The ongoing farmer protests have put the spotlight on the problem of stagnant farm incomes and the limits of MSP in resolving this challenge. EPISODE #165
One has barely forgotten the miserable situation three years back and now we are again facing a farmer's protest. Most people dread the thought of Delhi borders being under seige,the violence, endless traffic jams. Though they eventually got their way, the farmers lost out on public sympathy. There is no denying the fact that Punjab has the richest farmers. One wonders how the farmers of other States are peacefully going about their work.
One factor is physical proximity to Delhi. It's so easy for these farmers to reach Delhi borders with their tractors and JCB's. It's obvious that this agitation is politically motivated. It's the perfect time to arm twist the government before the general election and the Model Code of Conduct is imposed. One wonders how many of those agitating are genuinely farmers. If they are such poor, hardworking farmers can they afford to stop all farming activities for days on end.
Last time the farmers were able to get what they wanted. Since they can't now protest about the farm laws, they have come up with MSP. Presently they have taken a break but it's to be seen whether this is a lull before the storm.
The timing of this agitation is critical, as the general elections are round the corner. This seems to be a deliberate ploy, in order to squeeze out a deal, that the government will be negotiating with their hands tied. Although the wind has been taken out of the sails of this agitation, at this stage, a renewed thrust is on the way, after some regrouping. The expensive lifestyles of the rich farmers has made loan waivers a periodic demand, that political parties have made into an election winning tool. In the Haryana budget, the interest on loans have been waived. This waiver has benefitted the already prosperous farmers of Haryana and will be helpful for the elections and for breaking up the thrust from Punjab; loan waivers however do not benefit the actual needy poor farmers, who take loans at high interest rates from private money lenders. A lot of seemingly wise suggestions are being given freely to cure the ills, but if there were any easy remedies, it would have happened by now. However, one should be positive and hopeful and the change could happen by counseling the affected farmers to change the crop pattern by following successful experiments in Andhra Pradesh and MP. Along with some farmers, some politicians are equally to blame for the current mess. Thank you Anil for sharing your thoughts on this topical issue.
Acknowledging Shastriji’s role in initiating Green Revolution is a fact which is often forgotten. Rural economy cannot be merely crop income based and requires Multi dimensional approach. Dr Kurien mentioned that but for Shastriji White Revolution could not have been ushered in .
Present agitation for MSP seems to be restricted to Punjab only . Any policy initiative needs to take into account the demand as well as requirements of farmers from all over the country.
Another factor should not be lost sight of . Kulak and rich farmers are few and should not be dictating agrarian policy formulation. Larger number are marginal farmers and landless labourers are very important segment. For them the income does not merely mean sale of crops but also that earned from Govt sponsored rural programs.
We need to tread with care ; care for marginal and poor ; care to formulate policy for all the regions ; care to develop comprehensive programs !
We need to go beyond what Prof Gulati's suggestions as we march to 2047! We must start from the basics. Let us accept that every citizen has equal rights over the revenues of the Govt of India. So once the Govt takes care of essential expenses like Defense, security, routine administration, rest of the pool of revenues say up to 80%, should be assigned to be distributed as income support to every needy ( as appropriately defined, say those under some income threshold at the family level). Once this is done, Govt must provide free education, food, health care as well to these people. And Govt withdraws all kinds of subsidies and benefits currently being given under variety of schemes and free up every control. So Farm Laws will make sense under this dispensation and as GDP goes up, Govt revenue goes up and so does the distribution of income support. Anything else by the Govt must be supported by borrowing from the market but strictly within prescribed GDP to Debt ratio. Some such architecture will simplify the strategies and what we have interned today as the feeling that some group can demand anything and everything from the Govt, hold it to ransom and bend it, will go away. To begin with, let us assure every land owning farmer, a basic income and free food, healthcare and education and remove subsidies of all kinds, free up the market, make leasing ( not selling) and land pooling legal. Govt can assure you minimum level of life but is not and cannot give you profits as desired. These changes require strong political will but then what for Modi is going to 400+ seats? Modi has been doing a lot of things but not fully. He leaves his job half way through, as politics takes over. He must know that he has just 5 more years to go, if not 10 and he must do so many things more!! And he, as also all of us know, there may be another 20 years before we have another phenomenon like Modi.
Dear Anil
One has barely forgotten the miserable situation three years back and now we are again facing a farmer's protest. Most people dread the thought of Delhi borders being under seige,the violence, endless traffic jams. Though they eventually got their way, the farmers lost out on public sympathy. There is no denying the fact that Punjab has the richest farmers. One wonders how the farmers of other States are peacefully going about their work.
One factor is physical proximity to Delhi. It's so easy for these farmers to reach Delhi borders with their tractors and JCB's. It's obvious that this agitation is politically motivated. It's the perfect time to arm twist the government before the general election and the Model Code of Conduct is imposed. One wonders how many of those agitating are genuinely farmers. If they are such poor, hardworking farmers can they afford to stop all farming activities for days on end.
Last time the farmers were able to get what they wanted. Since they can't now protest about the farm laws, they have come up with MSP. Presently they have taken a break but it's to be seen whether this is a lull before the storm.
The timing of this agitation is critical, as the general elections are round the corner. This seems to be a deliberate ploy, in order to squeeze out a deal, that the government will be negotiating with their hands tied. Although the wind has been taken out of the sails of this agitation, at this stage, a renewed thrust is on the way, after some regrouping. The expensive lifestyles of the rich farmers has made loan waivers a periodic demand, that political parties have made into an election winning tool. In the Haryana budget, the interest on loans have been waived. This waiver has benefitted the already prosperous farmers of Haryana and will be helpful for the elections and for breaking up the thrust from Punjab; loan waivers however do not benefit the actual needy poor farmers, who take loans at high interest rates from private money lenders. A lot of seemingly wise suggestions are being given freely to cure the ills, but if there were any easy remedies, it would have happened by now. However, one should be positive and hopeful and the change could happen by counseling the affected farmers to change the crop pattern by following successful experiments in Andhra Pradesh and MP. Along with some farmers, some politicians are equally to blame for the current mess. Thank you Anil for sharing your thoughts on this topical issue.
Interesting article Anil !
Acknowledging Shastriji’s role in initiating Green Revolution is a fact which is often forgotten. Rural economy cannot be merely crop income based and requires Multi dimensional approach. Dr Kurien mentioned that but for Shastriji White Revolution could not have been ushered in .
Present agitation for MSP seems to be restricted to Punjab only . Any policy initiative needs to take into account the demand as well as requirements of farmers from all over the country.
Another factor should not be lost sight of . Kulak and rich farmers are few and should not be dictating agrarian policy formulation. Larger number are marginal farmers and landless labourers are very important segment. For them the income does not merely mean sale of crops but also that earned from Govt sponsored rural programs.
We need to tread with care ; care for marginal and poor ; care to formulate policy for all the regions ; care to develop comprehensive programs !
We need to go beyond what Prof Gulati's suggestions as we march to 2047! We must start from the basics. Let us accept that every citizen has equal rights over the revenues of the Govt of India. So once the Govt takes care of essential expenses like Defense, security, routine administration, rest of the pool of revenues say up to 80%, should be assigned to be distributed as income support to every needy ( as appropriately defined, say those under some income threshold at the family level). Once this is done, Govt must provide free education, food, health care as well to these people. And Govt withdraws all kinds of subsidies and benefits currently being given under variety of schemes and free up every control. So Farm Laws will make sense under this dispensation and as GDP goes up, Govt revenue goes up and so does the distribution of income support. Anything else by the Govt must be supported by borrowing from the market but strictly within prescribed GDP to Debt ratio. Some such architecture will simplify the strategies and what we have interned today as the feeling that some group can demand anything and everything from the Govt, hold it to ransom and bend it, will go away. To begin with, let us assure every land owning farmer, a basic income and free food, healthcare and education and remove subsidies of all kinds, free up the market, make leasing ( not selling) and land pooling legal. Govt can assure you minimum level of life but is not and cannot give you profits as desired. These changes require strong political will but then what for Modi is going to 400+ seats? Modi has been doing a lot of things but not fully. He leaves his job half way through, as politics takes over. He must know that he has just 5 more years to go, if not 10 and he must do so many things more!! And he, as also all of us know, there may be another 20 years before we have another phenomenon like Modi.