Friday, October 17, 2008

THE WAIVER


NEWS REPORT: CIVIL AVIATION MINISTER PRAFFUL PATEL MIFFED AT CABINET COLLEAGUES


Excerpts from an interview given by the civil aviation minister Shri Prafful Patel to a newspaper, "I am very disappointed with some central ministries and state governments for not lowering tax rates and jet fuel prices. Tomorrow if planes stop flying, who will be responsible?"

Cut to a scene in front of the residence of the minister, two days later.


There is a chaotic situation in front of the residence with a group of farmers trying to enter the residence and the entry to the residence of the 'People's Representative' being barred by extremely hostile security personnel, as usual. The news reaches the Head Quarters of a 24 hours news channel and immediately a posse of electronic media personnel reach the residence of the Hon'ble. Sensing that this could provide sufficient material for the news channels to broadcast throughout the day, and furthermore with the Lok Sabha elections around the corner,the support staff of the minister relents and permits the group of farmers to enter the residence. Apparently, facing the group of 50 farmers is easier than managing the negative fallout of the media coverage, or so the staff presume.


However the minister acquiesces to meet only the leader of the group. Eknath, the leader of the group is ushered into the study of the minister. The minister enters the room accompanied by his O.S.D (Officer on special duty) who is an IAS officer, on deputation to work with the minister.


After the initial exchange of pleasantries, the minister who does not appear very pleased at the sight of Eknath, who is wearing a simple shirt and trouser to go along with his down town sandals, asks "Yes Eknath, tell me about the purpose of your visit. But please tell me about yourself before you begin."


" I am the Pradhan of the village Dhulepur in the Yavatmal district of Maharashtra, which is in the Vidarbha region of the state", Eknath who looked no more than 30-35 years of age, began speaking.


The O.S.D was startled at the mention of the name of the village and whispered something into the ear of the minister, who looked keenly at Eknath.


"Accha, the same village which was put up for sale by its inhabitants and where farmers organised a protest by offering their kidneys for sale", The minister enquired.


"Yes sir", Eknath replied.


"Strange people, OK tell me, what brings you people to meet me?" the minister was curious.


" Because you are the last remaining hope we have", Ekanth replied.


"Come again! Hope !! My dear friend, I am the Civil aviation minister, not the Agriculture minister. It appears that you have come to the wrong address," the minister sounded pleased for getting free from these villagers so soon.


" No sir, I have come to the right place. It is you who we wanted to meet. And before you feel puzzled, let me tell you that we were impressed by the concern you showed for the well being of the aviation sector. Not many ministers are going to risk a confrontation with their colleagues in the manner you did, through your interview", Eknath clarified.


The minister as is their wont, was pleased at this appreciation, "Yes, yes, I said what I felt. After all Jet Airways had laid off 1900 employees in one day due to losses caused by faulty practices by the govt. towards this fledgling sector. I had to intervene on behalf of these people and get them reinstated. The aviation industry is being bled to death. They have sought for a bailout plan of Rs. 4700 crores and the govt. is dithering over this proposal. The aviation sector is like the new born baby which needs caring and caressing by its mother," the minister was emphatic in his statement.


The OSD as is their wont, nodded in deep appreciation. Eknath felt that he saw tears in the eye of the OSD after the minister finished speaking.


"Baby indeed, Mr. Minister, but what about the elders in the family? I want you to speak about the elders in the family too," Eknath spoke respectfully.


"Elders? What elders?", the minister was confused, "Arre, I was giving an example. You see this is how economists speak. They make you understand economics through lucid examples".


"I know sir, I am a post graduate in Economics from Delhi School of Economics. Incidentally my Ph.D is on 'Rural economics in Independent India', so I know a bit of economics," Eknath was one confident individual.


The O.S.D nearly fell from the chair on hearing Eknath's credentials.


The minister was also mighty impressed.


" So what are you doing there in the village ? " the minister enquired.


" Well, doing my bit for the country!" Eknath was quite clear about his priorities, "anyway sir, as you wanted to know about the elders in the family whom I want you to stand up for, let me tell you that I was referring to the Agriculture sector. I think you would agree that if Civil aviation is the baby then agriculture is the elder in the family. Isn't it your responsibility to protect the elders along with the babies ? Agreed that we should be worried about 1900 employees losing their jobs, but shouldn't we also be worried about more than 1100 farmers committing suicide in the Vidarbha region, this year alone? Aren't lives equally important?"


"But the Finance Minister has provide waivers for the agriculture sector in this years budget. The govt. is equally concerned about the farming sector, my friend. You needn't worry!" the O.S.D put in his bit.


"Needn't worry!!! Sir do you realize that thousands of farmers are taking their own lives not only in Vidarbha, but places like Anantpur in Andhra Pradesh and many other parts of the country", Eknath countered.


" But the Finance minister has provided waivers, hasn't he?", the O.S.D countered.


"The loan waivers offered by the Finance Minister were a sham !" Eknath retaliated.


" Sham! You know what you are talking about, young man?" The minister retorted.


" I do Sir, and I will tell you how", Eknath continued, "the Finance minister sanctioned loan waivers for the farmers who had taken loan from banks and who were having a land holding of more than two hectares ."


" So what else do you want? You want the govt. to write off all the loans taken by farmers irrespective of their assets . Why do farmers only whine and make no efforts to improve their lot?", the O.S.D was being cheeky.


This infuriated Eknath, but years spent in the rural country side had taught him to patient with this govt.machinery. Their indifference and apathy towards the agriculture sector had led it to ruin. After all hadn't the C.M of Maharashtra, Vilas Rao Deshmukh at a public meeting in Vidarbha called the farmers 'lazy', thereby insinuating that they were to themselves to be blamed for their misfortune. So Eknath understood that this 'farmers not working' bit was a bureaucratic mindset. These bureaucrats after their initial 'training' schedule in the villages, which was compulsory, abhorred the sight of the villages.


" Why do people like Naresh Goyal and Vijay Mallya whine and not do something about their business ventures? Why does the govt. sneeze when these individuals catch cold?" Ekanath returned the favour.


The O.S.D was flabbergasted. "How dare you! What do you mean? You mean...." the O.S.D was incoherent. He had not expected this riposte from Eknath.


" I mean what I say. You politicians are so worried about the failure of a 'bad' business model that you are willing to invest 'public money' collected in the form of taxes from the common people to bail out industrialists. Just a few months back you were going gaga over the success of the Civil aviation sector. What happened in the interim, sir? And by the way did these Hon'bles share their profits with the public when they were making money?If not, why should the public money be used to bail them out?" Eknath queried.


"But didn't they provide cheap tickets @Rs500, so that the common people could travel by airways?" the minister was back at his populist best.


"That was simply bad policies sir. And by the way did the common man plead before them for air travel. You as well as I know that these measures were taken to entice a new generation of travellers to air travel, so that people could get hooked up and not mind paying up Rs. 10,000 for the next round of travel. Now when the policy has backfired, the Govt wants to bail them out. Will you now bail out the street corner grocer if he starts doling out freebies to his consumer and then his business collapses? For nearly two decades the theory of 'free businees' without any govt. control was flouted, and unbridled consumerism encouraged. Now suddenly we get back to 'Socialism being best for the country', do we? " Eknath was now flowing like the monsoon river in spate, " the Hon'ble Vijay Mallya has brought a Formula 1 Racing team, took over Deccan Airways, is on the verge of buying an English Football club, got into a spree of buying air crafts and what not, but now needs the common man's money to finance his extravagances. Is this not a joke?"


"But haven't the farmers been provided the loan waivers? Shouldn't you be content?" the minister tried to change track.


" So let me now tell you about the sham which I was earlier referring to. The Finance Minister announced farm loan waivers for farmers with land holdings of more than 2 hectares, whereas an average land holding size in Vidarbha is 3.03 acres or 7.5 hectares. 50% of the farmers own land which is larger than which applies for the waiver. There are Adivasis who own around 10 hectares of land. But the ground reality is that most of the land is unproductive and unirrigated. For those with over two hectares, there is the old deal of 'one-time settlement' of their bank loans. In this case, if they repay 75 per cent of the loan, they will be given a rebate of 25 per cent. Only very large farmers will gain from this. If the farmers could pay 75 per cent of their dues, they wouldn't be committing suicide. Furthermore those farmers who fall within the two-hectare limit, only a small group has access to bank credit. Factually the private money lenders rule the roost and there is no respite for the farmers from these blood suckers" Eknath emphasised.


The O.S.D felt a certain dryness in throat. He prayed that the minister would not ask him to counter this heavy duty stuff, for he had no idea as regards to this. This Eknath nuisance had to be gotten rid off, and gotten rid fast.


But there was no way Eknath could be stopped," And Mr.Minister what I am stating is from the govt. records and can be corroborated from there. The waiver will simply benefit farmers in Western Maharashtra i.e the sugarcane belt which belongs to the agriculture minister. So while Vidarbha and Anatpur burn, you send the fire brigade to fill a swimming pool. ingenious isn't it?"


The minister had by now lost patience with this young man," So you want the govt. to pardon all the bad debt of the agriculture sector,don't you. Farmers will take loan and then not pay back, isn't it? And we suppose we close down all other industries?" the minister now resorted to sarcasm.


" Sir how long will you people keep on playing industry against agriculture? Can both of them not be partners in progress? The development of any economy cannot be predicated on any one sector. Both swim or sink together. Let me remind you that the development of the country has its genesis in the First Green revolution. The rural sector gradually developed and subsequently the industry and the manufacturing sector reaped its benefits some time later on. You cannot sell anything if the consumer does not have the power to buy it. Isn't it? And let me remind you that the nationalised banks 'write off'' bad debts to the tune of thousands of crores every year. And incidentally most of this debt is owned by industrialists who are pretty awesome names and a regular on the political circuit. Do I need to remind you that bad debt to the tune of 60 crores was written of for a Ketan Parikh company, sometime in 2004. But when it comes to farmers it becomes 'bad debt'!!"


Eknath could not be stopped. The common man was fighting back," Sir the govt. provides around Rs. 50 worth subsidy on an LPG cylinder and acts as if it is doing the consumers a favour, but then on the other hand you people call for reduction of taxes on ATF without a care in the world. Why are corporate interests flouted as public interests? Yesterday I heard the owner of a travel company on TV referring to the fact that if the airlines stop functioning some body's sick mother will not be able to be taken for treatment of Cancer to the TATA memorial Hospital in Mumbai."


"He was right , wasn't he?" the O.S.D retorted.


"Mr. OSD, if you wish you could accompany me to any primary health centre in the country and locate one doctor who is on duty for more than two days in a week, for a few hours at the most. Do you even know or think of this fact . And how many people in this country can afford air travel, even if for the sake of argument, however flawed, that tickets will be available at Rs. 500 with govt assistance. Get real Sir!" Eknath spoke.


The minister and his lackey were by now exasperated, so what do you want?" the minister said.


" Nothing, now my suspicion is confirmed When you people never felt any pain when we villagers offered our villages or kidenys for sale to highlight our grievances, what can you do anyway? You people cannot or are not willing to do anything for the common masses of the country who toil away honestly, at whatever they do. Expecting you people to show concern and act accordingly, is like asking an Eskimo to sell air conditioners. The only hope is for the people to stand up for themselves. Looking in askance towards the govt.will not suffice. But that will also take some doing since they have been alienated from each other in the name of caste, religion, industry, farmer,rural, urban. But people like me will keep working till that happens and happen it definitely will !!" Eknath was patience personified.


Just then the OSD's cellphone rang, " Ji Mallya sahab, yes we are on the way. I know your personal aircraft is waiting for us. So sorry to keep you waiting. You see, there has been a needless delay......"


Ekanth by then was on his way back, Sprite as ever, head held high.

NIRBAL KI LADAI BALWAN SE, YE KAHANI HAI DIYE KI AUR TOOFAN KI (This is a fight between the weak and the mighty, this is a story of the lamp and the storm)

Disclaimer: This discussion never took place and is a work of fiction . But then again, this discussion is taking place in the hearts of millions of Indians or so I feel.

Note: The post is inspired by the tremendous work of Shri P.Sainath of the newspaper THE HINDU, who is fighting a lonely battle (amongst the media) for the agricultural sector. My salutations.

10 comments:

Anonymous said...

Economics is a tough subject and managing an economy is even tougher.
We all were going ga ga over the benefits of free market economy few months ago and all of sudden we are talking of Controlled Capitalism(CC).My leftist friends are having the last laugh.We told you so is writ largely on their faces.They are also saying that but for us the Govt would have made the rupee fully convertible,but for us the govt would have opened the the insurance sector,but for us...
Lal Salam dear comrades!The country will never forget your contributions!
Back to agricultural economics.In 1986 (when I started visiting my village)the price of Wheat was about Rs 4 per kg.Twenty years down the line it is selling about Rs 8-9 per kg ie;about double.But the input costs like fertilizers,diesel etc have increased many times more.To brek-even the farmer should get at least Rs 20 per kg.And to make some decent profit(so that he may spend on his childrens education or to afford some middle class luxuries etc)he should get at least Rs 25 per kg.Same is the case with other agricultural produce(but for perhaps sugarcane).So what the govt does(be it cong or bjp or bsp or sp or any other p or my dear comrades);they let the farmers suffer because they do not want to antagonise the erudite middle class.
But then who cares?

Unknown said...

I am too zonked by what you wrote, will comment once I can digest the seriousness of the issue... Keep going Mr. Tongue-In-Cheek!!!

Bobby said...

I do not think that Communism is the answer to the economic ills plaguing the country in particular and the world in General. The New York stock exchange faced a horrendous crisis in 1987-88 but then the next few years saw a remarkable recovery and boom in the American economy. Same was the case in the South East Asian crisis in 1998-99. Whereas the Soviet Union could not cope up subsequent to Perestroika and Glasnost and disintegrated. Even the torch bearer of Communism i.e China has prospered because it has adopted the free market economy. Somehow a democratic, free economy seems to have greater resilience.
The crisis has developed (my personal opinion) because free market economy has somehow been equated with unbridled greed i.e. consumerism. I was reading somewhere that an American bank develops a credit of 8$ for a deposit of every 1$ by an individual. The chickens are now coming home to roost.
As regards the farmers suffering becuse of the middle classes, my point is that what are govts. for? Why is callousness and indifference of numerous govts. passed of as an electoral compulsions? If the good of a vast majority antagonises anybody (although am not sure how in this instant case), TOO BAD FOR THEM!!That is what govt. are for, aren't they? Pardon me if I look too simplistic, but then at times complex problems have simple solutions , provided you search for them. Let us get on with governance, for heavens sake!!
Latest reports suggest that the two mega airlines (Jet and Kingfisher) are defaulting on payments to the Oil industry,which in turn is being denied credit by the nationalised banks. Great isn't it? The best part is that the worthies in the media (or at least the electronic ones) are silent. But a hue and cry is raised and the Oil majors are said to be bleeding because of subsidy to the LPG gas. Why this Corporate interest equated with national interest??
If these multinational corporates follow imprudent corporate and management practices, shouldn't they face the consequences also ?
I was also wondering about this practice of playing of one sector against the other by these politicians ,e.g. Nano vs. Agriculture, etc. Lal Bahadur Shastri coined the term JAI JAWAN, JAI KISAN. Any politician worth his salt,in this era would have preferred JAWAN vs. KISAN.
What say friends?

Anonymous said...

Communism reportedly failed in 1989 with the disintegration of U.S.S.R and Capitalism is on ventilator in 2008.Sad but true,nothing is permanent in this world-but for change.
Consumerism is the oxygen of capitalism.That is why we have a world today which is living on credit cards.A saying in hindi best defines it "Jab tak jio sukh se jio,karja le kar ghi pio".
I will give an example-In U.S.A. the housing loans are not given on the paying capacity of the individual(like in India) but on the basis of value of the property.If I am entitled of X amount of loan this year based on the value of property today.I will be furher entitled of loan to the tune of 5X if the value of property increases say by 5 times.Now what happens if the real estate market goes for free fall.Results are for all to see.Banks after bank going bankrupt and the ripple effect felt throughout the world.
Imagine the scenario if the same policies were adopted in India.
Thanks dear comrades for forcing the Govt of the day for not going the uncontrolled way as the Americans.If we are slightly better off in this moment of crisis it is only because of your efforts.The history will salute you!
And yes, if Communism is not the panacea of all the ills plaguing the world;then so is Capitalism.That is why the world and the economists have started talking of Controlled Capitalism(CC).Which to me (as I am not an economist)is perhaps a new word coined for Mixed Economy.
Pandit Nehru introduced this model in India.
True,China prospered because of free market economy but then it is certainly not democratic.The development of China is as lopsided as India.The prosperous China is situated on the coastline.
Coming to the plight of farmers,when wheat started selling at Rs 12 per kg in the market by the reatilers ,infation crossed 12%
and the panic button was pressed by the Govt.Imagine if wheat was selling at Rs25/30 today!Also imagine the plight of millions of tobacco farmers if Ramdoss succeeds in making India a tobacco
free country.Agreed ,tobacco is not good for health but if we don't smoke/chew, not only millions of tobacco farmers but also the other millions whose livelihood depends on selling Cig/Paan/Gutkas etc will suffer.
This is the paradox which any govt in a vast populous country like ours has to face and deal.
A tough job indeed.You please one the other will suffer.

Bobby said...

Lee Iacocca writes in his autobiography about the fact that his father not allowing him to buy anything on credit, a principle which he followed even after he became an icon at Ford Motors and legendary when he revitalised a failing Chrysler corporation. The basic premise is that you do not buy anything unless you have the pocket for it. But try telling that to any of the 'ambitious' 'forward' 'planning for the future' individual of the day. Remain assured to be laughed out of the society. But then a credit economy deserves its desserts.
But then free market economy also provides an incentive for entreprenurship, dynamism and vision and certainly cannot be clubbed with the 'greed' economy, which is fuelled by those very people who fuelled complete state control in communism,i.e.the individuals with vested interests.The other side of the free economy is the license-quota raj which provides no incentive for entreprenurship and hard work. Although the incentives for the politician and the bureaucrat remained huge.
Since Communists are being credited with saving India from disaster, which anyway is debatable, but will be discussed at a different forum some other time,maybe we could be enlightened about the reforms in the Indian economy which were pushed through by our comrades. For instance, the reforms pushed through and implemented in the agricultural sector. Weren't they the ones selling away agricultural land in Singur?
It appears that our comrades are good at maintaining ststus quo only. But then again to each, his own.
Coming back to credit cards, interestingly, the much touted Kisan credit cards have no credit left and the banks are not giving any credit on this account.
Sign of the times,is it?

Unknown said...

Claim of the governments to care for the middle class is bogus. The great Indian middle class does not have the power to influence the policies of the government.The same middle class pays Rs. 25 for a kg of Daliya (made of wheat)but will cry hoarse if the wheat becomes Rs.25/ kg. Further after sometime the middle class accepts the price rise as a way and fact of life and gets on with life.
The middle class and the agri sector (kisan) have never been the priority of the ruling class whether left or right,though they talk about them only.
Example: Our beloved behenji's dream project is to construct an expressway on the banks of Ganga from ballia to Noida. According to her it will help the progress of the state by making the time to reach delhi shorter. The land to be used for this project is a large part of the fertile land available in our state. As far as I know, there are no factories beyond varanasi upto ballia in our state. The only thing people of ballia, ghazipur etc. have to market is the agricultural produce. If the land is used by the road, what these people will be offering to the market of delhi is anybody's guess. The people of this region will have to pay more than Rs 50 for a kg of wheat. The people may survive for a while ,till the compensation amount lasts. After that those dependent on agriculture for livelihood will catch a an air conditioned bus and reach delhi in eight hours to look for work as casual labour and living in a slum.
P.S. She talks of the upliftment of downtrodden.

Bobby said...

Well she does live up to her promise of upliftment of the downtrodden. After all the poor get to go to Delhi, in air conditioned bus and live their life. How ? well behenji cannot be expected to look after everything!!
And who says that U.P is lacking in industry?Isn't it the biggest manufcturer's of Netas? They are omnipresent.
On a more serious note, this country needs a second green revolution.Agriculture has been a much a neglected sector and needs investment, research, nurturing.And this needs to be done fast. Development in the truest sense cannot leave the rural sector behind.It will only lead to resentment,resistance from the masses which in turn becomes the breeding ground forissues like naxalism, migration towards the cities leading to their collapse. It is a vicious circle,you see!

Anonymous said...

There is nothing wrong in construction of highways.It is part of infrastructure development.The NDA govt was praised for Quadrangular Roadway Project.All of which was not developed on barren lands.Millions of acres of cultivable land was acquired for the purpose.
Farmers will get more value for their produce ,only if they are well connected by road/railway/riverway to the markets.So their should not be any objection to Mayawati's Ganga highway project.

Unknown said...

We are going through very strange times, or so I feel. Somehow development appears to have become the opposite of agriculture, as you cannot speak of the two together.See! roads, factories etc. which really are required for development are in conflict with agricultural land . Nobody can say for sure as to what needs to be done. But I do agreee that leaving agriculture behind while your GDP grows at 8-9% is going to be a hollow development leading to future problems only. Incidentally, both the jawan and kisan of Lal Bahadur Shstri are aggrieved in this age. Witness the protests of the armed forces against the sixth pay commission and the pain of the farmer.
Sign of the times indeed!

Bobby said...

Rs. 2629 crores of outstanding amount due tooil companies on account of both the major airways can now be paid in easy instalments,as per the decision of the govt. Wow! Maybe now the farmer in Vidarbha can travel to Mumbai on a 500 Rs. ticket, empty stomach of course. The money for the ticket will be courtsey the money lender.Who says that we don't care!