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On the 1st of September 2017, farmers of the Akhil Bharatiya Kisab Sabha called for an indefinite mahapadav or gherao of the various District Collectorates in Rajasthan. Like the farmer protests in Maharashtra, these too were sustained bouts of anger over neglect by the government. The farmers had very basic demands related to the very survival of agriculture itself. Proper implementation of the Swaminathan Commission recommendations,the greater allocation for MGNREGA, higher wages and more days of work, social security, MSP was another key area, removal of the absurd law on restrictions on cattle trade sinking the prices of cattle and protection for cattle traders, pensions of Rs.5000 for farmers and agricultural labourers over the age of 60. Here are their demands:

Demands of the Kisan Sabha in the Sikar agitation
Demands of the Kisan Sabha in the Sikar agitation

It is shameful that as farmer desperation and suicides increase and even suicides rise among the children of farmers, the government and their elite rent-a-pens remain indifferent and even dismissive to the plight of farmers. However the citizens of Rajasthan are not. The demands of the farmers found wide resonance among various groups of people who supported the protests in solidarity. Hundreds of members of the Kiln labour Union drove to Krishi Mandi, Sikar on red tractors in solidarity with the mahapadav. National leader of Jan Kranti Manch, Pooja Chhabra also reached the Mandi to convey solidarity. Veer Teja Sena of Sikar has pledged to support the struggle at every step. The Bakra Mandi Vyaparis have shown their support to the movement along with a contribution Rs. 11,000. Shaheed Bhagat Singh Law College, Sikar, bestowed Rs. 10,000 to the mahapadav. Sangliya Dhuni, a ‘saint’who claims to be a farmer at heart, gave monetary support and 2 quintals of wheat.

Dilip Mishra of the Auto Rickshaw Union expressed the willingness of auto drivers to go on strike in solidarity if called upon, as did milk suppliers. Milk Transportation Union of the state contributed Rs. 21,000; while the Amul Corporation Union gave Rs. 11,000 to the agitation. The Bus City Union took out a huge rally in support of the mahapadav. Dancing with the DJ, going through the city, the rally was welcomed by the citizens with flowers. The MR union put up a free medical camp to oversee the health of farmers in the rally and the ambulance union took out a rally in support of the mahapadav. [Source: Newsclick]

Protests raged for days with blockades at 300 points, as the government did what governments do. The internet was blocked in Rajasthan to prevent news from getting too much attention. However, this did nothing to dampen the flood of people out on the streets for their very sustainability. Protests continued to grow as the farmers declared the government of Rajasthan dead and carried out a mock funeral.

Finally, and unsurprisingly, like the protests in Maharashtra, the government was forced to bow to their demands. Amra Ram, Kisan Sabha leader and ex-MLA from CPI(M) speaks here about their victory.

And their press release thanking everyone for support in their victory.

AIKS Congratulates Rajasthan Kisans for Historic Victory!

Celebrating victory in Sikar agitation
Celebrating victory in Sikar agitation

The peasantry in Rajasthan under the Kisan Sabha banner have won a significant victory after their resolute struggle lasting 13 days. Since 1st September, 2017 lakhs gheraoed the different District Headquarters on the call of Rajasthan Kisan Sabha for a Mahapadav. For 3 days there was also Rasta Roko across the State bringing about 20 Districts to a standstill. Only ambulances and essential services functioned. The peasant movement received unprecedented support from all sections of the society making it a truly people's movement. The insensitive BJP Government led by Vasundhara Raje Scindia was forced to bow down and accept many of the demands of the peasantry after 13 days of struggle and talks with the Kisan Sabha leadership. The talks went on in 4 phases from 1:00 PM on 12th September and ended on 14th September at 1:00 AM.

Celebrations as Rajasthan government is forced to accept farmer demands in Sikar agitation
Celebrations as Rajasthan government is forced to accept farmer demands in Sikar agitation

The BJP Government was forced to agree to loan waiver of up to RS.50,000/- which is expected to benefit 8 lakh farmers, assurance that State government will write to the Centre seeking implementation of Swaminathan Commission Recommendations on MSP in a time-bound manner by working out modalities, purchase of groundnut, green gram (moong) and urad at MSP at all District Headquarters within 7 days, withdraw hike in electricity rates for drip irrigation, payment of SC/ST/OBC fellowship with arrears immediately, relaxation in restrictions in sale of cattle, protection of crops from stray cattle and wild animals, increase of pension to Rs. 2000/month agreed in principle, insurance claim for failure of canal irrigation and stopping harassment of traders and farmers by the police. After agreement on these issues and on a mechanism to implement decisions AIKS President Com.Amra Ram announced withdrawal of the Mahapadav and reopening of roads that were closed for the last 3 days. Kisans across the State celebrated the victory with slogans, songs and dances.

AIKS thanks all who stood in solidarity with the movement. This inspiring victory shall inspire similar struggles across the country.

Message from Com. Drm. Ashok Dhawale, Vice President AIKS

Heartiest congratulations to all leaders and activists of the Rajasthan Kisan Sabha and to the fighting peasantry of Rajasthan for their massive 13-day struggle and the impressive victory that they won in prolonged talks with the state government.

राजस्थान किसान सभा के सभी जुझारू साथियों को महाराष्ट्र किसान सभा के सभी साथियों की ओर से लाल सलाम.

- Com. Drm Ashok Dhawale
Vice-President AIKS

Special mention must be made of the excellent coverage of the protests by NewsClick. Where most media carried token coverage at best, they have photos, videos and interviews from the ground as the protests progressed.

This article about the Maratha Kranti Morcha  was published in 2016. It remains as valid today, as Maratha Morcha Mumbai shows power on the streets.

The gigantic Maratha rallies in Maharashtra have flummoxed everyone. Neither the politicians nor the media know what to make of them.

Unprecedented crowds thronged the Pune Maratha Kranti Morcha on 25th September 2016. Even if the claims of 25 lacs are exaggerated, it is undoubtedly the largest gathering Pune has seen. In each city the Maratha Kranti Morcha is breaking records with their numbers. But that’s not the only thing unique about the Maratha Morcha.

The most amazing thing is that it is a silent, peaceful protest, no speeches, no slogans. No wait, the most amazing thing is that it is led by 5 unknown girls who present the charter of demands at the end. In a country that believes one always needs a popular face to ensure success in any field – politics, or andolans, or Bollywood, or sports, the most amazing thing really is that no one knows who the leaders are.

Another really amazing aspect is that any political leader or public figure who tries to hijack the Morcha is respectfully shown the figurative door. Basically it is a movement that on every count has left the people amazed.

Marathas are approximately 35% of the state population and are considered to be the ruling class. Almost every state assembly has had 60% to 70% dominance of Marathas since decades. They are also the land owning class. The Marathas dominate the state’s economy as they control the cooperative sector which runs everything from banks, to credit societies, to agriculture markets, to cotton and sugar mills. This power is concentrated in the hands of the few – some even claim that all cooperatives in the state are owned by less than 200 Maratha families.

Shrewd Maratha Congressmen of yore replaced the old zamindaari system with a modern one – the Maratha strongman in every area joined politics and became an Aamdaar (MLA) or Khaasdaar  (MP). They used every trick in the book, nay, they wrote the book, on how to scam and acquire control of government and public lands.

These guys also became contractors, directly or through family members, and they won all government contracts making truckloads of money through corrupt practices. These same politicos floated and controlled cooperatives in every possible area that touched the lives of people – banks, mills, markets. They entered every business that people depend upon – education to transport to power generation. Today these few political families have a stranglehold on the state, and most of them are Marathas. So why then the protest? Because this power class has no connect with the Maratha masses.

The majority of the 35% of Marathas are tillers of small parcels of lands, they are the poor of Maharashtra whose livelihood is held to ransom by everything – from the weather to the rich ruling class. The Maratha Kranti Morchas are not just demanding reservations – they are demanding the right to survive.

Farmer Issues

Most of the Marathas are ordinary farmers. They are disconnected from the ruling class who has scammed every single resource of the state. Almost all farmer suicides were Marathas. Most farmers in the state had joined the Shetkari Sanghatana as there was a palpable need for organized protest. With the decline of the Shetkari Sanghatana’s various factions, these farmers who were left without any direction have now come together under the Maratha banner, and their issues remain agrarian. The BJP government has failed to make a single constructive step against the anti-farmer policies of the former UPA government – no security of MSP, crop insurance is a farce, and there is no move towards implementing Swaminathan Commission recommendations. Essentially the Maratha protest is a farmer’s protest since their needs have been neglected by every single political party in the State today.

Education

Today farming is not a viable career – its only 11% of the GDP even though 60% of the population works on it. Hence the farmers want alternate careers for their children but the stumbling block here is education. In a bid to promote privatized education for its cronies, Maharashtra politicians have completely neglected public education. The Marathas feel in the race for seats in the few government institutions they are at the losing end due to reservation – and hence the demand for reservation. The solution to this issue is not just reservation – it is vast investment in education infrastructure and making education accessible to the last man. However, the BJP government, just like its predecessor the UPA, does not have education on its agenda – from ‘anganwaadis’ to Universities there is unprecedented corruptionand there is not even an attempt being made to enhance the number of schools and colleges.

Law & Order

There is a breakdown of law and order in the state today and Kopardi is a flashpoint. I visited the victim’s family immediately after the incident and met the villagers. Both Maratha and Dalit members agreed that culprits should be dealt with severely and swiftly and no one felt that caste had any role to play in this most heinous crime witnessed in Maharashtra in recent times. What this incident really showed was the total absence of fear of law in Maharashtra today – the police is viewed as incompetent and corrupt and the government is seen as being unconcerned with justice. Scheduled Castes and Tribes (Prevention of Atrocities) Act, 1989, commonly known as the Atrocity Act is indeed being misused to frame people – but so are a number of other acts. The misuse of a law does not reflect on the validity of the law, it reflects on the Government that is closing its eyes to the misuse.

Just a few weeks back a journalist in Osmanabad was falsely framed under the atrocity act and despite appeals to the Chief Minister who looks at the Home portfolio, there was no response. If the Home Department fails to act against the corruption or inefficiency or excesses of the police, we have to admit law and order in the state has collapsed. There are almost weekly acts of serious atrocities against Dalits in Maharashtra, and there is a need to protect them so there is no question of doing away with this act. What needs to be addressed is vacuum in the Home Department where the common man cannot appeal against the false and fabricated cases or the wrongdoings and failures of the State Police.

So the Maratha Kranti Morcha, in my view is amazing because it is a fight for survival in a failed state that has ignored the farmers, the students and the victims of growing crimes. There is a dis-enchantment with all political parties today – the incompetent Congress has been replaced by the incompetent BJP and corrupt NCP has been replaced by the corrupt ShivSena and the rest of the traditional parties like RPI and MNS are merely small time opportunists. Since the Maratha Morcha has steered clear of all political parties and focused on issue based demands it has received this unprecedented support.

At the end of the day however, in this deeply caste based society it is a Maratha protest and it is knocking on the doors of Devendra Fadanvis,  a Brahmin Chief Minister in a state whose politics have been  dominated by Marathas, Dhangars, Malis and Vanjaras.

 

This post was originally published here.

1

In 1865, a child was born in Madras, India. Her parents named her Lucy Deane. As destiny would have it, in 1893, Kensington Vestry (UK) wanted to hire women Inspectors where, at that time all inspectors were men. Lucy Deane was hired and was a factory inspector. In 1898, she cautioned the authorities that asbestos was causing lung disease. The report collected dust. It took a century and in 1998, EU and France banned all forms of asbestos. (1)

As we stand today, Government of India has approved the use of GM Mustard for use in India. Like all throughout the world, there is a pro-GM and anti-GM groups in India. There have been spate of articles and influential voices who are supporting GM Mustard and its widespread use, without knowing the ramifications. Those who are against it are being labelled Luddites, risk averse, unscientific, elites and hypocrites. With government approving this, we know where the government stands.

Comparing the incomparable:

In a recent article in Indian Express(2), an author compares Viagra, Insulin and cell-phone towers and makes a point whether the elites sought zero risk proof for these products. First it pitches the GM crop as pro-poor and pro-farmer and insinuates all others as elites who swallow Viagra and go out to protest. Let me not rebut on this clever ploy of making this about one man versus the other.

The larger stupidity of this is the comparison of risks of Viagra against the risks arising out of a GM Crop. Though it is appealing to the common sense and immediately identifiable, its conceptually flawed from the first word. Viagra is a thin tailed risk and GM is a fat tailed risk. Thin tailed risks are common sense probabilistic and form the majority of Risk Management. The world as we see, revolves around with the use of such risk.

Insurance, the business which completely relies on risk had a seminal paper by Filip Lundberg in 1903 which formed the basis of what risk managers and many insurance actuaries know as Ruin Theory. Ruin is “the physical destruction or disintegration” which has no chance of recovery. There cannot be an un-ruin. Rebuilding is not bringing back the same structure which was there. By ruin, in this context, we mean the ruin of the complete system. This is not fear mongering and is grounded on sound logic and evidence.

The system here is the nature. This system is so complex that we cannot predict the weather pattern for the next month. The complexity of the system also makes the impact of GM crops unquantifiable. In 2005, UNESCO with its advisory body World Commission on the Ethics of Scientific Knowledge and Technology (COMEST), released a paper called as “The Precautionary Principle.”(8) It states:

“The emergence of increasingly unpredictable, uncertain, and unquantifiable but possibly catastrophic risks such as those associated with Genetically Modified Organisms, climate change etc., has confronted societies with the need to develop a third, anticipatory model to protect humans and the environment against uncertain risks of human action: The Precautionary Principle (PP).”

What it states is essentially this: lets protect before something bad occurs and not get into the damage control where we may not have any chance. This paper also puts forth when we need to apply this principle. Just by quoting this, we cannot stop the human progress.

Conditions to satisfy are:

  1. Complexity of the system
  2. Unquantifiable scientific uncertainty

If we look at GM Crops, it is a tailor case to apply this principle.

One, interaction of GM Crops with nature cannot be ascertained because nature is highly complex system and it is non-localised. Two, the impact is unquantifiable. Applying the risk of ruin, which essentially states that the impact cost will be infinity, and any non-zero probability will make the overall risk as infinity.

This is not same as one crore road accidents nor losing Titanic nor losing MH370. These are localised risks. Or the aforementioned opinion item provocatively mentions – Viagra.

Anyone who states that GM is completely safe is fooling us and fooling themselves. A recent study has revealed unintended mutations were induced in mice by a genome editing technique. And we are not sure how that will affect GM Crops.(3)

Thus we can safely conclude, that this is a system which must be seen from the Precautionary Principle and Ruin Theory view.

For detailed study of these risks, please read the books The Black Swan and Antifragile by Nicholas Taleb.  Also, he, along with many has authored a paper on GMO based on Precautionary Principle.(7)

Anti GM is essentially anti-corporates:

This is another lie that is being spread against the principled, theory and research oriented stand against GM Crops. What this essentially states are that since the anti-GM group, doesn’t like profits, are somehow socialists or communists and hence hate corporate profits. The same author(2)chides us for being perfectly fine with the duopoly of only Boeing and Airbus for travel and iOS and Android for mobile. Be that as it may, let me not address the trap again but the logic why this is wrong.

Nature provides biodiversity. What we essentially see in GM crops are close to monoculture. The single minded approach to GM crops as espoused by the pro-GM side is productivity. More, for less. More, for less land. More, for less water. More, for less pesticide. More for less, insecticide. More, for less fertilizer. Even our love of our own mother has some negatives but nowhere will you find any negatives that the pro-GM lobby presents with us. This is logical.

Let me present you another evidentiary proof. Between, 1845 and 1852, more than 10 lakh people died of famine in Ireland, also known as Great Famine of Ireland or Potato Famine. The root cause of this is a blight had wiped out the entire crop in Ireland.  What is also said and repeated many times, which we tend to forget is that the entire population was dependent on just one or two varieties of potato.

Now, you can see that why one loss of MH370 is not as same as a crop failure.

Now, you can see why the risk is unquantifiable and the losses in this case is near infinity or what we call as ruin.

With our single minded aim to improve productivity, we are laying the foundation for the unknown. Again, this is not fear mongering to be ignored, this is rooted in risk theories and in history.

Recent studies have also shown that GM crops may not be as insect resistance as we might have thought.(4)(5) This states that there is an evolutionary resistance to the GM crop. Again, we do not understand the nature as much as we think we do. And as stated above, nature is complex.

Mankind has always tampered with crops:

This is another half-truth that is being peddled by the lobby. For example, we are shown a black rose which is not available in nature but has been modified by the influence of mankind.

In 1865, Gregor Mendel, gave a speech on his experiments on peapods. The translated title of that speech stands “Experiments in Plant Hybridisation.”(6) This is essentially wrong comparison, again. Methodologies, processes and techniques were human but the ‘law of selection’ was left to nature. But, in present GM crops, we tend to select on behalf of nature. And herein lies the greatest issue we have.

Mankind have played with crops and animals. All the dogs that we see are examples. The interracial kids that we see are examples. We, you and I are examples of this selection. But nowhere but in GM crops have we altered at this micro level, the DNA.

The march of technology is inevitable. The advancement of science is unstoppable. But what can be and must be done is to make these crops into more and more trials till we are near certain that there won’t be any systemic impact of ruin.

The Precautionary Principle also states that the burden of proof does lies with the entity which brings into the system the GM crops.

To borrow Sun Tzu, “it’s a matter of life and death. A road either to safety or to ruin. Hence it is a subject of inquiry, which can on no account be neglected.”

  1. http://www.wilpf.org.uk/wp-content/uploads/2015/05/Streatfeild-Lucy-Deane.pdf
  2. http://indianexpress.com/article/opinion/columns/gm-mustard-us-them-the-farmers-4683373/
  3. http://www.gmwatch.org/en/news/latest-news/17657-crispr-induced-mutations-what-do-they-mean-for-food-safety
  4. http://www.huffingtonpost.com/carey-gillam/new-research-shows-failin_b_14003604.html
  5. http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0169115
  6. https://archive.org/details/mendelsprinciple00bate – Page 317.
  7. http://www.fooledbyrandomness.com/pp2
  8. http://unesdoc.unesco.org/images/0013/001395/139578e.pdf

This post was originally published here.

2

A Twitter tag #JaiKisan is attempting to educate Indians on the realities and conditions of farmers in India. Farmers produce the country's food. They purchase inputs at retail prices, sell produce at wholesale prices. Unlike a lot of products, farm produce is relatively short lived and takes a long time to grow. A crash in prices basically means doom, because they have already invested in the produce. The reasons for their losses are many and varied. From the vagaries of nature to corruption depriving them of irrigation. From failed crops to bumper harvests with no value because demonetisation has sucked all the money out of the market. This year we saw excellent harvests of tomatoes post a good monsoon being dumped on the streets or cut down as they stood ready for harvest, because there wasn't enough money in the market and prices had crashed so badly, that even transporting them to markets for selling was a loss making venture.

There are other oddities and absurdities you will notice on the #JaiKisan tag. Take for instance Tuvar dal with an MSP of Rs5050/Qt when the input Cost is Rs6403/Qt. Not only is this loss making by design, the farmers actually got only Rs4200/Qt resulting in a loss of Rs2200/Qt. On the other hand, India imported 28 lakh tonnes of tuvar dal at Rs 10114/Qt. The input cost for wheat is Rs 1943/Qt, while the farmer got Rs 1525 - resulting in a LOSS of Rs. 418/Qt!!! Where is the sense in this? Why couldn't the government purchase from farmers at fair prices that covered at least input costs and ideally at least some profit, when they were willing to spend foreign reserves to buy for much higher prices? There are no answers.

This is particularly brutal for small farmers, who have to live on the profits off much smaller land. Is it any wonder then that over 72% of farmer suicides are among small farmers with less than 2 hectares of land? One would think that small farms are inefficient and therefore they are making losses, but that is not true, research after research has shown that small farms are actually between 200% to 1000% more productive than large farms in terms of harvest per area around the world. The problem lies in the greater productivity being over a smaller area, and thus not amounting to large enough profit in total. Yet small farms are clearly the answer if we wish to have maximum productivity from available land!

"Jai jawan, jai kisan" was a powerful slogan by then Prime Minister of India Lal Bahadur Shastri in 1965 at a public gathering at Ramlila Maidan in Delhi. Today, the average income of an Indian farmer is around Rs. 6,400. What sort of life can a person afford with that kind of income? Is it any surprise that India is losing farmers at a rate of about 2000 farmers a day leaving the occupation nationwide?

All this boils down to policies. We seem to have lost a holistic view of what sustainability means to a country. The only time policy makers appear to pay attention to the plight of farmers seems to be when it is time to get votes. Then you have big promises and loan waivers. But the story of loan waivers too is not what it seems. While the perception of agricultural credit is that it would go to farmers, agricultural credit is for the agricultural sector. Farmers get maybe 35% of it, the rest going to industries and businesses related to the agricultural sectors, or as P. Sainath puts it, "the starving farmers of Malabar hill (an elite locality in Mumbai)". Most small farmers find it extremely difficult to get loans from the bank, even when they have the required documents, Others cannot get the loans when they don't own the land they cultivate (no collateral). This drives most farmers to seek loans from informal money lenders, even, in many cases money lenders taking loans from a bank and forwarding them to farmers at higher interest rates! Thus, farm loan waivers amount to maybe 35% of the waivers going to farmers, with the rest going to businesses and industries that are not in distress, while having no impact on the crippling loans taken from moneylenders (though the money lender may get a waiver if they took the agricultural loan from a bank to lend at higher rate).

There has always been a lack of foresight in our approach to agriculture. Influenced by large industries and what they wish to sell rather than listening to the person working the soil. The "Green Revolution" that relied heavily on chemical fertilizers brought a period of bounty that led to heavily depleted soil that cannot produce without heavy applications of fertilizers. The chemical damage to soil ecology, the contamination of ground water from the chemical runoff, the thoughtless push of GM crops like Bt Cotton (which requires more water than regular cotton) in places with depleting groundwater tables and dependent on scant rainfall.... All this has resulted in long term damage to the viability of agriculture and the economic sustainability of farmers. We are not able to see solutions beyond magic wands waved for votes.

Consider the absurdity of pushing GM crops when they have not proved as beneficial to small farms. All that it has resulted in is more resistant pests in return for some short term increase in production, that is already dwindling. On the other hand, the government is also pushing organic farming to prove some utility for cattle manure. Here is the deal. Organic farming depends on a robust ecology of the soil and surroundings with natural checks and balances that enable thriving crops. GM crops are accompanied with heavy doses of fertilizers, herbicides and as the resistant pests increase, pesticides as well - these destroy naturally abundant life forms that are necessary for organic farming. Pushing both at the same time basically squashes the farmer between two completely incompatible methods of growing crops. One from big industry influence, the other for ideological justification. Who pays the price? It is the cultivator, forced to stand with one foot on two stones, becaue while he may choose one method or the other, the ground water or pests do not understand boundaries indicating ownership of land and other cultivators may be making other choices.

This is but the tip of the iceberg. What is needed at this time is to ensure that farmers have an income they can live on - particularly where food crops are discouraged by the government in favor of cash crops that are at the mercy of market prices and cannot be consumed by the farmer for survival, regardless of the gamble with nature. There is a need to ensure irrigation on a war footing. There is a need to ensure low input costs and better sale prices. There is a need for an agricultural vision that is grounded strongly in research and making the country food sufficient and not dependent on imports to meet nutritional needs. There is a need to improve the capacity for food processing and storage with farmers so that they are not forced to sell at low rates for fear of perishability.

But all this needs a government with a vision. It needs citizens with voice interested in where their food comes from, and what the risks are, if that system is breaking down. in my view, the #JaiKisan tag serves this educational purpose in a time where agitating farmers from Tamil Nadu are protesting in increasingly desperate ways - sitting with skulls of farmers who committed suicide, eating rats, drinking urine, eating food served on the road and worse - with complete disinterest from a government that always makes a big show of concern for farmers when it comes to seeking votes.

I urge you all to read the content on the tag #JaiKisan and educate yourselves. The future food security of your children could well depend on it. The current survival of your food growers does depend on it. Happy next meal.

End of January marks the grape harvest season around Nashik. After falling prices after demonetisation led farmers to slash down standing tomato crops last month to make way for emergency sowing of wheat to eat, hope had rested on the grape crop coming up. However for all the reports in media about farmers adopting cashless methods and grape exports and what not, the ground reality remains grim. Here is a report from the Maharashtra Times.

Maharashtra Times report on the impact of demonetisation on grape trade in Niphad, Nashik

Rough translation

Grape season in crisis

Cash crunch in banks continues; traders and farmers frustrated

Cash crunch in the city (Niphad) continues two and a half months after demonetisation with farmers, traders and citizens furious about not being able to access their own money. This taluka, famous for its grapes is completely strangled by the note ban this time around. Grape trade has slowed due to lack of enough cash with grape farmers.

In many banks in Niphad, there is tension between bank management and employees. The announcement from two days ago of being able to withdraw a lakh rupees from current accounts has dissipated in the face of banks not having enough currency notes to give out and the fury of customers is reaching boiling point. Bank officials are being forced to deal with furious customers due to lack of cash.

RBI's directive of giving 40% cash to rural banks has proved hollow. Rural banks still don't have cash. Forget 40%, not even 4% cash has reached rural banks as seen from the condition of State Bank and regional and nationalized banks in Niphad.

At the moment, the grape season has started in the Niphad region. Even traders coming from other regions are not able to obtain money. Unless the cash crunch in banks is resolved urgently, the grape season will be muted. Grape growers are demanding that the rural banks get provided with cash as per procedure.

Received a mere 12 lakh

Employees of the Niphad branch of the State Bank of India had gone to the Reserve Bank branch in Mumbai to get cash for distributing. They had gone for a day with a vehicle and police escort for the cash they would bring. Instead of a day, they had to stay there for two days and got only 12 lakh on the third. They returned with this meagre amount, having spent for three days stay in Mumbai to obtain a mere 12 lakh.

State Bank provided us cash for 50 days during the note ban. Since the last 5-6 days, they themselves don't have cash. As a result, we are not able to give farmers their own money. We are managing the finances of the bank with great difficulty.

~ Mohan Surana, Manager, Niphad Urban Bank

 

I have come here to buy grapes for trade. For that, to pay labour, minor expenses, I went to withdraw a lakh rupees at the bank. However, they returned my cheque saying that there is no cash.

~ Amitkumar Gupta, grape trader, Ugaav