Govts Stick Fails To Budge Wheat Growers
While the wheat growers seem determined to get their demand for parity between domestic and import prices acceded, the government appears equally resolute to take coercive measures, forcing the farmers to sell their produce to the official agencies.
The announcement by cabinet secretary T S R Subramaniam about the governments plan to import additional two million tonnes of wheat is the latest among the official moves aimed at artificially depressing the local prices and, consequently, further annoying the already irate farmers.
He also said that the government had enough foreign exchange to import more wheat.
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Other measures like bringing wheat under selective credit control and putting other curbs on wheat trade are also steps in that direction.
Finance minister P Chidambaram and food minister D P Yadav had also been talking openly about imports. Agriculture minister Chaturanan Mishra also spoke in similar language on Monday, though he maintained that he and his ministry were opposed to imports.
Indeed, it was precisely the ill-timed decision to import wheat on the eve of the domestic harvest that had provided ammunition to farm leaders for waging a war against the government on the issue of price.
Such a move would evoke strong protest from farmers in other countries as well. Arrival of imported grains at a time when the local growers have to market their produce invariably proves to be an irritant.
Had this provocation not been there, the farmers might have accepted the new procurement price of Rs 475 a quintal (including Rs-60 bonus) as it was Rs 95 a quintal, or 25 per cent, above last years support price Rs 380.
The fact that the government is paying more for the wheat grown in other countries than the indigenous produce is bound to be unpalatable to the local growers. The farm leaders are taking full advantage of this in further arousing the emotions.
Whoever may be responsible for it, the net result of this confrontation is unlikely to be good for the country. Though the perpetually cash-starved farmers may ultimately bow down to the might of the government, they would do so only after causing considerable economic damage and public inconvenience through road blocks, mandi boycott and picketing at ports.
All this seems unnecessary, considering the fact that the standing crop is much better than last years and the production may be up by around two million tonnes.
Had the government followed its offer of substantial wheat bonus of Rs 60 with talks with the representatives of the farmers and the governments of wheat producing states, the turn of events could perhaps have been avoided.
The Centre knows well that the governments of Haryana and Punjab are sympathetic to the farmers cause. They have in the past been giving additional bonus to wheat growers to appease their politically strong farm lobby and could be expected to do so even this year. It could have exploited this political will to defuse the situation and ensure better procurement.