The cost of cultivation in Burma must be frigher than in the rain fed areas of India because the wages of labour die lughºr in Buna They are nearly double what they are in Bengal Chairman - Are you qute sure that this idea of substituting sugarcané for uice is in the interest of the crop planning or is it the dlesna - 10r being self sufficient % Vr A McKerrut-It is mainly in the interest of the cultivator, that augarcane is grown If the cultivator can get Rs 10 to Rs 12 per ton of sugarcane he makes about Rs 100 per acrc whereas if he grows riee lie will get according to the Birma measure 30 baskets for which he will got only Rs 15 20 Chairman.--Is sugarcand more profiiable than rice ? Nr. n. McKorral.--Yes. Chairm(1917-Vill it not then replace purtain amount of sugar whics Bill.ir and Orissa is producing when these three factories are set in full working oriler Mt. 1, illoKorral... Certainly. At present weiniport fron mava. About five yrars ago we were imporling 40.000 tons but now it has fallen con siderably. 111. D. 17. Sethi. We have on an average about 13 million acres under rice. We producc just a little less than five million tons of clean rice frery year and inspite of this we are a deficit province and have to import. about 80,000 tons from Bengal, so that in Bilar and Orissa there is 10 over production of rice. Mr. C. R. Pawscy.As far as Assan is colicerited there is no over-production and this is chicfly because of the large tea garden population all of whom are rice eaters In Upper Assam there is always a deficiency and in parts adjoining Bengal there are occasional floods when we liave to import rice froui outside. In addition our land revenir assessment is based on the rice producing capacity of the land and during the currency of the settlement I do not think it would be possible to insist oli any limitation of the arca to be soun. A[r, J. 77. Ritchic. In the Central Provinces the arca under cultivation is roughly 54 million acres and except in very good years that is just sufficient to feed the population ; while in years of good crops there is a certain amount of export to contiguous parts of the country. We have a steady market in Central India, iti United Provinces, in certain parts of Bihar and Orissa and in the Nizam's Dominions. From tlie statistics I can say that Central Provinces is just self-supporting. The Ilon'ble Sir Frank Noyce.--Perlaps it would facilitate our work if. the Imperial Council of Agricultural Research could give us some figures oi the relative fall in the value of the agricultural products with which we are dealing now. Mr. M. Vaidyanathan.--I have given the statistics iit the book entitled “ Statistics and graphs" at page 10. I have tabulated the principal crops, and compared their present prices with the average for three years ending 1929-30. From the table it will be found that tobacco seems to be inost fortunate and most of the food-grains have fallen in price between 40 and 60 per cent. This table gives the relative fall in prices of the several agricultural products. The Hon'ble Sir Frank Noyce. It seems to be clear that rice has fallen almost more than anything else, Mr, M. Vaidyanathan. It seems to be só.

21 .. Dr DD. Vcrl. -_-1873 Indie No that is the base Arcrage of ten cars ending 1920 In February 1931 Rice 133 622 Jute, 112 415 Rax cotton, 118 67 Wheat, 169 81 Oilseed, linseed, 157 79 Rapeseed, 191 67 Sesame 143 55 Poppy, 134 77 Gram, 175 85 Sugar, 283 131 Tea, 162 161 Col A. Olves-llare you got thic figures for butter : Dr. D B Acek-Butler does not come into the inder as far as I remember, but we could get the price of imported butter for thosc ten years I could get you the price of ghee Chairman -I tlunk te had better stick to rice for tlte present Now, at page 7 of the Note the Committee arrived at the conclusion that thero was no over production of rice either in India as a whole or in any part of it That is now open to discussion Rao Bahadur C Tadulinga Mudaliar-lay I suggest, Sir, that as there is no definite data with regard to the quantitv of rice consumed by the people a census of the rice eating population of the various provinces be hiranger to be then so that we may have definite figures on the subject for future fruidance Chairman --There is going to be a Provincial Committee, anl that Trill come under provincial marketting, and it will be included in that Rao Bahadu C Tadulinga Mudaliar _Then that will be all right Chairman --Now, is the conference prepared to endorse this conclu son ! R.10 Bahadu Narasimha Raju —Just now it was stated that Burma brer produces rice, but now it is recorded here that it was agreed by the said Committee that there was no over production of rice either in India as a whole or in any part of it I doubt the accuracy of the last portion When Burma admits that there is over production as far that province is concerned, I don't think the fact has been correctly stated in the statement by adding the words at the end ' or any part of it From the statement supplied to us it is clear that Burma produces over 7 million tons of rice It was said just now that she consumes half of it In some other place it was stated there is an exportable surplus of 3) or 31 million tons of rice in Burma Therefore, if you are to judge the production of provinces by their consumption, and when there is a surplus in a province, it will be better to call that province an over producing province If we pioceed like that, we will be in a better as 00 as position to judge the situation. Now, when there is over-procliction ill Burma to the extent of 3.) inillion tons, and the quantity which the rest of India imports froin Bluma is only 011e0 million tons, there is yet surplus of 21 or 2.1 million tons of rice in Burma. The question ilien arises whether this surplus will be absorbed in the Empire or ontside the Empire. If it can be alsorlod within the Empire, then from the figures supplied to us by the Statistical Department we find that the quantity of rice consumed by (aylon, British Jalayil and other parts of ile Empire comes to 2 Inillion tons or something like that. Therefore, far as Burma is concerneci, even making a liberal allowance for import, of Burma l'ice into the British Empire, there will still be a surplus, and in Burma's neighbowhood we have got the Indo-(hina and Malay States which are producing large grantities of surplus rice. According to the figures supplied to us, it is stated that the surplus in Siam is in ile neighbourliood of 3,864 million pounds; which when converted into ions, comes to about 1 million ï hundred thousands tons. In Indo-China the surplus is 2,760 million pounds, and this when converted into tons comes to about one million one hundred thousanols tons. Therefore, there is a surplus of nearly three million tons of rice in Siam and Indo-China. The question that has now to be tackler is, what is to become of this surplus rice in Indo-China, Siam and Buma,--and the total surplus comes 10 nearly 6 million tons. Even according to the figures furnished, the total quantity of rice that was imported into other countries in the year 1930 or 1931 is 2,195 thousand tons. Therefore, if we take all the figures 'together we find there is yet a surplus of 4 million tons or morr in the rice exporting countries of Burma, Indo-China and Siam. The matter needs very careful consideration by this conference as to how to dispose of the extra two million and odd tons of rice from Burma. It will not be wise, I think, to l'ecorrl that Buria has no surplus of rice production. Chairman, I don't suppose it was intended that over-production mieans production in excess of local consumption. production incant that at the end of the year there was something left over. Nr. A. McKerral.-When I spoke of over-production in Biuina, I used the word in the sense in which the representatives of other provinces of India have used it, namely they have no excess after the wants of their people have been met. Over-production in Burma does not mean that she is left with a large stock on her hands. Chairman.But is the world producirig too much rice or niore rice than is needed ? Ar. B. C. Burt.–From the figures supplied by the International Institute, we covsider that from 1933 onwards.the world is over-producing rice; that is to say, the rice production of the big rice consuming and rice importing countries like Malaya, Ceylon, China, is increasing. Every number of the International Statistical Bulletin for the last 3 months las referred to the contraction of the Far Eastern Market, which means that Burma, Siam and French Indo-China, the three great rice exporting countries of the world, are finding it increasingly difficult to market their surplus. The jast number of the Bulletin refers to the fact that Burma is in a better position than Indo-China and Siam, because they have been able to send much more rice to India because of the smaller Indian crop, that Siau also has sent more than hitherto and that French Indo-China is in the worst I suppose Over- 03 posil10u I licue is a definite indlication that since the harvest of 1933 the world position his definitely deti 101 ated Vr ( 6 llorichouse So fır as the surplus 111 the main producius commtric, lhe Inclo Chuina Bul2 ma md Sinm is concerned I think I im cor retin !!!, there has never been a large cirrt over until thui nous irop 'l lic figures according to mi information would not liceul half a million tons it the end of an ont rear which is a very trifling quantity compried to the amounts actually at the disposal of those three counti'e 'lle sig gestion that there is orci puoduction of rice seems to have arisen from the fact that there has been sum decline in the over eas trade of nice from Judia 1dmittedly there has been some decline The reasons for that can lie briefly stated in tho main heids In the first place as we shall come to later in our agenda tliere lmie beon various restrictic measines token bi forti,n countries soine of which an diet lcd in the note ulculated, and the are others which might be mentioned 1 lat to some citent accounts for the decline in the exportable quantitie, marl cted in foreign countries There is again the other main head and that is thuit apreus 10 fm icry definite cridence that the quantities of rice regured by India propei ric tonem; to increise This may be caused I thin! possibly very 111. uk cinsed bs meieac in population There may have brun srason il factors such as shortages of crops in conc arcus and possibly the low MH ce mu have accentuated the consumption But my point is that 78 regards the Burma surplus that we are now discussing the aniount that is ava lable for the oi ciseas marl ct is limited by the extent of the amount that other prouinces in India reaute to draw on the reseries that are 11 ilable in Burina The esports I call thicm exports the amou its tal en u provinces in India from Bumi are showing a tendency to increase The 217 luble firure of the surplus in Burnia is estimnted this you to unount to 3 200 000 tons It may be of interest to give thic figures of actual esports up to the end of Vas t us year Of that avulable surplus 000 000 tons hus nirendy been mor eted overseas to foreign countries Tudia 17 taken 1 100 000 tons already up to date So that out of that ,_00000 tons 1 900 000 tons has zrcady been disposed of wlu lu leaves 1 210000 tons available for disposal between now and thic arial of the neu crop at the end of December I sugget that those figures prie qute conclusively that there is curry possible chance ti at there may le asen 1 shortage of India is going to continue to require such large quantities and it would appear to be Iighly Inadi isable both in the interests of Burmi and in the intciasts of Indın herself tliat the available supplies of Burma should be in any way restricted or decreased 111 TI I Jood -1/2 I ask whether VIr Burt has iny information of the stocis of rice held in the various countri Vr BC Burf - Sir There are no figures of stocks of nice ts fir as I l noi errept stoc s in marchouses at ports That is the great clifficulty in calculating what the exportable surpluses are Mr Wodehouse cin perhaps tell us what the Rangoon stocl s are but I think he wall support when I 821 that there is no information abont up country rtocis I l now that the international Institute has sud that there is prac tically no information about up country stock in Indo Chını or Siam and of course there are practically no statistics at all for China Ine 24 Mr. C. G. Wodehousc.-We are in a position to estinate very closely stocks carried forward at the end of any one year, if that is the point you are referring to. Mr. H. N. Hood. The point is that if there is over-production that the world stocks ought to increase. Mr. B. C. Burt.---Thosc, Sir, will be largely invisible stocks in the hands of the cultivator, of which we get 10 figures. Chairman.-So far as the point under consideration is concerned, that is simply that objection was taken to the statement of the sub-coininittee that there is no over-production of rice in any part of India. This is a drafting matter and would Secretary kindly note that the phraseology of this conclusion is to be modified to indicate that over-production does not mean excess over local consumption but means that there is no stock left in the province of origin, the whole being disposed of. What we have beer discussing in part is really the proposition decided by the committed by a majority which reads as follows :- « That in view of the present world conditions in the matter of rice' production, no Provincial Government should ordinarily offer any stimulus to an increase in the present area under rice." > That is really the proposition ; now, which province would like to father this proposal ? The Hon'ble Sir Frank Noyce.--I notice that five provinces objecti. to this proposition. I should like to know, since they disagree, what. stimulus they have been offering or propose to offer ? Chairman.-Let us first hear from those provinces which would like actively to promote this proposition. Mr. H. N. Hood.-As far as Madras is concerned, Sir, provided that a fairly liberal interpretation is put on the word “ ordinarily We would: not oppose this resolution. Chairman.-I am at present on the look out for some one who would father it, not for such half-hearted: support. Dr. II. M. Hood.-I understand that the original position was that the resolution Tas moved by Dr. Burns but the word “ ordinarily was put in on Mr. Raghaviah's instance. Perhaps Dr: Burns will support it. Dr. JV, Burns. I would like actively 'to support this proposition, because there is no thought of restriction. It is not a question of reduction ; it is only a matter of sounding a note of caution and saying 'do not go aliead too fast'. The position has been very clearly explaineck: We cannot take into consideration the position without considering the world situation, and it is the world situation which controls the price of rice. Mr. Burt read to the Crop Planning Committes, the advisory sub: comunittee, a passage out of the International Review of Agriculture which is so pertinent that I take the liberty of reading it, it is quite short :- Demand in the Far East remained rather slow in. February. The apparently good production in China, the prospects of a good crop in British Malaya and in: the Netherlands East 28 Indies and the large crops in the Japiese territories mike the market prospects in this direction very poor " In the thrce major exporting countries together there has been a slight increase in production in 1933 31 Their joint ceport surplus, tahing into account old crop carry over, is also somewhat above that of the previous season While the market position in Far Eastern countries appears to have deteriorated, the small crop in India has greatly alleviated the situation of the exporting countries While the exports from Rangoon to foreign destinations up to 24th February diminished from 424 million pounds last year to 276 oullion this year, those from Rangoon to India upto the same date, with tlie addition of the exports from smaller poits upto 17th February, rose from 410 million to 550 million pounds Total exports from Siam upto the end of January were 18 per cent larger than in the same month last 3c21, (luc also to much larger talings by India The position of Buimi, thanks to the large Indian deficiency is thus relatively satisfactory, that of Siam, though so far also greatly assisted by the strong demand from India, and that of French Inrio China, with its increased production, less, assured, much depending on the size of the as yet rather undefined crop 11 China 3 The point is that there is a very definite danger of a surplus and we cannot in view of that definitely encourage extension of rice production in Il dia or in Burma Therefore I most heartly support the motion, for vluch I voted in thic sub-comnuittee, and would commend it to thas full Conference Rai Bahadur B B Mukharji --The fact that this resolution too's such a long time to find a sponsor goes to show that the persons who put it forward were not quite convinced of its necessity The last speaker 1173 just told us about the international position, but I would make it clear that we are nationalists first and internationalists later I want to su; port the proposition that it ought to be the look-ont of India first and the p.ovinces later that they must be self contained When this proposition seeks to put a restriction simply because the world production is greitere I from Bengal have got to see how far it affects me If I find that my people, who are v orthult or notoriously rice eaters, have now got tue ure that we can produce, when we see that we can produce the finest rice in the morld and when we can see that the province is supplied with all the gifts of Providence necessary for such productione I do not see why we should lje put into this uncomfortable position of eating--though I am very thanktul to Burma Burma rice which we consider to be inferior, and why should restriction be put on us to produce rice for our own consumption, rice ** hich we consider to be best suited to us and thich we can produce ? I can understand that if the world position deleteriously affects the price, we should be cautious At the same time I cannot quite see why I should be left in Bengal in this uncertain position and why I should not take steps to support my own people with a produce for which the province is suited. I submit as a correctue to this resolution that, subject to a province bemg satisfied that its production cin satisfy its own people, it ought not to go beyond That is, I must first see that my people do get the rice of thio L77EHL 20 ; country and then I would have all eye on the total output of the world. If we are perpetually prestrained from producing that which is necessary jór our own consumption, I am afraid it will be a very unhealthy and ruiresirable position into which we will be put. Chairman-lou would be satisfied if the Durmil variety of rice improved ? Rui Baharu B. B. Mukharji.Quite truc. Nly position is this I do not rally see why Dengal should not be self-contained. I am not speaking anything against all Inilia ; but I do think that it is a sound economic proposition-a proposition which has been demonstrated to be sound by thic late ware that a country should be sell-contained in the matter of cxscntial foodstuft. I do not want to declare war against any other province. 1 do think that in my self-interest the production of my essential food crop should not be so restrained that in time of distress or in time of want I sliould have to look to somewhere else or let my people go with empty stomachs. sprcially when I have been favourably endowed by providence with suitable land, with suitable capacity, with suitable varieties--- pilobably you are aware, Sir, that one of the experts had stated that we cvolved about 400 types of paddy. Chairman.-- Apparently during the last few years the cost of prodiction in Burma is lower than in Bengal. Rai Bahadur B. B. Mukharji. -But, Sir, it is inferior stuff. With all respect for Burma ( submit it is inferior stufi. If you ask : Bengalce to have a guest and then give him Burma rice, he will never return to the house any more. The IIon'ble Sir Frank Noyce-May I interrupt Mr. Mukharji : 1 should like to ask him how he expects Burma to take Bengal jute to the value of Rs. 1,17 laklis per annum unless they export soine rice to pay for the jute. Would it be entirely to the advantage of the Bengal multivator if Burma ceased to import Bengal jute ? Rai Bahadur B. B. Mukharji. I would in fairness to Burma say that if they can have a substitute for the thing we produce they are perfectly welcome to use it. We produce a thing which they cannot proclnce. Noi out of clarity but out of good-will we tell them “ Take this, it will serve your purpose I do submit that Burma rice does not stand in the same footing. Burma rice if it is to continue to feed us will only mean that we are restrained from producing excellent rice if I may say without inpertinence to Burma--in order to consume the coarse rice of Buria. We produce jute. Our cultivators go down in waist deep of water to produce a thing which they need. If you do not want it I do not want to force it on you. The position between our jute and their rice, with great respect, is very different. I would be quite willing to agree to such a proposition provided we are free to take any steps to be reasonably selfcontained. We would then be perfectly willing to accept it. Mr. A. Mckerral.- In the note which I submitted to the Advisory Committee I tried to indicate the physical conditions which existed in Burma and in Bengal in order to show that some provinces can produce crops which other provinces cannot produce. We might say the same thing about Bengal jnte as is generally said about Burma paddy. We might ask why we should not grow our own jute and so be self- 27 contained The truth is we cannot grow jute, because we have not Bengal's climate and Bengal's soil Therefore we exchange out paddy for Bengal's Jute to the tune of about Rs 2 crores and to me that seems a very fi ir arrangement We must not forget that in addition to the financial and economic factors involved there are plıysical factors beyond luch we cannot get Mr P B Richards - Before speaking from the point of view of the rice situation in the United Provinces, I wish to draw your attention to the faci that in the Vice Chairman's note on the proceedings of the Sub Com auttee the representative for Burm? his not been included among the minority who voted against the resolution that no Provincial Government should ordinarily offer any stimulus to an increase in the present area under rice Burma, Beng?! the United Piovinces, Sind and the Central Pro vinces voted against this resolution Now, Sır, these are the main rice pro ducing areas They cover, I imagine something like 90 per cent of the to al rice raised throughout the Indian Empie, if Burma is included Sir T Vijayaraghavacharya -It is a clerical error A[r P B Richards --Then, Sır, if the Provinces which are really interested in the growing of rice do not desire these restrictions why aliould the Provinces which are not greatly interested in nice growing wish to enforce them So far as the United Provinces are concerned the reason why thus resolution should not be paseed is two fold One is that our atur age acreage in the United Provinces for the last 10 years has been approxi- Inately 7 million acres This year it was just under 6 millions If we are not to encourage our cultivators to go back to their normal 7 million acres In ler rice, what are we to do? We should have to grow on one million acres some other food crop, if we could find one winch pays us as well, and there seems to be no practical advantage in attempting to change one food crop for another even, if it were practicable to do so on rice land The otlier reason, Sır, sliye this resolution as it stands is undesirable is that it foreclodles the utilisation of new canal schemes wluch have been designed, in part at any rate, for the turnover from less paying crops to rice amun others The capital has been sunk, the canals are functioning and develop znent'is going forward For the chiange over from unirrigated to irrigatel conditions, the cultivators must be trained in the proper use of watu aud in the clange of rotation vluch is necessary Consequently very active encouragement is iequiled if tliose canals are to perform the function for wluch the Government have constructed them If, therefore, at this stage it is laid down as a general principle whch Government might feel tycki in duty bound to follow, that no stimulus should be given to an increasc m the rice arén then all its calculations in regard to its schemes-110t ner pro posals but' schemes already in running order—yould have to be reused Thus vould seem to inflict considerable hardship upon just such Prou.ces as happen to be cruglit at this critical moment Thc IIon'blc Sir Franh Noyce-In dealing with a Resolutiou of thus kind, we should clearly define the terms What is meant by stimulus Dues stimulus mcan propaganda ? We cannot imagine any borly licio in the present world conditions advocating special propaganda Dr. II' Burlis-Stimulus does moi propaganda It also means such a policy us putting new canal under rice It also incans putlu å di afforested artas under rice Those three points were in our minds 28 Diwan Bahadur T. Raghavial. With reference to Mr. Richards remarks, this point was prominently before us and that is why I raised it and that is why the word “ ordinarily was used. In Madras costly irrigation schemes have come into existence and they have not reached their wtimate capacity. It was not our intention that anything should be done to prevent that ultimate capacity being reaclied in those cases. The idea in our minds was that, no fresh large project for putting laud under rice should be undertaken, Rao Bahadur C. Tadulinga Mudaliar.--With due deference to the Sub-Committee who passed this resolution I strongly oppose it. Rice is thic only crop which gives the highest l'evenue to Government at present. There are several schemes in Madras such as the Cauvery- Nettur, the Bhavani and the Tungabhadra. I un sure there will be a large acreage Longlit under cultivation. Out of 45 millions ol thie population, 50 per cent. are rice-eating population. And Madras is able to supply the rice requirements to only 16 to 18 million people. Madras is not producing enoughi quantity of rice for purposes. Therefore we should not be in a position to support this Resolution because Nadras should after some time at least when her conditions improve be in a position to be self-supporting. Chairman. That you had better decide among yourselves. Different members representing Madras cannot express different views. own This has been a very interesting discussion bringing out very very pointedly the difficulties of crop planning in India. We have here more or less a number of autonomous provinces, cach province feeling that it owes a duty to itself first and to India afterwards. That is the position taken up by Bengal. (Rai Bahadur B. B. Mukharji : Yes.) The position is not unreasonable. At the same time when we are expected to arrange crop planning for India, it must be realised that in securing the best possible result for India as a whole it will be extremely difficult in some cases not to so adjust things that thereby the interests of the province are not kept in view to the extent that they would be if Indian interests were not to be supreme. Is this crop planning with reference to each province or is it to be with reference to the whole of India ? It is very natural for all rice producing provinces to feel that as long as their own demands are not met there should be no restrictions placed in the way of their going on producing rice ; there should be no restriction placed on their producing such rice as they need. That is perfectly reasonable. At tho same time we have to take into consideration the object which we have come here for. It is to reconcile the interests of provinces as far as possible, to see that India gets, as I said, the best value out of its produce. I do not know what the solution of this difficulty is and I should not be surprised if we do not achieve greater success than the World Economic Conference which met in London last year. Still there are lessons to be learnt. We will know the limitations on the power and authority of Government and also the readiness to sacrifice our own interests or provincial interests for the interests of the country as a whole. Now in face of the opposition from rice producing provinces to this proposal, is it possible for us to agree to a formula like the one which was enunciated by Bengal. and a representative from Madras to the effect that rice producing provinces which are deficit provinces in the sense that their local demands are not ;

29 SO met by their production should be free to produce more till their demande are met ' Flas Burma any objection to that formula ? M1 A MIckerral - I can see no great danger to Burma from the adoption of such a formula because it is unlıhely, as appears from the gures which I gave, that the Indian provinces will be able to support them- Ellyrs for a very long tune to come Dr W Burns-1 submit that the formula just not proposed is not a seny great help because it scems to be a concession to the narrow provincial point of view which we must combat It has been suggested by the representative of the United Provinces that the rice producing prov nces voted against this while provinces which were not so interested in rice votea for it Although the area in Bombay is a third of that in the United Provinces and a fourth of that in Madras, it does not follow that Bombay y not interested In the last Legislative Council the member for Thana ashed a question as to what was going to be done about the drop in the puc of rice due he «gid, to Buimese and other competition That shots that the question is vital there still I am not authorised to commit my Government in any way to any policy without examining it I am judging this simply as a responsible representative and as a member of the Agile cultural Department and as one who is in touch with provincial, Indian ind international matters It seems to me that the Resolution innocuous that I cannot see any objection to pissing it in its present form, Ar H1 Hood -The present policy of the Madras Government since the slump in prices is caution in instituting irrigation schemes designed or likely to increase the rice producing area of the Picsidency and examination of schemes designed to irrigate other crops Ih Resolution as it stands gous much beyond that and compels the rico producing Governments not to increase the produce of rice at all If tha present arer is not to be increased at all, then the Madras delegation could not agree to thuis Resolution at all We could agree to such a formula as “provided that it should not go beyond the power of consumption 111 the province That is, I think, the intention of your suggestion Dewan Bahadur T Raghariah --As one who was responsible partly for the Resolution I may say that we looked to the interests of India as a whole In regard to Madras we were aware that Madras has spent a good deal of money on irrigation schemes for the production of rice and that is why we said " ordinarily " to save cases in which it was necessary to go on eyanding cultivation The idea was that no new large arca should be brought under rice cultivation even in Madras There may be special cases where ou ircount of special factors it may be necessary to introduce rice into small new arcas Except in those cases the idca was that the cultuation of rice on new areas should not be encouraged and I do not really see that there can be any objection to accepting the propasition in that sense Chairman --Will the proposal be acceptable to the Conference in this revised form "That the present torld conditions in the matter of rice production be borne in nund by provincial Governments wluch may be contemplatin; wi ncrease in the present arca under rice Mr B 8 Kanal-Lven with regard to this revised formula What about the commitments wluch the Local Governments bave already, 30 10 marie in irrigation projects? Is my friend Air, Jenkins pointed out, t think the Sind vanal system contemplates that although the present arez lie under rice may be ő lakhs, in 1941 it is experto in risp to 6 lakhs. whole scheme has her basert on that commitment and I don't loow how the Local Governmeists will hear the worlrl conditions in mind if they are to be true to their commitments. We are agreed about tlır arneral principle that there should be no over-production within India in any province and in framing a formula we may say that there is no ease in the opinion of this Conference for restriction of the present arcil. I we confine ourselves to that statement I think we go so far as we not to ern, We are now in the lands of Local Goveruments and we cannot vise them as to what they shoull do in future in respect of their comunitments. liu Bahadur 13. B. Mulhurji.is regards Bangal have already accepted your suggestion and we do not think it will haruper tis in any way. But I emphatically deny that I have been provincial at the cost of India. I have been provincial in the interests of lulin. The reason winy I oluject is tliis that the proposition that was being called arro provincialism was really one which meant a broilerteil nationalism for India. I accept this proposition whole-heartedly. Chairman.--Ias Dr. Buns anything to say ? Dr. IV. Burns. I am afraid I luuve said all that I have to say at the moment. We are asked 10 rcfrain from positive action in propaganda or in putting new areas under ricr. I (o not see myself that this resolution as worded in the cyclostyled paper before you in any way interferes wi!!! present commitments, and I must say that this is the best thing that we coil do. It is very mild : it does not restrict the area ; it is an advice that there should be no definite pushing of future rice cultivation ; and there fore, with all deference to you. I would he inclined to stick to the proposal as it has been crafted by the Sub-Committre. Chairman.—That is on behalf of Bombay ? Dr. P. Burns.-Yes. Mr. A. D. Gorwala.—Bombay excluding Sind. We do not agrce willi the view that Dr. Burns has taken. Chairman.-Will, those who support Bombay minus Sind indicate by show of' hands? There are two alternatives. We may pass a resolution or pass nothing: If the Conference prefers to pass nothing it is open to it to do so, or if it prefers to pass that mild form of resolution that was read out it is open to it to do so. Will those who support the formula read out indicate by provinces ? (Madras, Bengal, the Punjab, Central Provinces, Sind, Bihar and Orissa and United Provinces indicated essent ;, also Bombay in default of something more positive.) Chairman.--Now we proceed: to page 8 of the Note, that in view of the answer under (1) above restriction is rceommender and the questions under (2) A do not arise. Then we come to internal markets. As regards internal markets it was agreed that the development, of internal markets was of great importance and that this development could best be pursued by means of the marketing scheme now under the separate consideration of the Iinperial Council of Agricultural: Research: As regards external markets thie Sub-Committee made the following recommendations : (i) that negotiations should be opened with Ceylon and British no 31 Malaya with a view to obtain preference for Indian rice. Let me take this item No. (i). The Hon'ble Sir Josepit Bhore. The only observation that I would like to make in regard to this is that this question of preference for our rice in Ceylon has more than once engaged our attention. We are up against a difficulty there because Ceylon is quite prepared to consider pre- [crence to Indian rice but what she wants is some very special treatment for Ceylon cocoanut produce so far as this country is concerned. We are thus in a dilemma. IIowerer, I can assure the Conference that we shall hear this recommendation, if it is carried by the Conference, very carefully in mind in our future negotiations with Ceylon. This item was unanimously agreed to by the Conference. Chairman.—We not come to item No. (ii)-that as soon as financial circunstances permit the export duty on rice should be removed. That is a sort of demand which is very easy to make but not easy to meet. But is that one of the proposals on which the Sub-Committee was agreed , Dr. T1'. Burns. There was one dissentient. That was myself. It stems to me tiiat this is a duty which has been on for a long time I have been told for over 10 years. A similar duty is imposed by the other two exporting countries Siam and Indo-China also and it does not seem to me that it is necessary at the monent to do away with what is a source of revenue to llie Central Government. If we do away with the duty the foreign com. petitors may do the same and we shall be in the same position as before only with loss of revenue to the Central Government and nothing gained. The Hon'ble Sir James Grigg.–I think the question of removing tho export duty on rice at the moment is rather an academic one because the best part of a crore is obtained from it, and personally I do not see the Government of India being in a position to surrender a crore of rupees of revenue in the very near future. lai Bahadur B. B. Mukharji-But that does not stand in the way of suggesting to the Government of India that we do think that doing away with the export duty would expand cur market and help to create yrood Brill in the interests of India and that it should be adopted at the earliest possible moment. The Hon'ble Sir Miles Irving—The Punjab Government does not want to commit itself. That was Ar. II, M. IIood. The Madras Government are very anxious that the unty should be removed. During the course of the Economic Conference held a couple of months ago I think Sir George Schuster raised the pointnot that they could not afforıl to take the duty off and that they were badly in need of revenue, but that it was a very long standing tax. the point made then. Chairman.—Dr. Burns' point was that it is a duty from which Indian esporters suffer along with exporters of other countries, and our lcading the way to its removal may mell be followed by others. Dr. JI. J. JIood.-If other countries have an export duty on rice and put obstacles in the way of their people exporting rice, that does not seem lu bc any reason why India should also have an export duty on rice. Chairma:.---The obstacles will just be the same as they are at present if they folloir us in this good lead.

32 : : Mr. H. M. Tood. That is true, but I think Sir George Schuster said that the position with regard to rice was precisely the same as that with regard to wheat, and there does not scem to be any export duty on whcat. Madras is anxious that this export duty should be removed. Chairman. There seems to be some difference of opinion as to the advisability of this particular proposal. If it is academic is it worth while proceding to divide on it! If it is a matter of principle with some, expression of opinion of each Government ought to be enough. Madras, Bengal, Central Provinces, Burma, Trere for removal. Bombay was not for removal. Punjab and United Provinces did not wish to make any recommendation. Sind had no instructions in the matter and did not propese to say anything. Assam had nothing to say on the subject. Bihar and Orissa was not interested in the subject. Itein No. (iii) of the Note : that the specific duty imposed by the Qitawa Agreement on imports of rice from foreign countries to the United Kingdom should be extended on paddy to the extent of three farthings per lh. Government will do their best to have this point carefully examined and see what can be done. Item No. (iv), Part I of the Note : that Burma and Bengal which produced rices suitable for English and Continental markets should continue their experiments in the matter of improving the quality of such rices. We had a reference some time ago as to what can be done to improve Indian rice to enable it to compete with Italian and Spanish rice. The inquiry was circulated to all provinces and Bengal and Burma were the only two which held out hopes of doing something in that line. If the situation has changed since then and any other province hopes to enter the field of competition I should like to know. (No discussion) I trust these two will do their best to see whether any portion of the European market can be secured for Indian rice of superior quality. Rui Bahadur B. B. Mukharji.--We undertake to do our best. Chairman.--I understand from the Vice-Chairman of the Agricultural Research Council that a handsome grant has been given to Bengal for this purpose. Rao Bahadur Narasimha Rajul.-I see that Madras is omitted from this list. Sir T. Vijayaraghavacharya.-Madras is not interested in this matter. Rao Bahadur D. Ananda Rao.--I asked for information as to tlie variety required and the quantity required. I understand that the quantity required is a little over a million tons. Chairman.--I dare say the. Council of Agricultural Research will be very glad to get any further information that may be required. Railway freights. I understand that the Railway Board are anxious that they should accommodate the needs of those wlio want revision of freights on agricultural commodities. They are anxious to consult agricultural officers in this connection, I suppose the Conference notes this with satisfaction. Paragraph 3 of Part I of the Note. It would not be vise to impose any restrictions on the import of foreign rice into India. Later, on · the conclusion arrived at is that an import duty at the rate of Re. 1-1-0 per maund and of 15 annas a maund on paddy might be imposed on foreign countries. Sir 7. Vijayaragharacharya,-\Ve want a moderate amount of dnty that will not produce retaliation. Dr. W. Burns.-I find it exceedingly difficult to express any opinion on this subject. I have not consulted my Government and I am expressing here my own opinion. We are trying to raise prices at the present moment and I do not see any reason why we should not adopt the same procedure as in the case of wheat. M1. C. G. Wodehouse - I would suggest that instead of the word foreign' we might say ' non-Empire' countries. Chairman.-If this duty is to be like the wheat duty, then that is applied to wheat coming from any country other than India. It was really meant to fight Australian wheat, Sir T. Vijayaraghavacharya. Both mean the same thing. It is well understood. Mr. A. D. Gorwalla.—May we have figures of the imports of rice from Siam. Afr. II. Vaidyanathan.—The imports from Siam and Indo-China from January-_March 1934 amounted to 58,000 tons as compared with 8,500 tons during corresponding period last year. The Hon'ble Sir James Grigg. Is there not some absurdity in imposing an export duty and an import duty on the same commodity ? Sir T. l'ijayaraghavacharya. This reform has been long put off on the ground of logic. The thing is now being really felt by the Madras Government. We felt that practical considerations must prevail over logic, Ar. C. G. Ilodehouse.--I can give later figures than those quoted by my friend. The actual imports from Siam into India in the last six months, that is to say, from December to May amounted to 150 thousand tons. Mr. M. Vaidyanathan. There has been some discrepancy in the figures furnished by the Burma Chamber of Commerce and those supplied by the Director of Commercial Intelligence. Chairman.-Apparently this is a very important matter indeed. It is an administrative matter mixed up with financial considerations but I am sure that in view of the opinion of the committee, Government will take this into very serious consideration. In fact the subject was agitated by a number of members in the Legislative Assembly and the Council of State and has been under examination already. The Hon'ble Sir Joseplı Bhore. I would like to endorse what the Chairman said and we will certainly look into this matter very carefully but I would like to emphasize the danger of duties such as this leading to Tetaliation in regard to our agricultural produce. That is a very serious question indeed and the possibility of retaliation has always acted as a deterrent to our taking action. We have been accused of delaying action in this matter. We have delayed action for a very specific reason, because there is a danger of retaliation. A duty of 33 and one-third per cent. L77EUL 34 is by no means a light one. It is sufficiently heavy to call for retaliatory action from countries which are affected. At the same time I think we can give an assurance, not that the matter will merely be looked into but that it is actually receiving consideration at the present moment and is under reference to the Governments which are concerned. Chairman. This brings us to paragraph 4 of Part I of the Note-- the ananimous recommendation of the Sub-Committee that it was desirable to have a standing committee of the Imperial Council of Agricultural Pesearch, that the functions of such a committee which should be constituted under the rules and regulations of the Council should be advisory, that its constitution should be on the lines of the other standing committees of the Council, that it should be financed from the funds of the Council, and so forth. Are there any observations by members of the Conference? I take this is agreed to. The next point is that Madras desire that the import of rice from Burma should be subjected to a quota but other members of the Conmittee did not agree with them. Does anybody wish to make any observations ? Rao Bahadur C. Tadulinga Mudaliar.–Some years ago Burma was importing about 750,000 tons of rice into Madras but of late I understand that they are importing over a million tons. If that goes on for a number of years and if they are going to increase their imports to two and three millions, what is going to be the fate of the rice-growers of Madras ? Chairman.-But you are increasing your population ? Rao Bahadur C. Tadulinga Mudaliar.-But we are not increasing our population with such rapidity (Laughter). Therefore, we may, at least: for the information of this Conference, suggest that Burma limit its iniports into Madras to 750,000 tops and not beyond that. Chairman.-Do you make that suggestion in the interests of the ricegowers of Madras ? Rao Bahadur C. Tadulinga Mudaliar.--It is only a suggestion--it is left to the Conference. Chairman,-The Conference would like to know whether this suggestion is intended to be put into operation if Burma agrees to it, or in spite of Burma's not agreeing to it, and, if so, in what way you would advise the Conference or Government to act ? Rao Bahadur C. Tadulinga Mudaliar.—The Director of Agriculture will be able to explain the position. Chairman.-What have you to say with reference to your desire that Burma should be limited to 750,000 tons of rice being sent to Madras and no more? Koo Bahadur D. Ananda Rao. I would not fix any limit like that. I any reasonable amount " Chairman. And the reasonableness being left to Burma ? Mr. H. M. Hood. The " reasonableness" will I think have to be fixed by some agreement with Burma. What I was instructed to put forward was that there should be some limit to the amount of rice which Burma might import into Madras. would say 35 Chairman.--Madras is free to export any of its commodities to any Indian province it likes; and therefore if any province moves the Government of India to restrict the rice of Madras, that will have to be done by agreement with-Madras or by the Government of India taking powers, to enforce its decision on Madras. Mr. H. M. Hood. The intention was of course this. A great deal of rice is coming into Madras from Burma, and if it could be restricted, there would be some chance of getting the price of Madras rice raised. That is the object of the whole thing. Of course, I can see that there are serious difficulties. Chairman. You do not think that on the whole the Sub-Committee was right? M. H. A. Hood.--I do not wish to press this matter further now, Sir, Ishonld prefer to leave it to the Government of Madras to make further representations to the Government of India if they wish to do so. Chairman - Is there any other point relating to rice which members Trould like to take up ? Ur. 4. D. Gorwala. I would urge that it be noted that where the alteration in railway rates affects the movements of rice of another province, both the provinces or all the provinces concerned should be consulted ; for instance, if two provinces are competing in the same article, then, if you alter the rates from one place to a port, it is going to affect the marketing of the other province. Consequently the other province should also be heard and its objections noted before the Railway Board comes to any decision. That is all I want. 17. N. D. Calder.-Yes. Chairman.--Coming on to wheat (Part II of the Note) is there any province which is prepared to sponsor the proposal on page 9 that, keeping in view the world position as regards the production of and trade in wheat, it is undesirable that the area under wheat in India as a wholo should exceed 33 million acres ? Jr. P. B. Richards. Speaking in my private capacity and not in any way committing iny Government, I wish to draw attention to the possibilities which might have arisen in the past season. The United Provinces, norinally, has a wheat crop of about 7 million acres. In the current season its wieat area was some one million one hundred thousand acres above the norinal. Somewhat similar, but not to quite the same percentage of increase, was the case with other wheat producing Provinces. It is a fact that our wheat production this year is expected to be about the nornial, but that is a accident. llad it not been for frost and heavy rust attack and dry hot winds, there would have been a bumper crop in the United Provinces. There would have been a bumper crop in other areas also, ind, instead of, so far as India itself is concerned, a crop which she could reasonably expect to consume, there might well have been a crop very much in cxcess of Indian requirements. The figure of 33 million acres was based liron average yields and estimated average consumption. I would not press for any motion by this Conference upon the proposal which was timor] clown by a majority in the con l'royincinl Governments and so far as it is in their poser.' in the total figure proposeci si le resolution.

36 i Chairman.--Have you any figure in mind as to estimated consumption? So far as the estimated area under crop is concerned, your estimate is subject to verification ? So far as the estimated consumption is concerned, is there any basis for the estimate ? Mr. P. B. Richards. Since the cessation of rail and river-borne trade returns, it is only possible to guess, but it appears that in a normal year the United Provinces is able to export something like two hundred and forty thousand tons to deficit Provinces which have been able to consume it without difficulty and without any local depression in prices. Chairman.--Is not the estimated consumption on the basis of somo price the lowering of which price may lead to increased consumption ? Mr. P. B. Richards. That is a matter upon which I am not competent to pass any opinion ; that is a matter for economists. Chairman.. In other words, is it contended that all who want to eat Wheat at the prevailing price get it and are able to buy it? Mr. P. B. Richards.-All who want to eat wheat at the prevailing prices get it to the extent that they are able to buy it, but not all to the extent of their bodies' satisfaction. If it were cheaper, there would probably be greater consumption ; but the attitude which was adopted in the Sub-Committee was that we must consider economic prices as well as the well-being of humanity. Clairinan. In case that proposal is adopted, how many millions of acres would United Provinces take off from two millions ? Mr. P. B. Richards...We have been in excess by 1,100,000 but as to how it would be possible to induce the cultivator, I cannot say. Chairman.-Your basis of reduction provincially would be the percentage on the area under wheat ? Mr. P. B. Richards. It seems that the United Provinces is responsible for about half the increase in acreage of the past year. I would be prepared to recommend to Government to take every possible step to reduce the acreage to normal. Mr. W. J. Jenkins." The supporters of the resolution advocating restriction of the wheat area in India have endeavoured to establish a relationship between the total acreage of wheat in India and the iuternal consumption. They have pointed out that, owing to the import duty, there is at present no export for surplus wheat produced in India as the price in India is so much above world parity. They recommend restriction in view of the possibility of larger crops in future and the consequent effect on prices. But there are two sides to this picture and it is quite possible that we inight' have one or more bad years in the future when the wheat produced in India would not be sufficient for internal consumption. In addition, it is quite possible that a revival of the wheat export trade may occur in future. Accordingly, I consider it an extremely dangerous thing to lay doin any kind of restriction on the area under wheat in India as it is one of the most important food products of the country The Hon'ble Sir Miles Irving.--I think the point should be made clear as to what we mean by our standard of consumption. Does it mean what people would like to eat or what they have the money to pay for. In point of fact if you take a ton of wheat as food for a family of four people it!

37 arould work out that the present wheat crop would feed only 44 million people out of a population of 350 millions in India. It has also been proved that the dietary of non-wheat eating countries is not so good as that of the Punjab and it would benefit people as a whole if the eating of wheat were extended. In fact Punjab would like to have a campaign to“ eat more wbcat", We are prepared to supply wheat at a reasonable price. The whole question before us in the Punjab and probably all over India is the question of price. Whether the supply, has affected the prices very much I rather seriously doubt but the prospects of a bumper crop undoubtedly have some effect on the market, but depression does not seein to bear a strict proportion to the fluctuations which arise from other causes and to my mind this factor does not seem to have been calculated. There are also interesting figures in the Pujab which show that in the Junjab alone the cultivation of wheat has decreased proportionately to thie total crop of cereals. Twenty years ago on a five years average the cereals were 75 per cent of the total crop, we have now 70 per cent. Wheat used to be 3.16 of the total crop but it is now 3.06 and at the same time if you take the graphs of wheat production and population, the population has outstripped in the Punjab the consumption of wheat. Therefore, I think it is very unsafe to say that we have come to the end in India of what is a reasonable amount of wheat we ought to grow. The problem lies in other directions in finding out how the purchasing power of the people could be improved. Mr. B. C. Burt.I submit that the position of wheat is a special one in this way that for several years the Government of India has maintained a cleliberately artificial price for wheat by means of an import duty which lins definitely prevented the country from exporting any surplus because of the high internal price. Tlie import duty cannot be effective in maintaining the internal price if you get an unmanageable surplus. Those who support the proposal have placed thic maximum consumption under present condition at 94 million tons and that is an optimistic figure, arrived at from the average luring the last three years In 1929-30 we had a record crop of 104 million acres and carly in 1930, the Commerce Department and the Research Council made independent calculations of the internal consumption of wheat from a consideration of the import and export figures and the crop figures. This was possible because we were able to deal with a series of years at the start and end of which stocks were clearly at a minimum because there was a change over from an exporting to an importinc position. That calculation gave a figure between 8.5 million tons and 8.8 million tons per annum. Both departinents were agreed on that figure. Thnt was over a prosperity period. Following the large crop of 1929-30 and of course Russia's cruption into the world wheat market, there was a tremendous fall in prices. There is no question at all that we have been able to alsorl) during the years that have followed 1930 something very close to 91 million tons. There is no indication that the 100 million crop was not absorbed gradually as the fall in prices passed away when he import duty came on ; tlic crops which hare followed have been between Dnnd 9 million tons. The estimated consumption of 91 million tons per annum is confirmed by the consumption calculated by the Statistician to the Research Conncil from population changes and assuming a straight live trend giving an annual increment of alout 90,000 tons per annuin. But there is this further dificulty. In 1930-31 wheat prices had fallen sharply but labourers trages were still high.. Wages beginning to fall and the stimulus to incrcased consumption of Nicat which is one of the superior food grains nust gradually disappcar, are not 38 There is now an organised attempt to bring down the rates of urban labour and agricultural labour has fallen. Far from assuming that our consumption of wheat of 94 million tons will increase by 90,000 tons a year there is every risk that it night slip back. Therefore it was quite a generous figure that we took, Now it is estimated by our statistician, from the same calculations, that present stocks of wheat in India amount to some 600,000 tons. This may not seem much for a country like India producing and consuming 91 million tons of wheat annually but my own feeling is that in March last stocks were as large as the wheat trade in India considered healthy. If we look at the course of prices, we see that wheat prices fell sharply as soon as there was a prospect of a really big crop, i.e., as soon as the Government figure for the wheat area was known. Trade estimates are from 2 to 3 weeks ahead of the Government forecast for the simple reason that they get immediate reports from which they make ир their own forecast as to what the position will be. It was not until the effect of frost and cold and the unseasonal cloud during the last month of the crop became obvious that prices began to recover. That seems to me a clear indication that the wheat trade in India considered that we had reached the danger point and that with a record area of 35 million acres were likely to have an unmanageable surplus. This acreage on reasonably average yields would have given a crop of 11 million tons and with export closed in addition of over a million tons surplus to a carry over of 600,000 tons would have been a serious problem. Therefore I think it would be wise to limit our wheat production to 33 million acres in itself a generous figure because the bumper crop of 1929-30 was 10 million tons on an acreage of 31.6 million acres so that there is a very big margin in hand. While I have every sympathy with those who would increase the consumption of all cereals by all classes of population, we must not forget that if wheat prices fall the man who would go hungry is the cultivator because in all the major wheat producing provinces a certain amount of wheat has got to be sold to pay rent, irrigation dues and the like. If prices fall the quantity which he has to sell increases and it is not the urban labourer who is likely to go short but the cultivator. I do think that when Government is taking special action to maintain internal wheat prices, it would be a great mistake on the part of wheat growers not to take full advantage of it by limiting the production of wheat to what is required for internal consumption. If we are going to depend entirely on an increase in consumption surely we ought to remove the wheat import duty and let prices slip down to world level and let all consumers benefit. Already protests against the import duty have been made in the Assembly against the wheat import duty on behalf of the wheat importing provinces. I do not think the wlieat producing provinces can expect to have it both ways and I do think that some serious plan on the lines suggested by Mr. Richards is urgently called for. Rai Bahadur B. B. Mukharji.-One point I wish to urge is that so far as Bengal is concerned the consumption of wheat has increased. As matter of fact we are confronted with the solution of one of the most important national provincial problems as to how to arrange for the national diatetic. There is an organised movement carried on by the Studcuts' Welfare Comunittee that wlicat should be one of the main items on the diatetic. As a matter of fact our social habits are also changing. If I were addressing a conference wholly of Bengalis I would remind them of the adage and the question which used to be put whenever a person' used а.

39 to go out for invitation whether chira' came at the beginning or at the end, that is whether it was (chira) rice throughout or at the end. I am sure no one would care to go to a dinner if there was rice right through and even the cultivators are now taking a lead. Tliere is a definite movement in Bengal for adding wheat as an item in the diatetic of the people. I think it wonid be very unfair if there be any cmbargo so as to make the price higher than what the ordinary consumer would be able to get at. And though as a wheat producing province we stand low and we would not object to what is good for India, I do submit that wheat is gradually gaining in.importance as an item of diet, and if it comes in I would rather welcome it. Chairman. If there is nobody in support of the proposition on page 9, barring the Director of Agriculture of the United Provinces in his personal capacity, we may take it that it is dropped. We will now proceed to the second one. Nr. 4. D. Gorwala.--Mir, Jenkins informs me that he did not agree to the whole of this. He'agreed that efforts should be made to substitute other rops for wheat but lie did not agree that no fresh stimulus should ive given to the expansion of wheat cultivation. As a matter of fact it is difficult to understand what fresh stimulus means. The Hon'ble Sir Miles Irving. I do not think this formula will be acceptable. This difficulty about wheat is very largely a matter of interprovincial competition and the prospect of the Sukkur Barrage throwing in two million acres is a very serious matter. The Sind representative suggests that if anyone is going to restrict its wheat, the Punjab had better begin. I don't think competition on those lines between the provinces is going to lead to any fruitful results. We do not see any possible way of changing the course of cultivation in our canals more than has been done already. As I have pointed out the production of wheat in the Punjab is going down very rapidly on unirrigated lands. The trouble before us is what we are going to do with the extra 2 million acres that Sind is going to produce. I do not suppose any Government could really agree to the Resolution as it stands. Ir. A. D. Gorwala.--The point at issue is the difficulty of finding a substitute for wheat. The fall in prices has not been restricted to any particular commodity. The general level of prices has dropped. It is a fundamental principle of economics that movements in general prices are primarily caused by monetary influences, and the mere substitution of one crop for another is not likely to have any effect on the situation. The farmer should find his just remuneration in the regularity of prices enabling him to reckon on a legitimate return equivalent to that accorded to other prodncers. Unfortunately the formulation and execution of such a policy is outside the power of the farming classes. In this matter, their fortune lies in the hands of statesmen and bankers ho control the purchasing power of money. If, however, it is felt that the quantity of wheat slould be restricted why should not the Punjab take action ! The Punjab is the nursery of goo.1 agriculture and it will be much easier for the 13- perienced and clever Punjabi cultivator to switch over from one crop to another than for the Sindhi ngriculturist, who is yet learning his work.

40 I cannot dictate to a farmer what he should grow. If I insist, If I insist, then in case of failure, the responsibility is mine. Oilseels is a new crop difficult to grow and much more casily affected by frost than wheat. The responsibility of insisting that the zamindars in Sind shall grow other crops rather than wheat to the growing of which they have been accustomed for ages-is, in view of the prevailing prices and the uncertainty of the future, not one which any Government ought to undertake. Moreover, the carrying out of any such restriction programme is not practicable. With reference to the Resolution we will agree to the second portion that every effort should be made to substitute other crops for wheat. But as regards the stoppage of fresh stimulus to the expansion of wheat cultivation, if fresh stimulus means that the acreage under wheat is not to be increased, tlien we must l'espectfully object. Our Agricultural Department is, of course, placing facts before the zamindars showing the usefulness of various alternative crops. We are prepared to do all can to encourage more profitable cultivation, but we cannot accept the policy of restricting wheat. We might perhaps be prepared to agree that in the future no new schemes sliall be undertaken which are likely to lead to an increase in the wheat area, it being clearly understood that new schemes do not mean full development of existing projects. we Dewan Bahadur T. Raghaviah.--The idea was the same as in the case of rice that no fresh irrigation project or fresh canal should be constructod wlich will liave the effect of increasing the area under wheat. Abont the existing areas they could increase to their maximum capacity. The Hon'ble Sir Miles Irving.-Punjab must oppose that. It lias one or two projects that may possibly be taken up and they would inevitably result in a certain area being placed under cultivation, and the Punjab Government could not agree to an embargo of this description. Mr. J. H. Ritchie. Central Provinces is not concerned with this. We are not likely to start any irrigation projects. There is no irrigation project at all in the Central Provinces, The area fluctuates from year to year according to the soil at soving time. ; Mr. P. B. Richards.--In principle I support this ; but in the course of the discussion in the Sub-Committee, the question arose whether small minor projects were included such as the September flooding of comparatively small areas in which rainfall was in defect. One would like to see such small projects excludert. Over precarious tracts, it is under consideration whether surplus canal water cannot be utilised to make good defects in rainfall in order to prepare them for wheat or other rabi crops. I would like the resolution to be a little less rigid if it is likely to exclude investigation or actual operation upon such comparatively minor areas. Sir T. Vijayaraghavacharya.—What is the limit of the minor area ? Mr. P. B. Richards. It may be only a matter of 5 or 10 thousands acres but as the resolution stands it precludes this. Mr. B. C. Burt.---That is not a stimulus to fresh wheat cultivation at all. It is merely protecting the existing acreage.

41 more COD- Nr. P. B. Richards. As long as that is understood I have no objes. tion. Dr. W. Burns.Ve are on the horns of a dilemma. On the one hand the situution has been explained by Dr. Burt. On the other hand, we late the commitments of the Punjab and the Sind Governments which uppcar to indicate that there will be an expansion of wheat. I would like to anote again, if I may be tolerated, the following very apposite quotation from an article by George Pavlovsky published by the International Institute of Agriculture in their Monthly Bulletin of Agricultural 1.conomics and Sociology : * The prices of these products on markets so effectively isolated from forcign competition came thus to depend entirely on the relations between the inme supplies and the internal demand, and the price level could be kept liigher than in countries not so well protected. As an outstanding clample of such price autonomy, one can point to the prices in whieat in Germany, Francc or Italy. In all these countries, and especially in, Germany, the rates of general duties on wheat exceed or less sidirubiy tfic current prices of imported wheat in London and Liverpool, and other restrictions are also in force. In all these cases the wheat prices on the national market depend essentially on home supplies, and, unless there is over-production at home, they can be maintained at a level which makcs wheat-groting remunerative. Yet, it cannot be said that the policy of autonomous price formation has generally succeeded in Solving the agricultural price problem on the markets in which it has been applicl. Indeed, thongh the level of prices has been maintained on luiglirr liasis thinn in other countries, its gradual decline could not be prevented, and formers continue to suffer from falling prices. This general tendency of the prices of farm products to decline is the natural effect of the all-round diminution in the purchasing capacity of the masses of consumers caused by the general economic depression which is itself largely due to the disintegration of the world market into isolated national, economies ". Sir, it seems to me that from the facts that have been placed before us, ko may look forrard to a further fall in prices. Chairman,-I think we had better continue this discussion tomorror. The Conference then ndjourned till 10 O'clock on Saturday, the 9th June 1931. 2 40 I cannot dictate to a farmer what he should grow. If I insist, If I insist, then in case of failure, the responsibility is mine. Oilseeds is a new crop difficult to grow and much more easily affected by frost than wheat. The responsibility of insisting that the zamindars in Sind shall grow other crops rather than wheat-to the growing of which they have been accustomed for ages-is, in view of the prevailing prices and the uncertainty of the future, not one which any Government ought to undertake. Moreover, the carrying out of any such restriction programme is not practicable. With reference to the Resolution we will agree to the second portion that every effort should be made to substitute other crops for wheat. But as regards the stoppage of fresh stimulus to the expansion of wheat cultivation, if fresli stimulus means that the acreage under wheat is not to be increased, then we must respectfully object. Our Agricultural Department is, of course, placing facts before the zamindars showing the usefulness of various alternative crops. We are prepared to do all can to encourage more profitable cultivation, but we cannot accept the policy of restricting wheat. We might perhaps be prepared to agree that in the future no new schemes shall be undertaken which are likely to lead to an increase in the wheat area, it being clearly understood that new schemes do not mean full development of existing projects. we Dewan Bahadur T. Raghaviah.--The idea was the same as in the case of rice that no fresh irrigation project or fresh canal should be constructcd which will have the effect of increasing the area under, wheat. About the existing areas they could increase to their maximum capacity. The Hon'ble Sir Milcs Irving.-Punjab must oppose that. It has one or two projects that may possibly be taken up and they would inevitably result in a certain area being placed under cultivation, and the Punjab Government could not agree to an embargo of this description. Mr. J. H. Ritchie.Central Provinces is not concerned with this. We are not likely to start any irrigation projects. There is no irrigation project at all in the Central Provinces. The area fluctuates from year to year according to the soil at sowing time. Mr. P. B. Richards.In principle I support this ; but in the course of the discussion in the Sub-Committee, the question arose whether small minor projects were included such as the September flooding of comparatirely small areas in which rainfall was in defect. One would like to see such small projects excluded. Over precarious tracts, it is under consideration whether surplus canal water cannot be utilised to make good defects in rainfall in order to prepare them for wheat or other rabi crops. I would like the resolution to be a little less rigid if it is likely to exclude investigation or actual operation upon such comparatively minor areas. Sir T. Vijayaraghavacharya.—What is the limit of the minor area ? acres but as the resolution stands it precludes this. Mr. P. B. Richards.-It may be only a matter of 5 or 10 thousands Mr. B. C. Burt.--That is not a stimulus to fresh wheat cultivation at all. It is merely protecting the existing acreage.

41 more or con- Alr. P. B. Richards.-As long as that is understood I have no obje.. tion, Dr. W. Burns. We are on the horns of a dilemma. On the one hand the situation has been explained by Mr. Burt. On the other hand, we have the commitments of the Punjab and the Sind Governments which appear to indicate that there will be an expansion of wheat. I would like, to quote again, if I may be tolerated, the following very apposite quotation from an article by George Pavlovsky published by the International Institute of Agriculture in their Monthly Bulletin of Agricultural, Economics and Sociology :: “The prices of these products on markets so effectively isolated from foreign competition came thus to depend entirely on the relations between the home supplies and the internal demand, and the price level could be kept higher than in countries not so well protected As an outstanding example of such price autonomy, one can point to the prices in wheat in Germany, France or Italy. In all these countries, and especially in, Germany, the rates of general duties on wheat exceed less siderably the current prices of imported wheat in London and Liverpools and other restrictions are also in force. In all these cases the wheat prices on the national market depend essentially on home supplies, and, unless there is over-production at home, they can be maintained at a level which makes wheat-growing remunerative. Yet, it cannot be said that, the policy of autonomous price formation has generally succeeded in solving the agriculturalı price problem on the markets in which it has been applini. Indeed, though the level of prices has been maintained on lugher basis than in other countries, its gradual decline could not be prevented, and farmers continue to suffer from falling prices. This general tendency of the prices of farm products to decline is the natural effect of the all-round diminution in the purchasing capacity of the masses of consumers caused by the general economic depression which is itself, largely due to the disintegration of the world market into isolated national, econoinies". Sir, it seems to me that from the facts that have been placed before us, we may look forward to a further fall in prices. Chairman.--I think we had better continue this discussion tomorrow. The Conference then adjourned till 10 O'clock on Saturday, the 9th June 1934 2 L7EHL 42 PROCEEDINGS. Saturday, the 9th June 1934. The Crop Planning Conference met in the Members Room of the Legislative Assembly Chamber at 10 a.m., the Honourable Khan Bahadur Mian Sir Fazl-i-Husain in the Chair. Chairman.- When we adjourned yesterday the discussion was going on about wheat and the particular proposition, namely, no fresh stimulus should be given to the expansion of wheat cultivation in India, was under discussion. Objection was taken by the Punjab and Sind to that proposition and, if I am not mistaken, Bengal sympathised with that objection. It was at that stage that we adjourned. Discussion will now proceed from that stage. The Hon'ble Sir Miles Irving.–May I somewhat avplify the position as regards this case. The position of the provincial representatives in this conference is somewhat difficult, as we are not in the position merely of giving advice but have to guard against our Government being bound to that we say, and therefore as the Punjab Government may see some possibility of schemes for producing wheat in the future, it is impossible to agree with the proposition that no fresh stimulus should be given to the expansion of wheat cultivation in India. But we want to put our cards on the table about this very important question of Sind and, if you like, also the proposed additions to irrigated areas in the Punjab. Supposing the wheat supply is now stabilised and it is proposed to market in the near future a very large supply from Sind, it will obviously be a disturbing factor. The Punjab proposes also to construct other works as, for instance, the Bakra Dam capa), which might not add to the area of wheat but which would certainly help the pro. duction of it. The Bakra Dam will substitute for one cron in three years of 5 maunds per acre a crop every year bearing 12 maunds. Chairman.In that case we might reasonably reduce the area. As Barani, it would produce nothing but wheat, while, as irrigated, it might produce cotton as well. You are now talking of what will happen at least 10 years hence. The Hon'ble Sir Miles Irving.-I rather guarding myself because I could not get up and say anything which would commit the Punjab Government in any way. But I am naturally thinking of Sind which affects the Punjab very closely and also the other provinces in India to a certain extent. Chairman.-But the resolution is about fresh stimulus' and the interpretation put on it by the mover of the resolution was that in Sind the stimulus was given three or four years ago. The Hon'ble Sir Miles Irving. If that is the position, then, of course, the Punjab Government would say that we are helpless. We can only say that in order to meet the fallen price of wheat we should have to consider more remissions. Chairman.—Nobody, of course, could say that. At that time wheat export by India was operating. am 43 The Hon'ble Sir Ailes Irving. I aro not blaming abybody, ChairmanPunjab would have required a rich neighbour to exploit rather than a poor neighbour. The Ton'ble Sir Niles Irving. I am only explaining the situation. As a matter of fact, our view is that as there is already enough land under wheat, it is time for Sínd to think of something else. Chairman --That is exactly the question. Both the Sind speakers invited the Punjab to advise tliem if they could suggest an je better crop than wheat which was equally good and as easy to grow. The Hon'ble Sir Miles Irving. Our suggestion to Sind is oilseeds, They harc the market at their door. ClairmanThat is going to be discussed later on. The Hon'ble Sir Miles Irving. On the question of stimulus, if Sind is putting these fresh acres under heat, all we can say is that ve cannot bind ourselves as regards our future measures of retaliation. We understand Sind's case sympathctically but we also fecl that Sind non holds the position. By its action pow, in the next few years it will enormously affect the wheat crop and the finances of the country, and therefore pur liope is that Sind may find its way-even this Conference may find its ray to advise Sind to take up some other crop than wheat. Mr. 4. D. Gorwala.--May I ask the Honourable Dlemler from the Punjalı what measures be proposes we should take to compel farmers to Frow a particular kind of crop i Can he do it in the Punjab 9 The Ilon'ble Sir Miles Irving.--Now that you are giving out Government lands on conclitions under the Colonisation Act, in the same way as the Panjab. C'hairinan.--Colonisation in Sind is quite different frcni colonisation in the l'unjab. In the Punjab, by far the largest area belongs to Goverament and Government gives away areas or sells or leases. In Sind, by far the largest area belongs to individual proprietors The ITon'ble Sir Viles Irving. The position is very much the same as ours. There are probably no coercive methods; these are methods of nds ícc. I think it will be to the interest of the zemindar to cultivate pilseeds Also, there nrc the methods of water rates and land revenue rates mich inny to a certain extent give the stimulus. Vr, B. 5, Kamat.On the question of stimulus, I think this Confarver aught to be satisfied if after the word " stimulus We add some such works as :" but no fresh stimulis such as by ray of major irrigation projrets should be given to the expansion of wheat". The object of making ilis explicit is to prevent Local Governments from going ahead with large irrigation projects. Personally I think it is not worth while for this Confrrenee not to disturls the commitments whiclı Local Governments already Bare aceepitrd. Whether it is the Government of Sind or Punjab, it is Ispredlingly unfair to try to disturb those commitments and it would not be Srile in closer. So, thic holc object rould he gained if after the word stimulus " sc add, no fresh stimuls such as by way of major irrigation projects". 11 44 ; Rai Bahadur B. B. Mukharji.—There will be a little objection from the Bengal Government to that, Sir. About 97 jier cent. of our land only bears one crop. We are being charged lys various public bodies that the Bengal Government is not looking after irrigation. You may remember the great controversy which took place a few years ago in the Press in which Sir J. Wilcox took part. They definitely charged the Governmeiit, of Bengal with ueglecting irrigation in Bengal. I may inform this Conference that there is now before the Government of Bengal an Irrigation Bill by which it isc-sought to raise inoney from the public or from the land benefited and construct, irrigation works. The Hon'ble Sir Frank Noyce. You are not going to grow whcal under this ? Rai Bahadur B. B. Mukharji.-Not definitely. If you mean irrigation works specifically for wheat, I am prepared to accept it. But if you say, stimulus by way of all irrigation works", then I do not agree. If it. is intended that no stimulus should be given by constructing irrigation worls specifically for the cultivatiou of wlicat, I am prepared to accept it ; otherwise, it is very difficult for my Government to accept it. Chairman. May we have a statement from somebody as to what the prices of wlieat are in the chief wheat producing countries of the world ? Prices in Indian Currency would be preferable ; otherwise in English. (The statement was promised later on.) Mr. W.J. Jenkins.--Sir, with regard to what Sir Miles Irving just said, I should like to make it quite clear that we in Sind are definitcly attempting to grow substitute crops for wheat. I have the authority of my Goveritinent to say that they are prepared to co-operate with any scheme which would involve the substitution of other crops for wheat provided that these other crops are more paying. That is the most important proviso. Chairman. Or equally paying. Mr. W. J. Jenkins.We in Sind have very heavy obligations to meet, and we cannot assent to any proposal which is going to handicap us in meeting those obligations. I must respectfully point out that it is rather inconsistent for the Punjab representative to oppose this resolution on the ground that large irrigation projects in the Punjab may come to fruition in a few years and at the same time to ask us in Sind to restrict our area under whext. It seems to me that these are two points of view which cannot easily be reconciled. With regard to substitution, we heard from Sir Miles Irving yesterday that the area under whieat in the Punjab is decreasing [The Hon'ble Sir Miles Irving.-Proportionately.) It seems reasonable to suggest that it will be much more easy to substitute a crop which is decreasing than to substitute one which is increasing by leaps and bounds. We have heavy obligations to meet ; tre cannot agree to anything which is going to handicap us in mecting those obligations. Nr. A. D. Gorwala. May we know something about the retaliatory measures which the Punjab proposes to adopt ? The Hon'ble Sir Miles Irving-Perhaps that was not a happy word. I meant the construction of further irrigation schemes. The Hon'ble Sir Frank Noyce.--As regards irrigation projects, we are arguing an academic question. We are now dealing with an immediately :

45 urgent problem. If you undertake fresh irrigation schemes, they are not likely to be completed for 5 or 10 years and the position then may hare completely altered. Nr. A1. Vaidyanatian.-Sir, The Canadian wheat in Winnipeg sells at Rs. 2-1-9 per maund; in New York the price is Rs. 2-26 per maund ; in Australià it is Rs. 2-2-0 per naund. In Liverpool the present quotation is about Rs. 2-8-0. For Argentine, the figure not handy. Chairman. So far as the Punjab and Sind are concerned, their prices are below the price of wheat in any of these places. Therefore, the statement that the prices of wheat in India are being fictitiously kept up is not quite correct in the usual acceptance of that plırase. The only effect of the Wheat Duty Act is to protect Indian wheat from the onslaught of Australian wheat. But Australia does not sell wheat in Australia any cheaper than Punjab and Sind do in the Punjab and Sind. Australia has the au. vantage of cheap sea freight : Indian has the disadvantage of expensive rail. way freight. So, I do not think there is much in that. We are producing wheat more or less at the same selling price in the country as other countries. But dur situatio'ı 'and the vastness of the country do not permit of our being able to export. Now, what about this resolution ?" "Freshi stimulus should not be given to the expansion of wlieat cultivation". In a way, it is more or less an axiomatic truth. In other ways, it is binding Government from starting upon any venture as a part of which expansion of wheat area may be involved It may be considered as restrictive. Is it not possible for us to arrive at a formula which would serve the purposeWhat is our power over the provinces To give good advice. But till we have armed ourselves with the requisite legislative power, we coulil not force our 'advice on provinces. Can anybody suggest a formula which might serve the purpose ? Ráo Bahadur Norasimha Raju.-In the case of rice, the Conference adopted an advisory resolution for the provinces. I think the whole problem will be at an end if we adopt a similar phraseology in the form of an advisory resolution regarding wheat as well. Chairman. Will you kindly listen to this as a possible formula to serve as a basis of disccision ? That the present world conditions in the matter of wheat production and that the Wheat Import Duty Act is an annual measure (not permanent) are two facts which should be borne in mind by Provincial Governments which contemplate schemes involving expansion of the wheat area " that is, not schemes which are intended to increase it but which involve the expansion of wheat. As a matter of fact these are the only tivo factors which compel is to give this advice, first the world condition, and the second that the Central Government has to kerp this Import Duty Act going, which I think justify our more or less p10- minently bringing to the nctice of I'rovincial Governments this advice. Do you think any Provincial Governinent could reasonably object to it ! The Hon'ble Si- Miles Irving. I think no Governinent can object to being given advice. Rho Bahadur Narasimha Raji.--And increased production of wheat as ftell. Chairman. That wonid not be fair. That would prevent the activi. ties of the Agricultural Department. 6 46 Sir T. Vijayaraghavacharya.-That would be against scientific advance, Chairman..I take it that the Conference would prefer to substituto this for what we were discussing under this head. The Conference agreed. To this Resolution the statement of prices which has been given by our expert had better be appended ; and I trust he will be able to give us Argentine prices too. We are at page 10 of this Note. The next point is external markets and the Note says that there is no immediate prospect of capturing them. That I think is an accurate description of the situation. As to internal markets the matter has to be left as in the case of rice to the Marketing Board. As regards railway freights, the same observations as in the case of rice. Paragraph 4 of Part II of the Note. The Sub-Conmittee unanimously recommend the creation of a Standing Committee on wheat of the Advisory Board of the Imperial Council of Agricultural Rescarch on the same terms as those suggested for the Committee on rice. Auy observations on this, gentlemen ? Alr. W. J. Jenkins -I should just like to ask if it could be recorded that in view of the importance of wheat trade to Karachi a commercial representative from Karachi should be included on this committee. Sir 7. Vijayaraghavacharya.--It is a matter for the Advisory Board to consider. Chairman._I take it that the Conference endorses paragraph 4 of Part II at page 10 of the Note. This concludes the Note on wheat. But before we go on to the next item, I shall be glad if any member has to offer any observations on wheat in general. (No member had any observations to make.) Then we prorced to cotton, Part III of the Note. The Note says that the questions to be considered are two, namely, increase in the total area and the selection of varieties, and we are told that a Sub-Committee of the Indian Central Cotton Committee is engaged in pursuing these two inatters. So far as discussion on cotton at this stage is concerned, perhaps the Conference will be satisfied with this remark ; but I believe the Con. ference expects our expert in agriculture to tell us later on when the question of substitution comes what is the extent of area that he considers can be suitably brought under cotton during the next few years without impairing the prospects of a good price for cotton or at all events of the price that has been prevailing during the last two or three years. That is so far as the area is concerned. No doubt the cotton committee is pursuing the question of selection of varieties, but perhaps Mr. Burt will tell us what stage these enquiries have reached. Mr. B. C. Burt-Well, Sir, the Central Cotton Committee set up a Sub-Committee to discuss this question in consequence of the temporary boycott of Indian cotton by Japan and decided that it must go.011 and see whether it is possible to make India less dependent on one single large buyer. The Committee has met and has made two specific recommendations so far--hoth of very considerable importance. One is that every effort should be made to extend the medium staple type of cotton known as Verum in the Central Provinces. That is a cotton produced as a result of one of the Central Cotton Committee's own research schemes. It has 47 arta already proved successful both to the cultivator and to the Indian mills, and what is required is a greater effort to extend this cotton in all suitable areas in that province That is a recommendation with which the Central Provinces Agricultural Department ale in complete agreement and every thing possible is being done The second important recommendation which the Sub Committee made was in iegard to Sind It was to the effect that a special long staple cotton are should be der eloped in Sind Sind has alwa's been spoken of as a potential long staple cotton area and the Indian milly very badly need a greater supply of staple cotton which Sipd could profitably pro vide Tue c'ommittee recommended that some such ds would produce about 300,000 acres annually of cotton (which would produce under Sind conditions about 1,50 000 bales) should be reserved for long staple cotton growing I think I am correct in saying that the total area to be brought under cotton on the Barrage 15 about 7,50,000--not quite so much as that That recommendation 18 at present under the consideration of the Sind Agricultural Department and Mr Jenkins can tell us that there has been a very considerable progress already in that direction Those are the two reconamendations which the Committee has made up to the present and they are further considering the matter (Honourable Sir Prank Noyce Who will buy the cotton ? The Indian mills mostly ?) The cotton will be suitable both for the Indian mills and for export to the United Kingdom Ar W J Jeni ins -—Before we leave this question, I should be to know whether it will be competent to suggest to this Conference a iecom mendation to the Government of India tliat an amendment of the Cotton Ginning ind Pressing factories Act should made whicn will enable the licensing of ginning and pressing factories to be introduced in such pro incos as consider that desirable in the interest of the extension and market in of better cotton We in Sind are making a big effort to grow cotton which is at present being imported into India from abroad and we feel - and I think evci prouince which has the matter at heart will feel—that such a measure will go a long way to help us When the Cotton Ginning and Pressing Factories Act was passed this enabling clause was omitted I llunk conditions have changed since then and the opposition which was cvident at that time would not be so strong now There are a large number of ginning factories in Sind and still more are being put up (Chairman Are they of more than ? scars' standing ?) About three fonths of them are old factories The position is changed in Sind The Sind Cotton Committee is to moct on the 14th of this month to decide whether the time las not arrised to stop the construction of new ginping factories on the Barrage arcas The lIon'blc Sir Tranh Noyce-Your View would be that the licensing of ginning presses is an cssential factor in improving the market. ing of cotton Ar TV J Jenkins - Yes Sir T, Vijayaragharacharya —The Central Cotton Committe.lias ut rends macle that recommendation Tlie recommendation not under elimination in the Commerce Department, the Department of Education, llealth and Lands and the Imperial Council of Agricultural Research is 48 Chairman.-That is satisfactory. In my province there are ginning factories like Rest Houses at a distance of every 10 miles but many of them are not working ! Chairman. Next we come to Jute. Part IV of the Notc. Do you like to say anything, Mr. McLean ? Mr. K. McLean. I have nothing to say. The Report is under consideration of the Bengal Government. Chairman.-The other provinces are not interested in it. We might leave it at that. Next we come to oil seeds. Part V of the Note. These have been dealt with under four heads.-A. groundnut and castor ; B. linseed ; C. rape, mustard sesamum and cotton seed, and then again D. linseed, castor, groundnut rapeseed and sesamum oils. As regards A. groundnut the recommendation (a) at page 11 says " That this Sub- Committee recommends that the Government of the United Kingdom be approached with a proposal to impose an import duty on all foreign fats, oils and oilseeds which compete with oilseeds produced in the Empire". Does not anybody propose to make any observations on that ? No need for placing any restriction on its cultivation, but that there might be room for cautious expansion'. May I ask what is the quantity of groundnut exported ? In what quantity do our experts think groundnut can be further exported without reducing the price of the groundnut already exported ? Mr. M. Vaidyanathan.--Tlie actual quantities of exports of groundnuts from India were Tons. 1929-30 714,000 1930-31 601,000 1931-32 672,000 1932-33 433,000 1933-34 546,000 There is increase this year over last year's. Chairman. What have we been doing with the balance ? Have we been producing enormously ? Mr. 11. Vaidyanathan.-The estimated yield in tons in groundnut has increased from 2.7 million tons in 1929-30 to 3.2 million tons during the current year. Chairman.. The Committee reports that there is no need for restriction, but there is room for cautious expansion. Will Mr. Burt kindly. explain ? Mr. B. C. Burt. The internal market for groundnuts in India is extremely important. The internal market for the oil is expanding, and groundnut riil is the one oil which is being used by all the new hydrogenation plants which are producing Vanaspathi Ghee to replace imports of fats and other kinds of vegetable ghee. After going into the trend of exports and the increasing demand for internal consumption we came to the conclusion that there was room for cautious expansion, especially in those provinces where the groundnut area is not very large, and where it is very desirable as a rotation crop. Chairman. What would you place the increase in output at ?

49 to be M1 BC Burt-I don't think we can commit ourselves to ugures yet Chairman-If you are going to give advice to provinces to go ahead and incrcase the area under groundnut, jou cannot say that you are not prepared to commit yourself to figures How do you expect thc pro inces to commit themselves in giving advice to the cultivators ? M BO Burt -The position is this The two provinces which are 1eally dependent on the esport market are Madras and Bombay 1 lie Central Provinces, for example, the third greatest groundnut growing province, consumes the whole of its groundnuts within its own borders for ci ushing oil, and it finds no difficulty in marketing its oil Incidentally I might mention that there is an expanding export of groundnut oil Chairman -I do want the conclusions of the conference definite enough to enable the provinces to act on them Dr 1 Burns -I may state, Sır, that to give advice in such detail it would aequire a very much longer period of consideration than we have been able to give to this question, and also a great deal more consul tation between the provinces themselves I agree that it is highly desirable at the present moment that we should merely indicate the general duections in which the expansion could take place The espansion actually in the two provinces mainly concerned, namely Madias and Bumhay has been encouraging In Bombay in the year 1900 there were only 50,000 acres, whereas now there is about a million and two hundred thousand acres under cultivation That figure has remained fairly steady since about 1929 When groundnut does not pay, cotton tends to tako its place, and when cotton does not pay, groundnut tends to take its place But undoubtedly there are in many places lands which can le put under groundnut cultivation if the prices remained steady The price has gone down, but it has not gone down to such an extent as to discourage people altogether from going in for groundnut cultivation I understood from the papers that this year there had been a seduction in the area in Madras That apparently is a mistake, because the figures have shown to us that there was no such reduction The press m fact went the length of saying that there had been 50 per cent reduction in oine areas, but as far as I could sce, speculation in this groundnut business affects the markets very greatly, because I have before me a letter from a banker which says that he is having a lot of worry just now owing to violent fluctuations in the price of groundnut Therefore if we have the prices jumping about so violently, growers of groundnut can't say where they are This is a factor which we have to take into consideration Apparently there is no falling off in Madras supply There is very little falling off if any in the Bombay supply, but we are not in a position to recommend restrictions, nor are we in a position to recorrmend exactly how the expansion should proceed The Hon'ble Sir Frank Noyce --Could we not ask the Agricul tu al Research Department to work out something more definite in con sultation prith the provinces ? Su T Vijayaraghavacharya-As a matter of fact, all these subjects are taken up The Hon'ble Sir James Gogg--I was very struck by a remark which fell from one of the speakers who said that the ryot is quite prepired to L77EUIL 50 grow cotton when groundnut does not pay, and to grow groundnut when cotton does not pay. That seems to indicate that the ryot knows his business quite well ; if only he can get the information quickly enough, he will be able to take the necessary action in time. The key to the situation is to give information to the ryot quickly enough. Sir T. Vijayaraghavacharya.- We are setting up a Bureau of Information. Chairman.--That is why I am afraid of a recommendation like tñis going out saying that there is room for cautious expansion. The person who is to derive the benefit may say. Well, I am only adding a hundred acres ---that is quite cautious'; but if many hundred people do that, then the word ' cautious' loses all its value. Mr. H. M. Hood. With regard to groundnut in Madras, I think I am right in saying that there has been no material reduction in the area under cultivation. We have been told several times that the quality of groundnuts in Madras is inferior, when I inquired of the merchants, they said that they did not think that the quality had deteriorated, but still something might be done to improve the quality of the groundnut. The decortication of groundnut leaves something, to be desired, and something might be done to see that there is no falling off in the quality of the decorticated seed. Sir I', Vijayaraghavacharya.----We are setting up an Oil Seeds Conmittee which will deal with all these subjects, and we intend cons onsulting the Madras Government about the constitution of this Committee. Mr. H. M. Hood.-But the important question to be remembered is the question of depression in prices. I do not know whether anything can be done with regard to European markets, whether any action by the Government of India is likely to have any effect in regard to the restriction that has been placed on the import of groundnuts into, I think, France and Gerinany. Chairman. What is the percentage of produce that is actually exported to France and Germany ? Mr. M. Vaidyanathan.-Out of a total export of 433,000 tons in 1932-33 roughly 50 per cent. to France and 11 to Germany. Chairman.--I was asking what is the percentage of produce that is actually exported, and I find about 20 per cent. of the total yield is exported. About 80 per cent, is consumed in the country. Mr. A. M. Livingstone. There is an excellent Report on the groundmut position published by the Imperial Economic Committee in London. That shows that the consumption of groundnuts has decreased very largely in recent years largely owing to the utilisation of other substitutes for vegetable products, and particularly the use of whale oil, which is very largely used for making margarine. It has the power of absorbing and retaining a fairly large percentage of water, and so margarine manufacturers have been using whale oil instead of vegetable oil. The decrease in consumption of groundnuts, according to the Report, apparently came to an end in 1932, and actually tlic consumption of groundnuts in Europe in 1933 showed some increase. The Imperial Economic Committee come to the conclusion that there are other favourable factors apart from this siderably with the price not only of cotton but of groundinut itself. This :51 increase in consumption in 1933. They point out that the policy of several European countries is intended to raise the prices of their animal fats. such as butter and so on, and that if the price of butter is in any way put up they anticipate that the price of margarine will rise at the same time, phich should assist in increasing the consumption of groundnuts and prohably improving the price. They draw attention also to the possibility of groundnuts being used in some other ways. But they are very cautious in their conclusions, and therefore the Sub-Committee thought that they should be cqually cautious when making any recommendation to the provinces. Apart from this world position the provinces slıould have regard to what they think is going to be the consumption within their own borders in the way perhaps of having more mills and increasing the output of the mills. They should take these factors together wlien deciding how far expansion of the groundnut area should go. Chairman-What was the total area under groundnut last year 9 Mr M. Vaidyanathan.-8.1 million acres as compared to about 6 million acres before the depression, Chairman.On the facts within your knowledge, if you were owner of 8 million acres and another 2 millions were available how much of those two millions would you bring under groundnuts Nr. 4. A. Livingstone.--I would wait and see if prices will risc. Ur. E. C, Burt-May I refer to one remark which Mr. Hood made ? Wher we were discussing the question in Sub-Committee the original proposal was that except in Madras and Bombay there was room for cautious expansion and on further consideration Madras and Bombay representatives considered that they should not stand aside because in Madras it was considered that the area would automatically react to the price and a similar bffect would be likely in Bombay whereas there was legitimate room for expansion in other provinces. That is why the recommendation is in its present form. I would like to support the suggestion as to the need for more time before we can make any further recommendation, Chairman. For the present we cannot really advise people to bring more area under groundnut ? DIr. B. C. Burt.-We cannot place a figure on it. We might put it in aregative way that in the Central Provinces which has been specially mentioned, where they are already increasing their groundnut area there is no reason for them to hold their band. Mr. J. A. Ritchie. Our policy in Berar is to recommend groundnut as one of the rotation crops for cotton. As a result of the Botanical scheme financed by the Indian Central Cotton Committee we have found cotton with groundunt and jovar ip rotation gives an yield of nearly double the quantity of cotton. We have therefore been advocating this rotation to the cultivators and the area has gone up during the last ten J'ears from 10,000 acres to 185,000 acres. I should like to see the ground nut crup reaching an nereage of 2 millions in Berar. I asked the Sub- Committce what effect this would liave on the general situation; e came to the conclusion that for the sake of cotton it is best that tre should go ahead. But the area under groundnut will fluctuato very that and 52 conyear I think the groundnut cultivators made more out of groundnut than out of cotton with the result that there is likely to be a very big expansion. So far we have been in the position of being able to absorb and consume all the groundnut we produce. More groundnut comes into the province than goes out. I should like to have the approval of this Conference to the policy of extending groundnut in Berar. Chairman. We proceed to castor seed. The Sub-Committee sidered that the position was satisfactory and that there was room for its development rather than for its restriction. Here again is it possible for us to say what is the extent of expansion that we visualise, or is it that we do not visualise the extent of expansion ? Mr. B. C. Burt.--Castor seed is a crop which is bound to proceed slowly. It is only in a comparatively small part of India that it is grown as a main crop. The critical factor in expansion is the demand for high grade Inbricants and what the Sub-Committee had in mind was that the position in regard to the demand for castor oil for high grade lubricants should be very carefully watched. This is almost an Indian monopoly. But there is keen competition of course from petroleum lubricants and it was considered important that the supply should be maintained and that development should be very carefully watched. Chairman -We are not in a position to tell the authorities that they can add so much. Mr. B. C. Burt.-No, Sir. The Committee required more time to come to a conclusion. Sir T. Vijayaraghavacharya.—There is the Oil Committee. Rao Bahadur Narasimha Raju. I wish to know how the prices of castor seeds have fluctuated during the last five years. Mr. II. Vaidyanathan.-Before the depression it was Rs. 6, and now it is Rs. 4-10. Dr. W. Burns. I trust that the Oilseeds Committee which is to go into this question will seriously consider the future of castor oil as lubricant. We were told the other day in the Sub-Committee by Mr. Tait that it has the great advantage of not mixing with petrol and that this was the only oil for certain aero engines of the rotary type. If it is linked up with aviation there ought to be a big future for it, and that particular point shonld be looked into by the Oilseeds Committee. Chairman. We pass on to () of Part VA. It was pointed out that there had been great increase in the export of groundnut oil, especially to the United Kingdom after the grant of Ottawa preferences and that the question of stimulating the industry might be left to the Indian Oil Crushing Industry Committee. That does not give us any lead for the prescut, Mr. B. C. Burt.--In a further part of this report we deal specifically with the subject and there are some recommendations as to the means by which increased export should be possible. Here we are only dealing with it as part of the groundnut problem. Sir T. Tijayaraghavacharya._-It comer under General.

53 5 Chairman --Therefore under the head A of Part V, Groundnut and Castoi, the definite arit nfirmative concinsion is that the Central Provinces is proceeding with a certain expansion of groundnut and that it may do so That is all V+ BC Burt -- There are other provinces which grow groundnut on a small scale, Chairman-I did not say that they did not I said that the affiimative conclusion is only this in the matter of expansion Air B C Burt ---To the extent that we are not yet ready to put forwarii Egures Chairman Part V B Linseed The large increases in the exports of Innseed to the United Kingdom since the grant of Ottawa preferences were pointed out and the Sub Committee emphasised the need for estending tlie cultivation of linseed in India, especially of the improved vaijeties It was also agreed that the favourable position in regard to linseed should be made widely known amongst cultivators and merchants. May we have some facts about linseed? What is the area under cultivation and what is the output j[r BC Burt I have here the area for the production of linseed for a series of years In 1933 34 the area was 34 million acres and the estunted yield was 377,000 tons In the previous year the area was prac tically the same with a production of 406,000 tons The export in 1933 34 1s 379,000 tons, and in the previous year it was 72,000 tons Chairman --How much room, in your judgment, there is for more exports Ur B C Burt — There is a regular market for export for 400 000 tons and there is internal consumption of 200,000 tons in round figures So that we can do with 600 000 tons of linseed which on past records would mean an addition to the area of about 2,000,000 acres Charrman-Is that the conclusion with which the Sub Committee have agreed ? Mr BC Burt Yes Chairman-Which are the provinces in their order of importauce that actually produced linseed last year? III BC Burt --The Central Provinces is the most important province Other provinces are the United Provinces, Bihar and Orissi and Bengal Hyderabad State is also important Charman_Then it really comes to this that the Central Provinces, United Provinces, Bihar and Orissa and Bengal can go ahead an adding to their areas by about 50 per cent, leaving a little bit for other provinces I think that is a fair statement to make Dr 1 1 Mceh --In this connection I would like to mention one point I do not wish to discourage the view that there is a possibility of 20011 tride in linseed, but it must be remembered that the only competing country is Argentine and for the last two years they love been linuing very poor crops Therefore, this large expansion in our esport Inight 54 have been influenced to il considerable lauree by the poor crop in tine. Thai factor should be borne in mind while giving advice for c'spansion of linsecd. Ir. B. C. Buri.Perhaps we ought to give the basis on which arrived at 100,000 tons export. The United Kingdom for many years las arcra ed an import of over 300,000 tons of linseal. Last year il shown that our preference was sufficient to enable us to practically chule other linseed from the l'nited Kinglom market. We have a 10 l'ent. preference. There is also a fairly stearly market on the conting vi in America for Indian linseell for pale linseed oils. Then there is to internal consumption of at least 200.000 tons. Chairman.-Now, we come to Part V (C) Pipe and mustarıl, esamun (ind coiton scor. Oz! page 11 Sub-Committee says : So far as foreign exports were concerned the resolution referred to under A (a). Groundnut--woull cover the case of these oil seeds. The question of developing internal markets should be left to the Indian Oil Crushing Industry Committee of the Council.” So, there is nothing definite at present about it and we had better leave them alone. Part V (D) Linseed, castor groundnut, rapesced and sesamum oils.- The Sub-Committee says : “ Complaints had been made by merchants in Bombay that facilities for tank wagons on railways and tank accommodation 01 steamers and facilities for storage of these oils at the Indian seaport were lacking. Mr. Tait.-When this question was brought up before the Sub- Committee, I said that it would be gone into. So far as the complaints regarding the tank wagons are concerned, I brought this matter to the notice of the Railway Board and it is now under their investigation. At the same time, it would be of assistance if Mr. Burt could let us have some indication as to what the extra amount of these oils would be for which tank wagons are required. If he could do so, it would help the matter materially. Mr. B. 0. Burt.-I can give those data later on and also the figures supplied by two merchants as to what they expect to do if these facilities re provided. The point which the Sub-Committee had in mind was that should take advantage of the Ottawa Preference and export more roundnut oil to various Empire countries and the two the two merchants in ombay have given us their observations as to what they expect to be able do if they get these facilities. I will send them to Mr. Tait later. Rao Bahadur C. Tadulinga Afurlaliar.—May I know why the Safflower vhich is very largely edible in the Tinnevelly and the Deccan districts ot included in the list. Sir T. Vijayaraghavacharya.–From an All-India point of view, it is small crop. hairman.-We now come to Part VI. Sugarcane. Is any member Conference who was not a member of the Sub-Committee desirous ining any information under this head ? P. B. Richards.The danger of over-production of sugarcane was d in the Sub-Committee, and from the point of view of the largest g Province, one is naturally interested that there should not be which was for crop planning on an All India basis, and personally I Chairman I quite igree with you that these two principles are more Nar Bahadur BB Nath larji - So far as Mr Richards' observations fo, I feel that we cannot reallt nccept the statement that one prouinct and Bengal te hare bern rather hinrd hit by the absence of a money crop and, 55 such an expansion of the sugarcane aica in Provinces which previously have not been sugal producers, as to endanger the market Judging from the white sugar impoits, it would appear that saturation point is rapidly being reached 'The difficulty which was instanced in the Sub Committee about making any specific recommendation was that we lind no micasure of the amount of gur nhich could be consumed at economic prices That must be admitted It is, however, to be hoped that the Sugar Committee will give their very crreful consideration to the matter and endeavour to estimate as closely as possible the cconomic off take both in gur and in sugar, and, as a result of that possibly at some later date will be able to miche recommendations to Provinces that they should bi titremely cautions in stimnlating the production of sugarcane lest the quantity produced should be more than India can consume Chairman ---We are producing onl: the quantity which we will our selves be able to consume Mr P Richards That is the case at present, but I understand that the quantity of white sugar imported into India Chairman --They may not make any more sugar than they required. ar P B Richards But if cane is grown in excess of the require- Inents, then the bottom must drop out of the general cane or gur market Chairman --If the unit be a province and if a province does not produce inore sugar than it requires, then will you say that it should not produce even that much ! Mr P B Richards --The sugar produc ng provinces of India are and apprrently always have been the United Provinces and Bihar and Orissy, Wc depend largely on our sugarcane Niew the problem first from the point of view of our own cultivators, and It is but natural that we should be perturbed when other Pro inces espress their intention of becoming self sufficing Should there be over production, it will equally hit the new producing provinces ard reduce the value of the sugarcane crop every where Chairman --That is perfectly true brings is very arutelt to But the position you take up marnely, that each prouince should be ear marked as especially fit for pro the great principle underlying it, duction of certain erops which it should grow and develop and that other prouinces as far as possible should not trespass upon it if it can be helped Mr P B Richards - The poliey of self sufficiency seems to me to Tea counter to the fundamental idea for which this Conference greatly deplore the attitude that has been taken up any restrictions full, watched in view of the future information as it becomes available I would only request that the position should be care in prouince alone should grow a particular cror was I do not press for or less mcompatible You are an are that in 56 2 jute having gone down, we are experimenting very seriously as to what its substitute should be. So far our experiments of sugarcane have been found to be satisfactory. Secondly, you are aware that the main crop of Bengal is aman paddy. It has been calculated that it does not take more than 92 days for a paddy cultivator to grow this crop and therefore the problem with which we are faced now is to find work for our widely 'extended cultivators who are not getting sufficient employment for the rest of the year and the sugarcane industry is a thing which we are aiming at. As regards the point that we have met here only for All-India planning, · I am afraid I must protest with great respect against merely considering that. Provincial autonomy does not mean that we should be left to be guided in all our internal matters, even in the matter of the consumption of our foodstuffs and the growing of foodstuffs in the interests of somebody else. If I am quite fit to grow a crop at least to the extent of my home consumption, I must be permitted to grow that crop. I am perfectly prepared to go with my friend in all his helio-centric activities but I am afraid if I am rigidly restrained in details the fundamental basis on which the federation of autonomous provinces can develop will go. Dr. W. Burns.—The position of Bombay with regard to the extension of the sugarcane is that up till the imposition of the import duty on sugar which has stimulated the production of sugar in India, the Deccan canals were largely dependent on sugarcane being produced and that question has been before the Bombay Government and has also been the subject of consideration by other bodies for a long time. Mr. Kamat here was on a commitiee which specially considered the position of the Deccan canals. Since the imposition of a tariff which has made it possible to develop sugar production in India, five more factories have sprung up in that area and there are now six where there was only one before and it is vital that there should be no restriction in the development of areas where factories may be set up. The supply of sugarcane to these factories is likely to increase. The increase, however, is not such as is likely to affect the general position because our area as compared with that of the United Provinces and Bihar and Orissa is comparalively small. At the moment the area under sugarcane is 67,000 acres, so that even if that were very largely increased, I do not think it would affect the general position in India. I merely wish to emphasize the position of Bombay with reference to its own sugar mills and the necessity of not restricting the supply of sugarcane. Mr. D. R. Sethi.-I should like to state the position of Bihar. I endorse the remarks of Mr. Richards and I should only like to sound a note of warning to neighbouring provinces which are wanting to go ahead with sugarcane cultivation. It is for them to consider whether they can produce sugarcane as cheaply after the period of protection as we in Bihar and the United Provinces can do, Rai Bahadur B. B. Mukharji.--You are aware, Sir, our country was formerly known as “ Gour” because Bengal was the supplier of large quantities of gur to the rest of India, and there is obviously no reason why We should not go back to our“ gur status, Mr. C. R. Pawsey-As far Assam is concerned, we have very large areas fit for sugarcane and applications for large areas for such as 57 purposes are I believe going to be made and we should morlike to be restrained Chairman --There is no attempt under these few inoffensive lines to iestru n anybody We shall pass on to Part VII-Tobacco The Hon'ble 8n l'an) Noyce - I wonder why the tobacco area is not responding more largely to prices Tobacco is the one crop the price of which has fallen less than in the case of any other crop One would liave thought that in those circumstances it would have been substituted for other crops to a much larger extent than it has been Mr BC Burt--Largely, I think, because of the amount of capital involved in tobacco cultration compared with other crops and to lack of incentive to a larger turn over It is rather a specialised form of culti vation and without much propaganda by the Agricultural Department I do not think there would be any great incentive to increase Such a large proportion of our present procluction of tobacco is consumed mainly in the country that the future lies mainly with the home market This is a matter which the Sub Committee is going to consider Chairman --The Sub Committee considered there was ample scope for expansion of the arer under tobacco of the light type The bulk of the tobacco produced in India is consumed in India itself ind it is heavy What India requires, it is said is to develop the light type of tobacco which is suitabic for cigarettes Dres that imply that the Committee would lihe India to consume cigarettes insterd of the old conservative liochuh ! ar DC Rurt - What the Committee had in mind was that there were Inry, inports of cigarettes and also large amounts of foreign tobacco for manufactung into cigarettes We can profitably grow that for ourselves and we can also profitably cyport cigarette tobacco Chairman-Tins is what I sint figures of What is the quantity thint you want to displacen I presume that that is the quintiti wluch is here discribed as afforcing ample scope 9 Ir 1 r Burt - tlunk tlic import of tobacco of the cixurette type comes to six million pounds per annum rc llon'bic S1 Franh Noyce How many acres would be required to grow tint in India ? Can you gue the averige ? Mr BC Burt-I do not think we can give that safely as the present icraços relate to hears to acco Tlie Committee will investigate it (thairman-There is some light type produced 1 Jr 11 ( Burt Yes that is mentioned in the printed not on tobacco 'There has been very mucheri increase in fluc curing barns which are pentinl to the light type In the Guntur district in Vadras it was eight hundrei all during the last fex rers in the Saharanpur district of the Unitel I'rovinces it was sitti, and something like fifteen in Vorth Bihar Choirinan -One would like to have some information, honcierforeral at mnt In Ir }} C Burl The immediate score is the replacement of six million pounds of imported Int and cach prouiner on calculntc from its own yield L77UNL 58 of the area. It would not be safe to give any figures at this stage because all these returns are on a quite different basis, of the leaf imported. Rao Bahadur Narasimha Raju. I calculate for the heavy type of tobacco about a thousand pounds per acre--from the experience of ryots in the Guntur district, and, if six million pounds were imported, I would say a lakh of acres '. Chairman.--Which are the light type tobacco-producing provinces ? Rao Bahadur Narasimha Raju.—The Guntur district, for instance. Dr. W. Burns.--Bombay has possibilities of becoming such. Mr. K. JcLean.--We are just starting light tobacco--inust of the type now grown is heavy. Az. B. C. Burt. There is also an important opening for exports. The United Kingdom imports about three hundred million pounds of the cigarette type from foreign sources of which we might easily get a reasonable share. The Hon'ble Sir Frank Noyce.---The consumption of tobacco in India is also increasing--and of cigarettes ? M2. B. C. Burt Yes. Chairinan. It can only be at the expense of the heavy type, because we all hope that the habit in India as a whole will not continue. Dewan Bahadur T. Raghavial. There is scope for expansion of the tobacco cultivation ; so the new type of cultivation need not replace the existing heavy tobacco. Chairman.-After all, it appears that so far as crop-planning is concerned, ten thousand acres or fifty thousand acres one way or the other are important but they won't make any very large difference. It is a very small crop. Part VIII—Fodder Crops. Dairy products. What are they ? Col. A. Olver.-All kinds of dairy products. Mainly liquid milk, butter and ghee, condensed milk, and infant foods of which large quantities are imported, but also condensed milk is sold to a considerable extent in canteens : not only is it used in the army but also by the civilian population. Villagers in Madras use considerable quantities. Mr. A. McKerral.-Condensed milk is also very popular in Burina, which consunes very large quantities--about thinty lakhs. Mr. H. M. Hood. It would hardly do to put an import duty on the large quantities of milk and milk products that are being introduced into this country until the milk supply in the country is very much increased and improved. There is nothing to take its place in South India and it will take many years before the milk supply increases. A member. There is already a duty of 30 per cent. ad valorem ? A member-That is a duty for revenue purposes, not a protective duty. The Hon'ble Sir Frank Noyce.-Surely it has a protective eifect also ? Col. A. Olver.--The duty at present is 25 per cent. of the taritf value, viz., annas fourteen a pound of butter. This duty is, however, roughly.

59 counterbalanced by the exchange position in New Zealand and Australia vis-a-vis this country. Moreover putter imported from Australia has an additional advantage in that a very substantial bonus, averaging 3.30. per lb. during 1926-1933, is paid on every lb. of butter exported. The Hon'ble Sir Frank Noyce.--That cannot last. Col. A. Olver.---That is the position at the moment. We do not require a heavy duty at all. This country can produce butter fat to compete in the world inarket given proper organisation of the dairy industry. At the moment the market in the big coastal cities like Calcutta, Madras and Bombay is seriously affected by the exchange position, but the total Talun of the milk and dairy produce that comes into this country is less than a crore of rupees. The total value of the dairy produce consumed in the country, lotever amounts to 5 to 6 crores, so that the cffect on the feeding of the people of a protective duty would be nil. On the other hand there is unlimited. milk all over the country which could Isc markuted if the industry were properly organised. It is very largely a question of transportation to the markets througlı collccting centres and a proper marketing organization. There are a few instances of dairying organisations carrying on a profitable business within a certain limited area in the vicinity of mofussil towns, but the trouble is that the whole of this milk has to be produced within 10 or 15 miles radius. In a moulern factory at Anand a private company is now producing large quantities of dairy produce on the latest principles and is able to sell tinnel butter all over the country at 12 annas a pound. The Ilon'ble Sir Frank Noyce.-As against a price of 14 annas imported : Col. 4. Olver.--Australian and Nerr Zealand butter is now imported into Bombay at 10 annos a pound, c. i. f. not including duty. Dr. D. 7. leek. The average wholesale price last year was 14 annos a pouni cxclusive of duties, that is thic tariff valuation, Col. A. Olver. There is also German butter coming in, but it is adaltcratcil. This butter is being sold in Bombay to-day at 9 annas a pound but it is an adulterate product and the effect of that on the feeding of the people must be bad. There is one point I should like to mention here, We have definite evidence that if indigenous Indian cours are well fod and manngel, it is not difficult to increase their milk production loy 61 per cent, and that the cost per pound will fall steadily with the increase in viell. I will give one concrete example and that is the dairy at Muktesar. There in a little over a year, the nverage milk yield hoe ixen maised from 8.7 to 14.6 lbs. per diem and the cost of production lias follen ty 46 per cent That is the kind of thing that can be clonc in this country with proper organisation. Ally rien is that dairying should he developed in India not hy trying to start big niris entircir as a separate indlustry but by developing dnirying in villnes is a ty.industry in conjunction with agricultur, We were given a xxl sample of what conlil lie done yesterday ulien we were told thint the yielil of cotton could be double by growing alternate crops of around mut much I de sine sre trhy this could not be done in the case of daiņ povinen if frulder crors, particularly leguminous fadder crops rerr fun in conjunction with such crops as entton and fround-nut, the coffracsni anil kmund.

60 nut cake being fed to dairy cattle as concentrates. It then becomes a matter of organisation of collecting centres in order to bring the milk to the satisfactory markets. Mr. H. M. Hood. The whole of your argument is that a cluty is unnecessary. May I ask whether that is actually your contention ? Col. 1. Olver --No. My argument is this, that an import duty would mainly affect the big coastal cities such as Calcutta, Bombay and Madras which are the cream of the market. Elsewhere the industry could hold its own. What is required there is to reduce the heavy transportation charges to the cities and to prevent adulteration. If you want people to put money into dairying enterprise, they require security. They require security that the industry will be protected from what now amounts to Numping and from adulterated products. I have information that the present price of hutter fat in New Zealand is not an economic price. Col. Matson who has made a special study of this subject for many years and who is not engaged in commercial dairying in New Zealand is my authority. The fact is that at present no one will be anxious to put money into up-to-date dairying unless there is some assurance of stability. Chairman. It is perfectly true, but at the same time it appears that the resolution as framed is not agreed to by all the members. Some members : No. Nr. A. McKerral.-The total All-India import of milk and milk products is of the value of 1.17 crores and of this Burma takes .47 crores or very nearly half. The Burmese people being Buddhists by religion do not, generally speaking, drink cow's milk nor consume the products of milk, but strange to say they have no objection to certain milk products and consume large quantities of imported condensed milk and milk products like Glaxo. The duty, if imposed, would, therefore be sure to meet with considerable opposition in Burma. Chairman.Does it matter to them where the condensed milk comes from. Would they refuse to take it if it did not come from Canada ? That will only mean that the Burmese on account of religious sentiment will not he able to benefit from this change. Mr. A. McKerral.That is so. Dr. W. Burns. Would Col. Olver tell us whether it would help the Indian produce if duties were imposed in advance of legislation to safe. guard quality ? Chairinan. That is exactly what I was going to say. The Resolution as passed iſ read a little carefully appears to be open to some criticisia, while a great deal can be said for it. It says that this sub-committee recommends that a protective duty be levied upon all imports of dairy products which are or can he produced in this country. It does not say what the extent of that duty is. Government cannot possibly take action on this unless there was a regular impartial inquiry into the matter. At present Col. Olver has certain information which has doubt been derived from a certain set of people. Other people may have information from the other side. What the Conference can reasonably expect Government to do is to make an inquiry into the matter through the usual agency of the Tariff Board. First we will have to see whether there is a case for no 61 1 1 protection or not. Is it worth while doing ind if so what does it actually man Does it mean a light duty oi a heavy duty, and if so, for how long? Therefore if yon simply ask is to impose a protectise duty, it will not be really business like What it really amounts to is that it is a case for examination and no more If the Government gets the results of an impartial inquiry by the Tariff Board then they will be in a position to arrive at a decision If this vies meets with the approtal of the Con ference then the recommendation can be modified easily to accord with that vier What does Madi as thik ? M, H 1 Hood - I entirely agree w til you Rai Bahadu B B Mukherji -- Yes Chairman --Then shall we take it that this Resolution is passed ? Nr An Gorwala --Is it not necessary that there should be an infant industry to protect before we adopt such protective mea uus ms are intended in this Resolution ! At present certain articles are not produced and vet tle imposition of import cluties on them is suggested The Hon'ble Sir Franh once the propose that an enqury should be made into the extent to which there is an industry Chairman-Our industries are at present in the shape of butter pro ducing industries We can modify the Resolution in this way “This Conference recommends that the question of protective duty on all imports of du products be examined by the Tariff Board Part II ruts and pogotublas lencluding roots) Chairman --The suh committee has recommended " that at the present moment all the provinces are making special efforts to extend and improve these crops and consider that their efforts shonlů be to ordmated more than they are Now STT Trayaragharacharya - The point is that the Provinces want the Imperial Council of Acuicultural Research to exercise a little more control We are giving grints to provinces for fruit research and the frant us to bring all of them into line Dr 1 Burns In this case there is no question of over production From the statistics it appears that in Tombs only analf an ounce of fruut vegetables are consumai per dar per man hereas in New York it is one pound per ans As fne as the coustinption of fruit and vegetables is conccined takru all togethe there is an enormons market I is only a qurtsion of proper marl eting facilities In the matter of export of 117110 overseas all the provinces in India are hil elt to compete with one 110-hor In thint (lircction ve requure en ordination and before an efforts are mulle to capture external mari ets I consider that the niole business should be one through one aşenet m Inglin otherwise we słıall land ourselies in inpolese muddin Rao Baladier Aajasimha Rajilla I i now what is meant los co ordintion in marl eting fruits Bombs and Karachi do stand But the In an advantageous position being nearer to European ports 62 castern parts of India, the Madras coasts, are far away from European ports and on that account, they suffer in comparison with the western parts of India. What do you mean by co-ordination ? Dr. W. Burns~-) shall explain. There is for example in Liverpool a possible market for bananas. Madras is producing bananas and it is now tempted to send them to northern India. If proper steps could be takrin to send those bananas to European markets it will be good. Presumably her own market is over-flooded withi bananas. What I suggest is that things like these should be exploited only by one agency acting for the whole of India, working, I presume, through the High Commissioner, rather than that individual provinces should make individual efforts. Sir T. Vijayaraghavacharya.--The Iligh Commissioner hiniself las written to me that there is unlıcalthy competition among Indian dealers as regards mangoes in the European market. Rao Bahadur Narasimha Raju. That is principally with regard to Bombay mangoes. I am making my own efforts to find a market for my mangoes. But I find it impossible to send mangoes from Madras. The railway freight is very heavy and there is unhealthy competition froun mangoe growers in other parts of India. Even on the west coast, there is competition between Ratnagiri and some other place. If Dr. Burus wants co-ordination, let Bonıbay province first do some co-ordination within its own province. I believe there is no other province which competes with Bombay in sending mangoes to the Continent. Dr. IV. Burns.—The United Provinces Mango Growers Association is keen on sending mangoes to Europe. Mr. H. M. Hood.--The question of bananas has been referred to. We grow enormous plantations of bananas in the south of the Madras Presidency, but the difficulty is to find a market for them. One of the chief difficulties is the difficulty of transport, and we have been trying to get concession rates and more suitable rolling stock and so on in carrying these plantains. Of course if we develop our own west coast port, we could put the bananas on board for export much more cheaply. Chairman.-What is the extent of fruit farming in the different provinces ? Nr. 91. Vaidyanathan. We have got statistics for fruits and vegetables combined in the Agricultural Statistics. They are 5 million acres during 1932-33 ; Burma comes first with 1.2 million acres, Madras .7, United Provinces .6, Bengal .8, Assam .4, Bombay .3, Punjab .3, Central Provinces .1 and the total is about 5 million acres for the whole of India. Dewan Bahadur T. Raghariah. The idea of the sub-committee in making this recommendation was that there was want of a centra) organisation in regard to marketing of fruits and vegetables in India and outside and that there should be some agency set up by the Imperial Council of Agricultural Research or hy Government which would act as a sort of clearing house and which would eliminate unhealthy competition and bring about co-ordination between the various provinces. Chairman. That will properly come under marketing and we will proceed to the next item, 63 en 111 Part X-Cereals other than rice and wheat, specially barley, jowar, bujra, maize and gram (including pulses) Mr B C. Burt -At present barley, Jowar, bajra and gram and a little maize are exported Sardar Sampuran Singh --When I was last in London, I made quiries as to what other articles of agricultural commodities except wheat and cotton could be conveniently evported to Europe I took with me samples of the various pulses that are imported into England from Mesopotamia and East Africa and on comparison I find that the qualities of pulses that we produce here are far superior to those imported from Mesopotamia and East Africa It is all a question of co ordination of marketing If proper enquiries are made, we could export a large quantity of these pluses to European market Dr D B Meeh - I have no objection to this recommendation of the sub committee We will examine it and see what could be done The Conference agreed with the recommendation of the sub committee The Conference then went on to page 12 of the Note, “ General" Chairman -We have decided wluat is in existence the present scheme of crop planning and we have said that it should continue or at all events we have not advised curtailing the cropping as it exists at present 'lhe question now is what are the crops that we feel should be pushed, if any, and to what extent and by whom The Conference should arrive at definite conclusions on this and the question of alternative crops should be discussed Madras Rao Bahadur Narasimha Raju I understand at present 50,000 tons of white sugar is being imported, and the acreage of 50 000 acres is expected to supply that imported sugar I do not think the idea is possible Rao Bahadur D Ananda Rao ---The area at present is 1,21 000 acres and I estimate another 50 000 acres will make us self supporting in regard to sugar as well as gur Mr H. M Hood - The Madras Government has considered the recom mendation made by this sub-committee but 50 000 acres here and 50,000 actes there is not going to make a big difference in the position of the paddı market when we have about 111 million acres under paddy Chairman --Every little thing helps the agriculturist (No comments on Madras) Bombay Dr TV Burns—I should explain that these crops here were suggested in connection with the question of substitution in rice areis Mr A D Gorwala -Sind accepts that position Burma The Hon'ble Sir Franh Noyce Can you grow linseed ? Nr A McKerral - We tried it before in 1919 but under the existing conditions at that time it was not successful Conditions may be more favourable now and I mean to try it again next cold weather 64 Bihar and Orissa. . Chairman. In view of the statements of Madras, Bengal, Burma and A'ssam, do you still intend to increase your sugarcane area ? 11. M2. D. R. Sethi. It is not a question of our intending to increase our sugarcane area. We have 30 factories in our province and the experience in the past year was that there was not enough sugarcane, at least in North Bihar, to feed these factories. Our forecast figures are never really very accurate, and if the factories want sugarcane the cultiyators will automatically increase the area. With your permission I should like to make a few modifications in this paragraph as it reads now. It should read as follows Bihar and Orissa was hoping to show a further increase under sugarcane during the next few years. Its autumn riče in unprotected areas in Bihar proper was precarious and it was possible to replace some of this by more remunerative crops. If protection is afforded to the Indian dairy industry, the province had possibilities of growing fodder crops for which there is a great need." The last two sentences should be combined into one and should read thus " There was also scope for the expansion of the acreage under linseed with efficient marketing.” I do not think there is any scope for the expansion of gram and other pulses in our province. 1 Central Provinces. The Hon'ble Sir Frank Noyce. What about increasing the acreage under cotton ? Mr. J. H. Ritchie.We produce as much cotton as we can and I do not think there is scope for much further expansion. Til (sesamum) seed we are also willing to expand in certain Districts and I am looking into the economics of its production. Chairman..The net result is that in cotton the definite recommendation is only for Madras to go on with 50,000 acres of Cambodia and in Sindh we should see their programme of expansion of cotton, rice and wheat. Besides Madras and Sind cotton does not seem to be a favourite. Sugarcane comes in for 300,000 to 400,000 acres in different provinces. Fruit is pursuing a good career of progress but there is no definite recommendation. Barley is to be taken up by the United Provinces and linseed. is one definite crop which to the extent of 2 million acres could be pushed. Mr. P. B. Richards.--The United Provinces also hopes to extend its production of sun-hemp. Chairman.-Besides this there is an increase in tobacco of 30,000 acres. There is no recommendation before us about fodder crops, but I am quite prepared to take up any recommendation that is made now.

65 Col A Olver --I think that not only in connection with the dairy midnatı but also in connection with the improvement of live stock all round there is a very big scope for fodder crops Dr N Burns ~This question is not contingent on the development of the milk Industry It seems to me that it is very necessary at the pre sont moment in order to develop the ordinary milk supply, which at the present moment is deficient both in quality and quantity (har man -What is the definite recommendation 1 Col A Olver-Thrt a considerable increase in the production of fodder cops should be made for the development of the dairy industry and of lite stoel Dr TV Burns - There is a definite opportunity in this Ra. Bahadur B B Muthharji-Would it be impossible for the Central Government or the Agricultural Research Council to supply up to date information to the provinces about machinery, methods of canning, and so forth ? People in Bengal are struggling with very limited know ledge ind it would be extremely helpful if we could have some sort of propaganda in this matter I found that in one place in Bengal mulle was being sold at 32 seers per rupee whereis in Calcutta you could not get mors thin 3 seers per iupee There is a big difference between the price at the centre and the price outside Chairman --You do not really suggest that at the place where milk Wis selling at 32 seers per rupee, it was not being used for producing ghee ! Rar Bahadur B B Muharji-No, Sir But there is the difficulty of trinsport The Jumna and the Brahmaputra intervene and it is very difficult to get these things transported Col A Olver—May I say that it is in that connection that we want a Dury Institute It is largely a question of processing and transport do not know at present the best methods of marketing but there is any amount of milk available Chairman --That is not a question which this Conference can help in deciding Sir T Vijayaraghavacharya -It has been decided already Col A Olver - The total area under cultivation of fodder crops at present is 5 per cent of the total cultivated artea That is an extremely low proportion In England it is 35 per cent and there is ample rich grazing in ad lition There is great scope for expansion of fodder crops in India Chairman --I should be glad to hear the views of provinces Are they prepared to treble the area under fodder crops ! Mr HU Hood-It is not possible for the Government of Madras to mahe any such definite undertaking They have no power to dictate what crops should be grown Chairman - It is a provincial subject Mr H M Hood - Yes But they hare no autliority to order that any particular crop should be grown We 66 Chairman. If you go to the Legislature and take the power ? M4. H. N. blood.There is very little prospect of any such legislation being passed. We are taking active steps by giving concessions to develop the area wder fodder crops. The Madras Government are definitely attempting to foster the growth of fodder crops. Rai Bahadur B. B. Nukharji.-It is possible to bring a much larger area under fodder crops cultivation in Bengal as a second crop. Action is being taken in that direction. It is one of the main duties of the Agricultural Department to carry on experiments and propaganda for growing fodder crops.. The Hon'ble Sir Nfiles Irving..The Punjab Government would not be prepared to agree to any legislation by which the cultivator would lie compelled to grow this crop or any other. I do not think it has been suygested in this Conference. The question of fodder crops involves the other question of superfluous and useless cattle. It may tend to increase the nunber of cattle which ought not to exist at all, or exist uneconomically. Col. A. Olver.-In order to provide the number of bullocks which are required to cultivate the land, breeders at present have to produce an uduly large number of cattle. Many of these are inefficient and have no value whatever. If they were better fed, we would get better bullocks and a smaller number could do the work. That is the direction in which breeders will have to progress. It is of no rise producing an inefficient animal because it can be cheaply reared if it is unable to do the work required. The Hon'ble Sir Miles Irving. I do not think there is any prospect of any increase in the fodder crops in the Punjab. We reduced the water rates some time ago. It had not the least effect on the growth of fodder. We had to increase them recently. We do not expect there will be any great reduction in the growth. We do not contemplate any great change in fodder crops. Mr. J. H. Ritchie.There is no prospect of any increase in fodder crops in the Central Provinces. Jowar is used as the main fodder in the cotton area, bhusa in the wheat tract and rice straw in the rice tract. Our Government farms produce berseem for our own cattle, but that practice has not been taken up by any one else and I see no prospect of any expansion. Dr. W. Burns. There are in Bombay 2.3 million acres under fodder which is largely jowar and other crops that are grown and cut green. I think there are also great possibilities in pumping from rivers. Mr. D. L. Drake-Brockman. When we increase our area, under linseed and sunayi it may be assumed that an increase in fodder grown specifically as such will have to be made. At the moment I see no need for any radical change. Mr. A. McKerral.-In Burma, in the rice tracts cattle are fed with straw and in Upper Burma with jowar. In addition to these we have sesamum oil cake the produce of about 15 million acres. On the irrigated areas fodder crops are not grown. Mr. D. R. Sethi.-Sir, in Bihar, which is permanently settled, I do not think the Government can do very much to increase the area under fodder crops. We have about 33,000 acres under fødder at present, against -a 1 80780 67 total cattle population of about 29,000,000. They are fed, on rice_straw, wheat bhusa and gram, and I do not see that the cattle can be improved unless there is a definite incentive to the cultivator to grow fodder. It's very essential to have a market for Dairy products in order to improve the live-stock of the Province. A definite incentive should be given to the cultivator to grow fodder. Chairman.--Do you suggest any incentive ? Mr. D. R. Sethi. It has been decided that the question of giving protection to dairy products should be referred to the Tariff Board. Protection, if given, will be a definite incentive. i. C. R Pawscy. At present there is no area at all under fodder, but the Agricultural Department will do what they can to improve the position. They are trying experimental farms to improve the standard of live stock, Mr. A. D. Gorwala.-The development of fodder crops in the Barrage areas of Sind may be expected to take place naturally as former waste lands and grazing areas are taken up for cultivation. It will be impracticable to impose any condition on purchasers or lessees of land that a certain percent. age of the area shall necessarily be grown with fodder crops. Attempts are being made to extend the cultivation of berseem (Egyptian clover) both as a fodder crop and as an agent in the reclamation of kalar lands. Chairman. It is really in canal areas where the least quantity of fodder is grown, unless special provision is made by the Colonisation authority. Mr. A. D. Gorwala.--Our rates are much lower than for any other crop, but we cannot hope to introduce any legislation to say that it shall necessarily be cultivated. The Hon'ble Sir Frank Noyce.-Can Mr. Burt tell us what the Royal Commission on Agriculture recommended on this subject 1 Mr. B. C. Burt.-I remember the Royal Commission saying that there was very little progress possible in cattle improvement or dairying unless the feeding of cattle is improved and that an increase in the growing of fodder crops must take place. The Hon'ble Sir Frank Noyce.-The Royal Commission on Agricnlture recommended in regard to this as follows: (The Honourable Member read from paragraph 187 of the Report). I do not think there has been any change in the position since. I should be very sorry if this Conference were to lend any support to the theory that a very great expansion of cultivation of fodder crops in this country is not desirable not only for the proper maintenance of live stock but also for the expansion of the dairy industry. Chairman. I think the Conference is agreed on that point that it is desirable. The question is how to bring about that desirable condition. It has been recognised by the provinces, but they have stated that they are powerless unless they are given legislative powers. The Hon'ble Sir Prank Noyce.--I would not agree with that. There . are a great many things that the Agricultural Department can do to encourage any particular erop. I tlo not believe our Agricultural Departments aro $0 powerless as all that.

1.68 case :: 15!!. Mr. P. B. Richards. We have in the United Provinces 1,360,000 acres under fodder crops against the normal area of 927,000 acres in 1905. That is an increase of roughly 40 per cent. Chairman.-In the meantime the total crop area must also have gone up. Mr. P. B. Richards.-The crop area has increasėd to 35,044,000 from 34,803,000 acres in 1905, that is to say, it · has remained practically stationary. We have heard that it is desirable that alternative crops approximately of equal value should be substituted for wheat. This Conference has made no recommendations, and I do not know if it intends to advise Local Governments upon the ways and means by which the Government can assist in such substitution. Sir Miles Irving has touched briefly upon the possibility of such inducement : This might: be of the nature of lower irrigation rates, revenue operations by way of ģenerous takavi advances, generous remissions in the of failures where new crops are being established, etc. If any lead can be given by this Conference in the manner in which the substitution of crops can be Sencouraged by Governments, I think it would be of great help to the "Agricultural Departments. Mr. H. M. IIood.—. The matter has been carefully considered by the Madras Government before we came here in regard to the substitution of other crops for paddy and the compulsory restriction of cultivation, Chairman. There has been no question of restriction and the question of substitution has also been reduced to one of simply carrying out . the programmes of such Local Governments as have any programmes of change over. The only other thing is the question of linseed. There is no other definite recommendation for introducing any other crop. Mr. H. M. Hood.--Governments can do something towards inducing ryots to grow a particular crop, but they can not do it by compulsion. The methods referred to by Mr. Richards are open to the Governments, but I think the influence of those methods is not quite so great as he suggests. It is possible to give land revenue remissions, but Land Revenue is not by any means a very big factor in deciding what crops a synt Government can refuse to give remission if a crop which is not favoured is grown but this may operate harshly. The method of persuasion and propaganda through the Agricultural Revenue Department is open to us and it is the policy that is being steadily pursued at present in Madras. Col. A. Olver.-—The most effective propaganda is to organise good markets for animal products and live stock. (hairman. I take it that the result of such information as has been elicited from representatives of Local Governments is that there is a desire all round to help a larger area coming under fodder crops, but success achieved hitherto has not been very great, that none of the Local Governments is contemplating. taking powers to further this object ;.. they all intend utilising such influence as they happen to possess to promote this object. T'he Hon'ble Sir Miles Irring.-The policy of our Agricultural Department has been generally speaking not to advise any course of action but to lay before the cultivator facts to enable him to decide: 0,15! Chairman. There is no more effective influence than to to show by example. will grow. or , 60 The Hon'ble Sir Miles Irring. try to avoid giving definite ndrico saying " Grow this ". Dr. W. Burns. I protest that that is a most hopeless way of doing propaganda. Chairman...Propaganda, you must recognise, must vary with reference to the character of the people on wlion it is being exercised. Sir Miles Irving can show that in matters relating to agriculture his province has not done so very badly as to justify that the method of propaganan is not very effectire. We come to page 13, where there is a gencral omnibus sort of resolution that in order to promote a more efficient production and marketing of Indian agricultural produce this Sub-Committee recommends that the Gorerument of India should consider thic advisability of imposing protective duties on the imports of agricultural produce which compete with home grown produce. The Hon'ble Sir Frank Noyce. The Government of India would want a great deal more infornntion before they are prepared to take action on this Resolution. If you look at page 27 of the Statistical Table, you will find that there are only four agricultural imports, rice, which we have dealt with separately, coconnt oil and linseed oil which are niready subject to a high duty and cotton which is also subject to duty. A great proportion of the linsced oil is made from linseed which is cxported from this country and which comes back to it again from the United Kingdom. There is also tobacco which has not been mentioned on which there is already a duty. I am not quite clear why other agricultural imports such as tobacco have not been mentioned, but tohacco is also subject to a high duty, and I think it is very desirable that the Sub-Committee should explain for the benefit of Government what imports of agricultural produce they had in mind. We have separately dealt with the question of the dairy industry, and it scems to me that the whole field has already been covered, and that this Resolution is superfluous. Mr. P. B. Richards. When this Resolution was finally passed the two words " animal fats” were added before agricultural produce. This was included lest animal fats should coinpete against bome grown products. The Chairman has called this an omnibus resolution It is certainly an omnibus for the poor, the smaller agricultural industries and products. All the big things, more or less, have heen provided for in separate resolutions, but there is a large number of smaller industries which may now or in the future require protection ; and therefore the resolution was frared in this manner. I will give a case in point from the United Provinces which applies thronghout North India. We grovy a large and increasing quantity of temperate fruits in the hills, of which the apple is the most important. These apples are sent all over India, Bombay and Calcutta being among the larger markets. It frequently bappens that our growers in Kumaon Tills send apples of escellent quality to Bombay or Calcutta an find that they can not get the price of the box and the milpay freight becanse of the dumping of apples from Californin. This is only, a small case but there may be many more. We hare merely asked in this Nesolution that Government should take a favourable views of placing an import duty os such agricultural produce as competes in this pray to the 70 disadvantage of local growers. It is not expected that a protective duty would be imposed on any article until those concerned have put their case before the Tariff Board, and all that is requested is a recommendation from this Committee to the Government of India that when such cases arise they will be given favourable consideration. Chairman.--Then I can assure you it is superfluous, because as sool as an application comes to the Tariff Board, it is bound to be considered. Mr. A. M. Livingstone. With reference to Mr. Richards' last remark, When we dealt with fruits and vegetables there was no reference there to any question of import duties. So far as the United Kingdom is concerned, in regard to fruits and vegetables, the Import Duties Advisory Committee, put on some heavy duties with the object of encouraging the production of fruit and vegetables in England, which are at present being imported from the Continent, with a considerable amount of success, and the Dutch and French systems of market gardening have since extended considerbly, but when the duties were put, on the Import Duties Advisory Committee was very specific in saying that unless the Home producers took steps to improve the marketing of their produce, these duties would be removed, and that incentive has caused the producers to go in for better marketing both of fruits and vegetables. It has been very helpful indeed, and I think the intention of the Sub-Committee was that similar action by the Tariff Board in India would also be helpful. It is true that in this country there are no Farmers' Unions to make proper representations to the Board, and I think Mr. Richards and the supporters of this resolution felt that in the absence of any such body in India a general resolution to this effect might perhaps be helpful without going into specific details, Chairman.-As pointed out by my Hon'ble colleague, Government like any other businesslike body, would be glad to deal with any particular The general principle of this resolution is admitted by the Government as the very existence of the Tariff Board implies. But the point has brer raised by Mr. Livingstone that there are no Farmers' Unions in this country but he is going to be the head of the Marketing Board, and I should think the Marketing Board of a province would be the most appropriate body to move in the matter of drawing attention of the Government to facts which justify an inquiry. I do not know whether members of the Conference are keen that a resolution in such general terms should be adopted. The discussion has taken place and that will serve the purpose. Is that a fairly accurate interpretation of the wishes of the Conference ? Mr. H. M. Hood. The resolution seems rather unnecessary. case. Chairman. That is what in a more parliamentary language I tried to say. Well, now, we will proceed to the next one,--to improve agricultural statistics. Dr. D. B. Meek.-A few years ago we addressed various Local Governments and commercial bodies regarding the possibility of re-starting the statistics relating to sea and rail-borne trade. The proposal was then accepted by the Provincial Governments and by representatives of commercial bodies. Now, I am in full sympathy with giving more information to provinces, but it will cost some money for the collection and 71 compilation of these figures in a much more detailed form If this resolu tion comes to the Government of Indir, it will be examined but it will be examined mainly from the point of finance and I understand that some of the Local Governments will be willing to assist us financially One of the Local Governments has actually kept up the system of rail borne and trade statistics right from the year 1922 up to date I should like to know how far the Local Governments and commercial representatives would be willing to assist us in meeting the additional expenditure Central Provinces understand has kept the statistics up to-date from 1922 onwards Mr HM Hood - I cannot say whether our Government will or will not be willing to find the money Dr DB Week ---If the resolution comes to me I will consult the Local Governments and indicate that the cost will be Chairman Gentlemen we have spent two mornings here and we have got tlu ough a very well considered Note by our experts from all over Indiz It is 1 matter of very great satisfaction to me to see that in ench province the Agricultural Department has been functioning with great zeal all enthusiasm and effect People were under the impression that crop png and all these things in the provinces have been going on any how tiere was no logic belund them that there was no sense behind them perhaps wd at all events there were no economics behind them A reference to the proceedings of the Advisors Coromittee of experts and to all this extensie material that has been collected by the Council of Agriculturni Research and our experts at the headquarters will show that for many years in the prst provinces have been doing their very best to see that every acre of land is being used by the ryots and cultivators to as good a purpose as local conditions permitted After an exhaustive inquiry spreading over thir days our experts come to the conclusion that as regards the cropping of the largest staple products rice and whent they were not in a position to say that there was too much of cultivation Therefore the proceedings of this Conference and its conclusions will convince the public and the cultivator that as a matter of fact we are not in a position to say that the cultivation of these two large stuple crops of the country should be 1 estrieted We are at the same time in a position, after examination of all the material to say that further expınsion of these two crops can only be undertaken by provinces in the light of the facts which have been elicited during these investigations because we all know that circumstances and economic conditions change very rapidly and the changes of weather and ramfall and storms play 2 part which has a very important bearing on the dev lopinent of cultivator s character and his futh in Providence Only the other day we heard what had happened in America when a storm came We thought that all their wheat was exhausted and perhaps India would once more be a wheat exporting country So we can never kuow that the existing conditions are going to continue for any length of time, but it is a matter of very great satisfaction to l non that you have not been going very wrong It is a still greater satisfaction to know that in the main yon bave been doing very well Then coming to substitute crops I think we have definitely scored a point in feeling satisfied that about 2 million more acres could be brought profitably under linseed About the other substitnte crops they are not very much, but still our investigations deuberations have been a our 72 source of very great satisfaction to me and to my colleagues, and I trust they have been of equal satisfaction to representatives of provinces, because One does not like to feel that one has been bungling matters or mismanaging them althongh one would always like to improve matters if possible. There are some matters which have not yet been finally investigated. Provision has licen made for investigations to be pursucul in relation to those matters, and as soon as those investigations have been completed the results of those investigations will be circulated to all the provinces. These Conferences 110 doubt involve a great deal of trouble to provinces to send their reprrsentatives to them. But I feel after these two days' deliberations that we have been justified in giving this trouble to the provinces, in our own interests and I trust as well as in their interests. Therefore I will not apologise to you for giving you the trouble to come, for I feel that the gain on both sides has been such as to justify my giving the trouble and your being good enough to take the trouble to come. (Cheers.) Rao Bahadur ('. Padalinga Mfuclaliar --- Tay I be permitted to express on behalf of this c'onference our sincere feelings of thankfulness to the Vice-Chairman of the Imperial Council of Agricultural Research and luis Statistician Professor Vaidyanathan for the trouble they have taken in placing before us these very interesting statistics and graphs. I have no doubt that they have been preparer hy tliem at certain amount of personal sacrifice, and I hope all the members of this Conference will agree with me in thanking them for the same. Chairman. Certainly. Rao Bahadur C. Tadulinga Mudaliar.-Day I also have the proud privilege this afternoon to express our feelings of gratitude to you, Sir, for the hearty welcome you have extended to us at the beginning of this Conference and the kind hospitality you have shown us during our stay at this bill station ? Also I may be permitted to propose a very sincere and hearty vote of thanks to you for so smoothly guiding the deliberations of this Conference and bringing it to a very successful end. (Cheers.) The Conference then dispersed. L771HL300--7-7-34--GIPS

Conference Of Ministers On Agricultural Marketing Nov .1938

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Conference Of Ministers On Agricultural Marketing Nov .1938
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Conference Of Ministers On Agricultural Marketing Nov .1938
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Conference Of Ministers On Agricultural Marketing Nov .1938