(This is a reprint from NewsBred).
Farmers want trouble. They now even don’t want MSP or APMC.
Let’s say there are two sets of demands of farmers: One concerns MSP and APMC. The other is a host of other issues including electricity, matter-in-civil-courts-only, no-hard-penalty-on-stubble etc. If the government is making concessions on all these issues and still the farmers bring placards of “Yes’ or “No” to Vigyan Bhawan, what inference do you want to draw?
You think private players are the root of trouble? That they would hold “poor farmers” to ransom? But since when have wheat and paddy been produced in factories? And even if elephants do fly, how would it take away your MSP. Do you need be told that more paddy from Punjab was procured at MSP jthan at any time in India’s independent history? That the first record it broke was in 2017-18 with 176.61 lakh tonnes procured. That it has bettered this year with 202.77 lakh tonnes procured. How could private players deprive you?
Be that as it may, farmers are at Delhi’s gates. They have laid siege to the Capital. And they won’t go away in a hurry. The “poor farmers” have also brought in their women and children and elderly. In Delhi’s cold and with Covid-19 surging, they have both power and persuasion as their aces. Where do we go from here?
One, simply throw this notion out of the window that the next round on December 9 would see a breakthrough. There won’t be one, on Wednesday and in other rounds if they occur.
Farmers feel they have nothing to lose, at least for the next few weeks. For they have all the time in the world. If government blinks, the template of anarchy would succeed. If it doesn’t, agitating farmers hope it spins out of control.
You see, Punjab farmers are free because paddy season is over. It has been sowed, reaped and sold in Punjab. The next one of wheat has also been put into fields. Harvest is only due in April. Farmers have 8-12 weeks to dance on Centre’s head.
What options Centre have? Clearly, it doesn’t want to use force and it must not. It doesn’t want to lose the perception battle. It’s not a communal matter, it concerns the “annadatas” of the nation and before you know it, this entire farce would morph into something entirely different and all those infamous slogans of Modi-baiters—“Democracy in Danger”, “totalitarian India”, “Hindu extremists”—would fill the air. The prepaid media would be rubbing their hands in glee, and EU, UN and US Congress would be practicing in front of mirror which finger looks best on camera.
So farmers want to appear “peaceful and vulnerable.” Centre is “sympathetic and caring.” Both are engaged in perception battle. We know on whose side the propaganda is. Where does Modi go from here?
Let’s look at how the next few days could unfold. Centre: we are agreeing to all what you want. So why still have the agitation? If you want the three Farm Acts to be repealed, only the Parliament should take a call. After it, it was the Parliament which turned those Bills into Acts.
Farmers are unlikely to accede. For it could be back to square one. They would insist: Scrap the Acts. One, they have only a few weeks free. Thereafter, it’s wheat crop. Time is critical here.
Government could respond: Are you representing all farmers of India? Could we take a referendum please? Let India’s farmers take a call whether a simple majority want “Yes” or “No” on Farm Acts. Modi would obey it as “janadesh.”
What, you are still not ok with this? So let’s do one this thing: We know 40 farmers’ unions are leading this agitation. That’s why they have a seat in Vigyan Bhawan. You claim to be voice of India’s farmers. Could we see how many members you have on roll? You and I both would know if you are voice of India’s farmers.
This is a battle of attrition. An exercise in perception. Farmers are losing it from time to time—like calling for “Bharat Bandh”—and declaring “effigy burning” (did it really happen on Saturday?). It’s called “muscle flexing”; “baring teeth” to scare the opponent. They also want to project it’s not just Punjab but farmers of rest of India who are agitated. December 8 either way won’t offer a clue. Farmers of Western Uttar Pradesh, for example, won’t stay around for long. The sugarcane season would beckon and this agitation can wait.
So Modi won’t lift a baton. The only course open to him is the Art of Persuasion. If farmers still want to agitate, they would have to explain why now. Farmers can’t lose time. They can’t also be anything but peaceful. So stay put if you want. You might win the Battle of Propaganda. And lose the War on Reforms.
(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.
(This is a reprint from NewsBred).
Let there be no doubt that it’s not about farmers. Think of all the reasons you could and I would demolish it clinically.
MSP? “Farmers” are worried that Minimum Support Price is not guaranteed. That private players would manipulate them in future. Now when the prime minister Narendra Modi has assured MSP in the Parliament; and the Centre needs free foodgrains for 80-crore citizens, there is no way “farmers” wouldn’t get the MSP.
Unconvinced? Let’s look at the figures.The agitation is about wheat and paddy, right? Now between Punjab (69%) and Haryana (25%), some 94 percent of all wheat and paddy is procured. It’s only going up. In 2019, the wheat bought was 34.1 million tonnes. This year it’s already 38.9 million tonnes. In 2019, the Centre had bought 26.6 million tonnes of paddy. This year, it’s 31.6 million.
So, if the agitation is only about wheat and paddy, and MSP on it, what’s the problem here?
APMC? The “fear” that mandis would be bypassed. Really? Does the Farm Acts say so? Is allowing farmers to sell anywhere they want under APMC is doing away with APMC? How is more freedom spun into less freedom narrative? Who else dominates APMC but rich farmers, powerful traders and entrenched politicians?
Unconvinced? Let’s pour over statistics released only this September. Punjab has 31 percent Scheduled Caste population. Yet only 22 Dalits received aid under PM Kisan Samman Nidhi Yojna. Why? Because this set doesn’t own much of land. The land is owned by rich farmers. In Punjab, only 3.5% of private farm land belong to Dalits. As against, Punjab has the richest of all farmers in India—classified as owning more than 10 hectares of land among all non-mountainous states of India. While the national average is 0.57% of total land in the hands of the rich, in Punjab it scales up to 5.28%.
There is no third argument in this farce. You would ask me if this is so why thousands of farmers have gathered at the gate of Delhi and choked the entrance to the Capital? All I know is that this mob is made up of all kinds: Rich-elite farmers, the people-towing trucks which the politicians are so adept at harnessing. When you have tell-tale evidence of Khalistanis popping up their banners; Popular Front of India (PFI) shouting their support; Delhi’s Arvind Kejriwal opening his “langar” for them; Punjab chief minister Capt. Amarinder Singh not picking up phone of his counterpart from Haryana, you know this is anything but farmers.
So, if this is not about farmers what is this all about? This is about controlling India. About usurping the power. To be the handmaidens of those who are upset at the national narrative of last six years. Those who are frustrated that neither voters nor judiciary is being swayed by their propaganda. The last resort of these losers is to unleash anarchy on the street. To keep drumming Bad Police whenever the cops push back. Police freezes, judiciary is dumbstruck—so what option Centre really has?
The Centre has called the farmers for a 3 p.m meeting on Tuesday. If it takes place, it would fail. It should. Centre has more than Punjab to worry about. It can’t guarantee MSP. It can’t handover a template in the hands of anarchists. If you guarantee MSP, you are dissuading private players from improving the agriculture sector which is in shambles. It needs big investment in tech, seeds, water-capacity. Do you think state governments like Punjab could do so? A state government which even can’t solve the stubble-burning problem? Which levies 8.6 percent tax on farm proceeds so it could offer free electricity and free water? Is it concerned that chemicals in water are now producing Cancer Villages of Punjab?
Let me make another prediction. You would have “farmers” rally in support around India, hogging your newspapers in coming days. At least in Kerala, Telangana, West Bengal, Tamil Nadu, Chhattisgarh, Rajasthan, Maharashtra etc who would also pass resolutions in assembly that they wouldn’t implement Farm Acts 2020. Brussels and Washington would be deeply concerned.
Somehow the students of Jawaharlal Nehru University (JNU), Jamia Millia Islamia or Aligarh Muslim University (AMU) would seek “Azaadi” for the farmers. Our Swara Bhaskars and filmi set of Bhatts and Akhtars and Kashyaps would join voices. Our Asaduddin Owaisi would be worrying about India’s democracy in front of cameras. “Award Waapsi” has already begun.
That’s why I say this is not about farmers.
Now let’s look at the other side. What options the Modi government really has to stop this recurrence of anarchy? It has seen anti-CAA protests and now this Farmers’ Stir which has been whipped up on misinformation, propaganda and the agenda to destabilize India. All in one year. Many more would occur.
Where does Modi government go from here?
(This is a reprint from NewsBred).
Farmers on foot, tractors, trucks have marched from Punjab towards Haryana and Delhi. Along the way, they have faced barricades, police resistance which morphed into tear gas, water canons and arguably some baton wielding. It’s not a pretty picture and the typical hubris of Modi government is painted in our newspapers. The stand off has refused to die down two months after the three Farmers’ Acts were passed by the Parliament in September.
Emotions are running high. So I would cut out the flourish and engage the readers in the simplest of language possible.
So, let’s first work out what the farmers want and what the Centre is loathe to give it to them. The essence of these Farm Acts is that (a) it’s now One Nation, One Agriculture market; (b) that farmers could engage with private players; and (c) No need to hoard the grains.
ONE NATION ONE AGRICULTRE MARKET: It implies that a farmer could sell his produce anywhere in the country. So, if I am a Punjab farmer, and couldn’t look beyond the mandis of the state (read Agriculture Produce Market Committee—APMC) thus far, I could now scan the neighbouring states of Himachal, Haryana or Uttar Pradesh and get the best price on my produce;
FARMERS COULD ENGAGE WITH PRIVATE PLAYERS: Farmers in Punjab are hampered on water and technological issues. The water tables of the state are so depleted that there are “Cancer Villages in Punjab” due to all the chemicals and pesticides. The simplest example on technological issue is the stubble-burning which makes Delhi a gas chamber and which the farmers’ can’t attend to because of the cost involved. Now farmers could engage private players for redemption on these fronts, including seeds.
NO STOCKPILING: The Centre says we have enough food. Farmers’ don’t need to stockpile but for exceptional circumstances. The State government wants to have it say. It’s not a major point in the present confrontation.
Once these three Farm bills were moved, Shiromani Akali Dal walked out of the alliance with the BJP. The Punjab state government of Congress, led by Captain Amarinder Singh, moved a resolution which was passed by the state assembly to override these Farm Acts of the Centre. Yet, the agitation has refused to die down because the President of India hasn’t given his assent to the state assembly’s resolution.
The arguments from the other side, backed by the Punjab state government and passed by the assembly, are these:
(a) The State government could notify the fee on any private or electronic transaction. So if you go to Punjab, as a private, player, the state government could actually levy tax on you (So whither Ease of Doing Business?)
(b) Instead of a few hundred mandis, the whole Punjab state would thus become a mandi over which the writ of the state government would run large;
(c) The Punjab state government says that the procurement of wheat and paddy should happen only on the Minimum Support Price (MSP). If it is bought for less, the state would have the right to punish the private player. The State say we are doing so to protect the future of farmers: What happens if the Centre changes its mind and does away the MSP for wheat and paddy?
It’s the MSP which is the stickiest of all points. The contention that private players in future could hold the farmers at their mercy is unfounded. As of last year, the total procurement by private players in the State was a mere 0.58 per cent. Further, under the Pradhan Mantri Garib Kalyan Yojana, some 80 crores of the 150-crore population are being given free foodgrains. The Centre would always need to procure foodgrains. The incitement to farmers that their future would be held to ransom is fallacious.
Sure, the MSP is not just important for the farmers. It’s also important for the Punjab state government. It taxes farmers to the tune of 8.5 per cent. Last year, the Punjab state government made 3600 crore revenue out of this exercise. This money, they claim, they spend on the welfare of farmers which includes free electricity and free water.
Naturally, MSP suits both farmers and the Punjab state government. Farmers get free subsidies. The State government affords it through taxation, most of which comes from the revenue that the Centre gives by procuring the foodgrains.
The Centre is loathe to guarantee MSP. One, there is little logic as outlined since the government would always need foodgrains. Two, as said, private players are miniscule in this game. Besides, wheat and paddy are not the only produce from Punjab. There is a flourishing dairy industry too. All could benefit if the market is allowed to take its own course.
Arguing in favour of farmers for “free” subsidies is the same if I go to my bank tomorrow and say I can’t pay my loan back because it pinches my pocket. That’s no argument. You can’t run a nation on this premise. Further private players, as said, could provide solution to a lot of lingering farm issues in this country. If the threat of a punitive State action is around, nobody would come forward. The farm situation would only worsen. E-commerce players like Grofers and Big Basket, a win-win for all, would suffer.
Now look at it from another perspective. This issue seems only to concern Punjab. The farmers in the rest of the country have no issue with these three Farm Acts. Wheat and Paddy and that too of Punjab farmers isn’t the entire India and its produce. Could a state hold to ransom which is good for farmers and sectors all across?
Now let’s delve on the political aspect of it. Captain Amarinder Singh and Congress know that the election is only a year and a half away in 2022. This is the right time to make a capital investment. Shrimoni Akali Dal too want to recover its lost ground. It’s BJP, who would fight all 117 seats alone. Who stands to lose the most? One should give BJP credit for persisting in face of such adverse poll logic.
There is also this question of middlemen. It’s not an inconsiderable number in Punjab: At the last count it was 36,000. The Food Corporation of India (FCI) gave them Rs 1,600 crores at 2.5 percent commission last year. They stand to lose the most if the monopoly of mandis (APMC) is done with. They also flourish under the political patronage. Both won’t like the new measures to kick in.