Beyond the News - FACT Analysis

Farmers existence in the present scenario, a critical analysis of existing system income vs three new farm laws

H.S. Hoon

India is the Seventh Longest Country in the World with the area of 3288 million sq.kms having climatic variation from Humid, Dry vertical in the South to Deep Cold in the North; It is having only 2.4% of the World area with more than 45 thousand plants and over 91 thousand species. Agriculture along with its Allied Sectors is the largest source of livelihood in India with a Total Food production of over 275 Million Tonns (being the largest producer 25% Globally) (27% of the World consumption and 14% Imports of the Pulses in the World)

  1. Highest Animal Milk production in the World.
  2. Second largest Animal Cattle Population and Second largest producer of Rice, Wheat, Sugarcane, Cotton, Groundnuts, Fruits and Vegetables in the World with percentage of 10.9% and 8.6% respectively.
  3. Poultry Farming is the fastest growing sector in India.
    Though India has achieved Self Sufficiency but production is only the
    Resource Intensive, Core Centric and Regionally Based. Main cause of Farmers living in Stress is that their fate is purely dependent in the hands of Natural Conditions of Weather, Draught, Floods, Heavy Rainfall, Heat Waves and thus inspite of doing their best to produce the Best Crop, they fail to earn a reasonable income to look after the families. Average Income in the Existing System – Small and Marginal Farmers (86.2%), Medium (13%) and Large Farmers (0.8%)
    Small and Marginal farmers just earn is Rs. 29182 in Cultivation per Hectare and earn more than Rs. 31490 by working for others. This implies that Average Monthly Income from Farming is 29132/12 = Rs. 2427 Per Month which is too less for making both ends meets of the family.

Contract Farming is already in existing in the country and any Company willing to pay more than the MSP (Minimum Support Price) fixed by Govt. of India every year, are free to do so. Such examples are Pepsi, Nestle, Hindustan Lever, Reliance and many other major Agro Based Industries involved in purchase of the crops as per their requirement. Need of the Hour is to Pass the Bill for One MSP for the Entire linked with Industrial Price Index and Inflation so as to protect the Interest of Farmers for getting the Best Price of the Crop which they decide themselves independently.

Civilization began with Agriculture and though Humanity has changed
significantly, Agriculture still remains very important for any country. In certain countries its significance is more obviously apparent, but the reality is that every country in the World depends on Agriculture for one thing or another.


There are Ten Reasons Why Agriculture is Important for India as well as
any other country of the World. It provides Raw Material, International
Trade, Nation Revenue, Employment, Crucial to Country Development,
Heal Environments, Goes Hand in Hand with War, Source of Food supply,
Drives Industries in Technology and State of Agriculture reflects our
future.


In the year 2007, 2009 Regional Draughts and Heat waves damaged the Wheat Crops in Ukraine and Russia and Causing Global spike in Wheat Prices Substantially. In the year 2012, Heat and Draught in America slashed Corn, Soyabean and other crops yields by 27%. Apart from this yield of Important Food Crops are also affected by Plant Diseases, Poor Soil Quality, Poor management Practices as well as Damage from Air Pollution.

There are increasing instances that Very Poor Countries Food Prices shoot up and shortage lead to Civil Unrest and Other Social as well as Political Stresses. These days major crops are traded in Global Markets and the poor production have far reaching impacts on the World Economy. Zimbabwe has faced Economy Crises due to COVID-19 when Inflation rose to 521% with Food Prices going to 725% (Inflation is General Rise in Prices Over a Particular Period).


• Top Ten Grain Producing Countries are India with Wheat Production of
1,03,000,000/- Market value after China 1,35,000,000/- Rice production is 116.42 Mt.Tn after China, 148.5 Mt.Tn, Indonesia 36.7 Mt.Tn, Bangladesh 34.91 Mt.Tn etc.


Imagine a situation when the several of the World biggest Food Crops failed at the same time With the impact of such shocks of major damages in the World, total amount of agricultural production in South Asia changes little because of the shocks of the other countries of the World. This is mainly because most of the arable land is already in use. On contrary Brazil has the ability to bring new land into production to evade impact of heavy shocks occurred elsewhere.


Indian Economy of 2.65 Trillion Dollar is more of dependence on
Agricultural Production to the extent of 18%. This has already been affected adversely by COVID 19 by Loss of Income of Twenty Trillion and the prolonged Farmers Agitation is causing heavy losses of 3500-5000 Crores everyday in the Four States of Punjab, Haryana, Himachal Pradesh and J. & K.


Apart from this other Sectors like Textile, Garments, Tourism etc. are also heavily affected. Estimated loss to the Indian economy is Rs. Seventy Thousand Crore and this is causing long lasting damage to the other Industries dependent on Agricultural raw material and is also the Great Loss to the Growth of the Country.

Due to such shocks and various trials of the Corporate Farming, Family
Farming and Farmers have miserably failed in USA, The Philippines and many other European Countries. Farmers there are in Deep Crisis.


Indian Farmers need to have a Safety net and also understand well the
need to Modernize the Cropping Patterns to have a Maximum Income and are ready for it. But policy makers for passing these three bills have no touch with the Farmers and simply frame policies based on discussions in the Board Room and Corporate Vision. All the Farmers large, Medium and Small & Marginal and all other types have to be on the table and the table is got to be in the Farm and not in the office of Think Tank, Corporate Office or Board Room who are absolutely clueless about the Plight of Farmers. This has caused the Long Six Months Farmer Agitation starting from June when the Ordinances were brought without any consultation and got them passed from the Parliament in an illegal/unlawful manner which is against the Basic Principle of Democracy with the apprehension that Bills are against the Farmer and would not allowed to be passed in normal course. This action of the Govt. of India has resulted in the loss of huge number of Valuable, Precious, Human lives of Farmers and obliged Corporates in accordance with their requirements with New Farms Bills.


Prime Issues Involved are allowing the Corporates for unlimited storage,
which is not only Harmful for the Farmers but for Whole Nation when the
prices shoot up abruptly. Dispute if any cannot be taken to Court, Corporate can raise loan against the agreement of cultivation from the Bank, Insurance, Construct Storage tanks as per their requirement on the field of the Farmer, 18% GST to be paid by Farmer as a Service Provider and Exemption of Taxes for Corporates will be available whereas presently 70% population of the country is agriculture based sectors and are exempted from any type of tax. All Bills of contract farming and other activities are already in existence and the New Bills are unwanted because of favouring Corporates and further penalizing the Farmers.


Prime Key Area which requires the immediate attention of Govt. of India
is to pass the Bill of MSP duly linked with Industrial Price Index and Inflation so that the interest of the Farmers is properly watched as the inflation increases from time to time and given to all other sectors.

Second main issue to be taken care of, is to continue with the existing contract system of farming and other types of farming with the Existing Laws.


Third Main Issue


Immediate Policy should be for removing Hunger of Farmer, pulling
them out of debt traps, ensuring fair remuneration of food produced and
maintaining Ecological Balance. These are the most important items of the
attention of the Govt. and Immediate action is required to be taken to encourage Organic Farming, Give Incentives and Subsidiaries for adopting sustainable agricultural practices.


Inflation is flaring up in the year 2020-21 further reflecting the drastic
impact of Covid 19 including lockdown measures and now with prolonged
Kisan Agitation which has badly affected supply chains and displayed
significant convergence of food prices inflation. After April-May 2020 Reserve Bank of India has been tasked by Govt. of India to keep the inflation at 4% (+/–2%).


This has affected adversely the GDP of the Company (GDP is final value
of Goods & Services produced within the Geographical Boundaries of a
Country in the specified period) of the country and made to other Sectors also for a long unlimited time which is still continuing and unknown for how long it may prolong Inspite of series of meetings held with the Farmers and in the Supreme Court. GDP of India is 2.65 Trillion with Population of 1,380,004,385.


India is taking a big risk of shifting to Corporate Farming when the Major
Corporates of the Country are in Bad Shape and Default with Heavy Amount to the Banks by the way of NPA’s (Non Performing Assets) and concessions allowed to Corporate as on date by way of Writing of is 39 Billion Dollar loans in the last eighteen months and is the World’s Worst Bad Debt Pile of India.

Three companies of Anil Ambani namely Reliance Communications, Reliance Telecom, Reliance Infratel have been declared fraudulent by Rs.
86188 Crores Mukesh Ambani Group has been Penalized by Rs. 70 Crores for Giving Manipulative Trading Figures by SEBI (Stock Exchange Board of
India). His Worth fell down to 76.5 Billion Dollars from 90 Billion in a short
span due to Agitation of Farmers and Gone to 11 th Ranking from 4 th in the World. Similar Penalty for giving wrong information is Stock Exchange of USA by Rajat Gupta and was Jailed for Five years with Life Long Ban from Stock Markets. Other such Grand Tycoons gone into Bankruptcy in the recent past are Vijaya Mallya, Naresh Goyal, Jet Airways, Rana Kapoor, Yes Bank, V.G. Sidhartha, Café Coffee Day, Shashikant & Ranbir Ruias, Subash Chandra, Essel Group, Malvinder & Shavinder Singh, Fortis Group, Gautam Thaar, Avintha Group and many more. Even Adani Group is also having Many problems such as dispute of GSPC of Rs. 20,000 Crores & others in various Countries.


Interestingly Top 29 Corporates of the World went into Bankruptcy and out of them 28 were Known Stalwarts and Nobel Prize Winners.
American Farming / Farmers are in deep crisis and this is besides the
Federal Govt. provides subsidy of $ 4 lakh million from their strong Economy Backup to save the Farming / Farmers and control prices across the World. On Contrary Indian Economy is in a bad shape and is not in position to save the Farming / Farmers by such a huge amount of subsidy.
India is the sixth Largest Economy of the World surpassing countries like UK, France, Canada, Australia and many other countries but the factual position is the majority of the population is poor and leading miserable life. This is in controversy to Indian Economic position in the World and Countries like China, Canada, Australia, New Zealand, Japan, Germany having economy Smaller than India with per Capital income are more than India because of their Sources Opportunities, Employments and Backup in the Economy.

Farmers are Prime Community for contributing the maximum to the
Economy of the Country and Govt. of India must not let them suffer and loose the Precious Lives in the Country where 70% Population of the Country is earning bread and butter from Farming activities and almost 60-70% population is also given employment by this Sector. They are the Ones who have created Green Revolution, Blue Revolution, White Revolution in the Country and had been accepting the Modernization of Farming from time to time as per the advice and consultation with known authorities in the field of perfection.

Great Wizard and Statesman, Our Late Prime Minister Sh. Atal Bihar
Vajpayee Ji Words Have Deep Meaningful Sentiments that “Leaders Don’t
Force People To Follow, Rather Invite Them For Participation.


Honourable Prime Minister Sh. Narinder Modi Ji and Govt. of India Head
is requested to Respect and Honour the Farmers with Slogan (Jai Jawan Jai
Kisan) for their Participation for the Modernization and Growth of the Country.


It is expected that Country Head has value even for one Human loss of life
when many lives have been lost in the protest. They have created History in so many fields related to Agriculture Sector by creating a World Record and have the Capacity to Save the Nation from the Economic fall down because of prolonged Covid 19 and to cover up Agitation loss of Economy by hand in hand with Govt. And the Farmers be given free hand to produce the different crops beneficial in various parts of the country and have the freedom to fix the price to sell their produce independently with One MSP One Nation (like One GST One Nation) be Fixed and Law be Passed by Govt. of India linked with Industrial price index and Inflation as is being given in all other Sectors (like One GST One Nation).

(The author is the Senior Advisor with The Fact News)