FARM BILLS – for citizens as consumers

We know what the law says, we know what the PM says and yet we are witnessing the farmers on the roads. Bhakts are calling it freedom for farmers. Farmers are saying we don’t want freedom. Please keep us under the safety of APMC. A lot of other people, don’t have an opinion on it. Freedom to farmer was always available. A farmer was not forced to sell to Govt. He had a choice, he exercised it happily. Whosoever says it’s the freedom of farmers, I would say Farm Bills are actually taking away the options available to farmers. A lot of people living in small towns or cities procure their own wheat from the farmer directly. There was no law, which aided or barred the farmer from selling their produce to consumers.

Every Indian needs to have an opinion on the Farm Bills, because everybody does eat, irrespective of the fact if they are rich or poor. Every human being born has to eat. Particularly for Indians, who eat and subsist on wheat, rice, onion, potato and pulses. Vegetables are also beyond the reach of a lot of poor. The reason nobody shouts or makes noise, if cauliflower is Rs. 80/Kg but all hell breaks loose if onion crosses Rs. 60/Kg.

The most important aspect is, how can every Indian have an opinion on it. To understand the Farm Bills as a consumer or as a human being, who eats food every day, we need to understand the grocery bag of our household. We are getting to the basics, not for farmers but for every Indian, who eats. I am sure our PM has skipped the basics, like always, because he never had to buy grocery for a family.

What does the grocery bag entail? For millennials or people living in big cities, they can easily look at the items to order on www.bigbasket.com.

What does a lower middle class family of 4 to 6 members order every month from their grocery merchant.

10 Kgs Atta (Wheat)

2 Kgs Rice

2 Kgs Pulses (Beans)

2 L Oil

½ Kg Besan

200 gms of Condiments (Spices)

1 Kg Salt

1 Kg Sugar

½ Kg Tea or 100 gms Coffee (Both)

Vegetables as per requirement, easily like half a kg for every day. 

You can keep adding the discretionary items to your list which are readily available in our kitchen for pasta, pizza, baking, cross cultural cuisines. But this remains the basic of the largest number of households in India. For the people, who can read or understand, this is what your house help needs in a month at his/her home or perhaps they may replace few kgs of wheat with rice as rice (not basmati) is cheaper than wheat on pocket. The basic essentials don’t add up more than Rs. 1000 bucks. Along with vegetables of season, basic easily reaches Rs. 2000.

Wheat is the only essential commodity, which is bought in bulk and also the most expensive on the item (in whole terms). In coastal India or for poor Indians, rice is bought like wheat, wheat like rice.

Ask any daily migrant labourer, what he cooks for food at night for dinner and next day for which he buys daily from his daily needs merchant after hard day’s work.

Rs. 10 on oil

Rs. 10 on pulses/vegetables (ideally potatoes)

Rs. 10 on onion

Rs. 10 on Atta/Rice

Rs. 10 on Condiments (Spices) or may be not

Salt is always available with them. Ideally the budget is Rs. 30 for every day.

Here on the labourer’s shopping list, we need to consider the quantity of every item purchased in every ten bucks. 

We all know the brouhaha on onions whenever the price escalates and the Govt. pitches in to control prices or imports onions to ensure the prices do not escalate beyond the reach of common Indian (poor). Cold storage warehouses are largely engaged in storage of potatoes to ensure round the year availability.

Imagine the price of wheat (rice) rises by 50%, what would be the impact on the budget of grocery basket. What if there is shortage of wheat in the market? India has always been surplus on wheat and rice ever since Green Revolution. Except for one time, when the Govt. of India experimented with free market economies for wheat and rice in 2004 after amending the laws in 2003, the resultant of which, there was wheat shortage in India, Govt. of India had to import 80 Lakh Tonnes of wheat at twice the price.

Currently we have flourishing Atta Chakkis in every neighbourhood, who ground the wheat for us, which is 30% plus the MSP. They are able to sell at 30% because the warehouse and bulk of packaging and logistics cost is borne by the Govt. of India (read FCI). Branded wheat price goes up by 60% for better packaging, logistics and concentrated procurement and storage to some extent. Here the Company is taking all the costs on their heads, except for bulk packing to some extent. Govt. of India should be looking at gradually passing on the costs of packaging and logistics on to the consumers instead of loading it onto tax paying citizens.

Take the case of pulses, the prices of which fluctuates due to its trading on Commodities Exchange but largely it remains range bound. Right now before the harvest, there is slight uncertainty of crop output plus replenishment of stored crops, hence prices become jittery during that phase. Although, when there is shortage sensed, the prices go up and the Govt. is pressured to control the prices of one or two types of dal, so the essential remains affordable for the poor.

The quantity or the budget, which goes into wheat/rice is substantial for every household in India. Freedom of wheat and rice is not only detrimental to farmers but also the consumers, which unfortunately in our case, the number is 135+ Crores. I am sure, our PM like always would not have thought how the new Farm Bill impact the poor people who eat. Just in case, PM does not know or remember the number of poor in the country, I hope he saw the images of poor walking back to their villages due to lockdown, which was announced with 4 hours notice.

The larger the quantity required, the cheaper it should be, for Govt. to look at inflation and more money is available for people to spend on discretionary (tax paying) items, the farmers, they are only looking for MSP not MRP of their produce; and for consumers, given the population size of India and record number of poor population in India.

Our PM is a man possessed, who is obsessed to make a better India for every Indian. PM has always reiterated to doubling the income of the farmer. His wild conjecture remains, the bills aim to double the income of farmer. Free market economies for farmers. Though free market economics is a paradox in the new India, which is still under construction by our PM. We need to look at the policies of the Govt. for industry for different sectors. Industry is burdened with plethora of laws, with notifications which change every week. 

Govt. of India has banned so many products, the musical chair of ban/not ban is a continuous process throughout the year. For agricultural purposes, take the case of onions, how many Govt. lifted the ban to export and how many times it was imposed every year, couple it with import ban and open imports. The duty structure of every commodity changes with every season (especially for export purposes). The capping of prices of commodities and products is again a drum beat for PM to play, whenever he is bored with politics in India. Industry is also asking, not too loudly, give us a sense, of what you wish to achieve. Industry lobby does not mind the over arching laws, but now they are requesting to Govt., at least stick to it, don’t change it, let me adapt to this vileness, you are so bent on imposing on me.

Govt. is aiming to bring the farmers (especially the poor and the uneducated) to be part of this musical chairs competition or drum beats system. Farmers are requesting, implement Swaminathan commission, which says, Cost of Production plus 50% should be payable to farmer. Cost of Production moves with the trend of inflation. Here, if the Govt. is determined to double the farmers income, it means the price of human consumption will go up. Or otherwise, Govt. is asking farmers to move away from two cropping pattern, grow something else in the intermediate period of 2 months or perhaps move at least one crop away from wheat or paddy, which again can put supply pressures for food security, to jack up the price of human consumption. Majority of farmers are not depending on wheat – rice cropping pattern. 90% of the wheat production comes from 6 States – UP, MP, Punjab, Haryana, Rajasthan and Bihar (in that order). Late Mr. Jaitley had announced in 2016 Budget that the Govt. has complied with the recommendations of Swaminathan Commission Report; by tinkering with the formula of Cost of Production. 

Doubling of farmers with a law is a myth, innovated by the PM behind his teleprompter. Doubling of farmers income cannot be achieved by corporatization of farms. It is a collective effort of various Govt. agencies by working hand to hand with a number of farmer associations and organizations and large corporates. Like ITC is working with a lot of farmers under its e-chaupal initiative but only for their sustenance and not for prosperity of the farmer. ITC efforts are definitely laudable.

Now, we only have to look at the manner in which Farm Bills were passed in the Parliament. I don’t doubt the intent of the Modi Govt. The Govt. is always doing for the best of the people. But unfortunately the results of our Govt. prove that only good intentions are not sufficient to make it success.

I am again saying, it is not about the farmers. It is about the consumers (not citizens). Consumers indicate fair price, no loss to any concerned party. Citizen can mean, it’s a welfare scheme from the Govt. (where Govt. certainly is losing money like PDS). It is only about the consumers. Our Govt’s approach is a joke, the bill (law) which touches the food bill of every person was justified by less than 280 characters tweets of our Modi, he delivered total of 5 tweets.

The Constitution of India, has laid the procedure for electing MPs, wherein they are to voice concerns of their Constituents in the Parliament. Good or bad, right or wrong, logical or illogical, all are welcome and the Govt. (irrespective of party) tries and makes an effort to explain and justify. Needless to say, every Opposition is always unsatisfied but the discussion allows the Govt. to make it better. 

Our Govt. knows they will remain unchallenged in Lok Sabha due to majority of their party but Rajya Sabha is always a battle, which seems like war to Modi Govt. after Lok Sabha. Farm Bills protesting and passage will remain biggest blot on Indian Parliament’s history. Opposition members protesting in the well of the House and the tearing up the Rule book of Rajya Sabha in front of the Chair. Doesn’t matter, who is sitting, which party he belongs to, which post he holds, the Chair is the Chair, it has to be respected irrespective. 

Needless to say, we need to stand with the Chair in suspension of 8 Opposition members, who were literally on the verge of violence while protesting in Parliament. Yet the Chair for its designation, should have allowed voting after suspension of 8 MPs. But the Chair in tearing hurry passed the Bills by voice vote without listening or looking at the voices or the show of hands. The seconds he took before announcing the Bills as passed to vote. As if the Chair is SBI’s officer, who is getting late for lunch. 

Farm Bills which affects every citizen of India. Farm Bills which affect the livelihoods of half the population of India, more than 70 Crs people (farmers and their families) did not warrant a separate Parliament session to show and explain the vision of our PM and great future of the farmers. Modi Govt. is working on reforms for farmers since 2014. Every scheme, even if flawed has targeted at improvement of farming and farmers in India. Be it Digital India.  

It’s just that the Govt. of India could have taken time to explain and although Opposition would have taken a hell lot time to understand. We can agree, pandemic does not warrant such lengthy discussion. But pandemic should not be an excuse which can hurt food consumption of every Indian. Engaging in dialogue with farmer unions/societies was the most important part of the legislation but we didn’t know if that is even so. 

The hurry with which PM wishes to implement vision is always the reason, why we have doomed policies in India. Will Indians be paying more for wheat and rice in future? If there is no shortage, our food bill, the heaviest items will also be the most costliest (not because of weight) and RBI would definitely be mentioning the Inflation targeting due to wheat and rice in FY 23 if not in FY22. If there is food shortage in India like 2004, the Govt. of India will end up spending a lot more.

The Govt. should be generous in spending on health, education and defence. Our Govt. has no toehold on the most important segments. Rather, clean air, clean water and food are the most important essentials for an average Indian, for which every Indian will be deprived with the Farm Bills. Naysayers may not agree but air and water issue can be sorted with Turbine Theory of our PM.

It is high time, every Indian should have an opinion on Farm Bill rather than repeating the PMs tweets, which are absent from truth (which are even further away from reality). The food is necessity of every human being, irrespective of class, religion or political affinity.

Can or should Congress compete with BJP?

BJP double standards are exposed when the Parliament is in session. The blame is pinned entirely on the 44 unruly members (Congress) of the family (Parliament) as they are not allowing the vision and the mission of the PM to function due to disruption at Parliament. Indeed PM Modi has one of the optimistic, growth oriented, vibrant and garrulous approach and vision for the nation and its people. But that does not mean, PM Modi has to become PM Manmohan Singh (not for economics but for keeping his mouth shut) when there are certain contentious that the opposition wants the answer from the Head of the Govt.

Last year, when BJP won 282 seats, it was jubilant for India as a nation. After 25 years of coalition politics, we had elected a party with majority and everybody thought the impediment to growth had been the various alliance partners and now there is a clear path to growth and productivity. Yet the Congress with its worst performance of 44 seats is giving its best performance (to their standards). Or I guess we are living in a nation and at a time, where the minority wields more power and strength than the majority.

Even though some of those have been not so contentious issues to stall Parliament, like last time, there was Lalitgate (Sushma Swaraj), corruption issue of Vasundhra Raje and Babri lynching case, the PM has to respond to the nation but his attitude disappointed me. I just expect better from Mr Modi. Still the opposition did its best at what it is best, stalling the Parliament. I agreed with certain reasons of the Congress, they also have to answer the little electorate left with them or their party members.

But this time, it was not just an olive branch that the PM extended to Congress. He really followed on the high pitch tagline (I do remember from his numerous tags and captions), sabka saath, sabka vikas (Let’s work together for Progress of All). He invited the President of the Congress, Mrs. Sonia Gandhi (where would she be without that surname, ever wonder) and Dr. Manmohan Singh over tea before the beginning of the Winter Session and he must have explained and communicated his predicaments in the way or manner Prime Minister’s do.

But then came the National Herald case or what not and what not, OK, the opposition party has been eliminated from the whole process of governance, that’s why they have the right to disrupt Parliament but not allowing it to function, it’s arsony. Bringing the personal issue of Italian Miss and her RaGa (fancy name devised after NaMo, but no effect) is actually stalling the nation to gun point.

Let’s try to look at the BJP’s performance as the opposition party, when UPA was in power. Sitting time lost to disruptions was 38% in the first 8 sessions of UPA. During UPA-II, BJP created a record at disruption, just like created a record at amount in scams, the disruption element was 61% and 66% in the Upper House, which is uphill task for BJP to crack. GST Bill was introduced by Pranab Mukherjee (then Finance Minister now The President) but to no avail due to disruptions by BJP then.

It is the politics of confrontation by BJP and Congress against each other which is harmful for the nation in the long run. Both have Parliament obligation to ask questions and create ruckus in Parliament but not allowing it to function is not in the right flavor of the secular democratic, we claim ourselves to be.

Just like Congress has its reasons and stupidity for parliament disruption, BJP able speaker summed it up pretty succinctly, Arun Jaitley said “If parliamentary accountability is subverted and a debate is intended to be used merely to put a lid on parliamentary accountability, it is then a legitimate tactic for the Opposition to expose the government through parliamentary instruments available at its command.”

Come what may, Congress was right or wrong for whatever reasons, they should have allowed the Parliament to discuss the GST (Goods and Services Tax) Bill, it is the Bill which will unlock the key to the consistent growth pattern and single model of functioning across the 32 States that India can achieve as a nation. Actually the President of the Congress should be tried for treason for stalling the growth of the nation.

Or are they trying to better the BJP’s record of disruption, which is a bad parameter of comparison and should be condemned at the highest pitch. Whatever their political compulsions or situations be, if they can sit and dine at each other’s children’s weddings, I guess they can definitely find a way to function Parliament.

BJP has asserted moral right to pin the blame on Congress but they took pride in disrupting Parliament the entire time. There were issues that were important to people and there are issues which are important to the political parties.

And then there are some issues which are important to the nation, so taking a leaf from its history Congress could have allowed at least the GST Bill to be cleared and kept the moral vicissitude, or rights, duties or obligations to other issues in the Parliament. Nothing is credited to the BJP for the disruptions at the time when they were in opposition. Does Congress think that whenever GST Bill is legislated, it will be to its credit? After the long baggage and slow process of bringing all the States was done by Congress. Yet I doubt.

Congress will break BJP’s record of disruption. Let’s Pray and Hope, it doesn’t. It is neither good for our charismatic PM or for the nation. There are other parameters from which Congress can learn and imitate from BJP.

Credit Card: A monster or a Service

Day before yesterday I received this message from one of the leading foreign bank majors present in India. I had used their card for more than a year. In the month of May, some scrupulous and duping amount of Rs. 1200 was charged extra to my account, which I declined to pay. Before proceeding further, read their message below:

“Please pay at least the minimum amount due on ABC Card to avoid defaults. A poor CIBIL score can deny you credit cards and loans in future. Ignore if paid.”

A poor CIBIL score. Does anyone understand what the hell is that? CIBIL stands for Credit Information Bureau (India) Limited. I belong to the investing and financing community, so I know what the hell is CIBIL. If your name features in CIBIL, you cannot take any loan from any bank, whatsoever. Although some NBFC may take upon the high risk of offering you a loan that too at a high interest.

Fearing CIBIL should I pay the amount or not?
First look at why the amount has been charged?

Firstly the amount was charged for late payment of my Bill, which I always pay on time or a day or two prior to that. The due date of the ABC Card is 23rd of every month and I make it a point to drop the cheque on 22nd or 23rd of every month for the amount due. Generally I make the payment in excess of my Credit Card amount, rounding it off to the nearest hundred.

Why do they put all such charges on your account without any fault of yours’?

Frankly speaking they have to, they don’t have any choice. It is like their bread and butter. It is the most essential part of their business model. The revenue part. Credit card companies are only spending there money on their customers. You can imagine the huge costs, the credit benefit, courier charges of bills and others, cheque processing, 24x7 call centre, tie-ups for promotions and others. It’s a costly affair and you don’t earn anything against it. The only way you can earn is when your customer defaults and they charge huge late payment charges with phenomenally high interest rates (normally 3% on monthly basis – annualized 36%).

In the month of April, I had dropped in the Cheque for the amount due on time. I was travelling so they requested me to arrange for the minimum amount of Rs. 150 by Cash to avoid late payment charges, as they found it difficult to trace my Cheque. Living with a friend in Mumbai, it was difficult to arrange for a person at my place to catch with up with the Bank person to collect Rs. 150. Knowing it was weekend and my flat-mate was also supposed to be travelling that day. But fortunately or unfortunately, his scheduled trip was delayed by a day. But then he was away arranging his tickets. Luckily we had one of the best landlord’s to be found in Mumbai, who was living in the same building, who paid the amount on my behalf.

Guess what? Next month, I am charged for the late fee with the interest and a service charge of Rs. 150 for Cash payment. Rs. 150 was the additional amount that I had paid over and above the amount due for the month of May. Look at their generosity; they settle this Rs. 150 towards all the bull-shit charges they have charged me with.

I wrote a mail telling them, I am not liable to pay all that stuff that you have charged me with. They always make a request to pay three days in advance to the due date. For orderly processing of the same by the due date, then why the hell the due date exists? They cannot bring down their due date down on paper due to regulations and the competition from their peers.

At times, this whole of theory and application of CAPITALISM sucks. I know we would have been worse off under Socialism.

I wrote abusing mails to them. I know most of the customers of any bank, store, mobile phone services behave as if they own those multi billion dollar company. But then that is how the dynamics of the market have emerged. I pity their employees, those guys are quite courageous to be working in such profile and an organization where everyday they encounter people who are yelling, screaming and abusing them. I would have definitely walked out from it the very next day. But then we do many things in our life, which we don’t like or don’t enjoy either.

Their modesty and patience level is appalling. They still write to me always in a humble and modest manner. Look at the following last week’s message:

“Dear customer, your ABC Card payment Rs. 240 is overdue. Pls pay immediately to avoid further service/finance charges. Call us on 022-________. Ignore if already paid.”

But they never threaten to cancel my card. Like my mobile phone provider says in absence of payment, we may hold up your services. A credit card company will never say you, Sir I am blocking your card from making any further transactions. Such are the dynamics of the money lending business. They continue to service me like any regular customer. If you banish your customer in money lending business, you may not see him forever. You always need to maintain the relationship with them. You need to lend more to recover your previous defaults. I am not a defaulter here.

I spoke to one of my friends working in the global bank (my credit card bank). He advised me to stay away from it. He said, “don’t worry, due to poor quality of service, they are planning to shut their Indian office and operations.” Its difficult to eliminate India for any MNC for its global operations. The other astonishing fact he quoted was,

The card you are holding belongs to some primitive scheme. Primitive means anything which is more than 12 months old. They have been instructed not to service the old scheme customers. Get them onto the new product then you may be able to get my share of due. This pace of dynamism in Capitalism is quite disturbing.

I just wish one change in their policy, you shut the doors on the customers you are not happy to serve.

At the end of all this, what should be my stand. I may looking for a car loan in few months and a home loan few years from now, what are the options that I have?

I know one thing they are not going to block card. The matter will linger on like that for couple of coming months. They they are going to break in my door and ask for one time settlement, which will be compounding from the base of Rs. 1200 to say Rs. 3000, 4000 or 5000 depends on the time. Coz as I said, it’s the compounding effect.