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A Tale of Three Farmers
Dr Bhaskar Dasgupta
When we talk about farmers in the west, the idea that emerges is of automation, subsidies, factory farming, etc. When we talk about farming in the lesser developed countries, they are at the subsistence level (farming just enough to feed their family). So the economics and public policy orientation for these emerging market farmers is seriously different to the western farmers. After all, if they do not make it work and their farms are flooded out, they get insurance and other assistance. But for farmers in say India, the results are tragic.
Many farmers suffer from overload of debt, fall into the trap of loan sharks and then commit suicide. In just one Indian state, Maharashtra, there have been 500 farmer suicides already according to a recent report. But be very careful when politicians start talking about farmers. I am immediately very suspicious about political help for farmers. Almost always, it is related to the politicians interest, and not to the farmer nor to the country and is almost always economically bad for the farmer, the state, the region and country.
And this is the tale of the second farmer. The BBC reports that Reliance, a conglomerate is closing its stores in another Indian state because of politically motivated violence against its stores. Apparently left wing and other political party supporters have attacked Reliance stores and destroyed property. You might think, yes, sir, makes sense, evil capital sucking the blood out of the farmers and small shopkeepers. But as I mentioned in an email today morning,
And then came this story, that farmers in Uttar Pradesh, another very poor state in India, are demanding that the Reliance stores be re-opened. It is worthwhile quoting the entire section from the third set of farmers.
So for political reasons, these political parties are willing to knock the poor farmers and the urban poor. Their investment in corrupt practises, their sheer economic illiteracy, their desire to keep people poor and kill themselves is criminal. Did you notice another word there? Transparency? That's what scares these political parties, because transparency exposes these cockroaches and maggots feeding on the body of the state.
Long way to go yet, but as I said in my email, you cannot stop progress and you cannot keep on violating the laws of economics!
All this to be taken with a grain of piquant salt!
A Tale of Three Farmers
Article
- » Published on August 29, 2007
- » Type: News
- » Filed under: .
- » This is part of a regular feature, With a Grain of Salt.
Savani Tatake
URL
August 29, 2007
08:27 AM
I think the government should just stay out of private business. If they get out of the way, businesses and enterprenuership will flourish.
Chandra
August 29, 2007
12:08 PM
BD
Excellent piece.
I worked closely with a private company buying cane directly from the farmers. This company had a continuous system to maintain SLAs with farmers (Support services and buying). These farmers were much better off selling to this company than going to the mandi.
On the issue of farmer suicides I read a recent report that blamed greed for a major cause of farmer suicides.
rgds
Sanjay Garg
August 30, 2007
01:34 PM
This article unfortunately paints a partial picture. While it is undeniable that the Reliance deal helps farmers in a number of ways, we should keep in mind that it will help only a percentage of the farmers. Of necessity, Reliance simply cannot commit to buying every KG of produce from each and every farmer in U.P.
Therefore, we need to recognize that there are those that benefit and others that don't. Needless to say, all sides have the democratic right to make their respective cases. It is false to make this a case of politicans vs farmers.
bd
August 30, 2007
02:32 PM
Nothing unfortunate about it, Sanjay. Nowhere I said that Reliance will take care of all farmers, but the politicans are making sure that the farmers it CAN help are not being helped.
Why would you assume that Reliance would purchase every kg? That's a bit silly.
And Sanjay, people will benefit and people will not, that's sort of obvious, dont you think? But when there are more people who are losing out for the past 60 years, you need to recognise that it is a structural issue. So who do you think is responsible for these structural issues?
Give you one hint, its politicians and their moronic economic policies.
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