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Thousands of Indian farmers are committing suicide,
when the harvests failed, Farmers were left with spiraling debts
Los Angeles, Oct. 23, 2010
Gary Singh/S. Singh
A desperate NRI, Harinder Singh from Brampton, Ontario, Canada said, my brother, a farmer who committed suicide few months back to escape debt is unbelievable. In his final note he said, " You never committ suicide is because you always know how swell life gets again after the hell is over."
According to the Ministry of Home Affair’s National Crime Records Bureau, “More than 180,000 farmers committed suicide between 1997 and 2007 and it is estimated that about 17,000 farmers who kill themselves to escape debt and depression every year.
These statistics probably do not surprise you. In Punjab, you may know someone who has committed suicide, or you may have a friend or relative who you have seen go through the grief of loosing a young person to suicide.
In India, costs of GM cotton seeds is 230% that of regular seeds, but the increase in output has been only about 2%, much less than promised. This has been a significant cause of suicides. To suggest that govt compensation to families after a suicide is the cause of suicide is ridiculous. Monsanto, the world’s largest GM seed manufacturer and also manufacturer of pesticides & herbicides, spent $8.8 million for lobbying in 2008. Research has shown that many GM crops like Bt. Cotton in India, requires much more irrigation than regular crops.Former Secretary of Defense Donald Rumsfeld was chairman and chief executive officer of G. D. Searle & Co., which Monsanto purchased in 1985.
In November 2008, Distressed: Prince Charles has set up charity Bhumi Vardaan Foundation to address the plight of suicide farmers in India. Mute with shock and fighting back tears, children huddled beside their mother as friends and neighbours prepared their father's body for cremation on a blazing bonfire built on the cracked, barren fields near their home.
US Govt. paid a quarter of a trillion as farm subsidies between 1995 and 2009. Direct payments have averaged around $ 5 billion every year since 2005. Subsidies under the crop insurance programme have tripled fom $ 2.7 billion in 2005 to $ 7.3 billion in 2009. Small farmers received an average of $ 8,862 per year. Food self-sufficiency is fundamental to national sovereignty. The more the world depends upon US for food, the more will be the political dominance of these two blocks over the entire world.
Rumsfeld personally made at least $12 million USD from the transaction. Dr. Michael A. Friedman was a deputy commissioner of the FDA before he was hired as a senior vice president of Monsanto. There’s a term for this – its called conflict of interest. If GM technology was actually “good”, why all this bribery and corruption???The crop failures, which took place in the agricultural state of Chattisgarh, were prompted by falling water levels. Nearby forest depletion and poorly planned government dam projects contributed to the falling water level. Combined with the vicious money-lending schemes that are prevalent in the region, many farmers felt that death was the only option in the face of insurmountable debt.
The Green Revolution that brought glory to Punjab in the 1960s and 1970s but now there are about 5000 tractors, old and new, are lined up in the fields at Talwandi Sabo tehsil in Bhatinda district of Punjab. Most of the sellers are small farmers who are in huge debt. In 2007, a 50-kg packet of urea cost less than Rs.150; it now sells for Rs.265. The prices of DAP, or diammonium phosphate-50-kg packets, and zinc (10-kg packets) have gone up by almost 200% in the last five years. Seed prices have increased by more than 120%
Diesel prices have gone up from Rs.22 to Rs.38 in the last two years. A farmer has to spend double the amount of what he had to spend three years ago for an acre of land. Paddy, wheat and cotton are cultivated in these areas. Last year, cotton prices plummeted to an all-time low. “Small farmers also lease out land from big farmers. Five years ago, the lease was Rs.5,000 to Rs.6,000 an acre, but these days the rates have shot up to Rs.40,000. Last year's drought brought more misery to the farmers.
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 2890 farmers had committed suicides in the two districts of Bathinda and Sangrur from 2000-2008.
Bholath, Oct 22, 2010:
Sukhpal Singh Khaira, MLA,
I support the demand of the Chief Minister, Punjab for a highest minimum support Price (MSP) for the ensuing wheat crop, which has been marginally increased by Rs. 20 per quintal.
Needless to mention, that the agrarian economy of Punjab is in shambles with a debt of over Rs. 35000 crores on the farmers. Only recently a sample survey conducted by Punjab Agriculture University, Ludhiana concluded that 2890 farmers had committed suicides in the two districts of Bathinda and Sangrur from 2000-2008.
It is pertinent to mention here that the inputs involved in agriculture are becoming costlier by the day, be it diesel, pesticides, fertilizers, labour etc where as the prices for the crops of farmers are not remunerative.
It is common knowledge that at the moment the stock of foodgrain including wheat is much more than the buffer stock and a logic is being conveyed by the economist that since stocks of wheat are ample, therefore, MSP need not be increased. This logic, I feel is pure cheating with the farmers of the country, they are devoid of technology and equipment to sow anything other than the paddy and wheat cycle. Countries like USA, Canada dump their excessive wheat stock in the ocean but yet subsidize and pay their farmers well.
Congress urges the Chief Minister to pay a minimum of Rs. 100 per quintal bonus over and above the MSP fixed for small and marginal farmers demands the congress.
I would also urge the farmers as well as the State Govt. to diversify into other crops such as pulses, vegetables, sugarcane, potatoes, horticulture, floriculture etc for their economic survival.
 Economic condition of Indian farmers deteriorating due to wrong policies of UPA Government: Nitin Gadkari
Fardibad/ Ludhiana, October 24, 2010
Sukhminderpal Singh Grewal
National secretary BJP Kisan Morcha.
BJP National President Nitin Gadkari while inaugurated three days National BJP Kisan Morcha Executive meet,said that it is indeed unfortunate that due to wrong policies of the UPA Government, the economic condition of the farmers across the country is deteriorating with each passing day. High claims of bringing regulation in the field of agriculture but on ground the plight of the farmers is still miserable. He further said that "if the farmer will progress, the country will progress".
The three days National Executive meet and Training session of BJP Kisan Morcha was held at Faridabad, Haryana under the leadership of its National President Om Parkash Dhankar. It was attended by 150 delegates from all over the country. A three member delegation headed by BJP Kisan Morcha From Punjab State National secretary BJP Kisan Morcha Sukhminderpal Singh Grewal attend the meet and Training session.
BJP Kisan Morcha National President Om Prakash Dhankar stressed that Kisan Morcha committees upto Mandal level should be completed at the earliest and each village should have a prabhari. He made it clear that every committee should convene its meeting with the participation of farmers every month in order to take stock of the problems being faced by the farming community and the means to resolve the same. In case government did not pay any attention, Dharnas and Agitations should be held to put pressure.
National secretary BJP Kisan Morcha Sukhminderpal Singh Grewal presented the details of programms being under taken in the states at different levels during the last three months besides addressing the session. He said that the Kisan Morcha all over India province in particular, has been regularly interacting with the farmers and it is the result of such efforts that a large number of Kisans are now coming forward to embrace BJP. He expressed hope that the morcha will get further strengthened in the coming months as the farmers are feeling betrayed by the UPA Government by its anti-farmer policies and the best option available to them now is the BJP, which, according to them have been Kisan friendly and working towards mitigation of their problems.
Number of BJP stalwarts including Shmt. Sushma Swaraj, Ram Lal National Gen.Secretary Org., Arun Jaitley, J.P. Nadda, Manohar Lal, Mahinder Pandey and Sat Pal Malik also addressed the different sessions of this meet during the three days National Executive meet and Training camp.
 Slow Down of Economic Growth due to Militancy
NO PROPOSAL ON LOAN WAIVER FROM CENTRE: BADAL
CHANDIGARH OCTOBER 19:
The Shiromani Akali Dal Chief patron and the Punjab Chief Minister Mr. Parkash Singh Badal said here today that there was no concrete proposal from the centre 'even up to this moment' on waiving the so called Rs. 35000 crore loan against Punjab. He categorically stated that there was no truth in the claim that the centre had made any concrete proposals regarding the loan waiver. “What are we arguing about really?
The Chief Minister disclosed that he had written to the Union Finance Minister Mr. Pranab Mukherjee asking for details on the progress on the report of a committee that had been set up on the recommendations of the Finance Commission to study the debt-GSDP ratio in several states, including Punjab. The Punjab government has neither a copy of the Committee’s report nor any other communication specifying the center’s stand on the issue. So what should we respond to?” he asked, adding that a proposal, if any, would be considered by the SAD-BJP alliance and the cabinet when such a proposal comes from the centre. Till then, what is all this controversy about?”
Mr. Badal said that the issue also involved centre-state fiscal relations. “All the states in the country today are demanding that these relations be based the federal principle.
“The Centre must stop acting like a blood sucking money lender. It is using finances to extract every pound of flesh from the states, virtually pushing them to the brink of death or suicide.” said Mr. Badal, adding that the principle of devolution of funds must be recast in favour of states.
DEBT TRAP
1. Media reports and the Congress statements are alleging the State Govt. is in a debt trap.
2. It is also being put forth that the present government is responsible for this situation.
3. The facts are totally different :-
BACKGROUND OF THE DEBT.
1. The debt on 31-3-10 was Rs 64,924 Cr.
1. Interest being paid by the state is about 6,500 Cr per year.
2. Debt position of other states – (in Rs.)
- Uttar Pradesh 2,21,000 Cr
- Maharashtra 2,05,000 Cr
- West Bengal 1,92,000 Cr
- Andhra Pradesh 1,26,000 Cr
- Gujrat 1,05,000 Cr
- Rajasthan 90,208 Cr
REASONS FOR INCREASE DEBT IN THE STATE
The Anti Punjab Policies of the Central Govt. are responsible for this increased debt in the State.
1. Debt due to Militancy:
Punjab was fighting militancy which was the nation’s war
Before militancy the Punjab State was a revenue surplus State.
Revenue deficit began in 1984-85 during the militancy period.
The debt started accumulating during the militancy period.
By 1995-96 the debt had risen to Rs. 13,630 Cr.
The debt to Gross State Domestic Product (GSDP) ratio in 1995-96 was 35.30 %
The Central Govt. rather than giving economic package/grants began giving loan on interest to the State for fighting militancy.Special Term Loan given with interest - Rs. 5800 CrConstitutionally, politically and administratively it was the duty of the Central Govt. to fight the anti-national militancy.
At that time, State Congress Govt. instead of protesting against the debt, started paying the installments and paid up 2694 Cr.
During the period, when I was the Chief Minister, I succeeded in getting the loan waived off from the then Prime Minister Sh. I.K.Gujral.
Loan Paid during Cong. regime - 2694 Cr
Waived off - 5029 Cr
2. Slow Down of Economic Growth due to Militancy
Due to the fear and threat of militancy there was a flight of industry and trade from the State to the neighboring States.
3. Industrial package to neighbouring states of Himcahal, J&K and Uttaranchal
Due to the industrial package given to these States which provided that industries established in these States till 2010-11 shall be exempt from payment of taxes for 10 years, a lot of existing industry shifted from Punjab to these States.
Also no new industry came to Punjab and that went to these neighboring States which provided these benefits.
Number of Units shifted from Punjab - 274
Investment in these units - 3700 Cr
Fall in collection of Central Excise from 7-01-03 :-
Year Collection
2002-03 2654 Cr.
2003-04 2786 Cr.
2004-05 1896 Cr.
2005-06 819 Cr.
2006-07 867 Cr.
2007-08 656 Cr.
2008-09 729 Cr.
With base of 2003-04 the total loss has been - 8963 Cr
Result, as indicated by above figures –
Flight of industry from the state
Loss of employment in the state
Loss in state revenues
Slowdown in the economic growth of the state
3. Decreasing share of the State Govt. in the allocation of taxes collected by the GoI
Successive Finance Commissions have worked to the disadvantages of the State.
The GoI collects all the revenue from important sources like Income Tax, Central Excise & Customs, and Corporate Tax etc.
Approximately 66-67% of these collections are retained by the GoI & balanced is devolved to the States.
In 1974-75, Punjab got 2.450 % of these devolved taxes.
Now its share has been decreased to 1.389%.
It should be at least 2% if not more.
DEBT POSITION DURING THE PREVIOUS SAD/BJP GOVT.
Just as the militancy period was getting over, the SAD - BJP Govt. came to power in 1997.
The debt to Gross State Domestic Product (GSDP) ratio in 1995-96 (end of militancy) was 35.30%.
Almost throughout the entire tenure of the SAD – BJP govt., the debt to GSDP ratio remained stable at about 35-37%
DEBT POSITION DURING CONGRESS GOVT. 2002-07
Rather the Congress Govt. mismanaged the finances.
The ratio of debt to GSDP in increased tremendously
2001-2002 - 40.82%
2002-03 - 44.81 %
2003-04 - 45.95 %
2004-05 - 46.56 %
2005-06 - 44.95 %
2006-07 - 39.88 %
The ratio came down in 2006-07 because the Special Term Loan Waived off by Sh. I.K.Gujral was adjusted in accounts in 2006-07.
Otherwise the ratio of debt to Gross State Domestic Product (GSDP) would have been 43% during 2006-07.
SAD – BJP GOVT. From 2007
The State Govt. by increase in revenues has been able to bring the debt to Gross State Domestic Product (GSDP) ratio to 32.85% from the peak of 46.56% in the Congress regime.
INCREASE IN REVENUE FROM 2007
1. VAT & CST increase
2006-07 - 5136 Cr
2007-08 - 5871 Cr
2008-09 - 7043 Cr
2009-10 (Target) - 8000 Cr
Inspite of recession increase of 16% per year
2. Excise
Previous Congress govt.
· Collection in 2006-07 : Rs. 1363 Cr
Increase minus (-) 13.2%
Present SAD-BJP Govt
· Collection in 2009-10 : Rs. 2000 Cr
(Avg increase of 13.92%)
DEBIT WAIVER ISSUES
The Finance Commission is a constitutional authority set up every 5 years.
It visits the fiscal condition of all the States and provides its suggestions.
The Thirteenth Finance Commission visited the State of Punjab when I led the delegation from the State.
In the memoranda submitted & in my speech the issue of debt was mentioned and emphasized.
The then Principal Secretary Finance wrote to thirteenth Finance Commission to write off/reschedule the small savings loan.
Also in the meeting with the Planning Commission and the Hon’ble Prime Minister and Finance Minister, the issue of debt has been raised by me.
On the recommendations of the Finance Commission, a committee under the Secy. Expenditure, GoI was set up to :-
“Explore ways to assist the States in getting out of their fiscal stress along with measures to be taken by the States to prevent the recurrence of such a situation in the future.”
This Committee was set up not only for Punjab but included West Bengal and Kerala also.
The Committee met the Punjab officials along with the officials of Kerala and West Bengal on 10th and 20th August where the State officials presented the fiscal situation of the State.
Thereafter, no communication, deliberations or proceedings of the meeting or any advise, suggestions etc has been received by the State Govt. till date from the Central Govt.
I have written to the Union Finance Minister to intimate the latest position as the Committee set up for this purpose was to submit its report by the end of August
Source of loans by the state Govt.[
Ø Central Govt. 3,549 Cr 5.5%
Ø National Small savings 21,877 Cr 33.70 %
Ø Market loans 23,820 Cr 36.69 %
Ø RBI & NABARD 1,786 Cr 2.75 %
Ø State Bank & 2,658 Cr 4.09 %
Commercial Banks
Ø HDFC & HUDCO 483 Cr 0.74 %
Ø Stae Provident Fund 10,119 Cr 15.59 %
Ø Bonds, LIC, Insurance 632 Cr 0.97 %
and Pension and others
Even if the Centre Govt. wants to be magnanimous and waives the loan it can be only waive its loan which is Rs. 3549 Cr.
The National Small Saving Funds is lent to the States at 10.5% whereas GOI is paying 8.5% to the public investors.
The GOI is acting as a money lender and forcing the States to take this loan on their tenures at a higher rate of interest.
SUBSIDIES
In a welfare state it is the duty and priority of the state to work for the economic welfare of needy sections of the society.
Generally the interventions of the state to help the needy sections of the society are termed as populist measures.
World over, different sections of the society are being provided subsidy.
Subsequently - Subsidy to Agriculture
Approximately 70% of the population is dependent on agriculture in Punjab.
The cost of the inputs has increased phenomenally whereas the sale price of the Crops has not at the same rate.
There has been saturation in the agricultural productivity since 1980.
Accordingly the economic condition of the farmers has deteriorated in the state resulting in heavy debt.
99.58% of the small and marginal farmers are living below the poverty line.
The debt of the farmers, which was 5700 cr in 1997, has jumped to 30,394 Cr in 2008.
So it has become imperative to provide subsidies to agricultural and other deprived and needy sections of the society to sustain them.
Moreover it is important and necessary for the National Food security to feed the country.
Agriculture, which already is not a profit making venture, if not subsidized would lead to drastic fall in the agriculture production creating food shortage not only in the state but in the whole country leading to enormous expenditure on import of foodgrains.
This may even lead to lawlessness and anarchy when such a large number of population deserts agriculture and is without work and there are millions without adequate food.
In an article in The Tribune, it was mentioned that at this point, India is home to 50% of starving population of the world.
SUBSIDIES TO AGRICULTURE BY FOREIGN COUNTRIES.
According to data available for the year 1999, following is the subsidy being provided per farming family :-
Japan 26,000 US dollar
USA 21,000 US dollar
European Countries 17,000 US dollar
OECD Countries 11,000 US dollar
Canada 9,000 US dollar
India 66 US dollar
Organization for Economic Cooperation and Development (OECD) Countries are providing 42% of the agricultural production as subsidies.
India is only providing 1.5% of the agricultural production as subsidy.
In the developed countries only 2 to 5% of the population is dependent on agricultural and getting such huge subsidies.
Whereas in India where 69% of the population is dependent on agricultural, the subsidy to agriculture are negligible.
In the light of the above, the controversy on the issue to provide subsidies, especially to agricultural and rural population, is totally misplaced and wrong.
Total Subsidies by Punjab Govt.
The Punjab Govt. - as is the duty and priority of welfare state, is providing subsidies in the following fields:
Ø Power subsidy 3,120 Cr.
Ø Relief for drought of Kharif 2009 300 Cr.
Ø Atta Dal Scheme 350 Cr.
Ø Education, Health, Public Health etc. 1,000 Cr.
Ø Scholarship and stipends 80 Cr.
Ø Old age Pension 400 Cr.
Ø Shagun Scheme 80 Cr.
Ø Welfafe of SCs/STs 19 Cr.
Total 6349 Cr.
The SAD-BJP govt. is committed to the welfare of the needy and distressed section of the society.
The SAD-BJP govt. had contested the 2007 elections and had these subsidies as its agenda.
It is the duty and priority of the govt. to subsidies the sections of society who are unable to survive in the current adverse economical system.
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