Saturday, January 16, 2021

Conflict Between Agriculture and Industry

 

Since more than twenty days the farmers from Panjab, Haryana, Uttar Pradesh, Rajasthan and many other states are agitating in and around Delhi.  One Sikh Baba gave his life in support of the agitation.  More than twenty people died in the biting cold of Delhi.  There is no slowing down of the agitation.  The entire world is talking about this agitation as being the world’s largest protest by the Indian farmers.

The farmers are agitating against the three farm laws the Modi government passed under the pretext of doubling the income of the farmers.  The farmers are not convinced.  They see a bigger and mischievous design by the government to hand over the farm sector into the hands of the Indian largest corporate houses.

The gist of the three laws are as follows:

1.     Elimination of all subsidies and minimum support price for the farmers. Eliminate APMC, Agricultural Produce Market Committee and Mandies (APMC Yards).  Now the farmers can sell their product to private traders and corporate houses.  This also means that any corporate house can procure food grains from the farmers and stock in unlimited quantity in their godowns.  Earlier it was illegal for private people to hoard food grains.

 

The farmers will not get the benefit of the system of minimum support price. Government used to fix minimum support price for several farm product to ensure that the famers do not incur losses. Further farmers will not get subsidy such as fertilizer subsidy and on the input for cultivation.

 

2.     Introduction of contract farming.  This means traders and corporate houses can make an agreement with farmers to produce food grains and sell to the corporation.  In case of dispute the farmers cannot have recourse to the court but some local government official can intervene to solve the dispute.

 

3.     These corporations can stock any amount of agricultural produce.  This could result in artificial scarcity and food prices to rise

Background:  Soon after the independence India had a massive food shortage.  The Indian government was forced to import food grains.

Indian farmers were cultivating land under tenancy system where the cultivators were not the owners of the land.  The lands were owned by the zamidars who collected tax from the farmers either in cash or in food grains.  The land owners were not bothered if the drought had made it impossible for the farmers to cultivate the land.  If the farmer failed to pay corvee then the landlord would take the land from the farmer and give to another, more prosperous farmer who could pay taxes regularly.  This let to a lot of farmers becoming landless and were forced to work with other farmers for wages or migrate to the cities to look for employment. 

This system was not able to increase the productivity of land resulting in food shortage.  The government announced land reforms under which the land was supposed to be given to the tillers.  Most of the government officials who were responsible to implement land reform came from the landlord class and they favoured the landlords and little came out by the way of cultivators owning their land.  Then there was a law of land ceiling by virtue of which the land owners could not own more than a prescribed limited acres of land.  This too was bypassed by landlords by registering land on fictitious names.

Indian agriculture moved from the feudal tenancy form to capitalist form of cultivation where the cultivators became owners of their land and they cultivated by employing wage labourers.

This transformation of agriculture into capitalist agriculture did not solve the problem of low level of food production and the farmers continued to remain very poor and exploited.

To over come the precarious situation of farmers and low level of food production the government of India undertook three programmes: 1. Building dams to improve irrigation, 2. Green revolution by modernizing agricultural production and introducing intensive farming in selected areas in the country, such as Panjab, Haryana, Mandya, Kuttanad, Tanjaoor. 3. Farmers’ support programmes such as agricultural cooperative societies, minimum support price and Agricultural Market Committees (APMC).

APMC, is a marketing board established and operated by the state government in order to eliminate the exploitation of the farmers by intermediaries to whom the farmers could sell their produce at minimum support price. This system was introduced to regulate the sale of agricultural products.  APMC was to ensure remunerative prices for the farmers for their produce and timely payment. 

In spite of these measures the farmers were always in distress.  The farmers have committed suicides in large number.

1.     There are relatively high proportion of people involved in agriculture.  60% of the Indian population and 45% of the total labour force is involved in agriculture.  There are high percentage of farmers who are subsistence farmers who barely produce for their livelihood. The middle farmers and the rich farmers employ wage labour, tractors, harvesters and high yielding varieties of seeds and fertilizer and they produce for the market.

 

2.     The fact of the matter is agriculture gives very low return. The farmers do not get the rent on their land as it is not included in the cost of production.  The farmers’ average income per month is around Rs. Six thousand five hundred only. The law of the country does not allow the owners of the land to change the land use for nonagricultural purpose. But when the government decides it will throw out the farmers and snatch their land and give to the industrialist to build their factories.

 

The most significant issue which relates to our present day farmers agitation is against abolishing of APMC and Minumum Support Price.

The preset day farmers’ agitation is an indication that the farming and industry are in conflict with each other.  It is an attempt on the part of the corporates and industrialists to gain control on the agriculture and subordinate it to industrial capital.

The gist of the development that the present-day NDA government wishes to bring into effect is to allow the corporate capitalist to gain control of the agriculture. 

The system of Mandies and the minimum support price is government’s responsibility to intervene in the economy of agriculture to prevent it from going below the level of break even.

Conflict between Industry and agriculture:

The human civilization started with agriculture.  All the non-farm products were produced by the craftsmen who were rooted in agriculture.   Industry came up out of the womb of agriculture

In the feudal society the only economic activity was agriculture. It was under the control of kings and feudal lords as the peasants did not own the land they were cultivating.  The entire wealth of the society was owned by the kings.  People produces only for consumption and for paying to the kings, warlords and feudal lords.  In the womb of agriculture, there existed craftsmen, carpenters, blacksmiths, weavers and oil press mills.

As the productive forces developed in agriculture and with the craftsmen, they started producing surplus.  They began to exchange their product. They used to take their surplus product to the religious pilgrim centers to exchange or sell.  Gradually, these places became permanent local markets.  Gradually the craftsmen who did not need to remain in the rural areas in the midst of agrarian society to product their good shifted to the centres of market places and began to produce and sell in the markets. Gradually these market places and towns became centres of production of non-agricultural goods.  After the industrial revolution the history witnessed emergence of large industries.

Gradually the owners of these industries required large plots of land to established their factories.  They began to encroach on the land of the farmers. The history saw the eviction of peasants from their land to make place for industrial development.

Up to this day we are seeing the process of eviction of farmers, Dalits and Adivasis being driven out from their land for the same of industries, mega projects and urbanization --  the process of extermination of farmers by the rising capitalism.  They were driven out of their land to make place for the emerging industrial capital.  We can truly say that the capitalism was built on the graves of the peasants.

“In the history of primary accumulation, we must regard as epoch-making all revolutions that acted as stepping stones for the capitalist class in course of formation.  Above all, this applies to those moments when the great masses of human beings were suddenly and forcibly torned away from the means of subsistence, and hurled into the labour market as masterless proletarians. The expropriation of the agricultural producers, the peasants, their severance from the soil, was the basis of the whole process.” K. Marx, Primitive Accumulation, Das Capital,

The ultra-Neo-liberal programme of the NDA government:

In the name of doubling the income of the farmer the NDA government is making a way for the Corporate companies like Ambani and Adani to enter into farm business.  There is a report that Adani is buying thousands of acres of land in Haryana and building ware houses to stock food grains.

Once the corporate companies enter into agricultural production and procuring food grains from the farmers, we might anticipate unregulated food grain market.  These industrialist will be free to sell their stock any where in the world where they get maximum prices.

The programmes of agricultural reform adopted since independence have failed to bring about "the required changes in the agrarian stricture.

One report further brings out the truth that,

“In no sphere of public activity in our country since independence has the hiatus (gap) between the precept and practice, between policy-pronouncements and actual execution, been as great as in the domain of agriculture.”  P.D. Ojha

 

I would lie to quote an event that occurred in the year 1775

“In the years between 1757 and 1766 the East India Company received 6,000,000 Pounds from the native of India as gifts.  In the year 1769 and 1770, the English brought about a famine by buying up all the rice and by refusing to sell it again except at fabulous prices.

 

In the year 1866, the one province of Orissa, more than a million Hindus perished of hunger.  Nevertheless, an attempt was made to replenish the Indian State Treasury out of the price at which necessaries of life were sold to the starving people.

This is also very true about Bangal famine in 1942.  Churchil did not accept the fact of famine as Mr. Gnadhi did not die of famine.” 

 

The kind of famine we have seen in the history is a permanent feature of our rural society where huge number of people are living below the poverty line.

The first most important change we are witnessing is that the state has abdicated itself from its role in the market and in the economy as a whole.  It had apparently shown being concerned only about governance.  In reality it turned out to be busy with internal and external “security”.  It meant being busy with the military and security forces to defend big business and multinational capital.  We have seen the use of force to carry forward the programme of industrialization and foreign investment.

To sum up: “The government’s understanding of the farmers’ knowledge in not only flawed but also insulting”.

The major thrust of the protest suggests the government’s steps are not in farmers’ favour but in the favour of big business.  Farmers understand the logic of the market driven by private interests.” (Editor, EPW Dec 5, 2020)

 

 

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