Despite PM Narendra Modi’s reform measures, why farmers are angry

Mangalore Today News Network

New Delhi, June 10, 2017 : On March 2, 2015, Narendra Modi became the first serving Prime Minister to visit Parliament canteen as a customer and have lunch. After paying Rs 29 for his lunch, PM Modi wrote in the visitors’ diary: Annadata Sukhi Bhavah (May provider of food prosper).

 

Two years later, the same provider of food is angry, hitting the streets from Chennai to New Delhi. Massive agitations are going on in Maharashtra and Madhya Pradesh, where six protesters were killed in firing reportedly by CRPF and police jawans. Madhya Pradesh Chief Minister Shivraj Singh Chouhan blamed it on the Congress and began his ’solidarity fast’ from today at Dussehra maidan in Bhopal.

All eyes are on PM Narendra Modi, who the BJP believes will be able to pacify the farmers. But, the current situation is a kind of paradox for the Narendra Modi government, which has always maintained that the farmers are a priority for it.

Prime Minister Narendra Modi wrote Annadata Sukhi Bhavah in Parliament canteen diary in 2015.

 

MODI GOVERNMENT’S SCHEMES FOR FARMERS

Ever since taking over at the Centre, PM Modi has maintained that his is the pro-poor, pro-farmer government.

The Modi government has launched a few schemes aimed at benefitting the farmers. Its initiatives include the Rashtriya Krishi Vikas Yojana, the National Food Security Mission, the National Horticulture Mission, the Gramin Bhandaran Yojana, the Integrated Scheme of Oilseeds, Pulses, Oil palm and Maize and the much publicised Soil Health Card Scheme.

The National Dairy Development Board (NDDB) announced more than 40 dairy projects with an outlay of over Rs 220 crore. The government is working on a Rs 50,000 crore plan to revive fertiliser plants. The Food Processing Ministry is also working to give boost to the food processing industry to make the farm sector more profitable.

The government launched an e-marketing programme - E-NAM - for agricultural produce. A host of apps were launched to help farmers. These apps include Kisan Suvidha, Pusa Krishi, Crop Insurance, Crop Insurance Portal, AgriMarket and CCE Agri.

PRO-RURAL, PRO-FARMER BUDGET

In this year’s budget, a steep increase of 24 per cent was made in the total allocation for the rural, agriculture and allied sectors. Nearly Rs 2 lakh crore was committed for farmers and rural India.

The government has set a target of electrifying all the villages by May 1 next year. This is considered a great move to benefit the farmers and farm sector. The Modi government allocated a record Rs 48,700 crore under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS).

The target for farm credit, in the budget, was fixed at a new high of Rs 10 lakh crore. The government has planned to build 1 crore pucca houses for the poor by 2019. A large share of this will come up in the villages.

To make villages drought-proof, the government announced building 5 lakh more ponds in addition to an equal number built last year. All these measures were expected to help the farmers and farm sector. But, it seems something is missing, forcing farmers to go up in arms.

THEN, WHAT PUSHED FARMERS TO STREETS?

The Modi government has focussed immensely on providing loans and credits to farmers. But, it seems, it overlooked the fact that farming in India works beyond the limits of loans.

Farmers in Madhya Pradesh are protesting. The protesters burnt effigy of Chief Minister Shivraj Singh Chouhan. (Photo: Reuters)
 

Though, the Modi government seems to be against the idea of Centre announcing loan waiver packages, it is in favour of loan waivers by state governments.

Prime Minister Narendra Modi himself said during the election campaign for Uttar Pradesh Assembly polls that if voted to power, the BJP government would announce loan waiver.

IMPACT OF LOAN WAIVER

The announcement of farm loan waiver of about Rs 36,000 crore by Yogi Adityanath government now seems to have prompted the farmers of Maharashtra and Madhya Pradesh to take to the streets with the hope that the respective state governments - headed by the BJP - would announce a similar package.

Maharashtra government has announced one. Madhya Pradesh has also said that it has accepted all demands of the farmers, who want a loan waiver and an increased Minimum Support Price for agricultural produce.

Farmers are demanding better prices for their agriculture produce: Picture for representation. (Photo: Reuters)
 

But, all the experts including the RBI and NABARD have termed farm loan waivers temporary and inadequate measures, which will provide short-term gain for long-term pain. The beneficiary farmers become defaulters in the eyes of banks, who deny them loans in the future. The 2008 loan waiver scheme announced by the then UPA government had a similar impact.

In February this year, MP Finance Minister Jayant Malaiya had said, "The debt of the state government increased to Rs 1,11,101.10 crore in March last year from Rs 77,413 crore in March 2014. So the average debt of every citizen of Madhya Pradesh was Rs 13,853 as of 31 March, 2016." If Madhya Pradesh goes ahead with a massive loan waiver, it will throw its economy out of bounds.

IMPACT OF CATTLE SALE BAN

The recent notification by the Environment Ministry placing a ban on the sale of cattle for slaughter in animal markets has complicated matters for farmers.

The estimated average cost of maintenance of a cow or ox is about Rs 40,000 a year past their age of economic utility. Earlier, they used to sell such animals without bothering about what happened to their lives. Now, they are expected to ensure that these animals are not bought for slaughtering.

The new regulation - intended to bring discipline maintaining hygiene and legality in cattle trade - has caused panic among a section of farmers and meat traders, who subsist on tanning and leather works industries. These sectors provide a large number of employment options to many job seekers, who are otherwise dependent on farm-related vocation.

It is estimated that 90 per cent of cattle are sold for slaughter through common livestock markets not designated animal markets. The Centre’s notification has brought this practice to a halt. This has, in turn, shocked the rural economic cycle.

If old cattle are not sold, money for new cattle is hard to come. In comparison to bigger and organised farmers and meat traders, smaller ones are worse hit by the new set of rules.

India’s development paradox: While ISRO’s breaking records, many villages don’t even have power. (Photo: Reuters)
 

IMPACT OF DEMONETISATION

Although demonetisation was a big reform to clean up the system, it came as a shock to the farming community. On the night of November 8 last year, the money supply tap suddenly went dry - albeit for nobler reasons.

November and December are the months of sowing of Rabi crops in most parts of the country and Samba in Tamil Nadu. This requires a lot of cash in hand for purchasing seeds, pesticides, fertilisers, hiring labourers. These activities were severely impacted.

Most small farmers deal with rural cooperative banks and district cooperative banks and primary agriculture societies. These were not allowed to exchange demonetised currency notes. Small farmers were the worst-hit.

Further, about 85 per cent of the total holdings are small and marginal - having less than 45 per cent share in the total agricultural land area. As the customary practice in agricultural family is to divide the lands among sons, and now daughters also, the number of small and marginal farms and farmers are increasing every year.

Demonetisation impacted sowing of Rabi crops adversely: Picture for representation. (Photo: Reuters)
 

According to the Socio-economic and Caste Census (SECC) 2011 , 15-20 lakh small and marginal farms are being added every year. Such a vast majority of farmers was impacted adversely by demonetisation. This is also the section, which is least covered by the bank credit system.

Farmer crisis is deep and the government machinery, it seems, has failed to communicate with the farmers effectively with regard to government schemes and the hazards of loan waiver. Now, the BJP hopes that its most effective and influential communicator PM Modi will weave a magic to cool the tempers of farmers down.

courtesy:India Today