Governance Today - July 2015 by Governance Today

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JULY 2015

VOL. - 01

ISSUE - 10

What Ails India’s Agriculture

15 0 T2 I M RH M U SGA P65 S XT ATTI GEE A N N- CHH VER E G CO

June 2015

Governance Today

Editor-in-Chief Ajit Sinha Editor Anand Mishra Senior Copy Editor Ramesh K Raja Correspondent Ritika Bisht, Sagarika Ranjan Guest Writers & Contributors Praveen Raman, Vinit Goenka, Divya Menon Graphic Designer Girdhar Chandra Fuloria, Sarvesh Dixit Web Architect Farhan Khan CORPORATE OFFICE Strategy Head Ajay Kumar VP Sales Gautam Navin VP Strategic Alliance & Branding Salil Dhar SALES & MARKETING (CORP) Anupam Gupta, Shubham Gupta, Anjana Yadav sales@governancetoday.co.in I 07840086703 GOVERNMENT ALLIANCE Vaibhav Jaiswal I 07840086705 ADVERTISEMENT Stuti Bhushan I 09999371606 Karamjeet Singh ACCOUNTS EXECUTIVE Yogesh Chikara FOR SUBSCRIPTION CONTACT subscription@governancetoday.co.in ADVISORY BOARD Terry Culver Associate Dean, SIPA, University of Columbia Vinit Goenka National Co-Convener, IT Cell, BJP Amod Kanth General Secretary Prayas JAC Society Pratap Mohanty Former Dy Educational Advisor, MHRD, GOI Ranjit Walia, Managing Counsel Walia & Co. Published By Ajit Kumar Sinha 713, 3BA - Tower No. -4, River Height, Raj Nagar Extn - Ghaziabad Uttar Pradesh-201003 Printed & Published by Ajit Kumar Sinha on behalf of Odyssey Infomedia Pvt. Ltd. Printed at Rama Offset Printers A-43, Sector - 10, Noida - 201301, UP Editor-In-Chief: Ajit Kumar Sinha @ All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic, and mechanical, including photocopy. Or any information storage or retrieval system, without publisher’s permission

WHAT AILS INDIA’S AGRICULTURE? The complexity of the Indian agricultural economy can bewilder any observer. And not just because of the agri-climate zones or the types of crops, but also because it suffers from problems that are neither easily visible nor easily comprehensible or solvable. Despite being the country with the second largest agricultural land in the world, hardly two fifth or forty per cent of the agricultural land is irrigated. Also, even though the country boasts of being the highest producer of many major agro commodities in the world, it suffers from low productivity. As for the strength of the farming community, it is inconceivable that any political party can form government or even find representation in parliament without making significant inroads in the agrarian population. All political parties make over the top attempt to show themselves as the biggest supporter of farmers’ cause. And yet, year after year, farmers in different parts of the country are forced to commit suicide crop failure or inability to repay the loans, large scale loan waiver programs of governments notwithstanding. The granaries are overflowing with food stocks and huge stocks are lost to rain or rodents every year, but minimum support prices are still raised liberally and even more food grain is procured. And of course, the government cannot distribute food to poor for free, regardless of the Supreme Court strictures. Confused? You are not alone; hardly anyone has a complete handle over the great game of the Indian agricultural economy.

“FLAGSHIP INITIATIVES BEING PROMOTED BY THE GOVERNMENT OF INDIA CREATE INTERESTING ROOM FOR COOPERATION”

FOOD INFLATION: CAUSES AND SOLUTIONS

Dr. João Cravinho Ambassador of the European Union to India

INNOVATIVE METHODS REQUIRED TO DEAL WITH DEFICIENT MONSOON 26

POOR TECHNOLOGY TRANSLATES INTO LOW YIELD SOILED SOILS ‘N’ ADULTERATED ROOTS

58 30

NPA FARMS OF INDIA

42 58

“TIME TO UPSKILL PRIVATE SECURITY GUARDS”

Mahesh Sharma Secretary General Central Association of Private Security Industry

36 39 46

GEN-NEXT SUMMIT 2015 SHOWCASES NAYA RAIPUR AS IT/ITES HUB

55 60

63 73

INCREASING MSP NOT ALWAYS DESIRABLE GENETIC GAMES ON INDIAN PLAINS COMPENSATIONS TO FARMERS WATER POLLUTION IN INDIA: SEEN BUT NOT HEARD ARE WE THINKING ENOUGH FOR WOMEN COMMUTERS FOOD SAFETY: LOOKING BEYOND MAGGI CONUNDRUM DEFT STRATEGIC MOVES GRADES, MARKS AND THE GREAT INDIAN EDUCATION SYSTEM POWERING WITH CARE VANISHING EXPRESSIONS

Editorial

Krishi Channel: Necessary but not sufficient THE GOVERNMENT of India has recently launched the 24/7 Krishi Channel of Doordarshan to provide agriculture related information and knowhow to farmers. Good for farmers. However, the novel move was lost in the boisterous noise created by more political and TRP grabbing issues such as ‘Vyapam Scam’ and ‘Lalitgate’. But it is necessary to pause for a moment and think about the status of the two-third population of the country, which is toiling out in farmland to eke out two square meals a day. Many of us grew with Krishi Darshan show, which runs daily on the national television. The program provides useful information about which seeds to use, how to irrigate the land, how to take care of crops, which fertilizer or pesticides to use and how to benefit from various government programs for farmers. The moot question, however, is what impact this or any other such shows have had on the agriculture of the country. May be a little, for those lucky few who had electricity supply in their villages and who were rich enough to afford television. But for most, none of this made any sense. Why is India’s agriculture in such a pathetic state? Many even refuse to believe that agrarian India has a problem, citing record production, rising exports and generous hikes in minimum support prices. But then, why are farmers committing suicide? Why are they selling their children to stay alive? At once, agriculture is an economic and well as human and social issue in India. The broad fact is that government has bungled big time in managing agriculture and farm related polices for decades. Beyond Green Revolution, it has not delivered anything on ground by way of policies, assistance or infrastructure. If anything, it has imposed the market inefficiency through APMC Act. To show, the governments for decades has had loan waiver schemes and hikes in minimum support prices. However, it is an open secret that both of these are tools, not for improving the lives of farmers, but to beguile them to vote for the powers of the day. As for food management, the procurement of foodgrains is the handy tool to crow about, so what if the bloated foodstock is being eaten away by rats and rotting by rain because there is no place to store them. Illiteracy, poor health and lack of support has been the bane of Indian farmer. When world has moved beyond mechanization to think in terms of organic and sustainable farming with minimal resource requirement, Indian farmer is still looking at sky for rain and rickety animals to plough the land. Seed quality is a dream and technical knowhow unheard of, even though there are officials appointed for the job. The immediate intervention at human level is the immediate need besides physical infrastructure development in form of irrigation systems and market development. Majority of farmers are not capable to even watch TV and learn from it the methods of farming. They have to be reached on their farm and be taught there. The government officials need to fan out to farm to hear the farmer’s problem in his language and teach him in his own language. That would make a difference. The Krishi Channel is a necessary but not sufficient move. It has to be backed by enough foot on ground where action is. The idea of “Labs to Land” would be real game changer if the research can actually percolate to the ground and the technical people interact with the farmers to provide knowhow. The Gen Next Summit organized by Governance Today in Raipur was a big success. Inaugurated by Honourable Chief Minister of Chhattisgarh, the Summit was attended by the bigwigs of government, bureaucracy, industry and media. We thank all of you for your support and encouragement for the events. Best regards

Ajit Sinha Editor-in-Chief

July 2015

Governance Today 7

Thus They Spoke I do worry that we are slowly slipping into the kind of problems that we had in the thirties in attempts to activate growth. And, I think it’s a problem for the world. It’s not just a problem for the industrial countries or emerging markets, now it’s a broader game. Raghuram Rajan Governor, Reserve Bank of India

In Haryana, a village Sarpanch initiated a #Sel eWithDaughter initiative… I urge all of you, share sel es with your daughters with the hashtag #Sel eWithDaughter. Also share a tagline that will encourage Beti Bachao Beti Padhao. Narendra Modi Prime Minister At the present point of time, the forces that can crush democracy, notwithstanding the constitutional and legal safeguards, are stronger. Lal Krishna Advani BJP Leader

Till I am here jungle raj can never come. I had established rule of law and this will continue to prevail. Only that party should form government in the state which can work for its progress. Nitish Kumar Chief Minister, Bihar

Broadly speaking, there is similarity when it comes to the policies of the UPA as well as the NDA. The difference I see is the remarkable focus on urgency, governance and execution by the present government. Gautam Adani Chairman, Adani Group

I have invited all the people related to FTII to come together to restore the old glory. There’s an abundance of talent in FTII, but somehow the old charm has been lost. We need to strive forward to make it the most prestigious institution. Gajendra Chauhan Chairman, Film and Television Institute of India (FTII) 8

Governance Today

July 2015

Governance Watch

India Scripts History on International Yoga Day India created two world records on International Yoga Day with the yoga performance at Rajpath led by Prime Minister Narendra Modi. The rst record for largest yoga class, with 35,985 people, and the second for most nationalities participating in a single yoga event, which is 84. Of cials of various ministries, schoolchildren, NCC cadets, Army personnel and of cials were among thousands who performed yogasan at the mega event. Celebrations were held in the national capital after the United Nations had in December last year declared June 21 as International Yoga Day, with 177 countries voting in favour of the resolution. The proposal had been mooted by the Prime Minister during his rst address to the United Nations General Assembly in September last year. The Rajpath event broke the earlier record set on November 19, 2005, when 29,973 students from 362 schools had performed a sequence of ‘yogic kriyas’ for surya namaskar simultaneously for 18 minutes led by Vivekananda Kendra at Jiwaji University Gwalior.

Three Flagship Schemes for Urban Revamp Launched Aimed at changing the face of urban India, Prime Minister Narendra Modi recently launched three government’s agship schemes - Pradhan Mantri Awas Yojana (PMAY), Smart Cities Mission and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) - with an investment amounting to Rs 4 lakh crore spread over 7-8 years. As part of the three missions, the government will look to create two crore houses by 2022 by providing a central grant of Rs 1 lakh to Rs 2.3 lakh per house by way of a 6.5 per cent interest subvention scheme; look to create 100 smart cities through a Rs 48,000 crore initiative; and push for urban infrastructure upgrade for 500 cities in a Rs 50,000 crore scheme. The scheme was launched in the presence of municipal commissioners, mayors and state government ministers and of cials from across India. Modi spent considerable time exhorting local body of cers to think of innovative ways in order to push the programmes and said that while the central government will provide hand-holding and funding, much would depend on them for execution.

Govt Proposes Tax Sops for Card Payments In a draft paper for moving towards cashless economy and reduce tax avoidance, the government recently proposed income tax bene ts for people making payments through credit or debit cards and doing away with transaction charges on purchase of petrol, gas and rail tickets with plastic money. The government also proposed to make it mandatory to settle high value transactions of more than Rs 1 lakh through electronic mode. In order to incentivize shopkeepers, the government has proposed tax rebate to them provided they accept a signi cant value of sales through debit or credit cards. The proposals are aimed at building a transactions history of an individual to enable improved credit access and nancial inclusion, reduce tax avoidance and check counterfeiting of currency. At present, banks report the aggregate of all the payments made by a credit card holder as one transaction if the amount is Rs 2 lakh in a year, a ceiling that could be increased to Rs 5 lakh or more, according to the paper. Finance Minister Arun Jaitley had announced the government’s intent to encourage cashless transactions in his budget speech.

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Governance Today 9

Governance Watch

Countrywide Alert on Milk, Water and Edible Oil Packs The Food Safety and Standards Authority of India (FSSAI) has asked all states to keep a strict watch on milk, packaged drinking water and edible oils – sounding a countrywide alert on adulteration of food commodities. As per reports, the central food regulator asked all food safety commissioners to “increase surveillance activities” with a special focus on these packaged products. The food commissioners have also been asked to collect more samples of these products and send them for comprehensive testing. Several packaged food products including instant noodles, pasta and macaroni have already come under stringent scrutiny of the FSSAI in the recent past. While the regulator ordered countrywide recall and withdrawal of all nine variants of Nestle’s Maggi instant noodles on nding added monosodium glutamate (MSG) and excess of lead than the prescribed limit, letters were also sent to companies like Kellogg’s and Heinz asking them to explain labeling etc. Recently, the UP food safety regulator had raised an alarm on allegedly nding detergent in samples of milk produced by Mother Dairy.

Universal Account Number Mandatory for All Employers The Employee Provident Fund Organisation (EPFO) has noti ed recently an order to make Universal Account Number (UAN) mandatory for all employers covered under the Employees Provident Funds and Miscellaneous Provisions Act 1952. The government was considering the proposal to make UAN mandatory for availing bene ts of the scheme. The UAN facility was launched by Prime Minister Narendra Modi in October last year. According to reports, the deadline for completing the formalities is August 25 after which, action will be taken by the Employees Provident Funds Scheme, 1952, and other applicable laws for failure to comply with the order. The UAN remains portable throughout the lifetime of an employee and they don’t have to apply for PF transfer claims while changing jobs. It is even more bene cial for workers in the construction sector, who often change their contractor after short spans of time, nish contracts and take up new jobs. EPFO had issued over four crore UANs to employers across the country in July last year.

Forecast System SAFAR launched Union Minister for Science and Technology and Earth Sciences Dr Harsh Vardhan recently launched SAFAR-Mumbai, a monitoring and forecast system conceived to provide three days weather information with health advisories, levels of UV radiation and pollution among others. System of Air Quality & weather Forecasting and Research (SAFAR) has been developed by Indian Institute of Tropical Meteorology, Pune, in association with Regional Meteorological Center MumbaiIMD, and the Municipal Corporation of Greater Mumbai (MCGM). Vardhan praised the Met department whose weather forecasts for farmers and shermen, he said, have contributed towards the economic development of the country to the tune of Rs 32,000 crore. Maharashtra Chief Minister Devendra Fadnavis, who was also present on the occasion, said SAFAR was a responsibility given to the state by the Centre, which it needed to ful l. SAFAR-Mumbai will deliver services, by translating technical data into information. 10

Governance Today

July 2015

Governance Watch

India Lends Support to Multi-stakeholder Model of Internet Taking a stand on internet governance issues at a global platform, Union Communications and Information Technology Minister Ravi Shankar Prasad nally announced India’s support for the multistakeholder model of Internet governance. Prasad made this announcement during the opening ceremony of the Internet Corporation for Assigned Names and Numbers (ICANN)’s 53rd public meeting in Buenos Aires, Argentina recently. The ICANN manages the Domain Name System (DNS), which helps organise the Internet with the allotment of domain names such as .com, .org, .net and so on. It is in the middle of an exercise that will transfer control of internet governance from the U.S. government to a multistakeholder model, the deadline for which was September this year. Calling India’s stand “signi cant”, ICANN President and CEO Fadi Chehade said, “Today, with India joining this group of countries that openly support the multi-stakeholder model of Internet governance, we increase our ranks signi cantly.”

PM Wants Aptitude Tests for All Students Prime Minister Narendra Modi recently advocated for an aptitude test for all students across the country. Reviewing the agship programme for universalisation of elementary education, the PM also sought greater synergy between the government’s Digital India initiative and related programmes of the Sarva Shiksha Abhiyan. He said all schools should plan their own targets to be achieved by 2022, the country’s 75th year of independence. Modi asked of cials to explore the possibility of a “twinning arrangement” between a class of a school in an urban area and a class of a school in a rural area. Best teaching practices should be identi ed and a repository created for wider dissemination, he said. The basic data of all school teachers, such as Aadhaar numbers, email IDs and mobile phone numbers, should be maintained in a database, he said. The PM also reiterated his suggestion for holding Swachh Bharat-Swachh Vidyalaya competitions among schools as part of the government’s ongoing cleanliness campaign. Experts have suggested the holding of aptitude tests to help students choose a stream that is best suited to their talents and abilities.

Gujarat Loses Rank-1 Position to Rajasthan in Solar Power Rajasthan has nally left Gujarat behind in solar energy generation. Till recently, Gujarat remained the undisputed leader in the sector. Given the number of projects in the pipeline, the desert state is likely to retain the honour for quite some time to come. According to data released by the Union ministry of new and renewable energy recently, Rajasthan has grabbed the number one position in the country with an installed capacity of 1,167 megawatt against Gujarat’s 1,000MW. A keen advocate of solar energy, Prime Minister Narendra Modi was probably one of the few leaders who as the chief minister of Gujarat foresaw the potential of solar power and the state always remained at the top as the largest generator of the green energy. On the other hand, Rajasthan had all the natural advantages for solar such as abundant barren land and high solar radiation in the country, but it failed to live up to its potential in the absence of investor-friendly policy and the government’s aggressive promotion of the sector.

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Governance Watch

Major Thrust to Education and Health in Delhi Budget In its rst budget, the Arvind Kejriwal government in Delhi gave a big boost to education and health sectors, made movies and gym visits expensive and proposed Wi-Fi in all colleges as it tried to balance poll promises with economic prudence. Presenting the Rs 41,129 crore budget, Delhi’s nance minister Manish Sisodia, who is also deputy CM, told the assembly no new taxes had been proposed and one of the highest allocations — Rs 4,570 crore — made to the education sector, 106% more than the last budget. The transport sector got Rs 3,695crore and health Rs 3,138 crore out of the plan expenditure of Rs 19,000 crore. The budget, drawn up with active participation of city residents over a month, was a milestone towards achieving the ideal of Swaraj (good governance), Sisodia claimed. Striking a careful balance between populism and a reformist image, the Aam Aadmi Party, which rode to power on promise of clean and corruption-free governance, sought to address another problem – rising pollution.

IT Of cials to Take School Kids’ Help for Better Tax Collection In a unique idea to intensify tax collection, the Central Board of Direct Taxes (CBDT) is planning to tap school children to in uence their parents to cough up their taxes. For the current nancial year, 2015-16, not only do income-tax of cials have to meet their tax collection targets, but certain ranks in the hierarchy also has to meet with its ‘communication strategy’ targets set down in the ‘Central Action Plan 2015-16’, which includes talks by I-T of cials in schools and organising visits of batches of senior students to the I-T of ce. Every Commissioner and Principal Commissioner of I-T has to ensure that a young and dynamic tax of cial visits selected schools either during assembly or any other time and makes a presentation using historical stories to showcase that the concept of taxation is a very old one and is relevant even today. Particular emphasis is to be given on how each rupee of tax collected contributes towards nation building. The menace of black money and a parallel economy is also to be explained to the school children.

Rajasthan Govt. to Distribute Sanitary Napkins to Schoolgirls In order to ensure hygiene and prevent girls from any medical complications during menstrual cycle, the Rajasthan government plans to distribute sanitary napkins to teenage girls studying in the government schools of the state. As per Rajendra Rathore, Minister for Medical and Health, the napkins will be distributed to over 16 lakh teenage girls between 14 and 19 years of age coming under below poverty line (BPL) families. The local primary health centres will be roped in to provide the napkins to school administration, which will hand over them to the girls. The project will be implemented in different phases and bene ciaries will be expanded with each phase. In later stages, the media reports say, several NGOs will be roped in to educate village women and motivate them to use sanitary napkins. In many villages of Rajasthan, women are not allowed to enter the house for three days during menstrual cycle. 12

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Global Watch

Asian Infrastructure Investment Bank founded in China On June 29th, Chinaâ&#x20AC;&#x2122;s president, Xi Jinping, hosted 56 member countries for the founding of the Asian Infrastructure Investment Bank (AIIB). Incidentally, the leaders of the World Bank and the Asian Development Bank, the US and Japan have decided not to participate in the Bank which is been seen as a major challenge to IMF and World Bank in global nance. Australia, the long time US ally in the region, was the rst country to sign the articles of agreement. China will be the biggest shareholder in the bank, which aims to have $100 billion in capitalization. Beijing will contribute $29.8 billion, with India standing second at $8.4 billion, the articles of agreement show. Because of the highest contribution, China would have the maximum votes, 26.06 percent to start with. The Asian Development Bank and the European Bank for Reconstruction and Development both welcomed the creation of the new bank.

Second Woman Governor for Afghanistan President Ashraf Ghani of Afghanistan has appointed a second woman as a provincial governor, showing strong will for women empowerment even as the rst appointee has been unable to take of ce because of erce opposition and protests. Seema Joyenda has been appointed as the governor of Ghor Province in central Afghanistan, which is the poorest region of the country. Ms. Joyenda, 43, is a former member of Parliament and a mother of nine. The rst woman governor appointee, Ms. Masooma Muradi, whom Mr. Ghani had appointed as governor of Daikundi Province, has still not been able to assume of ce because of protests linked to a strongman in Daikundi who is holding sit-ins to keep her from of ce. President Ghani and Abdullah Abdullah, the Chief Executive of the country have decided to appoint three female governors. Governors, who control all civilian and military activities in Afghanistanâ&#x20AC;&#x2122;s 34 provinces, have substantial authority.

US Supreme Court upholds Obamacare The US Supreme Court has upheld a key provision of the Obamacare law, according to which government tax subsidies, a core component of Obamacare that makes health insurance affordable for millions of Americans, should be available to all. The ruling, delivered with 6-3 vote, effectively means that Americans will continue to be eligible for subsidies regardless of whether their state sets up its own exchange, and preserves premium assistance for 6.4 million customers in the 34 states that rely on the federal marketplace. Opponent of the law had said that the healthcare subsidies should have only been available for people in states that set up exchanges. Seventy percent of Americans support Obamacare. Healthcare reforms has been the highest priority item for Obama whose legacy has been mostly about failures on domestic front. July 2015

Governance Today 13

Lead Story

WHAT AILS INDIA’S

AGRICULTURE?

Unless a productivity-cum-quality revolution take place the apprehension voiced by experts about the India becoming a net importer of food grains in another 20-30 years cannot be ignored. - MS Swaminathan I Anand Mishra he complexity of the Indian agricultural economy can bewilder any observer. And not just because of the agri climate zones or the types of crops, but also because it suffers from problems that are neither easily visible nor easily comprehensible or solvable. Despite being the country with the second largest agricultural land in the world, hardly two fifth or forty percent of the agricultural land is irrigated. Also, even though the country boasts of being the highest producer of many major agro commodities in the world, it suffers from low productivity. As for the strength of the farming community, it is inconceivable that any political party can form government or even find representation in parliament without making significant inroads in the agrarian population. All political parties make over the top attempt to show themselves as the biggest supporter of farmers’ cause. And yet, year after year, farmers in different parts of the country are forced to commit suicide crop failure or inability to repay the loans, large scale loan waiver programs of governments notwithstanding. The granaries are overflowing with

Governance Today

July 2015

food stocks and huge stocks are lost to rain or rodents every year, but minimum support prices are still raised liberally and even more food grain is procured. And of course, the government cannot distribute food to poor for free, regardless of the Supreme Court strictures. Confused? You are not alone; hardly anyone has a complete handle over the great game of the Indian agricultural economy.

Critical for economy It may sound clichéd, but agriculture remains a critical element of the

Indian economy. Even though agriculture and allied sectors contribute just about 14 percent to the GDP (2013-14 estimates of the Central Statistics Ofﬁce), its direct and indirect impact on Indian economy are huge and multifaceted. Approximately 70 per cent of the rural households survive on agriculture and this population has a lion’s share in the consumption of many consumer durables and non-durables, rural vehicles, two wheelers and tractors. Also, rural income which primarily is farm driven, is a critical component

Lead Story

Many industrial segments like tractors are dependent on rural demand

of infrastructural sectors such as construction and cement. Another dimension of the importance of agriculture in Indian economy is the forex that it generates for the country. Agricultural and allied industries exports account for nearly one ﬁfth of the total exports of the country and have grown sustainably over last decade or so. Indirectly, agriculture plays a big role in some industries such as food processing by providing bulk inputs. Many industrial segments like tractors are dependent on rural demand A second way of looking at the criticality of agriculture is how fast it reduces poverty. Like any other agrarian country, farm growth in India pulls down poverty much faster than other sectors. According to a research of Delhi based Indian Council for Research on International Economic Relations (ICRIER), farm growth could reduce poverty two to three times faster than other sectors. This proves how important it is for India to ensure a healthy farm sector. Not only it offers livelihood to the majority of the population, but also has the ability to reduce poverty at a much faster rate than industry.

However, the farm sector has never been given the due importance in national economic planning it deserves and resultantly, it is tottering towards collapse.

Beyond rising production It is commonsensical that if a sector which employs nearly two third of the country’s population is in distress, the country cannot do well overall, regardless of how high the national GDP is growing. But what is the actual status of the farm sector? Most common noise that we hear is of record agricultural production,

record food grain procurement by the government, the stupendous growth of agricultural exports and the innumerable schemes launched to beneﬁt farmers. And stats are made available to paddle such claims. Sure, we are breaking records of production. GDP of agriculture and allied sectors stood at USD156.1 billion in 2013-14; production of wheat and rice reached an all-time high of 95.85 million tonnes and 106.29 million tonnes respectively. Total agricultural exports from India grew at a CAGR of 22.3 per cent over 2007 to 2013 to reach USD42.37 billion. Capital formation in the farm sector stood at a record 6.8 percent in 2013-14. All glossy and happy. But these are only one set of statistics. The other side is equally staggering, but not in a good way. Between the years 2007-14, agricultural production in the country grew at a compounded rate of just 2.8 per cent. The combined food grain production of Rabi and Kharif crops grew at a CAGR of even lower 1.83 per cent, in the six years leading to 2014. So, when the overall economy was growing at around seven percent, the sector sustaining two-third of the country’s population chugged along at such low rate. Uninspiring.

Hoards of farmers are joining the city workforce as daily labourers every day

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Governance Today 15

Lead Story and financial institutions. Census of 2011 showed that on an average, 2,300 people are quitting farming every day and migrating to the cities. Between 2005 and 2009, roughly 140 million people left the farmland. Over 35 million farmers are estimated to have left farming since 2007 to work in cities. Naturally, farming has not been able to sustain these farmers, uprooting them to migrate to cities looking for menial jobs. A survey by the Delhi based Centre for the Study of Developing Societies (CSDS) found that three out of four farmers wanted to leave agriculture because farming was not economically viable. According to the National Sample Survey Organization (NSSO), as many as 78.1 million of the 90.2 million farming households do not earn enough from farming to meet their expenses. The data show that on an average, a farming family lives on a monthly income of Rs 2,115 Rupees, which is less than the official threshold of the poverty line. The extreme distress is not visible to us in the cities. Noted scientist and educationist Prof Yash Pal raises a pertinent question; how can the country be prosperous if two third of the population is growing at less than two percent in an overall growth of seven percent? The inequality that it is generating is enormous and inhuman, he laments. When we see the impact of a sustained and large growth differential between India’s agricultural GDP and overall GDP, a scary situation emerges. If two third of population is creating less than one seventh of the economy and is growing at a one third rate of the broader economy, it means that not only there is a huge income differential, but that gap is increasing at a high rate. Add to it the menace of inflation, which has ruled at double digit for the last few years, it is not hard to imagine the stress that India’s agricultural economy is going through. And this stress reveals in most

Governance Today

July 2015

According to the National Sample Survey Organization (NSSO), as many as 78.1 million of the 90.2 million farming households do not earn enough from farming to meet their expenses. depressing and sad way. The National Crime Records Bureau (NCRB) records show that nearly 300,000 farmers have committed suicide in the past seventeen years or so. Two farmers on an average are committing suicide every day in Punjab, which is among the prosperous states of the country. Maharashtra and Andhra Pradesh have also recorded high suicide rates. The increasing episodes of natural calamities during the last decade has made matters even worse for farmers as the government’s interventions have been hopeless at best. If loss of income because of crop failure have been the primary factor behind these deaths, unserviceable loans have too made farmers’ lives hellish. Nearly 60 percent of the farmers are deep in debt, the bad part of which is that small landowners owe to local lenders who charge much more than banks

Farming in India is low on productivity

But why is agricuture languishing? According to Food and Agricultural Organization, India’s yield for rice stood at a low 2.4 tonnes per hectare against 4.7 tonnes per hectare and 3.6 tonnes per hectare for China and Brazil respectively. In wheat, India’s yield per hectares stood at a little over 3 tonnes per hectare against 4.19 tonnes per hectare in the case of China. However, according to data of the Ministry of Agriculture, in 2013-14, the yield of rice jumped to 3.6 tonnes per hectare but that of wheat plummeted to under three tonnes per hectare. Is low productivity a problem? Actually, it is the cumulative net result of multiple problems. First and foremost problem is the small average size of landholding. As per the Agriculture Census of 2010-11, small and marginal holdings of less than 2 hectares accounted for 85 percent of the total agricultural land holdings. As many as 62 million households have landholding of less than one hectare and these accounts for 70 per cent of total farm households. What is even more disturbing is that the average size of holdings has been coming down, and for all classes of farmers, from small & marginal to medium and large.

Lead Story The average landholding for all classes has come down from 2.82 hectares in 1970-71 to 1.16 hectares in 2010-11, a National Bank for Agriculture and Rural Development (NABARD) study revealed. Even as the number of farmers has increased tremendously over last four decades, the total agricultural land has barely increased, resulting in such decline in average landholding, which manifests in multiple problems. On one hand, it makes the cost of inputs high relative to the income, and on the other, it disincentivizes farmers from ferrying their produce to markets where their crop can get right price. Middlemen make merry of the situation. Furthermore, the decreasing size of land holdings makes it very tough to mechanize and increase yield. The low productivity also is a manifestation of some unique problems that India faces. First, the human capital is of very low quality. The farmers are mostly uneducated or ill educated. This makes adaptation of technology impossible. This is exacerbated by the poor help from government in technical matters. For example, because of poor understanding of the ill effects of excessive use of chemicals, farmers have overused these chemicals eroding the soil productivity. Secondly, the landowning and rental rights are

skewed against farmers. Excessive rent, insecurity regarding land tenure and no land ownership rights reduce the incentive for farmers to do anything for enhancing productivity and increasing production. Poor infrastructure is third huge problem of Indian agriculture. The most visible and prevalent problems are lack of irrigation and unconnected markets. Sixty percent of the agricultural land is unirrigated, making monsoon all important factor in agricultural production. This not only makes food prices extremely volatile, but also makes farmersâ&#x20AC;&#x2122; income unpredictable. Another way in which poor infrastructure severely distorts agri commodity market is poor road transportation and broken logistical network. The poor road network makes it hard for farmers to reach markets to sell their produce. Also the storage facilities across India are in bad shape. The condition is especially bad for perishable items such as fruits and vegetables. All of these result in poor income for farmers. Then there are Institutional issues. It is an acknowledged fact that agricultural productivity is directly linked with ready and reliable access to quality inputs such as seeds, fertilizers, pesticides, farming equipment and technical know how. Unfortunately, Indian

Agriculture is still too dependent on monsoon

farmers do not have access to any of these. High Yielding Variety (HYV) seeds are rarely available and technical information and knowhow is hard to ďŹ nd. The middlemen, entrenched because of the Agricultural Produce Marketing Committee (APMC) Act further reduce the bargaining power of small farmers for most crops. Agricultural loans were planned to ensure that small farmers can afford input costs. However, the experience has been anything but encouraging. Most of the times, credit is not available to small landowners forcing them to go to local lenders who offer loans at exorbitant rates, making loans unsustainable right from the beginning. On the other hand, large landowners who do get loans from banks at lower rate, have been found to have a high propensity to default.

The way out What transpires from above is that the Indian farmer is suffering at three levels. First, he is too small and poor to afford modern farming with high quality inputs and modern technology. Secondly, he does not have adequate state support. And third, the poor infrastructure prevents him from realizing the right price for his produce. Action is required at all these levels. The most fundamental of the agricultural inputs is seeds. State governments who are primarily responsible for the production and distribution of quality/certiďŹ ed seeds distribute seeds through a number of channels such as departmental outlets at block and village level, cooperatives and outlets of seed corporations and private dealers. But the structure is very often so broken that farmers have to buy seeds only from private outlets at a high price. Also, HYV seeds are too costly for most farmers. As such, a mechanism needs to be found to ensure that high quality seeds are available at the right price at all

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Governance Today 17

Lead Story

Ensuring that small and marginal farmers get loan is crucial

places. Supplemented with other facilities such as proper irrigation and right fertilizers, quality seeds can increase production in excess of 30 percent, according to numerous researches. At the infrastructure level, improving irrigation is the most crucial and immediate requirement. There is no shortcut to this. A long term plan needs to be put in place for effective and cost effective irrigation coverage. The river interlinking plan could be a game changer in this regard. Also, efﬁcient irrigation technologies such as piped conveyance and drip irrigation, etc. need wider application. As for logistics, more private investment needs to be attracted in higher end projects like cold storage facilities. Private sector investment in marketing and value chains have started to trickle in but needs further encouragement. At institutional level, action is required at four broad fronts. First and foremost, adequate ﬁnancing must be made available to small farmers so they can afford quality inputs. These include seeds, fertilizers and pesticides, irrigation and mechanized tilling. Farm credit is among the most important yet neglected areas of banking with high losses. Proper targeting, monitoring and assistance is required so that credit level can be increased but

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July 2015

losses kept low. Crop insurance is the second big initiative that is required to prevent extreme losses to farmers. While there are complex technical issues related to crop insurance, but the government has taken up the initiative which is commendable. Third, the entire mechanism of procurement and marketing of agricultural produce needs a radical improvement. The APMC mechanism which was invented to prevent middlemen from robbing farmers, has itself become a monster and is harming farmers as well as end users. It has to be done away with immediately. Finally, the government needs to beef up its capability to guide the farming community in best practices. Because farmers are mostly not aware of the best farming methodologies, they are unable to take advantage of the best mix of fertilizers and pesticides, crop mixing, water management and the weather forecasts. Even though the government has started to leverage technology to make information available through telephone and call centers, its reach and ease needs to be enhanced to make such information ubiquitous. Additionally, there is a dire need for improving the information quality that is being provided. The fragmented farming is a systemic bane of Indian agriculture. It is common knowledge

that small and marginal farmers are separately too poor and weak to adapt new technology or market their produce. The government can intervene to encourage collective farming that could allow members to buy seeds or fertilizers, plan crops and market produce together. While the experience in cooperative farming has mostly been a failure because of unclear work incentives, excessive government interference and inefficient leadership, some have done extraordinarily well. For example, the Gambhira Collective Farming Society in Mahisagar district of Gujarat has sustained for over sixty years. The Society undertakes primary tillage, purchase of inputs, irrigation and marketing of produce for nearly 300 members who cultivate over 500 acres of land. The proceeds obtained from crop production from the land allotted to groups, after meeting all the expenses and contribution towards the reserve. The members have got higher returns for their produce by achieving economies of scale and optimum utilization of resources. At the end of the day, government needs to move out of the paradigm of promoting agriculture by merely increasing MSPs and waiving off farm loans. It needs to address deeper structural issues that plague the system. The first Green Revolution rode the wave of better seeds, irrigation and fertilizers. India needs another round of radical improvement in agriculture to feed its population. But this time, a much bigger template would be required. Besides research labs, it would need judicious government intervention to ensure sound infrastructure and efficient market for agricultural produce and proper incentive structure to lure private sector money in the sector. There are no quick fix solutions for a sector as complex and big as agriculture. But failing is not a choice because it is not only an economic challenge, but also a social and human one.

Lead Story

FOOD INFLATION

Causes & Solutions I Anand Mishra he unseasonal rains that hit during March this year severely impacted around 94 lakh hectares under Rabi cultivation. The result has been most visible in prices of pulses which have shot up in recent

weeks. This has happened because traditional import markets could not make good the loss of domestic production. Further complicating the situation is the third advance estimates of the Ministry of Agriculture, which has indicated a contraction in foodgrains

production by more than 5 per cent in relation to the preceding yearâ&#x20AC;&#x2122;s level. If that was not all, the Indian Met Department predicted that rains could fall short by 12 percent this year. All these indicate that the recent marginal improvement

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Governance Today 19

Lead Story in the prices of food items could be transitory and the prices of food items may well shoot up again in coming months. This could be one of the reasons why the RBI decided against dropping the interest rates by more than a token 25 basis points during its bimonthly monetary policy review. For a country like India, where almost half of the expenditure of an average household is spent on filling the plate, poor spend about 60 percent, a high food inflation acts as a hidden tax. For the last few years, the double digit food inflation has been the toughest challenge for policymakers. Food inflation has remained elevated through the economic growth cycle, which displays its stickiness. High food inflation has also translated in high CPI (consumer price index) inflation as the share of food expenditure in total household expenditure is quite high. This has forced the RBI to keep interest rates high. Also, high food inflation has fed into higher wages and higher inflation

Food inﬂation is driven by high wage growth

Source: IMF

expectation. In totality, therefore, high food inﬂation has been a key economic problem for the country. The composition of the food inﬂation also shows an interesting pattern. The NSSO surveys on consumer expenditure show that most categories including cereals,

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July 2015

Inﬂation in select food segments Source: RBI Research

pulses, milk, fruits and vegetables, eggs-meat-fish (EMF) and sugar suffered from higher levels of average rates of inflation than overall wholesale inflation since the latter half of 2010s till the end of FY 2012-13. Among these, pulses, milk and milk products and EMF had much higher inflation and had accounted for over 40 percent of the overall food inflation during this period. What this essentially means is that protein based plant and animal foods have become key drivers of food inflation.

What explains high food inflation? The enormity of the problem can be gauged from the fact that the government has not been able to control it, despite knowing how politically damaging it could be. Indeed, high inflation, primarily high food inflation was a prominent reason for the rout of last government which was seen as having completely failed in containing prices. Surely, the rot must be going very deep in the economic structure. While most of the blame has gone to the government of the day for not containing prices, and for good reasons, the mechanism has not been fully appreciated by the public at large. Fluctuating monsoon, inefficient food marketing structure and hoardings have been known as the most common reasons for high prices of food items and latter two are domain of government action, or inaction.

India’s food procurement policy is among the most inefﬁcient and is governed by the Agriculture Produce Marketing Committee (APMC) Act, which forces farmers to sell their produce to licensed middlemen, resulting in an oligopolistic market which allows for price distortions. Very often, proﬁt margins have been found to be in excess of 60-65 percent. The situation is especially worse in items with smaller shelf life, such as fruits, green vegetables and meat products. Last year when prices of Potato and Onions hit through the roof, the central government took out these items from APMC Act, but a summary scrapping is required to ensure real prices prevail. But this can be done only by states and the center can only play a persuasive role in it. But a start is desperately needed in this regard to prevent price cartelization.

Supply side constraints As is the case in many underdeveloped countries, supply bottlenecks and supply shocks are crucial features of the Indian food economy. Loss of produce is a direct fallout of supply bottleneck which has not received enough attention in public debates. Wastage due to underdeveloped supply infrastructure, whether it is the lack of storage facilities or transport infrastructure, is over 20 percent. Furthermore, estimates show more than 30 percent leakage in the PDS system. It we take into account, the delay and temporary scarcity that these bottlenecks create on

Lead Story

Failed monsoons lead to higher food prices Source: RBI, Indian Met Department

top of decrease in available stock, the impact on prices can be quite drastic. Because of excessive dependency of Indian agriculture on Monsoon, the food production and in turn food inflation is highly dependent on rainfalls. Years of severe rain deficiency have invariably been associated with high food prices, high food grain stocks notwithstanding. This was seen very clearly in the years 2002, 2004, 2009 and 2012, which were highly rain deficient and witnessed rising food inflation. But supply shocks also come in form of structural changes having long term impact. The classic example was witnessed in mid 1990s, when a large number of farmers shifted from growing food crops to commercial crops for export purposes. Such developments result in a permanent reduction in the agricultural produce resulting in higher food prices. Additionally, the inflation in key inputs such as fertilizers, electricity, diesel and animal feed have all been at elevated levels over the last

few years and fed into the price of agro outputs. While fertilizer prices have remained subdued this year, thanks to a decline in crude prices globally, that is not a cause of joy as situation can turn worse as and when crude ﬂares up.

Rural wage hike: the real culprit? Wages are the most important input cost of agricultural production. As such, a higher rural wage is bound to push food inflation higher. According to estimates of the Commission for Agriculture Costs and Prices (CACP) of the Govt. of India, a one percent rise in wage inflation pushes food inflation by 0.3 percent. This was also underscored by a study of renowned economist Ashok Gulati which showed that higher rural wages were second most crucial reason for the food inflation in India during 1995-96 to December, 2012, second only to fiscal deficits. Higher global food inflation was found to be another reason for higher food inflation during this period. Furthermore, an RBI research concluded in 2014

Rural wage rise picked up after the 2008 ﬁnancial crisis Source: Labor Bureau

that higher food inflation could be attributed to higher rural real wages which influenced prices in short as well as in the long term. But what led to such hikes in rural wages? There are multiple reasons. The most visible of these is the ill thought out MGNREGA scheme which has distorted wage discovery process by creating an artificial, high floor price for rural workers. Once set in motion, this high wage reflects in high food prices, which in turn pushes rural wages even higher. Rapidly expanding employment opportunities in non-farm sectors which vied directly with farm sector for rural labor provided additional upward nudge in rural wages since the latter half of the last decade. Construction and manufacturing sectors are typical sectors which weaned away a large number of rural workers from farms. However, as the economy slowed and the RBI curbed money supply over last 2-3 years, the rural wage inflation came down in last two years. The high base effect could also have played some role here.

Higher deficits explain demand pull Gulati’s study showed that high fiscal deficits have been the most potent culprit in food inflation going out of hand, even more than the rise in rural wages. And there is merit to this assessment. High deficits have worked in two ways in exacerbating the food prices. First, money spent on schemes like MGNREGA pushed up cost of rural workers; and secondly, it fueled a consumption binge. In order to fight economic slowdown in 2008, India, like many other countries, offered a fiscal stimulus by running high deficits. But instead of developing return generating economic infrastructure, the stimulus went in directly into the pockets of people in form of sixth pay commission in urban India and agricultural loan waiver in rural India. This boosted demand

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Governance Today 21

Lead Story

Controlling key input costs is a second area on which concerted work is required. This is easier said than done because not only relative prices of urea and other fertilizers need attention, but also the targeting of subsidies has to be looked into. across all consumption items and with supply not increasing, prices went up, especially the prices of food items. In short, the large fiscal deficit that was resorted to boost the economy, ended up doing the opposite as the central bank had to push up interest rates to fend off high inflation.

Taming the beast What transpires from the above is that the food inflation in the country has been because of a few broad factors, namely inordinately high rural wage increase, supply side inefficiencies, monsoon failures and shifts from food to commercial crops. On top of it all, politically motivated increases in minimum support prices for various crops have played havoc with the food prices. In any industrial good, a rise in wage and input cost may not reflect so much in prices of final good if the productivity also rises commensurately, but that has not been the case with farming. So, first and foremost, the agricultural productivity needs to rise. However, that is not a short term prospective and would take a long term planning, incentivization, application of technology and most importantly, financing. In the meanwhile, pronounced efforts are required to address structural and monetary issues. The most significant aspect of money management for controlling inflation in general is to manage deficits more judiciously. While it is nobody’s case to have high

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July 2015

deficits, more crucial is to manage what that deficit is financing. A high deficit which goes directly in fuelling consumption is slated to keep inflation at high pedestal and because the food supply is highly inelastic, it is food inflation which would be more elevated. As for supply shocks and bottlenecks, they need immediate and comprehensive overhaul. Long term planning needs to address how nearly half of agricultural land in the country which is unirrigated, can be watered. This is the only way to prevent monsoon failures from periodically flaring up food prices. Secondly, addressing infrastructural problems such as cold storage and efficient transportation could go a long way in keeping prices of protein based foods and fruits and vegetables in control. Controlling key input costs is a second area on which concerted work is required. This is easier said than done because not only relative prices of urea and other fertilizers need attention, but also the targeting of subsidies has to be looked into. Electricity and diesel subsidies to farmers have been more of a political issue so far and the actual impacts of these subsidies on production efficiency and production cost have not been properly assessed. But that is absolutely necessary to better target the subsidy and to find out how to increase the productivity of farming. Two of the most politically sensitive aspects of agricultural

produce prices are MSPs and APMC Act. While APMC Act needs to be done away with at earliest, a nuanced approach is require on MSP. Increasing MSP without any increase in agricultural productivity is just a tool to transfer inflation to urban areas that buys food and does not grow any of it. As such, a judicious balancing is required to ensure reasonable compensation to farmers and at the same time, not hurt final buyers. But over the long term, all these measures could still come undone if the crucial question of raising farm productivity is not addressed. Only when a rising rural wage is accompanied by a commensurate rise in productivity, can final food inflation be contained. The Economic Survey of 2012-13 listed three sources of higher labor productivity; first, more physical capital employed per worker; second, more human capital per worker; and third, greater total factor productivity (TFP). In farming, this means higher productivity could come from greater farm mechanization and by enhancing the quality of farmers through right education. Needless to say, this cannot be done in one year, but an urgent beginning is required. More than an economic phenomenon, food inflation is a human problem, because it hurts poor the most, who spend more than half of their entire earning just to fill their plates. For far too long, political expediency and structural inefficiencies have enriched a few at the expense of all, but as a country and more so, as a society, we need to ask ourselves how long can we continue with this inhuman torture. It’s time government wakes up and do what is needed to preserve the life and health of its citizens, or else, all its grand plans would wilt under the weight of an unhealthy population who could not buy nutrient food.

Lead Story

Innovative Methods Required to Deal with ‘Deficient Monsoon’

I Ramesh Kumar Raja ver wondered why does the prediction of a scarce monsoon send the same wave of fear across India as it would in pre-historic era? The answer is simple: The profession of agriculture has not changed for almost 40 per cent of the population and it continues to be their mainstay. The majority of populace is still dependent on the four-month South-West monsoon that accounts for nearly 75 per cent of the country’s total rainfall and which plays a crucial role as over 60 per cent of the area sown is still rain-fed. India gets nearly 53 per

cent of its agricultural produce from the kharif season (June-September) compared to the rabi season (November-February), where the production is around 47 per cent. The impact of the monsoon is also crucial for rabi crops as it has an impact on the ground water and also reservoirs which are critical for rabi crops irrigation. Agriculture contributes some 14 per cent to the gross domestic product (GDP) of the country and any deviation from the normal progress or distribution invariably has a direct impact on the agricultural output and a cascading

effect on the overall economy, food inﬂation and therefore, consumer spending. When rain-dependent farm output is robust, rural income and therefore spending on almost everything – television sets to gold – goes up. This creates demand for manufactured goods, which in turn helps the general economy. For instance, 48 per cent of all motorcycles and 44 per cent of TV sets are sold in rural India. Without this demand, industrial growth would slow down. Normal rains, hence, act as a strong check on inﬂation through plentiful food stocks.

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Governance Today 23

Lead Story

Rural consumption as per cent of total

While a good monsoon always means a good harvest and brings in cheers all around India, a weak or bad monsoon is always considered as a big setback to India’s economy and always results in a significant deceleration in the country’s GDP growth. Now wonder Indian economy is often called the ‘monsoon economy’. The monsoon not only acts as a controller of prices of primary articles such as food grains, etc. but also impacts industrial production with nearly 40 per cent of the raw-material coming from the farm sector. Dr Arvind Panagariya, vicechairman of the Niti Aayog, feels it’s not just the farmers who get impacted, deficient rains rather have a domino effect on the entire economy. “Fast-moving consumer goods, consumer durables, consumer staples, food/beverages, tobacco, prescription drugs and consumer discretionary spends, all draw sustenance from rural income. That’s why it is critical that India devise ways to reduce its dependence on the monsoons,” Panagariya opines. Expanding irrigation cover is a tough task, however. It requires huge investment on the part of the government as private capital is not going to get involved in a significant way because building canals demands long lock-in period for capital and offers very low returns. Even though private investment in agriculture has increased, but it has not come in irrigation projects. The composition of agri investments in recent years reveals that while the investment in agriculture grew

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July 2015

from 7.5 per cent of the investment in 2004-05 to 7.7 per cent in 2013-14, the share of government declined from 6.7 to 4.7 per cent, while that of the private sector increased from 7.8 to 8.6 per cent. The declining government investment in agriculture is the reason behind increasing vulnerability of farmers to water scarcity. The irony is that in all these years government did spend money on irrigation projects but not as much as needed and in usual inefﬁcient manner. Between 2004 and 2014, the central government provided over Rs 53,000 crore to states for irrigation projects, but out of 297 projects, 163 were running delayed, including some for over 20 years. Farmers have no other option but to turn to pumping groundwater out through tubewells. In 1990-91, the share of tubewells in all irrigation was 30 per cent which jumped to 45 per cent in 2011-12. In 1960-61, tubewells contributed just 1 per cent to irrigation. Canal irrigation, on the other hand, declined from 36 per cent in 1990-91 to 25 per cent in 2011-12. But, this does not mean that

Between 2004 and 2014, the central government provided over Rs 53,000 crore to states for irrigation projects, but out of 297 projects, 163 were running delayed, including some for over 20 years

the tubewell dependent farmer is untouched by a failure of monsoon, as his expenditure on buying water from tubewell owners shoots up manifold in the absence of rain. It may be noted that most small and marginal farmers do not own pump

sets and tubewells and have to buy water from bigger agrarians. There are other ways in which economy is taking a larger hit because of lack of irrigation. For instance, farm productivity is much lower in rain-fed cultivation. A rain fed farm produces one to two tons per hectare for foodgrains compared to up to four tons that an irrigated piece of land yields. As per Kapil Dev Sharma, formerly with the National Rainfed Authority of India, it is not necessary to just build canals. Very small interventions, like lined ponds, can also go a long way. Over 27 million hectares (Mha) land can be provided water through supplemental irrigation by building such ponds that cost only Rs 18,500 per hectare. Even though weather predictions remain a tricky business, many experts forecast that erratic monsoons are here to stay in the years to come. As such, there is an urgent need for a relook at our approach towards water management. The Modi government has already confirmed its urgency by kick-starting an ambitious project linking 14 rivers from the Himalayas and 16 across the Indian peninsula. This will facilitate bringing water from areas with plentiful of water to others afflicted by scarcity. This should be coupled with innovative and imaginative use of technology and research for conservation of groundwater and better crop planning. The Centre and the states must join hands to ensure the benefits of research reach farmers. The grim situation, which occurs every other year, also displays the significance of making agriculture in India more drought-resistant and increasing agricultural water use efficiency to produce ”more crop per drop.” The Centers for International Projects Trust is one such institute that seeks to design and implement water solutions in some of the country’s most challenging settings. Affiliated with the Columbia Water Center

Lead Story

Rain water harvesting can be a good irrigation method

at the Earth Institute, the center has undertaken various lowcost technological innovations to reduce the amount of water used for the production of rice and wheat. In central Punjab, the CIPT and Punjab Agricultural University worked with 8,000 farmers to achieve a 12-15 per cent reduction in water use through the use of low-cost tensiometers, a tool used to measure the moisture content of the soil. These savings also correspond to a reduction in energy usage for groundwater extraction. It now plans to introduce a new, easyto-use and low-cost soil moisture sensor that will inform farmers when to irrigate their ﬁelds. Likewise, in Gujarat, the CIPT has been pilot testing the use of GW-11 variety of wheat with farmers in the Mehsana district. GW-11 is droughtresistant and produces yields that are comparable to the traditional variety of wheat. The GW-11 variety requires less irrigation than traditional wheat. The low-cost innovation not only reduces water usage in agriculture but also makes farmers less vulnerable to climate variability, especially relating to the monsoon season. Simple solutions like these have the potential to save signiﬁcant quantities of water and may lead to higher growth in agricultural production. In order to cut down its monsoon dependency, the country must

tap into a well-developed irrigation infrastructure during times of deficient rain. The International Water Management Institute (IWMI) has warned in a recent report that Asian countries need to update their run-down irrigation systems if they wish to meet the challenge of feeding an extra 1.5 billion people by 2050. India would be the biggest stakeholder in the scenario painted by the IWMI largely because only an abysmal 30 per cent of all agricultural land in India is irrigated. Experts say due to overdue government policies, productivity on existing land hasn’t been optimised as much as it should have been. Moreover, with the changing profile of the monsoons (short cloudbursts rather than a long spell of rains), the long dry periods in between heighten the danger of flooding and unexpectedly, drought also. According to a 2013 World Bank report, the ghost of drought remains a very real one. Between 2002-2012, three major droughts hit the country with the last one shaving off half a percentage point from the country’s gross domestic product (GDP). Most economists believe that high dependence on monsoon, mainly because of inadequate investment in irrigational infrastructure, combined with its inability to augment productivity of food grain is choking agricultural growth.

As per Dr Rajeswari S. Raina, principal scientist, Council for Scientiﬁc Research, New Delhi, India needs a clear policy on rainfed agriculture. “Our research needs to be strengthened in the area of agronomy to study the frequency and seasonality of rains and how that knowledge can be transmitted to help the farmer. Right now, all our research is focused on fertilisers and how they can enhance productivity but we need to broaden our focus to make India a food-secure nation,” he opines. The government needs to look at strategic ways to help farmers. “Rather than doling seeds and fertiliser subsidies, as is the norm, farmers should be educated about the latest techniques in rainwater harvesting so that water can be captured, stored, and distributed more effectively during lean periods. Easier access to microﬁnance to provide small loans to farmers can also be transformative,” Raina explains. These innovative methods can put a smile on every farmer’s face and go a long way in reducing the country’s unhealthy dependence on monsoons. Hope this year’s monsoon that got off to a good start after a slightly delayed onset brings good news for India in days to come.

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Governance Today 25

Farm Tech

POOR TECHNOLOGY Translates into Low Yield

I Praveen Ramam griculture has been the biggest employer since the time immemorial. Even today, around 60 per cent of the Indian population is employed in it. With 20 agri-climatic regions, all 15 major climates in the world exist in India. India is the largest producer of pulses, milk, tea, cashew and jute; and the second largest producer of wheat, rice, fruits and vegetables, sugarcane, cotton and oil seeds. India is also among the 10 leading exporters of agricultural products in the world; the country accounted for 2.07 per cent of global agricultural trade in 2012. India is among leading consumers of food grains too. A great share of what we produce goes to meet the demand of our large population. India’s population set to touch 1.5 bn mark by 2025. To feed such a large population, a steady growth in agricultural is required, which can happen only when modern technology is incorporated into every step of farming,

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July 2015

from tilling of land to delivery of end products. We have to endeavor to bring the best of technologies to raise agricultural yield. Consider this, with an annual output of 130 MT, our country is the largest producer of the milk in the world. It also has the largest milk-producing animal population of over 118 million. Yet, milk yields per animal are among the lowest in the world. So, if we can improve the breeds of cattle, we can surely have more yield even if the number of cattle remains the same. Similarly, India is the biggest producer of pulses in the world at 19 MT and their biggest importer 3.5 MT. If we have high yielding varieties (HYV) seeds, much more pulses can be grown and there wouldn’t be any need to import it. In short, we are doing well because of resources on a large scale are involved, not because of our efﬁciency. Needless to say, adoption of new technology and the increase of farming efﬁciency is imperative if India has to feed its

burgeoning population. The question of low yield is, therefore, a source of concern for farmers and the government alike. In layman’s term, agriculture, like any other any commercial activity, has a set of inputs which generates a predeﬁned set of outputs after certain farming process. In farming, the list of inputs includes land, seeds, weather conditions, tilling and irrigation tools, etc. Quality of inputs, like in any other industry is crucial here too. Quality seeds and technologically superior processing, which means better farming methodologies have the biggest role to play in increasing the yield, especially in context of India, which stands at a low technological level when it comes to farming. Right from tiling a land up to the delivery of end products, technical know-how plays a very critical role. The Indian agriculture scenario is full of paradoxes. On one hand, farmers in Panjab are making money, but the Vidarbha

Farm Tech region makes headlines only for the number of farmers’ suicides. Because farmers in some states make more money, they can invest in technology which further increases yield. But poor farmers of certain regions are unable to invest any money in technology because they start poor and therefore grow less. It is therefore a vicious cycle. The low purchasing power is the perennial problem of the Indian farmer. We know that for new crops, improved breeds of animal, or changes in agricultural practices and crop choice, technology plays a critical role and can sharply increase yields, reduce spoilage and risk, and improve the nutritional quality of food. But technology does not come free and therefore, the majority of farmers can’t afford the best equipment or knowhow. The government can address this to a large extent by allowing private players to come forward with a model similar to microfinance. In this model, to help a group of farmers purchase equipment. This will not only reduce financial burden on individual farmer, but will also serve a group. Lesser exposure to bio-technology has been another bane of Indian farming and to a large extent, research institutions have also not delivered on this front. We need to increase farm yield and for that we need HYV seeds that can also withstand biotic and abiotic stresses. Our experience with bt-cotton has shown us that genetically-modified crops not only increase the total yield and profitability of the farmers, but it has, simultaneously, reduced the use of chemical pesticides drastically. Despite this example, many farmers have no access to GM seeds as they await clearance from the government. Only recently, the government has approved 17 GM crops for trials. The momentum has been slow and the government needs to be more proactive on this because the longer it takes, the longer the farmers will have to wait for them. Agricultural research is a critical area of any country which has a large

agrarian population. India has many research institutions working in agricultural area, but little research is demand driven. An agriculture specialist told this magazine that farmers have little or no voice in the farm research and are always at the receiving end. If scientists develop a variety of seed or a new breed of, say, ducks, farmers have no other choice but to accept them. Given that the farming is an eco-sensitive practice,

to make any impact on the farming practice. Generic information about weather has to be translated into location- speciﬁc land-use advice, based on cropping patterns and water availability. The government can avail information in the form of bulletin at the Panchayat level functionaries to give appropriate land-use suggestions to farmers with the least possible time lag. Like for marine ﬁsheries, data

Modern technology increases yield besides reducing crop wastages

a new HYV seed or new breed of duck may ﬁt only to a set of environmental conditions. What the government can do is to consult farmers in research so as to take their views on the kind of products they want. This will make adoption of new technologies easy, especially in a country like India, where farmers are not very open to innovations to increase yield. Then there is the usage of technology and its deployment in weather forecasting and information which lies completely in the government domain. Indian farmers have mostly no idea about the weather forecast system, despite being so heavily dependent on the monsoon. A major section of our farmers is illiterate. It still looks at the sky to predict rain. Not only this, our farmers have no idea about the amount of moisture that their soil have at a given part of the year. India has considerable capacity in short, medium and long range weather forecasting, but that has yet to percolate to the farmer level

on wave heights and location of fish shoals available would be transmitted to the fishermen. Frontline technologies such as internet- FM/HAM radio/cellphone services would be very helpful to fishermen in this regard. While government is putting such systems in place, but the impact on the ground has been minimal at best. No single strategy can solve the problem of poor yield in agriculture. The government, especially, the state government will have to create a system wherein the farmers can take risks without worrying. Adoption of superior technology can not be left in the hands of farmers in poor country like India. The government has to play a dominant role in ensuring that good equipment and high quality seeds are available to farmers who are informed of the best farming methodologies and processes which is backed by high end research. That would perhaps be the best form of providing agro subsidy.

July 2015

Governance Today 27

Soil Health

SOILED SOILS ‘N’ ADULTERATED ROOTS I Sagarika Ranjan

o speculations now have a concrete form and we are on our way to the dead end. Extinctions have happened before and this is the sixth time, so, is it good news? It hasn’t been long since Haria, a small farmer of Bihar, lost his daughter to kidney failure. Reason, she consumed food and water laced with chemicals. But since when have farmers been growing chemicals? He has been earning better proﬁts since the “angrezi dawai” (chemical fertilizer) helped increase the yield manifold. The long term cost was however, sad. The rising output has been brought about by heavy chemical fertilizers which are eroding the long term productivity of the land besides causing health issues both for plants and

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July 2015

humans. Still, most of the farmers remain unaware or chooses to be so as profits are hard to keep hands off. There are a number of signals that our earth showed before finally hitting the towards-extinction button. The agents of restoration of soil nutrients like farm rats, earthworms, insects, leguminous plants and some beneficial weeds were all blindly categorized as bad for productivity and eliminated only to be later credited as an important agent of maintaining the production capacity of the soil. Some local farmers who now have a fair understanding of the negativities of chemicaldriven agriculture say, “We were very happy with the initial demonstrations of the hybrid seeds, pesticides and fertilizers. All the problems of rodents, plant diseases,

weeds were solved; besides a lot of labor cost was saved. But today, we fail to understand how to revive our land. A lot of it now fails to produce enough even after using the chemicals.” So what went wrong? Soil experts explain that these chemical fertilizers helped in increasing produce, improve quality of yield in lesser time as compared to the natural fertilizers but all at a superficial level. At a fundamental level, these were actually interfering with the natural cycles of our ecosystem and disastrous results were therefore but inevitable. Taking us across some plots; C M Baswarajappa, a farmer in Karnataka, said, “When we started areca nut plantations we were very happy. There was much more profit than paddy but in last five years

Soil Health

Soil productivity has been constantly lost because of excessive chemical usage

things have deteriorated. Water table across several districts has reached a ‘poor level’. Soil has become saline and some new diseases now plague our crops. They are are also affecting our health.” Soil scientists explain that these chemicals and other ‘interfering’ human activities have disturbed the nitrogen cycle of our ecosystem. Soil nutrients like calcium and potassium are being lost at alarming rates leading to acidification of soil. “These fertilizers take more nutrients from the soil than a root would extract naturally. Secondly, they allow farmers to grow three or more crops in one year thus putting excess burden on the soil. The soil on one hand is losing excess nutrients and on the other hand is not being given the required time to revive the nutrients. Thus, after a period of time, soil goes saline, less productive and finally barren,” said an agriculturist at the Krishi Vigyan Kendra at Davangere district in Karnataka. Here the farmers are trained in sustainable farming free of cost. It is an initiative by the government to help the soil regain nutrition and also provide extra income to the farmers by reviving leguminous and biodiesel plants. However, trainers say that most of these farmers are so profit-minded that at times it gets difficult to make them understand the requirement of being a little patience with their lands. Every year, large tracts of land is going barren as agriculture has turned greed-based instead

of need-based. Our farmers are adopting crop patterns not as per the type of land or season or soil composition but as per desired profit graphs. They are using rodent killers, weedicides and other nonnatural ways to maximize their returns. Talking on the adverse impact of herbicides or weedicides, Jeffrey M Smith of Institute for Responsible Technology, says, “Most fields are sprayed with Roundup herbicide. Roundup kills beneficial bacteria in the soil and promotes the growth of pathogens. More than 40 plant diseases are on the rise in the United States as a result of widespread Roundup use. The damaged soil bacteria populations also reduce available minerals to plants, which is further destroyed by Roundup’s ability to bind with minerals making them unavailable. The result is a mineral deficiency in Roundup Ready plants, as well as in plants grown in the same soil after they are harvested. The altered soil biology also absorbs less water, promoting runoff and flooding.” He adds that another so called scientific advancement, the Bt crops produce Bt-toxin in the roots, which can bind with clay and remain active for months or even years. The Bt can wash into rivers and damage the ecosystem as a whole. The problem of excess nitrogen has many off shoots and does not end in the soil. A good amount of Nitrogen leaches away, fouling ground water in the form of nitrates, and enters the atmosphere

as Nitrous oxide (N2O), a greenhouse and thus contributing to global warming. The loss of organic matter of the soil makes it prone to compaction, thus, vulnerable to runoff and erosion. The soil loses its ability to hold roots or water. Result is that the soil forever becomes reliant on irrigation as water requirement keeps increasing with deterioration in the soil quality. A couple of decades back when green revolution opened up new horizons, the long-term effects were played down as the scale of loss and profits was balanced but today, the scales have become too lop-sided to miss. Losses have greatly outnumbered profits and the saddest part is that mostly all remain unaware. They are asking: Is there a U-turn and if yes do we have enough time?So much is at stake, so much has already been lost yet prosperity seems a far cry. Every year, India is experiencing increase in the percentage of land going barren. A farmer is committing suicide every five minutes and natural food products leading to physical and mental disorders in several cases. These ‘magical’ chemicals have gradually entered the food chain. Today, vegetables need to be thoroughly washed before consumption but it “only minimizes the possibility of health hazard” and not stops it as the poison has entered our food and as such, is never far from us. Prosperity was for long taken synonymous to productivity and resources were exploited to the limits. But beyond this point lies an eternal fall awaiting the ‘essentially the walking dead’ species of our retiring world. This is the very future that we are moving towards; increasing population, piling pollution and promulgating economic issues, we are choosing to be unaware and unconcerned. And as all roots perish and thrive in this very soil, time will tell how far would we make it with our abject indifference towards soiled soils?

July 2015

Governance Today 29

Agri Loan

NPA FARMS OF INDIA Crores of green notes are pumped into our green fields but the financial traffic lights are yet to go green… I Sagarika Ranjan

renched he was. From head to toe. Dripping eyebrows and damp clothes, feeble bent frame and sulking eyes. Somehow managing to sit. On the other side of the table, sat the manager; stern spectacles not displaying even slightest tinge of unease. Comfortable in that tie, he was trying his best to stay at ease in his easy chair. His full sleeves could not keep him warm enough but the farm loan heat was giving him cold sweat even at 18 degrees of the air conditioner.

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July 2015

Today, almost every rural branch of all Indian banks are witness to such sweating managers. A farmer, with sweat beads all over, requesting remedies over nonpayment of the farm loan and an apparently comfortable banker who is actually chocking under the rising non-performing assets or the NPA on the farm loan extended under priority lending rules. So what are the seeds of this undying and choking creeper of loans, its repayment (or otherwise) and the mounting NPA on agricultural loans?

Strange as it may sound but loans were in fashion, rather still are. I am talking about farm loans in particular. This is a symbol of prosperity in the Indian villages today. “Can’t you see he has a loan of one crore. What more proof do you need to say that he is rich?” This was a reply I received from a farmer of Nallur a small village in the Davangere district of Karnataka to a question as to how do they judge if a farmer was rich or not. Almost every second person in the villages of the Davangere

Agri Loan

Many big banks have high NPAs related to agricultural loans

district has taken a farm loan. Loans, devised to beneﬁt the farming sector that sustains nearly 70 percent of Indian population, have turned into a menace instead, for banks of course. The outcome of this initiative was some happy farmers during the niche period. Then came middlemen. Our farmers who were either busy or illiterate, took loans without understanding the nuances of the loans and its repayment process. Many didn’t even know how interest on their loans would be calculated or be compounded in years to come. On top of this, when the government introduced waivers, for ‘special’ conditions like droughts, ﬂoods and others, it sent across a wrong message. For instance, during 2000 to 2005, the rains failed and there was a drought condition in the Channagiri taluk in Karnataka. Repayment of loans was a farfetched thought; the farmers’ very survival was at risk. Considering the

situation, the central government waived off all agricultural loans. “This was to help the farmers but it sent a wrong message,” said Shambhu Lingappa, an employee of the Canara Bank in Davangere. He has been working with the bank for more than 20 years. He added: “Owning tractors had become a fashion in the villages. Even the farmers having as less as four to ﬁve acres of land took loans to buy tractors.” “Initially only people with land at least more than 15 acres were given loans for tractors but now even those who own less than 10 or even 5 acres take loans to buy tractors, just because their fellow farmer has it. It has become a status symbol for them,” said Lingappa. Another such case was of Pandomatti village in the Channagiri taluk. Two things are fashion statements here, areca nuts and farm loans. Almost every second person in this taluk has taken a loan of more than 5 to 10 lakhs. More loans symbolize that

one has more land and therefore is rich. C. G. Shivkumar, one of the farmers in this village proudly accepts that he has taken a loan of “about one crore” over a period of time. Shivkumar makes himself comfortable in an easy chair and details how during 2000-2005, the government had waived off loans as drought conditions had led to a miserable condition of the farmers. “1500 acres of our land went almost barren. It was a tough time, two meals a day seemed to be impossibility. But because all the loans were waived off I took fresh loans and now those 1500 acers have been revived.” said Shivkumar. While at the same time in the same taluk in the villages like Nallur and Mudigere, there are many farmers who are struggling to get loans. They do not have any money to buy new seeds or equipment. Farmers in Channagiri used to grow rice, ragi, paddy and other food crops. Gradually, over the last 20 years these food crops were replaced largely by areca nut plantations. The main reason for the shift was the high proﬁts from this commercial crop. However, with the prices of areca nut falling in the global market, increasing labor cost and low water availability, the prosperity period soon ended. One of these burdened farmers is C.M. Baswarajappa who is unable to repay the loans. He says, “I either feed my family or I pay back my loans.” The farmers said that at least they could have used traditional crops such as rice, ragi and paddy for their own consumption but areca nut could not be even be used for self-consumption. “I can’t eat it; we have to depend on buyers and the market price to feed our families now. Areca nut used to give high proﬁts but these days it is not.” said Mahadevappa, another farmer in Channgiri. The villagers in Nallur village

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Governance Today 31

Agri Loan

Many small farmers commit suicide because they can’t repay loans

said that they were already under debt because of the failure of areca nut farming. Now that the staple food production has gone down and is close to nothing, they buy them at very high rates. The prosperity period was also associated with wasteful expenditures financed by loans. The farmers had taken loans to convert their fields to areca nut fields; to dig bore wells and for other irrigational facilities; to buy machineries and so on, regardless of the requirement. It has come to haunt them now. The vicious circle was not only for the farmers but also for the banks and the government. More and more loans were taken as almost every farmer wanted to grow areca nut and in the same proportions increased the NPAs in the banks. On the other hand, big land owners are feasting. Shivkumar now pays off some amount every month as interest (which he does not even remember). He practices drip irrigation, has bore wells, uses fertilizers, and gets other facilities from the agricultural department. All these are provided or subsidized by the government, of course. He owns two cars and a big house. There are other farmers in the same village who toil the whole

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July 2015

day and try and repay their loans on time. However, Shivkumar does not even remember the amount he pays as interest which shows his careless attitude towards repayment of loans. If we go by the 2010-11 record of the lead bank of the district; total number of loans disbursed by the banks in the Davangere district was 546. The total amount that was disbursed was Rs. 493 lakh and this has multiplied ever since. And the situation is not isolated to Davangere, or Karnataka. It is the same story in every state. Any person who takes a loan is supposed to pay back the loan after one harvest season. If any loans bearer does not starts repaying the loan amount by the end of two harvest seasons then that loan is said to become a Non-Performing Asset for the bank, that is to say that the bank is not getting any ﬁnancial return out of that loan account. The tendency of dependence on farm loan has been increasing over the years. Only considering the PLD bank in Channgiri taluk, we ﬁnd that the farm loans of over Rs. 20 crore are being disbursed by banks every year. These loans include land development loans, loans for machinery, irrigation

and other farm activities. There are subsidies on seeds, fertilizers and other agricultural facilities. The government spends thousands of crores to provide these subsidies but they hardly reach the farmer in real need. Beneﬁts are mostly weaned by big landowning farmers who can afford to buy inputs at market rate and can repay loans at the going rate. The lead bank of the district said that the farmers who are consistent and pay the loans on time are the ones who suffer. An instance from Bihar of 2006-07 is noteworthy here. In a bizarre move, in that year, the Bihar government waived off the agricultural loans of only those farmers who had not paid back any amount. Those who were consistent and had started paying back on their loans, were not exempted from it. That’s punishing honesty in the worst possible way. An ex-chairman of Tumcos, a local agricultural body of the Channgiri taluk that provides assistance to member farmers including small loans, said that these pending loans are used as a trump card by the politicians in the taluk. Just before the elections, the candidates contesting elections assure the farmers that if they win all the loans would be waived off. The poor villagers believe their promises and vote for them. In some cases if the winning candidate is inﬂuential they do put pressure on Tumcos to waive off loans. The loopholes in the government policies have always been adverse for the poor. Same is the case with the agricultural loans. They were introduced for the poor but these hardly serve the interest of the farmers who actually deserve the schemes. The implication of these two situations only leads to the vicious circle of loan that not only entraps the marginal farmers but also the banks. The NPA keeps mounting while some irresponsible farmers wait for the magic spell — LOAN WAIVERS!

Farm Policy

INCREASING MSP Not Always Desirable

I Ramesh Kumar Raja he issue of minimum support price (MSP), a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices, is back in the news for quite some time now. Why would it not? The cabinet committee on economic affairs (CCEA) has increased the MSP for rice by Rs 50 per quintal in the 2015-16 season. This works out to a 3.6 per cent increase over the MSP of Rs 1,360

declared last year. The government has also substantially raised the MSP for all pulses and gave Rs 200 per quintal as a bonus over the Commission for Agricultural Costs and Prices proposal. The impact of MSP, however, will depend on how the monsoon plays out. If the monsoon is bad, the MSPs do not matter as market prices will be higher and farmers will prefer to sell to the trader instead of the government. But if the monsoon goes well and we have a

good harvest, the government may have to add a bonus to the declared MSP (on paddy) to prevent open market prices from crashing. The Cabinet decision, meanwhile, showed that the government was economically judicious even while it is focused on the politics. As per economist Sonal Verma of Nomura Holdings, â&#x20AC;&#x153;The stress in rural incomes could have forced the government to announce a higher MSP but by sticking to a modest hike the

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Governance Today 33

Farm Policy

Even though an attractive MSP emboldens a farmer to raise more of a crop that brings him better incomes, on the ip side, it can also lead to excess production of a crop, leading to a surplus and consequently, a crash in its open market price.

government has indicated that it is giving importance to economics over politics.” The hike of Rs 50 is modest and in tune with the hikes in past two years, given that cost of production have kept low and global food prices are at their lowest. “The hike is consistent with the fundamentals of the economy and will ensure that inﬂation remains stable,” Verma feels. Echoing Verma, Saugata Bhattacharya, chief economist of Axis Bank, believes the hike in MSP is politically generous and economically rational decision. He feels the hike balances the need to control inﬂationary pressures and it is a good, middle path that the government has chosen. “Although the hike is lower, we have to recognise that at this time last year, input prices were still high,” Bhattacharya compares. On the other hand, Ashok Gulati, former chairman of Commission for Agricultural Costs and Prices, feels the government could have been a little more liberal, and MSP could have been hiked more. Considering the MSP for moong, which was hiked by Rs 250 per quintal, tur (arhar) and urad support prices, which were each raised by Rs 275 per quintal, the development is expected to give a strong price indication to farmers to increase acreage and invest for increase in productivity of pulses. In the meantime, the Cabinet also directed that a credible procurement mechanism for pulses and oilseeds be put in place if the need arises. A decision to import pulses was also taken recently. It is expected that these measures complement endeavor to keep a

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July 2015

check on the price rise in pulses. According to Sudhir Panwar, a farmers’ leader from Lucknow, Uttar Pradesh, and a member of the state planning commission, the current NDA dispensation wants to keep crop prices low as managing food inflation is its top priority. So farmers’ profitability is sacrificed for the sake of the overall economy. As for pulses, he says, the issue is multi-pronged. “The ruling market prices are higher than the MSPs declared, the government does not procure pulses and it is rainfed and therefore, a risky crop. All these factors are leading to lower production and the hike in MSP is not going to correct the situation,” Panwar elaborates. It may be noted that MSP was first announced in 1966-67 in

MSP increase between 2004-05 to 2013-14 Wheat Rice Sugarcane Arhar Dal Urad Dal Moong Dal

9.1% 9.9% 12.2% 13.4% 13.2% 13.8%

the wake of Green Revolution to make it success. Initially, it was announced only for wheat but over time it was extended to cover more crops which has now reached 25, including foodgrain, pulses, oilseeds, sugarcane and cotton. The government decides the support prices for various agricultural commodities after taking into account the recommendations of Commission for Agricultural Costs and Prices, views of state governments and ministers, and other relevant factors. The Department of Agriculture and Cooperation implements the price support scheme for oil seeds and pulses through the National Agricultural Cooperative Marketing Federation of India (NAFED), which happens to be the nodal procurement agency for oilseeds

and pulses, apart from the Cotton Corporation of India. So, when the prices of oilseeds, pulses and cotton fall below MSP, NAFED purchases them from the farmers. Although experts are divided in their opinion about the role MSP plays in the agricultural economy, a higher MSP does not prevent an agrarian crisis every time, especially when it is caused by aberrant weather conditions. Even though an attractive MSP emboldens a farmer to raise more of a crop that brings him better incomes, on the flip side, it can also lead to excess production of a crop, leading to a surplus and consequently, a crash in its open market price. Not everything a farmer produces is procured under the MSP regime. Overly high MSP for a set of crops can also cause scarcity of the others, which are not offered attractive MSP. As such, the decision of increasing MSP has to be carefully calibrated with regard to market realities. A strong case in point is the preceding UPA government during which the farmers did not benefit from the big increases in the support price. While the MSP for wheat rose at compounded annual growth rate (CAGR) of 9.1 per cent between 2004-05 and 2013-14, Rice was up 9.9 per cent CAGR during this period. Similarly, Sugarcane was up 12.2 per cent besides arhar dal, urad dal and moong dal which were up 13.4 per cent, 13.2 per cent and 13.8 per cent, respectively. These hikes aided transfer of wealth from consumers to producers in rural areas. That helped raise rural incomes and the resulting wealth increased demand for consumer goods from rural areas, when demand collapsed in urban areas following the break out of the financial crisis. Correspondingly, wages of farm hands too increased, furthered by better price for farm produce as well as by the Mahatma Gandhi National Rural Employment Guarantee Scheme, helping a further rise in rural demand. This rural wage upsurge decelerated

Farm Policy

The government has been procuring foodgrains at higher MSPs despite unhealthy stock

towards the last two years of the UPA dispensation. However, increasing the MSP year after year is not always a healthy strategy as it gives rise to inflation. Food inflation has remained elevated for years now. It also alters cropping patterns and incentivizes farmers to grow certain crops at the expense of others. This has been happening for years now, especially with wheat. Sizeable quantity of wheat are procured at great price rots every year. Most of the godowns are overflowing, large quantities are stored in open and left to the mercy

of weather and rodents. A recent news report revealed that the quantity of foodgrains damaged in Food Corporation of India godowns across the country recorded a drastic jump over the last two years when the country lost more than 40,000 tonnes. Taking a cue from the given issue, the government should preferably use MSP as a means to incentivise farmers to produce more of what people are consuming, as it is well familiar that consumption patterns of people are changing. While the feasting of cereals is gradually shrinking, those of proteins such

as pulses and lentils are rising. Likewise, the consumption of milk and other dairy items is increasing. The country has witnessed severe dearth of pulses in the past, resulting in steep rise in its price. A sharp 30 per cent increase in the MSP for arhar dal in 2010-11 and then again a 20-30 per cent increase for pulses in 2012-13 helped bring more land under cultivation, thus helping control of scarcities and volatility in their rates. Deteriorating water table in certain regions is another area of concern. Steep hike in MSP for water-intensive crops is said to be one of the prime reasons behind it. Although it’s up to a farmer what he wants to cultivate, paddy, maize and sugarcane are among crops that should preferably be raised in the water-surplus regions. But we ﬁnd paddy being grown in Punjab where the water-table is falling and sugarcane being raised in areas around the drought-prone Marathwada. While rabi crops are said to be less water-intensive in comparison to their kharip counterparts, there are certain crops such as wheat which require more cycles of irrigation than other rabi crops like barley. Replacing wheat with barley, a highly water-efﬁcient crop, should be encouraged in semiarid regions such as Bundelkhand. Interestingly, as compared to wheat which requires six cycles of irrigation, barley needs only three. Even the input cost of barley production is 50 per cent less. At the same time, production and market price of barley is 20 per cent more as compared to wheat which makes it a very attractive proposition for the farming community. Considering the current reality – surplus supply of a given crop and its falling consumption – the government should encourage farmers to shift to crops that require less water. Only then the issue of MSP can be resolved, if not fully, then partly, for sure.

July 2015

Governance Today 35

GM Crop

Genetic Games on Indian Plains I Sagarika Ranjan

Once upon a time ME had walked across his field satisfied with his yield. The sand clock ticked ME’s calculations were rigged He didn’t realize! That ‘Suit-clad gentlemen’ told fancy tales You can feed millions, just try the new sale. ME fed his fields the new feed All were killed but the weed. ME’s oxen collapsed, so did ME’s crops Infected and one-legged now, ME hops. ME belied nature, showed distrust She punished ME with her barren crust. One of ME’s sons had an external heart another never had ears while daughter was born blind. Today Hundreds of ME walk up to the morgue to collect their babies...

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July 2015

o how many wish to be the ME? Me is the result of fiddling with nature and the natural process of agriculture. Green revolution promised to feed all and bring about prosperity but it turned out to be short-lived. Again this new child of science – genetically modified organism or the GMO has popped up with similar promises and sadly, with likely same results. This was introduced to make lives better across the world. More food, less investment, more food at better prices and so on were the expectations from this new venture but if experts are to be believed this has failed miserably. The field trials have also gone horribly wrong at multiple occasions. As Jeffrey M smith, Executive Director of the Institute for Responsible Technology (IRT), says, “Due to cross pollination, seed movement and human error, GMOs from field trials have contaminated nearby non-GMO crops of related species or escaped into the food and agricultural chain. We have no way to clean up the self-propagating

contamination of the gene pool, which means that the potentially damaging crops may be passed on to future generations.” Experts at the Institute for Responsible Technology explain that the current generation of GMOs is based on a primitive technology and false assumptions. As per the International Assessment of Agricultural Knowledge, Science and Technology for Development or the IAASTD report, sponsored by the United Nations and World Bank, the GMOs have nothing to offer their goals of feeding the world, eradicating poverty, or promoting sustainable agriculture. The co-chairman of the report even declared that GMOs have yet to satisfactorily solve any problem. In India the claims of the GMO are still under trial but in other countries these claims have failed miserably. The biotech industry claims that GMOs increase yields. In the US, reports by the US Department of Agriculture and the Union of Concerned Scientists both demonstrate that GMOs do not, in fact, increase yields, but often

GM Crop reduce yields. Other countries show similar trends. The biotech industry claims that GMOs reduce the need for pesticides. But data in the US and elsewhere show the opposite. In the first 16 years of GMOs, herbicide use increased by 527 million pounds. And although there was a much more modest decrease in insecticide applications on Bt crops, the statistics were distorted. In fact, these crops produce an insecticide within every cell, and that actually increased the insecticide load on the land and consumers. Furthermore, most of the GMO seeds are coated with yet another insecticide. When taken together, even the Bt crops increase overall pesticide use as well. This is not all, GMOs also damage soil biology, reduce biodiversity, harm beneficial insects, concentrate power into the hands of a few multinationals, reduce farmer independence, and are consistently rejected by a growing number of markets, say experts at the IRT. The evaluation of the genetic engineering assessment committee by the Indian Supreme Court appointee Dr PM Bhargava made it clear that the government’s process for assessing GMOs is a faulty. Dr Bhargava pointed out that there are about 30 categories of health and environmental impacts that need to be evaluated. But only about 10 per cent of these have been looked into. And these only comprised of superficial studies by the industry themselves, hence worthless. So in effect, no GMO has been properly tested anywhere in the world. This is precisely what hundreds of scientists have been saying all along, but have been drowned out by the considerable economic and monetary influence of the GMO companies. The ITR experts say that

unfortunately, the government has been taken in by the coordinated public relations campaign, which makes claims about GMOs that ignore the science as well as the potentially devastating impacts on the economy. For example, the government has allowed ﬁeld trials to take place on crops that have never been properly tested for their impacts on human and animal health. Based on the now overwhelming evidence of problems with other GMOs, there is a high chance that these foods can cause health issues. The threats are grave. If contamination occurs, it can lead to massive economic problems— whether or not the GMO is safe. If the crop is not approved, contamination can lead to closed markets, recalls, and crop

destruction. Three incidences of GMO contamination in the US cost approximately $1 billion each. Based on the reports of India’s ﬁeld trial protocols and implementation, contamination is highly likely. Can India afford economic cost of a failed or botched test? The ITR is of the opinion that the wellmeaning Indian government has been presented the baseless public relations talking points of the biotech industry and their supporters in the US government, and as a result has moved forward on GMO policies that are not backed by accurate scientiﬁc facts and the wisdom of experience gained in

other countries. From an economic standpoint, the introduction of GMOs is often accompanied by closed export markets and reduced prices. When the US introduced GM corn, for example, Europe ceased its $300 million corn imports. Canada also lost its canola and honey market in Europe. When GMO companies convinced politicians in Australia to lift their moratorium on GMOs in certain states, it was a disaster. Japan shut its doors to the GMO variety, contamination hurt nonGMO farmers, and the GMO canola variety sells for about $50 per ton less than the normal one. GMO cotton has been hyped by industry around the world, but closer examination reveals that it is inconsistent and often a disaster as well. It was rejected in Indonesia due to poor performance. The biotech industry was claiming for years that South African GMO cotton was a success, whereas the data came out later demonstrating it was an abject failure. GMO cotton in China originally required less insecticide, but due to shifting insect pressure, a report from Cornell University showed an increase in sprays by 15 to 20 fold. In Burkina Faso, cotton yields from GMO varieties have incurred losses since 2008, prompting Inter-professional Cotton to phase it out over the next three years. They will also ask Monsanto to pay for repeated losses. The reports out of India on cotton are varied and often conﬂicting. It’s clear that the GMO varieties are not reliable and typically require irrigation and conditions not often found throughout the country. The widespread failure of Bt cotton in many regions is tied to a huge number of suicides. Based on considerable scientiﬁc evidence, we now know that the

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Governance Today 37

GM Crop

Some restaurents have started offering GM-free menus

current generation of genetically modified organisms is not safe and therefore GMOs should not be used in the food supply. Thousands of US physicians now prescribe nonGMO diets to all their patients. When their patients remove GMOs, many describe significant, even dramatic improvements in health and alleviation of symptoms, such as gastrointestinal, immune, and reproductive issues. The same types of problems also clear up in livestock that are taken off GMO feed. And these same issues afflict lab animals fed GMOs. We don’t think it’s a coincidence that these disorders are also on the rise in the US population since GMOs were introduced in 1996. Furthermore, the two primary toxins found in GMO foods—Roundup and Bttoxin—have characteristics that would predispose individuals to these types of conditions. Brooding on the stand of the

Indian government on the GMO, the ITR says that the biotech industry has a history of hijacking certain governments and ministries, convincing them that GMOs are needed to feed the world and save the economy. They give the false impression that a country will fall behind and be scientiﬁcally backward if it delays the introduction of GMO technology. “It appears that the national government of India has succumbed to these myths and is moving forward as a result. They have ignored independent scientiﬁc research and are recklessly gambling with the health and environment,” said Smith. He further adds, “I can certainly understand why the biotech industry, in collaboration with the United States government, lobbies very effectively and repeats the same talking points over and over until politicians and others

Area under GM cultivation

COUNTRY

CROP AREA IN MILLION HECTARES (2014) 73.1 42.2 24.3 11.6 11.6 3.9

United States Brazil Argentina India Canada China

There has been more than 100 fold increase in GM crop acreage between 1996 and 2014 38

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believe that they are true. They wield inﬂuence by investment in academia and agriculture. It is often difﬁcult for well-meaning politicians to identify the fraud behind the promises.” India needs to rethink the future of agricultural development through GMO as the rejection of GMOs by consumers is mounting worldwide. India, unfortunately, is still moving ahead with the GMO. Reports show that in the US, surveys show that 40 per cent of Americans say they are reducing or avoiding GMOs in their diets. More than 30,000 products have labels declaring non-GMO, and even restaurant chains have big signs on their windows declaring “A Farewell to GMOs.” “The US is undergoing a tipping point, similar to Europe’s more than a decade ago, where food companies are rushing to rid their ingredients of GMOs. It won’t be long before the US market kicks out GMOs altogether,” said Smith. More than 400 scientists and agricultural experts who prepared the IAASTD, UN and World Bank report declared that Agro ecology is the way forward. In developing countries, Agro ecology can increase yields by 100 percent or more, in contrast to the GMOs. It is also suitable for the Indian economy as it just not involve high input cost. Agro ecology reduces the need for expensive inputs, reduces dependence on transnational corporations, provides greater income and security for farmers, generates biodiversity, and is customized for the climate, geography, and culture of the region. India is ideally suited to take up this prized technology, according to Smith. Still trials are on and India is on the track to start to embrace this technology that has been rejected world over. Now, whether India will retract in time or will suffer like the other countries before abandoning GMO is debatable.

Pittance

COMPENSATIONS TO FARMERS Adding Salt to Injury

I Ritika Bisht

ver a span of last couple of months, two similar and shocking news hit the headlines. First came from the state of UP where government distributed compensation cheques to farmers whose produce were destroyed by the unseasonal rains in March this year. Some farmers in Badaun district were paid a compensation of Rs 75 and Rs 100. After the news came to light, some revenue ofﬁcials were suspended. Elsewhere, the J&K government issued compensation cheques ranging from Rs 32 to Rs 113 to farmers who lost their crops in the devastating ﬂoods last year. In 2013, farmers in Haryana were issued cheques of Rs 2 and Rs 3 as compensation. Why is it that our government is always in news, for all the wrong reasons, when it comes to solving the issues of our farming

community? In a country which depends so heavily on agriculture for its survival, this is not something to be proud of. While all political parties cry hoarse on how much they care for farming community, the continued apathy of successive governments in addressing farmers’ most pressing needs is beyond rational understanding and borders insensitive. Its not without reason that farmers’ protest are a common scene in Delhi, where they converge from across the country with hope and demands. Compensating farmers for the loss of their produce is one of the pressing problems that continue to boil over low amount given by the government. The unseasonably heavy rains, unexpected hailstorms, and drought are a common phenomenon and what follows next is farmer’s agony and struggle to stay aﬂoat. When nothing seems to work, then suicide appears to be

the only solution for many farmers. It seems like a never ending feud as our farmers have been robbed by our government policies every now and then. It is not only our media that has been focusing on this matter as increasing number of suicides committed by farmers has now become a global issue. Government policies for agriculture have never been friendly; the rate at which farmers committed suicide witnessed a sudden spike in 1997 when government removed subsidies for cotton. When it comes to climate change farmer suicides tend to increase along with any unexpected weather phenomenon that tends to damage the crops. As per the ﬁgures from the Ministry of Agriculture, the total number of suicides committed by farmers for agrarian reasons in the last three years stands at 3,313. According to a UN report titled

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Governance Today 39

Pittance

Farmers often get pittance for compensation

International Farmers Suicide Crisis, on an average, there has been one farmer’s suicide every 32 minutes since 2002. Though climate change has been cited as the prime reason for farmers’ suicides in India, it is also the government policies for agriculture that has to share blame for imposing additional hardships. While we do not have any control over the uncertain climate change the government can certainty decide what compensation policies to formulate to bring relief to the farming community in distress.

Unexpected Climate Woes In a report titled Global Climate Risk Index 2015, India has been ranked among top three countries that were affected most by weatherrelated loss (storms, ﬂoods, heat waves) in 2013. As per experts, these devastating events, especially unexpected weather patterns, will continue to rise. According to India’s Intergovernmental Panel on Climate Change, rainfall patterns in peninsular India are expected to become more erratic with a possible decrease in overall rainfall and an increase in extreme weather events. The agrarian community facing the vagaries of weather has become a phenomenon that comes every year and the government passes this situation with meager

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July 2015

compensation. This comes as a double whammy for farmers who are already facing the wrath of low rural incomes and weak global food prices. Many farmers, unable to fend for themselves and left in lurch by the government, commit suicide. In 2009, country witnessed its worst draught since 1972, and 17,000 farmers killed themselves in the same year (National Crime Records Bureau). But the government says there is no clear link of drought to farmer suicides.

Minimal Financial Support The amount of compensation offered by different state governments has been shocking. After the unseasonal rains damaged the crops in Uttar Pradesh earlier this year, government’s so called compensation aggravated the problem for farmers when they were handed over cheques worth almost nothing as mentioned above. Total compensation of the state government was Rs. 500 crore despite the assessment that the damages in 40 districts alone was worth Rs. 1100 crore. In Haryana, where compensation as low as Rs. 2 were paid to farmers of Jhajjar district, farmers alleged that ofﬁcials deliberately miscalculated the loss to the crops by understating the damage during their ofﬁcial survey. Upon asking for photocopies of the cheques,

farmers handed over the original cheques as photocopy would have cost more than the compensation value. In Jammu and Kashmir, to everyone’s surprise, the government defended their compensation amount saying cheques were distributed after carefully assessing the losses by the revenue department and panchayati raj institutions. These are just a few examples of the pathetic conditions in which our farmers have been left by the government. Similar is the case across the country in other states and in different regions. In all the cases, farmers had refused to cash in the cheques and some others straightaway turned down the compensation amount. Can we really blame farmers for their anger when all they wanted was reasonable support from the government and what they get in return for their damaged crops were peanuts. Anoop Sadanadan, a professor of political science at Syracuse University, states that increasing number of farmer suicides is attributed to ﬁnancial woes rather than agricultural practices. Such is the plight of our farmers that he is titled as the breadwinner of the nation who himself struggles to provide for his own family.

Policy Defaults Even though Prime Minister has announced increase in compensation amount by 50 percent to the affected farmers, the policies are not going to make this move a success. A circular by the disaster management division of the Union home ministry stated chief secretaries to compensate farmers from the State Disaster Relief Fund (SDRF) and get it reimbursed from the national fund. However, this assistance is only applicable for a ﬁrst disaster in a ﬁnancial year; which means in case nature decides to strike again then no adjustment will be made while

Pittance releasing National Disaster Relief Fund (NDRF). The compensation amount ﬁxed by the central government is Rs 4,500 per hectare in non-irrigated areas (those places with no government irrigation facility) and Rs 9,000 per hectare in irrigated area. According to Pushpendra, a farmer activist in Banda district of UP, even if the state government was paying Rs. 9000 per hectare as crop damage compensation in non-irrigated areas and Rs. 18,000 per hectare in irrigated areas the amount is far less than it should be as the compensation must be more than the input cost per hectare. Also, the compensation amount will be limited to farmers with a maximum 4.9 acres of land which implies that more than half of the farmers won’t be eligible for compensation. At present, the compensation amount depends on crop variety and the respective state. After PM Modi orders, this monetary beneﬁt would increase and farmers would be entitled to compensation even if 33 percent of their crop is damaged

Policies have been formed, reformed and changed to match the requirements of farming population but increasing number of suicides by farmers due to unexpected natural calamity is proof enough of how government (no matter which party is on the ruling seat) has failed them every now and then when it comes to compensating them for their losses.

as against current practice of paying compensation only if more than 50 percent of the crop has been damaged. Even with flaws the increased compensation and simple eligibility criteria will benefit farmers. But all comes down to how efficiently and swiftly the compensation reaches the farmer as delay in receiving compensation pose another serious problem. Assistance for crop damage should be an immediate move but it often reaches farmer after more than a year. Moreover, it has been noted that segregation of areas based on 33 percent or 50 percent crop damage depends on subjective whims of officials. Although central and state governments, insurance companies and banks are collaborating to help farmers in crop damage situation but our agrarian community asks for some realistic ground work

from the government officials and then rectify the internal systemic defects. Policies have been formed, reformed and changed to match the requirements of farming population but increasing number of suicides by farmers due to unexpected natural calamity is proof enough of how government (no matter which party is on the ruling seat) has failed them every now and then when it comes to compensating them for their losses. More than assurance, our farming community needs the confidence that the government is there to take care of them in case of exigencies, but till now successive governments haven’t done enough to instill that confidence in farmers. Unless and until that happens, our farmers, who are so routinely paid tribute to by politicians, would continue to lose their livelihood and their lives.

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Governance Today 41

Interview

FLAGSHIP INITIATIVES BEING PROMOTED BY THE GOVERNMENT OF INDIA CREATE INTERESTING ROOM FOR COOPERATION

Dr. João Cravinho is the Ambassador of the European Union to India. Prior to his posting in New Delhi, Dr. Cravinho served as the Secretary of State for Foreign Affairs and Cooperation, Government of Portugal, from March 2005 to June 2011. Dr Cravinho holds a doctorate (D.Phil) from St. Antony’s College, University of Oxford, and has taught at various European and American universities. 42

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Interview uropean Union (EU) is a powerful group of twenty eight European states and is one of the biggest engines of the world economy, along with the US and Japan. Europe is also the largest of India’s trading partner and the largest investor in Indian economy. Needless to say, European Union and India are highly important for each other. In a conversation with Anand Mishra and Rajesh Mehta, the Ambassador of the European Union to India, João Cravinho spoke in detail about the current status and the future direction of India-EU relations, and the various crucial ways in which the two can cooperate. Edited excerpts:

There is a feeling that India EU relations are floundering as the EU India summit has been delayed. How do you react to that? EU and India have been strategic partners for more than a decade now and have very strong political and economic ties. We continue to be its biggest trade partner, and biggest source of investment and technology. There was a possibility that the summit might happen in April. Although, it couldn’t take place due to logistical challenges. I am conﬁdent that the EU-India summit will be able to take place by the end of this year.

Apart from that, ﬂagship initiatives being promoted by the Government - Make in India, Digital India, Clean Ganga mission, Smart Cities etc. - create interesting room for cooperation. The EU has vast experience in dealing with challenges such as infrastructure, development of a manufacturing base, pollution, water treatment, renewable energy; and we are keen to share these expertise and experiences with India. Recently we had counter-terrorism and cyber-security dialogues with India in Brussels. EU-India Counter Terrorism consultations covered bilateral co-operation in this ﬁeld and the terrorist situation in West, Central and South Asia. The cybersecurity dialogue was again, an excellent opportunity for the EU and India to discuss challenges in cybercrime, internet governance, standards and regulation, capacity building and research & development from an international policy perspective. Also, there are issues of global governance, with climate change in the forefront. We have the Paris conference (COP21) at the end of the year. India and EU both are major players in the global governance and if we can engage in constructive dialogue, we can

have a considerably enhanced inﬂuence in global negotiations.

Where do you see the talks on EU India FTA going? What are the developments on that front? The latest developments have been quite positive. The EU has clearly expressed strong interest in resuming talks after a pause of two years and we have received encouraging messages from the Government of India. Now it is time to get back to the negotiating table and discuss in a constructive way the relatively small differences that still exist. I say ‘relatively small’ because I compare them to the potential advantages of a Bilateral Trade and Investment Agreement (BTIA). The EU’s Trade Commissioner Cecilia Malmstrom recently met with Minister Nirmala Sitharaman on the sidelines of an OECD meeting and both leaders agreed that the negotiating teams should meet and address the outstanding issues as early as possible.

How do you think the two sides can cooperate on multilateral bodies such as WTO? The EU has always been, and continues to be, a strong supporter of the WTO and we are happy that

What are the major area of potential cooperation between India and the EU? In terms of economic cooperation, there is a lot we can do together. Let us not forget that our economies are complementary: India exports to the EU primarily raw material and ﬁnished products, while the EU exports to India mainly semi-ﬁnished products. Trade certainly has a lot of potential to grow further. India EU trade has stagnated of late

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Governance Today 43

Interview India also sees the WTO as the linchpin of the multilateral trading system. In this respect, the EU and India view the Bali agreement as a landmark success for the WTO. In particular, we are very pleased that late last year India unblocked the impasse at WTO by resolving its differences on the issues of public stockholding for food security, while WTO Members have taken the commitment to ﬁnd a permanent solution. As regards trade facilitation, the EU and India have always been

The Doha round, which is geared speciﬁcally to the needs of the least developed countries, must go on and we do hope that a conclusion can be reached by the next WTO ministerial in Nairobi (in Dec. 2015). I am certain that the EU and India will work intensely to reach a satisfactory conclusion.

blocs has more than doubled in the last ten years, but it has stagnated in the last four. It is time to expand this further. The BTIA would allow both EU and India to tap into this huge potential.

How do you see the trade and investment relation growing between India and the EU?

EU companies have the knowhow, skills and knowledge to contribute substantially in sectors like telecommunications, ports, roads, power generation and distribution, transport, waste and water treatment, etc. The role of EU institutions is to facilitate the involvement of these companies in the realisation of such big Indian projects. Of course, it is important that the Government of India facilitates it by ensuring a business-friendly environment, with clear, enforceable and non-discriminatory laws and regulations.

There is big room for improvement,

How do you see EU contributing to the huge infrastructure requirement that India has?

How do you view the recent initiatives of the Narendra Modi government such as Make-in-India, Swachh Bharat and Clean Ganga Initatives? How can EU help in these initiatives?

supportive and India, considering its current ambitious economic reform programme (make in India, ease of doing business etc.), will certainly beneﬁt a lot from the implementation of a trade facilitation chapter. But important work in the WTO continues. The Bali package was only a ﬁrst step.

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July 2015

and I have no doubt that it will happen. Today, the EU is India’s first commercial partner, with a bilateral trade flow of around US$ 100 billion; this flow is balanced, unlike the one with China, where India records a growing deficit. The EU is also India’s foremost foreign investor. Trade between the two

These are very important and forward looking initiatives for India. The Government is still rolling out the details of those programmes and the EU is keen to participate. Make-in-India is a rightly ambitious programme and has the potential to create growth and jobs on a large scale; but, in order for it to succeed, the government must ensure that India is well integrated in the global value chain which dominates manufacturing in today’s world. This is one more reason to conclude a BTIA, which would allow greater investments and exchanges between EU and India. On our side, we are implementing

Interview several programmes to facilitate business in India, like the Capacity Building Initiative for Trade Development (CITD) and the European Business and Technology Centre (EBTC) which is active in sectors such as energy, environment, sustainable transport and biotechnology. As mentioned above, we are also keen to co-operate with India’s authorities on Smart Cities (we already have an ongoing cooperation with the Municipality of Mumbai) and Clean Ganga. The EU companies have stateof-the-art technologies for infrastructure, urban development, clean and renewable energy etc. They can play a vital role in the success of these commendable initiatives.

in India. Could you please throw some light on how it is progressing? Skill Development is one of the key areas for cooperation between the EU and India. Vocational training was included as a priority for the wide-ranging EU-India dialogue on education initiated in November 2008. To increase employment opportunities for young people, women, and poor families and disadvantaged communities, the EU has funded 9 projects covering 22 states in India and 250 BRGF (Backward Regions Grant Fund) districts where regional

projects have also supported the development of state-level policy frameworks; the assessment of demands for various skills; and the building of these skills in various sectors. Additionally, the EU is working in partnership with the National Skills Development Agency to contribute to the implementation of the Skill Development Policy, and increase the number of certiﬁed skilled labour in various sectors of employment. The project is being coordinated with the MoLE (Ministry of Labour

A large number of Indian SMEs feel that there is a big market in the EU for their products and services. But they find it very hard to get suitable information and platform which can help them. Is there any mechanism through which you can address their concerns/ information requirements? In the EU, exactly like in India, SMEs represent a big chunk of the economy and we appreciate their need for correct and timely information. Understandably, their entry into a foreign market is more challenging than for bigger and richer companies. That is why we strive to make all the needed information available. For example, we have an online information portal, called “EU Export Helpdesk”, which is a one-stop-shop for information for exporters to the EU market on EU tariffs, technical regulations, rules of origin, environmental requirements etc.

Skill development has been a major thrust for the EU

imbalances in development need to be redressed. This set of skill development projects has helped youth from marginalized communities to overcome their vulnerability with better bargaining power and market-relevant skills. The

& Employment) and MHRD (Ministry of Human Resource and Development). Sharing European expertise in this area, the project aims to develop and maintain a national qualiﬁcation framework for India, and set up a labour market information system.

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Governance Today 45

Ecology

WATER POLLUTION IN INDIA SEEN BUT NOT HEARD I Ritwajit Das ater pollution is a paramount problem in India as almost 80 per cent of its surface water resources are contaminated. Nearly 60 per cent of India’s ground water reserves are already contaminated with toxins biological, organic, and inorganic pollutants. These contaminated sources have been declared unsafe for human consumption as well as for other activities, like; agriculture and industrial usage. The constant downward slope of degraded water quality in India can contribute to water scarcity in terms of human use, industrial purpose and for the effective functioning of ecosystem. The Central Pollution Control Board (CPCB) first identified this alarming menace associated with water contamination in early 90’s. It categorically listed 18 major rivers in India as unfit for any domestic and industrial water usage. The water sources are mainly contaminated in and around of Indian cities, towns and other urban settlements. Indian urban space severely lacks customary water-resource recovery and pollution prevention protocols associated with industrial and domestic sector usage. Agronomic activities like unsustainable irrigation practices, extravagant

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July 2015

application of fertilizers and pesticides has created a further negative spin-off. The groundwater table in nearly 23 states, including the national capital, are declining at an alarming rate. Heavy mental and geo-genic contamination including salinity, iron, ﬂuoride and arsenic have affected ground water reserves in over 240 districts. The water contamination and scarcity, if not earnestly taken care, is going to affect India’s economic and social development in a very drastic way. Water is a remarkable environmental resource which is regenerative and balances itself with self-regulatory cycles and mechanism. Water can absorb pollution loads to a certain threshold level without affecting its biochemical integrity and if pollution exceeds this threshold level then biochemical properties associated with water becomes counter-productive. The economic attributes associated with balanced and quality water sources are huge; unpolluted water provides beneﬁts such as reduced water-borne diseases, savings in the cost of supplying water for household, industrial and agricultural uses, control of land degradation and

development of aquaculture related industries. Clean water can also contribute positive externality like better quality environment, aquatic life, better ecosystems and biodiversity enhancements.

Magnitude of Water Pollution in India The status of water quality and monitoring results are mainly carried out by CPCB with respect to the indicator of oxygen consuming substances and pathogenic bacteria. Data collected that water quality has gradually degraded over the years. The number of observed sample with BOD values less than 3 mg/l were found to be between 59-70 per cent. The main cause for water contamination is the discharge from domestic as well as industrial bodies which are mostly untreated. Further, in urban India, pollution prevention lacks in every steps of the due process. The receiving water bodies also don’t have adequate water-flow for dilution. Therefore, the oxygen demand and bacterial pollution gets enhanced. Household-borne effluents contribute a substantial proportion of water pollution in India. Untreated effluents from households radically pollute surface

Ecology and ground water source. Local urban bodies like city corporations; municipalities and panchayats and are supposed to treat the effluents as per national water pollution standards or minimum national standards. But almost 85 per cent of the effluents are not treated and directly disposed off into the environmental media, say, river. CPCB provides sourcespecific pollution standards for industries with respect to pollution concentration of major water pollutants: (BOD), chemical oxygen demand (COD), suspended solids (SS), and pH levels. CPCB launched a water pollution control program in 1992 for industries. It identified 1,551 large and medium industries, and gave a time schedule to these industries for compliance with prescribed standards. It was found that many of these industries did not comply with prescribed pollution standards despite having effluent treatment plants (ETPs). Only 59 per cent of the large and medium industries have adequate effluent treatment facility. Agricultural run-offs carrying fertilizers and pesticides which severely affect groundwater and surface water sources have no treatment at all. Fertilizers have an indirect adverse impact on water resources through a biochemical process call biomagification. Also, India has a rickety infrastructure with respect to monitoring stations and apparatus for monitoring water pollution. There is an immediate need to upscale the number of monitoring stations.

year, and the country loses about Rs. 380 billion each year due to water related diseases. Poor water quality, sanitation and hygiene results in the loss of 30.5 million disabilities adjusted life years (DAILY) in India. Groundwater contamination with chemicals is another big health hazard. Vast tracts of India are contaminated with fluoride and arsenic. Fluoride problem exists in 200 districts in 20 states in the country with Orissa and Rajasthan being critically hit with this problem. High concentration of fluoride in drinking water causes fluorosis resulting in weak bones, weak teeth and anemia. The presence of arsenic a cancerinducing agent in groundwater of the Gangetic belt causes health risks to 40-90 million people in Bihar, West Bengal and Bangladesh. If India had made efforts for mitigating these effects by providing better sanitation facilities and doing abatement of water pollution the required resources would range between 1.73 to 2.2 per cent of GDP.

Regulation of Water Pollution in India Policy response with water pollution in India can be categorized into formal and informal measures.

It is the duty of the government to stem negative externalities associated with water pollution through effective legislations.

Formal Regulation The environmental policy in contemporary times has accepted the importance of the role of incentive based policy instruments in controlling and preventing environmental pollution. Formal regulations may be classiﬁed into two categories. State intervenes in the form of legislations and policies, and public investments for environmental cleaning activities, such as the Ganga Action Plan (GAP) and the Yamuna Action Plan.

Laws for Controlling Water Pollution in India The laws related to control water pollution in India is very straight jacketed and sharply directed to water pollution and related activities. Water Act (1974) and Water Cess Act (1977 and 1988) are two foundational legislations in this regard. The Act related to water cess is more of a revenue generating legislation than measure to limit the unsustainable consumption of water by industrial units. Pollution control boards at the central and state levels are empowered to prevent, control and mitigate

Downshifts of Water Pollution Lack of proper water, sanitation and hygiene directly results in the loss of 0.6 million lives annually in India. Water contaminated factors contribute to 60 years of ill health per 1,000 population in India. Around 1.5 million children under 5 years die each year due to water related diseases, 200 million man days of work are lost each

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Governance Today 47

Ecology water pollution and to advise governments on water pollution and management.

collective action in industrial water pollution abatement.

Policy Propositions Informal Regulation and People’s Participation Economic mechanisms with command and controls are means of formal regulation. The designing and implementation of these means involves a top- down or a centralized approach. The success of these instruments in controlling pollution depends upon the quality of governance and its ability to incur high transaction costs. A bottom-up or decentralized regulation involving civic society and local communities and with a very limited role of the government could save transaction costs and get rid of political and bureaucratic corruption. Collective action in industrial water pollution abatement is meant to bring about necessary institutional changes that are compatible with the choice of cost saving technologies. For example, a Combined Effluent Treatment Plants (CETP) can be adopted if necessary legislation is in place to define the property rights of the factories and the affected parties. A CETP for an industrial estate confers the benefits of saving in costs to the factories and the reduction in damages to affected parties. There are many incentives for polluters, affected parties, and the government for promoting

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July 2015

The policy recommendation can be segregated into four major components: Enhancement of monitoring and review water stations: measuring water pollution, estimating benefits from reduced pollution, and designing regulatory instruments for environmental improvements require interdisciplinary approach. There is an urgent need of increasing the number of monitoring stations in India to levels found in developed nations for effective monitoring. Revising the industrial water norms to be more stringent: An effective industrial water pollution regulation policy requires the use of a combination of regulatory instruments consisting of economic instruments of pollution taxes and marketable permits, informal regulation by local communities, and direct public investments for environmental improvements. But India still uses command and control regulatory instruments for water pollution abatement resulting in some big industries having effluent treatment plants and many industrial estates housing small-scale industries having common effluent treatment plants. The effectiveness of these facilities in reducing water

pollution is unclear. Building capacity of local municipalities: In India, municipalities have the treatment capacity only for about 30 per cent of the wastewater generated in urban areas. This evidently indicates a gloomy picture of sewage treatment, which is the main source of pollution of rivers and lakes. To improve the water quality of rivers and lakes, there is an urgent need to increase the sewage treatment capacity and its optimum utilization. Conditioning intergovernmental fiscal transfers from state governments to local bodies on the basis of wastewater treated could be an effective instrument for strengthening the financial position of municipalities. It will not only strengthen the financial position of local governments but also help in addressing the problem of domestic water pollution. India has defined wastewater discharge standards for the domestic and industrial sectors, there are no discharge standards for the pollution emanating from agriculture. Setting review processes and procedures for agricultural water usage: Agriculture is the source of non-point water pollution and agricultural water pollution is linked, among other things, to the use of fertilizers and pesticides. Therefore, corrections in fertilizer and pesticide and electricity pricing policies could be an instrument for addressing the non-point water pollution in India. It is high time the policy makers do something about the deteriorating water quality of the country. The loss of life, health and ultimately economic and social costs are unimaginable and must be avoided by sensible and timely intervention. (The writer is an international research consultant working in the area of environment, urbanization, climate change and sustainable development)

Women Safety

Are We Thinking Enough for Women Commuters? I Ritika Bisht n my recent road trip back to home from a meeting, I decided to book a cab via one of the apps. The reason being I do not prefer to travel via public transportation because of extreme rush and thus wanted to travel comfortably in a private a/c cab. However, comfortable is not a synonym for safe. Women travelling in private cabs have also been a victim of rape and sexual harassment which has resulted in banning of these cab services with police impounding hundreds of vehicles. With limited number of cabs, I somehow got one for my journey. The question being why did I go ahead with the private cab even after some of the unfortunate incidents? Surprisingly, the cab driver asked me the similar question; my answer being “I fear being harassed in public transport and as far as cab service is concerned others should not face the consequence of a single person doing.”

I was honest in my opinion as I personally feel that apps available for cab bookings have made my life easy and I do not want these cabs off the road. I can travel back and forth from home to office, from office to other offices for meetings and ultimately return home without feeling lethargic which I feel in public transport because of scorching weather. Moreover, most of these cabs rental is equivalent to auto fare. As far as the conduct is concerned, the cab drivers have been good and answer only upon asking. It does not mean that I completely support cab-app approach as there have been unfortunate incidences with women and thus cab service providers need to be more cautious to ensure the safety of passengers, especially females. Having said that, the decision of government to ban cabs from the city does not ensure the safety of women as cab is just one aspect of transportation system. Women for long have been complaining about

harassment they face when they travel via any public transportation mode. Women in New Delhi have continuously complained of eve teasing, groping and sexual innuendoes while travelling in buses. According to National Crime Records Bureau 2013 report, a total of 309,546 cases of crime against women were reported in the country in 2013 as compared to 244,270 in the year 2012, thus showing an increase of 26.7 percent during the year 2013. Increasing number of reported and unreported cases of violence and harassment make it difficult for women and girls to travel alone within or outside the city, irrespective of what time it is. In 2014 Thomas Reuters Foundation conducted a poll in 16 of the world’s largest capitals to find out the most dangerous cities for women in terms of public transport; not so surprisingly, New Delhi ended up in fourth place with Bogota ranked first (worst) overall. None can forget the December

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Women Safety

Incidents like Uber cab rape case make women think twice before taking cab

2012 incident when a 23-year-old female physiotherapy intern was beaten and gang raped by 6 men in a private bus in New Delhi. The brutal rape caused the public outrage against government’s failure to provide adequate security for women which subsequently led to naming New Delhi as the ‘rape capital’. Innumerable incidents have happened after the Nirbhaya case wherein women were sexually harassed in public transport but hardly any government led improvement has been seen on ground. Not surprisingly, increasing number of women are resorting to self defense stuffs like Swiss knife, pepper spray and even stun guns.

Importance of Mainstreaming Gender in Transportation: The city’s transport can either improve or deteriorate the travel life of women. Men and women have different travel and transport needs due to their different social

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July 2015

and economic roles and activities. Not only this, women face different constraints than men in accessing and using different mode of transport services. World Bank report Mainstreaming Gender in Road Transport, 2010, explained that whether it is in urban or rural areas, women tend to make more complex trips than men. For women, transport provides access to different resources as well as opportunities like jobs, childcare, education, and healthcare facilities, whereas men are far more likely to rely on private vehicles. Nevertheless, women safety during transit is always overlooked. Because women and men have different transport needs, they have different priorities for seeking or not seeking certain modes of transport. A key factor that determines women’s travel patterns and use of public spaces is personal safety, especially after dark. At such times, women who can afford, often drive

or take a personal cab instead of using public transit. Also, women may not use certain bus or railway stops or travel on public transport only if accompanied by someone. All of these leave female passengers feeling mentally imprisoned whenever they decide to step outside.

Initiatives Government on its part has introduced women-only transport in few states to combat harassment. However the plan, no matter how thoughtful it had been, is yet to find success. Typical examples are SheTaxis in Thiruvananthapuram which trained educated female drivers for cabs that were equipped with panic buttons and are continuously tracked by control rooms. But such brands like SheCabs, Priyadarshini Taxi Service and Viira Cabs for solo women travelers, with the added benefit of employing more women as drivers, have met only partial success and managed to stay afloat.

Women Safety

Concept like She Taxi serves only limited purpose

Though women’s only public transport options is a step toward making travel safe for women, but gender separation cannot be a lasting solution for mainstreaming gender in public transport because not all women can afford the higher cost of travelling solo. Moreover, gender-speciﬁc transport can be seen as a throwback in the ﬁght for women’s equal access to public transportation. The government has decided to spend Rs 1,400 crores on “National Level Vehicle Security and Tracking System” in about 32 cities with more than a million people. As per this plan, at least 30 lakh vehicles will have to be equipped with CCTVs, emergency buttons and GPS in order to renew or obtain permits. Even private operators would have to install these devices at their own cost to get the permit and in case of non-operating system, the vehicle would be taken off the roads. These 32 cities will have city command and control centers which

will be continuously monitored by transport departments and police forces. Multi-channel communication for receiving and passing information, helpdesks for emergency purpose and video walls to track vehicles would be part of these centers. As far as segregating responsibilities is concerned, state transport departments will focus on enforcement of law, registration, taxation and issues relating to driving licences while police will enforce law and also respond to panic alerts. How effective this plan is would be realized only after its complete implementation that is expected to be in two years. Safe roads and transportation services has been ranked as a top priority globally. Women working outside have a direct impact on efforts to counter poverty and eventually on inclusive growth of the economy. A Goldman Sachs study reported that narrowing the gender gap in employment

could push per capita income in emerging markets up to 14 percent higher by 2020. Therefore, our nation requires more women to be working for the overall economic growth and development but safety issues in transit have discouraged female population to step outside. Whether it bus, cab, auto or metro, no matter what kind of transport mode women decide to take, they should feel conﬁdent and safe while traveling. It is high time that gender considerations become a top priority for all aspects of transport and infrastructure services not only for economic development but also for the safety of our women. Our cities should belong to the people and not criminals. Though plans and policies are being formulated for safe travel we wait for that time in near future when women and girls would walk and travel freely in their city at any time of the day without the fear of being abducted or raped.

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Healthcare

FOOD SAFETY Looking Beyond

Maggi Conundrum

I Ramesh Kumar Raja ven though food giant Nestleâ&#x20AC;&#x2122;s Maggi episode has brought the issue of food safety to the forefront, it could just be the tip of the iceberg. India has a huge diversity of food products as varied as the regions

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July 2015

and it is a Herculean task to ferret out information on every individual selling food or track the ingredients of each and every localised product. There are also a number of contaminants that can enter foods at any stage of the manufacturing and cooking process if the food

business operators do not adhere strictly to the regulations of Food Safety and Standards Authority of India (FSSAI) and take precautions from farm to fork. If contaminants are found beyond the permissible limits in a food product, it has to be recalled

Healthcare just like Maggi. Most companies do ensure that their foods are procured, stored, processed, prepared, packaged and distributed according to the guidelines laid out in the FSSAI regulations. However, there are many in the food business that might circumvent regulations, some may do so out of ignorance but others do so despite regulations. There are also multitudes of licensed and monitored processed and packaged foods that contain numerous ingredients, additives, ﬂavours, colours, preservative and chemicals that go into foods of which the consumer is not even aware. It falls on the manufacturer as well as the food authority to ensure that food is safe for human consumption. While this might hold good for the monitored food products, what about the foods that remain out of the loop like street foods?

Is there stringent check on street food? Not only the high-end restaurants, fast food joints, canteens, caterers, banquet halls and the bakeries but even the roadside food stalls need to obtain a licence/registration under FSS Act, 2006. The FSSAI regulations, 2011 were formulated by the Food Safety and Standards Authority of India under the Ministry of Health and Family welfare to ensure that safe and hygienic food is supplied by all outlets. However, has anyone ever tested the fruit chaat that is sold on streets, sometimes even beside the open drains or the sugarcane and fresh fruit juice? Are these foods ‘completely safe’? Who will determine how much trans-fat is in the oils used to fry samosas and bhaturas? We can never know if the oil used is branded or sourced from petty neighbourhood unlicensed manufacturers. The oil is probably used again and again, if tested; the oil is likely to carry a huge percentage of trans-fat. Anybody eating these foods on a regular basis could likely suffer severe

heart and cholesterol problems or land up with Type II diabetes and even cancer. Says Dr Saurabh Arora, founder, Food Safety Helpline, “Outlets need to have proper waste disposal system, clean water for preparing food and washing utensils to prevent food contamination. However, the street vendors dispose of waste into the nearby open drains (gutters) quite often. And it’s a secret from where they source water to cook. FSSAI regulations talk about the maintenance of personal hygiene by those who prepare and serve food and the need to wear gloves, caps and aprons. But do you ever see any street food vendor serving food with gloves? No one even knows if they maintain personal hygiene or wash their hands before handling food. There is no one to see if they touch their hair, nose or scratch themselves before serving food or if their nails are cut. All these are potential sources of contamination which can ﬁnd their way into food.”

What about the water? According to FSS Act, 2006, food business operators are required to either submit a complete report or a report covering the essential parameters described, including physical, chemical and microbiological limits of water used. The water testing report must be obtained from a NABL accredited/FSSAI notiﬁed laboratory. This is a compulsory document to be submitted when applying for a license. “There are clear guidelines deﬁned for the potable water and non-potable water which is used for processing and for other purposes respectively. FBOs need to strictly adhere to the guidelines on the testing and analysis of water as heavy metals and industrial pollutants are often found in it,” says Vijay Kumar Arora, chairman, Arbro Group that is involved in the business of food testing and analysis. What about the hundreds of street food operators (petty food

businesses) which fall under the criteria of registration under the FSS Act, 2006? There is not even check on the source of water which they use for their manufacturing/ processing. Are they allowed to risk the health of consumers by using contaminated water that could result in foodborne diseases? Has anyone tested the water that goes into the ‘paani’ of the very popular paani puri or the nimboo paani and pudina drink served by hawkers every summer mixed with ice from an unknown source? Is it potable water that is being used to wash food and the utensils or are they being washed in nallas that run just near the food stall? Though Food Safety & Standards Act, Rules & Regulations have deﬁned guidelines for sanitary and hygienic conditions to be followed by petty food businesses, the food authorities have to strictly monitor the non-compliance by these street food vendors.

Waiting for regulations Nutraceuticals, health supplements, dietary supplements, novel foods, proprietary foods and herbal foods are deﬁned as food under Section 22 of Food Safety and Standards Act, 2006. They are called foods because they claim to make up the deﬁciencies that people might not be getting from their daily diet. FSSAI has categorised them as ‘non-standardized’ food products, so, before they are manufactured, imported, distributed or sold they need to have product approved from FSSAI. However, after product approval there are no checks to ensure manufacturer are using standardised raw materials, or that the label claims are authentic and in the proportions mentioned. Since these foods are unregulated, there is no way to know if the minerals, vitamins, micronutrients or metals added to these foods are within the limits recommended by the Indian Council of Medical Research (ICMR) or not. Is it possible that the consumer is paying for an inferior product which is not going July 2015

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to provide them the benefits benefits as mentioned on the labels? According to the Indian law, all micronutrients in fortified foods must be in keeping with the Recommended Daily Allowance (RDA) which has been prescribed by the ICMR.

Are infants getting the right foods? Infant foods are those foods that replace mother’s milk or add to the toddler’s diet. Special attention has to be paid to their manufacturing process so that they meet the required safety standards. These foods include infant formula, infant milk food and different types of cereals. However, despite the sensitive nature of the food, it has been seen that infant foods are also contaminated. According to the FSSAI regulations, certain infant foods can be fortiﬁed with Vitamins such as A, B, D group and vitamin C and K but only within permissible limits. Accordingly minerals like Iron, Copper, Zinc, Magnesium, Potassium and Iodine

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July 2015

can be added but manufacturers cannot surpass the limit. Added vitamins and minerals in infant foods may not cross the permitted levels, but are we sure that they are not also below level? Having nutrients less than RDA will render them ineffective for the healthy growth of the infant. In the recent past, studies conducted on infant foods by agencies found that some brands had protein content that was below the requirement. The food industry is huge and though the FSSAI has made regulations, the manufacturers and other food business operators need to be more accountable. FSSAI has also outlined ‘Liability for Compliance under section 27. Accordingly the Manufacturer is liable if the requirements for food safety under FSS Act, 2006 are not met Wholesaler/distributor is liable only if foods are >> Sold after expiry >> Stored or supplied in violation of the safety instruction

>> Unsafe or misbranded >> Manufacturer unidentiﬁable >> Received with knowledge of being unsafe Seller is liable for foods if there is >> Sale after expiry >> Handled or kept in unhygienic conditions >> Misbranded >> Manufacturer unidentiﬁable Despite all the regulations FSSAI has to be vigilant to ensure that food business operators are not circumventing the law. The manufacturers need to be more transparent and accountable and the consumers need to be aware about food safety in order to be safe. (With inputs from Auriga Research Ltd, a multi-disciplinary contract research and testing organisation that is involved in the analysis of food products, water, pharmaceuticals, cosmetics etc.)

Foreign Affairs

DEFT STRATEGIC MOVES

Modi government successfully furthers Indian interests I Vinit Goenka ince assuming ofﬁce, Prime Minister Narendra Modi has worked hard to restore India’s international image that was tarnished over last decade or so. From inviting SAARC heads of states for his oath taking to making high impact visits to countries like the US, China and Japan, he has successfully furthered India’s image and interests in global arena. Because of his initiatives, Indian foreign policy looks reinvigorated and focused. Over the last few months, three developments have underscored this new vitality.

Myanmar Operation….. A message conveyed For quite some time, North Eastern region of India was simmering with tension as terrorist organizations were reorganizing. The attack that killed 18 Indian soldiers in Manipur needed a beﬁtting reply to send out a clear message to all those intending to weaken India. The Government replied in a perfect fashion when Indian Army carried out a rare cross-border operation into Myanmar. The operation signaled a more aggressive military strategy aimed at weeding out terrorist threats, and conveyed a strong message to Indian adversaries who have been acting against the country’s interest on the western borders. There is little doubt that the doctrine being put together by National Security Advisor Ajit Doval under the guidance and with full support of Prime Minister Narendra Modi is perfect and it will work, if it is put consistently into action – on the military, diplomatic, internal security and economic fronts.

The North East region’s economic backwardness and history of insurgency makes it a tough terrain to work in. Sharing border with China, Myanmar, Bangladesh, Nepal and Bhutan, it has challenges that needs attention. Realizing this, the Modi Government is focusing on development agenda for the Northeast states. For example, the Ministry of Road Transport has announced that the Central Government would spend around Rs 20,000 crore this ﬁscal year for building roads in NE region. Nitin Gadkari has shown intent and the department has invited local contractors to come up with smaller packages in case they are unable to afford big tickets. These steps are certainly going to beneﬁt the economy of the under developed region. Several border roads are also being built which will facilitate growth as well as be useful for military purposes. The NDA Government wants to change North East into a base for trade with Southeast Asia, through what Narendra Modi calls Act East Policy.

New Dawn in Indo-Bangla Relations The PM’s historic visit to Bangladesh brought a watershed change in the bilateral relations between the two South Asian democracies. The expression on expectant Bangladeshi lips was that India’s leader arrived with a bagful of “gifts.” The gamesmanship with which Modi convinced political parties and state governments to ratify the long-stalled Land Boundary Agreement to settle BangladeshIndia boundary dispute won applause even from his skeptics. West Bengal CM Mamata Banerjee accompanying Modi on the visit also showed the skill of the Prime Minister to bring on board important stakeholders regardless of political hue. Some may say, India was a net loser which gave up more land and water resources to its smaller neighbor but from a broader perspective and in the long run, India will be a net winner by reshaping perceptions in

Indian Army attacked terrorists hiding in Myanmar with great swiftness

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Foreign Affairs

The PM managed to bring Mamata Banerjee on board for agreements with Bangladesh

Bangladesh. It is important to secure India’s eastern territories where Bangladesh based terrorists have created serious security problems of late. Not only Bangladesh Prime minister Sheikh Hasina showed the initiative from Bangladesh side but also former Prime Minister Khaleda Zia took the initiative to write Modi a letter expressing a desire to meet him in Dhaka — in serious contrast from her earlier coldshouldering of Indian dignitaries. This is an evidence of the fresh dawn on India Bangladesh engagements. With this move the Indian government has engineered an identity shift by presenting India as a large-hearted nation which is capable of making strategic concessions to promote South Asian harmony. The Dhaka-Shillong-Guwahati and Kolkata - Dhaka - Agartala buses that Prime Minister Modi, Bangladesh Prime Minister Sheikh Hasina and West Bengal Chief Minister Mamata Banerjee ﬂagged off, will be strategic for the trade in Asia. Also this will help India to cut down the travel time between West Bengal and North East India via Dhaka by more than 24 hours. The two countries will soon be part of a new regional arrangement among Bangladesh, Bhutan, India and Nepal that allows motor vehicle transit among the four countries.

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July 2015

The two countries signed another protocol on inland water transit and trade that will allow the use of rivers of the two countries to promote trade among India’s northeastern states and adjoining parts of Bangladesh. To improve connectivity, the two sides signed a pact to allow Indian cargo ships to use Bangladesh’s Mongla and Chittagong ports. The ships will now ferry cargo from Bangladesh to the Indian ports instead of routing it via Singapore as has been the case till now. The two countries signed 22 agreements to link their economies and walk together down the path of development. Many more such strategic infrastructure related agreements are in pipeline that will boost both the economies.

Countering China in Persian Gulf Recently, the Union Minister of Surface Transport and Shipping Nitin Gadkari signed a Memorandum of Understanding (MoU) with Iran for developing the port of Chabahar in Iran. The agreement is the testimony of centuries long bonding between ancient civilizations of India and Iran and would establish India as a pivot in the strategic location of the Gulf of Oman.

India wants to build the port as it would cut transport costs and freight time to Central Asia and the Gulf by about a third. The port is also a key to India’s efforts to circumvent Pakistan and open up a route to landlocked Afghanistan where it has developed close security ties and economic interests. India, Iran and Afghanistan have signed an agreement to give Indian goods, preferential treatment and tariff reductions at Chabahar. Russia has also expressed eagerness to ally with the emerging power block for establishing a multimodal transport link connecting Mumbai with St. Petersburg. Furthermore, India and Iran are discussing building a gas pipeline between the two countries along the bed of the Arabian Sea to bypass Pakistan, using the Chabahar port. Both countries are pondering the delivery of natural gas produced in Turkmenistan with Indian assistance to north Iran while the Islamic Republic will send natural gas from its southern deposits to Indian consumers. India has also ﬁnalized a plan to build a 900 km-long railway line from the Bamiyan province of Afghanistan to the Chabahar port. New Delhi has already spent 637 Crore rupees on building a 220-km road in Nimroz province of Afghanistan. The agreement is being considered as a master stroke by the Strategic and Defence analysts as it will be India’s counter move to China who is constructing the port of Gwadar in Pakistan’s Baluchistan province, just 72 kilometres east of Chabahar. These developments augur well for Indian foreign policy which is making strategic inroads in a troubled neighborhood to secure Indian interests and at the same time, creating foundations for a more collaborative region which would increase trust and friendship. (The writer is a MemberTaskforce (IT), Ministry of Shipping, Road and highway, and Ex National Co-Convener, IT cell, Bharatiya Janata Party)

June 2015

Governance Today

Interview

Time to Upskill Private Security Guards to Meet Industries’ Demand rising demand for manned guards. However, this opportunity comes with a commensurate challenge of delivering efﬁcient and trained manpower. As businesses grow complex, the need for security also becomes diversiﬁed, requiring differentiated skill sets to match the precise customer requirements. To discuss the issues of internal security as well as employment generation, Ramesh Kumar Raja talked to Mahesh Sharma, Secretary General, Central Association of Private Security Industry and the CMD of GDX Group, which offers security and investigation services. Sharma is also the director of Security Sector Skill Development Council. Edited excerpts:

Tell us about the current status of private security agencies in India.

Mahesh Sharma is Secretary General of Central Association of Private Security Industry and CMD, GDX Group

I Ramesh Kumar Raja n a billion plus country, where there is a wide gap in police-public ratio and which is infested by a multitude of internal security challenges, government security apparatus is always too stretched to guard all establishments and also keep an eye on all neighbourhoods. The private security agencies have ﬁlled this gap to a large extent and as far as

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July 2015

urban residential and commercial security is concerned, have emerged as the primary source of security for many. The sector is now gearing up to play an important role in the government’s grand plans on smart cities and large scale infrastructure development. According to some estimates, the sector is expected to generate over 50 lakh new jobs in India by 2020 on the back of

The private security agencies came into existence in the early seventies purely out of necessity, but with no understanding of the required training of skill development. They were primarily a part of unorganized sector till 2005, when the government brought the Private Security Agencies Regulation Act (PSARA). With this, they became a part of the organized sector. Today, there are approximately 15,000 security agencies functioning in India having a manpower of seven million deployed as security personnel across the country. The number of persons working in this sector has grown rapidly at a rate of 25 per cent annually over last few years. Its ranks primarily comprise people from weaker sections of the society who lack proper education and skills and suffer from a poor image because of low wages. The private security sector (PSS) is a result of vacuum

Interview created by the fully-stretched state security apparatus in wake of increased internal security threats. These guards have also traditionally suffered from poor skill set. But the National Policy for Skill Development (NPSD), 2009 led to the setting up of the National Skill Development Corporation (NSDC) that mandated creation of Sector Skill Councils (SSCs). One of the ﬁrst such councils set up in 2011 was Security Knowledge and Skill Development Council (SKSDC) to address the needs of the PSS.

How are these agencies important from internal security point of view? It is a known fact that compared to the western world, the ratio of police to public is very low in India. Hence, to maintain reasonable security, there is no choice but to use private security agencies. Entire private sector and some government organizations are currently using the private security industry for providing security to their establishments and have achieved a fair amount of success. I can very confidently state that significant benefit has been achieved by using private agencies for providing internal security services.

Does the government outsource its work to private agencies? If yes, are they competent enough to work as substitutes for government security agencies? I am very emphatically stating that a number of government organizations do outsource their security work to private agencies. This partnership has been found to be mutually beneﬁcial and very successful. It is imperative to bring out here that in critical government establishments, the core security is handled by the state-owned security personnel whilst the peripheral security is handled by private security agencies. As regards how effective this has been, I would say very successful.

How vigilant are private guards in protecting an establishment? Experience over the past 15 years reveals that nearly similar efﬁciency and effectiveness as government security persons has been achieved by using private guards in protecting an establishment. No great difference has been observed in totality where government security agencies are providing security exclusively.

Do they have any role to play in the security concerns related to terrorism and Naxalism? The private guards have no direct role to play in security concerns due to terrorism and Naxalism. However, they are deployed in Naxal areas and are responsible for security of the establishment they are posted in where they are performing satisfactorily.

How technology can be used in the process of securing neighbourhood and society? You have touched a point which is close to my heart. With changing times and advancing technology, very effective use of technology can be made in securing neighbourhoods and society. For instance, the installation of CCTVs with a control room can reduce manpower deployment, increase coverage, increase memory and cause a sense of fear among criminals, thereby improving security in the neighbourhood.

Despite giving services to a cross section of establishments, from private to government offices, what challenges do they face? A number of challenges are faced by the security guard, as he is the ﬁrst face and point of contact at any establishment. The challenges are bad behaviour, name throwing, violence, disobedience, threat, etc. However, as he goes ahead, he is never able to satisfy any/all

persons coming in. The security personnel are trained but they are also humans. As a society we need to move forward and treat everyone as equal and accept that he is just doing his job. We should co-operate and allow him to do his task effectively and efﬁciently.

Where do you see the future of private security agencies? Government will never be able to police the entire country. There will always be a need for private agencies to provide security at speciﬁc places. Thus, just as it has been growing at a rate of 25 per cent, it is likely to continue for at least the next decade.

What sort of training do the agencies give to recruits? The need for training and up skilling the PSS has been well recognized, as it is the only force which can ﬁll the vacuum, in the internal security envelope, created by state security agencies getting fully stretched on terrorcentric duties. The need to promote this sector, which offers great employment opportunities, has come to be recognized by the government. However, to make a career option in this sector attractive, it is important that we etch out career pathways for those who volunteer to join this industry. Towards this end, the next objective of SSSDC (Security Sector Skill Development Council) is to introduce diploma and degree courses through various universities and also plan for running of short duration courses to meet specialized challenges in different sectors of deployment, like hospitality, mining, reﬁneries, ports, commercial and industrial establishments. This up skilling and introduction of educational courses will strengthen the industries’ demand for treating security guards in the skilled category, enabling them to draw higher wages.

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Governance Today 59

Education

Grades, Marks and the Great Indian Education System I Praveen Raman n the education system which is in place in our country today, the evaluation provides an essential yard stick to judge the quality of students. It also provides motivation and a sense of purpose to both teachers and students to achieve deﬁned set of goals. Evaluation of students begins at very early stage. This traditional evaluation process had many negative effects. The biggest drawback is that students, parents and society at large, become too anxious in the race to acquire more and more marks in examinations which leads to an extreme stress. Moreover, though all out efforts are made to enhance the reliability of examination, the human error cannot be avoided. In order to overcome such

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July 2015

shortcomings, the government re-modeled the entire evaluation process. In this new system, the students are placed in ability bands that represent range of scores and student’s performance is assessed using conventional numerical marking mode, and the same is later converted into the grades on the basis of the predetermined marks ranges namely, A1, A2 etc. with their equivalent grade points. In today’s context, grading system is important as it effectively communicates the degree of achievement of a student to a variety of stakeholders. The grading of students also takes away the frightening judgmental quality of marks obtained in a test leading to a stress free and joyful learning environment in the school. It also enables to maintain a meaningful

continuity in the assessment pattern from the primary level to the secondary level and also in ensuring a basic uniformity in the schools. Not only does it eliminate unhealthy cut-throat competition among high achievers, it also reduce societal pressure. Stress-related suicides are very high among students who live in fear to fail in the exams. The most important aspect of the grade bases system is that there is no practice of declaring compartment/ fail. Those candidates who obtain the qualifying grades (D and above) in all the subjects excluding Additional subject as per scheme of studies are awarded a Qualifying Certiﬁcate and those who obtain grade E1 or E2 in the subject can improve their performance through subsequent ﬁve attempts.

Education While the grading system makes the learning process joyful, but for a student, the troubles are still many. He has compete to find a seat in a college and fight the ‘cut-off’ battle. The news of high cut-off appear in newspapers and news channels during this season every year. Students throng the premier colleges of India in order to secure a seat for themselves, but for most of them, it remains a distant dream. For example, the high-profile St. Stephen’s College of the Delhi University has released the first cut off list recently. The college has declared 99 per cent cut-off for English Honors for commerce stream students. The college has kept the cut-off for most subjects above 95 per cent. As the college receives applications in large numbers, it can easily declare high cut-off without having to worry about to fill the seats across streams. This is not something new, for certain streams taught at the university, even 100 per cent cutoff marks have been declared in the past. Experts attribute the demandsupply dynamics for this and

indicate that the solution to this lay only in expanding the educational infrastructure. But that is easier said than done. Experts also believe that if the demand is much greater than supply, then the cut-off will go high automatically. There is only one St. Stephens College and everybody wants admission there. That explains the absurd cut offs. And all subjects are not available in private colleges which roll out programs only based on the proﬁtability basis. Students who want to pursue humanities and art courses are the biggest losers in this game. The government for many reasons has failed to ensure quality education to students who enroll for college level courses. Lack of good colleges is one of them. Top colleges’ seats get ﬁlled quickly by students who score most. This leaves few choices for those students who score little less, say 95 per cent. Even for a country like India where Gross Enrollment Rate (GER) lingers around 19 percent at the moment, 6 percent below the world average, the government cannot provide seats to deserving

students. India apparently has a vision to increase GER to 30 percent by the year 2020 for which massive investment will be needed. Another reason why the government has failed to provide seats to the deserving candidates are that states and the universities within their territories are not doing well. On an average, states spend around 5 per cent on the higher education. While states like UP, West Bengal, and Jharkhand spend less, Tamil Nadu, Kerala, Goa, and Andhra Pradesh spend more money per student and are much better than national average. But it is not just ﬁnancial problems the universities are facing, but also problems like political interference, mismanagement, and lack of accountability are also effecting education standards. If states will do well, they can absorb students passing through state board exams. This will reduce strain

On an average, states spend around 5 per cent on the higher education. While states like UP, West Bengal, and Jharkhand spend less, Tamil Nadu, Kerala, Goa, and Andhra Pradesh spend more money per student which are much higher than the national average

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Governance Today 61

Education on premier universities like DU. As is clear from the All India Survey on Higher Education, on national average, number of colleges per lakh population is as low as 25. This indicates that we are hopelessly short of colleges, and we are not even talking about quality yet. Furthermore, majority of higher education institutions are government funded. They lack funds to improve infrastructure or faculty members. As per annual report of UGC, in terms of facultywise student enrolment, only 20 per cent of students opt for professional courses and rest go for normal streams. In such a scenario, non-technical colleges will have to adjust large number of students, let alone the crème one. As stated above, even as the government or partially government funded colleges have failed to offer seats to a major section of students, private universities have shared the burden in terms of enrolment only to some extent. The presence of private colleges and universities have increased where seats are more and courses are ﬂexible in nature. At present, the private sector accounts for nearly 59 per cent of enrolment in higher education. But,

the private institutions are subject to tough regulations with very little ﬂexibility. These institutions cater to the huge supply-demand gap and offer courses that suit markets need. Some private universities in higher education have broken conventional paradigms in education and have set new standards. Many have started to experiment with curricula and have started to offer ﬂexibility to students to develop their own syllabi. Such institutions can serve as models for other institutions for developing 21st century skills, critical thinking, communication and leadership. But studying at these institutes are at times risky also. Mainly because the people who didn’t know enough about education, and had no aspirations to be in education - mostly business people from industries such as real estate who knew how to get large pieces of land allotted or had surplus cash - started to create private colleges and universities. Given that they were not academically oriented people, or didn’t understand education, even if they were wellintentioned, they didn’t know how to create an environment for education. They saw themselves as

Rise of businesses like call centers has led to an increase in mediocre colleges

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July 2015

At present, the private sector accounts for nearly 59% of enrolment in higher education. But, the private institutions are subject to tough regulations with very little exibility. These institutions cater to the huge supply-demand gap and offer courses that suit markets need

providing a service, and the service was providing somebody a degree that could get them a job. Thanks to the demand fuelled by the rise of IT, BPOs (business process outsourcing firms) and our services industry, this “service model” of education worked well enough to attract large numbers of students. This led to a mushrooming of many mediocre private universities that definitely provided many students an option, but there was little incentive for these universities to improve. That will have to change. India needs to make sure that private universities are encouraged, and that the legislation to create them is enabling. It’s a maze right now with multiple governing bodies that have conflicting mandates. Several states do not yet have a State Private University (SPU) Act. Because universities and institutes are so tightly controlled, there is little autonomy in and flexibility in governance structures. Private universities, like government-owned universities, have little scope for innovation in designing their course curriculum. All of this needs to be looked at immediately. There is some hope that this can happen. A few states, mainly Haryana, Rajasthan and Gujarat have progressive SPUs. The rest of the states can open up too.

CSR

Powering with Care

ational Thermal Power Corporation (NTPC) is firmly guided by the philosophy that its core business of power generation is intricately intertwined with social and environmental growth. NTPC is dedicated to generating reliable energy at competitive prices in a sustained manner employing a mix of energy sources and using innovative eco-friendly technologies. Policies and actions of the company are geared towards adding to the country’s overall economic progress, uplifting the society at large and nurturing a greener planet. NTPC is a firm believer in harmonising the 3Ps: People, Planet and Power. In NTPC, CSR strategy is wellintegrated with the core business of generating power and setting up power projects. . NTPC’s first community intervention starts with planning of a project and initial development activities, aimed at gaining confidence with the local population. In the next stage comes community interventions under the R&R policy which is a combination of individual benefits to project affected families (besides land compensation) such as resettlement & rehabilitation as

well as community development. This phase begins once the project investment approval is through and continues till the time the project is fully commissioned. Corporate Social Responsibility Policy of the company targets areas such as education, health, sanitation, hygiene, women empowerment as well as vocational skill development and drinking water etc. One of the more successful schemes of NTPC has been the National Revised Tuberculosis Control Program for which NTPC has signed an MOU with the Ministry of Health. The association has helped about 26,000 people in rural areas near NTPC’s project sites, through 12 local centres. Of these, about 4000 were found infected for which

they were treated. More than 3000 of these people have completed treatment. Another initiative has been adoption of 17 ITIs across the country as well as building of nine new ITIs. The adoption has given a new lease of life to these ITIs with new subject streams as well as capacity building. In yet another project, at its Simhadri project site, NTPC is associating with a drinking water availability project along with the district administration. The project has made drinking water available to 27 villages. Besides this, the NTPC Foundation, set up in 2004, has also been involved in various charitable works. It has opened special ICT centres for visually impaired and physically handicapped in four blind schools as well as at three national Universities (Delhi, Gawahati and Devi Ahilya Vishwavidhyalaya) where computer education is given through specially designed software and hardware to improve employability. NTPC Foundation has also opened ﬁve Disability Rehabilitation Centres through an MoU with the National Institute of Orthopedically Handicapped at its project sites of Rihand, Tanda, Korba, Dadri and Bongaigaon. At these centres, surgeries have been conducted so the patients can use

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CSR

artiﬁcial limbs. About 15,000 people have been beneﬁtted by the initiative so far. Furthermore, distributed generation projects have been put up in villages close to some NTPC projects to provide electricity as well as encourage the cause of renewables.

NTPC’s Commitment Swachh Bharat

In line with Hon’ble Prime Minister’s push for Swachh Bharat (Clean India), NTPC has also undertaken various activities / initiatives for promoting and realizing this dream of a clean India in its plants / projects / ofﬁces. To propagate the message of cleanliness, NTPC organized intensive awareness and cleanliness campaign through various activities during SeptOct, 2014 in its Projects / Stations / Ofﬁces to bring about massawareness among its employees, associates and their family members to ensure cleanliness at the workplace as well as residential premises. On October 2, 2014, on the auspicious day of “Gandhi Jayanti” all the NTPC employees, associates as well as their family members, took part in “Swachh Bharat Abhiyan” at their respective workplace / townships / residences. Pledge was taken and various events / competitions on the occasion were organized amongst employees, their spouses and

Governance Today

July 2015

school children. During the week, programmes like Nukkad Natak, Debates, Slogan competitions, Essay competitions, Painting competitions, Walks etc. were organized to spread awareness about cleanliness amongst employees, their family members and other stake holders. During the awareness campaign, active involvement of our schools situated in the project / station townships was also ensured for inculcating the values of cleanliness in our children. In the ﬁrst phase, NTPC has committed to construct about 24,000 toilets in schools selected from the list available on the website of Ministry of HRD. These toilets will be constructed in schools covering about 75 districts spread over 17 states .The construction of toilets is planned to be completed by August, 2015. For this NTPC has allocated an amount of Rs 285 Crore from CSR budget for the ﬁnancial years 2014-15 and 2015-16. NTPC has also taken the responsibility for maintaining these toilets for a period of 2 years after completion of the toilet construction. Furthermore, as part of its commitment towards society, NTPC has taken up construction of Community Toilets/ drains and to support the construction of Individual Toilets in the villages, especially in the neighbourhood of its operations. Over the next few years NTPC plans to pursue and reinforce Swachh Bharat in consultation with its various stakeholders.

Gen-Next Summit 2015

Prime Minsiter’s ‘Make in India’ Dream will be a reality in Chhattisgarh Dr. Raman Singh, Chief Minister, Chhattisgarh

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Gen-Next Summit 2015

Gen-Next Summit showcases Naya Raipur as IT/ITeS hub

ver the last decade or so, the state of Chhattisgarh has made rapid progress on industrial, agricultural and social sectors. The state has now taken the initiative to establish Naya Raipur, which is billed to be the ﬁrst smart city of the country, as an ideal IT/ITeS destination. To promote the investment in these high tech areas, the government of Chhattisgarh has provided many incentives which range from tax breaks to assistance in setting up units. To promote Naya Raipur as the next IT hub, Gen-Next Summit, 2015, Chhattisgarh, was organized by Governance Today in collaboration with Chhattisgarh Info-tech and Biotech Promotion Society’ (CHiPS). The Summit, held in Taj Gateway, Raipur on June 26, 2015, witnessed the presence of top government ofﬁcials and corporates from across the country. It also served as an ideal platform for the Government of Chhattisgarh to brief corporates about the policies and facilities that have been provided to encourage corporates to come to the state. The summit was inaugurated by Dr Raman Singh, Hon’ble Chief Minister, Chhattisgarh, and was attended by Vivek Dhand, Chief Secretary, Chhattisgarh and Aman Kumar

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July 2015

Singh, Principal Secretary, Electronics IT and Energy, Chhattisgarh. Top ofﬁcials from various companies were also present to know in-depth details about the investment opportunities in the state. Speaking on the occasion, Chief Minister Dr Raman Singh said that the campaign for ‘Make in Chhattisgarh’ on the lines of Prime Minister Mr Narendra Modi’s ‘Make in India’ is gaining momentum with many companies relating to Information Technology and solar panel unit already in the pipeline. When it comes to investing in the state, the Chief Minister said there is an enthusiastic and positive environment for the establishment of IT/ ITeS companies and industries related to energy sector. The manufacturing of mobile telephone instruments, computer tablets, electronic and solar power instruments will start on a large-scale soon. Chief Minister further clariﬁed that the State is a peaceful area. The Naxalites’ problem is limited to a few pockets in some districts. He further added that the state is developing at a rapid pace. Among the many achievements is the fact that Chhattisgarh is the only state with ‘zero’ power-cuts. Chief Secretary Mr. Vivek Dhand explained that several companies have shown keen interest in investing

in Chhattisgarh. He also gave detailed socio-economic and cultural advantages of the state. Principal Secretary Aman Kumar Singh informed the gathering that the industries in the core sector like cement, electricity, steel and aluminum have already set up business in large numbers in the state. He underscored the aim of the state to make ‘Digital India’ of Mr. Narendra Modi a reality, emphasizing that skill development is top of the agenda of the authorities for this purpose. Saurabh Kumar, CEO, CHiPS, expounded in details about the beneﬁts of investing in Naya Raipur and steps that CHiPS was taking in this regard. Other speakers who spoke at the summit in the summit were Santosh Choubey, Chairman & MD, AISECT, Jitender Gupta, Country Head, Networking & Security, Avaya Global and Kartikeya Goel, IAS, Director, Department of Industries, Government of Chhattisgarth, to name a few. These business leaders deliberated on initiatives such as Smart Cities and emerging technologies and how these could change the way business is done. The Gen-Next Summit served as the perfect platform for both Government and IT/ITeS leaders to interact with each other regarding policies for establishing these high tech sectors in Naya Raipur.

Gen-Next Summit 2015

VOICES FROM THE GOVERNMENT OF CHHATTISGARH

Vivek Dhand

Dr Raman Singh

Aman Singh

Chief Secretary Chhattisgarh

Hon’ble Chief Minister Chhattisgarh

Principal Secretary, Electronics IT and Energy, Chhattisgarh

We today generate 21,000 MW of electricity. In this ﬁve year plan we would be producing 38,000 MW of electricity. We are be using just the 10 percent from the total, which means we are one of the major exporters of the power.

There is a positive environment for the establishment of Information Technology companies and industries related to energy sector in Chhattisgarh. For the B.P.O. industry it is imperative to have build-up area ready. These issues will be taken care under the Industrial Policy of the state. The Government of Chhattisgarh has proposed an amount of Rs 1,60,000 crore for industrial investment that is 45 percent higher than the investment in other states. The government of Chhattisgarh would also provide ﬁnancial assistance of Rs 10 lakh per year to every BPO organization. Moreover, Chhattisgarh is the only state with ‘zero’ power-cuts and the electricity charge is 35 percent lower when compared to other states.

There is a positive environment for the establishment of Information Technology companies and industries related to energy sector in Chhattisgarh. For the B.P.O. industry it is imperative to have build-up area ready. These issues will be taken care under the Industrial Policy of the state. The Government of Chhattisgarh has proposed an amount of Rs 1,60,000 crore for industrial investment that is 45 percent higher than the investment in other states. The government of Chhattisgarh would also provide ﬁnancial assistance of Rs 10 lakh per year to every BPO organization. Moreover, Chhattisgarh is the only state with ‘zero’ powercuts and the electricity charge is 35 percent lower when compared to other states.

As far as the issue of Naxalites is concerned we have put adequate forces to take control of the situation and that is why it should not be a concern for IT investors. On Ease of Doing Business, Chhattisgarh has been rated among top ﬁve states in the country; IT and ITeS companies will surely beneﬁt from investing in Naya Raipur.

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Gen-Next Summit 2015 S S Bajaj, IFS, Vice Chairman, Naya Raipur Development Authority The vision while planning Naya Raipur was that it would be a green smart city. The city will be eco-friendly with focus on recycling goods and increase in use of renewable resources. We are going to use non-motorised transport (NMT) in Naya Raipur. Most importantly, the city will be citizen-friendly with focus on security, especially for physically challenged and women. At present, we have 500 families in Naya Raipur. Our target for the next ﬁve years will be to allocate more than 75,000 people as residents of Naya Raipur. Also, we would be focusing on IT/ITeS industries, pharmaceutical companies, textiles, construction material industries and service industries.

Saurabh Kumar, IAS, Dy. Secretary, Electronics & IT Dept & CEO, CHiPS Chhattisgarh is the new state and for us IT, ITeS, ESDM are the focal point for driving the growth. We are the largest producer of steel in the country which eventually leads to lowest construction cost. Without a doubt we are the easiest state to do business and there is no other state that can match us in terms of facilitating IT companies in setting up shops and handling daily operational issues.

Kartikeya Goel, IAS, Director, Industries Department In Chhattisgarh, red tape and permission required are lesser when it comes to doing business. Geography is an added advantage as Chhattisgarh is located centrally and thus it further promotes ease of doing business. After Jharkhand, Chhattisgarh has the largest reserves of mineral wealth in India. Our focus is on core sectors (Power Generation, Aluminium, Steel and Cement) and we are leading producers of these four elements in the country. Despite few issues, numbers and research have proved that business in Chhattisgarh runs without any interruption with high proﬁtability.

AM Parial, Vice Chairman, CHiPS Chhattisgarh is the land of opportunity for those looking to invest and start business here. But today issue is that data is increasing as everything is data driven. Chhattisgarh is one of those few states where data security is given top priority. Ours is the state which has completely automated the entire food cycle; right from the paddy procurement to distributing it to fair price shops. So, whether you are from agriculture industry, IT industry, food processing industry, your data is secure so that in future you can show that data to decision makers.

Santosh Choubey, Chairman & MD, AISECT At present AISECT is one of the biggest organizations for IT and ITeS with approximately 20,000 centers in 27 states. Through these 20,000 centers AISECT has been able to execute development work successfully. Our relationship with Chhattisgarh goes back even before its inception with AISECT being present in almost every district. AISECT has been actively involved in the progress of the state, especially in the ﬁeld of ICT, and we would continue to be involved in the progress story of Chhattisgarh even in future.

Jitender Gupta, Strategic Leader & Sales Head - Networking & Security, Country Sales Head, Avaya India We are privileged and proud to be associated with Chhattisgarh as one of the technology providers in the state. We have been surveying the state for last 7-8 years. Our solutions can help not only government, but also society. Avaya offers contact center solutions, Uniﬁed Communication, IP telephony, networking, video conferencing solutions worldwide and now it will be an honor to offer same solutions to Chhattisgarh.

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July 2015

Gen-Next Summit 2015 Shailesh Pandey, Registrar, Dr. C V Raman University Smart city is the topic of discussion everywhere across the country but what we ﬁrst need is establishment of smart institution. Out of 30,000 engineers in Chhattisgarh, 1000 comes from C V Raman University. Our main challenge is to give professional engineer that can serve the society. We have been in Chhattisgarh for last 8-9 years and till now we have invested approx. Rs. 500 crores in infrastructure in order to provide quality education to students. Thus Dr. C V Raman University has all the elements that make it a smart institute.

Kingsuk Kar, Territory Manager, Avaya India When we talk about smart city there are multiple segments like smart home, smart buildings, smart security, smart healthcare, smart transport and many more. Avaya has many robust solutions that have been already deployed. We have smart building solutions, smart healthcare solutions and smart security and transport solution. Apart from this, we have deployed a new solution in Bihar last month-smart prison. And our second solution is smart high court that has already been deployed in Guwahati. Avaya is constantly bringing new solutions to meet the new age challenges.

K P Saha, MD & CEO, Senrysa We are one of the leading end-to-end solution providers of financial inclusion through the business correspondent model. Senrysa provides ICT solutions and services to over 5000 villages across India with a customer base of 50 lacs. We are also known for disbursing government benefits to beneficiaries through business correspondent model. Our solutions support every technology that is available today and we would like to bring it to the market to serve the masses.

Ravindra Baviskar, Head (Training), Cyberoam We will be surrounded by so many devices which are connected to the Internet that we won’t feel the existence of it. Moreover, threats are evolving as earlier cyber criminals were targeting weak router and now they are targeting the individual users. When it comes to Digital India it means that more people would be connecting to Internet and thus more devices would be connecting through the Internet. This digitization would help us in building smart cities and Internet connectivity would play a major role in this whole process. But we need security and for that Cyberoam security solutions will enable you to roam freely in the cyber world.

Puneet Ahuja, Sr. Consultant, Juniper Networks Digital Infrastructure, governance and services, and digital empowerment make for a successful digital city dream. We need to have content that is available at any place anytime and it should be accessible through any device. These things can be delivered in real time if you form basic pillar of network infrastructure. This infrastructure has to be very ﬂexible and agile so that it can adapt to the growing need of the applications. We need more bandwidth and more connection oriented infrastructure.

Abhishek Pandit, Director, AISECT GDP of Chhattisgarh state has been growing year-on-year with a healthy growth of eight and half per cent. Everything is going digital, including health, education, ﬁnancial inclusion, agriculture and services. Emphasis on Digital India is going to strengthen in years to come. Every student prefer the digital way and that is why Chhattisgarh needs Digital Skilled Development Plan and we hope that state government works on the plan and comes up with roadmap on how to work ahead with Digital plan for Chhattisgarh.

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Gen-Next Summit 2015

Vivek Dhand, Chief Secretary, Chhattisgarh

Inauguration of Gen-Next Summit, 2015

Santosh Choubey, Chiarman & MD, AISECT

Honourable CM at the venue of the summit

Honorable CM unveils Governance Today magazine with other dignatories

Governance Today

July 2015

Jitender Gupta, Strategic Leader and Country Sales Head, Avaya India

Abhishek Pandit, Director, AISECT

Gen-Next Summit 2015

Dr Raman Singh, Honourable Chief Minister, Chhattisgarh

A large number of delegates attended the summit

Saurabh Kumar, IAS, CEO, CHiPS

Delegates at the summit

S S Bajaj, IFS, Vice Chairman, NRDA

Guest dignitaries at the summit

A M Parial (L), Vice Chairman, CHiPS and Ravindra Baviskar (L), Head (Training) S S Bajaj, IFS, Vice Chairman, NRDA Cyberoam and Saurabh Kumar, CEO, CHiPS

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June 2015

Governance Today

Art & Culture

VANISHING EXPRESSIONS A Large Number of Art Forms are Nearing Extinction

I Divya Menon lobalization, a necessary evil, is a phenomenon rife with paradox for the sheer imbalance it has lent to the world society over the past few decades with regard to many aspects of life. On one hand the world has contracted and shrunk into a little village, while on the other hand, finer aspects of life have been jeopardized and compromised by its impact. A process that has ushered in development has also hampered cultural values and led to an erosion of ethnicity and tradition. Art is a representation of the social and cultural frame work of a group of people. It is an expression and extension of man’s mind. It is also a medium of communication and a vehicle of inter-cultural exchange. This and more makes art sacrosanct to life. Speaking specifically about India, art is a part and parcel of the Indian way of life. It runs thick in the Indian blood. No celebration here is complete without artistic indulgence. The sweeping impact of globalization has been felt across India as in any other part of this world. While it might be simply impossible to justifiably narrate in a few hundred words, the effect of this phenomenon on the Indian lifestyle, it is rather imperative to talk about Indian art and society under the lens of development. The big bang of globalization has caused the very fabric of our cultural and social values to undergo a paradigm shift. This has resulted in the disappearance of many

Pava Kathkali is an ancient puppet show which is now in danger of fading away

expressions of Indian art. It would not be an exaggeration to state that across the length and breadth of India, lying burried under the folds of time and circumstances caused by urbanization, is a plethora of art forms that are reﬂective of our rich cultural heritage. There are spectacular forms of painting, music, dance and theatre, amongst others that are living an existence endangered by altered lifestyle and preferences. Over the past few years, concerted efforts have revived some of these art forms and restored them nearly to their past glory, however, countless others still languish in obscurity promoted by modernization. Kathakali is a popular dance art form from Kerala and is thriving owing to the efforts of art loving bodies that have invested themselves in the protection of this art form. However, Paava Kathakali,

a variant of Kathakali, originating from the coasts of Andhra Pradesh had all but vanished before it was revived a few years ago by the efforts of an art loving group called Natanakairali from Irinjalakuda in Kerala. This art form that was on the brink of extinction is similar to Kabuki art form of Japan and was conceived with the aim to entertain little children through elaborately decorated Kathakali miniatures and puppets. In little Kerala alone, there are more than 300 forms of temple art that are no longer patronized by the very temples where they were staged at one time. These artists who were once upon a time looked upon as messengers of Providence, today constitute a vanishing tribe who have resorted to performing odd jobs to sustain life, caught between the bites of reality and the fantasy of art.

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Art & Culture

Chhau is a very old and vibrant dance form in West Bengal

Mayuranrityam, Kavadi dance, Poothamkali dance, Pulikali, Mudiyattam, Kummatty Kali are a handful of these art forms from Kerala. The Guruvayur Temple of Kerala hosts the Krishnanattom Kali which is a rigorous form of art that takes a few decades to master and the Guruvayur Devasom Board has the only Krishnanattom troupe in the world. In Tamil Nadu, the Isai Nataka Manram recently held a Bommalattam performance at the Rukmani Arundale Auditorium. The puppetry show that was staged to perfection was a two day event that captivated the hearts of audience. Tholpavvai and Bommalattam were the two dying art forms that were staged as a resurrection effort for future generations. Karagaattam is a folk dance with musical accompaniment, performed by balancing a pot on the head. This dance was performed in villages in praise of the rain Goddess Mari Amman and the River Goddess Gangai Amman. Kummi is also another important and ancient dance form from the villages of Tamil Nadu with the participants clapping their hands to keep time. This dance form performed by women has a number of variants such as the Poonthatti Kummi, Deepa Kummi, Kulavai Kummi,

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July 2015

Kadi Kummi, Mulaipari Kummi etc. The Mayilaattam is a dance form in which girls wear brightly colored peacock feathers and don a beak, and dance imitating the gait of a peacock. A few other forms of art from the interiors of Tamil Nadu that have lost their popularity over time are the Theru Koothu or Street Play, Kolaattam, Ovil Kummi, Poikkal Kudirai Attam or the Dummy Horse Dance, Kai Silambu Attam, Chakkai Attam, Kazhai Attam, Thappattam, Bhagavatha Nadanam, Devara Attam, Snake Dance, Urummi Attam. These spectacular artistic expressions are in reality ambassadors of a rich cultural past but are unfortunately ﬁghting a battle for survival today. Moving over to Bengal from the South, you have the Purulia Chau dance which is an energy packed performance with the dancers wearing masks and elaborate headgear. The Jhumur Song and Dance of Bankura and Purulia is a song and dance practice by men and women together using instruments such as the ﬂute, Dhol, Dhamsa, etc. The Gambhira and Domni of Malda are two folk forms of drama. The other forms of art are the Baul and Fakiri of Nadia, Patachitra of Purba and Paschim Medinipur. All these rich performing art forms are

finding it extremely hard to stay alive amidst dwindling financial support and declining interest among young population. One could simply go on and on listing art forms of India that are no longer patronized by a generation of Indians mesmerized by the fleeting charms of modernization. A closer study of these art forms would reveal that each of these artistic expressions have a sad story to relate - one of neglect. These expressions, some of which, that were at one time staged within the hallowed corridors of places of worship, with the advent of urbanization moved out to the streets in search of audience. Technological development that is a by-product of globalization, has reduced many of these to a state of redundancy. With the world having shrunk into a little colony connected over Ethernet, our values have also got diluted in the rush of day to day life. While man negotiates his life, he appears to have lost the connection to his rich past. A world that runs at the mere touch of a button has shunned the innocent charms of art that belongs to a bygone era. We have traded many beautiful oeuvres of art for the transitory incandescence accorded by modern options of entertainment! The onus of reviving these art forms for the sake of posterity is squarely on us. Time is of essence now to adopt conscious measures to protect innumerable art forms that have survived despite a cultural onslaught spanning hundreds of years, at the hands of the agents of evolution. Change is a permanent feature of any society and perhaps the only constant, however, ironically, a society that does little to preserve its glorious past simply degenerates. To walk down a path of cultural decay is something that we cannot afford to do as conscientious Indians. (The writer is a well-known Indian art critic)

Priya Sharma | 1800 209 3062 | 022-66765553 juniper@dnbindia.in