FARMERS AGITATION IN INDIA: Part 2

 Farmers Agitation / Protest: Part 2

 

My previous article has received a good response with few people sharing their constructive feedback, opinions and views. There are always two (minimum) sides of a coin, here too we are seeing that and hence I am, after taking their permission, including few of these valuable opinions, facts and views of my readers as part-2 of the article.

 

Before I add my readers views, I wish to add few more points from my end. 

 

It is not that I am stating that what these farmers are protesting is wrong or demands are wrong, but what I feel is that they have been misguided / misled by politicians and others (no surprises here) who have vested interests in them. If we consider a situation where the protesting farmers do agree with all the new laws of the government, and if it fails (we have history as proof where practically all the new policies brought in by this government have failed to sustain their promises; Demonetization, GST etc.) will they take the responsibility and own it up? No, they have never taken any Accountability of their wrong doings, which are a plenty. hence, I have been apprehensive about this law too.

 

This is probably my first article where I may be supporting the current government for this new Law but there are still lots questions and skeletons that have not yet unearthed. There are decades if not centuries of wrong doings to these farmers by Kings, Landowners, Governments, Politicians etc. 

 

I definitely do not believe that there is No Personal Interest of Government in this nor do I believe that Ambani’s, Adani’s of the world are not involved or would not benefit with this law.

 

My point that Government has brought in Real Issues to Camouflage their Personal Interests / Benefits.

 

Following are few of views shared by my readers:

 

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Sameer Shaikh

 

Hi Cyrus read through, but the core issue of the farmers are not what you have said in your article... Though I agree these are issues, which are important to address. The environmental impact needs to be addressed but I don’t think it’s the govt intention to do anything on this.

 

The MSP issue of the farmers is core and should be addressed. If you want to make an open market for anyone to purchase, keep the MSP the same for private players as well. The MSP should be applicable to APMC as well as private players. In order to remove corruption don't open a door for exploitation by the corporates. think of how the farmers can be protected, much like MRP MSP is necessary.

 

Secondly, the contract farming clauses. While this could be good, there needs to be a fair contract framework for both. The corporate could easily wash their hands from their liability to purchase a crop if the quality is not met and we all know how this can be manipulated and mentioned in the contracts. Most of the times the quality of produce is dependent on a lot of environmental factors. Some of the farmers don't have any way to appeal in the court only till the SDM, which is ridiculous.

 

About the wastage of food, the FCI is to be blamed primarily on how it manages its excess food grains and why it cannot work to make the best used of these supplies. Also, the MSP calculation has to take into account the excess available grain so that there has to be some incentive for the farmers to move from the normal Rice & Wheat to something else.

 

About the removal of Essential Commodity Act, this paves the way for anyone to hoard goods and then at a later stage create a demand and sell at high prices. While these are all possibilities, but it cannot be ruled out. 

 

Lastly, the way the law was passed and bull dozed in the parliament that does not instill confidence that is a necessary due diligence and if that was done and stakeholders brought onboard. Ideally like in the corporate world when a project impacts any department they are consulted / informed, get onboard and then project executed. In this case the govt just steam rolled the laws without any consensus. I am strongly against the intentions of this government. It closes its eyes on wrong doing and hence if these laws are misused by corporates to exploit the farmers then the government is just going to turn away.

 

Just my POV... 

I agree there are a lot of reforms needed in the farming sector, but this is not the way to bring it on.

 

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Bharat Paliwal

 

Very well written.

 

1. Govt needs to explain the laws and it’s benefits to all - use TV / AIR there are enough communication channels.

 

2. The bad habits of subtle burning and wastage may also need a different angle. What is the alternative for subtle burning? If the alternative is attractive (e.g. someone procures for fuel or whatever other purposes) would a farmer literally burn this opportunity to make more money? Once the practice fades away, a law against subtle burning is smooth and will not seem harsh

 

3. Instead of wholesale freebies, can govt invest in smart agriculture? i.e., only provide free that’s absolutely needed for a particular crop - considering drip irrigation, etc. Invest there and let farmer’s benefit. Any additional use is charged.

 

On the capitalist front, does it mean middle class gets screwed by having to pay high charges to private packagers OR worse they essentially export everything leading to high prices and low quality to India.

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Anu Ganesh

 

Good analysis.  The crux of the matter as some see it is that the MSP should be fixed before harvest and not after. If fixed after, then it amounts to big corporates like Ambani’s who will benefit.

 

The present law says MSP will be fixed after harvest.

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I shall add as and when I receive more.

 

Thank you for reading.

 

 

FARMERS AGITATION IN INDIA

 FARMERS AGITATION IN INDIA

  

Farmers Agitation and Protest: This is a very controversial topic, which has received global attention. Sadly, majority of the people are supporting this Farmers Protests without even knowing the real reasons or what the farmers are protesting. If protests are the platforms and roads to arm twist and get the wrong, right, then I suppose one of the first ones to protest should be the middle-class and service-class people who have been paying their taxes and running the country without receiving any benefits, while classes who do not fall under the tax bracket are getting all the benefits, plus protesting to get more or should I say squeezing and demanding more.

 

Coming back to this Farmers Protest, so who are these farmers? Well, they are from Punjab, Haryana and UP states of India, who are amongst the richest not just amongst the Indian farmers but amongst the richest people of our country, and they Don't Pay TAX and additionally get many other subsidiaries.

 

So, I did a bit of digging and my own research to go below the unrest waters to understand what the real issue is. I have to admit here that our Government has NOT done due diligence in explaining the issues to masses and world at large, hence all these celebrities and other influencers are stating that the government is wrong and farmers getting all the emotional support. Media too has NOT been (not surprising here) providing the right information to its readers and viewers.

 

Let me take this bold step and share what I have learnt so far.

 

I would like to highlight 4-key issues that we should carefully consider for an informed opinion on the said subject:

1. Emissions from Crop Residue Burning. Farmers demanded, and regrettably the Government of India agreed, to withdraw penalties for burning crop residue. Indian farmers, mostly around Delhi in the states of Punjab, Haryana, and Uttar Pradesh, burn about 100 million tons (Mt) a year of crop residue, which generates 140 Mt of CO₂, 12 Mt of other noxious gases and 1.2 Mt of particulate matter choking a population of about 50 million in the area. Crop residue burning also destroys the nitrogen and carbon potential of the soil, kills the microflora and fauna beneficial to the soil, removes the large portion of the organic matter, and unavoidably leads to increased use of chemical fertilizers.We all know, read and specially people of Delhi have experienced the deadly air called Smog, which makes breathing extremely difficult and people with respiratory problems have nothing less than nightmarish days. Many young children are forced to skip school and stay indoors. 2.2 million children suffer irreversible lung damage.

 

Should we support farmers demand to let them continue to burn crop residue and add to emissions?

                                      

2. Food Wastage. Every year in India, about 67 million tons of food is wasted (and this is only the official and recorded number, unrecorded number will be approximately 3 to 4 times more), which has been estimated to be around US$14 billion and could feed 100 million people. Up to 40 per cent of the food produced in India is wasted, according to the United Nations Development Program, and about 21 million tons of wheat (2.5 Mt GHG) equivalent to gross annual production of Australia, is wasted annually. Food and Agriculture Organization (FAO is a United Nations agency that works on international efforts to defeat hunger by developing agriculture) estimates show that two-third of food is wasted in post-harvest transportation, storage, processing and distribution before it reaches the consumer. To understand this better, if food wastage was a country, it would be the third largest emitter after the US and China. Embedded carbon in the wasted food in India is about 60Mt of CO₂ equivalent.  India desperately needs to modernize its agriculture, strengthen market linkages, and invest in the whole supply chain. 

 

Should we support and to continue with the current archaic systems and waste food that could feed 100 million hungry every year?    

             

3. Water Crisis. A severe water crisis is looming large in India. About 85% of irrigated agriculture in India depends on groundwater. India extracts about 230 km³ of groundwater every year of which 90% is used for irrigation. World Bank estimates show that by 2030, 65% of Indian groundwater would be considered over-exploited i.e., extracting more than is replenished by nature. 50-years ago, farmers in Punjab and Haryana boldly rose to the challenge then of food insecurity and started growing rice in a semi-arid agro-climatic zone to feed the country. This has come at a very heavy environmental cost of severe depletion of groundwater, deteriorating water quality, excessive use of chemical fertilizers and cancer-causing pesticides. India is now food surplus and needs to create incentives to make agriculture less resource intensive and demand driven. 

Agitating farmers want the government to lock into the current system of growing resource intensive and chemical ridden agriculture. Should we support that?

4. Corruption-Controlled Agriculture Markets. Many may not be aware but the current system forces farmers to sell their produce through government-established market yards where they have to pay a brokerage of about 2% to 3% and market tax of about 5% to 6%. Market Committees collect this tax supposedly for “rural development”, are controlled by politicians, and their accounts are not audited for years (rather never). The revenue is often swindled by corrupt politicians controlling these Committees. The new laws give a choice to the farmers to either continue to sell in the existing market yards or sell to anyone anywhere in the country and that too without paying any tax.

There are other strong vested interests benefitting from the status-quo. Government procures large quantities of wheat and rice for the public distribution system and pays a pre-announced minimum support price (MSP). Out of about 210 Mt of wheat and rice produced in the country, the Government procures about 85 Mt for sale to the poor at one-tenth of the procurement price. About 52% of this procurement is made from only three states Punjab, Haryana and Uttar Pradesh, the hub of agitating farmers. More than 90% of the farmers in rest of India do not benefit from this system. Normally, the market price is lower than the MSP. This is what creates a great opportunity for the broker-mafia. Brokers and politicians purchase wheat and rice from farmers in other states at a lower price (about 60% of MSP) and pay them in cash, bring it to government procurement stations in Punjab, Haryana and UP, sell it at a higher price (MSP) and get paid by cheque. This is counted as their agriculture income which is tax-exempt. So, these brokers, often politicians or campaign financiers, not only earn the huge arbitrage but also convert the cash (generally crime or black money) to legitimate tax-free income. New laws would bring in transparency and make it difficult to legitimize crime/black money. Don’t we all see or question how this farmer agitation is so well funded? My assumption is that many innocent farmers may not even know the source of this questionable so called “philanthropic” funding. 

 

Should we support a system of legitimizing crime and corruption money in the hands of corrupt politicians and their associates? 

 

I am hoping that eventually a satisfactory solution would be found not only for the agitating farmers of a few states but also for the remaining 90% farmers of India who would stand to gain from the new laws.

 

Thank you for reading through. The above information has been taken from few original articles as part of my research (secondary). These are my personal opinion and have no intention to create any unrest amongst any society or community of people. My objective is to see the other side of the coin too before deciding whom to support.

 

Jai Hind.