SUICIDE OF THE POTATO GROWERS
The potato growers of West Bengal were in terrible crisis this year. The price they got for their potato was far less than normally expected. A number of them could not even sell their produce but were compelled to let it lie and rot in heaps on the fields. They did nothave the option of keeping it in the cold storage and wait for the price to go up, for all the cold storages were full. Now, potato is not a crop like rice or wheat which can be stored anywhere as long as one wished. It begins to rot soon if it is not put it in a cold storage. Consequently the potato growers, therefore, had no way but either to consume it up at home or to sell it out to the middle traders at throwaway prices much below the cost of production. In such a situation, especially those peasants, who cultivated potato by borrowing heavily in the hope of a sizable profit, suffered the most. Many of them have already committed suicide. Although as usual, the state's Trinamul Congress Government did try to pass them off as merely due to some family feuds, that the potato growers have suffered heavy losses this year is an evident fact. The problem is acute especially for those who had borrowed money to lease land and cultivated in 5 to 10 bighas [BENGAL'S 1 BIGHA=1600 SQ. YARDS] of land as the amount of money loaned is quite big.
This incident brings to the fore an inherent contradiction of the system of production in our country. It is a known fact that the peasants often suffer losses in case of crop failures due to infestation of pests or due to flood or drought. But here we see that the opposite occurs: the farmers suffer loss due to very good production! The potato production in West Bengal this year has touched the record mark and this has supposedly proved to be disastrous for the potato growers. The problem is, therefore, complex. The potato growing peasants are in the receiving end even when production drops and also when there is a boom. What is even more peculiar, this problem recurrs every two or three years.
The root of this problem lies deep within our agricultural economy. No out-of-the-way, makeshift, measure will therefore work for this ailment. A more extensive permanent cure is needed. Those who advocate readymade solutions or raise shallow demands with an eye on garnering the support of the peasantry are actually trying to obscure the path which must be taken to solve the underlying contradiction of our agrarian economy. It is our duty and responsibility to place an objective explanation of this social problem and accordingly specify the concrete steps towards the solution. This essay is a small endeavor in that direction.
Wherein lay the actual problem?
One thing is to be kept in mind - that large scale farming is not yet quite developed in our country. Here, it is not like the advanced countries, where the whole agrarian system is controlled by a few entrepreneurs who spell the last word in the field of agriculture. There, it is they who decide which crops are to be sown, in what proportion and where, as also where they will be sold and at what price. In this respect it is they who get the full support of the state. They are so powerful that, to ensure a profitable price, they sometimes throw tonnes of crops in the sea or destroy them in any other way. It even happens that acres of farm land are kept untilled and the State gives "compensation" to these entrepreneurs amounting to their average profit. There is no heinous practice that they do not resort to for running their worldwide business profitably.
Agriculture in our land is still in a much backward state than those advanced countries. Here, agriculture is undertaken by innumerable small and middle entrepreneurs. A large section among them run their family by just cultivating the land they inherited from their forefathers. Many of them are economically very weak and their landholdings are very small. They do not possess the necessary capital which is needed for applying modern techniques of cultivation. But, there is another group which is increasing in number. They can be found in the states like Punjab, Haryana and Uttar Pradesh. They have bigger lands, or take land on lease and till them using modern methods with the aim of selling the harvest in the market. Further a big section among them has the will but not the means. Every year, they take heavy loans from the banks, co-operatives or the money-lenders for cultivation. But the hard reality on the other hand is that these small entrepreneurs do not have the power to decide the price of crops in our country. The decision still lies with the big traders and their middlemen and agents who profit hugely from selling agricultural products each year but who do not invest any part of that money into agricultural production. The fate of our agriculture, as also of the peasants, is in the hands of these traders. If it is a year of good yield, they keep down the price of the crop on the pretext of over-supply; and if the crop fails, they manipulate to artificially lower the market prices in such a way so as to still offer a low price to the peasants to ensure profits for themselves. On the other hand if the peasant manages to get some extra money by selling a particular crop in a year, the next year he borrows more and sows the same plant in a larger plot with the hope of getting a bigger profit. As a result, there is over production of that crop that year, the price falls and the peasants suffer loss. This cycle goes on. Especially, in cases of crops like potato, which quickly rots unless kept in the cold storages (and the number of cold storages is limited in the state of West Bengal), it is quite natural that this problem assumes a bigger dimension.
Let us see the actual picture to find how this problem recurs in potato cultivation. Refer to the table given.
TABLE: POTATO PRODUCTON IN WEST BENGAL
YEAR | POTATO PRODUCTION (in lakh tonnes) |
2009-10 | 138 |
2010-11 | 134 |
2011-12 | 96 |
2012-13 | 116 |
2013-14 | 90 |
The potato production in West Bengal reached a low of 96 lakh tons in 2011-12. It increased to 116 lakh tonnes in 2012-13 and dipped again in 2013-14 to 90 lakh tonnes. It is seen, that in those years which saw production booming up to 116 or 138 lakh tonnes, the price of potato plunged deep and the potato growers suffered big losses. Again, in 2011-12 and 2013-14, potato cultivation got extensively infected with blight disease. In some places, the infestation was so great that many peasants could not reap their potatoes from the fields at all. But those unaffected by the affliction made considerable profit. Their benefit came at the cost of the misfortune of thousands of others who were the victims of the pestilence. And, this year, the record production proved disastrous for all of them. So, it comes out that the potato growers make profit only when production drops. Or more correctly it may be said that if potato production in the state remains restricted to 90 to 100 lakh tonnes only then the cultivators can profit.
Two things may be kept in mind in this connection. Firstly, the majority of the people in the cities as well as in the villages have to buy potatoes from the market. They had to pay rupees 25-30 per kg in those two years when the farmers earned a bit more. So, it ends up that for the farmers to profit, lakhs of common people must pay higher. Some are demanding that the government should buy potatoes from the farmers at a higher price so that they can survive. Then again demands are raised that the government should ensure sale of potato at reduced rates during the year as the prices are high. Is this the road to a permanent solution? The second point is, if the production target is fixed at 90-100 lakh tonnes, then potato cultivation would be profitable. But how can the lakhs of potato growers, competing with each other to carve out their profits, be dissuaded so that the seeds are sown over a limited area? Who can do that and how? Why would the farmers heed to any such advice? Is it possible to control production in such a way in the ongoing system?
Who are facing the problem most?
We have already seen that there are two categories of peasants in West Bengal. The first among these are mainly poor peasants or small land-holders. They cultivate potato in land-holdings measuring 5-15 cottahs [in West Bengal 1cottah= 80 sq. yards]. They do not cultivate over extensive tracts of land. They mostly labour with their own families and/or engage hired labour to a limited extent. The bulk of the potato produced by them is kept in the cold storage for consumption of the family itself throughout the year and some amount is kept for next year's use as seed. Any surplus over and above this is certainly sold in the market to make up for the production cost to some extent. This year though, this could not be done. This section buys the seeds from the peasants, who offer them at a much lower price than that of the same category mother-seed or the Punjab-seed. The peasants sell seed-potato at Rupees 1000 a sack, while the mother or Punjab-seed sells for Rupees 3000 or more per sack. Thus the cost of cultivation is reduced to a fair degree and the yield is also comparatively less. The fluctuation in the price of potato definitely affects them, but it does not push them towards suicide. The number of peasants/holders belonging to this section is considerable in West Bengal.
The second category includes peasants in this state who rear potato on lands measuring 5-15 bighas of which they may be holders themselves or may have taken land on lease. Their number is increasing of late. They cultivate using costly high quality seeds, chemical fertilizers, micro-nutrients, pesticides etc. and employ hired labourers for the whole operation. They produce entirely for the market and calculate the profits from the very start. The amount to be kept in cold storages, the time when the potato would be released in the market, or the quantity that would be sold directly from the fields depending on the running price ?- all these steps are planned by them long before the potato is harvested. Some of them even keep themselves aware and updated about the current scenario of potato cultivation in other districts and states also. They roughly spend Rupees 20-22 thousands per bigha of cultivation. The money is sourced mainly from the banks, co-operatives and the money-lenders as loans. Most of them have to repay the loans as soon as the potato is harvested. Those, who have additional incomes other than from agriculture, can somehow manage. But, those who do not have often suffer. Their loans amount from Rupees 3lakhs to 5lakhs. This year, this section faced acute problems. Firstly, since the price of potato was low, selling it to the traders during harvesting from the fields would result in loss. Secondly, if one keeps it for selling later with the expectation to sell at better market prices, it must be preserved in the cold storage which is not available in requisite numbers in the state. On the other hand if the traders are not able to transport it to other states, they become reluctant to buy the potato. A combination of all these factors led the peasants of this section towards suicide.
Is there a way?
Some question that, since potato is grown only in some states like West Bengal and most of the states do not produce it, it can easily be supplied to the other states. Why is not this simple solution worked out?
The quantity of potato produced in West Bengal far exceeds its demand in the state. Adding up the quantity required if all the residents of the state buy potato, according to their actual necessity and economic capacity, with that required for keeping as seeds for the next year and also taking into account the amount generally wasted during reaping, preservation and keeping in cold storages the total comes out to be about 61.63 lakh tonnes. But the average yearly production of potato is 90-100 lakh tonnes in the state. So there remains an excess of 40-50 lakh tonnes, for which there is neither a market in West Bengal nor can it be stacked in cold storages due to poor infrastructure. Now, if this excess potato cannot be sold outside the state quickly, not only will it be wasted, but the price of potato in general will drop, creating uncertainty for the peasants. Thus, a suitable market is an urgent need.
West Bengal is second in potato production in this country, the topper being Uttar Pradesh. The bulk of potato (85%) supplied throughout the country comes from UP, West Bengal, Bihar and Punjab. All the other states, combined, account for the rest 15-16%. So, the potato from West Bengal definitely has a market in other states.
But, the problem is that the whole business is controlled by big traders, their agents and middlemen. They profit doubly. On the one hand, they compel the peasants to sell the potato at a depressed price to them. On the other, they charge a high price for the same in other states. They are the ultimate owner of the crop. It is they who manipulate the price of the potato to make it vary from Rupees 2 to Rupees 22 per kg. Definitely, they act in accordance with the rule of demand and supply of the market. For example, this year they spread the rumour that, potato from West Bengal could not be sold outside West Bengal because there is bumper production in all the states. Supply to the market was enhanced quickly. The peasants became panicky that the market would be down and they all began to sell their potato as quickly as possible. The traders took this opportunity to bring down the price drastically. As a result, it will be not at all surprising that if the potato which did not fetch even Rupees 2 per kg in the fields during harvesting at that time is procured after several months at Rupees 25-30 by the consumers. This can happen because the game is completely in their hands. The peasants, who made the primary investment, took the risk and laboured for months, have no right as owners on their products. The sly traders are even going so far as to buy potato from West Bengal at Rupees 2 per kg, put them in packets of Punjab-seed potato, and sell these to the peasants at much higher rates of Punjab-seed potatoes----- Rupees 3000 per packet! Not only in case of potato, these traders and middlemen are dominating the whole monopoly business of agricultural products of all kinds. It is they who decide the prices of the crops and also, the fate of the peasants.
What about the foreign market in this era of so-called free trade policy?
The question is relevant, now that the whole world is a market - as for many years the government, while withdrawing all the regulations and restrictions in the name of free trade with other countries, have been saying. Then why is not the potato being sent to foreign markets so that the cultivators can profit by it? The government itself had preached the peasants that they should raise a crop not only with an eye on the local market, but also the overseas one. What is the government doing when the potato growers are in such crisis? Why is it not looking into it so that the crop can be exported? Is this demand of the peasants irrational? Let us also probe the reality behind this.
It is true that there is a huge demand of potato in countries like Mauritius, UAE, Sri Lanka, Malaysia, Singapore, Nepal and Bangladesh. The Jyoti potato sells well in Nepal and Bangladesh, and the Chandramukhi variety is appreciated in Afghanistan, Iraq and Iran. So, there is enough scope for export of potato to outland markets. The export market of the raw potato in the whole world is of 65-67 lakh tonnes. The market of potato fry is of 54-55 lakh tonnes, which requires 1crore tonnes of raw potato. But, this huge market is dominated by only ten countries - the prominent among whom is the USA, Belgium, the Netherlands and Canada. Based on the monopoly business enforced by them within their countries and throughout the world the markets are being glutted with potatoes at so cheap prices by these countries that it is becoming impossible for other countries to compete and make entry into the market. The purported objection against the Indian potato is that it is costly and its quality is not up to the mark. A government survey says, "In world context, potato export from India does not stand mainly due to high prices and poor quality and inconsistency of produce." [Food Processing Industries Survey, West Bengal, Potato, westbengal.gov.in/ Banglar Mukh]
These cause the potato export from India to be limited to a maximum of one and half lakh tonnes. Again, though West Bengal stands second among the potato producing states in the country, its contribution to total potato export is negligible. For similar reasons the state sends insignificant amount even to the adjacent countries like Nepal and Bangladesh where the demand for these varieties are high.
The 'free trade economy' now exists only in demagogy, in reality the advanced capitalist countries, being imperialist in nature, elbow out others from competition and exert their own monopoly. The root of the problem therefore lies deep within the market economy itself. Agriculture in the imperialist countries is so advanced that they can organize the whole production by employing minimum man-power. The cost of small-scale production in countries like ours, therefore, far exceeds that of mechanized large-scale production in those advanced countries. Secondly, there the State in diverse round-about ways helps their big capitalist farms to retain the big share in the world market by providing huge subsidies. There is little possibility that our small producers can prove their presence in the international market by competing with the world-wide web of the retail giants like the Wal-Mart. Such detailed explanation needs to be given because, in the context of the potato growers' crisis, these days many point to the market abroad - as if it is fully open and free and the Indian peasants have an easy access there. The facts show that it is not so.
But what is the way out then? There is one, as put forth by almost all political parties. They solicit that the government buy the crop from the peasants at a price profitable for the cultivators. The government even does so occasionally. But every time such steps have been to the advantage of the big, or, at the best, another small portion of the middle peasants. For many reasons, the small peasants can not avail of this kind of opportunity. The big and rich profit, the poor tiller remains entrenched in problems. There is another aspect to it. The crops for which profitable prices are being demanded are not only directly consumable food crops but also crops used as commercial or industrial raw material requiring further processing. So, when the government buys it at profitable price, these products get costly. The city workers, other poor people and even the rural labourers have to pay more for it, especially those which fall within their bare necessities, jacking up their expenditure. They constitute the majority in the home market. Hence this system affects the majority of the people adversely.
Another point to note. By raising the demand of procurement by the govt. at higher prices, the political parties feign that the peasants can live happily without uprooting the trading people, the middlemen and the money-lenders who extend monopoly control over the produce, the agro-market, who grow by expropriating the major portion of the peasants' gain, and who stand between the producer and the final consumer, to the harm of both. Their advocacy is then for surrender of the peasants to these forces in exchange for some alms from the government's side. One day the peasants will definitely rise up to refute such hateful recommendations.
It is true that the middlemen and the money-lenders are dominating agriculture in India today. If they are uprooted, the peasants will definitely increase their share of profit by selling a much bigger proportion of his produce directly in the market. But it is to be remembered that it is not only coercion and backing from the political parties that enable these parasites of the society to live on. There is an economic basis of their existence. To uproot them from society, a bigger movement is, therefore, necessary. Indignation and anger against them is rising among the peasants which may take the shape of a movement in future.
But, it is not that rooting out this section from society will solve all the problems faced by the peasants and every section of the peasants will happily live ever after. It is because market economy will still prevail without these parasites. Market system entails competition, which inevitably means victory of one is another's loss. Profit and loss, demand and supply are attributes of the market system. Here, those who lose must get out and nobody cares for them. Their pauperization is the precondition of another group's prosperity. Beating others in every step ensures emergence of monopolistic position for one or two.
This market economy engenders anarchism in production. Everybody rush to those sectors which yield profit at any particular point of time. All begin to produce the same thing resulting in overproduction, i.e., its uncontrolled supply far exceeds the demand of the market, setting in another round of loss in the sector. Then everybody leaves it and crowd to another sector which has somehow become profitable by the time. Again, the same cycle sets in there. Thus runs the market economy of the bourgeoisie. At first, it is the small entrepreneurs who get ruined, then the middle ones, and lastly, even some of the big also fall. But the very first victims are the toiling mass - the proletariat and the peasantry. They continue to get uprooted from one sector to another, millions become unemployed. Notwithstanding the high-sounding terms that capitalist economy is adorned with, and the praises showered on it by the paid intellectuals and economists of the bourgeoisie, this economy can not run without draining the workers' blood and without robbing people of their livelihood. There is no market in the world which offers only profit and no loss, which ensures only success and no failure, where jobs are generated and there is no unemployment, where the people only enjoy happiness uninterrupted by tragedy. No, that is not to be.
Therefore, the problems of the potato-growers must be judged in the context of the bourgeois economy which surrounds us. Potato production suffered in 2011-12 and 2013-14 due to infection of blight. Many peasants were devastated whereas some made fortune because of the low supply and high price. Some peasants and the traders took the advantage to profit doubly. The next year, counting on the big profitability of some in the previous year many peasants sowed potato, thinking the previous year will be repeated favourably for them. The area covered by potato cultivation increased as well as its yield, resulting in sharp increase and record supply of produce. The cold storages could not accommodate half of the potatoes. The price fell drastically. The peasants became bankrupt. The same thing is repeated almost every alternate year. Who will regulate the production in cultivation which is individually managed? The anarchy is inevitable in a system where the race for profit is the only motivation of all.
Hence short-term remedies like government procuring crops at higher prices cannot work for such maladies. The peasants, whose toil make agriculture possible will continue to be deprived of the right to their produce as long as the traders and middlemen are the dominant players. Though they are completely detached from actual production, they exploit the peasants through their control over the whole affair.
We have already seen that just getting rid of them also is not enough for the peasants, though. Their problems can be solved only when production will be organized under social planning and distribution is also controlled by the State. Production by individual private owners/producers cannot come under such social planning and control. For that, social ownership must be established in place of private ownership which means uprooting capitalism and transition towards socialism. It is true that it is no easy job, especially in a country like India where agriculture is still organized mostly as small scale production. No doubt, we have to go a long way. But the process can be taken up once the toiling people, including the proletariat and the peasantry, seizes the state power uprooting the non-peasant owners of the land, the big landlords, money-lenders and the big capitalists. Only then production can be organized in the interest of the society, controlled by it and distribution can also be undertaken with an eye to the welfare of the masses of society. Only then, the crisis which the farmers are facing today shall be removed.
When those who are against capitalism and profess socialism, knowing fully well advocate such prevalent short-term remedies within the existing system, the question arises that do they sincerely seek the fall of this bourgeois economy and the triumph of socialism? Why are some seen to be speaking for government's buying of crops at higher prices or marketing crops in foreign market for profit? Or is it that like the bourgeois intellectuals they also have lost hopes for socialism altogether and accepted capitalism to be the ultimate truth?
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