Showing posts with label small farmers. Show all posts
Showing posts with label small farmers. Show all posts

No one wants to be a farmer anymore. It's only a matter of time before farmer as a species goes extinct


Farming is wilting everywhere. It's only a matter of time before farmer as a species goes extinct -- AP pic

Some years back, the celebrated Indian President Abdul Kalam was addressing students at an annual event organised by K Govindacharya's Bhartiya Swabhiman Andolan at Gulbarga in Karnataka. He exhorted students to work hard, educated themselves to become doctors, engineers, civil servants, scientists, economists and entrepreneurs. After he had ended his talk, a young student got up and asked why he didn't say that they should also become farmers.

Abdul Kalam was floored. Whatever be his long winding answer, the young student had actually punctured his argument, and at the same time brought out the great bias towards farming.

This incident came to my mind when I was reading this moving essay by a farmer from the United States. Bren Smith, a shellfish and seaweed farmer writes in the New York Times (Aug 9, 2014) Don't Let Your Children Grow up to be Farmers (http://nyti.ms/VeffqD): "The dirty secret of the food movement is that the much-celebrated small -scale farmer isn't making a living. After the tools are put away, we head out to second and third jobs to keep our farms afloat." Accordingly, 91 per cent of all farm households in the US rely on multiple sources of income. This is happening in a country where the Farm Bill 2014 makes a provision for $ 962 billion of federal subsidy support for agriculture for the next 10 years.

Ironically, the stark reality remains hidden in the Year of Family Farms.

Farmers are a dying breed. Writing in the Newsweek magazine (April 10, 2014), Max Kutner says: "For decades, farmers across the country have been dying by suicide at higher rates than the general population. The exact numbers are hard to determine, mainly because suicide by farmers are under-reported (they may get mislabeled as hunting or tractor accidents, advocates for prevention say) and because the exact definition of a farmer is elusive." (Death on the Farm http://www.newsweek.com/death-farm-248127).

Well, what is happening in America is not an isolated development, farmers are dying across the globe.

When some weeks back I said on a prominent TV channel that on an average 2,80,000 people living in rural areas every year have been committing suicide for the past decade in China, the nation was shocked. A lot of concerned viewers called me up and wrote to me wanting to know more about the death on the Chinese farm. According to news report, nearly 80 per cent of the rural people who take their own lives in China are victims of farm land grab. In India, almost 300,000 farmers have ended their live since 1995. Again, like in the US, farm suicides are also under-reported in India with some States now trying to hide them by shifting these deaths to some other categories. Even in Europe, which provides massive subsidy support under the Common Agricultural Policy (CAP), the serial death dance continues unabated. In France, 500 suicides have been reported in a year. In Ireland, in UK, in Russia, and in Australia farmers are a dying breed.

In India, although we keep on saying that agriculture is the mainstay on the economy, in reality it isn't. Employing some 52 per cent of the population, the share of agriculture in country's GDP has been progressively on the decline. It is less than 14 per cent now. I have been saying for long that small farmers have to get into multiple of jobs to keep their chulas burning. Some studies point out to roughly 58 per cent farmers relying on the rural employment guarantee programme (MNREGA), which provides for 100 days guaranteed employment. Still worse, the people who feed the country actually sleep hungry. More than 60 per cent go to bed hungry every night. Nothing can be a worse illustration of the great tragedy on the farm.

It's not because of any unexplained natural calamity or a virus that the farms across the globe are first being hit by recession, and then depression. It is part of global economic design to move farmers out of agriculture, and by doing so to shift food production into the hands of heavily subsidised and environmentally-destructive agribusiness companies. It is generally believed that for any country to grow economically, the share of agriculture in the GDP must be brought down. In US, agriculture is only 4 per cent of its GDP. In India, it is less than 14 per cent now. By the end of 2020, I am sure it would be somewhere in the range of 10 per cent. Small scale agriculture is therefore being deliberately stifled.

In my understanding, the unwritten economic prescription is to make farming non-viable so that farmers are left with no other choice but to quit. In a quest to keep food prices low, the economic paradigm support large agribusiness conglomerates. The demise of the farmer therefore is predetermined. It's only a matter of time before the farmer as a species goes extinct.

Further reading:

1. Displacing Farmers: India will have 400 million Agricultural Refugees
http://www.globalresearch.ca/displacing-farmers-india-will-have-400-million-agricultural-refugees/6127

2. France and India: The Beautiful farms are all but dying.
http://devinder-sharma.blogspot.in/2010/07/france-and-india-beautiful-farms-are.html
   

At WTO, India bats for small farmers. Back home, it wants them out of agriculture

Crying foul over spilled milk. That is exactly what India is trying to do at the World Trade Organisation (WTO). I am talking of the reports of India's isolation at the WTO on the paramount issue of food security. After having signed in on the dotted line at the Bali WTO Ministerial in December 2013 to usher in trade facilitation, which the US/EU were very keen on, and without seeking any definite decision on food subsidy, India is now crying hoarse.

"India has made it clear that state-funded welfare schemes for the poor are non-negotiable, and it is willing to take the blame for delaying the WTO's 'trade facilitation' agreement rather than hurt the interests of small farmers," reports the Hindustan Times (India toughens stance on food subsidy at WTO. July 21, 2014. http://bit.ly/1nYi0YC). The news report rightly mentions that developed countries are pressing for early adoption of the trade facilitation agreement, which would give them greater market access but are avoiding discussions on issues such as public stock-holding of cereals for food security.

But this was known even at the time of the Bali WTO Ministerial. The then India's Commerce Minister Anand Sharma had made the right noises in the media but when the final moment came, he readily signed the trade facilitation agreement. All he could wrest in the bargain was a four year 'Peace Clause' for the food subsidy issue that is crucial for not only India's food security but also food self-sufficiency. I think there is first a dire need to bring in an accountability clause in the trade policy for our trade negotiators. Commerce Minister must be held responsible for the lapses he/she makes in trade agreements.

Having said that, I am amused at India's double talk at Geneva. While India is threatening not to ratify the agreement (along with South Africa) in reality it has already made budgetary provisions for facilitating trade. Finance Minister Arun Jaitley has provided in his budget for Rs 11,000-crores (or Rs 110,000 million) for development of ports and at the same time announced a single window clearance for imports. So, the threat for not ratifying trade facilitation treaty is in reality an empty threat. For all those who follow the trade diplomacy, the best way to exert pressure is to slow down on implementation of the decision on trade facilitation, which India has failed to do.

On the food subsidy also, I think the noise that India is making at the WTO has nothing to do with the autonomous liberalisation that it is pushing for domestically. Read a news report in the Hindustan Times today (Govt to unleash food reforms to fight subsidies, inflation, July 21, 2014), it says: In an attempt to tackle runaway prices and subsidies, the NDA government has decided to gradually avoid purchasing more grains than are needed to distribute to the poor; while asking states not to offer market distorting cash incentives to farmers." Read it carefully and you realise that India is already going ahead with the WTO take on food subsidy.

1. In a recent directive, the Ram Vilas Paswan-headed food ministry asked states to stick to minimum support price (MSP) announced by the Centre and avoid padding these up with their own sops and cash bonuses.  This is in line with India's WTO commitment at Bali where it has promised not to further increase the MSP support (emphasis are mine). And then the report explains: MSPs are the guaranteed prices at which the state buys produce from farmers. higher MSPs boost farm income but fuel price rise. According to an RBI study, a 10% MSP hike raises short-term wholesale inflation by one per cent.

2. If states breach these norms the Food Corporation of India -- the country's main food security agency -- would not be obliged to acquire grains beyond levels necessary for the public distribution system as well as emergency reserves. Using the threat of not allowing food procurement by FCI makes the decision binding in the months to come.

These are not the only two policy changes that are expected. With the idea of a creating a national market, as spelled out in the Economic Survey 2014), setting up of an organisation over and above the Agricultural Produce Market Committees (APMC) is aimed at making the APMC mandis redundant. Once the APMC mandis are dismantled, the question of providing a higher procurement price to farmers will be negated. When there are no mandis where will the procurement price be paid? In any case, this kharif season, Govt has raised the MSP for paddy by a mere Rs 50 per quintal (or by 50 paise per 100 kgs), which for all practical purposes is like freezing the MSP.

India can't blame the WTO for what it is unilaterally doing at home. #

Further reading:

1. Bali WTO Minsterial has only postponed the problem relating to India's food security. Dec 19, 2013 http://devinder-sharma.blogspot.in/2013/12/bali-wto-ministerial-has-only-postponed.html

2. Direct cash transfers are aimed at dismantling food procurement, and moving away from food self-sufficiency. Dec 19, 2012. http://devinder-sharma.blogspot.in/2012/12/india-direct-cash-transfers-is-aimed-at.html