Who Really Benefits From Agri-Corporatisation?

We are often advised that corporatisation will automatically take care of ills of agriculture (e.g. low productivity, lesser influence of middlemen). But who is driving the corporatisation agenda into Indian agricultural system? Consumers? No. Producers? No. 

The government’s primary economic function is to maintain competition. Instead, the top priority of the government has become to promote economic growth. Corporate interests have entered every aspect of agriculture — from the making (influencing) of laws to the delivery of basic public services. The corporations have gained so much influence in certain machinery of the government that not only does it fail to ensure competition; government at times has become a tool for corporate exploitation of both people and resources.

 
To cite the example of Bihar in maize: In December 2009-10, the state had to step in with distributed assistance to farmers. The state exchequer had to take on an extra burden of 61 crores, which it had to pay as compensation to farmers using private hybrids, on account of “non-formation of grain”. This is the first time a chief minister has dared to expose a large body corporate that in connivance with GEAC (Genetic Engineering Approval Committee) & ICAR began trials even before the environment ministry’s clearance. 

On the other hand, the “so called” success of BT Cotton in the states like Gujarat has been over emphasized by the political class. In the interlocked agricultural market, if individual commission agents at times have hijacked the chain in past on delivery side, it is more likely that institutionalised middleman with their stranglehold over the ability to influence policymaking will prove to be a curse both on supply and delivery side. 

As a consequence of farm politics, some commodities are more heavily subsidised than others. Majority of all food/farm subsidies goes to wheat, rice, sugar and that too in limited pockets of a few states. 

All over the world, some of the most blatant conflicts of interest in politics have occurred among politicians and others who serve in important agricultural policymaking positions and has substantial interest in doling out the subsidy baggages to the pockets of influence. They put the economic interests of corporate lobbyists ahead of the public interests of society in general. In certain cases, these influential persons have also become business partners of the corporate.

Past experience shows that big food retail has neither benefited the farmer nor the consumer. Contrary to popular belief, the big retail has not helped in creating jobs either. If the supermarkets were so efficient for the farm economy then why is the US providing massive subsidy to its farmers? 

In corporatised food value chain, the individual nutritional (protein, carbohydrate, vitamin etc.) components are highlighted over balanced diet (dal, roti & subzi). Problems of obesity, diabetes, hypertension, heart problems, and food-related cancers have become epidemic with growing corporate control of the US food system. Let us protect India from these. 

Published in The Economic Times