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Basmati beset by debate and delay


More than a year after the application for recognising Basmati as a GI was filed, there is still no way to be certain if the grain on our plates is the real thing. As a result, a lot of the rice packed and sold in Haryana is called basmati, and traders in other countries too freely use the name. Varupi Jain reports.




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The high cost of 'easy' foreign exchange


A new sop came into effect for net-foreign exchange earning businesses in designated export zones from February 10 -- a 15-year income tax holiday. But are the costs of the revenues foregone worth the claimed benefits of more investment and jobs? M Suchitra examines the reality and does not find a rosy picture.




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Does Jamnagar diesel equal Basmati?


Last year, Reliance Industries Ltd. had filed a geographical indications (GI) application for its Krishna-Godavari gas and Jamnagar petroleum products, despite the fact that the products are not characteristically attributable to geography. Varupi Jain finds that if RIL is granted the GI, it will gain exclusive benefits that it has no rightful claim over.




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The 'Free trade' explosion


With the World Trade talks in limbo, the focus remains on aggressively pushing on the bilateral front. What could not be achieved through a multilateral trade regime, is now being pursued by the US through bilateral and regional deals. Devinder Sharma connects the dots.




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Darjeeling tea's lessons for handlooms


The central government launched the Handloom Mark scheme in June 2006. The idea is to popularise handloom products in domestic as well as international markets and provide a guarantee for the buyer that the product is genuine. But will it work? D Narasimha Reddy looks at the challenges.




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Engineering crops, distorting trade


When technological change has the potential to put the livelihoods of hundreds of millions of people at risk, it must be regulated differently from other products in a free market. Blindly promoting innovation, as is now being done with genetically engineered crops, is self-defeating, writes Suman Sahai.




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Traditional knowledge receives a boost


The government's recent traditional knowledge digital library will send data to patent offices abroad, so that indigenous knowledge that India abundantly has is not patented overseas. Following India's example, other nations too are showing interest in similarly protecting their interests. Ramesh Menon reports.




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SEZs: Lessons from China


While single-minded pursuit of exports has helped China touch record growth figures, millions have been left behind, besides incurring huge environmental costs. And without even the limited dose of welfare that China offers its poor farmers, India must wary of copying China's SEZ-approach, writes Bhaskar Goswami.




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Under pressure, India makes U-turn


At a two-day international seminar on "Saving Doha and delivering on development" that concluded at New Delhi on 13 March, India's Commerce Minister Kamal Nath provided ample evidence of India's willingness to go along with the rich and industrialised countries. The writing is on the wall, says Devinder Sharma.




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Growing credibility gap


It is widely accepted that agricultural subsidies in developed nations are distorting global agriculture trade. And yet, Purdue University and the World Bank are cleverly using economic models and simulated 'welfare gains' to push for market access in developing nations. Therein lies a danger, says Devinder Sharma.




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Weeding out wheat


Claiming highest quality standards in the world when it comes to its own agricultural imports, the United States has no qualms in exporting sub-standard wheat to India. US participation in India's wheat procurement cannot be at the cost of India softening quarantine standards, says Devinder Sharma.




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Paying no heed to groundswell of opinion


A range of criticisms raised at a recent seminar in Mumbai are a sufficient indication of the extent to which SEZs are being pushed as a government policy without any public consultation on their pros and cons. The seminar, on SEZs and their implications for urban planning, was held at the Rachana Sansad School of Architecture. Darryl D'Monte reports.




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G20: The 'trillion' dollar magic trick


To great fanfare, the G20 announced a US $1.1 trillion global package, which will actually deliver less than half that amount in new or guaranteed resources. Meanwhile issues of fundamental economic reform were left off the agenda.




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Varanasi weavers get GI protection


The country's latest Geographical Indication certificate offers some new hope - of putting the sheen and colour back in a vital piece of Indian heritage, and livelihoods linked to it. Puja Awasthi reports.




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Welcome, foreign investors!


In search of new funds to keep the growth story alive, the Centre opens the doors to foreign investment a little further.




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FDI in reverse


It is far from clear if capital exports out of India are good for India. What is apparent, from their enthusiasm, is that Indian companies believe it is good for them. Kannan Kasturi reports.




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Why the Current Account Deficit matters to you and me


India's current account deficit reached alarming levels in the year 2012-13. Kannan Kasturi provides a historical context and lucid explanation of the phenomenon and rues the government's shocking lack of action.




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Our cheese has moved, and only we must find it


The drying up of the dollar and the resultant plummet of the rupee reflects on the government's flawed economic strategy. Shyam Sekhar draws upon the famous business fable Who Moved My Cheese? to show the kind of behaviour and actions that could resolve the crisis now.




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Who's importing all that gold?


The Indian government has stopped short of imposing effective controls on gold imports despite the soaring current account deficit and its concomitant ills. Kannan Kasturi examines recent trends in gold demand to see if the government's rationale behind the soft policy holds good.




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Will The NYT bat against Washington apples in India?


A recent editorial in The New York Times rightly recognises the flaws of a growth model driven by lower trade barriers. But Devinder Sharma wonders if the American daily will take a stand and extend its arguments to champion the cause of all nations, including India.




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Hydropower in the land of Gross National Happiness


The immense untapped potential of hydropower generation in Bhutan has led to several major projects in the offing, with varying degrees of Indian involvement. However, Shripad Dharmadhikary finds a steady rise in voices questioning their impact on the Himalayan environment.




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Is lower inflation here to stay?


Most measures of inflation over the last couple of months point to an encouraging downward movement in price indices; Shambhu Ghatak deconstructs these measures and quotes observations of the RBI to show why it may still be premature to take low inflation for granted.




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Can FDI really spur ‘Make in India’?


The government’s thrust on ‘ease of doing business’ and ‘Make in India’ rests significantly on the premise of attracting foreign capital into manufacturing. Kannan Kasturi tracks data on FDI inflows to see whether it indicates true potential to boost the sector and job creation.




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Trade rules and what they eclipse


The ruling by the World Trade Organisation (WTO)’s dispute settlement body (DSB) in a complaint filed by USA against elements of India’s solar mission is again in the news. Shalini Bhutani helps to piece together the sequence of events and points out how the global trade architecture keeps domestic laws and policies under intense scrutiny.




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The wrong route out?


The complex contractor-maistry system, the devastation of agriculture, an ineffective food-for-work programme, debt and debilitating mass migrions - these are an explosive mix. P Sainath continues his journey with the migrant exodus from Mahbubnagar
Part I : The bus to Mumbai

June 2003 - The bus we're on is one of about 34 leaving the Mahbubnagar region direct for Mumbai each week. That's against just about one a week, a decade ago. People are leaving in droves.

Drought? Mahbubnagar does have a problem. Quite a bit of that, though, is about the control, distribution and use of water. At 634 mm, the average rainfall of the last 14 years here is close to 30 mm above normal. Those, at least, are the official numbers. There have been deficit years. And a couple of truly awful ones -- as in a lot of other districts. This year, District Collector Madhusudhan Rao says, "the deficit is eight per cent so far". Unpleasant, but not crushing.

However, it hurts a lot more when that comes atop the many other problems Mahbubnagar has. Problems that are not seasonal. For instance, a social backwardness that helps hold down lakhs of people in bondage. (This is a district where some workers still have to present their landlord with a pair of sandals each year. Where teashops routinely use separate glasses for dalits and upper caste customers.) Our bus has more than a few dalit passengers. None of them can enter the temples in their villages. Forget about having their weddings in them.

Or take debt. Every migrant on our bus is steeped in it. "We'll be paying that forever", says Venkataiah, a Lambada adivasi. with a rueful smile. "How can we ever make it up?"

The huge lack of employment in the district hits everything. Even the women's self help groups (SHGs) at the village level. "Each member is to put one rupee daily from her earnings into the group fund", Subhadramma had told us in Vepur. "In theory that's fine", this landless worker had said. "One rupee a day, thirty days, thirty rupees. But when we earn only Rs. 12 or Rs. 15 a day, that single rupee counts. So what happens when we find work for less than ten days in the month?" What happens is that the SHG flounders. With many members migrating -- and several others borrowing to make their payments. With their spouses running up other debts, meanwhile.

It's a district where mass human migrations have destroyed the chance of large numbers of children becoming literate, let alone getting an education. "Of course we take the small ones and go", Sarnamma had told us in Gurrakonda village. "How can we leave them behind?" With their parents on the move for up to nine months a year, these children will end up an army of hard-core illiterates. Their chances of climbing out of poverty, devastated. Every family on the bus has at least one very small child with it. Often more.

It's a district where a small group of powerful feudals controls most resources. Including water. The shortages of water for the poor often arise from this control. Unequal sharing further shatters the small farms. Even if they are not big 'droughts' in an absolute sense, these shortages cause huge damage. They certainly lead to even more out-migration.

Development here has often been based on strategies that have boomeranged. Maybe on plans once aimed at a more prosperous section that have also caught on down the line. With the poor imitating the rich. Every small farmer you meet has spent a fortune on borewells. "That is a major cost", Chandraiah, a farmer had told us in Gurrakonda. He still thinks it's a good idea to sink more. Even though, "Yes, that has been a big route to debt".

Every migrant on our bus is steeped in debt. "We'll be paying that forever", says Venkataiah, a Lambada adivasi. with a rueful smile. "How can we ever make it up?" The focus here has rarely been on equity or a fair deal for the poor. In water, its been more about extraction. As Collector Madhusudhan Rao's figures show: "In the mid-1980s, the district had 97 per cent open (or traditional) wells. Just three per cent borewells. By 2001-02, that figure was reversed. Now it was 97 per cent borewells and three per cent open wells". Desperation has also driven the borewells deeper. Debt has swollen with their number.

Inequality, always a feature of this region, has deepened sharply this past decade. And with it, despair. New forms of bondage have joined the old ones.

Quite a bit of these find reflection in the labour-contract systems. And in the migrations themselves. Many of those on the bus to Mumbai are in the grip of contractors. Here in Mahbubnagar, and also often in those towns outside the state where they seek work. The old Palamuuru contract labour system, as it is called, is quite alive. But it's also gained new features.

There are over one million human beings from here who have at some point in their lives worked outside Mahbubnagar. All have tasted the contractor raj that runs the district. And that is an extensive, many-layered system.

Large contractors do not directly hire labour. "They first farm out chunks of their projects to others", says Ramulu of the Agricultural Workers Union. "For instance, if your clout has landed you a canal contract, you give out some kilometres of work on it to different sub-contractors. The sub-contractors then contact the gumpu maistrys or group labour contractors. These are men who have within their control several team leaders or maistrys who can bring dozens -- some even hundreds -- of workers to them. Each of these maistrys is capable of raising teams of workers from different villages".

"Each team has a panni maistry, or work leader who acts as a sort of disciplinarian. What the contractors do is to pay an advance to the gumpu maistry. He in turn gives out some of this to the regular maistrys, and so on down the line. Finally, a small part of the money goes to the workers who make the journey to Mumbai or elsewhere".

The workers might get a small advance ranging from four to ten thousand rupees. That's a fraction of what the middlemen get along the line. The maistry recruiting in Kanimetta village could have got Rs. 20-40,000. The gumpu maistry above him, a lot more. But that small advance at the bottom binds the debt-strapped workers.

If they're labouring in another part of the state or within Mahbubnagar itself, they haven't a hope of getting the minimum wage. Already, at the Jurala canal lining works, we've met some earning less than Rs. 45 where the wage ought to be Rs. 83. If they're going outside the state to Mumbai, they would earn much more. But a lot of that will disappear on their return.

"We have to pay up a good bit to our local creditors", says Venkataiah. "That is, if they are to allow us to live in any degree of peace in the village". Often the principal sum has been repaid many times over. But the exorbitant interest rates -- 60 per cent or higher -- keep them in debt. At least two-thirds of what he earns in Mumbai goes in debt repayment on his return. Besides, he's spent a lot on health and other expenses in Mumbai. Venkataiah, at least, goes out as a carpenter. And yet he's left with almost nothing. The less skilled ones have it much worse.

The contractor fraternity has worked out an effective system that delivers for it. This accounts, in part, for the large numbers of people on the 34 buses that leave the region daily. The system has a simple rule. Never use local labour if you can help it, no matter how good they are.

"Local labour tends to go to weddings and festivals", explains Chandrashekhar Reddy. He is an outspoken and important contractor on the Jurala works project. "Labour from outside is more easy to discipline. I have workers from Bihar, Orissa and elsewhere. Where this company goes, they go". And so, on his canal lining project, you can find workers from those states. Also many from other parts of Andhra, like Khammam. But fewer from Mahbubnagar itself.

The contractor fraternity has worked out an effective system that delivers for it. The system has a simple rule Never use local labour if you can help it, no matter how good. As another contractor put it: "Outside labour does not know the local language. They are more dependent". They are thus harder to unionise. They can be put through wretched work conditions without a chance of redress. The press tends to get mobilised, if at all, when the affected workers are local. Those from outside carry little clout. In some of the work sites, then, pregnant women have worked right up to the day of delivery. And resumed work less than ten days later.

Mahbubnagar labour itself goes to at least 30 cities across the country. Fulfilling similar strategies for the same or different contractors over there. "We've built skyscrapers in Mumbai and apartment blocks in Pune", Sailu in Kondapur village had told us. "But in Mahbubnagar we have no work". District Collector Madhusudhan Rao lists a series of projects and works that are on in the district. He believes that "anyone who wants work in Mahbubnagar can find it now".

Those crowding the buses and trains believe otherwise. Employment on the projects are controlled by the contractors to whom they are given. "They won't pay us anything liveable here", says Nagesh Goud on the bus. Nor do the food-for-work programmes, to the extent they exist, fill the need. The long lines at the gruel centres in several villages make that clear.

Agriculture has taken a severe beating and not just because of a drought. The rise in the costs of inputs have crushed small farmers. So has the collapse of rural credit. Bus drivers Fashiuddin and Sattar know well how many small farmers travel with them each time they take the route out of Mahbubnagar. "Farming, says Fashiuddin, is a mess."

"Every single cost has gone up", Chandraiah, a farmer in Gurrakonda had told us. "A bag of ammonia phosphate costs three times what it did in 1991. The cost of paddy seed has doubled. That of power has risen manifold. Farming has become too difficult".

"With those costs, we need credit. But if you are a small farmer like I am, with two acres, that's impossible", Chennaiah in Vepur village had said. "If we go to the bank, we are rejected. But the bigger landowners are well connected. My request for Rs. 20,000 will be turned down. The landlord, however will get, say, Rs. 60,000. He uses what he needs of it. Then he loans me that Rs. 20, 000 -- at a rate of interest much higher than that of the bank".

There's a constant propaganda, however, that leaves quite a few villagers believing the rains, new irrigation schemes and relief works could end all their problems. It's a claim forever drummed in by many, from the MP and MLAs and local politicians down to the village elite. Because that line results in projects. And projects result in contracts. And contracts result in money for the right people.

Sure, the water shortage hits the poor. But Mahbubnagar's distress is a complex mesh. It rests on one of the most oppressive and structured systems of labour exploitation. On its complicated contractor-maistry mafia. It feeds on the death of small farms driven by the policies of the last twelve years. On the crisis of agriculture itself in the region. It is fuelled by the social backwardness of centuries. And driven by the dismal human development record of the past decade. The lack of employment spurs the mass human migrations that so debilitate the district.

"What are all those provisions doing on your dashboard"? I ask bus driver Fashiuddin as we get off. "Oh those", he smiles. "We'll do our own cooking when we get to the Kurla bus depot in Mumbai. I like Maharashtra -- but their food! They don't use any chilli at all unlike in our meals at home. So we take all our stuff and cook it there". With plenty of chilli.

At least some things about Mahbubnagar remain delightfully true to its home state.

Part I : The bus to Mumbai

P Sainath
June 2003

P Sainath is one of the two recipients of the A.H. Boerma Award, 2001, granted for his contribution in changing the nature of the development debate on food, hunger and rural development in the Indian media.

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A gruel-ing season


P Sainath reports on the serious problem of rural hunger in Andhra Pradesh, and the politics of free lunches.
Part II : Hi-tech, low nutrition




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Hi-tech, low nutrition


P Sainath reports on the serious problem of rural hunger in Andhra Pradesh, and the politics of free lunches.
Part I : A gruel-ing season




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Drought in the driver's seat


The worse things have become in Anantapur district, the more fancy cars have shown up in town. Drought, says P Sainath, is the organised plunder of the poor.




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The millions who cannot vote


By having elections at a time when people are forced to migrate in search of work, we are simply excluding an ever-growing number of citizens from the vote, says P Sainath.




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Andhra's electoral earthquake


P Sainath on the fault lines in Andhra that led to the ouster of the Chandrababu Naidu led Telugu Desam Party.




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Pick your favourite millionaire


Even allowing for under-valuation, many candidates are worth crores officially. P Sainath looks through election candidates' disclosures in Andhra Pradesh.




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Death of a carpenter


P Sainath.




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Sinking borewells, rising debt


P Sainath.




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When farmers die


Almost every sector failed the Andhra Pradesh farmer - the Government, the political class, intellectuals, planners, human rights groups, a once-activist judiciary and the media, says P Sainath.




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Chandrababu: Image and reality


On most indicators, Chandrababu Naidu ran the worst performing state in the south of India for nearly 10 years. Yet the more damage he did, the more his media standing grew, says P Sainath.




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Little panchayat, percentage raj


In Andhra Pradesh, the Naidu government's Janmabhoomi model of development gutted the panchayats and curbed local democracy. Hence, the panchayats have proved totally ineffective during the agrarian crisis, reports P Sainath.




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Anatomy of a health disaster


P Sainath.




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Dreaming of water, drowning in debt


Superstition, the occult, God, government and technology have all been pressed into service in Anantapur's desperate search for water. P Sainath continues his series on farmer suicides.




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The after-death industry


For many in Andhra Pradesh's agrarian crisis, even death is not the end of the trouble. Instead, it is the beginning of a new burden for the families of the survivors. P Sainath continues his series on farmer suicides in Andhra.




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Andhra farmers lose crores in insurance


The ongoing agrarian crisis has had a telling impact, causing the lapse of insurance policies of farmers. P Sainath reports.




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Renew lapsed farmers' insurance policies


Calls for the renewal of hundreds of thousands of lapsed insurance policies have begun, reports P Sainath.




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The cross and the crisis


P Sainath finds that the declining fortune and health of the religious establishment in Kerala's Wayanad region mirrors what is happening to the parishioners themselves.




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Hope dies slowly in Wayanad


Many plantations have shut down, throwing thousands out of work. The once-numerous Tamil migrant labourers are far fewer today, and out-migration of local labour is the new trend. P Sainath finds the off-screen agrarian crisis is very dramatic too, and has emptied the audiences for big screens in the region.




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Fewer jobs, more buses in Wayanad


It's no longer just landless labourers on the bus to Kutta. Many masons and carpenters are also crossing the border into Karnataka in search of work, spurred on by the collapse of employment in Wayanad. P Sainath continues his series on the agrarian crisis in Wayanad.




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So near to God, so far from Heaven


Church income has fallen sharply as the laity have gone into debt in Wayanad. But the larger reality is also more complex. While the church does reflect the pain of its farmer base, it is also, in some cases, a source of at least a few of the dues that worry them, notes P Sainath.




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Wayanad: Arrack as distress trade


Toddy is legal in Kerala, while arrack is banned. Also, while a litre of toddy costs Rs. 30, a sachet of arrack goes for Rs. 11. As the farm crisis sees thousands of migrants crossing over into Karnataka, arrack shops right on the border are booming. P Sainath continues his series on the agrarian crisis in Wayanad.




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Commerce and crisis hit students


Two processes have hit Wayanad. One is the policy-driven commercialisation of education. And the second is the collapse of Wayanad's economy. For the first time in decades in this education-proud state thousands of students are dropping out of college and school. P Sainath continues his series on the agrarian crisis in Wayanad.




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Coffee sails globally, sinks locally


This is coffee territory, yet you cannot get the local brew in any restaurant here. Drop in at the Coffee Board in Kalpetta to enquire why this is so - and they offer you a cup of tea. P Sainath continues his series on the agrarian crisis in Kerala's Wayanad region.




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The unbearable lightness of seeing


The elite wants a society geared to deal with rare disasters but shows no urgency at all when it comes to the destruction of the livelihoods of millions by policy and human agency. P Sainath turns our consciences towards Mumbai's demolitions of tens of thousands of the homes of slum-dwellers.




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Weddings on hold as prices crash


"It is time for my daughter to get married but where's the money? We ran a teashop for a long time. That folded as people had no more to spend." P Sainath finds that as the agrarian crisis has deepened in Wayanad, many people are now simply unable to afford weddings.