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Demonetisation is having Negative impact on Farmers: Too many Vegetables, too little Money

Tomato farmers in Karnataka and Tamil Nadu were the worst hit since prices fell by 60-85 per cent while onion farmers were the worst hit in Maharashtra and Gujarat

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FILE - A private money trader counts Indian rupee currency notes at a shop in Mumbai, India. (Representational image). VOA

Jan 19, 2017: Sunil Kumar, a 31-year-old farmer in Tondala village, Kolar district, 85 km east of Bengaluru, lost Rs 300,000 in November when tomato prices crashed due to the demonetisation earlier that month and the excess supply of vegetables.

Kumar, who cultivates tomatoes on his five-acre farm, said he made a profit of Rs 30 lakh during the same time last year.

The 110 per cent drop in income from 2016 has come at a time when the weather — and so the harvest — was good this year, said Kumar. So, demonetisation – under which Rs 500 and Rs 1,000 notes, which accounted for 86 per cent of all cash, were banned on November 8 — couldn’t have come at a worse time. With money sucked out of the market, there was a tomato glut, and prices crashed by 80 per cent.

“A 15-kg crate of tomatoes traded this year between Rs 30 and Rs 50 (instead of Rs 700 at its peak),” said Kumar. “I had no reason to spend on transportation and bring it to the market or wait for the price to pick up. So, I uprooted all my tomato plants in late November to minimise the loss. This is the worst we have seen in my experience.”

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Kolar is the biggest vegetable-growing region in Karnataka, and houses Asia’s second-largest tomato market. In November, the ruling price of tomatoes in the Kolar market was Rs 3-5 per kg, or 85 per cent lesser than the same time in 2015.

Kumar’s case is echoed across India. The price of tomatoes crashed to 25 paise/kg, reports said, which prompted farmers in a Chhattisgarh district to dump nearly 100 tractor-trolleys, or about 45,000 kg, of tomatoes, on a national highway.

Similar incidents by frustrated farmers were reported in Nashik, Hyderabad and other key vegetable-growing regions.

Tomato farmers in Karnataka and Tamil Nadu were the worst hit since prices fell by 60-85 per cent while onion farmers were the worst hit in Maharashtra and Gujarat, according to an IndiaSpend analysis of vegetable prices in seven Indian cities — Ahmedabad, Bengaluru, Chennai, Hyderabad, Delhi, Kolkata and Mumbai — between November 2015 and November 2016.

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The price of potatoes, which have a shelf life of up to 2-3 months, was stable in places such as Delhi and Chennai, while it rose between 17 per cent and 25 per cent in Bengaluru and Mumbai. The price of potatoes per quintal was Rs 1,086 in November 2015, increasing 27 per cent to Rs 1,376 in November 2016.

The price of peas dropped between 15 per cent and 20 per cent, with arrivals increasing in six cities, except Mumbai.

The crash in prices was also due to oversupply, the data show. While the prices of tomatoes (hybrid variety) fell by 55-85 per cent, the supply was double and even triple the previous year in parts of India, such as Ahmedabad, Kolkata and Hyderabad, according to data from the National Horticulture Board.

In Chennai, for instance, the maximum price a farmer could get per quintal of tomatoes in November 2016 was Rs 760, compared to Rs 4,900 in November 2015, a drop of 85 per cent. The supply to the city was 2,910 metric tonne, an increase of 40 per cent from 2015.

In Hyderabad, prices dropped 60 per cent but supply increased 337 per cent in November.

Onions were traded anywhere between Rs 650 and Rs 1,500 per quintal in November 2016, compared to Rs 3,027 to Rs 5,600 in 2015.

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At the Lasalgaon Agriculture Produce Market Committee (APMC) in Nashik, Maharashtra, India’s largest wholesale onion market, onions were sold at between Rs 5 and Rs 7 a kilogram.

In the seven cities we analysed data for, supply was 196,400 metric tonne in November 2016, against 186,175 metric tonne in November 2015.

The situation worsened in December, as prices fell by another 20-50 per cent, and peas traded at a 10-year low in the Delhi market, according to officials from the Horticulture Department.

“The monsoon rains would subside during September to November, and it would result in lesser yield, indicating lesser supply and higher prices,” Bellur Krishna, Managing Director of the state-owned Horticultural Producers Cooperative Marketing and Processing Society, told IndiaSpend. “This year, the rainfall was good in the vegetable-growing regions of Karnataka.”

“This led to good harvest but the prices are also down due to the cash crisis triggered by demonetisation,” he said.

Kolar, Belagavi, Haveri and Chitradurga, the top vegetable-growing regions in Karnataka, received normal rainfall during the southwest monsoon in 2016. But Karnataka declared a drought in 22 districts and some additional talukas in October 2016; the state received Rs 1,782 crore from the central government.

“The impact of demonetisation could only be to the extent of 20 per cent of the price fall,” said Krishna.

Around 9.4 million hectares, or 10 per cent of India’s cropped area, is under vegetable cultivation, of which 50 per cent is given to potato, onion and tomato, according to Horticulture Board data.

“Most of the transactions in fruits and vegetables are in cash,” Brajendra Singh, Director, National Horticulture Board, told IndiaSpend. “So, demonetisation has definitely had some bearing. Arrivals had increased; so, the downturn was obvious.”

Tomato cultivation is usually routed through market clusters (around cities) and is profitable, Singh said.

“This time, it was available from local sources,” said Singh. “The price of tomatoes had gone up to Rs 50 a kg over the last two years. This year, the climate was favourable and resulted in bumper crops. Suddenly, the markets were depressed due to oversupply and because there was no cash.”

Singh predicted the situation would be “normal” over the next quarter, and crops would fetch a good price for farmers by the summer of 2017. (IANS)

Next Story

The Errant Son: Mir Murtaza And Al-Zulfiqar

Would the Bhutto charm, have worked on India? And had it been so, would the map of the Indian sub-continent today, have resembled the idea of a free market zone in South Asia, with porous borders?

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By: Tania Bhattacharya

India-Pakistan relations have hit a record low following the dastardly Pulwama Attack on a CRPF convoy in Indian administered Kashmir, on the 14th of February this year. Curiously, the Pakistan PM Imran Khan, made a statement a few days ago, endorsing the Indian PM Modi, and suggesting, that in case there was a re-election of the latter, the Kashmir issue may be finally resolved. This scenario is significant, given that both Imran and Modi, are perceived hardliners in their respective nations. As some South Asian policy watchers have noted, it is hawks like the two aforementioned heads of state, and not peaceniks, who are more likely to take large risks over bilateral issues involving the two neighbours, since if any of them is required to acquiesce, they cannot be labelled as anti-nationals. Peaceniks, their good intentions aside, are looked upon with suspicion in their countries, which accuse them of selling out.

 

These are the heady days of jingoist patriotism in South Asia, where Right Wing organizations seem to be faring much better than the other political alternatives; but there was a time not very long ago, when Southern Asia was in a sweet spot between Dictatorship and Democracy, where conducive factors facilitated the spectre of Left-Wing radicalism, in both India and Pakistan. Between the imprisonment of Pakistan’s democratically elected PM Zulfiqar Ali Bhutto and the mysterious plane crash that killed President Zia ul Haq in 1988, a shadowy entity by the name of Al-Zulfiqar had emerged out of the pale, and rocked the Zia dictatorship, with its nuisance value. What were the origins of Al Zulfiqar, and who, was its chief executive officer?

The PIA Hijack drama
The PIA Hijack drama

We must retrace our steps to the early 1970s, when Zulfiqar Ali Bhutto was the Pakistan president. His eldest son, and second-born, Mir Murtaza, would build a lavish tent on the sprawling lawns of 70 Clifton, the Bhutto residence at Karachi. Inside the private sanctuary he had made for himself, the young lad would read the influential works of prominent Marxist revolutionaries like Lenin, Mao, and Che Guevara. The walls of his tent would be adorned with posters of world-famous figures, who had adopted Marxist techniques and applied them to their personal agendas. Murtaza had become deeply involved with the guerrilla warfare ethos of Socialist insurgents and quickly became a role model for his younger male sibling, Shahnawaz, junior to him by four years.

 

Sensing that the wayward, and obstinate nature of the older Bhutto was getting him into trouble with his high school officials and law enforcement, Zulfiqar had insisted, that Murtaza abandon his tent, and his Leftist reactionary literature, to concentrate on his school syllabus, so that the straight and the narrow could produce results for the latter. As soon as it became possible, and after consulting his wife Nusrat Bhutto, the President had packed off his enfant terrible to study in the United States, and then to England, where he hoped, that a new environment would change him. It was here, that Murtaza shone. A thorough academic, he researched upon and produced a dissertation, concerning the consequences of India’s nuclear program, on Pakistan. He developed the reputation of being a cad, and somewhat of a lady’s man as well, during his student years in London, where he was a regular sighting at nightclubs, with one or the other pretty girl, on his arm.

 

His father, had made the issue of the ‘Muslim Bomb’ an international one, arguing, that since the Christian, Hindu, Jewish, and Marxist political spheres had their own, ultimate weapon of mass destruction, it was only fair that the Islamic world follow suit. Israel though not openly belligerent with the bomb, was suspected of being in possession of the technology to construct one, in 1966 itself. Moreover, it had refused to sign the NPT (Non-Proliferation Treaty). Pakistan, under his leadership, he had sworn, would ‘gift’ the Muslim world with its first nuclear weapon. The president’s (and later, Prime Minister’s) son, would broach the topic on an academic level, and make its knowledge, widespread.

Zulfiqar Ali Bhutto with his third wife Husna Sheikh
Zulfiqar Ali Bhutto with his third wife Husna Sheikh.

Murtaza was yet abroad, when his father, by the time, the democratically elected Prime Minister of his country, was toppled in mid-1977, in a military coup, headed by General Zia ul Haq, who until the event, had been Zulfiqar’s handpicked Chief of the Pakistan Armed Forces; and a man, that the confident, and arrogant premier, termed his ‘monkey general’. In a letter, handwritten to her brother, Benazir had advised him to travel to the United States, to meet with American leadership, that were friendly with the Pakistan Peoples Party, to plead for assistance in toppling the dictatorship of Zia. Interestingly, she had told him to steer clear of a top Bhutto aide, Ghulam Mustafa Khar. This is testified by Lt. General Khalid Mahmud Arif in his book Working With Zia. Khar, an uncle of PPP ex-Foreign Minister Hina Rabbani Khar (2008 – 2013), had been a confidante of Prime Minister Bhutto, who he faithfully plied to the home of Bhutto’s first, secret mistress, and then, legally married third wife, Husna Sheikh, on a daily basis.

 

From the United States, Mir Murtaza had decided that it was not judicious to return to a strife-ridden homeland, which was experiencing its umpteenth military rule. Instead, he had flown to Syria and then Libya, to garner support from Bashar al-Assad and Muammar Gaddafi respectively. The Assads and Gaddafi were supportive of the Bhuttos. Zia to them, was an American puppet that had been installed as a means to an end, that too, through an undemocratic and unpopular regime change. It was in Syria occupied Lebanon, that Murtaza had begun building up a guerrilla outfit, which he named, the PLA (Pakistan Liberation Army). Members from the PPP back in Pakistan, were herded off to the Middle East, for rigorous guerrilla training, that was imparted by the Leftist PFLP (Popular Front For The Liberation Of Palestine). When Mir Murtaza deemed that the time was ripe for ambushing Zia’s men in positions of power; the trained militia of PLA flew to Afghanistan, where they continued further arms training, awaiting an opportune moment, to cross into their homeland, using the mountainous, and lawless tribal routes of northern Pakistan, which flanked the Durand Line.

 

While in Kabul, Murtaza Bhutto decided to rename his outfit Al-Zulfiqar Organization, or AZO. Shahnawaz, the younger son of the jailed premier, joined his older brother and was imparted training in guerrilla warfare, and violent Marxist insurrection. When not wielding guns in army fatigues, the young volunteers and the Bhutto brothers, would watch Bollywood flicks to kill time.

 

Initially, all Shahnawaz wished to do, was to open a tourist agency in Pakistan, and live quietly with the Afghan object of his affections. But the restless circumstances that engulfed the young man, forced him to join Al-Zulfiqar, all the more so, as it had his older brother at its helm; a man he had much admired from the days of his youth.

 

One of the first acts of the AZO, was to try to blow up Zia-ul-Haq’s plane with a missile, from an Islamabad rooftop. It did not produce the desired result. Next, was the hijack of a PIA (Pakistan International Airlines) flight. It was flown to Kabul, where the hijackers stated that the plane and its passengers would only be released if ninety-one political prisoners from the PPP, were set free from incarceration in Pakistan. Zia’s response initially, was a “No”. But once it became eminent, that there were no international mediators to take on the case on behalf of Pakistan; especially once Assad and Gaddafi explained the dilemma to General Zia, the latter was forced to rethink his stand. By then, AZO had reduced the demand from ninety-one prisoners, to some fifty-four of them. The Pakistan general was forced to comply with Murtaza’s bargain, as it released the PPP detainees from various gaols in the country, who were then swapped for the PIA plane and its passengers.

Zulfiqar Ali Bhutto with Indira Gandhi and Benazir
Zulfiqar Ali Bhutto with Indira Gandhi and Benazir.

The mastermind of the hijack, was a seamlessly trained Salamullah Tipu, who was seen waving his gun in the air triumphantly from the door of the airplane, after throwing down the bloodied and dead corpse, of one Major Tariq Rahim on the tarmac. Rahim was a close aide of the Zia administration. While Tipu took the blame upon himself, and the PPP back in Karachi, led by Benazir and her mother Nusrat, denied any knowledge or existence of the AZO, Mir Murtaza Bhutto continued to avoid Pakistani authorities, was never caught on camera during the hijack episode, and was declared a wanted criminal by the Pak judiciary, in absentia.

 

In his biography of the older Bhutto scion, The Terrorist Prince: Life And Death Of Murtaza Bhutto, author, student activist, and political henchman Raja Anwar, notes, that a paranoid Murtaza had ordered for the assassination of anyone who he feared would challenge his methods as head of AZO. A sizeable number of its members were apprehended from their homes, murdered, and dumped in shallow ditches. The same author states, how he himself, Shahnawaz, Mir Murtaza, and some other workers of Al-Zulfiqar, had received lodging, food, money, and military training, in New Delhi. The government of Indira Gandhi, a Centre-Left political organization in India that is recognized as the Indian National Congress, had housed and funded the Bhutto revolutionaries and their fighters, with an eye on ending the rule of the hated Zia. In the late 1980s, when Murtaza had made a stopover at Delhi, during one of his journeys abroad, he had personally met Rajiv, son of Indira, and her successor as the next premier of India, with a large, and impressive bouquet of flowers.

The AZO leaders and members resided in the outskirts of India’s capital, and led well-oiled, luxurious lives, while simultaneously receiving training to destabilize the regime of Zia ul Haq. In this duration, the Bhutto brothers had come close to the Nehru-Gandhi clan of India, and according to a number of verified reports, may have worked as R&AW (Research & Analysis Wing, India’s topmost espionage and intelligence agency) informants for a period of time. A common agenda; that of toppling the American-installed, Islamist, and regressive regime of Zia, being the binding force.

Benazir Bhutto with Rajiv Gandhi
Benazir Bhutto with Rajiv Gandhi

Zia was killed in a plane crash in 1988. The ensuing elections found the PPP, Zulfiqar Ali Bhutto’s political outfit, sweep the polls in Pakistan. Benazir went on to become the Islamic world’s very first woman head of state. Eventually she and Murtaza would have a falling out, with the latter going on to form his own faction of the PPP; the PPP(SB), where SB stood for ‘Shaheed Bhutto’. Unlike his sister’s rule, which can be described as opportunistic and inept, Mir Murtaza Bhutto remained a ‘Peoples Man’. He shunned unnecessary displays of wealth, and was always accessible to the blue-collar cadre base of the PPP(SB). The tussle between him and his sister may have continued on its logical course with a positive outcome for whoever was Destiny’s Chosen One; but for the tragedy that shook the Bhutto dynasty on the evening on the 20th of September 1996. The founder of Al-Zulfiqar was returning home from a political meeting, with his bodyguards and workers, when police opened fire on his cavalcade, right outside his home in Karachi. In the ensuing encounter, a number of his men were killed, while he himself was seriously wounded. A few hours later, the oldest of ZAB’s offspring, the man who was slated to succeed him, died from blood loss and a deliberate attempt to deny him medical attention.

 

Fatima Bhutto, an author, a poet, and an activist in her own right, is the daughter of Mir Murtaza. In her book Songs Of Blood And Sword, she puts the blame of her father’s death, squarely on her uncle, Asif Ali Zardari, the husband of Benazir Bhutto. Whereas in her interviews, Benazir had maintained, that Murtaza was murdered by anti-Bhutto elements within the Pakistan military. She herself would be silenced a decade later, by shady forces lurking within her country’s power corridors. The Bhutto saga brings to mind Salman Rushdie’s novel, Shame, which is a Roman e clef on Pakistan’s most powerful political family.

Nusrat Bhutto, Fatima Bhutto, and her father Mir Murtaza
Nusrat Bhutto, Fatima Bhutto, and her father Mir Murtaza.

Well-wishers of the PPP and people in India who would want Indo-Pak relations to improve, cannot help but wonder, what a future with Mir Murtaza in it, would have beckoned for bilateral ties between the two fraught neighbours.

 

Would the Bhutto charm, have worked on India? And had it been so, would the map of the Indian sub-continent today, have resembled the idea of a free market zone in South Asia, with porous borders? After all, Benazir had alluded to it in an interview on the Pak TV show ‘Jawaab Deyh’.

 

Mir Murtaza Bhutto’s brutal life and demise, brings to mind the oft-quoted adage: Those Who Live By The Sword, Must Also Die By It.

Tania is a freelance writer with a masters in defence and strategic studies, who has a wide range of interests.