‘To those that work in acres not hours….we thank you’
NSO released GDP report card for the first quarter of 2020-21 in the month of August showing an overall contraction of 23.9% year-on-year, making it worst quarterly performance in past 41 years and bringing Indian economy among the list of worst performing economy across the globe. The reasons are quite obviously many of the experimental policy decisions and their poor-implementation, which have left our economy lost in this fast-pacing world. Adding fuel to the fire, due to the lockdown imposed during pandemic, all the sectors were on a halt, except for agriculture that kept on moving and sustaining many lives. Where every sector was struggling with negative figures, agriculture sector witnessed a positive growth of 3.4%. But it appears as if this only growing sector is the next target of government for their experimentation and which also might probably be forced to witness negative figure.
‘Jai Javaan-Jai Kisaan’ is one of the most used slogans by the successive governments dedicated to Indian farmers, but the number of farmers committing suicide every year tells us the reality of how much do we really care and are concerned about the farmers. On June 5, three agricultural related ordinances were passed by centre, which have now been replaced by the Bills controversially passed by both the houses of Parliament. Since the promulgation itself, these ordinances have created an air of agitation, anger, uncertainty and disappointment amongst the farmers. Despite being denied to carry forth protest-rallies, more than hundreds of farmer from Bhartiya Kisaan Union, traders and others especially from Punjab-Haryana region came on road by tractors for ‘tractor protest’ and chanting slogan of ‘Kisaan Bachao-Mandi Bachao’ to oppose these ordinances. There comes the associated question related to this matter i.e. why and for what were the farmers protesting? What were the suggested changes by these bills? And why it should be a matter of concern for us?
Turning to the traces-
The footprint of these issues can be traced back to history when farmers used to be continuously exploited, firstly in the hands of colonial rule followed by big landlords, moneylenders and traders because of small landholdings, outdated agricultural equipments and practices. The small and marginalized farmers were forced to remain in state of perpetual poverty and debt trap.
Advent of new market players/ray of hope to farmers [ECA, APMC and MSP]:- Taking into consideration all the past experience and exploitation of farmers, government introduced Agricultural Produce Marketing Committees (APMC) act. This was intended to create a ‘chain of regulated markets’ in which at state-levels some special areas were converted into ‘market-areas’ called ‘regulated-mandis’ under the jurisdiction of these market-committees. From enactment of this law onwards, all the matters related to regulation, control, licence granting, collecting tax from farmers and trading in ambit of these mandis were done by APMCs. Additionally, the farmers were promised of ‘minimum support price’ [MSP] which refers to the ‘price floor’ at which the government will buy unsold stock of agricultural produce from farmers. MSP can be considered as a kind of incentive to farmers to motivate them to continue with cultivation, i.e. an assurance to farmers that whatever remains unsold, will be procured by government.
The Essential Commodities Act, 1955 was enacted by governments to protect the interest of consumers as well. This act ensures availability of certain essential commodities listed under this act such as petroleum, fertilizers, drugs and various other agro-products. The governments controls and keeps a check on production, supply and trading of these and can impose reasonable restrictions on stock holding capacity of the listed items as and when required.
Act Accompanied by loopholes:-
Despite being implemented with good intent, these were also not flawless. The autonomy to grant license to the traders rested completely at discretion of APMCs. The traders also started forming cartels to collectively influence the market-price so as to promote malpractices of hoarding and black-marketing. The trading and Food Processing Industries were unable to store beyond prescribed limits. Thus, despite seasons of bumper harvest, traders and FPO failed to transfer high income to farmers. All these put-together contributed towards failure in developing a vibrant marketplace and withheld development of agro-value-added chains.
Present picture & proposals:-
According to RBI reports, during 2011-12 to 2016-17, mere 0.4% of GDP was the public investment in agriculture sector. Moreover, out of total farmers, merely 6% of farmers are covered under MSP regime which implies 94% of farmers are in non regulated markets i.e. outside the umbrella of APMC. So this broadly created two divisions of regulated and non-regulated markets.
The recent bills passed related to agriculture namely ‘Farmers Produce Trade and Commerce [Promotion And facilitation] Bill 2020’, The Farmers [Empowerment and Protection] Agreements on Price Assurance and Farm Services Bill, 2020 and ‘The Essential Commodities [Amendments] Bill 2020’ are said to create ‘one nation-one market’ for farm produce. It is one of the neo-liberal ideologies which believe in ‘free market’, where farmers and traders are free to carry out trade with the least intervention of government and markets are basically more of a profit oriented instead of welfare orientation. These bills seek to provide necessary freedom to farmers to sell their produce wherever or whomsoever they wish to sell throughout the country. It is argued that it is a step towards ‘Integrated Agricultural Domestic Markets’. The stock-limit will be imposed under exceptional circumstances. There will be ‘no tax outside’ these Mandis.
New nexus of Farmers’ Woes
The steps taken in this direction will lead somewhere towards the corporatization of agriculture, where MNCs, corporate and business firms will be effortlessly in a position to exercise monopoly control over industry and further exploit these small and less-educated farmers. There is a possibility of promotion of hoarding amongst middleman. There is a sense of uncertainty amongst the farmers that no APMC also implies no more MSP to farmers and no check on exploitation of farmers as well. Furthermore, the freedom to sell their produce anywhere already resides with the farmers. Also, there are number of farmers who are not able to sell their produce in the nearby district, it is preposterous that they will benefit from the outside open market.
If we notice carefully, America, France and Europe are amongst those developed countries which walked on this path of free market and witnessed a terrible failure. The farmers over there have been surviving on the subsidies provided by government. Then on what basis, India a comparatively less developed amongst them can expect that this kind of failed model will work for us?
Way forward:-
Farmers are indeed an indispensible part of our life and this fact can’t be denied by anyone. It was because of their hard work that we could fill up our stomach even in time of adversities like this pandemic and we hardly show any gratitude towards them. It’s much easier to sit on a comfortable chair and decide to alter future of many, but working on fields in scorching heat takes up the real test. The need of hour is effective implementation of ‘TOP to Total scheme’ under ‘Operation Green’ through proper check on volatility in prices of fruits and vegetables and to further strengthen the APMCs by trying to address its loopholes. Linking all the markets including APMCs, private markets yards etc. with eNAM, building a strong market infrastructure through agro-infrastructure fund, further strengthening procurement of oilseed and pulses, promotion of land leasing to ensure success of contract farming, organizing small and marginal farmers into FPCs to reap benefits of economies of scale and there should be a quest to further continue and strengthen MSP and increase its ambient. Only then we would be truly offering tribute and testimony for improvement of farmers’ predicament.