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Thread on whole controversy around Farm Bills and why Only Punjab and Haryana ‘Farmers’ are protesting.
#FarmerPolitics
#BharatBandhNhiHoga
#BharatBandhOn8December2020
(1/n).
#FarmerPolitics
#BharatBandhNhiHoga
#BharatBandhOn8December2020
(1/n).
First I would like to make it clear that though there are many political reasons for these Protest like Opposition parties and some people in Canada and UK , it is mainly the structure of Farming in Punjab which is behind these protests.
There are many factors involved in these protests. These are :-
1. Arhatiyas or Commision Agents
2. Farm Debts
3. Blackmoney and corruption
4. Subsidies
5. MSP
6. Socio-Political Environment of Punjab
#BharatBandh
1. Arhatiyas or Commision Agents
2. Farm Debts
3. Blackmoney and corruption
4. Subsidies
5. MSP
6. Socio-Political Environment of Punjab
#BharatBandh
Since the green Revolution, two types of Markets emerged in Punjab.
1. Product Market
2. Credit Market
The public institutions failed to service both these markets. Here the role of arhtiyas became important.
1. Product Market
2. Credit Market
The public institutions failed to service both these markets. Here the role of arhtiyas became important.
For the product market they provided services like :-
1. Public and private procurement
2. Auctioning of produce
3. Payment to Farmers after sale
4. Equipments, Machines and labour for weighing and stiching grain bags at a fixed rate (Punjab Agriculture Produce Market Act 1961)
1. Public and private procurement
2. Auctioning of produce
3. Payment to Farmers after sale
4. Equipments, Machines and labour for weighing and stiching grain bags at a fixed rate (Punjab Agriculture Produce Market Act 1961)
2. Credit Market : Arhtiyas provide non -institutional credit to the farmers. This has been a practice for over a century.
This was exploitative from the outset and many laws have been passed to control and regulate this practice. After green revolution it has only increased.
This was exploitative from the outset and many laws have been passed to control and regulate this practice. After green revolution it has only increased.
Let’s look at the Farm debt in Punjab. Punjab has highest per capita Farm debt in country. With over one lakh crore debt, Punjab farmers are reeling under debt. https://indianexpress.com/article/india/punjab-farmers-debt-suicide-amarinder-singh-6321411/
A sample survey showed the capacity to payback debt, i.e., debt servicing capacity of Punjab farmers is abysmal.
It is negative for Marginal farmers.
The number of Marginal farmers has been decreasing in Punjab for decades.
It is negative for Marginal farmers.
The number of Marginal farmers has been decreasing in Punjab for decades.
The debt to income ratio is 1.4 for Marginal farmer while it is 0.26 for large farmers.
The small and marginal farmers are not in condition to payback loans.
The small and marginal farmers are not in condition to payback loans.
What is the reason for this ?
The reason is that Marginal and small farmer takes nearly 20% of their loan from commission agents.
While large and medium farmers take 4.22% and 8.61% respectively.
This data itself shows how oppressive informal loan system is.
The reason is that Marginal and small farmer takes nearly 20% of their loan from commission agents.
While large and medium farmers take 4.22% and 8.61% respectively.
This data itself shows how oppressive informal loan system is.
Data also shows nearly 21% of all the loans to farmers are disbursed by Moneylenders and Commission agents.
So, out of the debt crisis of 1 lakh crore we can safely get 21 thousand crore to be the quantum of money involved here. No wonder protests are there.
So, out of the debt crisis of 1 lakh crore we can safely get 21 thousand crore to be the quantum of money involved here. No wonder protests are there.
This is not all, the amount of interests paid are exorbitant. Anywhere ranging from 15% to 35% annually.
The bigger farmers are able to get lower rates. As we have seen before, the cost for small and marginal farmers are high and this wide variation is also one of the reason.
The bigger farmers are able to get lower rates. As we have seen before, the cost for small and marginal farmers are high and this wide variation is also one of the reason.
Somif the loan is given for 8 months the arthiya can earn as high as 24% return.
This is roughly 5000 crore rupees earning from 21000 crore debt.
This is roughly 5000 crore rupees earning from 21000 crore debt.
So, what is the security mechanism for Arthiyas ?
There is no DBT in Punjab. All the procurement transactions are done through arthiyas.
Arthiya is not only responsible for procuring farm produce but payment to farmer too. This is the ultimate guarantee for laons.
There is no DBT in Punjab. All the procurement transactions are done through arthiyas.
Arthiya is not only responsible for procuring farm produce but payment to farmer too. This is the ultimate guarantee for laons.
This is not the only source. All the procurement done by private players are also done through Arthiyas. Here, Arthiyas procure from farmer without giving him J form.
J form is a form filled for public procurement.
J form is a form filled for public procurement.
Public procurement has various fees and taxes like mandi tax etc.
So, when Arthiyas sells it without J form, they pocket this money .
So, when Arthiyas sells it without J form, they pocket this money .
Now the biggest question ? From where do these Arthiyas get such huge amount of money.
According to estimates, lne arthiyas on average give 70-80 lakhs on loans and earns around 16 to 20 lakhs.
From where this money comes.
According to estimates, lne arthiyas on average give 70-80 lakhs on loans and earns around 16 to 20 lakhs.
From where this money comes.
While Arthiya can facilitate formal money lending this is not the case often.
The claims of huge black money involved are not without reason. http://www.catchnews.com/india-news/desperate-times-measures-punjab-arhtiyas-making-farmers-convert-their-black-money-to-white-1480151709.html
The claims of huge black money involved are not without reason. http://www.catchnews.com/india-news/desperate-times-measures-punjab-arhtiyas-making-farmers-convert-their-black-money-to-white-1480151709.html
It is often said they Arthiyas are safer than banks for many people with surplus of black money.
With 25% returns as we have seen before, they can define give 15-20% to ‘co-investors’.
No bank can give these returns.
With 25% returns as we have seen before, they can define give 15-20% to ‘co-investors’.
No bank can give these returns.
What are the sources of black money in Punjab
-Udta Punjab
-Hawala
-Other income like shops,transport etc.
-Udta Punjab
-Hawala
-Other income like shops,transport etc.
Another major source is Benami.
Since there is land ceiling in farm land while it is not possible to exist as a small and marginal farmer as we have seen before, where will the land go ?
Obviously, some will acquire land beyond ceiling limits.
Since there is land ceiling in farm land while it is not possible to exist as a small and marginal farmer as we have seen before, where will the land go ?
Obviously, some will acquire land beyond ceiling limits.
All these lands end up with big farmers and Arthiyas themselves. It is another big reason for not going for DBT.
So far I we have seen these things.
-Arthiyas and their role in debt
-Amount of huge debt
-Informal debt by Arthiyas
- Source of money for Arthiyas
- Blackmoney owners investing money in Arthiyas
- Benami land grab
-Money from J form steal
-Arthiyas and their role in debt
-Amount of huge debt
-Informal debt by Arthiyas
- Source of money for Arthiyas
- Blackmoney owners investing money in Arthiyas
- Benami land grab
-Money from J form steal
*I forgot to mention. All those who sell without J form don’t get any benefit announced by Government.
Why are the so called small farmers protesting ?
1. There is no way to find out landholding size from their faces, so it is not entirely true. There may be some.
2.Many are in the clutches of Arhtiyas and large landlords. There are many good Arthiyas who help farmers but not all
1. There is no way to find out landholding size from their faces, so it is not entirely true. There may be some.
2.Many are in the clutches of Arhtiyas and large landlords. There are many good Arthiyas who help farmers but not all
3. Arthiyas employ many people and many people have business dependence on them like transporters, labourers etc.
If 50000 Arthiyas go out of business, so will they. Number could be in lakhs.
If 50000 Arthiyas go out of business, so will they. Number could be in lakhs.
But these are not real fear. Many people will be absorbed by private sector if private sector expands in Punjab. It would be any day better than working for a commission agent.
Punjab farming is cocktail of Black money i.e., bureaucrats, politicians, udta punjab, etc., Arthiyas , Large landlords and debt ridden small farmers.
Rest I will cover after I come back. Family Emergency
Rest I will cover after I come back. Family Emergency
Let's cintinue with MSP.
So is MSP in Danger - Yes
Is BJP lying - No
Then How is it in danger?
Let Me explain....
So is MSP in Danger - Yes
Is BJP lying - No
Then How is it in danger?
Let Me explain....
Not all states are equal when it comes to public procurement. Some states are preffered over others for certain crops.
Additionally some states announce support price above MSP announced by Central government.
Additionally some states announce support price above MSP announced by Central government.
While central government announces the MSP for procurement , the states invest in infra and provide many services for this purpose.
So keeping all that we have discussed till now lets see the real reason for threat to MSP.
So keeping all that we have discussed till now lets see the real reason for threat to MSP.
The Farm ordinance opened the agriculture market for everone. But this has huge ramifications for current MSP system in Punjab. Why? Let's see..
1. The process of procurement and payment of MSP is done through Athiyas. And we have seen how it affects Arthiyas.
2. The restrictions on movement of farm produce in neighbouring states would be removed. This will indirectlyvaffect Punjab.
2. The restrictions on movement of farm produce in neighbouring states would be removed. This will indirectlyvaffect Punjab.
Traders would be able to game the system and procure from neighbouring states some commodities might be cheaper and sell it to government using Arthiyas.
Would Punjab administration be able to stop it? I don't think so.
Would Punjab administration be able to stop it? I don't think so.
It would be next to impossible for Punjab to continue MSP system in its current form if the neighbouring states become free trade zones.
So, is BJP lying when it says MSP would be unaffected? No.
But what what they are not telling is that it won't continue in its current form.
So, is BJP lying when it says MSP would be unaffected? No.
But what what they are not telling is that it won't continue in its current form.
What is the way forward?
The only way to stop misuse of state's quota in procurements is DBT. Without DBT, it is next to impossible to stop smuggling whether Punjab passes APMC amendments or not.
The only way to stop misuse of state's quota in procurements is DBT. Without DBT, it is next to impossible to stop smuggling whether Punjab passes APMC amendments or not.
So, what we see in these protests are multitude of issues.
While the concerns about MSP are genuine they are only half truths.
Only the MSP in it's current form would be affected.
While the concerns about MSP are genuine they are only half truths.
Only the MSP in it's current form would be affected.
Let me summarise this issue with complete picture :-
1. Free trade in neighbouring states will make it difficult to stop illegal smuggling into Punjab.
2. The only way forward would be direct benefit transfer or DBT.
3. As we have seen before, DBT would open pandora box in Punjab
1. Free trade in neighbouring states will make it difficult to stop illegal smuggling into Punjab.
2. The only way forward would be direct benefit transfer or DBT.
3. As we have seen before, DBT would open pandora box in Punjab
Let me summarise the problem with DBT as well.
1. It will end the control of Arthiyas of payments to farmer and end his role as money lenders.
2 Arthiyas provides many services but its role in credit market is as a propagator of black money.
1. It will end the control of Arthiyas of payments to farmer and end his role as money lenders.
2 Arthiyas provides many services but its role in credit market is as a propagator of black money.
3. All benami land grab by Arthiyas, Lanlords, politicians, bureaucrats etc., would come to fore.
4. People who invested black money with Arthiyas will suffer.
Let me give you broader picture why small farmers and rent farmers are protesting.
4. People who invested black money with Arthiyas will suffer.
Let me give you broader picture why small farmers and rent farmers are protesting.
From here, there are two possibilities. Either DBT or no DBT.
In case of DBT
1. small farmers would loose a reliable credit source in Arthiya if Arthiya credit system fails due to enforcement of DBT.
2. Rent farming would become much more complex.
3. Credit would become complex
In case of DBT
1. small farmers would loose a reliable credit source in Arthiya if Arthiya credit system fails due to enforcement of DBT.
2. Rent farming would become much more complex.
3. Credit would become complex
4. Many emoloyees of Arthiyas would be rendered jobless due to shrinking income of Arthiyas.
5. Arthiyas may prefer large farmers if they have to work for meagre 2.5 % fees.
5. Arthiyas may prefer large farmers if they have to work for meagre 2.5 % fees.
6. Influencial and powerful moneylenders having specialised manpower for extracting loans would become go to source for money lending. Arthiyas are anyday better than such people found across India.
In case of No DBT
1. State government would not be able to differentiate farm produce. The first victims would be small farmers. Large farmers, traders, arthiyas would be in position to exhaust all the capacity of state to procure.
1. State government would not be able to differentiate farm produce. The first victims would be small farmers. Large farmers, traders, arthiyas would be in position to exhaust all the capacity of state to procure.
2.People with black money would find another business to invest money in the form of interstate food smuggling. While the small farmer would run Pillar to post for procurement.
Right now, it is hard to imagine since state capacity more than produce. It won't remain so forever.
Right now, it is hard to imagine since state capacity more than produce. It won't remain so forever.
The question is- would state of Punjab go with DBT. The problems of small farmers after DBT are mainly credit related can be solved with intervention. Also, state will have to make sure Arthiyas procure from small farmers too. Any job loss woukd be compensated with new jobs.
In case no DBT, it would be impossible for differentiate. System choked with produce from other states will harm the local farmers much more.
Farm protests are unlikely to stop due to these many unsaid reasons. Even with guarantee of MSP from centre, I doubt farmers will relent easily.
Things are already going in that direction. Haryana is in position to stop this while Punjab is not in that position.
Without DBT, it is unlikely that it will be. https://www.google.com/amp/s/www.newindianexpress.com/nation/2020/dec/01/row-erupts-as-khattar-says-wont-allow-rajasthans-bajra-in-haryana-2230498.amp
Without DBT, it is unlikely that it will be. https://www.google.com/amp/s/www.newindianexpress.com/nation/2020/dec/01/row-erupts-as-khattar-says-wont-allow-rajasthans-bajra-in-haryana-2230498.amp
So, we can safely say that MSP would virtually end because of two reasons
1. Free market in Vicinity of Punjab which will lead to smuggling from neighbouring states
2. Refusal to link Farmers with biometric verification because of Benami, Black money, Arthiyas etc.
1. Free market in Vicinity of Punjab which will lead to smuggling from neighbouring states
2. Refusal to link Farmers with biometric verification because of Benami, Black money, Arthiyas etc.
So, when Congress says MSP will end, they are not lying. But what they are not telling you is that it will end because of Smuggling , lots of Benami properties and hell lot of Black money.
The last and most controversial part.
The social structure of Punjab. The free market is not only threat to black money, Benami and corruption in Udta Punjab, it is a big threat to its current social and political structure.
The social structure of Punjab. The free market is not only threat to black money, Benami and corruption in Udta Punjab, it is a big threat to its current social and political structure.
There are 150 million farmers in India, roughly 11% of Population. While there are nearly a million farmers in Punjab, less than 4% population.
Then why does Punjab Portrays itself as Farming state ? Because farming is biggest source of underground economy as we have seen before.
Then why does Punjab Portrays itself as Farming state ? Because farming is biggest source of underground economy as we have seen before.
Other than that, the social structure of Punjab is heavily skewed in favour of Landowning castes of both Hindus and Sikhs (Yes caste system in Sikh religion too).
Let’s see some data.
Let’s see some data.
Only 3.59% of private agricultural land area belongs to Dalits. Punjab has highest Dalit population in India at 32%.
Compare that to whole India. Dalit population at 25% and 8.6% Agricultural land ownership.
Compare that to whole India. Dalit population at 25% and 8.6% Agricultural land ownership.
Let me explain to you how this is linked to present day Khalistanis sikhs. The Khalistan project was a brainchild of British.
Under the policy of divide and rule , the British passed Punjab Land Alienation act in year 1900.
What this did ?
Under the policy of divide and rule , the British passed Punjab Land Alienation act in year 1900.
What this did ?
British created an idea of ‘Martial’ races/ castes. All the landowning was given to these martail castes, mostly Jats and Muslims( it included Pakistani Punjab).
The dalits were biggest sufferers in this.
The dalits were biggest sufferers in this.
In order to create obedient soldier caste, the British created this idea of proud mercenary .Ever wondered why Punjab dominated Pakistan fights for anyone who pays?
British themselves created elites all across India & later cemented their status with scheduling them into castes.
British themselves created elites all across India & later cemented their status with scheduling them into castes.
Not only land owning. The Upper caste dominates the money lender market too.
What will happen to Canada based McSikhs( Term given by @Sanjay_Dixit ji ) if they stop earning from Land.
Do you know NRI’s can own Land and never show up. Who manages their land ?
Arthiya
What will happen to Canada based McSikhs( Term given by @Sanjay_Dixit ji ) if they stop earning from Land.
Do you know NRI’s can own Land and never show up. Who manages their land ?
Arthiya
From this you can also understand who owns most of the Benami properties & black money. Obviously those who own lands, both legal and Benami lands.
When you see the five star services offered in ‘Farmer’ protests, don’t be surprised. It is their lifestyle in general.
When you see the five star services offered in ‘Farmer’ protests, don’t be surprised. It is their lifestyle in general.
So, not only egalitarian Punjab is a myth, the whole hierarchy is funded by Black economy.
Modi government knows all this. So when they say they are ready to make any amendment that farmers demand, they are serious because no amendment will stop this anti corruption drive.
Modi government knows all this. So when they say they are ready to make any amendment that farmers demand, they are serious because no amendment will stop this anti corruption drive.
Ever wondered why farmers are ready for nothing except total removal of these bills, because once there is free market, they won’t be able to do anything.
Let me end this thread with a final part .
Have you ever seen the quality of grains procured by the government and sold at ration shops ? Do you think they are good quality grains ?
Do you think states producing such quality of grain would be able to compete in free market ?
Have you ever seen the quality of grains procured by the government and sold at ration shops ? Do you think they are good quality grains ?
Do you think states producing such quality of grain would be able to compete in free market ?
Have you seen wheat flour with ‘Punjab Wheat’ written on it. Best quality is ‘MP Atta’. Why don’t these companies buy from Punjab? Why they are sold to government at higher price in Punjab than good quality flour sold to private companies. Why are MP farmers not protesting ?
Fact is that this whole black economy is funded by our taxpayers money. Why should we allow this to happen ? Not to forget the annual Parali burning - Smog ritual.
Why should we tolerate so much for these Elitist Upper caste rich ‘farmers’ ?
Why should we tolerate so much for these Elitist Upper caste rich ‘farmers’ ?
If you reached here, thank you
Sorry for a lots of spelling mistakes and typos
Sorry for a lots of spelling mistakes and typos
Another thread exposing how it was Congress party which conspired to kill MSP for Farmers. https://twitter.com/aayushnarayan/status/1342439022853902337?s=20
