Monday, 24 August 2015

Farmer Suicides and Unified Agricultural Policy - Mr. Nobody's perspective - I




We are hearing the kisan's plight from every nook and corner of Bharat. As a bhartiya it is our moral obligation to look into the matter. The present Kendra sarkar has been following the same policy as its predecessor. Our honorable Vitt Mantri has already lashed out at state run banks that NPA are at unacceptable level. So at the end of the day what went wrong? As far as agriculture is concerned it is employing a whopping 49% of the population. At this juncture of time where the modern technology has been implemented in the sector, still our kisan is unable to enjoy its share of pie. British raj and princely states used the zamindar system for tax collection. At that time the land used to be given to the kisan on a leased basis and his name used to come in the land record as tenant ( patta) . Kisan was not the owner of the land, instead he had to give the percentage of the produce as tax to the zamindar and zamindar used to pay the tax to the local government body. After the independence, the law of tenancy was passed which made kisan the owner of the land and he started paying the land revenue to the government instead of zamindar. When the constitution of tax is still the same, and moreover kisan is now the owner of the land, then why the condition of kisan is deteriorating day by day?

We at Ethmos have tried to analyze the situation and here are few of the problems that are at the root cause of this situation.

Fragmentation of land
The lands are passed on from generation to generation from father to son. The ancestral lands are usually divided among the sons of the father. The overall land holding has been shrinking. Let's take an example Mr. A has 10 acres of land. He has four sons and so ultimately every son will get a share of 2.5 acres. So from generation to generation the landholding is shrinking which makes agriculture quite a difficult proposition.

Crop pattern and fertility of land
It has been observed that in order to earn some extra money farmers have abandoned the mixed cropping pattern. For the layman readers, mixed cropping is very important to retain the fertility of the land.  Many farmers are only going for cash crops, and many of them are repeating it even after completion of the cropping cycles. This is directly affecting the fertility of land which will lead to low yield. It is just like going on milking the same cow multiple times a day without letting her rest or giving her proper feed.  Let's take an example of Mr A who is a sugarcane farmer.  After completion of three crop seasons, he is not going for any mixed crop such as maize, wheat, tamarind etc. He is sowing sugarcane again after completion of three crop seasons to earn money. He is not thinking about the fertility of the land. He is actually on the losing front in a long term scenario since the loss of fertility of the land will lead to lesser produce and more overhead costs in the form of fertilizers and higher water requirement.

The Middle-men problem
This is another big problem in the bag of the poor kisan.  The middlemen are everywhere in the agricultural sector from taking loans from banks or moneylenders to selling their produce in the mandis or the  APMCs as we fashionably call it.  The moneylenders actually create inflationary pressure on the already crushed kisan in the form of brokerage or commission.  And in order to earn more brokerage/commission, what these vermins do is that they increase the selling prices of commodities and also unnecessarily make the poor kisan take a higher loan which they will seldom be able to repay in their next seven generations.  We at Ethmos believe that a Middlemen Control Act has to be enacted across the country for all sectors in order to remove this scourge from the economy entirely.

Kisan's household
The expenses of the farmers household are monthly, whereas the income is yearly. This time gap is actually a big issue for the small and marginal farmers (farmers having lands less than 5 acres) . Usually the small and marginal farmers go for dairy business to suffice their monthly needs. Nowadays due to internet and telecom kranti the mobile phones and TVs are available in the rural household.  Apart from these expenses, the kisan has to pay the school fees of the kids , medical expenses and other household expenses. As we have discussed the land holdings are shrinking and hence the incomes as the income is directly proportional to land holding. Farmers usually borrow money from money lenders to meet their monthly expenses and repay the same from yearly agricultural income. But here is the catch - the farmer borrows for monthly expenses and every month apart from the usual expenses, one more humongous expense is added which is called the interest expense - which can range from 2% to 4% monthly interest of the total borrowed some.  For example, if he borrows say Rs. 1 lac from the money lender, he will have to pay Rs. 2,000/- monthly as interest to the moneylender and this interest is compounded by the end of the year leading to nearly 30% to 40% rise in the interest expenses.  This whole thing forms a vicious circle and hence to gain this extra income, cash crop will be planted by farmer even after completion of crop cycle which will lead to lower fertility of land and higher water requirement.


 Kisan is unable to come out of this vicious circle which ultimately results in the extreme step of suicide.  Kisan is unable to come out of this debt trap as the income is yearly and expenses are monthly. The fact is that the yield of the crop is declining every year and the kisan is unable to return the money that he has taken from the money lender. The cash crop is actually a risky affair as it requires more water, more care and at the end of the day  it is hampering the fertility of the land. If every farmer will go for cash crop then what will happen to the production of crops required as staple diet such as wheat, maize, cereals, pulses, etc. The over reliance of the kisan on cash crop  for extra income will create the food scarcity problem in near future.  Its a high time now that the government should come up with a uniform plan to save the agricultural sector. The loan waiver and restructuring of the loan is not a solution as it creates more burden on the state run banks.



The question is - can we come up with a unified agricultural policy ( UAP)? In the next article, we will discuss about UAP in detail.

Wednesday, 19 August 2015

A thank you letter from a Bank Officer to his Boss! - The Game of Transfers


Dear Sir,


I thank you and my organization for whatever it has given to me during such a short span of my life (just 5 years of service).  My "gratitude factor" has grown so much inside me that now I am no longer able to control the same and it is spilling out of my mind and flowing out towards our bank.  I am unable to control my flow of "gratitudinal emotions" towards our bank that has so well recognized my potential (that we didn't even knew that we possessed!) and helped me realize it to its fullest value.  Not only me, our bank has also realized the complete potential of my family also (my wife and my 4-year-old son) whom our bank has blessed with places that are even hard for Google maps to detect, dialects of languages that are not spoken in the mainland of the states and wherein educational institutes teach in no other languages than the local language (an excellent way to develop the communication skills of the child which tests his brain potential for learning, absorbing, and integrating various languages, dialects, cultures, and cultural shocks).

Not only that, me and my family have learnt the intrinsic art of living like gypsies by keeping minimal items for survival - a la Ultimate Survival of the Discovery Channel.  With your divine blessings, I have served in various rural and semi-urban places in our country, given my best to our bank and generated good profits for our organization, which is of course, giving us our bread and butter (unlike other government organizations which need not worry about profit but only about "expenditure of the allocated budgets.").  And the best part is, you never made our excitement come down.  Just as soon as we feel like we are settled in any of the village and make up our mind for "surviving" 3 years over here, you transfer us out to "another village" in just 8 months.  With all due respect Sir, it take more than 8-10 months to even understand the roads, the place to purchase vegetables, the dairy (if something like that even exists), the gas connection or "chhulha" connection, a doctor for my family (and if we had done any good deeds in our previous birth, then a paediatrician for my child!), and many more things which you may not understand because you did not get the privilege of changing places like me every now and then.

And I just forgot to mention, the zest and adrenaline rush that we feel whenever we are "expecting" a transfer (but most of times, my transfers have been totally unexpected and "unasked for"!).  I want to give a small compliment for your immense talent of being a master of the game of guessing  called "Guess the Branch."  You make the entire process so foolproof that nothing - I repeat - nothing can escape the confines of your office regarding the future that is awaiting hundreds like me.  I sometimes think that John Wheeler (the scientist who coined the term "black hole") might have got the inspiration of the concept of black hole from your office - an entity so strong that not even a ray of light (for us, we call it "hope") can leave it because of its intense gravity (we call it the "power-wielder's hooliganism").  So, we just keep on guessing and sometimes, we even book the tickets for our native places (such fools are we!) thinking that this time the Lord will be pleased on us and give us their blessings in the form a posting which is at least 500 kms (accessible shortest distance) near to my native place.  But the day you release the transfer list, our excitement just increases, because we would have got another place that we need to search on Google maps which will just go "round and round and round" thus giving the crucial time for our minds and bodies to "adjust" to this torture. 

And finally comes the BEST part - we send our representations, request letters, and blah blah (for you) to your office - we even call whoever we know and whom we have previously worked with whom we think that "he knows you" and the best joke - "you listen to him."  We put requests in each and every corner of the organization and even find out the probable vacant positions "near our home town" and request you to consider us for that posting.  You DO consider somebody for that posting - but that person is never ME - Reason: - I WORK and PERFORM and the fools who do the same need more work to perform because the reward for good work is always more work and the reward for crying, babbling, using undue influence (political or otherwise), not working at all, messing up the work and creating more complicated work for people like me is THE CHOICE POSTING because you think that if that Non-performer is given a posting of his choice, then you can "extract" work from him on the pretext that he has been given his choice posting.  But let me tell you My Lord, that you are utterly wrong - performers and non-performers are not made - They are born.  So, now I finally found out who the real culprit is.  They are actually MY PARENTS who brought me into this world!


THANKS A BUNCH for enlightening me My Dear and Respected Lord!