Arabian Sea

If Modi’s Centre agrees on MSP, it would be betrayal of India & its farmers

(This is a reprint from NewsBred).

Most of us know that the fate of farmers’ agitation depends if the Centre agrees to their guaranteed Minimum Support Price (MSP) demand on Thursday.

So what’s MSP?

MSP is the price at which the government purchases crops from the farmers. This was first announced way back in 1966-67. It was for wheat only which again is in the focus. Green Revolution had brought in surplus in the agriculture market and the farmers needed to be saved from falling profits. Now of course this MSP extends to two dozen crops, announced at the beginning of each season of Rabi and Kharif.

So, if the crops have had a bumper harvest, the government purchases at the MSP to make up for the farmers as the surplus drives the market price down. The government decides on MSP after recommendations from state governments, ministries and dedicated Commission. There are other factors like drought and floods which matter.

Sure, the MSPs are not static. In October 2019, the government had increased the MSP of rabi crops. In June this year, in order to help farmers, the Centre increased the MSP of 14 Kharif crops. (A week later though, thousands of maize farmers from Madhya Pradesh sat on a Satyagraha Andolan. They too wanted an MSP on their produce.)

Since 2009, the MSP on a crop is based on cost, demand, supply, changes in prices, market trend and international prices. The cost of labour, as per market rate, is also factored in.

So look at it this way: if the harvest is bumper, and the market price is low, the MSP would make up for the shortfall. Now keep this at the back of your mind: For the market price could be MANIPULATED.

And who manipulates market prices? Those who control market. In today’s India, the market is controlled by big mandis, who in turn is controlled by big farmers, who in turn are hand in gloves with the politicians and secessionist forces.

Here is the catch. There is only a certain percentage of crops which the government buys under the MSP. The farmers still have to go to mandis nearby for the rest of the crops which are controlled by middlemen at the behest of rich farmers and politicians. Invariably, that price is kept lower than MSP. A farmer still ends up as a loser.

An examples. MP farmers were on “Satyagraha” this June because the maize MSP was Rs 1,850 but in market it was Rs 900-1,000 per quintal. Now look at this double whammy in simpler terms: I am a farmer, the MSP on my crop is Rs 100 which the Centre has calculated on the basis of my costs which, say comes to Rs 80. But the market is selling it at Rs 60. So I am not only losing out on MSP even in market I am getting Rs 20 less even on my investment. Go figure that out.

Let’s take the reverse of this example. Let’s say the harvest is low on cereals. Now almost two-thirds of the total cereal production is through MSP. Only one-third is left for open market. So if the harvest is low, the farmer can’t make most from the rise in demand. He has to depend on the MSP which could be lower. He can’t make profit. So, if a farmer leaves producing cereals, it affects consumption pattern of citizens too.

Does one know what MSP does to India’s trade with other countries? Many have complained in the World Trade Organization (WTO) against India. Australia has complained on what, US and European Union have on sugarcane and pulses. These MSPs have been termed trade-distorting, breaching the 10 per cent norm for subsidy on farm production, set down by the WTO.

Sure, this piece is not enough to bring an entire White Paper on MSP but an additional point need be mentioned:

States could now intervene in the agricultural markets to ensure that the prices don’t fall steeply. The losses States suffer, 40 percent of it would be borne by the Centre. (In case of north-eastern states, it’s up to 50 percent).

Do you know that the Organisation of Economic Cooperation Development and the Indian Council of Agricultural Research (OECD-ICAIR) reported that farmers lost Rs 45 lakh crores (phew!) due to manipulated pricing between Rs 2000-2017?

Do you know that the Shanta Kumar Committee in 2015 reported that only 6 per cent of the MSP could be received by the farmers, implying that 94 per cent of India’s farmers were deprived from the benefit of the MSP. That only a crore out of 14.5 crore farmers benefitted out of MSP?

Do you know that In 2016, NITI Aayog had revealed that only 10 percent of the farmers were aware of the right prices before the sowing season?

It would be a huge betrayal of India if the Centre was to agree to the agitating farmers’ demands of fixed MSP. The talks are bound to fail and must fail. If they don’t, BJP would lose support of majority of Indian farmers, not to say millions of Indians like me who want this caucus, this nexus of corrupt and secessionist forces driven into the Arabian Sea.

 

 

 

Why Indians need to see more of the country they live in

(This is a reprint from NewsBred).

Indian prime minister Narendra Modi may not have nudged we Indians into travelling more often in India than we do abroad but he surely has invited attention and it’s a good enough Independence Day intervention from the man who is master in making you reflect.

Modi wants us to make at least 15 travels within India by 2022 when India would be a young 75. Figures of 2016 show Indians already travel more within (1613 million) than they do abroad (21 million) but that’s a coarse understanding. We all know we spend five times more abroad than we do while travelling within. There is a kick when you pack your bags for Sweden than when you do it for Sarnath. You feel equal, if not superior, within your family, friends and neighbours.

All of us who travel abroad screw up their noses at hotels, transport, infrastructure, squalor and surging humanity which surrounds our own popular tourist destinations—all this of course without visiting much of India!  Yet, they are right. Just imagine our religious (Mathura, Vrindavan, Tirupati, Vaishno Devi), scenic (Ooty, Shimla, Mussoorie) or Hilly terrains (Manali, Darjeeling) and a Bangkok or Kuala Lumpur begins to make much better sense. That surely is much better value for your rupee.

Yet, think.

India is a country which has all but Himalayas bound by Arabian Sea, Bay of Bengal and the Indian Ocean. Amazing rivers (Ganga, Yamuna, Brahmaputra, Indus) are its rich veins. Incredible waterfalls dot our interiors. Wildlife like rarely elsewhere; deserts as daunting as Thar; forests as dense as Sunderban or Gir; caves carved like ones in Ajanta or Ellora; temples like Rameshwaram and Khajuraho which knock your breath out; forts like ones in Agra, Jaipur or Mysore; lakes in Nainital or Ooty; hill stations like Coorg and Shimla; snow-capped peaks which can soar young to do adventure as they do to meditate or brood over the profound for the elderly.

Come on, no less than 37 venues are World Heritage Sites authenticated by UNESCO in 2017.  These are parts of India’s rich cultural, historical and religious heritage.

Modi concedes India needs better infrastructure for its tourist destinations. And his solution offered makes so much sense. More footfalls would bring more investment; and better infrastructure would usher in more jobs for our young and restless. Technology would make inroads at so many levels. Administration would’ve much more funds to police as well as to beautify the location. Theatre and dance; artistes and artisans; local culinary and skills all get a fillip.

And if you think India is lightweight on matters of tourism think again. The World Travel and Tourism Council tabulated that tourism generated Rs 16.91 lakh crore (US$240 billion) or 9.2% of India’s GDP in 2018 and supported 32.673 million jobs, 8.1% of its total employment. The forecast is of 6.9% annual growth rate to Rs. 32.05 lakh crore (US $460 billion) by 2028 (9.9% of GDP). And we are not even talking of medical tourism which is already worth US $3 billion in 205. By next year, it’s expected to be worth US $7-8 billion.

While reflecting on India and its inbound travelers, Tamil Nadu is the most visited state. Just reflect on the names of Kanyakumari, Rameshwaram, Ooty and Kodaikanal and you would know why. Interestingly, Uttar Pradesh is the second most visited of all Indian states by domestic travellers. Be it religious sacredness of Mathura or Varanasi; Prayag or Sarnath; Ayodhya or Vrindavan, forts of Agra; the regal nawabi heritage of Lucknow, UP is far more richer than is given credit for.

Most southern states are in India’s top 10 tourist destinations but for Kerala which is surprising given God’s Own Country has Alleppey and Munnar to boast of, among others. Rajasthan, surprisingly, is on number 10 for it just doesn’t alone have magnificent forts but also Pushkar and much-revered shrines. And we haven’t come to talking of Goa, Andaman, Leh, Puri, Amristar, Bodhgaya and Shirdi.

And as Modi said, ever wondered on the magnificence of North East? Cherrapunjee, most won’t know, is in Meghalaya after all.

The Travel and Tourism Competitiveness Report 2017 ranks India 40th out of 136 countries. It’s air transport (32nd) is rated good and the one on ground (29th) is reasonable too. The country also scores high on natural and cultural resources (9th).

But let’s be grounded for the moment. Just think of the benefit domestic travel would do to bring different cultures, languages, food and customs closer within our own contours. It would improve brotherhood and remove alien-ness. Besides, as Modi said, we would only be deepening our roots in this sacred land. Generation next too would retain the bond.

“Mitti, paani, hawaon se nayi urja prapt karein (Gain new energy from the earth, water and winds of this land)” was the exhortation Modi made from the ramparts of Red Fort in the Capital on the Independence Day on Thursday. If all of us do it, we would be enriching both us and the country we live in.