The Jute Farm politics
By: Amit Bhushan Date: 21st Oct. 2014
Jute - once the golden fibre in its decline is symptomatic of the decline of Indian economy as well as decline in its political thoughts. We have a legion of leaders who have put up 'heroic' struggle in 'name' of jute farmers and jute mill workers. The commercial journos have wasted tonnes of ink to sing praises of these 'leaders' and the issues of 'utmost importance' raised by them about the life as well as indebtedness of farmers as well as mill owners. Novel schemes have been worked out by government in order to sustain the demand of jute in market along with roping in several 'stars' to promote Jute and its use.
The main issue of farmers as well as mill workers could have probably solved very easily if the government encouraged the Jute Farmers to grow Animal Feeds and encouraged Milk production/processing in the Milk scarce state. (By the way, Bengal still remains Milk scarce and has to get its Milk from other neighboring states). This would have probably required more labour or about equal labour as required to grow Jute and the Milk processing units as well as Chiller units could have employed Jute mill workers with some amount of re-skilling. It may not have suited Jute mill owner though, who were politically powerful elite. The country was told that the situation of the farmer would be very grim if he does not produce 'Jute', and nothing could have been more blatant even then. The banks would have been more conducive to lend to the units which have a more stable demand then the industry which is totally dependent on government doles, provided they had a choice in the matter.
So, the golden fibre in its decline was initially stocked in anticipation of price rise and later when the 'rise' didn't materialized then was pushed to government coffers for stocking (at prices prevailing in its golden era). Later, the government was forced to come up with schemes to encourage domestic consumption of Jute products to keep the 'mill workers' happy (everyone now understands whom this actually made happy). And subsequently bargain was made to keep supporting Jute farmers so that the Jute economy prospers. Needless to say that the scheme, is a hole in the pocket of taxpayers as well as hapless customers. However, the country as well as the state has persisted with continuation of the scheme even with changes in political parties ruling the state and the country. It may be noted that this was despite India facing chronic deficits in other Agricultural products including cereals in the period. Instead of a shift to Milk or Vegetables/Fruits or spices which may be more viable and for which some Research and support might be needed, we continue to remain invested in economics of Jute. The status remains so even with 'regime changes' in state as well as center, where some of the most brilliant strategists from Chai shopfloor to the best economics and business schools in the world, are holding fort. The government with supposedly superb ideology is captivated by its own business friendly image and is persisting with measures to support the Jute business and the media is gung-ho about the economic Renaissance in India, with no efforts to question the art of possible that is now called 'reforms'.
What we are witness to, is probably corporate driven reforms with the announcements such as liquid fuels being left to market mechanism while gas fuels are subject to 'play' along side rulers rather than some JPC and solid fuels auctioned off in all probability to the 'same corporates'. What is being questioned here is if there is a comprehensive gameplan and transparent to favour people or just a set of tactical measures of reforms which would come back to haunt in times of trouble since a number of possibilities with high probabilities may be left out. The Jute policy is cited as a measure basis which such questions arise and is symptomatic of the level of decline in rational thinking in politics.
By: Amit Bhushan Date: 21st Oct. 2014
Jute - once the golden fibre in its decline is symptomatic of the decline of Indian economy as well as decline in its political thoughts. We have a legion of leaders who have put up 'heroic' struggle in 'name' of jute farmers and jute mill workers. The commercial journos have wasted tonnes of ink to sing praises of these 'leaders' and the issues of 'utmost importance' raised by them about the life as well as indebtedness of farmers as well as mill owners. Novel schemes have been worked out by government in order to sustain the demand of jute in market along with roping in several 'stars' to promote Jute and its use.
The main issue of farmers as well as mill workers could have probably solved very easily if the government encouraged the Jute Farmers to grow Animal Feeds and encouraged Milk production/processing in the Milk scarce state. (By the way, Bengal still remains Milk scarce and has to get its Milk from other neighboring states). This would have probably required more labour or about equal labour as required to grow Jute and the Milk processing units as well as Chiller units could have employed Jute mill workers with some amount of re-skilling. It may not have suited Jute mill owner though, who were politically powerful elite. The country was told that the situation of the farmer would be very grim if he does not produce 'Jute', and nothing could have been more blatant even then. The banks would have been more conducive to lend to the units which have a more stable demand then the industry which is totally dependent on government doles, provided they had a choice in the matter.
So, the golden fibre in its decline was initially stocked in anticipation of price rise and later when the 'rise' didn't materialized then was pushed to government coffers for stocking (at prices prevailing in its golden era). Later, the government was forced to come up with schemes to encourage domestic consumption of Jute products to keep the 'mill workers' happy (everyone now understands whom this actually made happy). And subsequently bargain was made to keep supporting Jute farmers so that the Jute economy prospers. Needless to say that the scheme, is a hole in the pocket of taxpayers as well as hapless customers. However, the country as well as the state has persisted with continuation of the scheme even with changes in political parties ruling the state and the country. It may be noted that this was despite India facing chronic deficits in other Agricultural products including cereals in the period. Instead of a shift to Milk or Vegetables/Fruits or spices which may be more viable and for which some Research and support might be needed, we continue to remain invested in economics of Jute. The status remains so even with 'regime changes' in state as well as center, where some of the most brilliant strategists from Chai shopfloor to the best economics and business schools in the world, are holding fort. The government with supposedly superb ideology is captivated by its own business friendly image and is persisting with measures to support the Jute business and the media is gung-ho about the economic Renaissance in India, with no efforts to question the art of possible that is now called 'reforms'.
What we are witness to, is probably corporate driven reforms with the announcements such as liquid fuels being left to market mechanism while gas fuels are subject to 'play' along side rulers rather than some JPC and solid fuels auctioned off in all probability to the 'same corporates'. What is being questioned here is if there is a comprehensive gameplan and transparent to favour people or just a set of tactical measures of reforms which would come back to haunt in times of trouble since a number of possibilities with high probabilities may be left out. The Jute policy is cited as a measure basis which such questions arise and is symptomatic of the level of decline in rational thinking in politics.