Wednesday, December 16, 2020

Off the Farmer, Buy the Farmer and Far the Farmer

 
 
 

 


 

             

 

 

 

The title may sound bit preposterous but describes best the people opposing new Farmer’s Act. It took us more than 70 years of Independence to discover that peasants are found only in Punjab .They are concentrated only in that part of India. No other region has ever produced any agricultural product other than Punjab and certainly not the farmers. Then, who produces it in the other parts of India ? The conundrum certainly qualifies for the “Discovery of India”. Thanks to Modi government again! Had he not taken the gumption on the farmers’ bill, which is enacted now, we would not have been enlightened.

  

For a section of society and politicians, who are at loggerheads with Modi for almost two decades, every initiative is against proletariat, pro-corporate, anti-Muslim and certainly which jeopardizes the Constitution of India. I throw down the gauntlet on the people to cite any other reason which does not fit under these criteria for this set of intellectuals. Surprisingly, these endangered species have support coming from the so-called liberals, drawing room opinion makers with “Grey Goose” vodka being sipped after cursing Modi, Lutyens’ Delhi and some international personalities with vested interest. For them, Justin Trudeau, the Canadian Prime Minister, emerged as a messiah of farmer’s cause in India. The so-called liberal media , leftists and opposition parties started quoting him without realizing it to be a blatant and brazen act of interference in the internal affairs of a sovereign state in violation of the tenets of sovereignty as per the UN charter . India should raise its concern in United Nations through all available diplomatic means. It is no less than abetment to separatism in India . Time has come to put the foot down. Several questions were raised in the sections of Indian and Canadian media for not according the due respect and protocol to Mr.Trudeau during his visit some time back. He certainly did not deserve.

 There is a special quality of these liberalists. They feign to be self-proclaimed perfectionists mastering panacea to each problem that persists world-wide and derive the power from being anti-establishment. They resemble the spineless cocoons. Some of our friends would have never planted a pot but how can they resist the incessant obsession of standing against Mr. Modi in the name of farmers’ cause. He is the only Prime Minister of India who dared to change the politics of status quo, without contemplating the outcome in hustings.

 Then I come to the realization by the congress party of India that “Everything can wait but not the agriculture”- Jawaharlal Nehru quote by congress in its 2019 manifesto. What a confession! that too after around 60 years of their rule. In its manifesto, Mr. Rahul Gandhi, the one and only youth icon that India possesses, had promised exactly the same changes as implemented by the present government. Then why so much of brouhaha, from the congress ruled state of Punjab. Why farmers of other states including some being ruled by same congress are not protesting. Because there is a bigger design which Capt. Amrinder Singh also hinted after meeting Mr. Amit Shah few days back. So, has the protest orchestrated by congress against Modi government gone out of its hand ? Perhaps so.

 Merits of the Act-The Farmers (Empowerment and Protection) Agreement on Price Assurance & Farm Services Act, 2020 explicitly defines the rights and obligations of the farmer that no legislation has articulated. It addresses wide gamut of concerns. To start with, the act specifically prohibits lease, mortgage and transfer of title deeds of farm land. The act provides for the contract and transfer of produce and not the land. Initially, few miscreants tried to mislead the farmers citing it to be the nefarious design of Modi (not even the government) to transfer the land to big corporate, perhaps because of their experience and past record in Haryana and Rajasthan during the previous congress regimes.

  The farming agreement can be for a minimum of one crop season and maximum for five years. There is an interesting clause according to which if the price of the produce is likely to vary, such agreement shall compulsorily have a guaranteed price (fixed component) and a premium (variable component). Bereft of an iota of doubt, no one would have thought of the fixed and variable component in agriculture which  remains to be the sole domain of corporate world and pink papers. Going further, the onus of the quality checking before accepting delivery at farm gate rests with the sponsor failing which it is deemed to have been inspected. Coming to the issue of failed commitment, if the sponsor fails to honor its part, the farmer shall be compensated by one and half times of the contracted value. And if the farmer fails, it shall restrict to the cost incurred by sponsor as advance or input cost. The breach of contract on account of force majeure shall not hold the farmer guilty and liable. If this was not enough, the government has also made the provision to keep the contracted farm produce out of the ambit of Essential Services Act.

 The important and the only provision which is forcing them to take the entire Delhi,NCR and Western U.P. on ransom is the compulsion of trading of farm produce by the traders having PAN number issued by Income Tax Act,1961. There is an apprehension that these traders and brokers who make handsome money by cheating the farmers of the deserved price, would come under the tax net. 

Having dealt the intricacies of the Farmers’ Act, can the champions of democracy, supporters of free market and well-wishers of farmers explain why the farmer’s right to sell the produce in the best available market should be restricted? Why should they be deprived of their just rights? Is it not their birth right to sell the produce in the market attracting best price? Ridiculous, isn’t it!

When the liberals fail to reply logically, their siblings in the form of award winners emerge to return the accolades. But none of them returns the prize money along-with the interest of savings bank account for a number of years the public money utilized. At least, I have not witnessed any such award winner, if you have, please inform me at – 3vediprabhat@gmail.com.

 

Thursday, June 11, 2020

SILLY POINT








Talking of banks, CASA plays the most important role in the business books. CASA is nothing but an acronym for “ Current Accounts and Savings Account”. Interestingly, the meaning of the word “CASA” in Urdu is the utensil in which a  "fakir" ( a Muslim ascetic) seeks alms.  Current account is used  for business transactions whereas savings account by individuals for  purposes other than business. Current account remains very volatile whereas savings accounts are not to that extent. “CASA“ is the bread and butter for any bank. They are low cost deposits to bank. More the CASA of the bank, less the lending rates for customers.  It is also the toughest business to generate for any bank although sounds like cracking a hollow paper ball. In doubt, please talk to any banker, frustration and plight will erupt in unimaginable ways, a  caveat .

Without delving much into the intricacies of low cost funds, let us observe an intriguing data which is self-explicit and  also open to individual interpretation based on political penchant.

The sum total of savings bank account deposits in the commercial banks (both Indian and Foreign ) in India was Rs.10,927 Crs in 1980-81. In other words, sum total of the money lying in all the savings bank accounts in India. The same increased to Rs.50501 Crs in 1990-91, Rs.222982 Crs in 2000-01 and Rs.137288 Crs in 2010-11 . In 2018-19 , as per the latest data available, the savings account deposit was  whooping Rs. 4031177 Crs .

Here comes an interesting comparison between the figures of 2015-16 and 2016-17 ( the year of demonetization). As compared to 2015-16, balance in savings bank accounts grew by Rs.8,57,039 Crs ( 33% ), one of the highest  since 1980. Where do these Rs 8.5 Lac crores came from ?

                                                                                                                                              ( Amount in Crs )

Source: RBI: Handbook of Statistics on Indian Economy 2018-19, Table 48


If that is not enough, let me corroborate the above hypothesis with another example i.e. increase in public provident fund receipts (PPF) for the year 2016-17.

                                                                                                                                                   (Amount in Crs)

Source: RBI: Handbook of Statistics on Indian Economy 2018-19, Table 1


The total receipts in 1980-81 was Rs.59 Crs, whereas in 2015-16 it rose to Rs.7791 Crs whereas the next year, the so-called year of currency bloodbath, the receipts ballooned to whooping Rs. 17,235 Crs, an increase of 121% . Is it not something bizarre that in savings bank deposit as well as  public provident fund (PPF) cash is accepted and the spurt is  highest in these two deposit avenues. Though these must not be construed as a yardstick to measure the pros or cons of demonetization.

                                                  

                                 






Off the Farmer, Buy the Farmer and Far the Farmer

                              The title may sound bit preposterous but describes best the people opposing new Farmer’s Act. It t...