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DevinderSharma|Mon,19Oct201506:30am,Mumbai,dna
Whenitcomestofarmers,thegovernmenthaspreciouslittletooffer
Themonsoonseasonisover.With14percentshortfallintheamountofrains,andwithnearly39percent
ofthecroppedareainthecountryhitbyacripplingdrought,IwasexpectingtheReserveBankofIndia
governorRaghuramRajantoannounceaseriesofmonetarybenefitsandexemptionsincreditrepayments
forfarmers.Reelingunderdroughtforthesecondconsecutiveyear,farmingcontinuestobefacedwitha
terriblecrisis.
Instead,RaghuramRajancompletelyignoredagriculturewhenhepresentedthemonetarypolicylastweek
cuttingcommercialbankslendinginterestratesdrastically.Thismoveisexpectedtoprovideaboostto
themarketsandwillalsohelpbankstidyuptheirbalancesheets.Onlyamonthback,thegovernmenthad
infusedRs20,000croresinthepublicsectorbankstohelpimprovetheirfinancialhealth.Thisisnothing
butaneconomicbailoutpackageforthebanks.Thecutinreporatewillalsohelpreducethemonthly
repaymentinstalmentsforthosewhohavesoughtloansforhomesandcars.
Thecontinuingindifferencetowards60crorefarmersdoesnotstophere.Thegovernmenthasthroughan
affidavitintheSupremeCourtmadeitabundantlyclearthatitisnotinapositiontoraiseMinimum
SupportPrice(MSP)forcropsbyproviding50percentprofitassuggestedbytheSwaminathan
committee.Butthegovernmentdidntwinceevenoncewhenitreleasedanadditional6percentDA
instalmenttocentralgovernmentemployeesandthattooatatimewhenthewholesaleinflationrateis
zero.ThiswillentailanadditionalexpenditureofRs10,879croreseveryyear.Noquestionshavebeen
askedastofromwherewillthisamountcomefrom.

TwelvelakhemployeesworkingwithlossmakingIndianRailwayswillgetabonusequivalentto78days
salary.
Forthefarmers,theincreaseinprocurementpricebyRs50perquintalincaseofwheatandrice
constitutesonlyanincreaseof3.25percentoverwhatwaspaidtothemlastyear.Thisisjusthalfofoneof
theDAinstalmentsthatthecentralgovernmentemployeeshavebeenpaidthisyear.Asyouknow,
employeesgettwoDAinstalmentseveryyear.Evenretiredsoldiershavebeenpromisedonerankone
pensionafteralongstruggle,entailinganadditionalexpenditureofRs8,500croreseveryyear.Butwhen
itcomestofarmers,thegovernmentinvariablycomesupwithanapologysayingithasnomoney.The
stepmotherlytreatmenttofarmers,therefore,isclearlyevident.Whilethegovernmentdoesnotmissany
opportunitytoassurefarmersofitscommitment,thefactremainsthatfarmersarebeingtreatedasifthey
arethechildrenofalessergod.
Inanotherfewmonths,themuchawaitedreportofthe7thPaycommissionwillbereleased.Itisexpected
thatthepaycommissionsreportwillbeimplementedfromJanuary.Themonthlysalariesofcentral
governmentemployeesandretireeswillseearaiseof30percentinbasicsalarystructure.Thiswillbring
inanadditionalburdenofroughlyRs2lakhcroresforthecentralgovernment.Stategovernments
financialpositionwillfurtherbucklefortheadditionalexpenditureinwagesfortheiremployees.Finance
MinisterArunJaitleyhasalreadyassuredthecountrythatthehugeburdenofincreasedsalarieswillnotbe
afiscalconstraint.Hisgovernmentisinapositiontobeartheadditionalcost.Ifthisistrue,Iwonderwhy
thegovernmentisunabletopayahigherMSPwhenitcomestofarmers.
ARs100perquintalincreaseinprocurementpriceresultsinanadditionalexpenditureofRs1,500crore
only.Iseenoreasonwhythegovernmentshouldexpresshelplessnesswhenitcomestofarmers.Forthe
farmers,suchanincreaseinprocurementpriceswillpulloutmillionsoffamiliesfromavirtualdeathtrap.
Accordingtothelatestsocioeconomicsurveyfindings,67crorepeopleinruralareassomehowsurviveon
lessthanRs33aday.
Consideringthatamajorityofthe70percentpopulationlivinginruralareascomprisesfarmers,theplight
ofthefarmingcommunityisclearlyvisible.Onlypolicymakersrefusetoseeit.Moreover,asperastudy
bytheChandigarhbasedCentreforResearchinRuralandIndustrialDevelopment(CRRID),theaverage
farmdebthasmultipliedby22timesinPunjabalone,themostprogressiveagriculturalfrontlinestate.
FromRs0.25lakhperhouseholdin2004ithasgoneuptoRs5.6lakhin2014.Itis,however,Chhattisgarh
whichtopsthechartwithanaveragedebtofRs7.54lakhfollowedbyKeralawithRs6.48lakhper
household.Punjabfiguresatnumberthree.About98percentoftheruralhouseholdsareinadebtin
Punjab.
Theserialdeathdancecontinuesunabatedthroughoutthecountry.Arecordnumberoffarmershave
committedsuicideinUttarPradesh,Punjab,Haryana,MarathwadaandVidarbhainMaharashtra,
Telangana,AndhraPradeshandKarnataka.Thisyear,sincethebeginningofJanuary,everythingappears
tohavegonewrongforfarmers.First,incessantrainsandhailstormhitstandingcropsattheripeningstage
inthemonthsofAprilMay.
ThiswasfollowedbydroughtinthemonthsofAugustSeptember.Inaddition,morethanRs10,000crore
ofarrearsremainunpaidtosugarcanegrowerspotatofarmerswereforcedtodistributepotatofreeofcost
tothepublicasevereattackofwhiteflypestoncottondevastatedstandingcropinPunjab,Haryanaand
Rajasthan.Ontopofit,theslumpincommoditypricesgloballyhashitfarmersofbasmatirice,soybean,
coffeeandcotton,andmilkisexpectedtobethenextcasualtyofthefallingglobalprices.

Suchisthedepressingscenariothatamajornationalnewspaperhaslaunchedadrivetocollectfoodforthe
annadatainMarathwada.SinceJanuary,morethan660farmershaveofficiallycommittedsuicidein
Marathwadaalonepromptingthenewspapertomakeanappeal.Imaginehowbadthesituationmustbe
whenfoodisbeingcollectedforthosewhoproducefoodforthecountry.Butforthegovernment,it
doesntmatter.Thedeathdanceinthecountrysidedoesntmakeanydifference.Whenthereportofthe
7thPayCommissionisimplemented,theGDPisexpectedtorisebyabout2percent.Thegovernmentwill
thenprojectGDPgrowthasitsachievement.
Ihavenothingagainstgovernmentemployees.Pleasegivethemahighersalary,andalsoincreased
allowancesthatcomesalongwiththepaypackage.Butwhydiscriminateagainstfarmers?They,too,are
citizensofanIndependentIndia.They,too,havefamiliestotakecareof.They,too,needanincometo
survive.Twosteps,therefore,needtobetakenurgently:1)Provideimmediatelyaneconomicbailout
packageforfarmers.IfbankscanbeprovidedwithabailoutpackageofRs20,000croreandallkindsof
sopsbegiventotheindustry,includingforexports,thereisnoreasonwhyfarmerscannotbegivenan
economicbailoutpackageofatleastRs3lakhcrores.2)SetupaFarmersIncomeCommissionthatworks
outtheminimumassuredmonthlytakehomeincomepackage.Ifitisproposedtogiveachaprasia
monthlysalaryofRs29,000underthe7thPayCommission,Iseenoreasonwhyfarmersshouldearnless
thantheprescribedwagesfordailywagerworkers.
Theauthorisafoodpolicyexpert
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Jointhediscussion
S.ChandrasekharanNair 4monthsago

InIndia,wholesalepriceindexisdividedintothreegroups:

InIndia,wholesalepriceindexisdividedintothreegroups:
1.PrimaryArticles(20.1percentoftotalweight),FoodArticlesfromthePrimaryArticles
Groupaccountfor14.3percentofthetotalweight.
Foodarticleswholesalepriceiscontrolledbythemiddlemen.Farmersarenotentitledtofix
thesellingpriceofhisproduces.Thepublicdistributionsystem,manyotherGovtagencies
areavailabletocontrolthepriceoffoodproducesinthemarket.Thusfarmerscantgetthe
benefitofinflation.Iftheinflationiscalculatedfor65yearsasbaseyear1949theinflation
ratemaybehigherupto2000.Toreducetheinflationratetheeconomistspurposefully
changesthebaseyearperiodically.In1985thelabourwageofamaleworkerwillgetRs.
20perdayandnowhegetsRs.700perdayduetoInflation.Unfortunatelyanyofthe
agriculturalproducegoneupbelow4times.Thesalaryandpensionareincreasemore
than35timesincludingDA.HRA,TA,Promotionandotherallowancesareabovethe
inflationrate.
2.FuelandPower(14.9percent)
ThepriceofFuelandPowerarecontrolledbytheStateandCentralGovts.Thesewillbe
seemore

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