Displacing farmers :

India will have 400 million agricultural refugees

By Devinder Sharma

It was on the cards. With Prime Minister Manmohan Singh announcing the formation of a new rehabilitation policy for farmers displaced from land acquisitions, it is now official -- farmers have to quit agriculture.

Ever since the Congress-led UPA Coalition assumed power after an angry rural protest vote threw out the erstwhile BJP-led NDA combination in May 2004, the Prime Minister had initiated a plethora of new policies for the spread of industrialization. After having laid the policy framework that allows private control over community resources – water, biodiversity, forests, seeds, agriculture markets, and mineral resources -- the UPA government finally looked at the possibility of divesting the poor people of their only economic security – a meagre piece of land holding.

“Special Economic Zone (SEZ) is an idea whose time has come,” the Prime Minister had said at an award ceremony in Mumbai sometimes back. Supported by all political parties, including the Left Front, he has actually officiated a nationwide campaign to displace farmers. Almost 500 special economic zones are being carved out (see The New Maharajas of India http://www.stwr.net/content/view/1392/37/). What is however less known is that successive government’s are actually following a policy prescription that had been laid out by the World Bank as early as in 1995.

A former vice-president of the World Bank and a former chairman of Consultative Group on International Agricultural Research (CGIAR), a body that governs the 16 international agricultural research centers, Dr Ismail Serageldin, had forewarned a number of years ago. At a conference organised by the M S Swaminathan Research Foundation in Chennai a few years back, he quoted the World Bank to say that the number of people estimated to migrate from rural to urban India by the year 2015 is expected to be equal to twice the combined population of UK, France and Germany.

The combined population of UK, France and Germany is 200 million. The World Bank had therefore estimated that some 400 million people would be willingly or unwillingly moving from the rural to urban centres by 2015. Subsequent studies have shown that massive distress migration will result in the years to come. For instance, 70 per cent of Tamil Nadu, 65 per cent of Punjab, and nearly 55 per cent of Uttar Pradesh is expected to migrate to urban centres by the year 2020.

These 400 million displaced will constitute the new class of migrants – agricultural refugees.

Acerbating the crisis are the policy initiatives that promotes privatization of natural resources, take over of farm land, integrating Indian agriculture with the global economy, and moving farmers out of agriculture – in essence the hallmark of the neo-liberal economic growth model.

Agricultural reforms that are being introduced in the name of increasing food production and minimising the price risks that the farmers continue to be faced with, are actually aimed at destroying the production capacity of the farm lands and would lead to further marginalisation of the farming communities. Encouraging contract farming, future trading in agriculture commodities, land leasing, forming land-sharing companies, direct procurement of farm commodities by amending the APMC Act will only drive out a majority of farmers out of subsistence agriculture.

Although the land holding size is diminishing, the answer does not lie in allowing the private companies to replace farmers. Somehow the entire effort of the policy makers is to establish that Indian agriculture has become a burden on the nation and the sooner the country offloads the farming class the better it will be for economic growth.

Contract farming therefore has become the new agricultural mantra. Not realising that private companies enter agriculture with the specific objective of garnering more profits from the same piece of land. These companies, if the global experience is any indication, bank upon still more intensive farming practices, drain the soil of nutrients and suck ground water in a couple of years, and render the fertile lands almost barren after four to five years. It has been estimated that the crops that are contracted by the private companies require on an average 20 times more chemical inputs and water than the staple foods.

Sugarcane farmers, for instance, who follow a system of cane bonding with the mills, actually were drawing 240 cm of water every year, which is three times more than what wheat and rice requires on an average. Rose cultivation, introduced a few years back, requires 212 inches of groundwater consumption in every acre. Contract farming will therefore further exploit whatever remains of the ground water resources. These companies would then hand over the barren and unproductive land to the farmers who leased them, and would move to another fertile piece of land. This has been the global experience so far.

Allowing direct procurement of farm commodities, setting up special markets for the private companies to mop up the produce, and to set up land share companies, are all directed at the uncontrolled entry of the multinational corporations in the farm sector. Coupled with the introduction of the genetically modified crops, and the unlimited credit support for the agribusiness companies, the focus is to strengthen the ability of the companies to take over the food chain.

I have always warned that agribusiness companies in reality hate farmers. Nowhere in the world have they worked in tandem with farmers. Even in North America and Europe, agribusiness companies have pushed farmers out of agriculture. As a result, only 7,00,000 farming families are left on the farm in the United States. Despite massive subsidies in European Union, one farmer quits agriculture every minute. Knowing well that the markets will displace farmers, the same agriculture prescription is being applied in India.

A Planning Commission study has shown that 73 per cent of the cultivable land in the country is owned by 23.6 per cent of the population. With more and more farmers being displaced through land acquisitions, either for SEZ or for food processing and technology parks or for real estate purposes, land is further getting accumulated in the hands of the elite and resourceful. With chief ministers acting as property dealers, farmers are being lured to divest control over cultivable land. Food security and food self-sufficiency is no longer the country’s political priority.

The government has very conveniently taken refuge behind an NSSO study that says some 40 per cent of the farmers have expressed the desire to quit farming. After all, what the government is facilitating is to make it easier for the farmers to abandon their land. It believes that a rehabilitation policy for the farmers therefore is the need of the hour. What is however not being seen through is that an agrarian economy like India cannot afford large-scale displacement of farmers. It will lead to social unrest the kind of which has not been witnessed. What India needs desperately is a policy paradigm that restores pride in agriculture, stops take-over of agricultural lands, and ensures sustainable livelihoods for 600 million farmers.

( Devinder Sharma is a food and agriculture policy analyst )

As a member of Delta :
Created a "PC Based Oscilloscope" in IIT Bombay, as a summer project. Used java servlets on the server side and a java applet on the client side. Was responsible for the whole of the software side - 2006 Summers
Worked in Pragyan CMS V1, which finally got implemented in our college website - 2005-2007
Made Dalal Street, a stock market simulator using java servlets on the server side and using eclipse to make a java based ui compiled using gcj to eliminate the need of jvm to run the final executable - 2006 Dec - 2007 Jan
Used CVS for the development of Dalal Street, understood the importance of a code versioning system.

As being a part of Delta Core (Technology Changes) :
Implemented LDAP using openldap, in Delta, allowing everyone to have a central authentication server, with a common login everywhere, where everywhere includes :
system login in Sun Lab comps
Implemented NFS on Delta, which gets mounted on all Sun Lab comps, using the default nfs service provided by default on fedora, so everyone has the same home irrespective of the comp they login to, which they do through their ldap accounts.
Implemented pure-ftpd on Delta, configured it to work through ldap, allowing everyone to access their home drives even from "outside" (the user labs).
Setup, and advocated use of Doku for information keeping, made it work through LDAP.
Implemented and introduced SVN on Delta, setup three repositories : pragyan, delta and dalal, delta for the use of all delta projects.
Implemented and introduced trac on delta, setup three repositories : pragyan, delta and dalal. Customized all of these three. Learned how to customize through .egg files.
Made svn and trac work through httpd authentication, which used LDAP to get authentication details. (this was hell)
Revived delta as a student group - meaning, made sure many meetings were held, made sure everyone knew each other, everyone contributed something to delta and felt a part of the group, made sure many treats were held, and chucked a few inactive members out of delta.
Created Pragyan CMS V2, from scratch.

As being Pragyan'08 Systems head :
Implemented mail system through postfix, made its authentication work through ldap. Implemented mailman like features using contact attribute in ldap and aliases in postfix.
Made dovecot work through ldap too.
Learned what SSL certificates are, how they work, created a self signed ssl certificate for pragyan.org, using tinyCA2 provided in Fedora, and made it use it. (basically, allowed the use of https://pragyan.org/...)
Implemented FDS (Fedora Directory Server) as a much better alternative to LDAP on Pragyan Server.

India FDI Watch along with its partner organizations calls for Halla Bol on 23rd February 2008 in all the major cities of India taking demonstrations to the doorstep of corporate stores. Militant demonstrations will be organized before the corporate stores as part of the action. In Kerala, Kerala Vyapari Vyavasayi Ekopana Samiti will organize a Halla Bol rally in Trichur on 23rd Feb. Lakhs of small shopkeepers are expected to join the rally to raise their voice against corporate retail.

The political resolution draft for XIX Party Congress of CPM says, "The Party firmly opposes FDI in retail trade as it will seriously affect the livelihood of millions of shopkeepers and small traders. The entry of big Indian corporates into retail trade has a similar effect. At present there is no law to restrict the entry of corporate sector. Taking advantage of this, companies like Reliance have entered retail trade in a big way. The CPI(M) has set out a policy document for licensing and regulating the entry of corporates in retail trade. Till the Central Government puts in place such a policy, the Left led governments should take steps to regulate their entry." Leaders of the party informed India FDI Watch that West Bengal Govt. has decided to regulate the entry of corporates in retail trade according to its policy draft and a committee will be formed having traders and hawkers to issue licenses to corporations to do retail.

National Statistical Office (NSO) of South Korea reported that, Mom-and-Pop shops are disappearing from neighborhoods, losing to cutthroat competition against giant retail outlets and convenience stores. Korean Mom-and-pop shops are seeing sales drop. It says, - Losing the competition, these small retailers are disappearing from the market. According to the Bank of Korea, the number of these shops dropped to 585,996 in 2005, from 739,059 in 1995. Another statistic showed that an average 6.3 mom-and-pop shops closed down everyday between 2001 and 2006. The number of corporate stores, meanwhile, surged to 8,855 from 1,557, increasing 20 percent on average every year during the last 10 years.

Below is the link of an informative short video, reflective of the unsustainable wasteful consumption culture being developed by corporate retailers: - www.storyofstuff.org

In Solidarity !
Dharmendra Kumar
Director
India FDI Watch
M-09871179084
Email:dkfordignity@yahoo.co.uk, dkfordignity@gmail.com

Drug wholesalers of Mumbai boycott Subhiksha :
http://www.planetretail.net/NewsFeed/NewNewsFeed.aspx
Drug wholesalers of Mumbai have boycotted Subhiksha. Subhiksha has sent legal notices to drug wholesalers in Mumbai for withholding supplies. Subhiksha Managing Director R Subramanian said, "wholesalers have boycotted us and have stopped supplying medicines.
Wal-Mart did lobby Blair over Asda

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/01/27/cnasda127.xml

Details of a secret Downing Street meeting held between Tony Blair, the then prime minister, and a senior Wal-Mart executive just months before the world's biggest retailer pounced on Asda have finally been released, some nine years after the £7bn deal was struck. The Sunday Telegraph can reveal that Bob Martin, the then chief executive of Wal-Mart International, complained at the meeting to Tony Blair about Britain's restrictive planning rules. The minutes of the meeting, released last month by the Cabinet Office after a direct order from the information watchdog, lay bare the lobbying strategy employed by Wal-Mart before it bought Asda in July 1999. The three-page document exposes the frantic lobbying of a country's leaders that top executives carry out before making a major acquisition.

Mom-and-Pop Shops Disappear As Giant Retail Shops Pop Up :

http://www.koreatimes.co.kr/www/news/biz/2008/02/123_18403.html

Mom-and-pop shops are disappearing from neighborhoods, losing to cutthroat competition against giant retail outlets and convenience stores. According to the National Statistical Office (NSO), huge retail outlets like E-Mart posted sales growth of 9.8 percent last year. Mom-and-pop shops, meanwhile, are seeing sales drop. Small markets below 50 pyeong (165.3 square meters), excluding convenience stores, saw sales decrease of 2.9 percent. They were the only retailers to see sales fall. Losing the competition, these small retailers are disappearing from the market. According to the Bank of Korea, the number of these shops dropped to 585,996 in 2005, from 739,059 in 1995. Another statistic showed that an average 6.3 mom-and-pop shops closed down everyday between 2001 and 2006. The number of convenience stores, meanwhile, surged to 8,855 from 1,557, increasing 20 percent on average every year during the last 10 years. Retail outlets also explosively surged to 316 from mere 25 a decade ago, growing 28.9 percent on average each year.

Retail policy stuck over Rs 16 lakh bill :
http://sify.com/finance/fullstory.php?id=14596372
The Centre's proposed retail policy seems to be stuck over, believe it or not, an uncleared bill of Rs 16 lakh. ICRIER, it seems, will not submit the report till this bill is cleared by the government. The government's objective was to draw up a comprehensive retail policy from the findings of the ICRIER study.

WORLD SOCIAL FORUM: Mumbai Marches on Against Globalisation :
http://www.ipsnews.net/news.asp?idnews=40953
MUMBAI, Jan 27 (IPS) - There was grim determination on the faces of the 500-strong crowd that marched through the streets of this western port city for the World Social Forum’s Global Day of Action on Saturday.
Defiantly, they carried banners that read ’Another World is Possible". The slogan -- familiar enough in this city which hosted the WSF in 2004 -- has a special ring to it because memories linger of a year-long strike in 1982, by some 250,000 textile mill workers, which failed.
"India's retail sector is facing the onslaught of national and multinational corporations which will lead to the destruction of livelihoods of over 40 million people in the country," said V. Shetty, lawyer and coordinator of India FDI Watch, an organisation spearheading a national campaign against foreign direct investment (FDI) in the retail sector, and the Vyapar Rozgar Suraksha Samiti (Committee for Protection of Livelihoods and Retailers), a coalition of small traders, hawkers and workers.
"Multinational chains have started selling vegetables at predatory prices, threatening the livelihoods of hundreds of thousands of hawkers who make a subsistence income on this work. And Indian companies like Reliance, Godrej and the Birlas open retail outlets and lure middle-class customers with prices that are below cost, running "Mom and Pop" stores out of business after which they can hike their prices sky high, said Shetty. ''The ground realities are in complete contrast to stated government policies of not allowing FDI in the retail trade. Walmart, the largest company of any kind in the world, is slated for entry into India in 2008, in a joint venture with an Indian company."

Reliance Fresh on Orissa govt watch list :
http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Reliance_Fresh_on_Orissa_govt_Watch_list/articleshow/2738944.cms
NEW DELHI: Reliance Fresh could be headed for an Uttar Pradesh-like situation in Orissa with the state government learnt to have assured an India FDI Watch delegation that it will re-scrutinise the permission given to Reliance Fresh for opening outlets in Orissa. “We have been assured by a senior state government official that all possible steps would be taken for the rehabilitation of roadside vendors. The permission given to Reliance Fresh for opening outlets would also be scrutinised,†India FDI Watch director Dharmendra Kumar told ET.
India FDI Watch is a national association of small traders that is opposing big and foreign retail players. The Orissa government has, meanwhile, also offered a helping hand to the roadside vendors, notifying specific zones for them across the state.
To start with, 15 such vending zones will be opened in the Cuttack district of Orissa, aimed at rehabilitating roadside vendors, whose business has reportedly suffered major losses due to entry of organised retail players. Reliance Fresh has had a difficult time operating in the state. Even its launch in September last year was marred by violent protests from local traders and the company had to close down its Bhubaneshwar store for a couple of hours on the day of the launch itself.
The state government had also refused to extend any preferential treatment or additional security to the corporate giant.
Farmers urged to come under one umbrella :
http://www.financialexpress.com/news/Farmers-urged-to-come-under-one-umbrella/267068/0
The former Union agriculture minister and the CPI leader, Chaturanan Mishra urged the farmers' organizations affiliated to different political parties in country to come under one platform to fight for the just cause. The conference passed a resolution demanding hike in the minimum support price (MSP) for paddy to at least Rs 1000 per quintal and that of paddy and that of wheat to at least Rs 1600 per quintal. It criticised the wheat imports done by the government at higher prices in 2006 and 2007, when ample wheat was available in the country. The government should have purchased wheat from farmers by raising the MSP, instead of buying wheat in the global market at higher prices, it said Expressing concerns over the government's apathy towards the increasing incidences of suicides committed by farmers, the Bharatiya Krishak Samaj president, Krishan Bir Chaudhary demanded reversal of the anti-farmer policies. The resolution criticized the government for opening the doors to the corporate houses and multinationals in Indian agriculture and in the retail chains as this would lead to greater exploitation of farmers. The resolution also called for a ban on futures trading in agro commodities. The resolution also demanded a ban on genetically modified crops. The farmers have suffered huge losses on account of Bt cotton cultivation.

Mom, Pop stores impacted by big retail: ICRIER :
http://www.expressindia.com/latest-news/Mom--Pop-stores-impacted-by-big-retail--ICRIER/266673/

The neighbourhood kirana stores will initially feel the heat with the growth of big super markets and malls, Rajiv Kumar, Director of ICRIER, which has been entrusted with a government study on the impact of organised retail on Mom & Pop stores, said. "Small retailers will be initially impacted by the entry of large scale retail houses. However, the impact is likely to be diluted over a period of time", Kumar said.

Draft Political Resolution For XIX Party Congress :
http://pd.cpim.org/2008/0127_pd/01272008_draft.htm

The Party firmly opposes FDI in retail trade as it will seriously affect the livelihood of millions of shopkeepers and small traders. The entry of big Indian corporates into retail trade has a similar effect. At present there is no law to restrict the entry of corporate sector. Taking advantage of this, companies like Reliance have entered retail trade in a big way. The CPI(M) has set out a policy document for licensing and regulating the entry of corporates in retail trade. Till the Central Government puts in place such a policy, the Left - led governments should take steps to regulate their entry.

Reliance to unveil new speciality format; plans to set up 100 AutoZone stores :
Having already launched its first ˜ AutoZone " in the recently opened Reliance Mart (Hypermarket) at Jamnagar (Gujarat) on the 30th January, Reliance Retail, is ready to rollout a super speciality retail chain of auto stores across the country. Apart from selling auto spares and repairing two wheelers and four wheelers, AutoZone stores will also retail two wheelers and pre-used branded cars.Reliance plans to set up about 100 such AutoZone stores across the country, within a year.

Landmark group to undetake aggressive retail expansion; plans $500 mn. investment in 3 years :
indiaretailbiz.com

Landmark Group, owned by Dubai-based group of NRIs, which currently operates 19 stores under three retail chains across 9 cities in India, according to a Business Standard report, is planning to invest another $500 million in the next three years (by 2010) in the country. The group, in the past 10 years, since 1998, has invested $100 million in the country. Landmark group operates over 650 stores across West Asia, India, China and Spain. Landmark's current operations comprise 13 Lifestyle stores, 5 Home Centre stores and a Babyshop store operating out of Ahmedabad, Bangalore, Chennai, New Delhi, Gurgaon, Hyderabad, Mumbai, Vashi and Pune.

Reliance could soon foray into travel retail business :
To begin with, before venturing into full fledged travel business, the company would first like to leverage on the domestic and international travel business worth about Rs. 100 crore being generated by the group and on promotional schemes that offer travel related incentives like holidays to its retail customers. The company, incidentally, has already incorporated a subsidiary called Reliance Retail Travel & Forex Services Ltd. The new company appears to have tied up with Indian, the national airline, for up to 30% discount on airfares.

Kamal Nath defends retail FDI policy :
http://www.thehindubusinessline.com/2008/02/09/stories/2008020952401000.htm

Bangalore, Feb. 8 The Union Commerce Minister, Mr Kamal Nath, on Friday said that the government will continue to reduce customs duty but it will also ensure that every fiscal policy decision it takes stimulates economic growth. But he defended India’s policy on retail FDI stating that there was a need to protect smaller retail shops and the conditions in the country were different from other countries. "We need to see that the policy does not dislocate small retailers," he told delegates at the India Sourcing Summit.

Birla Retail in talks with farmers' co-ops for direct procurement :
http://www.financialexpress.com/news/Birla-Retail-in-talks-with-farmers---co-ops-for-direct-procurement/269189/

Bangalore, Feb 4 Even as India's largest business conglomerate Reliance Industries is facing trouble over its retail venture over procurement of farm products, its competitor Aditya Birla Retail Ltd, the retail arm of the $23-billion Aditya Birla Group, is trying to overcome the hurdles by tying up with farmers' cooperative societies. The company, that has set a target of establishing 1,000-1,500 superMarkets and has earmarked Rs 8,000-9,000 crore in the next five years, is planning to tie-up with cooperatives to procure fresh farm products, vegetables and fruits.

Spencer's first hypermarket in Kolkata launched; plans to invest Rs. 2,500 Cr. in expansion :
Spencer's, among the oldest names in retail sector, threw open the doors of its Hypermarket store on in Kolkata on the 1st Feruary, 2008. The store was opened by the group patriarch R P Goenka. Besides Kolkata, Spencer's also operates hypermarket format stores in Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag, Vijayawada, Aurangabad and Durgapur. The group is planning to scale up its operations to 52 cities in the coming months.