The Suffering of Indian Farmers

Farmers from various states of India like Madhya Pradesh, Maharashtra, Punjab, Gujarat etc., are right now agitating against their local state governments demanding, mainly, cancellation of their debts as well as better minimum support prices of their products. In the on-going agitation already six farmers have been killed by police firing.

This agitation is a sign of total dependency of Indian farmers on the state. The reason why they have to demand cancellation of their huge debt burden today is because in past they were given easy loans by the government’s central bank RBI and its commercial, mostly state run, banks. Specifically, these protests and killings of farmers are a making of RBI’s cheap money and credit policy. Overall, this uprising is yet another making of the failures of the state’s central planning socialist policies.

In the absence of these policies of cheap money and credit and central planning, farmers would be careful in borrowing money from the banks. More than farmers, private banks, working in a competitive environment of free market, would be extremely cautious in giving loans to sub-prime credit customers like many of the farmers who are right now agitating for cancellation of debt because they can’t repay it. Such banks will check the creditworthiness of their borrowers extremely carefully before lending them any money of their depositors. They would surely want to avoid the kind of NPA (non-performing assets i.e., unpaid loans) problems that is right now endangering the Indian banks. In a free market banking system the lending and borrowing activities will be regulated by the natural rate of interest which will be determined by the saving and consumption choices of Indians. In that system only economically viable projects will get loans from the banks, and that will definitely lower the possibilities of future debt default scenarios.

In the absence of availability of such easy artificial credit from the state run and regulated banks farmers will also be careful in starting new ventures or expanding the present ones. In the absence of minimum support price policy of the government, farmers will only do farming if they find it profitable. If some crop is unprofitable then they will either change the crop or get into some other line of business which is now profitable. The market price of agriculture products will efficiently regulate the farming sector activities. Basically, in the absence of welfare state policies, farmers will rely more on their own abilities of managing their affairs instead of looking at the government all the time for help. The way farmers in India are committing suicide is a sure sign of farmers’ inability to manage their own affairs and handle stress. Government’s years of easy money policies have corrupted hard working habits of farmers. Such policies have also destroyed local communities and self help groups which used to exist in past. Farmers together used to manage their own affairs, but now they can’t even take one step without government’s help! This situation is sad and deplorable. The welfare state has put the very welfare of farmers at risk!

The Indian welfare state, in its zeal of controlling and regulating everything, is meddling everywhere in the economy and making a mess of everything. The present suffering of farmers is just another such mess.

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One thought on “The Suffering of Indian Farmers

  1. samir sardana says:

    the Indian Farm Bill – Some Basic Facts

    Banias = Vermin
    Brahmins = Vermin
    Arhatiya = Vermin

    The Arhatiya have to be EXTERMINATED – alongwith the Bania scum.Indian Agriculture,is a Ponzi Story !

    Farmer A sells potatos at Rs 5/per Kg to Bania Arhatiya (B),who sorts,grades and sells to Bania wholesalers (C),at Rs 10/kg, who then sells to bania retailers (D),at Rs 20/kg,and then,who sell to users (F) at Rs 30/kg. dindooohindoo

    OR

    Bania Arhatiya (B),who sorts,grades and sells to Manufacturers (E)

    OR

    Bania Arhatiya (B),who sorts,grades and sells to Indian Walmart (G)

    Y not kill B,C and D ?

    Dharti Pe Bhoja

    Bascially B,C and D number 10-15 crore bania-brahmin vermin.They are worthless trash who cannot employed.So the Ponzi rule is that the Indian farmer (A) and the users (F),have to partake in a Ponzi Sceheme,to employ the bania vermin (B,C and D). So B.C and D are doing a Ponzi on A and F,with the blessings of the GOI – as the GOI is a nikamma namard state.

    Y are Dharti Pe Bhoja,in the Agri Business ? Simple,it is tax free,and so,is ideal for money laundering. 2ndly,the Dharti Pe Bhoja operate in those businesses,where the supplier is impotent (the farmer),the Buyer is an oaf (the user) and the GOI is absent,helpless and COMPLETELY RELIANT,on the Bania vermin.

    The Foolish Farmer

    The twit small farmer who gets loans from B,is getting the loan from the profits and cheating done by B earned FROM the conning A.The Indian State has abdicated the role of banking to farners and OUTSOURCED it to B.In 73 years the nikamma GOI could not structure a MUDRA scheme for the small farmers – as B lends to A,at high ROI,and in some cases,on land/gold security.

    The farmer love for B is like state sponsored use of ganja.The farners have become addicted as B lends to A to snort ganja.

    The Financing of the Supply Chain of Bania vermin

    When B sells to C to D they sell on credit and recover only the marginal cost.With 7-15 rotations,when the Marginal Cost is recovered and there is a Profit of 100%,then they sell on clean credit ONLY to the Bania vermin.That way,the web is spread wide and far,and the compounding,is exponential

    Killing the Bania vermin

    By killing the Bania vermin,E and G will purchase from the farmers DIRECTLY.Therefore,the NSR to the farmer will OBVIOUSLY INCREASE.Farmer always has the option to sell to B,C and D.More importantly,it will force to organise and form,a co-operative and cartelise.

    The Maths

    The Potato Farmer will get Rs 10/kg as the stages of B,C and D are obviated by E and G.E and G have staff and godowns and so,they do not need B and the State Infrastructure.In any case,state infrastructure is trash.E and G will buy in clusters, all grades of Potatos, and so,the losses incurred by B.C and D of sorting,grading and storing are saved,and the farmer is also NOT Cheated.

    Since E and G have better infrastructure,the farmer purchase is free of tax (as E and G are NOT RELYING on the State) – and so,there is a saving of 8-10% therein,AND the margins of B,AND THE WORKING CAPITAL INTEREST OF B,and the Mandi losses (storage,sorting,handling etc.) – In Phase 1. The savings of E and G,will ensure that the farmer gets a price, HIGHER THAN THE MSP, paid by B to A.

    For the premium grades of Potato, E and G will pay a MUCH HIGHER PRICE to farmer – as that is where B makes the maximum margin – and so,on a basket price of all grades of Potatos,also,A will get a much higher price from E and G.In addition,the bonus and incentives paid by E and G to B for consistent quality,will ALSO go to Farmer A – and that will lead to strategic sourcing,agri hedging,partnership and technology transfer.

    Since the Mandis will NOT be used,or used to a lesser extent – the GOI subsidy and expense on the same,can be OBVIATED.and,in due Course,the Godowns and Infra in the Mandis,can be OUTSOURCED to E and G,or SOLD to E and G,THUS RAISING A ONE TIME OR RECURRING REVENUE,TO THE GOI

    More and more people will start retail cooperatives,as they can purchase from farmers,free of tax,and, at a lower landed cost – and so,the Bania chain of C and D,will face competition,and the Price to User E,will be lowered

    The Logistics supply chain will be improved,as the logistics operations of E amd G,will be at the door step,of the farmer – from the Farm Gate,to the Warehouses of E and G.

    MSP

    In India,perhaps 80% of farmers realisations are of NON-MSP Crops.So the MSP debate is irrelevant.In any case,the farmer has the option to go to the Mandi to sell the MSP crop.

    The Final Solution – Dharti Pe Bhoja

    These Bania Scum – B,C and D – who are bania and brahmin vermin, and for the last 5000 years,have been looting the agri,financial and industrial supply chain.They are off the banking grid – as they lend among each otherand sell on credit – and so,Indian Banks and the State,EARNS NO REVENUE from them.The black money anc capital created by these scum from the agri chain is deployed in money laundering and all the other illegal trades in this pathetic nation.

    The SAME capital of these vermin is COMPOUNDED at several stages in the SUPPLY CHAIN to Yield a return of 1000-1500% per annum – AT THE MINIMUM.

    There is NO CONTROL on their SPECUALTION as the Nikamma Indian State has NO DATA OR CONTROL OVER THEIR STOCKS.Hence,these vermin can CREATE supply shocks, at ANY TIME that they want.

    The Time has come to EXTERMINATE THEM – they are pure SCUM.

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