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Posts Tagged ‘Indian agriculture’

India up for sale to MNCs

The Wall Street Journal type-casting Indians!
A nervous Wall Street Journal type-casting Indians!

The recent historic moratorium on Bt brinjal by Jairam Ramesh, minister of environment and forests, has created a network of citizens’ organisations around the country that have risen spontaneously from the ground, and have prevented the country’s agriculture becoming devoid of its diversity and moving in the direction of control by multinational corporations MNCs. (via India up for sale to MNCs).

Grass roots and spontaneous

A 'divided' India has stuck together for more than 60 years - more than any country in the world.

A 'divided' India has stuck together for more than 60 years - more than any country in the world.

This post makes an excellent point of how Indians ‘divided’ by caste, religion, language, colour made Jairam Ramesh change his mind – and stop Bt Brinjal. And these same ‘divided’, docile, non-violent, supine, Indians, mounted nearly a 100 wars against the British during the 1800-1900 period.

Having met PM Bharagava a lo-o-ong time ago, (my) impressions were exactly opposite of what he is writing in this post now.

An excellent post for many reasons, about the many possibilities that India can wake up to tomorrow – and lies asleep. The one dark cloud, is PMB’s great reliance on the State to take action.

The Great Brown Indian State

PMB – Please! But, puh-leeze, the State will simply take our money, our efforts, our ideas – and finally, our freedom!

It makes little difference, if the colour of the rulers is Brown, Green, Red, Yellow, Black, Blue or White! The Brown Indian State, while better than the White Indian State, is still a bad idea!

It is the Brown Indian State that we must now work on! The nearly 2(0) million Indian who lost their lives fighting the White Indian State did not die to replace the White Indian State with a Brown Indian State.

Emulate Gujarat’s agricultural success – The Economic Times

Talk is cheap ... data talks

Talk is cheap ... data talks

Gujarat is a drought-prone state, with an irrigation cover of just 36% of gross cropped area. Increased water supply from Sardar Sarovar project, higher investments in check-dams and watersheds (as of June 2007, a total of 2, 97,527 check dams, boribunds and Khet Talavadi (farm ponds) had been constructed by the state in cooperation with NGOs and the private sector), and of course, good rainfall for the past few years has helped propel growth. (via Emulate Gujarat’s agricultural success- Policy-Opinion-The Economic Times).

Indian economic model

There is something interesting in the state of Gujarat. Sometime back there was a status report on finances of all state governments in India. The difference between Gujarat and the Rest of India was stark and telling. Very impressive.

While we have Westernized ‘experts’ saying that Indian agriculture is a dead end – and promoting a line of ‘there is no option apart from mega projects’, we have here in Gujarat the real solution to agriculture and water management. The Gujarat solution, which has been India’s way of managing water. Effectively, at a low cost, under the control of the people who use it and need it. Indian agriculture has a bright future – these ‘experts’ notwithstanding.

Which makes me think.

With Chief Minster’s like Yeddyurappa in the South and Narendra Modi fom the West, what BJP needs is two more Chief Ministers. One for the North and one for the East. To break the logjam at the national level. The last two electoral defeats at the national levels has seen BJP in disarray.

But at the state level it is a different story. More power to such Chief Ministers.

G8 refuses to cut export subsidies

July 13, 2009 5 comments

Leaders of five developing countries — India, China, Brazil, Mexico and South Africa — who also met for summit level talks here had separately, called for expediting a global trade agreement that would stimulate the world economy.

But for this to happen, they wanted developed nations to end trade-distorting subsidies and export sops. The G-8 declaration, however, promised only to refrain from taking decisions to increase tariffs above today’s levels.

“We will refrain from raising new barriers to investment or to trade in goods and services, imposing new exports restrictions or implementing World Trade Organisation’s inconsistent measures to stimulate exports.”

Leaders of the world’s eight most rich countries, in the same breath, vowed to keep markets open and free and to reject protectionism of any kind. “In difficult times we must avoid past mistakes of protectionist policies, especially given the strong decline in world trade following the economic crisis,” the declaration said. (via G8 refuses to cut export subsidies).

US of A – the most efficient agricultural system in the world?

Today, an ‘efficient’ and ‘hi-tech’ agricultural farm sector in the US needs more than US$ 7.5 billion (conservative estimates, assuredly) of subsidies to survive. The US-EPA says, “By 1997, a mere 46,000 of the two million farms in this country (America), accounted for 50% of sales of agricultural products (USDA, 1997 Census of Agriculture data)– and gobble up most of this huge subsidy that lowers Third World agricultural prices.

Giant food corporations, killed buying competition with high prices (to farmers), direct buying from farmers (at higher prices), monoclonal seeds that destroy bio-diversity. And the US consumers are not getting the lower food prices that are being promised in India.

Devastation in the Third World

These subsidies lower agricultural prices, devastate agriculture in Third World countries, creating man-made famines. These man-made famines, of course, gives the West a false sense of superiority. The Indian farmer working without subsidies, with low technology, lower productivity has a cost edge over his European an American counterparts.

The ‘backward’ Indian farmer

The Indian farmer working without subsidies, with low technology, lower productivity has a cost edge over his European an American counterparts. With the declining power and use of the dollar, the US is fighting a losing battle against agricultural subsidies. The US depends on less than 50,000 corporate ‘farmers’ for 50% of ts production. These corporate ‘farmers’ will abandon agriculture at the first sign of reduced subsidies.

Over the next 20-30 years, this leaves India (and Russia) to cater to global food shortfalls. The Western industrial model is in its sunset phase. The Indian agricultural model can be the big winner in the next few decades – under the right stewardship.

Indian agriculture has a great future – and don’t you ignore it! On the other hand, industrial over-production, debt-financed over-consumption, American economic model, funded in the past by Bretton Woods /Petro-dollars /Sino-dollars, is about to end.

And that is the reason why the West (America and Europe) will not lower barriers or subsidies.

And then the propaganda overdrive

Of course, then out came the spin-meisters. The PR machines.

“There is an urgent need for decisive action to free humankind from hunger and poverty,” G8 leaders said in a statement issued on the last day of their summit in Italy, at which they were joined by African heads of state. (via G8 announces $15 bn food security package- International Business-News-The Economic Times).

First the protection … then the subsidies … then the distortions … then the aid.

“The sums just aren’t adding up. Is this all really new money or are they fishing some of it out of the recycling bin?” asked spokesman Otive Igbuzor.

Radically rethinking Indian agriculture – Sanjeev Sanyal

July 9, 2009 7 comments

In recent weeks, there have been growing apprehensions that the monsoons of 2009 will fall short of normal. This has again raised fears of rising food prices, collapse in rural incomes and possibly farmer suicides. Many a tear will be shed for rural India. Predictably, there will calls for greater support for the agriculture sector in the form of subsidised fertilisers/pesticides, cheap electricity for pumping ground water and farm loan waivers. We have been doing this now for generations now and our impoverished farmers still commit suicide. Surely, it’s time to rethink this strategy. (via Sanjeev Sanyal: Radically rethinking agriculture).

The Good …

Sanjeev Sanyal’s article does raise some interesting points – and usual points. After a promising start he then loses his way half way through.

He demolishes the idea that “the route to prosperity in rural India lies in accelerating farm production. Agriculture … contributes 16.5 per cent of the economy … great exertion … cannot … (make it) grow much more than 3 per cent per annum on a sustained basis (when the rest of the economy routinely does 7-8 per cent).”

He correctly points out that “India … produces enough food to feed itself but … 20 per cent of output is wasted (a) problem … of distribution and storage, (and with) population growth is now 1.6 per cent per year … we need to grow production by no more than this rate. … we should … slow agricultural growth … if we do not want … greater wastage or a structural price decline …a buffer for drought years … is better management of bumper crops rather than ever more production. India should shift focus from increasing agricultural production to improving its efficiency (with) investment(s) … in storage and distribution.”

His best one is the warning that “farming comes with a large environmental cost … the Green Revolution is anything but “green”. Current farming techniques are severely damaging to the environment through the depletion of ground water, conversion of forest land and over-use of pesticides, fertilisers and other chemicals … sacrificing the long-term viability of the farm sector. It … made sense in the ‘70s to force a level-shift in food-grain production but why should we be still sacrificing the food security of future generations?”

He reminds us that “it makes … sense to strictly conserve ground water and use it only when the monsoons fail. Special attention should be given to water management (as opposed to extraction). Agriculture consumes 80 per cent of the country’s fresh-water in order to produce just 16.5 per cent of GDP … poor use of a scarce resource.”

The Bad …

Do we need this Great American Dream

Do we need this "Great American Dream"

After such good work, he succumbs to the banal – with some usual conclusions. He thinks that,

very large investments in water systems are needed to maintain even the current growth path.

Large investments in water systems are a bad, imported idea. India’s successful water management model is the nearly local 500,000 water bodies – ponds, lakes, anicuts, barrages, bunds, talabs, bawlees, wells. These water bodies stored surface water – and sustained Indian agriculture for the last 2000 years. Post-colonial India’s quest for Nehruvian “temples of modern India” spurred huge and wasteful investment in large hydro-electric dams. Reviving Indian water systems and rivers will take some 10 years and Rs.25,000 crores. About the cost of two large dams.

With around 70 per cent of the population still in the villages, it is absurd to hope that such a small and slow-growing part of the economy can bring salvation to such a large population.

US agricultural subsidies

US agricultural subsidies

Mr.Sanyal, you should consider the following, before you make such a sweeping statement. With the declining power and use of the dollar, the US is fighting a losing battle against agricultural subsidies. The US depends on less than 50,000 corporate ‘farmers’ for 50% of ts production. These corporate ‘farmers’ will abandon agriculture at the first sign of reduced subsidies. Over the next 20-30 years, this leaves India (and Russia) to cater to global food shortfalls. The Western industrial model is in its sunset phase. The Indian agricultural model can be the big winner in the next few decades – under the right stewardship.

And in the meantime, he himself follows up with an observation, “studies by economists like Dipankar Gupta suggest, non-agricultural activity already accounts for around half of rural India’s economy and provides employment to 35-45 per cent of the rural workforce.”

Third, encouraging agricultural growth for exports in not a viable option for India. Export of agricultural products is tantamount to export of water. International trade may make sense for some niche products like tea or for managing natural cycles in food-stocks. However, it cannot be a central strategy for a water-starved country like India. It is especially careless to be thinking about exporting water when climate change may be putting even current supplies at risk.

As pointed out earlier, both water management and agricultural exports is something that is both feasible and sensible thing to do. This is something that India must prepare itself for.

The truly ugly

Meanwhile, policies should be aimed at encouraging the process of moving the rural economy away from agriculture.

Broke ... and Broke

Broke ... and Broke

The Ikshavaku clan, (of Ramchandra in the Ramayana fame), became a ruling family for developing the agricultural strain of sugarcane. Bhagwan Krishna came to be known as Natho, for domesticating wild bulls. Balarama is the 7th avataar of Vishnu – whose ‘weapon’ was the plough – the founder of Indian agricultural practice.

The Indian agriculturist has made a remarkable recovery after the colonial collapse – and he may still surprise you.

The aspirations of rural India have already shifted — the literate children of subsistence farmers want real jobs, not pesticides. Why should we stop them? However, this requires a big shift in policy mindset. For instance, we need to shift from a regime of cheap but irregular power supply (which may work for irrigation) to one that is fully-priced but regular (necessary for the non-farm sector). This is our best bet for making India drought-resistant.

After ceaseless bombardment of advertising, with Indian languages weakening due to massive Government subsidies to English language education, is the movement to urban lifestyle a surprise? Not to me Mr.Sanyal. Though, why you are surprised, Mr.Sanyal is a puzzle to me. We need to invest in rural India. Currently rural credit is way below its contribution to GDP – and the low price realizations for agricultural output makes the case for investments stronger.

Next, we need to revisit general governance in rural India. The traditional structures may have worked for subsistence farming (even this is debatable) but they will not support large investments in industry, construction and services. The government needs to focus on how to deliver policing, enforcement of contracts, property rights and so on.

This is about shifting from a world of farm-loan waivers to one that can support large-scale mobilisation and investment of capital in these areas. The Naxalite movement that affects a fourth of India is not due to the failure of agriculture but the failure of governance. At the same time, note that the cause of property rights and governance is not served by the indiscriminate use of “eminent domain” to acquire large chunks of land for so-called SEZs.

Do we need this American model?

Do we need this American model?

When you refer to ‘traditional structures’, are you talking about ‘general governance’ of the colonial Raj – that post-colonial India continued with? Or are you talking about the pre-Raj structures? The Indian peasant was the first and the only peasant in the world to own his property – till ‘Desert Bloc’ rulers started a 800 year trend of ‘landgrab’. Yes. India does need to re-visit ‘general governance’! We need traditional governance – and not the ‘modern’ colonial baggage, that India has not discarded.

We need to give back the lands that were grabbed from the poor Indian peasant and the poor Indian tribal.

The need is for a framework of governance that allows industry and services to grow organically in response to local conditions.

Finally, there should be a greater effort to provide urban amenities for education, health, shopping and leisure at places that are accessible to the rural hinterland. Together with the shift to non-farm jobs, this provision of amenities will inevitably lead to urbanisation. This is a good thing and should be encouraged. However, urbanisation is not just about migration to the mega-cities of Delhi and Mumbai … mofussil towns need to be revived as social and economic hubs

Indian agriculture has a great future – and don’t you ignore it, Mr.Sanyal. On the other hand, industrial over-production, debt-financed over-consumption, American economic model, funded by petro-dollars /Sino-dollars, is about to end.

India cannot go down that path.

The Arctic’s oil reserves mapped – BBC NEWS

June 1, 2009 6 comments

The map is the culmination of an assessment carried out by the US Geological Survey (USGS). Writing in the journal Science, its authors say the findings are “important to the interests of Arctic countries”. But, they add, they are unlikely to substantially shift the geographic pattern of world oil production. (via BBC NEWS | Science & Environment | The Arctic’s oil reserves mapped).

What may save US yet? Not the usual suspects.

Transportation

US auto is down – but not yet out. It will limp along for few more decades.

Chinas ARJ21 - Advanced Regional Jet for the 21st Century
China’s ARJ21

Boeing will face fresh competition from BRICS – Brazil’s Embraer, Russia’s (Ilyushin)  and the Chinese (passenger jet programme). US electronics is stagnant – and fading power.

Computing Equipment

The US is still the prime force in the computing industry – though not on the manufacturing side. Chinese manufacturing is the dominant force in computer manufacturing.

Energy

US oil industry no longer dominates international markets the way they did in mid-20th century. The US Nuclear industry faces increasing competition from a public sector French and Russian industry – and India is planning to add its ‘frugal engineering’ muscle to this segment.

Higher education may save the day

What will sustain the competitiveness of the US industry – with out the dollar hegemony? The US education system is still significantly productive (measured in terms of patents, Nobel prizes, innovation, output, research papers, etc.). The US higher education system is notoriously hobbled by a weak school education system. How long will that advantage last – without an infusion of foreign talent?

The US entertainment industry remains the biggest in the West – and by many measures in the world also. Partially controlled by the Japanese, it however remains significantly competitive and dominating.

Agriculture is more fragile than estimated …

The seemingly strong position of the US in agriculture is based on two aspects. Massive direct subsidies – of more than 8 billion dollars. And indirect subsidies of possibly another US$ 8 billion. Most of which goes to the 46000 farmers who account for 50% of the US agricultural production.

Communication technology

The communication sector has seen an erosion in US competitiveness. The domination of GSM technology is seemingly solid for another 10-15 years – a technology, in which the US is weak player. The long-term direction for that industry anyways seems like IP-protocol systems. This may well result in commoditization of network equipment and terminal – and the increased importance of content. Low and medium switching technology may see greater commoditization with the eclipse of Cisco by the Chinese switch companies.

Green is still in the red …

Environment engineering provides no major advantage to the US. Solar panels, wind energy equipment, hydrogen technology have all seen greater diffusion of leadership and market share. It may not give greater opportunity to the USA.

Finance and banking

Global financial markets were dominated by the US organizations in the past – but with the global financial crisis and the end to dollar dominance may see reduced clout for US firms. Their position will become broadly similar to current position of Swiss banks – mildly competitive, solid history, fading reputation.

Outlook

With such an outlook over the next 10-25 years, what the US leadership may focus on is Arctic oil. Oil will remain a strategic asset only with high prices (slower production increase and faster demand growth) and if no other energy source appears. Oil finds in the Atlantic and Pacific republics may spoil the party – for instance, Cuban oil.

Much like the respite of the North Sea oil to Britain, Arctic oil may provide a temporary halt to the slide in US economic dominance.

If the US can lay its hands on a significant part of it!

The real pandemic – Sunita Narain

May 23, 2009 2 comments
Indus Valley seal showing domestic animals

Indus Valley seal showing domestic animals

Take swine flu — now renamed. We know it started in La Gloria, a little town in Mexico. We know a young boy suffering from fever in March became the first confirmed victim of the current outbreak, which, even as I write, has reached India. What is not said is this ill-fated town is right next to one of Mexico’s biggest hog factories, owned by the world’s largest pig processor, Smithfield Foods. What is also not said is that people in this town have repeatedly protested against the food giant for water pollution, terrible stench and waste dumping. (via Sunita Narain: The real pandemic).

This will jolt you upright

There were two things about this post which made me sit up.

annual-world-wheat-production

Annual World Wheat Production

One – The real story behind the ‘probable’ pandemic. This is something that most mainstream media writers do not tell. Take official Government press releases, (sometimes) change the language and call it news. Sometimes, they help in the cover up. If this story does not become well-known enough, Mexico and its poor will be blamed for the starting this pandemic – by the West.

Two – the fragile state of US agriculture, specifically, and the West in general.

About 46,000 ‘corporate’ farmers, account for nearly 50% of US farm output – and most of the US$20 billion in subsidy. The US Government prints vast amounts of currency notes or issues US Treasury Bonds, which are lapped up (earlier by the Middle East Oil Potentates, and the Chinese these days). This money is then handed over to these ‘American farmers’.

The US agricultural system

An interesting situation exists in the food sector – especially in the US. Giant food corporations, killed buying competition with high prices (to farmers), direct buying from farmers (at higher prices), monoclonal seeds that destroy bio-diversity. And the US consumers are not getting the lower food prices that are being promised in India.

Industrial crops will create a foodgrain crisis

Industrial crops will create a food-grain crisis

Farmers became dependent on corporate supplies of seeds (at high prices) and corporate purchases by the same corporations (at low prices). Today, an ‘efficient’ and ‘hi-tech’ agricultural farm sector in the US needs more than US$ 20 billion (conservative estimates are US$12 billion) of subsidies to survive.

The US-EPA says, “By 1997, a mere 46,000 of the two million farms in this country (America), accounted for 50% of sales of agricultural products (USDA, 1997 Census of Agriculture data) (bold letters supplied) – and gobble up most of this huge subsidy that lowers Third World agricultural prices. These lower agricultural prices devastate agriculture in Third World countries, creating man-made famines. These man-made famines, of course, gives the West a false sense of superiority.

A study in contrast

The Indian agricultural system, with nil subsidies, working with cost disadvantages, does not have giant buying corporations and monoclonal seed stock, is holding its own against subsidized agricultural systems of the West. And paid hacks of these Western corporations are trying to tell Indian consumers and policy makers that these giant corporations will cut food costs in India.

Economic crisis

Economic crisis

These giant corporations are aiming for entry into India – promising ‘efficiencies’ in buying (which will give consumers a better price), and higher prices for farmers (which will increase farm incomes). Of course, this will last as long as there is competition.

Once, these giant corporations, fueled by huge amounts of debt and equity, drive out competition, they will lower the boom on the consumers and the farmer – like in the USA.

Stuffed and starved

Raj Patel, in his book, Stuffed and Starved, demonstrates how global food corporations are behind global food habits, imbalance traditional diets, creating disease epidemics (like diabetes) – and how India needs to be careful before crafting industrial policies that encourage these global corporations to destroy Indian agriculture. A book review extracts some key points as follows,

Polluter cleans up principle ought to apply (Carton by David Horsey; courtesy - indianinthemachine.wordpress.com). Click for larger image.

Polluter cleans up principle ought to apply (Carton by David Horsey; courtesy - indianinthemachine.wordpress.com). Click for larger image.

What we think are our choices, says Patel, are really the choices of giant food production companies. Millions of farmers grow food, six billion people consume it. But in between them are a handful of corporations creating what Patel calls “an hourglass” model of food distribution. One Unilever controls more than 90% of the tea market. Six companies control 70% of the wheat trade. Meanwhile, farmers across the world are pitted against each other, trying to sell these gatekeeper companies their produce. And if you think the consumer comes out on top because of all this competition, think again.

The End of Bretton Woods

With the collapse of Bretton Woods, this will become increasingly difficult. Where will US agriculture be without subsidies – in a massively high costs zone. US food exports will shrivel and global agricultural prices will reach (at least) 200 year highs (my estimate). And that will be the golden hour for Indian agriculture. What is the only dark cloud in this scenario – GM seeds which the West is pushing down the reluctant Indian agriculturists’ throat. With significant help from the Indian Government.

Why India’s top cities matter … or do they really?

February 11, 2009 1 comment

These giant corporations, fueled by huge debt & equity, will drive out competition, and lower the boom on consumers and the farmer – like in the USA.
Information on dangers of industrial food is suppressed by more noise through campaigns of advertising, PR, sponsored research  | Cartoon Concept - Mike Adams; Cartoon Art - Dan Berger; 2006; source and courtesy - naturalnews.com  |  Click for larger source image.

Information on dangers of industrial food is suppressed by more noise through campaigns of advertising, PR, sponsored research | Cartoon Concept - Mike Adams; Cartoon Art - Dan Berger; 2006; source and courtesy - naturalnews.com | Click for larger source image.

India’s top 20 cities account for just 10 per cent of the country’s population, but this population earns more than 30 per cent of the country’s income, spends 21 per cent and, so, accounts for just under 60 per cent of the surplus income. The next lot of cities account for 20 per cent of population, 13 per cent of income and under eight per cent of surplus income or savings. Rural areas account for 70 per cent of population, 64 per cent of expenditure and just a third of the country’s surplus income. It’s obvious then that India’s savings can grow only as the country’s urbanisation rises. Given this, the promise of creating more urban centres would be a more effective tool in getting votes from rural India. (via Rajesh Shukla: Why India’s top cities matter).

Twisted data

How about also pointing out, Mr.Shukla, that urban India hogs all the infrastructure investments? Or that traditional banking (in the form of money lenders) has been done to death in the rural areas – and ‘modern’ urban banks do not go the countryside. Or that the traditional health infrastructure has been demolished in rural areas – and urban areas are getting all the investments. Or that credit growth in the rural areas has been choked for nearly 80 years now – and the Indian farmer competes with the US farmer, without the US$15-20 billion dollar subsidy (estimates vary).

Are you looking at the fact that rural India which is largely a user of Indian languages is excluded from higher education, which is transmitted in English? Has it occurred to you that this exclusion of India’s rural population from higher education could be the reason for the stagnation in rural areas?

Why is the US consumer not getting low food prices? What stops these food corporations from delivering low prices to consumers and high prices to farmers in the USA?  |  Cartoo by Richard Crowson; 18th April 2008;  source and courtesy - cagle.com  |  Click for larger image size.

Why is the US consumer not getting low food prices? What stops these food corporations from delivering low prices to consumers and high prices to farmers in the USA? | Cartoo by Richard Crowson; 18th April 2008; source and courtesy - cagle.com | Click for larger image size.

Farmers – in India and USA

The Indian farmer working without subsidies, with low technology, lower productivity has a cost edge over his European an American counterparts.

Giant food corporations, killed buying competition with high prices (to farmers), direct buying from farmers (at higher prices), monoclonal seeds that destroy bio-diversity. And the US consumers are not getting the lower food prices that are being promised in India.

And paid hacks of these Western corporations are trying to tell Indian consumers and policy makers that these giant corporations will reduce the costs of food In India.

Corporate farming … anyone?

Today, an ‘efficient’ and ‘hi-tech’ agricultural farm sector in the US needs more than US$ 15-20 billion (estimates vary) of subsidies to survive.

We may reach this stage sooner than you think.  |  Cartoon by Mark Knight; on 7/8/09; cartoon source and courtesy - thepunch.com.  |  Click for a larger image.

We may reach this stage sooner than you think. | Cartoon by Mark Knight; on 7/8/09; cartoon source and courtesy - thepunch.com. | Click for a larger image.

The US-EPA says, “By 1997, a mere 46,000 of the two million farms in this country (America), accounted for 50% of sales of agricultural products (USDA, 1997 Census of Agriculture data)– and gobble up most of this huge subsidy that lowers Third World agricultural prices.

These lower agricultural prices devastate agriculture in Third World countries, creating man-made famines. These man-made famines, of course, gives the West a false sense of superiority. (bold letters mine).

Beasts of Debt & Equity

These giant corporations are aiming for entry into India – promising ‘efficiencies’ in buying (which will give consumers a better price), and higher prices for farmers (which will increase farm incomes). Of course, this will last as long as there is competition. Once, these giant corporations, fueled by huge amounts of debt and equity, drive out competition, they will lower the boom on the consumers and the farmer – like in the USA.

Raj Patel, in his book, Stuffed and Starved, demonstrates how global food corporations are behind global food habits, imbalance traditional diets, creating disease epidemics (like diabetes) – and how India needs to be careful before crafting industrial policies that encourage these global corporations to destroy Indian agriculture. A book review extracts some key points as follows,

What we think are our choices, says Patel, are really the choices of giant food production companies. Millions of farmers grow food, six billion people consume it. But in between them are a handful of corporations creating what Patel calls “an hourglass” model of food distribution. One Unilever controls more than 90% of the tea market. Six companies control 70% of the wheat trade. Meanwhile, farmers across the world are pitted against each other, trying to sell these gatekeeper companies their produce. And if you think the consumer comes out on top because of all this competition, think again.

Selective data, is usually called propaganda Mr.Shukla. I wonder, who your minders are?


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