Tuesday, February 27, 2007

Banks Loan Recovery Operations in Vidarbha

While the IAS bureaucrats in charge of Relief operations in Vidarbha, like Shri Sudhir Kumar Goyal, are vigourously denying, forcible recovery of loans, from indebted and defaulting cotton farmers in Vidarbha, by banks and private money lenders, Vidarbha Janandolan Samiti alleges that most of the farmers were the victims of ongoing loan recovery drive of the banks.
The much hyped Prime Minister Man Mohan Singh's Vidarbha Relief package, had promised the farmers would get at least one year moratorium on recovery of loans.

However, it seems the Loan Recovery Operations picture on the ground is starkly different. Shri Goyal has already stated that "no government on earth can subsidize 60% of the farmers".
All bank managers have loan recovery targets, and are busy forcefully recovering outstanding amounts from farmers using new techniques and methods.
It now seems the banks have decided to collude with state-run Cotton Marketing Cooperative Federation, the main cotton procurer in Vidarbha, during selling of raw cotton.
Moreover, banks have also launched their loan recovery drive knowing that the Vidarbha cotton farmers are drinking water from a leaking cup.
In the face of this double bind of seeing the daily dance of death in his districts, between helpless farmers and Congress politicians, the Relief Commissioner has donned the cap of a philosopher, and is busy advocating to the media, that the high cost of agro-inputs and meagre price of raw cotton produce, is to blaim for the misery of suicidal farmers.
How long this situation will last, and a new Relief Commissioner takes charge from him, remains to be seen.

Saturday, February 17, 2007

Bureaucrats Shed Crocodile Tears in Vidarbha

The recent interview given by Shri Sudhir Kumar Goyal, Divisional Commissioner, Incharge Relief, Amravati, Maharashtra, shows that politicians are pressing the bureaucrats into action for fire fighting in Vidarbha.
Shri Goyal has tried to shed a few tears, for suicidal cotton farmers, of Vidarbha, and rattled off figures of how much interest waivure, has been provided to the farmers on their loans. He says no government in the world can subsidize 60% farmers. He however, is pointedly silent on why these loans were advanced to farmers in the first place if cultivating cotton in Vidarbha is such a risky proposition. Did the ministers, government departments and senior responsible officers,not know that cultivating resource intensive cotton in Vidarbha is a risky proposition ?
I wish to point out some of the cotton export figures of India for the period January 2006 - September 2006 to show how Shri Goyal is trying to deflect attention from governmental dishonesty.
US Imports from India : Rise in percentage from previous year in same period -
1. Textiles and Apparel : 16.75% rise
2. Yarns : 136.96% rise
3. Fabrics : 27.36% rise
4. MadeUps : 8.53% rise
5. Apparel : 11.32% rise
6. Cotton Yarn : 209.66%
7. Cotton Fabrics : 22.11% rise
8. Blue Denim : 351% rise
9. Knit Fabrics : 150% rise
10. Cotton Hosiery : 358% rise
11. Cotton Bed Linen : 25.15% rise
12. Terry Towels : 47% rise
13. Cotton Apparel : 17.30% rise


Category Jan/Sep 2005 Jan/Sep 2006 %change % share in World Total for Jan/Sep 2006
World 300 364.656 336.993 -7.59 100.00
301 452.106 480.383 6.25 100.00
Total 816.762 817.376 0.08 100.00

India 300 5.301 8.828 66.53 2.62
301 15.628 62.520 300.06 13.01
Total 20.929 71.348 240.90 8.73

China 300 1.703 8.926 424.16 2.65
301 16.703 5.164 -69.08 1.07
Total 18.406 14.090 -23.45 1.72

Pakistan 300 157.856 166.951 5.76 49.54
301 131.361 145.280 10.60 30.24
Total 289.217 312.231 7.96 38.20
300 – Carded cotton yarn; 301 -- Combed cotton yarn
Conversion factor: 8.5 SME = 1 Kg.

The TEXPROCIL informs us "It is remarkable that Indian imports have grown from 5.301 MSME to 8.828 MSME. This performance is all the more commendable because in a falling market, India has shown a growth and that too when in the corresponding period of the previous year, the performance was meagre.."
"..The growth in case of India for Combed cotton yarn (Category 301) is tremendous rising from 15.628 MSME to 62.520 MSME. Looked at differently, the growth in imports of this product from all sources has been to the extent of 28.277 MSME of which the maximum has been on account of imports from India alone. Compared to this, imports from China have declined by 69%.."

Does Shri Goyal think that Indian cotton farmers are so foolish, as to accept his prescriptions regarding the reasons for their suicides ? How can he even think of insulting the cotton farmers of Vidarbha like this, in the face of the strong surge in Indian cotton exports ? Maybe with such intellectually dishonest bureaucrats, to look after them, the Vidarbha cotton farmers are better off having no hope rather than listen to such patently absurd agricultural prescriptions.

Incredible India. The only country where bureaucrats in the garb of Relief Commissioners have the job of giving sugar coated pills to farmers, instead of bitter medicine.

If Indian cotton exports, are doing so well in US markets, even against suppliers like China and Pakistan, why are the cotton growers of Vidarbha only only facing the prospects of suicides and sugar coated pills from senior bureaucrats shedding crocodile tears ?
Check out the cotton export figures for yourself and ask Shri Goyal what new story he wants to tell Vidarbha farmers ? - http://www.texprocil.com/monthly/usaqty_sep06.doc

Shri Goyal claims that the cotton farmer has become a bonded labourer on his own farm who cannot afford to even pay wages. The real answer he does not provide is whose bonded labourer is the Vidarbha cotton farmer ? Who is benefitting from the bondage of the Vidarbha farmer ?

But then maybe, Shri Goyal is after all, fire fighting on somebody else's behalf, and is just trying to concoct excuses and stories for his political masters. After all, everyone has to earn a living.

Friday, February 16, 2007

Is India Subsidizing Bharat ?

The recent interview of Shri Sudhir Kumar Goyal, Divisional Commissioner Amaravati, in charge of Relief, and ex Agriculture commissioner of Maharashtra, who was shunted out for advocating low cost agricultural practices raises some very interesting questions.
The first question is why is he raising this issue of low cost agricultural practices, now at this stage of the Vidarbha farmers suicides saga. Considering that he has been an integral part of Maharashtra agriculture stratgey, and indeed a central player, this realization of his, comes at a very opportune moment.
... jab chidiya chug gayee khet ...
It seems Shri Goyal wants to shed a few tears for suicidal farmers.
He says ...." My heart goes out for those who ended their lives, out of acute frustration, and for their bereaved families, even as I am worried about those caught in the web of a flawed system."

Senior bureaucrats are not happy trying to pick up the mess created by political decisions of politicians and ministers. However, Shri Goyal does seem to think that he has a message for the farmers.
The irony is that he is confusing political decisions with bureaucratic good intentions, and not clarifying why he is feeling sorry for suicidal farmers at this stage.
One Shri Goyal is not going to stop the spate of farmer suicides.
Shri Goyal is not mentioning the fact, that the decision to push cotton farming in the water scarce regions, was a political decision taken by his political masters rather than by him. He was merely in charge of implementation.
It is not often that a senior bureaucrat goes on record, to make statements that are actually an attempt to pick up the pieces, of decisions taken by political leaders. That the issue is much more serious than the ambit of a Divisional Commissioner is not in doubt. But that political leaders are using bureaucrats to make statements on the political decisions concerning agriculture, makes this statement of Shri Goyal the first of its kind.
The question is who should we believe, Shri Goyal or the political masters of Shri Goyal. Who is really responsible for the mess in Vidarbha ? Who is really responsible for cost intensive farming in unirrigated areas, ministers, bureaucrats, agriculture extension colleges, private companies, moneylenders, banks or the farmers themselves.
Why did the government banks advance loans, if they knew as Shri Goyal, in all his wisdom now knows, that cost intensive farming in non irrigated areas is a high risk proposition ?
And then, are the farmers in the irrigated areas, doing cost intensive cultivation becoming the crorepatis and doing better ?
Maybe the Divisional Commissioners of Punjab, the IAS brothers of Shri Goyal, will tell us yet another twist of this story of agrarian failures in India and the collapse of Green Revolution.

No government on earth can subsidize 60% Farmers

Dr Sudhir Kumar Goyal, Divisional Commissioner, Relief, Amravati, in an interview, has said that immediate relief had been given to farmers where interest worth Rs 782 cores had been waived off. But the entire loan cannot be waived. "Subsidies are given. But no government on earth can give subsidy to 60% of its farmers."

The Vidarbha farmers have been given fresh loans, which Dr Goel said was three times more than in the past.

This is called "singing a tune as per the ears of the listener". This is a sure indication that Congress political bigwigs are beginning to wake up to the rural crisis in Vidarbha and are being given instructions to dirty their white cotton linen kurtas and designer goggles. Politicians are now instructing bureaucrats to begin to appear reasonable and avoid the image of apathy and callous behaviour towards farmers.

After years of hiding the facts, then cautiously being forced to admit it, in the face of rising media pressure, local government officials have begun to sing a different from the tune that is being sung by the Indian Prime Minister, the Sensex Minister and the Cricket Ministers.

Let us see in which direction, the issue of Indian farm suicides heads now. Congress cannot risk an electoral rout in Vidarbha. It is now a matter of time before top Congress think tanks begin to look at the issue of agrarian suicides. And yes, they will first ask the Indian bureaucracy to shoulder the blame rather than take the blame on faulty agricultural prescriptions of last six decades which skim rural surplus for industrial subsidization.

Attempts will now be made to blame the plight of Vidarbha farmers, on faulty implementation of the Vidarbha package announced by the Prime Minister.

The real question not being asked is why, when the richest consumers on earth are shifting to wearing cotton, cotton growers in India are committing suicides.

Linen suits retail for Rs 8000, and cotton trousers are retailing in Western markets for Rs 2500.
The WTO Multi Fibre Agreement is rolled out and yet the Vidarbha cotton growers are suffering.
Should they not have been the richest farmers in the world by now ?
Is the Divisional Commissioner of Amravati not still talking on behalf of his masters and trying to sell a new story to the cotton farmers of Vidarbha ?

We will now hear many different perspectives on why farmers are committing suicides but people are still not ready to do a stock taking of the last six decades of New Delhi and Mumbai backed plunder of Indian rural areas.

Friday, January 19, 2007

Daksha Ignores Shiva

In Hindu mythology, Daksha is regarded as one of the progenitors of mankind. Daksha is also known for being the father in whose house, Uma or Parvathi took birth. The great yagya instituted by Daksha, is known to many Indian villagers, who believe in the virtues and faith of Parvathi, as representative of the family devotion that a married woman is expected to have in the Indian rural setting towards her duties and well being of her family.
Needless to say, India is no more the same India, nor is Bharat the same Bharat. Bharat from which India took shape, is these days trampled by urban interests and neglect. We now hear that after farmers of Vidarbha, Maharashtra, Andhra, Kerala, farmers of Uttar Pradesh, from where Mrs Sonia Gandhi contests parliamentary elections, are also learning the virtues of desperate mass suicides as the visible face of Indian government's agricultural policies and undeclared farm exit policy.
U.P. farmers too, are joining the Indian farm band wagon, and also taking to suicides, to escape the fate of rural debt, and forcible land and assets recovery operations, that Congress economic policies are leading them towards.
I do wonder, when the Farmer Leaders will give a call for farmers to Quit their Land in the villages and make a mass exodus for Indian urban life.
"Apni Zameen Chhodo" -
Indian urban life, is a fast emerging paradise, that even the likes of Tesco, Walmart, Marks and Spencers, Adidas, Nike, European banks and investment majors, financial services companies, are eyeing with great affection. So why not the Indian farmer ?
Why is the Indian farmer unable to see the charm and attraction of Indian urban life ? Anyone who puts on a thinking cap, knows that is " where the action is ".
Gaon Chhodo, Shahar Chalo - this I am sure is the only solution to the problems of Indian farmers. Chinese farmers of course have restrictions on their migratory freedom. Indian farmers need to make the best of their current migratory freedom, before some legislation in India, bans them from voluntarily leaving agriculture.
Maybe, the Indian farmer is still traditional, illiterate, old fashioned in his thinking, and steeped in traditions, and thus feels hesitant about going to the house of his daughter in law in the cities, to escape his dire situation. But yes, one of these days, the Indian farmer will have to understand that his future, depends on discarding his false pride and moving en masses to the house of his daughter in law (bahuriya ka ghosla), who lives in the city.
There will surely be initial discomforts and hiccups, but overall his situation will improve for the long term better. All the leading so called economic pundits of India, say with a wink .. "afterall, no gain without pain.." Some use more fanciful terms like structural adjustments.
"Bahuriya ke ghar chalte hain" ... this must be the song on the lips of Indian farmers. And of course, there can be some very good lyrics to accompany this song title. And music, oh, just think of the sheer creative possibilities of setting this song to lilting music and celebratory thumkas, dhol and drums, shehnai and guitars, folk as well as modern versions of the songs, will sell exceedingly well in all the outskirts of Indian cities. Who said there is no money to be made in entertainment from rural areas ?
T-Series can bring out a "Top Collections" of Aaj Ke Kisan Ki Awaaz - casette and I am sure it will make some people very, very rich.
"Ab der kis baat ki bhaya, bahuriya ke ghar chalo, bahuriya ke haath ki chai shahar chal ke piyenge, mastee se pade rahenge, TV aur fillum dekhenge ...".
Farmer leaders, need to give this call in every Indian village, and then see how the pessimism of Indian farmers changes to long term optimism. Suicides rates will come down and urban areas will experience unprecedented growth.
Indian GDP projections will go straight out of the roof, foreign investments will shoot up, stock brokers, investment consultants, forex experts, hedge funds and wealth managers will make a beeline for India.
The Indian Finance Minister, Commerce Minister and Agriculture Ministers, will be parcelling out, rapid fire, 5 minute appointment slots, as European business leaders, and trade delegations, line up outside the Delhi, South Bloc offices. Things will become terribly busy for these three ministries and 24 hour days will be short.
China will be forced to reconsider its ban on farmer migrations to urban areas, industrial labour strategies, Special Export Zones, as it feels that the yawning Indian Tiger will shoo away, if not swallow, the Chinese panda. Maybe, in return, the border row will also be forgiven and forgotten, as Indians and Chinese premiers, embrace to kiss and tell and sell. They will wonder how the Indians have woken up to the powerful strategy of an undeclared Farm Exit policy, and taken a page from their manuals.
The Chinese will try to read up on the wonderful economic strategy, and whisk away the secret team of economic think tanks, of Indian political and development planners, for trebling growth every Five Years. And mind you, not just wishy washy future projections and PowerPoint slides, but real, solid statistics.
But while everyone will see the merits of this approach to economic restructuring, the Indian farmer may still fight shy of overcoming his old fashioned views of not going to the house of his urban daughter in law. For after all, he stills lives under a " false sense of pride ", and refuses to learn anything at all from the TV soap serials that attempt to mentally prepare him for his urban push and how he must carry himself in the cities.
And yes, to delay his decision, on this uncomfortable lifestyle choice, he will raise silly, diversionary questions.
Like ...
... who will look after the village lands in my absence, will they not become fallow ?
... who will feed the birds that gather daily around me ?
... who will reassure the buffalo and her calf every morning at dawn ?
... What if the daughter in law refuses to make chapatis ?
... What if I nostalgically miss the village banter of childhood friends around the hookah ?
Yes this is certainly tricky, and maybe some expensive psychiatrists, corporate gurus, motivation pundits, lifestyle trainers, can be persuaded to offer motivational sessions for Indian farmers as they ponder the question of significant lifestyle changes.
For after all, reading the writing on the wall, is what all consultants are about. Swallow the bitter pill now else...a stich in time, saves nine...etc, etc
After all, a sniff of the countryside will do them also some good, now that six lane excellent highways have been laid for their Toyota Corollas, in the name of upgrading rural infrastructure.
As regards, the farmer assets, left behind in the villages, no need to worry, Indian bankers, economists, agricultural scientists and Planning Commission, can take just what they want... maybe we can have a whole range of new, innovative, courses in Agricultural Research and Extension Institutes on - Best Practices for Leaving Fertile Land Fallow - How food crop seeds can be treated for 5 year delayed harvest - after all who in his right mind wants to do Contract Farming in the villages of India ?
Maybe switch roles for 5 Years and see the success of this Alternative Five Year Plan ?
Any ISB Hyderabad grads out there who want to try this strategy of making India a Global Power ? If the Railway Ministry can inspire Kellogg and American management under grads, why cant we inspire ISB grads ? The whole world has its eyes on us now.
Think outside the groove... that is what they say, dont they...

Thursday, November 30, 2006

CandleLight Vigils - Mohan Dharia

The sheer logic of Indian democracy becomes evident, when the politician is forced to go back to the electorate at least every five years. The electorate also knows very well, that next time, they will see the politicians emerge, from the corridors of the various Sabhas - Lok, Vidhan, Rajya, etc, will be about four and half years later, unless of course there is a court decision or some such toppling of the cart.
There is no doubt that after the whirlwind tours of Shri Man Mohan Singh, and Maharashtra Chief Minister to the Indian killing fields - farming lands - the politicians lower down in the pecking order, would all feel they have been pardoned from making a beeline for the rural countryside and spoiling their white linen kurtas and designer goggles.
The Indian Finance Minister, of course thinks that, when there exists an Agriculture Ministry, and a Planning Commission, for super annuated politicians and retired farm leaders like Sharad Joshi, Ajit Singh and Tikait, there is no need for him to even open his mouth, on Indian countryside and farm issues. His remit is basically stock markets, and the tax system, pulling the strings of the IRS bureaucracy.
The countryside, ah, the votes are still there. Of course, the politicians might do so a bit sooner, if Sonia Ji decides to jolt them, bolt them, or scold them.
Some people are surely now playing a wait and watch game. Where this issue of Indian farmer suicides will now go, and how much of an impact it will have on election prospects for Congress in the next elections ? These calcualtions will soon begin in earnest.
As always, with the loyalties and royalties, well known inside Congress, people are wondering when Mrs Sonia Gandhi, will take on the image and role of Mrs Indira Gandhi vis a vis the Indian farmers and the Second Green Revolution. Mrs Indira Gandhi created an entire infrastructure of institutions to solidly underpin the first Green Revolution.
This Mrs Gandhi is only talking of Second Green Revolution, lulled by the Leopold and Oxbridge awards.
It is only when she decides to take note of the farmer suicides, that the scramble for farmer votes will be activated by push button, within Indian Congress party. Till then, it is wait and watch, apart from cursory suicide figures, being read out from a note prepared by an IAS bureaucrat, by Shri Sharad Pawar in Lok Sabha. Till then, business as usual for Mr Chidambaram, RBI Governor and Congress politicians.

Thursday, November 23, 2006

Mohan Dharia - Farm Debt Campaign

Farmer organizations of India need a two pronged strategy, to make the campaign on farm debt successful. At one level, they have to seriously consider the strategy of leaving their fields fallow for one year, growing only food grain crops for their family consumption, rather than the domestic or export market. This will assist the politicians like Shri Sharad Pawar and economists like ManMohan Singh and Montek Singh Ahluwalia, in importing foodgrains, from global markets, to their heart's content. This would also help in India, making a rapid entry into the good books of USA and Europe, and in lieu, getting their support on the nuclear and Security Council issues.
Secondly, farmer organizations must convince farmers that agricultural land is by no means a boon in modern India, rather, it is a liability for themselves and for their next generation. The sooner they discard their precious land and move en masse to cities, the better off they will be. If at all the Indian politicians, want them to remain chained to agriculture, the Government should take over ownership of all their agricultural lands, reorganize it into large profitable holdings, retrain farmers on how to adopt modern agricultural practices, and employ farmers, on a fixed salary, that is enshrined in the Sixth Pay Commission recommendations. This will be the correct way, of ushering in the Second Green Revolution in India, rather than just exhorting ignorant and bewildered farmers to stop taking their lives, and linking up with private sector and contract farming. Modern modes of production riding on the back of reorganized agricultural land, American agricultural practices, B-school management and marketing talents, snipping the farm dependant population of India to 10% of India's population is the only way forward.