Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Saturday 20 February 2021

Kisan Sabha gets Constructive

 


 

Context :

AIKS floats model bill on crop support price    /   Business Line  /  20 Feb 2021

Extract :

Maintaining that a law to ensure Minimum Support Price at 50 per cent above cost of production (C2+50 per cent) is possible, the All India Kisan Sabha has come up with a model Bill to ensure fair and remunerative price for farm produce.

The AIKS hopes to get the Bill into Parliament as a private member’s Bill during the second part of the budget session

The Bill suggests,

Ø  creation of social cooperatives of workers and peasants,

Ø  which will supply agricultural products based on the quality standards ,

Ø  to the “ Primary Agricultural Self Help Groups

Ø  at MSP which is not less than C2 + 50 per cent.

 

It also recommends

Ø  A scheme to share certain fixed percentage of the surplus income earned by marketing the value-added products processed out of the primary agricultural products as additional price to the farmers.

Ø  It will be calculated according to the proportion of the quantity of products supplied to the social cooperatives and additional wages to the workers involved in the production network.

Self Help Groups

 

Self Help Groups can be formed with the approval and under the direction of the respective ‘Block Agricultural Social Co-operative Processing and Marketing Centre’ comprising of not less than twenty and not more than forty farmers and agriculture workers residing in the designated local bodies and engaged in farming.

The model Bill also proposes establishment of Price Stabilisation Fund (PSF) with the contribution of member farmers and others and the support of various schemes of the Centre and State Governments, interest free loans from the financial institutions with government guarantee and share from the surplus income of the social cooperatives.

“The PSF can develop as self-reliant fund from the share of surplus created out of the income from the processed, value added consumer products and extend assistance for developing crop insurance and compensation schemes to all member farmers,” the Bill said. It says procurement of agricultural products at rates lower than MSP should be treated as an offence.

Existing formula

 

“A system of authority to monitor and fix Minimum Support Price to all crops from time to time shall be ensured,” the Bill said.

Releasing the draft Bill, AIKS leaders Hannan Mollah and Ashok Dhawle said,

Ø  the existing rate of MSP based on A2+FL calculation (actual paid out cost plus imputed value of family labour) is not remunerative and

Ø  according to reports only six per cent of the farm produce based on the estimate of Gross Value Added has been procured by the governments by providing this meager MSP.

 

 “Hence huge majority of the farmers are forced to sell far below support price, making MSP only notional for the vast majority,” they said.

Mollah and Dhawle added that

Ø  the benefit of surplus created out of value addition of farm produce is amassed by the corporate companies.

They cited the example of Basmati rice and said ,

Ø  while farmers get ₹18 to ₹ 30 per kilo from the intermediaries for Basmati paddy, branded Basmati is sold at about ₹ 208 per kilo.

Ø  “This sort of loot and exploitation by the corporate sector and their intermediaries in the market is one of the main reasons for the widespread indebtedness of the peasant households and the resultant massive peasant suicides.

Ø  Every hour two farmers are committing suicide in India and 2,468 farmers per day are forced to give up agriculture,” they said.

===================================================

In my following earlier e-mail , I had suggested a somewhat similar provision :

Selling Farm Laws before selling Farm Crops …………………………….[ 24 Sept 2020 ]

 

Extact :

Dear Shri Tomarji 

nstomaroffice@gmail.com / ns.tomar@sansad.nic.in ],

I am sure those farmer organizations would send their delegates to meet you. When they do, I request you to consider telling them following :

Ø   As it is, farm income is already exempt from Income Tax. 

 To enable rapid adoption of CONTRACT FARMING, we will exempt the “Profit “ that a Company will make

  by “ Value Added through Processing “,of farm produce purchased by entering into CONTRACT

  FARMING 

 This provision will be for 5 years and will encourage thousands of Companies to enter into CONTRACT

 FARMING  agreements with farmers.

This will expand the market and bring in COMPETITION among these Corporate Buyers, leading to higher prices for the farmers

 

Ø  On the existing Govt portal ( e-NAM ), we will introduce a section called CONTRACT FARMING,

         where the farmers desirous of entering into contract farming agreements,

         will submit their full details

             #  Name / Farm Size / Location of farm / main crops / past yields per

                  acre / no of workers / family members engaged / existing

                  loan  liabilities / water availability etc )

                       

                 

Ø  Companies on look-out for CONTRACT FARMING can search this database ( of course , after due registration with full details of the Company ) and shortlist / select potential farmers and send them their “ Purchase Proposal “ ( by filling in an Online Standard Form ).

Ø  Central Government would have full access to these contracts entered Online  between the parties and ensure that no contract is entered into below the MSP for the concerned crop

 

Ø   No one else can see these contracts but the parties concerned would have a provision to EDIT these

 

Ø  This will enable the Govt to know the INPUT COST for the “ Contracting Company “ , and link it with the “ Profit made through Processing Value addition “, in order to grant tax exemption described earlier

          ==================================================

Dear Shri Tomarji,


For past 3 months, Kisan Unions were merely criticizing the FARM LAWS – and demanding repeal, without suggesting WHAT SPECIFIC ALTERNATE clauses they wanted introduced in these laws


Now All India Kisan Sabha ( AIKS ) has gone, more than a step forward and decided to introduce a entirely NEW BILL ( - to override, the existing ones )


That puts the ball in your court. This proposed bill opens up a new door for a dialogue in the spirit of “Give & Take “


Now, it is up to you to introduce AMENDMENTS – sharply worded, specific amendments – and refer the bill to the SELECT COMMITTEE.


In my earlier mail, I had proposed :


Ø  Incentivizing the FOOD PROCESSORS ( Companies making “ VALUE ADDITION by PROCESSING “ ) by tax-exempting their “ AMOUNT of PROFIT “ solely made through processing of Agro-crops obtained through CONTRACT FARMING only ( - and not through processing of agro-crops freely purchased in Mandies )

My idea was to increase many fold, value-addition of agri-crops by  “ incentivizing “ food-processors



As against this , AIKS wants that ,


Ø  share certain fixed percentage of the surplus income earned by marketing the value-added products processed out of the primary agricultural products as additional price to the farmers


Ø   the benefit of surplus created out of value addition of farm produce must not be amassed by the corporate companies.


Ø  Instead of solely “ incentivizing “ the corporate ( as suggested by me ) , through sharing of “ Surplus Income Earned “ , we should  “ motivate “ the farmers to come forward in a big way , to cooperate / collaborate with the FOOD PROCESSORS


If , as suggested by AIKS , an iron-clad / foolproof  method ( of sharing of “ SURPLUS INCOME through FOOD PROCESSING “ with the farmers ) can be put in place, I believe, it will find much better acceptance among farmers ( as compared to my suggestion , which may have a simpler operating mechanism , but may smack of crony-capitalism )



Dear Shri Tomarji ,

I urge you to approach AIKS proposal with an OPEN MIND


With regards,

Hemen Parekh  /  hcp@RecruitGuru.com  /   21 Feb 2021

===================================================

CC : All India Kisan Sangarsh Coordination Committee ( AIKSCC ) – Members

===================================================

Akhil Gogoi

Krishak Mukti Sangram Samiti (KMSS)

secretarykmss@gmail.com

Dr Ashish Mittal

All India Kisan Mazdoor Sabha (AIKMS)

aikms.cec@gmail.com

Atul Kumar Anjaan

All India Kisan Sabha (AIKS)

atulanjaan@gmail.com

Avik Saha

Jai Kisan Andolan (JKA)

avik@saharay.com

Dr Darshan Pal

Bhartiya Kisan Union (BKU Dakaunda)

darshanpal1@gmail.com

Hannan Mollah

All India Kisan Sabha (AIKS Canning Street)

mollah.hannan@gmail.com

Kavitha Kuruganti

Alliance for Sustainable & Holistic Agriculture (ASHA)

kavitakuruganti@gmail.com

Kiran Vissa

Rythu Swarajya Vedika (RSV)

kiranvissa@gmail.com

K. Chandrasekhar

Karnataka Rajya Raitha Sangha (KRRS)

kodihallichandrashekar@gmail.com

Medha Patkar

National Alliance for People’s Movements (NAPM)

medha.narmada@gmail.com

P. Ayyakkanu

National-South India River Interlinking Agriculturists Association

Pratibha Shinde

Lok Sangharsh Morcha (LSM)

loksamanwaypratisthan@gmail.com

Raja Ram Singh

All India Kisan Mahasabha (AIKM)

rajaramsingh18@gmail.com

Raju Shetti

Swabhimani Shetkari Sanghtana (SSS)

rajushetti@gmail.com

Satyawan

All India Kisan Khet Mazdoor Sangathan (AIKKMS)

kisansangathan@gmail.com

Dr Sunilam

Kisan Sangharsh Samiti

samajwadisunilam@gmail.com

Tajinder Virk

Tarai Kisan Sangathan

tajindersamajwadi@gmail.com

VM Singh

Rashtriya Kisan Mazdoor Sangathan (RKMS)

vmsingh@vmsingh.com

Yogendra Yadav

Swaraj Abhiyan

yogendra.yadav@gmail.com

 

 

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