End-use mission report on the Central Tractor Organization : India

,,, . , , ,, , s. -- - -'-- - '- - --~- - ~~~'" v;N~'' C O N F I D E N T I A L Fkti (AAZ'i Report No. T.O. 78 T078 Copy No. This report is limited to those members of the staff to whs work it directl relates. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT END-USE MISSION REPORT ON THE CENTRAL TRACTOR ORGANIZATION INDIA February 24, 1955 Department of Technical Operations  TABLE OF CONTENTS Page No. Conclusions and Reconmmendations i - iii The Project, The Mission, Terms of Refer- ence 1 I. The Organization and Machinery 1 - 3 II. Agricultural Statistics 3 -7 CTO Statistics Sources of Agricultural Statistics Land Utilization Crop Yields Additional Agricultural Statistics III. Agronomic Effects of the Project 7 9 Deep Plowing and Follow-up Cultivation Improved Farming Methods Soil Erosion IV. Costs and Benefits 9 -12 New Farms Increased Incomes National Food Production Foreign Exchange Saving Skilled Personnel TABIES I. Reclamation Targets and Performance II. Wheat Yields  END-USE MISSION REPORT ON THE CENTRAL TRACTOR ORGANJIZATION, INDIA CONCLUSIONS AND RECONNENDATIONS 1. The Project is technically sound; it will substantially reach its objectives; and it will be of appreciable benefit to India. 2. CTO is technically in good shape and operations are continuing satisfactorily. The tractor fleet is in sound mechanical condition and maintenance of all equipment is efficient. Uncertainty as to the future of CTO should not impair unduly the operating efficiency of the Organiza- tion. 3. Following considerable difficulty in making firm contracts with the States for land reclamation, CTO has had to reduce the target area for 195h/55 to 200,000 acres; contracts are being negotiated for 240,000 acres in 1955/16. The probable total area cleared by the end of 1955/56, the last season, will be 15,005OO0 acres, against the modified target of 1,600,000 acres established in 1951. This would be a reasonably satisfactory performance. 4. The total area of 1,213,000 acres reclaimed between 19h7/h8 and 1953/54, which includes ltO,000 acres reclaimed with equipment not financed from the Bank loan, represents less than 1*5% of the total cultivated area of the four State.s, However, the reclaimed area represents 12% of the es- timated Kans infested area. 5. Fallow land as a proportion of the total area reclaimed declined from 56% in 1950/51 to 17% in 1953/54; the cumulative figure is 35%. The proportion of fallow land in the reclaimed area is over 50% in Bhopal and Uttar Pradesh and less than 30% in the other two States. 6. Agricultural statistics are not collected first hand by CTO but are provided to CTO by the State Governments. Changes in statistical method- ology and presentation, which occurred during the life of the project, con- tributed to the inherent difficulty of obtaining both accurate and sufficient data. Statistics referring specifically to the Project are few. Neverthe- less, the statistical work done is good and is being improved steadily. Ad- ditional agricultural statistics are needed for a full appraisal of the ef- fects of reclamation work; most of the required statistics are collected but on too small a sample basis to provide representative figures. 7. Land utilization statistics show that over 70% of the reclaimed area has been devoted to rabi (winter) crops of which wheat and gram are the most important. W,heat is grown on 40% of the area and gram on 25%. There is little double cropping on reclaimed Kans land.  - ii - 8. W!heat yields on reclaimed land can be estimated at 500 lbs. per acre, compared with a general average for all cultivated land of 400 lbs. per acre. yields on Kans infested land prior to reclamation are estimated at 300 lbs. per acre, giving an increase on reclamation of about 200 lbs. per acre. 9. It is quite certain that deep plowing is an effective means of destroying Kans grass. Howevers, to be fully effective deep plowing must be done at the correct time when soil conditions are dry and the weather is hot, between January and April. 10. Reinfestation, which to date has been slight, follows mainly on ill-timed deep plowing, or unseasonable rainfall. Local implements are ade- quate for the cultivation necessary for reinfestation controle ll. CTO has provided a first class piece of land reclamation but for full benefits this has to be followed up by more frequent cultivation and by improved farming methods. Under attainable conditions wheat yields could be raised to 2000 lbs. per acre, against the present average of 400 lbs. per acre. 12. Soil erosion presents a problem of great urgency. An effort to combat it is being made by contour bunding; but wide grass strips placed on the contour would be less costly and more flexible, the strip providing a rest crop in a sound system of grassland and crop rotation. 13. The financial position of CTO appears to be sound. Provided reasonably good management continues and sufficient work is offered in 1955/56 there is no reason to expect costs to exceed receipts over the life of the Project. 14. Charges made by CTO for reclamation work are within the capacity of the cultivator to pay even at the recent low level of wheat prices. 15. The main benefits derived from the Project are:- a) New farms have been created out of wilderness and some 5000 fam- ilies have been settled on the land. b) Gross incomes from existing farms have been increased about Rs. 50 million in 1953/54. c) Some 60,000 tons of wheat, 40,000 tons of gram and a considerable volume of other crops has been added to the national food production. d) lPoreign exchange savings on foodgrain imports in 1953/54 were of the order of Rs. 24 million. e) Personnel have acquired valuable skill in large scale machinery op- erations and land reclamation work. 16. The Mission recommends that:- a) The good work done in the collection of agricultural statistics related to CTO work should be expanded as much as possible by increasing the number of samples taken.  - iii - b) Every encouragement should be given by the Central and State Governments to efforts to ensure adequate follow-up on the reclamation work of CTO. This should be developed at the farm level through more frequent cultivation and improved farming methods. c) Above all, every effort should be made to combat erosion, par- ticularly by encouraging the use on the contour of grass strips forming the ley within the arable rotation. d) The Project should be revisited in 1956, wrhen the actual value of OTO assets is determined, in order to assist in the final assessment of the costs of the Project.  END-USE MISSION REPORT ON THE CENTRAL TRACTOR ORGANTIZATION9 INDIA The Project 1. The Central Tractor Organization was established in 1946. In 1949, it was provided with heavy tractors and deep plowing, land clearing and servicing equipment, under Loan No. 19 IN for the equivalent of US $10,000,000. The loan was subsequently reduced to the equivalent of US $7,203,813, because later estimates indicated that foreign exchange re- quirements under the Project would be less than originally estimated. The objective of the Organization was to reclaim land infested with Kans grass in Uttar Pradesh, Madhya Pradesh, Madhya Bharat and Bhopal. The reclaimed land was to be used to grow more food crops. In addition the Organization was to carry out a pilot program in the Tarai of Uttar Pradesh for clearing jungle lands with the aid of modern equipment. All deep plowing and clearance work was to be administered, accounted for and done by the Organization which was to apportion and recover from the States the full annual cost (including depreciation of equipment) incurred in carry- ing out the Project. The Mission 2. The End-use Mission, consisting of Dr. William Davies (Agronomic Consultant), Dr. Mads Iversen (Statistical Consultant), Mr. Jack Connors (Engineering Consultant) and Mr. Paul Craig-Martin (Chief of Mission), ar- rived in India on November 7, 1954 and left on November 30, 195h. Terms of Reference 3. The terms of reference of the Mission covered four main groups of inquiries:- a) To review the present status of the organization and its machinery. b) To assess the reliability of the agricultural statistics related to the Project, with special reference to crop yield data. c) To appraise the effectiveness of deep plowing as a method of erad- icating Kans grass, the incidence of reinfestation and the action taken or to be taken to ensure effective use of the reclaimed land. d) To assess the benefits derived from the Project. I. IHE OR3ANIZATION AND 1ktCHINER 4. No decision has yet been made by the Government on the future of CTO after June 1, 1956. Under the circumstances, it has become difficult to maintain the very high morale of the staff, which has been an outstanding feature of CTO. The management has promised the personnel that every attempt  - 2 - will be made to have them placed in other departments of the Government, should CTO cease operations in 1956. In spite of these assurances. the Mechanical Engineer in charge of the Delhi workshop and three assistant engineers have left the Organization, while others are seeking alternative emplayment. However, unless there is a marked increase in the number of personnel leaving, there should be sufficient personnel available to oper- ate the machinery efficiently during the remaining life of the Project. 5. The Delhi workshop is operating on a very light schedule and most of the off-season overhaul of tractors is being undertaken by the Bairagarh workshop. All of the scheduled work at Bairagarh in Bhopal should have been completed by November 30, 1954 but, due to the shortage of parts, it will not in fact be completed until mid-January, 1955. The delay is not serious. 6. The shortage of spare parts has been created by the inability of dealers to supply parts. This has been due to delays in granting import licences, but the situation has improved and both Allis Chalmers and Cater- pillar dealers expect in future to supply CTO as required. 7. The tractor fleet is in sound mechanical condition. However, a number of Ransome moldboard plows will require extensive repairs by the end of the season. Sixteen of the Towner disc plows have been modified with parts furnished, free of cost, by the man'lfacturer. The motor truck situation is somewhat difficult as the American Army and British trucks purchased in 19h9 are wearing out. The Chairman of CTO is reluctant to purchase new trucks for possibly only cne or two years' operations. 8. CTO experienced considerable difficulty in getting the State Governments to furnish land for reclamation during 1954/55. Although con- tracts had been signed by June, 1954, Madhya Bharat later cancelled its contract and the other States showed disposition to do the same. They stated that, as the price of wheat had fallen to Rs. 12 per maund, culti- vators were no longer interested in reclamation work at the rate of Rs. 55 per acre. After lengthy negotiations and the intervention of the Secretary, Ministry of Food and Agriculture, new contracts were signed at a reduced reclamation rate of Rs. 45 per acre. As a result of these delays the amount of pre-harvest reclamation was considerably reduced and the total area re- claimed in 1954/55 will probably not exceed 200,000 acres. 9. The Secretary, Ministry of Food and Agriculture, is personally handling the negotiations of land contracts between CTO and the State Governments for 1955/56. The probable outcome will be contracts total- ling 240,000 acres for that season. This should prove just about a man- ageable target, as 30% of the CTO tractors will have reached the 10,000 hours mark during the 1954/55 season, when their economic life would have to be reviewed to determine whether repairing them for further use would be economic. 10. In general, CTO is technically in good shape and operations are continuing very satisfactorily. Tractors and machinery have been operated and maintained sufficiently well to permit the full 10,000 hours economic  - 3 - life to be realized. In spite of uncertainty as to the future of CTO beyond 1955/56, sufficient personnel should be available to operate the machinery efficiently for the remainder of the Project. The probable total area cleared by the end of the last season for the Project, 1955/56, should be about ,S500,000 acres, against the modified target of 1,600s000 acres established in 1951. This would be a reasonably satisfactory per- formance. II. AGRICULTURAL STATISTICS CTO Statistics 11. Statistics collected first hand by CTO refer to the Operations of the Organization, i.e. numbers of tractors in operation, hours worked or lost, acreage reclaimed, etc. CTO does not collect at first hand agri- cultural statistics, such as acreages cultivated to different crops, yields per acre, etc., but obtains these statistics from the State Governments. 12. CTO statistics of the areas reclaimed are reliable and are set out in Table I. The statistics show that:- a) The 1,213,000 acres reclaimed between 1947/48 and 1953/54, includ- ing about 140,000 acres reclaimed with non-IBRD financed equipment, repre- sents less than l.5% of the total cultivated area of the four States; the reclaimed fallow land alone represents less than 0.5%. However, the reclaim- ed area represents 12% of the estimated Kans infested area of the four States. b) The importanre of reclamation work done is greatest for Bhopal where the reclaimed area constitutes 18% of the total cultivated area. c) Fallow land as a proportion of the total area reclaimed declined each year from 1950/51 when it was 56%, to 1953/54, when the season's figure was less than 17% and the cumulative figure 35%. d) The proportion of fallow land in the reclaimed area is over 50% in Bhopal and Uttar Pradesh and less than 30% in Madhya Pradesh and Madhya Bharat. Sources of Agricultural Statistics 13. Research into agricultural statistical methods is conducted by the Statistics Branch of the Indian Council of Agricultural Research (ICAR). Coordination, tabulation and presentation of agricultural statistics is done by the Directorate of Economics and Statistics. Both bodies form part of the Ministry of Food and Agriculture. 14. In 19h8 a National Sample Survey was instituted by the Central Statistical Office, which is part of the MIinistry of Finance. Sampling methods adopted for agricultural statistics under the Survey were deter- mined by the Indian Council of Agricultural Research. The agricultural statistics collected are tabulated and presented by the Ministry of Agri- culture.  - h - 15. The first hand collection of agricultural statistics is done at present by officers of the State Governments under two systems, some States using one and some the other. The two systems are as follows:- a) Patwari System: Under this system agricultural statistics are obtained as a by-product of financial statistics. Land utilization figures are obtained from the records kept by the Patwari, an officer of the Land Records Branch of the State Revenue Departments, responsible for maintain- ing tax records covering four or five villages. Crop yield estimates are made by the Patwari on the basis of visual inspection of fields in connect- ion with his normal duties. b) Sample Survey System: Under this system agricultural statistics are collected on a random sample basis. Crop yield figures are obtained from crop cutting samples. The Patwari is asked to indicate suitable areas for the survey teamst operations but from there on the team acts independent- ly and transmits its findings to the Central Statistical Office. 16. Formerly all statistics collected were transmitted to the Central Government for processing but, recently, the four State Governments have or- ganized their own statistical groups; those in Madhya Bharat and Bhopal were formed only in 1954. Local statistics are now processed in the State stat- istical groups and then sent to the Ministry of Agriculture for coordination and presentation. Special extracts from the State statistics have been made for the areas of CTO operations and have been reported to CTO direct, In some cases special crop cutting sampling has been done for CTO. 17. The changes in statistical methodology and presentation, which occurred during the life of the Project, contributed to the inherent dif- ficulty of obtaining both accurate and sufficient data. Nevertheless, the statistical work done is good and is being improved steadily. Land Utilization 18. The soils, on which Kans is found, are used primarily for the pro- duction of rabi (winter) crops - wheat, gram (chick peas), masoor (lentils) and linseed. They are planted in September/October and harvested in February/ March. Some kharif (summer) crops are grown - jowar (sorghum), sunn hemp, sesame, rice, tur (pigeon peas). They are planted in June/July and harvested in November/becember. 19. Figures for land utilization are not yet available for 1953/54 but figures for 1952/53 are illustrative. Double cropping is extensive in the Tarai but on Kans lands is negligible. The figures, therefore, indicate that virtually all the land reclaimed has been cultivated and that rabi (winter) crops account for about 70% of the land use. The following figures for 1952/53 account for only about half the area reclaimed to date but can be taken as representative for the whole area:-  -5- Utilization of Reclaimed Land, 1952/3 (thousand acres) Total Total Total Un- Reclaimed Kans Lands Kharif Rabi Cultivated cultivated Preceding Years Bhopal 81.8 114.3 196.1 - 196.1 Uttar Pradesh 27.6 45.0 72.6 - 65.6 Madhya Bharat 22.0 62.0 84.0 3.7 87.7 Madhya Pradesh 4.2 146.8 15L10 0.3 151.3 Total 135.6 36I. 37 a 507 Uttar Pradesh (jungle) 16.2 13.2 29.4 0.4 18.3 20. Figures are not available to show the proportion of the reclaimed area devoted to each individual crop. However, State statistics covering seven Kans infested districts where reclamation work has been done show the following distribution of crops:- Expressed as % of Cultivated Area Wheat 41 Gram 26 Other Rabi 1 Total Rabi v Total Karif 32 Total Rabi and KarifT Crop Yields 21. It is sufficient here to examine yields of wheat, the main crop. Table II gives the main yield statistics for the three States of Madhya Pradesh, Madhya Bharat and Bhopal for 1951/52 to 1953/54; fully comparable figures for UtteLo Pradesh are not available. 22. The general average wheat yield for the three States is 400 lbs. per acre, according to figures published by the Ministry of Agriculture. Ex- tracts from these figures, as provided by the States to CTO, indicate that the general average for the districts in which CTO operates is also 400 lbs. per acre. Both these figures appear reasonable and accurate and show that the districts in which CTO operates are representative of the three States as a whole. 23. Extracts from the National Sample Survey figures indicate that the average yield after reclamation is 505 lbs. per acre on prior fallow and 525 lbs. per acre on prior cultivated. Extracts from ICAR figures, obtained through a special study of the Kans area by the National Sample Survey for "Results of Grow More Food Assessment Surveys" also indicate that the aver- age yield after reclamation is 505 lbs. per acre on prior fallow and 540 lbs. per acre on prior cultivated. If allowance is made for the fact that the  - 6 - Food Assessment figures include gram as well as wheat, the Sample Survey figures can be accepted. Since, however, higher than normal yields are usual immediately after reclamation, the longer term yield for these lands cannot be expected to average over 500 lbs. per acre, under present culti- vation methods. 24. Extracts from the National Sample Survey and ICAR figures for "Results of Grow More Food A,ssessment Surveys", provide statistics for yields from Kans infested land not yet reclaimed. These give a figure of 430 - 445 lbs. per acre. This figure does not appear to be accurate for the following reasons:- a) The yield of 445 lbs. per acre on land infested with Kans would be 45 lbs. per acre more than the general average for all types of land. b) Some officials consider that the samples chosen for these lands were not representative in that they were mainly lands which had not been deep plowed because they were less infested than the lands offered to CT0. c) Local opinion in the Kans areas considers that the additional yield after reclamation varies enormously, depending on the degree of orig- inal infestation, but is at least 2 maunds (80 lbs. each) per acre and more often considerably more. 25. The Mission considers that the average yield of 500 lbs. per acre for reclaimed land is representative of yields for the better land of the States, which would account for about 20% of the total cultivated area. Since another 20% of the area is Kans infested the remaining 60% has average yields, which over the past three years would be 400 lbs. per acre. This would imply that the average yields on Kans infested land are around 300 lbs. per acre or that the average additional yield following reclamation is around 200 lbs. per acre. This confirms local opinion, which the Mission considers acceptable until more reliable statistical data becomes available. Additional Agricultural Statistics 26. For a full appraisal of the effects on yields of reclamation of prior cultivated land, more than the statistics collected would be required. Also proper follow-up on reclamation work would be facilitated by additional accurate statistical information. The additional statistics required would be as follows:- a) Yields under different agricultural practices (irrigation, mechan- ization, fertilization, husbandry skill and crop areas), both before and after reclamation, and for several consecutive years on the same land follow- ing reclamation. b) Yields under different reinfestation conditions. c) Holdings, according to tenure, size, manpower, draft power cul- tivation, management, etc.  - 7 - 27. Of the foregoing a) and b) are in fact obtained but the number of samples is too small to provide representative figures for the CTO area. Indian statisticians recognize the need for these figures and the inadequacy of the samples but contend that lack of funds and trained field personnel limit their action. Item c) above is being dealt with under a National Census this year. III. AGRDNONIC EFFECTS OF THE PROJECT 28. Kans grass infestation is not a new problem on the black soils of Central India and the peasant has attempted to control the weed with the means at his disposal. One method employed was to inundate the fields for long periods; control was obtained after three years inundation. Lack of water limited the area of application of this method. Another method employed was to "fallowl the land, which meant to allow it to revert to jungle; control was obtained after about 12 years. This was a form of shifting cultivation, very expensive in the use of land. Deep Plowing and Follow-up Cultivation 29. CTO offered the peasant a new weapon, in mechanical power to deep plow the land so as to expose the Kans grass roots and rhizomes in the top 12 - 15 inches of soil to desiccation. 30. It is quite certain that deep plowing is an effective means of des- troying Kans grass. 31. However, to be fully effective deep plowing must be done at the correct time of year when soil conditions are dry and the weather is hot, i.e. between January and April. Under suitable conditions desiccation is complete and more or less total eradication can be effected. 32. Reinfestation follows mainly on ill-timed deep plowing, unseason- able rains or failure to effect proper follow-up cultivation. To date rein- festation has been slight. Local implements are adequate to provide the necessary cultivation for reinfestation control, particularly if hand hoeing during the growth of the crop is feasible. 33. There is no evidence that deep plowing brings up toxic subsoil materials which might inhibit plant growth. Improved Farming Methods 3h. CTO has provided a first class piece of land reclamation but if the full benefits of the project are to be obtained it must be followed up by ap- propriate methods of husbandry, in other words good farming. 35. To define good husbandry for Central India is outside the scope of this report but the principles of good husbandry are of universal application. Cultivation must be adequate, fertility of the soil must be maintained at a high level and the best possible varieties of seed should be used.  - 8 - 36. The Indian wooden plow is an effective implement but is inflexible as to depth and may tend to produce a soil pan at plow depth. The ttbhakar"t or ox-drawn hoe, also is an effective implement but its use is limited to the period before wheat is sown. Mechanization, although not essential, would greatly assist the farmers efforts to provide adequate cultivation. 37. Soil fertility varies considerably but the most striking single feature comnmon to practically all Central Indian soils is the very low level of organic matter. If soil has less than 2% organic matter then the crop yield is bound to suffer; the organic matter on Central Indian soils is seldom above 1% and very commonly less than 0.7% of the dry soil. There is a tendency to write off this problem as insoluble but the Mission considers that experiments to test the effect of a grass/legume ley would be worthwhile. Unless some means can be found to raise the level of organic matter there can be little hope of a permanent increase in the yield per acre of wheat or any other arable crop. 38. The plant breeding institutes of India have been very active for many years and wheat breeding work has been of a high standard. The excel- lent material, however, is not finding its way into general agriculture. Facilities for multiplication which do exist are inadequate and many products of the breeding stations lose their identity once they leave them. There is no wide and effective system of seed multiplication and certification. 39. Under attainable conditions of good husbandry wheat yields in the unirrigated parts of Central India could be of the order of 2000 lbs. per acre. The average at present is around 400 lbs. per acre and top yields are seldom above 800 lbs. per acre. Soil Erosion 40. Wind erosion and, with it, dust storms appear to be frequent es- pecially in the pre-monsoon period. Sheet erosion, the washing away of the surface soil, is widespread and gully erosion is common on both arable and grazing lands. 41. Erosion should not be attributed directly to reclamation operations, although it can be an indirect consequence. Under the climatic conditions of Central India any soil, whatever its character, is liable to erosion. W4hen large contiguous blocks of land are reclaimed, a more or less level and very highly erodible surface is produced. Consequently, reclaimed lands become more susceptible to erosion than before they were reclaimed, for Kans itself helps to reduce erodibility by providing a vegetable cover. 42. The problem is of great urgency. Since under farming conditions a permanent vegetable cover is not possible, efforts should be made to build up organic matter in the soil and the land should be contoured. 43. A beginning has been made with contouring by means of bunds. The Mission considers that wide grass strips placed on the contour would be less costly and more flexible. The strip could be so arranged that it would it- self provide a rest crop in a sound system of grassland and crop rotation, or the ley within the arable rotation. After a period of 3 to 10 years under  _ 9 - grass the strip would be replaced by another, also on the contourp and the initial strip plowed up. By this two important things would be accomplished:- a) The dangers of erosion would be lessened, and b) Soil fertility would be improved and yields increased following the ley. IV. COSTS AND BENEFITS 44. The financial position of CTO appears to be sound. Although cumu- lative book losses have been recorded, amounting to about Rs. 5 million, cash reserves of over Rs. 11.5 million have been accumulated under "the re- serve created to meet the cost of major overhauls of tractorsn. If the losses are offset against the cash reserves, there remains Rs. 7 million in these reserves, which should be sufficient to cover the major overhauls and also any foreseeable losses during the remaining life of the Project. 45. Provided reasonably good management continues and sufficient work is offered CTO in 1955/56, there is no reason to expect costs to exceed re- ceipts over the life of the Project. Until a final costing is made at the close of the Project, when the equipment and parts can be correctly valued, it is impossible to state definitely that the Project has been self-supporting. 46. Estimated total costs per hour for Kans clearance operations com- pared with charges made have been as follows:- Costs Charge Per Hour Per Hour khs.) (Rs.) 1950/51 51.00 52.00 1951/52 49.75 52.00 1952/53 51.1.3 52.00 1953/54 45.78 55.00 1954/55 48.00(forecast) 45.00 47. Charges for 1954/55 were reduced below forecasted costs under strong pressure from the States (see Paragraph 8). CTO expects to be able to keep costs below Rs. 50 per hour by effecting certain economies but does not expect to be able to lower costs to the 1953/54 level because of the smaller area to be worked. The loss should amount to a little over Rs, 1 million but this appears to be adequately covered by cash reserves (see Paragraph 44). 48. Charges made by CTO for reclamation work are paid by the State Governments, which collect from farmers by annual payments over five years. Reclaimed acres on many farms include both prior fallow and prior cultivated land. Returns to farmers from reclaimed prior fallow land must be attractive as yields from these lands are equal to the average of the best lands in the  - 10 _ States. An additional yield of 200 lbs. per acre for wheat (see Para- graph 25) would provide an additional return of Rs. 30, even at Rs. 12 per maund (80 lbs.) the lowest price reached in 1954. Since the cost to the farmer for deep plowing an acre has been around Rs. 55 payable in five annual instalments, the annual cost to the farmer is Rs. 11 per acre. Thus on reclaimed prior cultivated land the annual additional return to the farmer after payment for deep plowing is Rs. 19 per acre for the first five years and Rs. 30 per acre thereafter. This return would have to cover any additional farm costs incurred. These vary enormously. No representative figures for additional farm costs are available but the return should be ample to cover them, even in the first five years. As reclaimed land on most farms includes both prior fallow and prior cultivated land the benefit to the individual farmer is generally greater than that indicated for prior cultivated land alone. 49. Agricultural prices have been rising recently and with smaller total Indian output forecast for 1954/55 they can be expected to rise fur- ther, particularly for wheat as Government stocks have been heavily reduced. Since yields on reclaimed areas appear to be much better maintained under less favorable climatic conditions, returns from these lands should show a relative increase. 5o. The benefits derived from the Project are five-fold, - new farms have been created, income of existing farmers has been increased, the nation's food supply has been increased, foreign exchange has been saved and skills in the use and maintenance of agricultural machinery have been developed. New Farms 51. The Project is not primarily one of settlement except in the Tarai area of Uttar Pradesh. However, it has made a contribution to it at Sultanpur in Bhopal. Out of the total 1,200,000 acres reclaimed some 440,000 acres were of fallaw land, of which only about 40,000 acres are in the Tarai and Sultanpur. The buLk of the remaining 400,000 acres was on existing farms. 52. The Tarai did not present a Kans infestation problem but an exper- imental area for jungle clearance techniques. In the Tarai 36,0o0 acres were cleared and malaria combatted permitting the settlement of 3115 farm families in cooperative colonies and the establishment of a large State Farm. Much is being done in support of and as follow-up on CTO operations, VIH0 has pro- vided a malaria control team, 102 miles of road have been built, 29 tube wells have been sunk and electric power has been provided. 53. Bhopal State was originally owned by the Nawab and inhabited largely by Mohammedans, who have emigrated to Pakistan. The Central Gov- ernment of India acquired all the lands of the Nawab, except 100,000 acres which he still owns. Some of these lands were turned over to displaced persons from the Punjab but they have not worked the land because they came from a criminal tribe and found banditry more profitable than farming. Settlement has been greatly slowed up until a screening program is estab- lished to prevent a recurrence of this experience. Private lands of former Mohammedan occupiers are under the control of the Custodian of Evacuee Pro- perty and, since the compensation problem has not been settled, title to  - 11 - these lands cannot be granted. The main settlement scheme in Bhopal is on the State-owned farm at Sultanpur on which the settlement of 2000 fam- ilies is planned. This is to be on a cooperative labor basis. Settlement on the State Farm has been held up as housing and other living amenities have not been completed. Increased Incomes 54. If the fallow land reclaimed in the Tarai and at Sultanpur is excluded, the vast bulk of the remaining fallow land reclaimed can be as- sumed to be on existing farms. On this assumption, the addition to gross incomes of farmers has been derived from both prior fallow and prior cul- tivated land in proportions of about 1:2. In 1953/54, the gross incomes of farmers whose lands had been reclaimed under the Project by CTO was in- creased by about Rs. 50 million as a result of reclamation (300 lbs. per acre. average additional yield x 1 million acres x Rs. 13 per maund, aver- age price received). Since 1953/54 was the fifth year following the earliest reclamation work under the project, all farmers, whose land had been reclaim- ed, were still paying for it so that the costs of reclamation was Rs. l1 million (Rs. 55 per acre i 5). No information is available for additional costs of production incurred by farmers and, consequently, additional net incomes cannot be estimated. National Food Production 55. No figures are available to show the increased production for each of the crops grown on reclaimed land but, undoubtedly, almost all the land was devoted to food crops. The greatest individual contributions to the national food production were in the form of wheat, which probably covered 40% of the reclaimed area, and gram, accounting for 25%. This would rep- resent increases in production of 60,000 tons of wheat and 40s000 tons of gram, or 0.7% and 03%, respectively, of the national production in 1953/54. 56. Although the contribution to the food supply from such a limited area as that of CTO operations must be relatively small, it appears even smaller because of the extraordinary increase in the food production of all India in 1953/54 caused largely by extremely favorable climatic conditions. Total cereal grain production in India in 1953/54 was 7 million tons higher than in 1952/53, itself not a bad year; gram production increased by 900,000 tons. Foreign Exchange Saving 57. Under the circumstances of the marked rise in domestic production, Indian foodgrain imports in 1953/54 were 1432 thousand tons, or under 50% of imports in 1952/53. Savings of imports of foodgrains from increased pro- duction on reclaimed lands, equivalent to nearly 4% of imports, appear rela- tively large. The cost of equivalent wheat imports delivered at ports in 1953/54 would have been over Rs. 24 million.  -12 - Skilled Personnel 58. CTO has been developed into an excellent operating unit. First rate technical personnel have obtained experience in large scale machinery operation and land clearance work. Nhether CTO continues to operate as a unit or whether its technical personnel are scattered over the country, a valuable addition has been made to India's development armament.  TABLE I CTO PROJECT RECLAMATION TARGETS AND PERFORANICE (thousand acres) I. By Period of Reclamation Kans Area Pre-harvest Post-harvest Jungle Area Annual Season Period Period Total Total Targets 1949/50r 2.0 37.2 39.2 - a/ 1950/51 59.8 166.5 226.3 1.3 - / 1951/52 67.4 167.7 235.1 18.3 272.0 1952/53 71.0 178.5 249.5 16.6 222.0 1953/54 89.7 190.1 279.8 10.0 255.5 1954/55(estd.) 54.0 148.o 202.0 6.0 208.0 a/ No annual target set. II. By Type of -Dnid Prior Prior Annual Season Fallow Cultivated Total Targets 1949/50 19.2 20.0 39.2 a/ 1950/51 128.1 99.5 227.6 a/ 1951/52 110.1 143.3 253.4 227.0 1952/53 66.5 199.6 266.1 222.0 1953/54 54h9 234.9 289.8 255.5 Total 178.- 697.3 1076 7 a/ No annual target set.  TABLE II WIHEAT Y:IEDS (15s. per acre) Averages for:- Seasons 1951/52 1952/53 19573/ 1. Three States - Madhya Pradesh, Madhya Bharat and Bhopal 291 441 465 2. Districts in which CTO operates in the three States 3014 436 464 3. Lands reclaimed by CTO a) National Sample Survey figures 1) Prior fallow 502 519 488 2) Prior cultivated 537 509 534 b) Grow More Food Assessment Sur- vey figures 1) Pricr fallow 511 509 502 2) Pricr cul Livated 542 521 550 4. Kans infested land xiot reclaimed by C'