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Ours is the largest trade union of the coal workers in India. Its membership is about 50,000. This organisation functions mainly in the coalmines of Eastern Coalfields Limited, a subsidiary of Coal India Limited, under Raniganj Coalfields in West Bengal and some areas of Jharkhand. It is in the forefront of the movement of coalmine workers in India.
Through a press statement issued from New Delhi by AIKS president S Ramachandran Pillai and general secretary K Varadha Rajan on October 21, the AIKS said the Congress-led UPA government has betrayed the crisis-stricken farmers of our country by announcing a paltry increase in MSP of rabi crops, turning a blind eye to the exorbitant increases in the input costs. The MSP announced on October 20 is unacceptable and is an insult to the toiling peasantry, the AIKS added.
The organisation opined that the UPA government’s bluff must be called and the misrepresentation of facts to create an impression that the MSP is remunerative or “handsome” must be exposed. Certain points are worth noting in this regard.
The government has depended entirely on the cost of cultivation data provided by the Department of Economics and Statistics and mechanically computed the MSP. These figures are unrealistic and far below the actual expenses incurred by the farmers.
The cost calculations by the state governments, farmers’ representatives and the AIKS --- presented before the Commission on Agricultural Costs & Prices (CACP) in its meeting on June 25, are much higher. The AIKS has also noted in this regard that the CACP, which recommends the MSP for different crops after consultation with different state governments and farmers’ representatives, has no right to verify the actual costs incurred for cultivation of different crops.
The AIKS took particular exception to the fact that the government has not bothered to take note of the extraordinary situation in fertiliser prices as well as fuel prices other than the increases in the costs of other inputs while determining the MSP. While urea prices have increased by 10 per cent, the prices of DAP and MoP in the domestic market have risen by over 20 per cent according to available information.
Giving facts and figures, the organisation noted that when compared to huge increases in input costs, it is to be noted that the MSP of wheat in 2010-11 has been fixed at merely Rs 1,120 per quintal which is an increase of a paltry Rs 20 or 1.8 per cent over the 2009-10 MSP. This is at total variance with the AIKS proposal of Rs 1,700 per quintal. Wheat, on the other hand, is being imported at higher prices from countries like Australia and the USA. Recently the landed cost of imported wheat from Australia was Rs 1,417.50 per quintal at Tuticorin port excluding other charges.
Similarly, the increase in the price of rapeseed and mustard is merely 1.09 per cent. In the case of gram and masur, an effort is being made to portray it as though it is a substantial increase. It has to be noted, however, that these crops grown in semi-arid conditions with a high risk factor and the prices don’t provide any incentive to farmers. One cannot miss the fact that the market price of gram and masur is almost five times higher than the MSP. The proposals put forward by the AIKS and all the state governments were far higher than the MSP announced.
In the light of these facts, the AIKS has demanded a review of and adequate hikes in the MSP of the different rabi crops. It also stands for a consensus on calculation of the cost of cultivation through a consultation with state governments, experts and peasant organisations, for setting at rest the discrepancies in the calculation of cost of cultivation. All MSP calculation must be based on such a consensus and should be at least 50 per cent above the cost of cultivation.
COMPARISON OF AIKS PROPOSALS WITH THE MSP ANNOUNCED
| Commodity | MSP for 2009-10 | MSP for 2010-11 | Increase in MSP over 2009-10 | Percentage Increase over 2009-10 | AIKS Proposals to CACP |
| Wheat | 1100 | 1120 | 20 | 1.8 | 1700 |
| Barley | 750 | 780 | 30 | 4 | 1300 |
| Gram | 1760 | 2100 | 340 | 19.3 | 3000 |
| Masur (Lentil) | 1870 | 2250 | 380 | 20.32 | 4000 |
| Rapeseed/ Mustard | 1830 | 1850 | 20 | 1.09 | 3000 |
| Safflower | 1680 | 1800 | 120 | 7.14 | 3000 |
Source: www.pd.cpim.org
Vol. XXXIV, No. 44, October 31, 2010
On December 10, S Ramachandran Pillai, president of the All India Kisan Sabha (4, Ashoka Road), read out on behalf of his organisation the following message of greetings at the 28th national conference of the All India Kisan Sabha (Windsor Place), that took place at Aurangabad in Maharashtra.
ON behalf of the All India Kisan Sabha (
Another important feature of the present agrarian crisis is the deceleration in the agricultural growth rate and stagnation in agricultural production. The most disturbing feature is the rate of growth of foodgrain production is not picking up. Peasants’ suicides are continuing unabated. Poverty is spreading to newer sections and areas. Unemployment is growing. Pauperisation of the small and middle peasants is taking place at a faster pace. The number of workdays available to the workers and the wages of agricultural workers are declining. The indebtedness among the peasantry is growing. There is severe shrinkage of institutional credit facilities. The peasants and agricultural workers have no other option but to take loans from moneylenders at exorbitant rates of interest. The public distribution system is being dismantled. The intensity of the adverse effects of natural calamities is increasing year-by-year. Vast tracts of land have become uncultivable due to ecological changes.
The present crisis in agriculture is the result of the nature of capitalist path of development pursued by the ruling classes since independence. The feudal and semi-feudal fetters on the productive forces of agriculture have not been broken. Instead of taking steps to eliminate imperialist influence on the economy, the ruling classes have compromised with them. However, the agrarian policies pursued since independence have developed capitalist production relations in agriculture. These policies have benefited the rural rich comprising landlords, capitalist farmers, rich peasants and their allies. The post-independence period of capitalist development in
The present UPA government is pursuing anti-peasant, anti-agriculture policies. The reduction in investment for agricultural development has slowed down employment generation in rural areas and decline in public investment in agriculture including irrigation, power, agricultural research and extension services. The fertiliser prices have been deregulated leading to steep increase in fertiliser prices and shortage of fertiliser in many areas. The fuel and power prices have increased leading to spiralling input costs in agriculture. The union government has introduced a bill in parliament to take away the birth right of the peasantry --- to produce, to preserve and to exchange seeds --- and to hand over this right to multinational companies and Indian corporates. Now the agricultural policies are determined by the multinational companies. The Indo-US Knowledge Initiative agreement, which came into existence in 2005, is deciding the agricultural policies of the country. Representatives of MNCs, of Monsanto and Walmart are the members of the board of directors of the Indo-US Knowledge Initiative. They decide the policies of agricultural research and development. The central government has already signed free trade agreements with the ASEAN countries etc. The flow of agricultural commodities from these countries will cause disastrous effects on the life of the peasantry and agriculture. Now the government is negotiating with
The way out of the agrarian crisis can be found only in an alternative approach towards economic decision making in general and agriculture in particular. The alternative approach should aim to protect peasant agriculture from the catastrophic consequences of integration with global capitalism. Agriculture should be promoted through deliberate intervention by the state. The alternative approach should focus on the conditions of life of the agriculture-dependent population and should approach the agrarian crisis not only in terms of deceleration in output growth per se but also in terms of the crisis of the peasantry and agricultural labourers.
Peasant agriculture depends heavily on the support of the state for its survival and growth. The state should, therefore, make greater investments in irrigation, electricity, science and technology, rural development and social sectors like health and education in rural areas. The state also should actively intervene to provide debt relief measures, provide interest subvention to ensure institutional credit at low rates of interest, extension services and good quality inputs at affordable prices. Most importantly, the state should ensure remunerative prices for agricultural crops by expanding procurement operations on the basis of minimum support price to all regions and crops backed by an appropriate tariff policy. Without ensuring remunerative prices, it is not possible either to increase agricultural production or to make Indian agriculture internationally competitive. Increasing foodgrain production should be prioritised both by bringing more acreage under food production as well as productivity enhancements through scientific and technological developments. The FCI should be strengthened and universal public distribution system should be restored. It is also necessary to take appropriate measures for value addition and diversification in agriculture.
Agriculture has to be modernised to reduce the drudgery of peasant life and to make it an attractive occupation for the younger generation. The bound levels of custom tariffs on agricultural goods in the WTO should not be further reduced. Pressure from the developed countries for greater market access for their agri-business companies should be withstood firmly. The unfinished task of land reforms in most states should be taken ahead by breaking land monopoly vesting ceiling surplus land and redistribution of land among the landless households.
The question of land acquisition and conversion of agricultural land for non-agricultural use has been a matter of political as well as intellectual debate in recent times. The present Land Acquisition Act has to be amended appropriately. This has to be done by properly defining “public purpose” and making the “eminent domain” accountable and open to public scrutiny.
A national rehabilitation legislation should be passed, so displaced people are legally entitled to a share of the development that causes displacement. Conversion of agricultural land for urbanisation or industrialisation, if unavoidable, should be done in a planned manner in order to prevent the reckless real estate development and land speculation. For a developing country like
In order to achieve the above mentioned alternative policies, powerful united struggles of the peasantry, agricultural workers and workers are necessary.
The 32nd conference of the All India Kisan Sabha (
Source: www.pd.cpim.org/