Agriculture reforms
The spate of suicides of farmers in central India and the much dreaded El Nino, has an urgent message for the Gov't of Modi
CURRENT STATE OF AFFAIRS.
1) The farmers are like street vendors, in today's circumstance. If they lose what they have apportioned for sale they have no option but to resort to extreme measures. This happens with every climate change.
2)Even under normal circumstances, with a good crop, they have to face the Mandi mafia, who create conditions prompting distress selling. The intentional low capacity and poor state of storage is used as a tool for getting a good deal. This Mafia has their peers in the seats of power.
3) The Peers of the Mafia are the people to demand higher MSPs every time. The Gov't also grants it. This MSP solely benefits the mafia. They manipulate the market in such a way that the farmer gets only a minimal raise while the bulk goes to the mafia and their peers.
4) Agricultural marketing federation, FCI, the transportation agents and the Warehousing agencies are all managed by this Mafia. The PDS is also a part of this corrupt system. At each stage of the supply chain there is a well organized illegal payments.
5) The storage systems are mostly prehistoric systems not suitable for FIFO and ill secured and ill maintained.
Today our yearly wastage is to the order of Rs.50K crores.
6) The result- no sustaining income for the farmer and high cost to the consumer. Who benefits - the mafia and their peers.
7) To add to this this mafia also benefits whenever there is a calamity. In fact the mafia waits for such situations so that they can demand money from the Gov't through their peers. Once it is granted the mafia has its way in partaking the loot.
WHAT NEEDS TO BE DONE.
a) Abolish MSP, the Agricultural marketing federation, FCI and along with it the Mafia.
b) Make the farm as an industry. Allow each village or group of villages to form a Ltd Firm with induction of private capital ( obviously from India Inc ).The farmers will be equity holders in the firm equal to their farm holdings. These companies will also employ the farmers or their kin after giving them the proper training. The companies will be taxed but a very small amount, not more than 5% with moratorium for the first 2 years, if necessary extend it by another 2 years. Gov't will have no say in this venture except for regulating the procedures as per company law.
c) Allow Foreign equity in these Agri companies, may be with a cap.
d) These companies will be allowed to market their products independently, except 10% production which will go to the Gov't for the emergency stock at subsidized rates and 20% compulsory export.
e) All facilities to be given to thee firms for Import of technology and equipment, like any other industry.
f) Most important of all will be the statutory requirement of Quality of inputs and outputs. The firms have to get the markings from approved laboratories apart from conducting regular quality audits in house.
g) Above all Gov't should establish a special independent regulatory board without interference from the Gov't.
h) A certain portion of the profit should be spent on Society.
Expected Results
A) In 5 years India will become one of the biggest granaries of the world, in spite of climate changes.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Ramamurthi Kolagunta
CURRENT STATE OF AFFAIRS.
1) The farmers are like street vendors, in today's circumstance. If they lose what they have apportioned for sale they have no option but to resort to extreme measures. This happens with every climate change.
2)Even under normal circumstances, with a good crop, they have to face the Mandi mafia, who create conditions prompting distress selling. The intentional low capacity and poor state of storage is used as a tool for getting a good deal. This Mafia has their peers in the seats of power.
3) The Peers of the Mafia are the people to demand higher MSPs every time. The Gov't also grants it. This MSP solely benefits the mafia. They manipulate the market in such a way that the farmer gets only a minimal raise while the bulk goes to the mafia and their peers.
4) Agricultural marketing federation, FCI, the transportation agents and the Warehousing agencies are all managed by this Mafia. The PDS is also a part of this corrupt system. At each stage of the supply chain there is a well organized illegal payments.
5) The storage systems are mostly prehistoric systems not suitable for FIFO and ill secured and ill maintained.
Today our yearly wastage is to the order of Rs.50K crores.
6) The result- no sustaining income for the farmer and high cost to the consumer. Who benefits - the mafia and their peers.
7) To add to this this mafia also benefits whenever there is a calamity. In fact the mafia waits for such situations so that they can demand money from the Gov't through their peers. Once it is granted the mafia has its way in partaking the loot.
WHAT NEEDS TO BE DONE.
a) Abolish MSP, the Agricultural marketing federation, FCI and along with it the Mafia.
b) Make the farm as an industry. Allow each village or group of villages to form a Ltd Firm with induction of private capital ( obviously from India Inc ).The farmers will be equity holders in the firm equal to their farm holdings. These companies will also employ the farmers or their kin after giving them the proper training. The companies will be taxed but a very small amount, not more than 5% with moratorium for the first 2 years, if necessary extend it by another 2 years. Gov't will have no say in this venture except for regulating the procedures as per company law.
c) Allow Foreign equity in these Agri companies, may be with a cap.
d) These companies will be allowed to market their products independently, except 10% production which will go to the Gov't for the emergency stock at subsidized rates and 20% compulsory export.
e) All facilities to be given to thee firms for Import of technology and equipment, like any other industry.
f) Most important of all will be the statutory requirement of Quality of inputs and outputs. The firms have to get the markings from approved laboratories apart from conducting regular quality audits in house.
g) Above all Gov't should establish a special independent regulatory board without interference from the Gov't.
h) A certain portion of the profit should be spent on Society.
Expected Results
A) In 5 years India will become one of the biggest granaries of the world, in spite of climate changes.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Ramamurthi Kolagunta
Viewed by 10
Well said Mr.Ramamurthi. But, are we ready for a drastic change ? How about land ownership? Agriculture is the backbone of our country and it is the livelihood of large number of small and marginal farmers. Apart from economic aspects, social, polotical and religious aspects too need to be considered. Perhaps an initiative in the form of organizing the farmers into small groups on the pattern of Slef Help Groups (SHGs) may be considered with incentives. The scenario of yester years when the farmers were mostly illitterate is fast changing. Now most of the farmers are educated/literate. A movement to educate them and bring awareness among them on various aspects discussed including climate change, how to mitigate it, what role each individual can play specially farmers etc may strengthen government efforts and may even provide clear directions to government in which way the suggested reforms be implemented with or without modifications. In this connection, the positive and negetive aspects of sugarcane growers attached to sugar factories, perhaps need be looked into. What is the alternative to the PDS ? We have nearly a quarter of our population below poverty line and they hardly have a single meal (?) a day. How to ensure proper food ddistribution to these poor people spread across the country including remote areas.
Jul 01
goernment form a association of well qualifed person with agriculture background and sent those people to village to buy thier crops at appropeaite price and provide essencial services , so farmer don't have to travel to city and they don't fall as prey ...! to remove curruption connect the association's work throught internet.
Jul 01
SUPPORT THE CAUSES YOU HAVE POINTED OUT. BUT IT IS NOT POSSIBLE FOR EVERY FARMER TO OPEN A LMT. FIRM, i think there would be a direct interaction between farmer and govt.
Jul 01
