The supply of land, unlike that of labour or capital, is finite. The most efficient use of land is, therefore, crucial to economic planning. If that sounds like stating the obvious, it has become necessary to do so in view of the political controversy over the Bengal government?s plans to acquire farmland for new industries. It is reassuring that the state?s commerce and industries minister, Mr Nirupam Sen, has spoken with clarity and conviction while defending the government?s policy. This was necessary to clear the air of conflicting signals emanating from a section of the state?s political class. Mr Sen?s statement in the state assembly should make it clear, once and for all, that most of the new industries would be set up on agricultural land because of what he called ?geo-economic compulsions? of industrial investors. He could have cited more fundamental economic reasons. The ultimate aim of the government?s economic planning should be to increase the wealth of Bengal. There can be no debate whatsoever that industrial production can generate far more wealth than agriculture. That being the case, it would be a regressive policy to lock land in less productive uses such as agriculture. This larger theoretical point is supported by the dwindling returns from agriculture in Bengal. It is no secret that the pressure of an expanding population, rising production costs and unremunerative prices of farm products are together forcing more and more villagers to look for other livelihoods.

A planned transition to an industrial economy is thus not a choice but the only option for the government. True, the transition will have its pains. The people who lose their land to new industries or other enterprises feel alienated from their social and cultural roots. The benefits from new economic ventures either to themselves or to the society as a whole are not immediately clear to them. They also suffer from the government?s inefficient ways of implementing compensation and rehabilitation packages. But none of these is any justification for sticking to old ways. For the old system cannot sustain them anyway. Farmland will inevitably shrink, giving way either to new industries or to urbanization and some other projects. The politicians who are pretending to come to the land-losers? rescue have their own agenda. They will help neither the farmers nor Bengal?s economy. They can only delay the inevitable.