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#TheFarmBills
We were sitting and watching the 3rd ODI between India and Australia. During one of those breaks, I was channel surfing and my dad saw the news that the farmers were protesting in Delhi
We were sitting and watching the 3rd ODI between India and Australia. During one of those breaks, I was channel surfing and my dad saw the news that the farmers were protesting in Delhi
2/n
So he wanted to know the reason.
A small flashback - my native village #Budalur is in Tanjore district on the banks of #Vennar and my dad was employed with #BHEL #Trichy between 1966 & 2000
So he wanted to know the reason.
A small flashback - my native village #Budalur is in Tanjore district on the banks of #Vennar and my dad was employed with #BHEL #Trichy between 1966 & 2000
3/n
My grandfather passed away in 1971 and his elder brother passed away in 1979. The responsibility of taking care of the farm lands was on my father since then.
Yes, he was a farmer till around 1993-94, when he sold the last piece of land that the family owned.
My grandfather passed away in 1971 and his elder brother passed away in 1979. The responsibility of taking care of the farm lands was on my father since then.
Yes, he was a farmer till around 1993-94, when he sold the last piece of land that the family owned.
4/n
I have accompanied him for harvests when I was in school, that typically happens during the half-yearly school holidays around late Dec/ early Jan.
Typically an agent would visit the "kalam" (the place where the paddy would be thrashed and grains separated.
I have accompanied him for harvests when I was in school, that typically happens during the half-yearly school holidays around late Dec/ early Jan.
Typically an agent would visit the "kalam" (the place where the paddy would be thrashed and grains separated.
5/n
He weighs them, pays for the produce and takes it to the godowns (think TNCSC). Never really understood why we cannot take it to the godowns and sell the same. Dad used to say - its the convenience as he had a full time job and cannot spend time in the queue
He weighs them, pays for the produce and takes it to the godowns (think TNCSC). Never really understood why we cannot take it to the godowns and sell the same. Dad used to say - its the convenience as he had a full time job and cannot spend time in the queue
6/n
And he used to maintain the farm expenses in a diary - and after most harvests, it would be a deficit (after accounting for the paddy retained for domestic use) - sometimes small, sometimes large.
And he used to maintain the farm expenses in a diary - and after most harvests, it would be a deficit (after accounting for the paddy retained for domestic use) - sometimes small, sometimes large.
7/n
My first equity investment was in 1993 in one of those IPOs (that did surprisingly well) and although I was studying to be a Mechanical Engineer, I was learning about investing and businesses (will write later on my early experiences).
So once I asked him about farming.
My first equity investment was in 1993 in one of those IPOs (that did surprisingly well) and although I was studying to be a Mechanical Engineer, I was learning about investing and businesses (will write later on my early experiences).
So once I asked him about farming.
8/n
His single line answer - "If a farmer looks at profits and losses, he will never continue farming".
He thought it was a higher purpose of feeding till he can afford the losses. So it was about minimising the losses, and considering he had a full time job he could do that!
His single line answer - "If a farmer looks at profits and losses, he will never continue farming".
He thought it was a higher purpose of feeding till he can afford the losses. So it was about minimising the losses, and considering he had a full time job he could do that!
9/n
Back to present!
So when he read the details of the farm bills - he smiled and said the small and marginal farmers should be happy, provided the private sector can behave in a fair manner.
Back to present!
So when he read the details of the farm bills - he smiled and said the small and marginal farmers should be happy, provided the private sector can behave in a fair manner.
10/n
The farming eco-system is dominated by large land owners that plays the role of financiers, fertiliser dealers, equipment renters and procurement agents too!
The farming eco-system is dominated by large land owners that plays the role of financiers, fertiliser dealers, equipment renters and procurement agents too!
11/n
The small and marginal farmers were non-entities in this eco-system. In essence they operated as contract farmers for the larger farmers, where they were financed, given seeds (in some cases), given fertilisers on credit, could rent equipments on credit!
The small and marginal farmers were non-entities in this eco-system. In essence they operated as contract farmers for the larger farmers, where they were financed, given seeds (in some cases), given fertilisers on credit, could rent equipments on credit!
12/n
And in return were expected to sell the produce back to them at a priced fixed by them. If the produce fails - they probably lost a portion of the land and become more marginal.
And in return were expected to sell the produce back to them at a priced fixed by them. If the produce fails - they probably lost a portion of the land and become more marginal.
13/n
When I asked my father as to why they cannot sell to the TNCSC, he had a wry smile.
Apparently the conditions laid out includes a humidity component, that significantly reduced prices. Paddy harvested fresh in winter would have a humidity higher than permitted.
When I asked my father as to why they cannot sell to the TNCSC, he had a wry smile.
Apparently the conditions laid out includes a humidity component, that significantly reduced prices. Paddy harvested fresh in winter would have a humidity higher than permitted.
14/n
Hence it needed drying in open air, which many cannot afford to do.
So he found it "convenient" to sell to a middleman, who can hold it and dry or manage the eco-system.
Hence it needed drying in open air, which many cannot afford to do.
So he found it "convenient" to sell to a middleman, who can hold it and dry or manage the eco-system.
15/n
In essence according to him, with banks financing farmers, introduction of crop insurance and with removal of monopoly now - the large farmer driven eco-system may lose power.
The operating word is "may", provided the private sector is fair to the marginal farmer.
In essence according to him, with banks financing farmers, introduction of crop insurance and with removal of monopoly now - the large farmer driven eco-system may lose power.
The operating word is "may", provided the private sector is fair to the marginal farmer.
16/n -end
No wonder the eco-system is fighting back against the farm bills!
Between 1990s and now, the situation may have changed. This is just a view of a man that was a farmer till mid 90's and spends most of his time between Sudoku, watching cricket or playing with grandkids
No wonder the eco-system is fighting back against the farm bills!
Between 1990s and now, the situation may have changed. This is just a view of a man that was a farmer till mid 90's and spends most of his time between Sudoku, watching cricket or playing with grandkids
