For Onions selling at Rs.25 in the bazaar, the farmer gets Rs.3, for the Rs.20 tomatoes the farmer gets Rs.2, the same as in case of most vegetables. Potatoes harvested now are denied space by the cold storages, forcing them to ‘distress-sell’ at less than Rs.2, which reaches the bazaar around Rs.20/-. Turmeric, a bulk of which is produced in Telangana fetches merely Rs.4000 per quintal, as against Rs.15000 it used to bring earlier.
The tales of woes are similar all over India and for almost all crops, and agri-commodities. The suicides in regularity in the cotton growing belt of Maharashtra or the sugarcane growers or paddy growers is no different. For a market price of Rs.25 of any product the farmer gets Rs.3/- or at best Rs.4/- barely.
The farmers have little knowledge of economics and no idea of demand and supply. They are perpetually in the iron grip of the private moneylenders and the mandi owners as they have no holding capacity, nor transport facilities to reach their produce to the markets in any profitable manner.
Procurement patterns have changed, as corporates have sneaked in to rake in millions as tax-breaks from farm income, which is widely exploited by most politicians too. Big malls have started to buy but under harsh terms. MNCs are making a kill, merely sticking labels with their logos, escalating prices steeply, while the middlemen are cornering the bulk of the produce.
The case is same on the hills, vanilla, pepper, cardamom is all selling below cost of production. Many commodities are threatened by cheaper clandestine imports regardless of a minimum price fixed for duty assessment purposes. For example, 52% duty and a minimum rate for assessment set at $500 for black pepper from Vietnam are circumvented by re-routing via Sri Lanka, which is favourably levied a customs duty of 8%.
India escaped the meltdown in 2008 when most Asian economies tumbled. It’s primarily because of our food self-reliance. Though the sector employs nearly two-thirds of labour, the growth of Indian agriculture has been tardy with a contribution of 6.1% to its GDP. I leave for now the macro-micro interventions required to propel the sector but end with a note to highlight the importance of the farming community and their present state of despair.
Sampath Kumar
Intrépide voix