Tag Archives: village life

Farm Bill: Err on The Side of Caution

My father is a farmer. He works and lives in western U.P., a relatively prosperous area in terms of groundwater and road connectivity. He is not sufficiently poor. He managed to pay for my college (circa 2007). I spent the first 21 years of my life in the village, often working on the farms. It is a hard life once you have experienced the alternatives.

We are sugar-cane farmers and are well organized. Usually, politicians don’t like to mess up with organized farmers. But a hyper-centralized state can. After all, everyone is living in their own bubbles these days. Some people, powerful or not, always believe that they know what is good for everyone else. This is not true even when they have the noblest of intentions and act in good faith. And this bill was not passed in a good faith.

We wouldn’t know the effect of this bill for a year or two. Strong fluctuations in prices is a routine for farmers, especially near harvesting season (can’t tell why!). But there is something odd about
this bill. Like demonetization, GST, and CAA, the long-term benefits of this Farm Bill are doubtful at best (call me anti-national), but the short-term dangers are real.

Let’s consider the simplest possible scenario. I spend 3 to 4 months on my rice or wheat crop. During these months, I paid school fees, medical bills (not all days are achche din) often by borrowing money from a local money-lender at an interest rate of 15% to 50% per annum (what? That can never happen in our glorious country. I must be lying! After all, the best government is at the helm. Off with an FIR!). As soon as I harvest my crop, the first thing on my mind is to pay back the loan and plan for the next crop. I can’t store for a very long time or delay the payment on the loan even if the loan is from a Sarkari bank. I am not Ambani, Adani, or that Kingfisher guy (I am sure this list is long!).

The local vendor (khalifa) comes to my village and offers me a price which is usually less than the minimum support price given by the govt. He picks up the crop from my house. Saves me the time and hassle of transporting the crop to the Sarkari mandi which is at least 30km away. Selling in Mandi usually means waiting in the mandi for at least one day, and for a couple of months for the money to arrive in the bank. And no, you still don’t get SMS when and if the money arrives in the bank.

If the vendor offers me 10 to 15% less than the Sarkari price, I happily sell it to him. If he offers less, I take the trouble to go to Mandi, usually in a group of 4-5 farmers. Unlike what others have been
telling you, farmers always had the choice to sell their corp to anyone. This bill brings nothing new in this regard! Isn’t it obvious? I’ll sell anyone who offers me MSP. The question has always been at what price? No vendor has ever, ever, offered more money than the MSP!

If all local vendors lower the price for a month or two then only a few farmers would be able to wait and watch till prices go up again. Almost all farmers will go for stress selling. It is worse for farmers who grow perishable crops like tomatoes and papaya. They can hardly wait for a week. It is not a hypothetical situation to malign the reputation of your favorite politician. It happens all the time: just talk to a real farmer in good faith.

Let’s take a leaf from your life and talk about education and health. You must have had some experience with these two sectors. I see them somewhat functional in the cities and towns, much better in the southern part of the country. These sectors have roughly the same social and economic dynamics and roughly the same arguments about public and private ownership.

If your local government school is bad, I bet, most private schools are only slightly better. Aren’t they? There is no incentive for a private school to do much better than the best government school in the locality. They do slightly better and get enough candidates. Not sure what is the situation is with your hospitals. My guess is that private hospitals need to do just slightly better in diagnostics but has to look much better (they have color TV at reception). I read all the fantastic stories about how nicely and humanely they treat their patients! Why would you think farmers will get any different treatment from similar corporates entities?

The government should strive for a decent baseline: MSP for crops, minimum wages, minimum education, and minimum health coverage, even when the private sector is helping and not exploiting the lack of government presence. This is not too much to ask from a government for its people, democratic or otherwise, left or right, sikular or fascist. And every decent society should strive for it.

The MSP is set at 1.5 times the cost of growing the crop. The real market can’t afford to give this much to the farmers hence the MSP was proposed in the first place. If you think that market must be able to pay that much or more then it does not matter if you leave the MSP alone. If you think the market is fair, then it wouldn’t matter if you leave the legal provision for appeal in the court there (it won’t ever be used). Even if you think, these are needless in your somewhat utopian view of markets, my request is to err on the side of caution.

Rule and Person

In the extent to which societies are governed by rule or person, in traditional societies based on agriculture, personal factors count for almost everything. People are able to take finer personal distinctions in their businesses and other day-to-day work. In these societies, personal links can be used (or misused) for practically any purpose; and a certain sense of security is provided by the existence of such links. Now there are whole areas of life in complex industrial societies where such links are in principle irrelevant.
In complex industrial societies, social life is influenced greatly if not mainly by institutions. Here institutions are organized around impersonal rules. The treatment in hospitals, admission to schools, and services from police and courts are a few examples of such arrangements. In these institutions, if someone needs something which one is entitled to, there should not be any need on his part to have any personal links with people in these institutes.

In Indian villages based on agriculture, people are accustomed to getting things done through persons rather than the rule. To say this is not necessarily to pass a moral judgment. When society is small and everyone knows everyone, such an arrangement is both proper and expedient. A lot of problems, related to both corruption and efficiency, can appear without any tangible solution when these links are used in places where norms are defined differently.

Those who live in large cities depend on many public utilities and services. And in principle, they are so organized to serve each citizen irrespective of personal considerations. There are rules of procedure according to which any citizen is entitled to make claim on a certain service. But in practice, nobody seriously believes in rules alone. In cases when rules do not work for him at all or do not work quickly enough, he tries to reach out to someone in the right quarters through relatives or friends, or friends of a relative. Those who have no relatives or friends (connections as they are called) felt left out in cold. But it is just amazing, how just almost everyone in our society is able to activate a connection of some consequence.

It should be obvious to all of us that we are in a period of transition. Though the majority of people still live in small agrarian societies, they are increasingly coming in contact with different sorts of institutions they are not accustomed to, where the personal connection should or ought to count for little. In such a phase of transition, people often suffer the worst of both systems: they can not be sure if personal ‘connections’ will be sufficient, nor they can trust the appropriate system of rules alone.

In cities, especially for young people, the moral universe associated with it is both confusing and intractable. This could cause a sort of psychological stress which is rarely seen in villages. When an old person (not only in rural India) pays a bribe or uses his family connections to get something done, he is not burdened by the morality of his actions. For him, such is the way of life — an ordinary and normal thing to do. He would give you a lecture about the “art of living” if you point out the impropriety on his part. Younger people, and perhaps some among old too, do not always pay bribes or use family/friendly connections for their personal gain at the cost of someone else without a sense of moral ambivalence and indignation. The “queue” is one such place where such behavior can be easily observed: when someone gets a cut from a friend or relative, he takes it, often with an embarrassing smile or a show of arrogance, but the same person turns self-righteous and morally indignant when he sees others taking “cut” at his disadvantage.

More than often rules are defined vaguely. It allows those who enforce them to use their personal discretion rather freely if not arbitrarily. Different rules or different interpretations of rules are often applied on a case-to-case basis. And many times rules are bypassed altogether. Many wonder how people in a country where a substantial population is still illiterate get things done in a system with a plethora of rules. In the face of confusion, people get accustomed to bypassing or breaking the rules, especially when a person of some consequence is available at their disposal. Those who are responsible for making rules simpler or less confusing rarely lose sleep over them. Perhaps they believe people are used to such situations and have ways to deal with them.

The problem of corruption or inefficiency can easily grow to alarming proportions in such an environment for it is easy for people in positions of power to manipulate the system for their own personal gain by colluding with others. One can always find someone in any office who has really mastered the art of manipulating rules and finding loopholes in them. Such people are seen with both envy and admiration.

No doubt that a system is bound to be efficient when rules and procedures are followed by most, if not all. The personal favors which we are so used to receiving and granting can not have the same moral right in modern institutions as in the traditional order. Moreover, a typical Indian overvalues his convenience above most things, and following rules always cost convenience. He would not mind doing his part in undermining rules as long as it is convenient to him. A large proportion of our people do not, or perhaps can not, appreciate what rules are for. But there are many among us who probably know what they are and why we need them. It is doubtful that over time as we progress more towards a more complex society, even they will develop a moral commitment towards them?