Do The Farm Laws Benefit The Farmers?

Discussion in 'News & Politics' started by Rihana, Dec 8, 2020.

  1. Rihana

    Rihana Moderator Staff Member IL Hall of Fame

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    Do the new agriculture laws benefit the farmers? If so, why are the farmers protesting? Is it that some sections of the farmers will benefit and not others? Or, will there be some short-term loss but long-term gains?

    Why has the issue become so important now when all efforts should be focused on dealing with the pandemic?
     
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  2. nemesis

    nemesis Platinum IL'ite

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    India has too many farmers, producing stuff that the country already has in abundance (rice & wheat). This is because 'traditional farming' - we only know how to grow what we used to grow. The government still purchases them through a concept called MSP and stores them in the warehouse; what is left after consuming (all 140 crore people!) is left to rot or sold to alcohol manufacturers written off as rotten goods and such.

    There will be a hue and cry that loads of food are going waste in the media, except that the govt can't flood this into the market and watch farmers suicide all over the country- imagine wheat being sold at 20 per kg in the open market; good for consumers, diastrous for the grower. So the MSP and govt warehouses kinda ensure a stability.

    Pulses and oilseeds, fruits and vegetable production is less per head - but somehow tiding over because the majority of the working class is happy with roti, onion+tomato+potato sabzi. Once we all become diabetic, then there might be a soul searching 'what went wrong' and will move to a healthy thali mix instead of carb dominated meal.

    On a climate change 'friendly' year, this delicate balance is messed up - either too much produced or reduction. For eg, due to abundant rains in the TN this year, milk prices at farm gate has gone down to 20-22 per litre. Result: farmers crying, pouring milk on the streets, etc.

    Or consider this news: India to import 3 mln tonnes of pulses in 2020-21

    Once news of shortage comes up, the traders hoard up stuff, driving prices further up and thus govt has to do import and deliver it through the ration shops. This is a tactic to force the hoarded grains to come to the market.

    --

    The proposed law would mean any large supermarket chain can come to my farm, give me inputs (fertilizer, pesticide) on credit, and buy my produce on a contract - so that I may not suffer a price loss later (or benefit from a windfall) - but a steady price per kg of produce.

    This would be immensely helpful for small farmers who always go on a 24-36% interest charged credit to grow stuff and who remains in perpetual poverty. The money lending class of people become fat exploiting these people, who never pay taxes and keep buying flat after flat from the insane, unaccounted profits all happening in cash. In a recent article they were portrayed as the most beneficial person to the farmer and the current farm laws would mean farmers would be alone- such is the distortion happening in the news media of this country.

    This is a direct hit on the belly of the intermediates who make the actual profit - in this case the vendor who purchases milk for 22 and sells at 40; or who hoards dal at 65/kg and sells at 140/kg in scarcity. Instead of some bhai making profit, now it goes to a corporate. At the farmers end I doubt if anything would drastically change; crop insurance can take shape i guess; losses would go to the corporate and they will claim the insurance. I anticipate integration of fragmented lands into larger unit for collective tilling based on a long term contract or lease. A 2 acre farmer can never afford a tractor, but when he works in his own field for a price for a corporate, at least his salary per month is steady and his livelihood is ensured. The govt says, it isn't going to scrap the MSP either; I can either sell the usual way or deal with the agents of Ambani/Adani/Mittal et al. Maybe they will do it away once this free market is ensured and farmers find it remunerative to sell to the corporate than govt.

    This contract farming model is working very successfully in the poultry farming of TN. There is a steady increase in the quality of life of such farmers; they are paid like 7-9 rupee per kg of chicken raised - while chicks, feed and sanitation checks are all done by the popular hatchery chains (suguna, MBS).

    More small and marginal farmers have to unite their lands and grow large enough to command a price for the product they grow; they won't do that because 'pride of ownership' of whatever half or 3/4 acre land. When every other relative of them in other service or manufacturing sector grow in wealth, they remain stuck. Land price keeps appreciating and this is the only saving grace for them continuing to be in the farming sector. An irony: a neighbor farmer sends his son to a supermarket chain and only this year they celebrated diwali with crackers. Otherwise it is always some pessimist rant from him. Like the venting that happens here; vent and go back to the same stuck relationship.

    So all of the so called media 'blowing up' is just politicking using farmers as a plank. There can be really a lot that can be done to actually improve the conditions of farmers, which is not to do politics over food pricing - say when onion prices go up momentarily, all the protest is only going to make the govt import more onion to drive prices down and when the actual local produce come to market, they will get the same peanuts instead of a once in a lifetime profit.

    Whatsapp/internet exploited to circulate rumors and hate; can organize caste and profession based gathering within minutes to lynch a perceived enemy; once done go back to live the same pathetic life. Same methods, different causes/effects. Sick and tired of watching news channel these days.


    --

    typed a lot; rainy day and coffee helped.
     
  3. Thyagarajan

    Thyagarajan IL Hall of Fame

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    :hello:A law passed by both houses for the entire country with many states accepting and only a minority states objecting and protesting (perhaps 10%) cannot demand change of Law! Hope that Government holds its position like in CAA, National Education Policy etc. etc.
    I am still not clear about the issues involved in the Farmer's agitation.

    . After retirement many in punjab are a full time farmer.
    A friend from punjab, writes
    "I have been actively farming for almost two decades now and I have witnessed many things happen at APMC’s.
    I have seen classifications of C grade grain miraculously change into B grade grain.
    Similarly I have also witnessed the weigh bridge weigh in the empty truck at 39 tons and the full truck at 55 tons and later found that the unloaded truck weighed 43 tons at another weigh bridge.
    Yes I know, you know what I know. Yet, let me tell you more about what you may already know.
    There are over 30,000 registered adtiyas in Punjab.
    These 30,000 employ another 300,000 sub agents or sidekicks or people who wouldn’t have made it into doing anything anyplace were it not for the patronage network of these 30,000.
    There are only 1500 farming villages in Punjab.
    330,000 / 1500 is about 220 people on average per village doing the work of middlemen.
    Why is this the case?
    It’s a long story but someone needs to begin talking about this at some time.
    We had a food shortage and a ship to mouth existence until the 1970’s.
    Norman Borlaugh pioneered a variety of wheat which gave 10 X the yield but needed 3X the fertiliser.
    The Punjab was chosen as the battleground against hunger. Enterprising Sikh farmers worked hard to Create what we know as the green revolution.
    Since there were huge shortages. Laws were made which didn’t allow for stockholding or selling at farm gates.
    Essential Commodities Act
    APMC Act (farmers were compelled to sell only at APMC’s to licensed traders - remember license permit quota Raj?)
    As an assurance to the farmer for his hard work. Minimum Support Prices were guaranteed.
    No matter what the quantum. Sarkar would pick it up and provide farmers with a minimum amount as compensation per quintal or ton as the case maybe.
    Getting money out of the sarkari treasury is a muck filled process. Thus was born the breed of middle men who walked the corridors of bureaucracy, government and worked corrupt sarkari babus.
    political patronage networks flourished.
    220 : 1 is the ratio of middlemen to a single village in Punjab today.
    This business got integrated backwards.
    Corruption was professionalised.
    For instance, I have in my circle of influence or immediate family, folks who own very large tracts of land. (100 acre plus holding).
    The thekedar comes and takes the theka of growing on the land. For those unfamiliar with the word, Theka it’s also referred to as contract. I know there are grumblings about corporates contracting with farmers directly now. I also know why. You should too.
    Anyways; to cut a long story short.
    Plenty Farmers do, not much except receive their due at the end of each cropping season.
    What is grown?
    What grade or quality?
    For how much is it sold?
    Would it have fetched the similar price in the open market?
    Where is it sold?
    How is it sold?
    Who’s the end beneficiary?
    Does anybody consume it or does it go to waste?
    Was there a better way to do what’s being done?
    All the above is none of my business or yours.
    As long as you receive your cheque.
    Why do you care?
    The Jamkhedkar committee meanwhile reports that over 40% of the grain acquired under MSP by FCI is either unfit for consumption or is simply wasted.
    All Told, One out of every Two kilos acquired is wasted.
    Years of perfidy have today given birth to this.
    MSP has ensured that there is no necessity to seek profitable enterprise.
    It’s also given birth to the patronage networks which survive off the sarkari teat and refuse to breakaway.
    It’s given rise to a political class which thrives and survives of being Specialist Corrupt Thugs.
    There was no sunset clause on this. Nobody foresaw a time of surplus production on food grains.
    Result; all other states such as Haryana, UP, Bihar, Rajasthan & MP all produce surfeits of Grain. They also have their own MSP mechanisms which have proliferated and created similar political patronage networks.
    Since more is acquired at Mandis in Punjab. Remember the central government promise. Grain from UP and or Bihar also finds its ways into the mandi system of Punjab.
    The trucks being under weight and over paid for and the grades changing are common place practise, you can go for a few days to the mandi and figure out how to make a killing by doing this. I don’t advise it, this is what the system is current day. I advise, Try doing truthful clean work. It’s more fulfilling.
    Soon enough, you’ll also be one of those “know it all’s” in the mandi who doesn’t talk to others. After all information is power.
    All this is paid for by you dear tax payer.
    The annual bill for this is approximately 8 lakh crores.
    Why don’t the farmers grow something else.
    Something more profitable.
    If I’m being paid for doing precisely nothing.
    Why bother with competing.
    Where is the incentive to compete?
    I would rather go and picket the roads leading into Delhi to ensure that the existing system isn’t threatened.".
    From What's app message as received
     
  4. kaluputti

    kaluputti Platinum IL'ite

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    I completely agree....when the system all along had not worked to the advantage of the farmer, why not check out a new one, when it is explained well, which is to supposedly eliminate the intermediaries, which should be the most important pending task, not only in agriculture, but in all the fields, who are the best beneficiaries more than the other two parties, producer and the consumer. This is certainly politicizing the issue by vested interests.
     
  5. Thyagarajan

    Thyagarajan IL Hall of Fame

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    The agricultural Bill was passed by both the Lok Sabha and the Rajya Sabha.
    Now watch the Game of this Bill.
    Agriculture Bill is Demonetisation part 2.
    Like Demonetisation had Destroyed Nestor, who kept the Stock of Black Money
    Similarly, Two Heavyweights of Punjab and Maharashtra were Ruined by this Bill.
    The Parrots of Sukhbir Badal of Punjab and Sharad Pawar of Maharashtra flew Away........ Got it .
    Sukhbir Badal runs Sukhbir Agro which has an income of at least 5000 Crores per year.
    He was the Commission Agent between FCI and farmers.
    His company used to get 2.5% commission.
    All the Warehouses belonged to him.
    No farmer could sell a tonne of wheat to the FCI without the tag of Sukhbir Agro.
    All wasted in one stroke.
    In Maharashtra, Sharad Pawar's daughter Supriya Sule used to show agricultural income of 10,000 Crores.
    This family had Control over the entire Onion, Chilli and Grape Trade.
    This bill left Pawar Nowhere.
    Modi cuts the root, does not cut the branches.
    Akali Dal and the NCP need funds in the next Election - hence the noise.

    (Courtesy mit WhatsApp group)
     
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  6. Mistt

    Mistt IL Hall of Fame

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    I'm reading different versions to try to understand why farmers are protesting against new agricultural laws. Still I'm confused if those reforms are benefit to farmers or .....
    Benefits, drawbacks of the 3 farm laws at the heart of farmers' protests
     
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  7. Rihana

    Rihana Moderator Staff Member IL Hall of Fame

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    Much appreciated. My interest in the topic is a rather weirdly vested one. Your post saved me a bunch of searching and sifting.
     
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  8. Minion

    Minion Platinum IL'ite

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    [​IMG]

    This is false India lags in the food storage and food processing, the government should get away from food storage business and privatize the food storage and provide incentives for food processing industries


    Grain drain

    As millions go hungry, India eyes ways to stop wasting $14 billion of food a year

    India Food Processing Market Study, 2020: Lack of Storage Infrastructure Faced by the Industry - ResearchAndMarkets.com
     
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  9. Minion

    Minion Platinum IL'ite

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    This is good on paper in reality farmers will be treated like slaves, farmers will never be able to stand up against the corporate power, if the farmer stands up against its master (one who is supplying fertilizer, pesticide, credit etc) it will just drop that farmer from its supplier list and find a new slave

    Here is an example from Walmart

    Wal-Mart puts the squeeze on suppliers to share its pain as earnings sag

    Walmart's New Price-Match Push Pressures Small Businesses | AllBusiness.com
     
  10. Minion

    Minion Platinum IL'ite

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    If the government removes the APMC Act and remove all the restrictions on the buying and selling of farm goods across the country the farmers will benefit a lot.
     

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