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Core, Farm slip; Prices Up: CONSTRUCTION A BURDEN?, By Shivaji Sarkar, 4 March, 2024 Print E-mail

 

Economic Highlights

New Delhi, 4 March 2024

Core, Farm slip; Prices Up

CONSTRUCTION A BURDEN?

By Shivaji Sarkar 

India is experiencing a robust growth rate of 8.4 per cent, paralleled by rising inflationary trends, sparking concerns within the Reserve Bank of India (RBI). Projections of economic ease appear optimistic, prompting questions about whether inflation might impede growth or if capital expenditure (capex) could bolster it. 

However, key concerns linger, including a dip in core sector growth and a contraction of the farm sector by 0.8 per cent, compared to the previous expansion of 5.2 per cent in the third quarter of 2022-23. Despite a notable rise in manufacturing by 11.6 per cent, following a contraction of 4.8 per cent in the preceding year, challenges persist. Despite substantial government capex, consumption growth remains feeble, private investment continues to lag, and constructions may be a drag. 

India’s claim of growth is accompanied by decadal cumulative inflation of 55 per cent at 5.5 per cent a year. Rural inflation at 5.93 per cent is far higher than the urban at 5.69 per cent as in December 2023. And less noted vegetable inflation has touched 9.94 per cent. 

The RBI is cautious in its observations, but the International Monetary Fund (IMF) is blunt on high core inflation and stresses that central banks need to keep monetary policy tighter for longer than is current in markets. In its Global Financial Stability Report, it says “risks to global growth are skewed to the downside as the global credit cycle has started to turn as borrowers’ debt repayment capacity diminishes”. 

India needs to heed to the warning. Despite RBI remaining tight fisted, it notes at the Monetary Policy Committee report of this February that since February 2023 it has not succeeded in its effort to check prices. It means government has to be careful on burgeoning borrowings. The country’s allocation for debt repayment of Rs 10 lakh crore or almost 25 per cent of the central budget skews the economic focus. The quarterly GDP growth figures touching 8.4 per cent in third quarter against the Bloomberg estimates of 6.6 per cent, projected as fastest in 18 months, portrays one side of the picture as simultaneously the core sector growth slips to 3.6 per cent, a 15-month low in January. 

Latest data show eight core sectors grew slower than 4.9 per cent in December and 9.6 per cent in January 2023. The core sector consists of 41 per cent of the index for industrial growth. 

An increased government capital expenditure outlay may do little to change the overall investment situation as most of private firms remain reluctant to invest more. Margins for companies have plummeted despite high sales growth and it is apprehended that sales would decelerate. 

Compared to the 1980s when capex was high at 55 per cent, a study by Systematix group denotes, the present contribution is on the rise at 34 per cent. It is, however, concentrated on construction activities. It does not have multiplier effect on the industrial sector. This affects private investment growth, an aim of the higher public investments. A handful of companies with better liaison are pocketing the capex extravaganza. Actual demands remain low as core sector figures denote. 

The consumers may have to pay higher prices for natural gas after the elections adding to further inflationary trends. The government has raised natural gas prices to $8.2 per unit – million metric British thermal units. For consumers the cap remains at $6.5 in the current price mechanism when the Indian basket, was linked in April 2023. It is meant for international sale by domestic producers. 

Over Rs 10 lakh crore projects have been announced in election meetings by Prime Minister Narendra Modi in Uttar Pradesh and over a billion more for schemes in West Bengal, Chhattisgarh, Tamil Nadu, other states, schemes for railways and other areas. The rail projects are linked to construction of railway stations and similar other facilities. Faster trains fascinate but are concerns for connectivity in hinterlands. 

Promises are encouraging. Overall investments have grown on heavy borrowings of Rs 172.37 lakh crore as on March 2024, estimated to rise to Rs 187.35 lakh crore on March 31, 2025. This has a cost push effect. The RBI notes that over the past decade until 2022, consumer price inflation in India averaged 5.5 per cent a year or 55 per cent in a decade. This was above the Asia-Pacific’s figure of 2.1 per cent. 

The Indian Institute of Management, Ahmedabad, which conducted Business Inflations Survey (BIES) in December 2023, mainly among the manufacturing companies, reports a significant increase in one-year unit cost-based expected headline inflation. It reports an increase of 4.96 per cent in December 2023 from 4.73 per cent October 2023. 

The latest MPC notes that with elevated levels of food inflation, there is need to remain focussed on achieving the inflation target in a sustained way. It also observed that it could not achieve its target set in February 2023, implying the central bank could not contain prices. Prices of vegetables, including tomato, garlic, lemon and ginger and food grain have shot up. It affects overall costing of all the government estimates. Overall, it dampens the growth efforts. 

Promising investments to the people that is unsustainable have deleterious effect on the economy. Debt pushed investments raise money circulation further spiking prices. The populism may cause euphoria but gains to the economy are uncertain. It could, as the RBI indicates, be deceptive. Revival of growth in consumption demand is the key and “would require improved employment and household income conditions. 

The consumer optimism, increased spending, as per RBI urban household survey 2-11 January 2024 is yet to reach “pre-covid19 period”.  The RBI stresses that jobs and household income rise are key to the growth of the country whatever might be the euphoric figures of it being the fifth or third world economy. The consumer is constrained by the gap in discretionary spending that is the freedom of purchasing goods of their choice. 

This is also reflected in foreign direct investment (FDI) as a percentage of GDP being restricted to 2-2.5 per cent of GDP, which is hardly sufficient as also hot volatile money. This could be an indication that foreign companies are circumspect. 

The country has to check inflation as it diminishes the purchasing power of individuals that can’t cope up with unaffordable goods, services or essential items as also constructions that could add to post-poll prices. Prudent economic policies are necessary for sustaining growth and job creation. Supposed global standings epaulets hardly help.---INFA 

(Copyright, India News & Feature Alliance)


 

The MSP Demand: STATES MUST AID CENTRE, By Dr. S.S Chhina, 2 March 2024 Print E-mail

Spotlight

New Delhi, 2 March 2024

The MSP Demand

STATES MUST AID CENTRE

By Dr. S.S Chhina

(Senior Fellow, Institute of Social Sciences, New Delhi)         

Albeit the longest-ever protest from the farming community, especially in Punjab and Haryana, which continued for about a year to repeal the three farm laws and ultimately culminated in their withdrawal, the demand for Minimum Support Prices (MSP) continues to simmer. Looking at the recent ongoing protest, it is amply clear that agriculture in India needs an overhaul right from policy to reforms in the agri-market. 

An MSP is the minimum price set by the Government at which farmers can expect to sell their produce for the season. When market prices fall below the announced MSPs, procurement agencies step in to procure the crop and ‘support’ the prices. The main point of scepticism in those laws then was about the withdrawal of the government rule to procure the products of farmers. 

Even though these are only wheat and paddy, which are the popular crops of Northern India, no other product is being procured, though the prices for 23 crops are announced every year. Such assurance of marketing can be given in contract farming, but the previous experience has been dismal compared to the very successful involvement of state procurement. 

Looking at the scenario of marketing in different countries, it can be observed that neither the MSP is prevailing, nor the government procuring any crop. But at same time, be it either small or big, or developed or backward country, the government is very conscious about the price and production of the farm products. 

Even in those countries which have vast natural sources such as Canada and Australia etc., private companies are making contracts with farmers to mitigate any volatility either in price or in output as well as for the quantity to be supplied and the price to be charged. But the government is monitoring the situation in the interest of the consumer as well as of the producer to protect both in the harvest and in off-season. 

Unfortunately, the situation in India is altogether different than those countries having vast natural sources. Indian agriculture is overburdened with population, but it happens to be the profession of 60% of the population. Additionally, 95% of the holdings have less than two hectares of land, therefore making those neither economically viable nor providing full employment. Such holdings cannot take any risks for the sale of products, produced by putting in hard labour. 

While analysing farming in India, it can be said that though the country was facing food shortage, the initial three ‘Five Year Plans’ couldn’t solve the problem. As a result, the country was compelled to import food with several political strings attached and tapping precious foreign exchange. The green revolution, which was ushered in the late 60s, was the concatenation of number of factors such as new varieties of seeds, more use of chemicals, installation of tube-wells, easy and cheap loans and road connectivity, but foremost of all these was the MSP along with state procurement that proved a boon. 

Consequently, the perpetual rise in area and output of wheat and paddy, which are covered under the umbrella of assured marketing with MSP, was witnessed. By the early 70s the country became an exporting country from its position as a food importing nation. Even the stores fell short of preserving the produced wheat and paddy. It is to be noted that while area and output of wheat and paddy thrived, the output of other crops either remained stagnant or dived to a low level because of the lack of assured marketing. 

Over the past few years, concerted efforts have been made to realign the MSP in favour of oilseeds, pulses and coarse cereals to encourage farmers to shift larger area under these crops and adopt best technologies and farm practices, to correct the demand-supply imbalance. It was very much desirable to bring other crops under the cover of state procurement at MSP, but the glitches that resonated gains of this paradigm could not be reaped. The simple announcement of MSP for 23 crops could not yield the desired results because it couldn’t be dove tailed with state procurement of those crops. 

The MSP, as a tool with state procurement had delivered the desirable results, the production of wheat and paddy rose exponentially where a number of crops in which the country was self sufficient have to be imported and the bill for such crops thrived profusely as edible oils were being imported worth one lakh crore rupees every year. 

It would be ludicrous to assume that the Central Government can purchase every single product throughout the country. India has 15 different agro-climatic zones, and each zone is producing different crops. Even in a state there are different zones suitable for different crops. Twenty-three crops for which the MSP is announced or the popular crops of different states and even of different districts in the same state. The popular crops of each zone must have assured marketing. 

The State Government must collaborate with Central Government for the popular crops of the state. This is never a losing proposition. The farmers must be given incentives to produce more and more yield and the consumers should be protected with stable prices in the off-season. 

At the time of Independence, the population of the country was 340 million but that thrived to 1380 million in 2020 or rose by 4.1 times, but in comparison to that wheat rose to 1090 million tonnes from 70 million tonnes or by 15.5 times. Similarly, the production of paddy rose to 1220 million tonnes from 260 million tonnes or by 4.8 times. However, it was possible because of the miracle of MSP, whereas other products fell short in production as well as area because of the lack of MSP. 

While following the model of developed countries where the Government is monitoring farm production, it is not just staple products but even other products like potatoes, tomatoes, milk, eggs and fruits which are being procured adequately both for the interest of producers as well as consumers. Such a model must be adopted in all the states and also the Kerala model of interference in vegetables prices. 

The farmers producing different crops must be registered for specific areas or quantity, to realise the diversification. The states and even the districts should be divided in zones based on the yield of the respective crops. Only the suitable crops of the area should be procured at MSP. It has been observed that even the crops not suitable to an area are being grown only because of MSP. For example, in Punjab paddy is grown in sandy areas of Bhatinda and Fazilka only because of state procurement. 

Once such a policy is adopted for different crops, the results will definitely be very encouraging. However, it will be more practical and beneficial if the State Governments share the responsibility with the Central Government for the interests of the producers as well as consumers.---INFA 

(Copyright, India News & Feature Alliance)

 

Constitution Review A JUVENILE CONTROVERSY, By Inder Jit, 1 March 2024 Print E-mail

REWIND

New Delhi, 1 March 2024

Constitution Review

A JUVENILE CONTROVERSY

By Inder Jit

(Released on 6 March 2000) 

India faces and has faced in the post-Nehru era many crises mainly on one score. It has lots and lots of politicians, but very few statesman. While a politician merely thinks of today, a statesman also thinks of tomorrow. But the situation has greatly worsened in India over the years. Sadly, most Indian politicians do not think of the whole day any more. They only think of the moment and live for the moment --- and talk about yesterday, not tomorrow.

This has made most of our politicians brazenly opportunistic. Self is unabashedly placed before the country and power exploited for personal ends. There is little attempt among most of them to educate and inform themselves. Mere literacy is mistaken for knowledge and wisdom. Few care to remember that a parliamentary democracy is a civilised form of Government based on discussion, debate and consensus. Consequently, the Opposition ignores its positive role and acts as though its only job is to oppose.

These thoughts are prompted by a wholly unnecessary and indeed a juvenile controversy which erupted when the President, K.R. Narayanan, surprisingly chose valour to discretion and publicly expressed his strong reservations against the NDA Government’s decision to set up a Constitution Review Commission in accordance with its election manifesto. Sadly, the wrangle has continued, fanned by unbelievable ignorance on all sides. Hardly a day passes when the Opposition does not denounce the exercise as politically motivated, machiavellian and designed to “saffronise” and undermine the democratic Constitution. In fact, Sonia Gandhi has led in New Delhi a Congress rally to protest against the review and other policies of the Vajpayee Government.

We need to ask a few questions. Is the Congress justified in its opposition to the review? The answer is an emphatic no. In fact, it would have talked differently if Sonia Gandhi and her aides on the one hand, and the powers that be and their advisers on the other were not ignoramuses. Even as Congressmen object mindlessly to a review of the Constitution after a reasonable span of 50 years, they are blissfully unaware that Jawaharlal Nehru had got the Congress Working Committee to set up a 10-member Committee on 4 April 1954 under his own Chairmanship “to study the question of changes in the Constitution and the Representation of People Act and to suggest amendments” in the light of difficulties experienced by the Centre and the State Governments. That was just four years after the Constitution came into effect!

Indira Gandhi next set up a Congress panel, headed by Swaran Singh, in 1976 to take a good, fresh look at the Constitution and make whatever recommendations it considered necessary for stability, development and the well-being and happiness of the masses. It was even permitted to go into the question whether India should continue with the Westminster model or switch over to the presidential form of Government. That the panel favoured the former is another matter.

The Swaran Singh panel also went into the bar imposed by the Supreme Court on Parliament in the Kesavanand Bharati case against amending the basic structure of the Constitution. He proposed that Parliament’s supremacy in the matter be restored by providing that the Constitutional amendments made by it “shall not be called into question in any court on any ground.” The idea was, however, dropped when top legal experts cautioned that the Constitution could well become a book of contradictions if Parliament was allowed unlimited power to amend and upset the delicate equilibrium between the executive, the legislature and the judiciary.

Top Congress leaders are presently talking ad näuseum of the “basic structure” of the Constitution and how Parliament is barred from changing it. Yet they (and even Government leaders and their aides) are unaware that Indira Gandhi rubbished the concept in the Lok Sabha on 27 October 1976. She said: “Revision and adjustment in changing conditions are part and parcel of our Constitution. Those who want to fix it in a rigid and unalterable frame do not know the spirit of our Constitution and are entirely out of tune with the spirit of new India... We have always maintained that Parliament has an unfettered, unqualified and unbridgeable right to amend the Constitution. We do not accept the dogma of basic structure!”

That is not all. At one stage Indira Gandhi even toyed with the idea of setting up a Constituent Assembly to ensure that the Constitutional amendments she favoured did not run into difficulty with the Supreme Court because of the Kesavanand Bharati case. But she dropped the move once it was pointed out that a proposal mooted in the Constituent Assembly for providing for such a body was turned down by the Founding Fathers. Expert opinion eventually persuaded Indira Gandhi to get Parliament to amend the Constitution as Parliament on the ground that “there is something bigger than all of us, that is the nation and the future.”

In my opinion, the review has not come a day too soon. In fact, the demand for a fresh look at the Constitution has grown with each passing year in preference to hasty ad hoc amendments totalling 70. Way back on 31 March 1974, I raised the issue nationally through a cover story in the Illustrated Weekly, then India's leading magazine edited by Khushwant Singh, fervently pleading for effective steps “to stop the slideback to a feudal, sham democracy.” A welcome and heart-warming endorsement came from Loknayak Jayaprakash Narayan who wrote from Patna: “I congratulate you on your article on the erosion of democracy in our country.”

Another question. Can the BJP use the review to subvert democracy and saffronise the Constitution? No way, even if it so wanted. The BJP, indeed the NDA, lacks the strength both in the Lok Sabha and in the Rajya Sabha to get any Constitutional amendment adopted. An amendment of the Constitution requires to be passed “by a majority of the total membership of the House and by a majority of not less than two-thirds of the members of that House present and voting.” The NDA has 303 members in the Lok Sabha with a strength of 545. It has only 84 members in the Rajya Sabha with a strength of 245. Furthermore, such an amendment has to be ratified “by the legislatures of not less than one-half of the States. This is well nigh impossible at present.

No less astonishing and absurd are some recent statements made by top leaders, who should know, better (or be better advised) before speaking. Former Prime Minister Chandra Shekhar reportedly criticised the Vajpayee Government the other day for “by passing” Parliament in regard to the Constitution Review Commission. Sonia Gandhi, for her part, said the Vajpayee Government appeared to be in “a great hurry to rewrite India’s Constitution” and added: “they have not even bothered to take Parliament into confidence.”

Yet, as we all know President Narayanan informed the first session of both Houses of Parliament on 25 October 1999: “A Commission comprising noted constitutional experts and public figures will be appointed to study a half-century’s experience of the Constitution and make suitable recommendations to meet the challenges of the next country.”

Finally, would the proposed review then prove to be pointless and futile? Once again, the answer is an emphatic no. The exercise would still be most useful so long as it tells us “whether it is the Constitution that has failed us or whether we have failed the Constitution” -- and what needs to be done. The Swaran Singh panel came out strongly against any change in the parliamentary system. But it failed to tell us what precisely had gone wrong with the system as practised in India and what might be done to get it to function in a clean, smooth and effective way. Democracy, after all, is only a means to an end. Ultimately, it must deliver and serve the best interest, welfare and happiness of our people.—INFA

 

(Copyright, India News & Feature Alliance)

Electoral Calculations: ALL ABOUT MODI MAGIC?, By Dhurjati Mukherjee, 29 February 2024 Print E-mail

Open Forum

New Delhi, 29 February 2024

Electoral Calculations

ALL ABOUT MODI MAGIC?

By Dhurjati Mukherjee 

The battle for Lok Sabha elections 2024 is turning out both intriguing and exciting on the political landscape of the country. The popularity of Prime Minister Narendra Modi is reflected in his claim that he would return to office in May with a landslide victory, with his party, BJP, winning more than 370 seats on its own and the NDA crossing the 400 mark! The over-confidence came during the reply to President’s address, but at this point of time when INDIA bloc is making every effort to work out seat-sharing formulas, the figure appears inflated. The score of 370, if at all the BJP reaches this figure, will be the highest since 1984 when Congress rode the sympathy wave following Indira Gandhi’s assassination. 

Notably, the BJP is going all out to emerge victorious with a big margin. A move which is bolstered with the shift of Nitish Kumar back to the NDA along with the RLD after Charan Singh was honoured with the Bharat Ratna and former Chief Minister Ashok Chavan leaving the Congress in Maharashtra and may well join the BJP. Clearly, the efforts to muster more support won’t stop here, as in Delhi, the AAP flogs the claim that BJP is offering big sums of money to wean away its MLAs.    

Undeniably, following the overwhelming response to the Ram temple consecration and other such temples expected to follow suit in Kashi and Mathura, Modi’s popularity has risen, and the NDA is eyeing regional parties for support. Political analysts believe that the religious card is over-shadowing the economic rights of the marginalised and backward sections, including their justified demand for a dignified existence. 

At same time, it’s evident that BJP is seeking to win back its old allies. The Bihar effect is being felt in other places as in Punjab and West Bengal, where the ruling AAP and TMC have decided to go it alone respectively. Much depends on what happens in Maharashtra and whether the seat-sharing between the Shiv Sena (Uddhav Thackeray group), Congress and NCP is worked out well amongst all three. Latest reports indicate that Arvind Kejriwal has decided that AAP will contest all 90 Assembly seats alone in Haryana but shall continue to be part of INDIA bloc in the battle for Lok Sabha.   

Alliances in the Opposition bloc are still being worked out even if there’s no alliance among AAP and Congress in Punjab as also between TMC and Congress in West Bengal. In Uttar Pradesh, the Samajwadi Party and Congress have reached an agreement with the latter contesting 17 of the 70 seats. Moreover, while in Delhi, AAP and Congress will be jointly fighting in four and three seats respectively, the situation in Haryana is quite complex. 

Recall in August 2023, the India Today-C’Voter survey predicted the vote share gap between the NDA and INDIA coalition had narrowed down to just two per cent. The momentum has been somewhat lost and in its latest February survey, the lead has increased to six per cent and the NDA seems headed for a clear majority. Modi has claimed Congress won’t get even 50 seats!   

While many would say it’s an absurd claim, the fact that Congress President Mallikarjun Kharge has hardly any following in the northern and eastern states may not be totally wrong. As it appears the Congress is relying heavily on Rahul Gandhi and his Bharat Jodo Nyaya Yatra, which is reportedly drawing large crowds. Plus, grass-root leaders of the party in Rajasthan, Jharkhand and Madhya Pradesh are expected to help the grand old party in its calculations. But as things stand today, it would be extremely impossible for the Congress to get a sizeable number of seats to make a claim to form the next government.   

The power needed for a strong working alliance is somewhat missing in the INDIA bloc. One reason being the Congress’ incapability and the results in got in the recent Assembly elections. Though Rahul has been highlighting the right social and economic issues that affect the impoverished and backward sections, the neglect of OBCs, the dalits and tribals, the induction of religion into politics and the aggressiveness of the Hindutva brigade appear to be influencing the semi-literate masses of the northern states, where the BJP is now dominating.   

It would be pertinent to refer to a book titled Modi’s India: Hindu Nationalism & The Rise of Ethnic Democracy by Christopher Jaffrelot published in 2022 which dealt with Modi’s spectacular popularity in spite that his was a pro-rich government, ideologically opposed to policies of redistribution, those that worked towards a welfare State. Moreover, the violent intimidation of minorities coupled with Modi’s authoritarianism choked democracies by elected governments themselves beginning with Parliament and extending to the judiciary, the media, the Election Commission, the CBI, the Lokpal etc. 

Perhaps, the pursuance of religion and aggressive Hinduism has tilted the balance in favour of the ruling dispensation. It is indeed distressing that the country navigated from a flawed yet hopeful experiment in building democracy with equal citizenship of people of every faith to a place where it is increasingly dangerous to be a minority, dissenter or even to report the truth as dissent and protest are being thwarted, not just by the Centre but in the states as well, West Bengal being a glaring example.   

In the present situation, even though the Modi government has been pro-rich and favouring this section along with the middle class, the higher castes, the poor and the lower castes appear to be mesmerised with Modi’s religious overtures. He has portrayed himself as a saintly person, possibly the first of its kind to occupy the chair of the prime minister. The skills of Modi, including his articulation and gestures, seem to have had a great impact on the masses. 

It is worth mentioning that Modi’s image has been bolstered in a big way while it’s not so in the case of Rahul. Modi’s skills of mesmerising the masses with talks of achievements that possibly lack justification has caught on well with people from northern, central and western India, who don’t have the real power to analyse. On the other hand, Rahul has been focussing on basic social and economic issues that affect the common man. His yatra, no doubt, may have an effect, but doesn’t match either BJP’s money power or its surreptitious methods of harassing Opposition leaders by unleashing the ED or IT agencies after them. 

In this big ensuing electoral battle, it remains to be seen whether Modi’s experiment of a sharper thrust on religion, will get him the massive majority that he claims to be heading towards and drastically change politics in the country.  ---INFA 

(Copyright, India News & Feature Alliance)

Goodwill Train To Delhi: SAVES TONNES, HELPS KISANS, By Shivaji Sarkar, 28 February 2024 Print E-mail

Economic Highlights

New Delhi, 28 February 2024

Goodwill Train To Delhi

SAVES TONNES, HELPS KISANS

By Shivaji Sarkar 

The farmers’ determination to march to Delhi stems from the profound belief that voices resonating in the capital echo throughout the nation. Allowing them access to the National Capital to articulate their concerns would validate their sense of being heard and acknowledged. 

A simple act of facilitating their travel by train from Ambala, a mere two-hour journey, to New Delhi could alleviate tensions and reflect positively on the government’s willingness to resolve a longstanding issue. This pragmatic approach not only avoids congesting roads but also signifies a proactive step towards dialogue and reconciliation. 

Kisans are struggling since 1960s and their demands remain unchanged. They want minimum prices and the political system has been denying the right prices to them while unmindful of the rising commodity prices since the time of Late Prime Minister Indira Gandhi. 

It has been a problem during the Nehruvian era as well. Pandit Jawaharlal Nehru himself started as a farmers’ leader of the Congress party, that led to the enactment of the UP Tenancy Act in 1938, considered those days a revolutionary act on land reforms. This law set in motion significant changes in agrarian structure setting in the abolition of the zamindari system in 1950s. It was an important milestone in land reforms. 

Still without a “foreign” hand the MSP for crops had not been possible. In 1959, a team of the Ford Foundation comprising US agricultural officials and scientists travelled to different states, met the people in villages, officers and chief ministers to understand the food production problems. It submitted a report to then minister for agriculture AP Jain called “India’s Food Crisis”. It paved the way for “guaranteed minimum price, publicised before the planting season, a market and its availability within bullock-cart hauling distance”. That is how the Agriculture Produce Market Committee (APMC) or Mandi Samitis came into being. It, however, took five years to start the MSP in 1964 from paddy season shortly after Nehru’s death. 

The country remembers the intense drought of the 1960s leading to food grain imports from the US, proverbially known as ‘ship to mouth’ existence. Though a good beginning in a country that had no system of organised kisan market, it faced a mismatch between the production price and input costs. Still the MSP ensured that farmers prosper in many states. 

One of the biggest farmers’ rallies was organised by Indira Gandhi as prime minister at the Boat Club, India Gate, lawns in March 1981, for launching son, Rajiv Gandhi. It was her reaction to the danger of a widespread, opposition-led kisan movement and erosion of the agrarian base of the Congress(I). Interestingly, kisan leader and father of defections Charan Singh never organised a farmers’ stir. 

A still bigger rally at the Boat Club was held during Rajiv Gandhi’s prime ministership by western UP, Bharatiya Kisan Union, leader Mahendra Singh Tikait in 1988. They had a langar there for days together. Over a lakh kisans continued their sit-ins. They were addressed by opposition leaders, ministers and Rajiv Gandhi himself. It was a major media story even on Doordarshan.

All over the country several farm movements were held at states. Shetkari Sangathan held several rallies between 1980 and 2014 led by Sharad Joshi. Many of these confined to Vidarbha did not get much publicity.  The Left resolved West Bengal land issues. 

In 2009, the Tata group was forced to abandon plans to set up a factory at Singur in West Bengal to build Nano - the world’s cheapest car - after protests by farmers. It caused a political upheaval in West Bengal bringing the end to 34 year-long Left rule and rise of maverick Mamata Banerjee’s TMC. In 2011, there were violent clashes between farmers and police in the Bhatta-Parsaul villages of northern Uttar Pradesh over the acquisition of farmland for road and industry. 

On October 2, 2012, Gandhi Jayanti day, about 50,000 poor farmers, members of rural communities, including the landless and the tribal community, on a Jan Satyagraha, marching from different parts of southern India converged at Gwalior to continue their march to New Delhi. An alarmed UPA government, sent Rural Development Minister Jairam Ramesh and Commerce Minister Jyotiraditya Scindia to meet the organisers -- a non-governmental organisation called Ekta Parishad -- to accept the government’s promise that a draft national land reform policy would be prepared in six months. 

The Jan Satyagrah protesters did get lukewarm response in the media, but they were firm that welfare programmes like the rural jobs (MNREGA) were no solution to poverty. They demanded that their land be not acquired for roads and industry as land sustained livelihood and could lift tens of millions out of poverty. The ministers’ promises were not fulfilled during the UPA regime. 

The next NDA regime in 1920 brought three legislations allowing farmers freedom to sell their produce to anybody and anywhere; with price assurances and contract farming. It stirred a 17-month long agitation by farmers of UP, Punjab and Haryana at borders till these were withdrawn on December 11, 2021. 

Those unfulfilled promises, rising prices, severe mismatch between input cost and MSP stirred the present agitation by Punjab farmers on February 13 for marching to Delhi only to be prevented by the Haryana Chief Minister ML Khattar’s highhanded police action with one death and 177 hurt at the Shambhu border in Punjab off Ambala. Borders around Delhi are sealed with barbed wire, fencing, sharp spikes, concretised walls and posse of policemen. Four rounds of talks were held at Chandigarh with central ministers. But farmers rejected diversion of cropping pattern and MSP guarantee on five crops other than wheat and rice. The Sanyukt Kisan Union led farmers from UP is now joining it. 

The government can solve it with empathy. It could arrange a two-hour local EMU train ride to New Delhi, allow a rally at Ramlila Ground, a km from New Delhi station, and hold talks with their leaders. Intelligently government leaders could address the farmers and win their hearts with a promise to holistically review the myriad farm issues and the vexed MSP. Satisfied farmers could go back by the same train in the evening possibly ensuring a political bonanza for the government on poll-eve. It would save tonnes in fortifying Delhi, may be enough to fund guaranteed MSP with immense goodwill.---INFA 

(Copyright, India News & Feature Alliance)

 

 

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