Ganhi’s Salt Farmers Bewail Rent Hike on Public Land
|December 18, 2013||Posted by Staff under Rent recovery or avoidance|
Salt manufacturers in the state of Odisha suffered major blow to their business couple of months back because of cyclone Phailin and subsequent floods.
Now the central government has increased the ground rent on salt fields from Rs 5 to Rs 120 per acre per annum. It has also increased the assignment charge on the manufacturers from Rs 4 to Rs 100 per tonne of salt per annum, retroactive to last January.
The salt manufacturers’ association will ask the government to reconsider its decision.
Ganjam is the major salt producing district in the state having around 5,000 acres of lands. There are 43 manufactures, including private ones and two cooperative societies engaged in making salt from the sea water. They produce 15,000 to 20,000 tonnes of salt every year. The salt farming land is leased to cooperative and private sector firms by the central and state governments.
While the infrastructure facilities like the sheds, pump sets, iodization godowns, and electric transformers were damaged in the cyclone, there was heavy siltation in the fields due to heavy rains and floods following the storm. At least Rs 10,000 per acre is needed to de-silt the salt fields to revive the production.
Ed. Notes: While it is fair for those who use land to pay their community for excluding everyone else from the land, and fair for government to collect such rent for community use, it is not fair for government to collect more than the annual market value of the land. After a devastating storm, wouldn’t the land be worth less? Wouldn’t lowering the rent make more sense? However, perhaps in this case, where the rent had been so low, the increase is still not much, only raising the amount to a fair amount. It’s not possible for us to judge without knowing how much profit the salt farmers make on public land each year. If only the reporter would complete the story!