When, prime minister, Modi during his high octane campaign in the run up to assembly elections in Uttar Pradesh [UP] promised loan waiver for farmers [albeit small and marginal/poor] in the state, he might not even have contemplated that state-after-states would be confronted with similar demands. In retrospect, this is precisely what has dawned on the political establishments particularly in states ruled by BJP viz. Maharashtra, Madhya Pradesh, Haryana etc. The irony is that whereas, BJP had voluntarily made a commitment in a poll bound state, the demand for loan waiver has surged even in states where it was not a poll promise. Those states have been coerced in to granting waivers using the modus operandi of protests and demonstrations....
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Category: Agriculture & Foodgrain
INDIA’S PULSE DILEMMA
While the Government has done its bit to boost the output of pulses, it has done little to check the nexus between politicians and grain traders For several decades, production of pulses in India has fallen substantially short in terms of consumption. This persistent deficit has led to intermittent bouts of spike in prices as imports (needed to plug it) have often come after lag and have failed to reach consumption points in time — courtesy: Handling, storage and transportation bottlenecks. Pulses are an important source of nutrition, especially for vegetarians. It is also a critical component for the diet of the poor. This nutrition-poor link, which is juxtaposed with hike in price, has also been exploited by opposition parties...
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Unholy politician-trader nexus – behind farmers plight
For several decades, production of pulses in India has fallen substantially short of consumption. The persistent deficit has led to intermittent bouts of spike in their prices as imports [needed to plug it] have often come after lag and failed to reach consumption points in time – courtesy, handling, storage and transportation bottlenecks. The import of pulses in large quantity also resulted in huge outgo of foreign exchange exacerbating balance of payment problems especially during times when the macro-economic fundamentals were weak [for instance, during early 90s and 2012-13/2013-14]. This also affected the ability of the government to remain glued to the path of fiscal consolidation. Pulses are an important source of nutrition especially for vegetarians and a critical component...
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Yogi – Modi onslaught on poverty
The just concluded assembly elections in Uttar Pradesh [UP] were fought in the backdrop of deteriorating law and order situation, hostile environment for investment, crumbling infrastructure [sans a few pockets in urban areas], widespread farmers distress, their high level of indebtedness and acute shortage of bare necessities viz. home, food, education, health, water and electricity. The poor investment climate and pathetic law and order discouraged industrialists and businessmen from setting up factories/shops even as existing establishments were facing closure. Together with farming being un-remunerative/losing proposition, this made a deadly cocktail leading to large-scale loss of jobs and in turn, migration of youth en mass to other states such as Maharashtra and Gujarat. Promises galore BJP led by Modi promised liberation...
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Government cap on GM tech royalty hurt the farmer; here’s how
The ministry’s decisions reflect a mindset that views MMBL as an exploitative monopoly. This perception is flawed and out of sync with ground realities Under CSPCO, the ministry fixed the price of cottonseed sales at an ‘uniform’ level and the maximum trait-fee payable to the technology-provider (TP). Given GM Bt cotton accounts for 98% total cottonseeds used in India, the decision was directed primarily at this segment. On July 6, 2016, Mahyco-Monsanto Biotech India (MMBL) withdrew its application for environment clearances for commercial cultivation of cottonseeds carrying its Bollgard II Roundup Ready Flex (B-II-RRF) technology, which uses genes that not only kill pests but also imparts resistance to the herbicide, Roundup. MMBL has attributed its decision to the “uncertainty in...
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PM agri–insurance scheme – challenges ahead
Farmers in India are constantly under the threat of drought and other natural calamities such as floods, hailstorms, pest attacks etc leading to unprecedented loss of crop output. Unable to pay back loans [taken for growing crop], tens of thousands of them commit suicide every year. It is a national curse. The issue has been debated several times in the parliament wherein parliamentarians across the political spectrum pledge to put an end to it but things have so far remained at a standstill. The Pradhan Mantri Phasal Bima Yojna [PMPBY] launched by Modi – government early this year has come as a beacon of hope. Under PMPBY, a farmer will be compensated for the crop loss by paying small premium...
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Agri ministry defies govt
While the intent of the government is to give a big push to commercialisation of GM crops, the agriculture ministry is against it. In December 2015, the Union Agriculture Ministry had issued a Cotton Seed Price Control Order under which it fixed the price of cotton seed sales all over the country at a uniform level and max trait fee (royalty) payable to the technology provider (TP). Given that the genetically modified (GM) Bt cotton accounts for 98% total cotton seeds used in India, the decision was directed primarily at this segment. The ministry also ordered a probe by the Competition Commission of India (CCI) – in to alleged ‘monopolistic’ practices by the Mahyco Monsanto Biotech (India) Private Limited (MMBL)...
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Exclude the better-off
FOOD SUBSIDY The National Food Security Act (NFSA) enacted by the then UPA – government in 2013 guarantees availability of 5 kg of cereals per person per month at Rs 3 per kg rice, Rs 2 per kg wheat and Rs 1 per kg coarse cereals to 67% of India’s population (75% rural & 50% urban). The cost of making food available being substantially higher, this entails massive subsidy payment. Subsidy is financial supports given by government to enable a person buy a commodity which he cannot afford with his limited income. Prudence demands that this should be given for a temporary period to avoid perennial burden on the exchequer. This period should be used to enable him earn more...
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Food subsidy reform – unlikely in Modi’s term
The National Food Security Act (NFSA) enacted by the then UPA – government in 2013 guarantees availability of 5 kg of cereals per person per month at Rs 3 per kg rice, Rs 2 per kg wheat & Rs 1 per kg coarse cereals to 67% of India’s population (75% rural & 50% urban). This is an astounding admission that six-and-a-half decade after independence, nearly 800 million of country’s population are so poor that food has to be supplied at close to ‘zero’ price. Subsidy is financial supports given by government to enable a person buy a commodity or service which he cannot afford with his limited income. As a matter of prudent policy, this should be given for a...
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Vanishing food stocks and bleeding banks
For the first time ever in the history of food procurement, storage, movement and distribution by state agencies, India has faced an unprecedented situation of hibernating food stocks worth Rs 20,000 crores in Punjab. The stocks were mostly funded using cash credit taken from a consortium of public sector banks [PSBs]. In an equally unprecedented move, the Reserve Bank of India [RBI] – the regulator of banks – has directed concerned PSBs to declare the mentioned loan as non-performing assets [NPAs] and accordingly make a provision of 7.5% during the quarter ending March 31, 2016 and another 7.5% during Qr ending June 30, 2016 for now. That adds to Rs 3000 crores [15% of Rs 20,000 crores] and will correspondingly...
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