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.

Pimps in Parliament

It was master stroke from Mukesh Ambani on July 12, 2009 when Mr. Murli Deora said, “the gas does not belong to Ambani brothers but the Govt.”. Ever since Mukesh Ambani lost the case in Mumbai High Court against his brother Anil Ambani. We knew something more interesting and exciting is lying in coffers. Mukesh Ambani does not like to fight his battle by himself and not even through the media. He always has strong coterie to fight on his behalf unlike his younger brother, Anil Ambani, who takes on the mission by himself.

The July 12, 2009 statement from the Minister of Petroleum and Natural Gas was one such powerful statement from one of the most lucrative Ministries of the Govt. that was set to jolt the nation and we knew the WAR is on. Something more spicy and exciting is on the cards. So thereby we have a discussion on the two brothers in Parliament. The names of two companies RIL (Reliance Industries Limited) and RNRL (Reliance Natural Resources Limited) are just incidental in the whole brouhaha.

The news of Ambani’s have always been interesting and have evinced the interests of everybody in India from Prime Minister to the beggar since Dhirubhai Ambani days. The name and the power it holds that it can make or break the Govt. of India (it’s not an over-rated statement). The Govt. has been extra cautious while dealings with things related to Ambani name. Even more than its alliance partners in Govt. Now the Govt. and the opposition is in fix on which side it should take the stand. Both sides are Ambani, one younger and the elder. It was clear from the beginning some of the foul plays that have been fundamental foundation of the Reliance empire will spill out on the streets. Anil Ambani accused his brother of showing more than actual costs.

Before proceeding further, let me clarify on the whole matter and what KG6 is? The Govt. of India has created some blocks in India (land and sea), where it is thought, said (of course after researching) that there lies a possibility or opportunity of finding oil in those areas. Lying hundreds of feet beneath the surface. The Govt. invites the bid for exploration from different companies. The allotment of the block under contention is given to the Company which offers the maximum amount of profits to the Govt. from the production of oil extracted under such block. RIL won the bid wherein they were ready to offer 85% of its profits to the Govt. after recovery of its investment blocks. RIL is on record the first company in the world to have found oil in a shortest duration of time and also bring it up for production.

Over the oil field lies a huge reserve of floating natural gas which can be used to run Industrial plants and also to generate electricity. Any gas that is found on the oil blocks is like a freebie to the Exploration Company, as the investments incurred are all booked for oil exploration. RIL is also the cheapest producer of natural gas in the world.

At the time of separation of the two brothers, the more media savvy and upcoming businesses came under younger brother’s fold and the business of Power (electricity). While the elder brother decided to hold on to the traditional business of the Group, i.e. textile and oil refining. But the caveat was the elder brother will provide gas to the younger one for running the power production plants that the younger one was planning to build. The price decided was roughly 55% of the market price of the Gas.

Whether it has been written on the agreement? How the price has been arrived at? This is the whole point of contention.

What is the fight between/amongst? As a brother, I know and feel I can do anything for my brother. Now as we are grown up, we have more reasons to support and help each other and take lesser and lesser number of things to our parents to discuss for. But Ambani brothers @ 50, I don’t know what sense they have. What they will be able to teach to their kids?

This is not just a gas issue.
Is it for money?
Is it for power?
Is it being sadistic or schadenfreude?
Is it for market capital?

Whatever may be the issue between the brothers?

After Murli’s remarks on July 12, 2009, it was time for Anil Ambani to come full throttle on 27th July 2009 at the AGM of RNRL. He knew his shareholders are going to push for some dangerous and serious questions to which he, himself is searching for an answer. So he hit back at all the forces that have put the existence of his Company (RNRL) and pounds of his fictitious wealth in question. RIL, Ministry of Petroleum were taken on hands. It was a very sad day for the Indian democracy. The way he lashed at the Ministry and its in-charge who is acting pimp of Mukesh Ambani is a mockery of the whole system and in turn, the accusation does not leave even the prestigious position like the Prime Minister of India because of the way, the Govt. and the Ministry was used. Dr. Manmohan Singh should have filed an anti-trust suit against Mr. Anil Ambani. You may not be getting your rights. But that is no way to react and say things about the Govt. If you have grievance, a place and system called Courts has been put in place to voice your opinion and to fight for your rights.

But as the saying, “the World belongs to the Rich and Powerful. They are not governed by laws but by Will.”

So in comes the pimp of Anil Ambani in the form of Mulayam Singh Yadav and his party, Samajwadi Party. I don’t understand what wadi/wada they have done to the samaj and what they wish to undertake? Mulayam Singh raises Anil Ambani’s stand in the Parliament. Amar Singh has undergone a major surgery. When he is ready, it will become more interesting and some more shocking words will be exchanged.

Murli Deora clarifies on the statement not as Mulayam Singh had raised but as RIL would like to prove its stand in the whole controversy. If you carefully look through the drafting of the reply, it clearly indicates the point.

We all know Parliamentarians lobby for the big industrial houses and the stand points of industry lobbies who fund Parliamentarians generously for the elections. But to bring the whole issue and represent yourself as one of the sides of the controversy for a corporate giant and that too in a Parliament, is a clearly big blow to the whole idea called DEMOCRACY.

They can and have to act as PIMPS but should not at all the times. At least they can act diplomatic in their speeches and comments in context to Parliamentary proceedings and procedures.

I don’t know whether I should be saying this or not. But the battle between the two brothers is not going to end here. Even if elder supplies gas or not and junior gets gas or not. The virus will spread to other businesses. It is the recipe for the disaster. Ten years down the line, Reliance may not be able to carry the aura for which it stands today.

Don’t be surprised for any kind of twists and turns in the story. It’s not just a big corporate battle or a family dispute amongst two powerful wealthy brothers. It’s certainly more than that???????

Nandan Nilekani's experience in Parliament - Hilarious :-)

Got a forward....... which is worthy of putting up here

From an INFOSCION to a POLITICION - Nandan's Chronicles - 2

Continuing my tryst with capturing the life and times of Nandan Nilekani in his new avatar as a Cabinet Minister, here is what he had penned after his first day in the Parliament. The last entry stopped when the House was just about to begin. Let’s see what happened thereafter….
The House was in pin drop silence. I was brimming with anticipation and excitement!!!! Manmohan had informed me that my introduction was one of the important points of the agenda. I hoped that I will be able to make my speech properly. After so many interviews and conferences, I was nervous today!!!! After the Speaker indicated that the proceedings of the House could begin, Manmohan formally introduced me to the entire House. He mentioned that as the head of the Unique Identification Authority of India, I was responsible to ensure that each and every Indian had a digital smart card as a proof of his existence.

Manmohan spoke about why I was selected and also some references to the various projects executed by me in Infosys were mentioned. The House listened with rapt attention. I was asked to say a few words and I did exactly the same!!! I thanked the Government of India for having given me this opportunity and I assured the House that I would strive to successfully deliver this project. The Speaker then formally inducted me into the House and before the proceedings could move any forward, there was a small commotion on the other side of the hall.

It was Minister of Textiles who had a comment to make before the next point on the agenda. He made a request that I should be attired in a more austere way instead of a flashy suit. It did not go well with the image of a minister who should live to serve the common man and should be less ostentatious in his habits. I stood up to reply. I offered my apologies to the Honourable Minister and assured that I shall be in a more acceptable dress next time. I felt that he was right. We also used to have corporate dress code in Infosys. So it's here as well!!!!

I sat down and felt somebody nudging me. I turned around and to my surprise; it was the former Indian skipper and one of my favourite batsman Mohd. Azharuddin. I remembered that he had recently won the elections. I smiled at him and mentioned to him that I used to like his game very much, shaking his hand. No Rolex, I noticed. Azhar told me that he would “fix” me an appointment with an Italian designer who had designed his dapper Kurta suit. An Italian designer in Milan doing Kurtas!!!!! I made a note of this and reminded myself to give this example to Friedman for his next book,” The World Markets are flattened”.

Since there was no doubt about the “Fixational” capacities of Azhar, I told him to give me the details and I would consider. The proceedings of the House went on with numerous bills being debated and passed as I sat as a passive audience waiting for my project’s turn to come up. After the lunch break, it was the moment for me!!!!

MY PROJECT'S FIRST REVIEW CAME UP FOR PRESENTATION.
I was at sea. My laptop did not have any reserve power. I went to Manmohan and apprised him of the situation. I was sweating. He calmly replied that this would not be a cause of concern. I was flummoxed!!!! The Speaker asked me to explain to the House on what were my plans for the Unique Identity Project. I replied that I have a plan prepared for 30-60-90-120 days’ milestones and I have presentation to make for which I need a power socket, a projector and a screen. I had no idea what was going to happen after this.

The next couple of minutes were a complete jolt for me. I was completely in a tizzy. Let me just summarize what happened. A Joint Cabinet Secretary Committee was set up to judge the feasibility of my request. The Under Secretaries for the Ministries of Power, IT and Broadcasting will prepare a Viability Report after scrutinizing National Security threats to my request. This was because the power socket comes under Power, laptop comes under IT and projector comes under Broadcasting. I have also been told to reconsider my timelines of 30-60-90 days and start thinking in terms of years. Probably, they are right. I did not have the foresight in this matter.

The summary of the issue is that I need to come up with a more inclusive, democratic, comprehensive long term plan for this project to be executed over the next five years. I have also been given a presentation slot 3 months from now (by which the issues related to the power cord etc will also be resolved). I am filled with mixed reactions. I was planning for a quick resolution; the management wants a strategic solution. I come out of the House and text Murthy.

“You won’t believe it but these guys work just like us. I am on a NATIONAL BENCH for the next three months!!!!!!!!”