Holistic development

Drive Farmers Out of Agriculture

2013-01-10T02:03:00.000-08:00

India is an agricultural country. And it will be no more after fifty or more years. Or else agriculture in India will be in the hands of corporates, mostly owned by multinationals. All our government policies at present are directed into drive small and marginal farmers out of agriculture. After two decades of globalization, the country showed the initial signs of growth, which is now proved beyond doubt that the growth cannot be sustained. Indian economy is in pitable state. The mounting debts of the country, forces our policy makers to heed to the advice/threats of World Bank, IMF and the corporates which influence them.

Here is a picture of a small village in Madurai, which is an example of what is happening in India. The village Kilangulam, in Thirumangalam taluk of Madurai has around 1000 houses. There are more than 250 youth in the village ( aged below 35) and hardly 4 of them is engaged in agriculture. What happened to the rest? They get engaged themselves in mining activites in the near by hill, masionary works and other labor works, which is unrelated to agriculture. All youth invariably have mobile in their hands. The women too stopped during agricultural work.

Agriculture is only done by the elders. Who will look after agriculture in future ? This is a million dollor question.

Why people are quitting agriculture? The reasons are aplenty

1. Mean job: Agriculture is considered today as a mean job and the farmers and labourers engaged in the activity is viewed " low" in the society. (Even those who go for pursuing their career in agriculture is viewed low). The earlier Zamindhari system and underlying caste politics still prevailent in the village, forces to treat farmers especially the agricultural laborers ( mostly dalits ) to be iltreated. The dalits who have a natural tendency to come out of this social supression, seeked/ seeking their way out of villages. The government policy which favours indutrial growth and growth of service sector favored this. Instead of providing a secured platform and reducing the apathy of farm laborers to retain them in villages, government views them as cheap labor for industry and hence forcing this migration.

2. Declining Productivity: The green revolution led to mass exploitation of natural resources, land and water, excess use of fertilizers and pesticides, shift in agricultural practise from multicrop to monocrop and also changed the food habits and culture of the farm families. No proper education is given to farmers to use fertilizers, pesiticides judicially and also for effective management of irrigation. The agricultural research and extension activities were a utter failure and this is one department whose work is not largely scrutinized. Now farmers are left with unfertile lands, no cows and hence no cowdung to use as organic manure, less water due to encroachment and improper maintanance of tradictional irrigation structures like ponds, tanks, ooranis etc., The fertility and productivity of the land decreased year after year.

3. Exploitation by Multinationals/ Other Agricultural Input companies: The globalization paved way for entry of multinationals like Monsanto into the highly remunerative and potential business. Seeds, fertilizers, pesticides ( Insecticides/fungicides/nematicides) and other products flooded the market. Hybrid seeds got introduced (each and every year new hybrids of vegetables, cotton, maize etc., gets introduced). The poor farmer through the marketing tactics employed by this companies invest heaviliy of seeds, fertilizers and pesticides. Mostly half of such expenditure done by a farmer is a unnecessary expenditure. His lack of knowlede on the seeds to chose, quantity of ferilizer and pesticides to be applied gets exploited. The agricultural department and universities which functions with outdated information also could not able to provide support to farmers. Infact farmers do not treat them as " knowledgable" as theyrremain disconnected from villages. The result more expenditure, more dependency on fertilizer and pesticide companies and their dealers. Farmers gave up the practise of retaining seeds after harvest, gave up practise of applying natural organic and green manures, gave up growing of traditional varieties etc.,

4. Right price for the Produce: There is no rules, regulation and system in the country to regulate the production and price of the agricultural produce. The price of agricultural inputs has gone up three folds by the last three years and there is no corresponding price support for the produce. The minimum support price fixed by the government for the major crops is always of no use since it could not satisfy the real needs of the famers.

5. Scarcity of Resources: Water, land ( turned infertile), organic and green manure and seeds have become a scarce resource. The biggest problem is water, which became scarce due to large scale exploitation of groundwater resources, mismangement of water bodies and also due to vageries of climate. Most of the tanks and ponds in the state of Taminadu remains dry for most of the years. The water disputes and conflicts among states, among districts and among farmers are growing. Fertile lands near the cities are in the hands of real estate brokers.

6. Government Policies: Infact this is the foremost reason for the current plight of agriculture in India. There is no plan, no long term focus and no promosing research in the interest of small and marginal farmers. The plans like Integrated Rural Development Program, Agricultural credit support through cooperative banks etc., are a utter failure doing nothing in favour of agriculture. The corruption and mismanagement prevailing across the country, makes these plans always out of reach of the needy.
But the recent annoucement and polcies of the Manmohan singh government, clearly indicates that it wants smalll and marginal farmers to quit agriculture and this has been openly stated by Manmohan singh in the recent National Council Meeting. Few of the recent proposals aimed to drive farmers out of agriculture are discussed below

MGNREGP: This National rural employment guarantee program has an indirect agenda of increasing labor scarcity. I have went around many villages in Tamilnadu and have seen personally how this program is being implemented. The act says that, this program is to ensure 100 days of employment during non agricultural seasons to a individual and this employment will be used for productive pruposes like renovating common village properties. But in practise, the local people in villages see it as "easy money" . Instead of working for 8 hours they can just work for one or two hours, sit idly and chat and get the payment. Money is paid infact for not working in a agricultural field. And this employment is offered even during agricultural seasons. The labors prefer working in NREGP than in a farmers field, since they get paid for "not working" through NREGA and they have to work hard if they were to work in a farm land owned by a fellow villager. Who knows? This plan may have a backing of a foreign hand.

FDI Retail: The Foreign Direct Investment is said to benefit farmers. Then why Manmohan singh ask farmers to quit agriculture? Does the two statements are a paradox. Which statement is true? Definetly the later. FDI infact will add problems to the farmers ( The propability of FDI to succeed in India is very low, but still it will cause major damage to lives of farmers during the period of implementation). Also FDI will allow and facilitate MNCs to do indepth analysis of market so that it will enable to get hold of all the farm lands in future.

Subsidy cut and Direct subsidy: The fertilizer price rose steaply after the subsidy cut. Per bag of DAP is sold for Rs1200/ and still above in black market. Currently subsidy is given through the fertilizer companies which is infact a easy way. Government also has plans for giving backend subsidy to the farmers, stating that it will cut the existing malpractices in distirbution of subsidy. Infact the reverse is true. Farmers will be made to run from pillar to post to get the subsidy. Moreover this will pave way for more bribe. Without bribe nothing will happen in the current government system and this is a open secret. Farmers will get more dejected, give up farming and forced to sell is land at whatever price he gets.

National water Policy: The National water policy aims at privatisation of water bodies through PPP. Even ground water will be charged. There will be no exclusion for agriculture under this policy. Government has utterly failed in guiding farmers for efficient water usage in the past years. This current move will be like a grab in their neck, making them difficult to breath.

Scientific Research: All funds directed towards agricultural research is like water used to irrigate weeds. No solid research findings has come through our agricultural research in the recent years to wipe the tears of Indian farmers. Reports are also there about fake researches and fake awards fro agricultural research in India. There is no monitering or evaluating system to validate research conducted in agriculture. Too much of funds is wasted in the name of research. On farm research in farmers field depending on the context has to be facilitated. In contrary MNCs are doing wonderful research and dumping their seeds and pesticides with selfish intention on the heads of Indian farmers.

Youth migration out of agriculture, farm lands left barren, farmers suicide will grow and continue to grow and at onestage farmers will be forced to sell their lands. This is want government wants. This lands will be taken over by corporates and agriculture in India will soon be in the hands of corporates. Even during the Zamindhari system, the basic needs of the labors were taken care off. When corporate start ruling agriculture, India will be entirely in the hands of MNCs.

We people of India will again be rendered slaves and this time once for all.................

Confessions of a Microfinance heretic-Book Review

2012-10-01T09:55:00.000-07:00

Confessions of a Microfinance heretic

How microfinance lost its way and betrayed the poor

This book seems like a sequel to the book “ Confessions of an economic hitman” by John Perkins. The book “Confessions of a Microfinance heretic” unlike the former one which exposes the exploitation of developing countries, discloses the exploitation of poor in the name of development and poverty alleviation. The concept of microfinance, which almost lured every developing country as a newly found weapon to combat poverty, is nothing but a calculated exaggeration of facts as the book reveals. Microfinance is boasted worldwide as an excellent way to reduce poverty . But in reality its seen as just another business , opportunity by those who wish to reap good profits.

What is Microfinance? To Put it simple lending to poor, the amount being smaller in size, but collectively it is business in billions at present. Lending to poor, by forming themselves as small groups (ranging from 5 to 20 members- the numbers differ with the microfinance company that promotes the product) without any collateral security, assuming the peer pressure to play a role in repayment of loans. The poor are bankable and “ credit is the right of the poor” is the slogan of Mohammad yunus, who was the brain behind blowing up the concept as a miracle cure to end poverty.

Coming to the book, in a very impressive style of writing, the book captures the exploitation of the poor in the name of microfinance and ground reality of impact they make on the life of the poor people. Sinclair says his claims will be neglected and brushed away, by the giants in the field for the fear that it will put an end to the image as “savior of poor”

As I worked in grassroots and closely watching the happenings in the microfinance world with respect to India, both in the MFIs and so called SHG movements floated by States government and some NGOs, I assure the readers that HUGH SINCLAIR, has written the truth. And if you presume that there is any exaggeration, I can again assure you that “that exaggeration can no way be near the exaggeration that microfinance is a miracle cure to poverty” It may be Yes, but not in the way the sector is growing at the moment.

I do not know personally about the organizations which Sinclair quotes. But I do know that things are not so different in microfinance sector in India and all the problems highlighted in the book do exists here. The floating up of SKS shares, farmers suicide, misuse of SHG concept by the politicians and selfish NGOs that I personally witnessed happening in India makes me stand by the book. The book says

· Loans are not used for productive purposes, but for consumption needs and repaying other debts
· Men borrow money through women, in most cases
· Case studies of isolated incidents like how a sewing machine and milk dispensing cows are a rarity but generalized as if it is the condition of every loan given
· Exorbitant interest rate

Hugh Sinclair also states how the microfinance funds like Grameen Foundation USA, Oxfam Novib, Calvert Foundation, BlueOrchard, Kiva etc.. turned blind to the fact that the MFI, LAPO In Nigeria to which they have given huge funds in the form of loans/donation, charges exorbitant interest rates above 100%, collects savings from the poor which is against the law, has high turnover of clients, high default rates and which provides false information to funding agencies. Hugh Sinclair also states how the proposal to Calvert foundation was nothing but a cut and paste of the proposal submitted to ASN-Oxfam and how Triple Jump the Organization which did the due diligence for both the organizations, covered the real facts and gave a rosy picture about LAPO to facilitate funding. Sinclair who worked for Triple Jump was forced to quit the job, since he questioned these anomalies but won a court case in his favor and got a lump sum settlement in the process.

The Microfinance funds, the MFIs and the so called experts in the field were very careful enough to protect the image of MFIs as savior of poor and neglect the facts. He also captures how multiple lending and bad appraisal led to downfall of MFIs in Nicaragua and Andrapradesh in India. He also analysis how Compartamos and SKS floated shares, which only benefited the workers in the respective organizations and also the CEO of Accion, who earned a substantial income because of her decision to invest in Compartamos.

Sinclair also notes the double standard of Mohammed Yunus of Grammeen Foundation,who speaks against MFIs which act as loan sharks but in reality continue to have relationship with them. Sinclair also quotes how the same photo of a women beneficiary that appeared in the website of three different NGOs including Kiva. Kiva the P2P model clearly exploits the emotions of the donors in best of interest of its growth. The free of cost funds received by Kiva from donors, when ultimately reaches the poor comes with an exorbitant interest rate tag.

However Sinclair has given a suggestion – a cooperative model in microfinance, can be a solution to cut down the poaching attitude of MFIs. I have a different opinion against this. I know how such cooperative or member owned SHG Federations/Primary agricultural cooperative credit societies in India have failed. The failure of agricultural cooperative credit societies in India, despite many reforms due to the corrupt political set up and foolish policies, are enough to justify that at least that model is not possible in India to my knowledge. To quote another example SKS has come with the idea of Mutual benefit trusts formed by the members and here too the decisions are taken by the founder CEO of SKS.

The Founders syndrome discussed in the book, how self-regulation is practically difficult in microfinance (Sinclair quotes M.S.Sriram who says that “self-regulation” in microfinance is nothing but an oxymoron like "business ethics" in business.)

I never had so much experience like Sinclair and yet what I see in India with respect to microfinance is no different from what Sinclair experienced. Microfinance is just another form of business. Worse this business uses poor as its capital.

THE ENDOSULFAN CONTROVERSY

2012-09-22T04:01:00.001-07:00

THE ENDOSULFAN CONTROVERSY

A lot of hype was there in the media about banning Endosulfan. A seed of suspicion got planted in my mind and started to sprout when more and more attention is given towards a single pesticide. The media which is creating such a great scene, I thought either were not aware of the ground realities or lobbied by some influential forces. My suspicion proved to be right when I went through internet and other media news. A deliberate plan is done to ban Endosulfan with vested interest by MNC pesticide companies.

PESTICIDE USE SCENARIO IN INDIA

When I was working in a fertilizer concern, field visits to remote villages and the dealer shops is a routine, as part of my job. During such visits I will be surprised by the range of pesticides and fungicides in the market, packed in colorful tins and bottles from 100 ml to even 10 litre packs. There were also combination products combining two or more chemical pesticides ( like Paracetamol being combined with Nimusulide/Caffiene) etc for therapeutic use). And every year new chemical pesticides (mostly a variant of the already existing one) and new combination pesticides will flood the market. The speed with which they come into market and the marketing strategy employed by MNCs used to astonish me. Whether the field trials of such pesticides were done with at most care, whether they are environmentally safe, human friendly and even their so called efficacy on pests is tested is a million dollar question. Scientists in agricultural universities have very little knowledge about the pesticides which is actually used in field, by the Indian Farmers as the syllabus is outdated and they get satisfied with the theoretical knowledge they have. Many of the research done also is mostly on the off-beaten track. Toxicology studies also hence were limited to few pesticides.

There were many companies, reputed Indian Companies, Multinational companies like Syngenta, Bayer etc and small manufacturers who were manufacturing and marketing pesticides in India. If you take the Pesticide Monocrotophos, it alone is manufactured by more than 300 companies in different brand names the popular among them being Nuvacron and Monocil. The cost and quality differs with companies, MNC usually charging higher for their product while the product by a local manufacturer costs cheap. The same is the case with Endosulfan. These two Monocrotophos and Endosulfan ( brand names –Endocel, Thiosulfan etc) is the most commonly used pesticides and will be there even in the rack of a very small dealer shop in a very remote village. While Monocrotophos belong to Organophosporus group of pesticides and is Systemic in nature (will be absorbed into the system of plants and insects) and Endosulfan is a Organochlorine Pesticide which is a Contact Pesticide (cause death of the insect which comes in contact with it). Endosulfan is widely used for spraying in vegetable crops like Brinjal, Chillies, Bhendi tomato, etc and also to control pests in horticultural tree crops especially Mango and Cashew. In Tamilnadu, it is widely used to control Tea Mosquito bug menace in Mango and Cashew, apart from its widespread usuage to vegetables (and this is the scenario with respect to other states in India). Typically it is sprayed once or twice to crops especially when mango and cashew starts blooming. Both Mango and Cashew plants belong to family Anacardaecia. Endosulfan is very effective in controlling the pest and increase yield by preventing flower and bud drop in Mango and Cashew. The vegetables which are consumed daily by Indian people gets alteast a spray of Endosulfan. If the pest damage is severe, the farmers go for still toxic pesticide and a for a mixture of pesticides and fungicides.

My suspicion was based only on this ground. Endosulfan is practically used by every farmer. Also there are many chemicals which are very toxic than Endosulfan. Why a single pesticide alone has become a target? If usage of pesticide and its toxicity is such a big concern, why there is no talk about other pesticides which are more toxic than Endosulfan and which have more bio-durable and bio-accumulating properties than

endosulfan?

THE STOCKHOLM CONVENTION AND BAN ON ENDOSULFAN

In the Stockholm Convention held in Geneva, recently on 29^th April,2011, Endosulfan is defined as Persistent organic Pollutant: it is persistant in the environment, bioaccumulative, demonstrates long range environmental transport and causes adverse health to human and environment. Thus Endosulfan is listed as a POP in the convention, as Long-range Transboundary Air pollutant (LRTAP) and is recognized as a Persistent Toxic substance by the United Nations Environment Program (UNEP)

Endosulfan is also called as Yesterday’s pesticide. First registered for use in 1954, endosulfan is a broad spectrum organochlorine insecticide. Following international recognition of their long term negative impacts on the global environment, organochlorines, including DDT, chlordane and HCH, have been largely eliminated from use in global agriculture. Endosulfan remains the major exception and is still widely applied to crops – particularly in the developing world.

Reports and studies of European union says that Endosulfan is found extensively in global water resources and as a contaminant in human breast milk ( samples from women in Egypt, Madagascar, South Africa, India, Indonesia, Pakisthan and in Umbilical cord blood samples.

According to the US EPA, “Monitoring data and incident reports confirm that endosulfan is moving through aquatic and terrestrial food chains and that its use has resulted in adverse effects on the environment adjacent to and distant from its registered use sites”.

The European union which supports endosulfan ban states that acute endosulfan poisoning can cause convulsions, psychiatric disturbances, epilepsy, paralysis, brain oedema, impaired memory and death. Long term exposure is linked to immunosuppression, neurological disorders, congenital birth defects, chromosomal abnormalities, mental retardation, impaired learning and memory loss.

Based on above grounds and Stating various other reasons, the Conference of Parties in the Stockholm Convention (173 countires) approved the recommendation for elimination of use and production of Endosulfan and its isomers worldwide, subject to certain exemptions. However this decision will not be binding to India unless specifically approved by our Country

Exemptions will be available for application of endosulfan against 44 pests in 22 crops — cotton, jute, coffee, tea, tobacco, cowpeas, beans, tomato, okra, eggplant, onion, potato, chillies, apple, mango, gram, arhar, maize, paddy/rice, wheat, groundnuts and mustard. The pests include aphids in most of the exempted crops, bollworms, jassids, whiteflies, thrips and leafroller in cotton, Bihar hairy caterpillar and yellow mites in jute and berry borer and stem borer in coffee. For tea, application of endosulfan is allowed for a host of pests including caterpillars and tea mosquitoes. Endosulfan will be allowed to be used against hopper and fruit fillies in mango and several pests in tomato. In rice, use will be permitted against white jassids, stem borer, gall midge and rice hispa and in wheat against termites and pink borer, besides aphids.

In the Convention Developing Countries were asked to look for alternatives for Endosulfan and financial assistance in this regard is assured to them. This exemption will be available for five years and extendable to another five years.

ENDOSULFAN CONTROVERSY IN KERALA

This shows that the move to ban Endosulfan did not originate in India. However the issue was brought to highlight and caught the eyes of media by an article published by the Environmental Magazine Down to Earth (28.02.2011 issue) due to the efforts of the NGO called Center for Science and Environment. It reported that the aerial spraying of Endosulfan in the Cashew plantations owned by Planatation Corporation of Kerala (PCK) in the Kasorgode District of Kerala (spread over 3550 ha in three different plantations) has resulted in severe health hazards to people living in villages near the Plantations . The health hazards ranged from cerebral palsy, epilepsy, mental retardation, psychic problems, alterations in reproductive organs, disability due to disfigurement of arms and limbs, cancer, hormone problems and infertility problems. The CSE also reported that its research findings showed high level of Endosulfan in natural resources and in bodies of affected human beings.

The CSE investigators reported a level of Endosulfan varying between 109 and 196 ppm in the blood of all subjects with varying degree of illnesses. This level is very much higher than the Endosulfan level found in fatal Endosylfan Poisioning cases. Also the sophisticated Gas chromotorgraphy method used by CSE can give only the quantitative estimation and cannot identify an unknown substance which has to be confirmed by standard tests. Hence the levels found in CSE studies are whether that of Endosulfan remains as a fact to be proved.

A alternative study performed by Fredrick Institute of Plant Protection and Toxicology appointed by the government shows opposite results. The study reported Endosulfan residues in the range of 0.001 to 0.012 ppm in Soil samples and 0,04 to 2.863 ppm in Cashew leaves. This FIPPAT study also did not perform confirmatory test for the compound.

The National Human Rights commission intervened in this issue as it became a big problem and asked many institutes including the Indian Council of Medical Research, which assigned the task to its subsidiary wing National Institute of Occupational Health (NIOH)

The NIOH study (conducted through samples drawn during the period Sept to Oct,2007) revealed that there was 0.0280 to 0.0677 ppb levels of total endosulfan ( alpha,beta isomers and endosulfan sulphate put together) which was much lesser than the maximum permissible level (74 ppb) stipulated by US Environmental Protection agency (EPA). In soil samples the total endosulfan level was 0.988 ppb higher than the reference sample. In drinking water the level was 0.0004 to 0.03 in different samples from Padre village. Thse levels too were not higher than maximum permissible level.
However the report indicated high levels of Endosulfan in the bodies of affected victims.

The study by NIOH also showed that the serum Endosulfan levels in the blood samples from study area was much higher than the reference areas and statistically proven to be highly significant. The reason for this can be attributed to bioaccumulation due to continuous exposure says the report.

NIOH study also revealed that Neuro behavioral problems, Congenital problems, learning disability problem and IQ problem in children, aggressive nature of children and other health problems do exists at higher level in the villages under study compared to standard.
.

Based on this study NIOH has arrived at some conclusion and recommendations which were given below

Conclusions

There is significantly higher prevalence of neurobehavioural disorders, congenital malformations in female subjects and abnormalities related to male reproductive system in the study group (Padre village, Enmakaje Panchayat) as compared to the referencegroup (Miyapavadu village of Meenja Panchayat).

Regarding the aetiological factors, responsible for these health problems, various factors were compared and it was found that the two groups differed mainly with respect to aerial spray of endosulfan. Therefore the most probable cause fond the health problems in the study area could be relatively high and continued exposures to endosulfan through various environmental media such as food, water, soil and air.

The physiography of Padre village has been a major factor responsible for continued exposure of the population.

There is a close similarity between the spectrum of health effects observed in the study population and those described in animal experiments. This supports the hypothesis of endosulfan as a causative factor fond the endpoints observed in the study. It need to be stressed that the animal experiments were carried out with much higher dosages and the exposure was mostly acute or subacute. Animal toxicity studies are carried out to identify the target organs of toxicity and possible spectrum of effects. The effects of any chemical are determined by the dose, duration and the time of exposure. It has been demonstrated that much lower doses of toxicants may result in adverse health effects manifesting as functional or organic disorders in later life if the exposure takes place during the early developmental phase.

The cashew plantations of PCK Ltd. In Kasaragod District are all located in the undulating hilly areas .The plantations are spread in isolated patches and are intertwined with habitations. The topography of the area precludes the possibility of aerial spraying observing all the protocols.

There are a large number of wells inside and just outside the plantations area. Several streams originate there. The water from the plantations (situated on the hills) can run off into the valleys inhabited by local people. The rivulets Panathur and Karicheri, which are fed by streams originating from or passing through the area, are tributaries of Chandragiri river, which supplies drinking water to Kasaragod town and several Panchayaths. The surangams, from which the local people draw water, are cut deep into the hills forming the plantations. They are prone to contamination by chemicals applied in the estates. Therefore, the hydrology and morphology of the area are unsuited for aerial spraying.

The human settlement pattern of the area also makes the plantation area unsuitable for aerial spraying. The adjoining areas are thickly populated. There are large numbers of houses inside the plantations. There are pockets of human settlement surrounded on 3 sides by the plantations. There are large number of houses and wells inside and just outside the plantations. The local people allow their cattle to freely graze in the plantation area. There are several schools inside and just outside the plantation area.Even the Pesticide Manufacturers and Formulators Association has agreed to the view that the area is not ideal for aerial spraying of pesticides.

The PCK has not been following the rules prescribed for aerial spraying. This has been reported by the District Collector, all the functionaries of the Panchayaths who deposed before the Committee, the experts and the great majority of generalpublic. There was no effective supervision of spraying and no monitoring of theprecautionary measures and the after-effects.

The same pesticide endosulfan was used continuously from 1981 onwards; in spite of the recommendations of Research organizations rotate the chemicals. The reason given by the PCK is that endosulfan is the most economic pesticide available in the market. Even the possibility of the bugs acquiring immunity to endosulfan due to long exposure has not been considered by the PCK.

As in the cases of most other pesticides, endosulfan can cause acute toxicity in animals and human beings due to over exposure. That is why strict protocol is prescribed for its use. Though chronic toxicity due to long term exposure has not been convincingly established, it cannot be ruled out.

There are reports of health problems in the three Panchayath adjacent to the plantations. There is no direct evidence to attribute these health problems directly to endosulfan pollution, but there is no evidence to completely deny it. Other usual causes like pollution from automobiles and industries are absent here. The only activity that is not normal is the aerial spraying of endosulfan. The pesticide is applied without observing the safety rules. The same chemical is used for 2 decades. Hence at this point of time, there is no evidence to implicate or exonerate endosulfan as the causative factor of the health problems. But, the proof of absence cannot be taken as the absence of proof. In all environmental pollution problems, the onus of responsibility to prove or disprove the causeeffect relationship should be that of the polluter and not of the general public who are the victims of pollution. Since cashew is an important export item earning revenue to the State and a large number of workers are involved in it, publicity to the pollution from endosulfan spray can prove detrimental to the industry.

Recommendations

1. Ban aerial spraying of pesticides in all the cashew plantations of PCK Ltd. In Kasaragod District.

2. Use of endosulfan in the PCK plantations of Kasaragod District should be frozen for 5 years.

3. In the cashew plantations in the Peria Division (which includes Enmakaje Panchayath), a total pesticide holiday should be observed for 5 years. This plantations should be left to the nature during these 5 years. Detailed studie on tea-mosquito bug menace and its relation to the crop productivity should be made during this period.

4. In the other plantations of PCK in Kasaragod district, need based ground spraying, (manual or power-operated) of pesticides other than endosulfan may be resorted to, in consultation with research organizations.

5. The pesticide management and plant protection of PCK should be scientifically organized.

6. Research efforts to evolve integrated pest management (IPM) should be augmented.

7. Breeding programme to develop cashew strains resistant to tea-mosquito bug should be undertaken.

8. Since the cause of the human health problem could not be deduce conclusively, a detailed investigation involving scientists from all relate fields should be conducted to identify the risk factors for the high morbidity the Padre village and other affected areas. A detailed health survey should be conducted in the Padre village and other areas from which cases of abno health problems are reported. The health survey should cover the plantation workers also.

9. Since most of the people who complain about health problems are from poorer sections of the community, the Government should make arrangemen to provide special medical care to these persons.

10. The Government should take all steps to implement these recommendatio and dispel the fears regarding pesticide application.

11. The right to information of the use of pesticides should be respected. The Gram Panchayaths should be given all details, when requested. The apprehensions of the local people regarding the alleged pesticide problem should be cleared by awareness programmes conducted through PCK, Agricultural Department and Research Institutions.

12 In every division of the PCK, a committee consisting of the following members should be constituted for monitoring the proper application of pesticide.

1. President/presidents of the concerned Gram Panchayath/Panchayaths

2. Agricultural Assistant

3. A representative of the Health Department

4. The Regional Officer of PCK

5. A representative of the workers of the concerned division of the PCK.

MY PERSONAL INFERENCE

All the findings point to one basic fact. The aerial spraying of endosuplhan without taking precautionary measures is the root cause of the problem and not the chemical endosulfan as such. Even so the report accepts that the direct relation between the existing health problems and Endosulfan is not established and further research is needed in this aspect.

VIEWS BY PERSONS/INSTITUTES AGAINST ENDOSULFAN BAN

The study by CSE has exaggerated the results since there is much differance between CSE study results and study by FIPPAT and NIOH. Even NIOH study results is disputed on following grounds

Limit of quantification is not determined.

Values fall much below even the detection limit.

Linearity and range there of i.e., calibration curve is not established.

No data related to recovery of analyte.

No direct confirmation of results of analysis.

Replicate sample determination and precision not given.

Very high standard deviation implies that data is highly skewed and most of the values fall below detection limit

The Pesticide Manufactures and Formulators association of India has come up strongly against these reports stating that this is the ploy of Europeon union Indian manufacturers who hold 70 % market share( 12 million liters to a value of Rs4500 crores) of the total Endosulfan market in the world, which incidentally the third highest pesticide used all over the world. India also has rejected listing of Endosulfan as a POP due to lapse in proceedings, gaps in scientific data and lack of transparency which have been observed, reported and protested by India and other member countries. European Union, where Endosulfan was invented, manufactured and used for over 55 years has proposed the listing of Endosulfan as a POP to serve European trade interest. If generics are banned through regulatory mechanisms it becomes easier for patented molecules to expand their market share.

The myths and facts about Endosulfan

Myth.1: Endosulfan is a highly hazardous pesticide

Truth: Endosulfan is listed under class II ( Moderatly hazardous pesticide) by the World Health Organization and their bottle comes with yellow label. There are other highly hazardous pesticides that comes with red label to the Indian market and they are in continuous use in the country. No word is raised against them.

Myth.2 Endosulfan is a typical Organo chlorine Pesticide

Truth: It is not a typical organo chlorine pesticide unlike DDT and BHC. Even the gamma isomer of BHC is available in the market. Endosulfan is the Sulfurous ester of a Chlorinated Cyclic diol

Myth.3 Exposure to Endosulfan caused birth defects

Truth: Various reports on its genotoxic activity, mutagenecity and Clastogenecity has so far not shown any conclusive evidence of it.

Myth.4 Endosulfan Bioaccumulates in human bodies.

Truth: Studies have shown that endosulfan had relatively lesser affinity towards lipids. Their bioaccumulation and biomagnifications is much lesser than other Organo chlorine pesticides and Class I pesticides (THE EFSA Journal 2005, 23,1-31

Myth.5 Endosulfan causes Cancer

Truth: Endosulfan is not found to be carcinogenic through various research studies (IPCS,1998 a).

Myth.6 Endosulfan persists for long in environment

Truth: Studies have shown that degradation of endosulfan is rather faster in tropical and subtropical climates. Dissipation of endofulphan occurs in soil to a extent of 92 to 97 % within four weeks of application ( Pesticide science 1997, 5021-27)

Besides this endosulfan is found to be good to honey bees causing them very less or low damage.

So where lies the truth? Do not believe what you see and hear. Even researches today are done with results in mind.

If endosufan is usage is so widespread in India, why the problem occurs only in India. When you look at the raw data of fertilizer sales, the union territory of Pondicherry will show high consumption of fertilizers/acre of land. But the truth is, 70 % of this is used in agricultural lands of Tamilnadu, adjacent to Pondicherry. The tax difference between the states makes fertilizer purchase from Pondicherry cheaper.Statistics may fool you. Lies, dammed lies and statistics goes a proverb.

On 25^th April, 2011, India floated a draft paper demanding that the recommendation of a POP review committee, to declare endosulfan a pollutant, be set aside. It said the move to ban the pesticide was not based on facts and scientific criteria. It also pointed out that chemicals suggested as alternatives to endosulfan showed POP characteristics, even exceeding that of the controversial pesticide. It argued that endosulfan's risk profile has not been prepared, while instead of arriving at a consensus, as is the norm, the review committee was attempting to take decision by majority votes. Japan,China, South Korea and Omen also stood by India with respect to their view on Endosulfan ban (BUSINESS LINE, APRIL 26). But China withdrew the support before attending the conference and went in support of the European union

But by 29^th April, 2011, suddenly India agrees to compromise on global ban on endofulfan, the support however is with respect to working our suitable exemptions and alternatives. In order to gain Indias agreement exemtion was agreed for 14 more crops (totally 22 crops) for a period of five years, during which financial assistance is also assured during the Stockholm conference. The pressure is created on the Indian government both from outside and inside, so that the European Union can achieve what they intend to achieve. India would concede, otherwise it would be the only country opposing the ban according to Savvy Soumya Misra, Asst. Coordninator of food safety and toxins, Center for Science and Environment, New Delhi, which has lauched the campaign against Endosulfan in India. India was pressurized into this agreement.

What will happen if Endosulfan is banned? The farmers are not going to stop pesticide spraying to vegetables, mango or cashew. Endosulfan will be replaced conveniently and easily by pesticides manufactured by MNC companies not only in India, but also worldwide. The present alternatives to endosulfan where priced 5 to 10 times higher than endosulfan. While Endosulfan costs just around Rs300/litre, the alternatives costs Rs2000 to Rs13000/litre. The market share will be captured easily by them without much effort to convince farmers.This will go as a cycle. Some other pesticide will become a target in a span of few years, again such a hype will be created and the hidden agenda of MNC companies will be achieved.

Plastic Menace

2012-09-22T03:34:00.000-07:00

Plastic Menace

Throwing a plastic bag into the garbage “ I know that I am throwing a plastic bag into the garbage.” That awareness alone helps us protect the Earth, make peace, and take care of life in the present moment and in the future. If we are aware, naturally we will try to use fewer plastic bags. This is an act of peace, a basic kind of peace action.

-Thich Nhat Hanh in Peace Is Every Step

Can you imagine your life without plastics? They are found everywhere and we use it in many forms. Right from the computers we use, chairs, office racks, and containers to polyethylene bags all are made of plastic. The fact that they are very much less biodegradable in nature and a major source of pollution to the environment always remains hidden in its flexibility to put to different uses and its cheaper price. But we really do not know to differentiate “use” from “misuse”. Present trend shows we are misusing plastics- by using them for purposes, where there is always a better option than plastics. How many of us have the practice of carrying a cloth bag or jute shopper bag, which can be easily folded and kept in our bikes/cars and use it instead of depending on the shop keeper to provide a plastic bag for the materials we purchase? In marriages and hotels in India, serving food in Banana leaf is a symbol of respect. Now plastic leaves in the shape of banana leaves gets used in social functions. The very act spoils the sanctity of the purpose for which banana leaf is used Whatever act we do we should remain cautious about the impact we make on the environment, other human beings and the society. In this fast world, we put our need and greed first and this is the mother of all problems the world is facing.

Coming to the facts around 500 billion plastic bags (500,000,000,000) are used worldwide every year and sadly India’s plastic consumption is one of the highest in the world. Plastics are very resistant to degradation and they will take 300 years to photo degrade. The single use plastic bags that are used by street vendors to mega shopping malls are the biggest menace. Whether you buy fruits, vegetables, grocery, foods, clothes and anything purchased in kgs and litres get packed in plastic. The pepsi and coke containers add more to the problem. On your travel from office to home or vice versa observe, for a day the usage of these plastic bags and bottles and you will find how they have encroached our life. The pleasing and delightful colors in which these bags and bottles are made disguise the cruel face behind them.

In India, plastics consumption grew exponentially in the 1990s. During the last decade, the total consumption of plastics grew twice as fast (12% p.a.) as the gross domestic product growth rate based on purchasing power parities (6% p.a.). The current growth rate in Indian polymer consumption (16% p.a.) is clearly higher than that in China (10% p.a.) and many other key Asian countries. The average Indian consumption of virgin plastics per capita reached 3.2 kg in 2000/2001 (5 kg if recycled material is included) from a mere 0.8 kg in 1990/1991. However, this is only one-fourth of the consumption in China (12 kg/capita, 1998) and one sixth of the world average (18 kg/capita). This consumption led to more than 5400 tonnes of plastics waste being generated per day in 2000/2001 (totalling 2 million tonnes per annum).( Source: Wikipedia)

The increasing quantities of plastics waste and their effective and safe disposal has become a matter of public concern. The increasingly visible consequences of indiscriminate littering of plastic wastes (in particular plastic packaging wastes and discarded bags) has stimulated public outcry and shaped policy. Littering also results in secondary problems such as drains becoming clogged and animal health problems (both domesticated and wild).

There are different grades and types of plastics though externally they may appear similar. The following are the categories of plastics

Grade-1 Plastics: LDPETE- Polyethylene terephthalate ethylene used or soft drinks, detergents, cleaner and peanut butter containers.
Grade-2 Plastics: HDLDPE- High density polyethylene used in opaque plastic milk containers, detergents, shampoo bottles and some plastic bags
Grade-3 Plastics: PVC-V- Polyvinyl chloride used for making tubular pipes, some squeeze bottles,
Grade-4 Plastics: LDLDPE- Low density polyethylene commonly used to make grocery bags, most plastic wraps and some bottles
Grade-5 Plastics: PP -Polypropylene- Used to make baby bottles, straws, yoghurt and other clouded plastic containers
Grade-6 Plastics: PS –Polystyrene used in Styrofoam food trays, disposable cups,bowls, carry out containers and opaque cutlery
Grade-7 Plastics: Others: Usually Polycarbonates used in feeding bottles, 5 gallon containers, sport water bottles etc. The new bio-based plastics also were numbered 7

Many of the plastic containers have this number imprinted in them ranging from 1- 7 from which we can identify the type of plastic used. According to The Green Guide, a website and magazine focusing on greener living, the safest plastics for repeated use in storing food are categories 2, 4 and 5. Most of the Tupperware containers stick to this standard

The dangers of using other grades of plastics

#1 PET bottles: Look out the soft drink bottles and water bottles we commonly use. They are not intended for or not suitable for reuse. Yes they were made of #1Plastic most often, which are prone to release phthalates on repeated use which are carcinogenic in nature. How many o us continue to reuse such bottles, without being aware of the potential danger. In India, the growth of MNC soft drinks has replaced not only the local drinks, but also has placed two or three of such bottles in invariably every households. It is a common sight in the villages now that, farm laborers carry drinking water in this bottles.From the poor to rich, they use these bottles repeatedly

#3 PVC plastics: These are used to make water pipelines in households and they have replaced steel pipes in houses constructed because of their cheaper price in India. PVC is found in a wide range of consumer products, such as packaging, credit cards, bottles and imitation leather, as well as in construction material, such as window frames, cables, pipes, window blinds, wallpaper and flooring. In addition to that it is used in car interiors and in hospitals, as medical disposables. PVC does not only leak harmful additives during use (recent testing has showed that children can ingest hazardous chemicals from PVC toys etc) – already the production of PVC creates and releases dioxin and PVC products continue to leak harmful additives during disposal, when they’re burned or buried. Burning creates and releases more dioxins and compounds containing chlorine, which further contaminates the environment. Furthermore phthalates are present in this category as well. They are added to PVC to make it soft and flexible. PVC is difficult to recycle, resulting in much of it ending up in landfills – which we all know is the least favorable outcome from an environmental point of view. Some Governments and industry are taking action to eliminate PVC. Danish and Swedish governments are restricting PVC use, hundreds of communities worldwide are eliminating PVC in buildings and many companies such as Nike, IKEA and The Body Shop have committed to eliminating PVC from their products. Many deli items are packed in PVC plastic containers, so swapping foods out of such wraps one the groceries are home is advisable.

#6 plastics (polystyrene, also known as styrofoam). Containers made of polystyrene can also be dangerous, as its base component, styrene, has been associated with skin, eye and respiratory irritation, depression, fatigue, compromised kidney function, and central nervous system damage. Take-out restaurant orders often come in polystyrene containers, which also should be emptied into safer containers once you get them home.

So what we can do?

Avoid plastic grocery bags. Always carry a jute shopper bag or a small cotton bag with you
If you buy soft drinks in PET bottles, don’t take care of them as your “Pet”. Break and dispose it quickly in a proper manner
Don’t litter and commit educating others about problems of plastic usuage
Keep your place, residence, village or at least few streets free of plastics
Avoid using disposable diapers- a practice borrowed from westerners
Do not drink coffee/tea/milk in disposable plastic cups
And last but not the least, be aware of what you are doing against the nature in every activity and this awareness will make you a responsible citizen
Educate your children about plastics and their problems. Make the future generation use less plastic than us

Let us not worry about what government does. Let us do our part. Of course, we cannot avoid plastic, but we can reduce their usage considerably in day to day life

Microfinance- The unorganized way v/s Organized way

2012-09-20T08:07:00.000-07:00

Microfinance- The Unorganized way v/s Organized way

I presently live in Madurai District, Tamilnadu, India, which is notorious for usurious money lending. Financial inclusion and Inclusive finance are the jargons used by the Banking sector in India which attempts to make every citizen of India have access to formal institutionalized credit. The fact that even the so called literates in India have difficulty in availing loan is undeniable, even in present circumstances. I personally ran pillar to post to avail a housing loan, though the formalities are made much simpler now.

The following are the credit options available to a Indian citizen in the present scenario

· Nationalized banks and Private sector banks

· Cooperatives- Primary agricultural cooperative societies etc.

· Non-Banking Financial Company’s (which has grown by and large in recent years)

· Microfinance Institutions MFIs/SHGs

· Local Pawn shops

· Money lenders

A larger section of the people continues to use local money lenders as an emergency option till date and this form of lending cannot be wiped out from our social system.( Being a member of a SHG or an MFI gives additional confidence to the borrower that he/she can repay the amount to the money lender through the money borrowed from a SHG/MFI) Like poverty, finance to poor is a vicious circle from which they struggle a lot to escape. There are many loan products offered by local money lenders with names that denote the seriousness of the scheme/product.

Given below are few of those schemes

Microfinance products of the unorganized sector- Money lenders

Daily Interest rate

This is availed by street vendors mostly, who begin their business by morning and end it by evening for e.g., by flower, vegetable, fruit vendors. If Rs1000/ is borrowed from the money lender, he will take Rs100/ as advance interest and give only Rs900/ as loan. By evening the borrower has to settle the entire Rs1000/. Thus by lending Rs1000/, the lender gets Rs200 as interest in a day ( 240% annually)

Rocket interest

If one borrows Rs1000/, he has to repay Rs100 as interest daily for 10 days and after the end of 10^th day, he has to repay the principle. If he fails to repay, interest will be hiked and will fly high like a rocket

Weekly Interest

This is the most common type in practice, where there will be collection agents for door to door collection. A amount ranging from Rs2000 to Rs10000/ will be given as a loan, of which 15 % of the amount will deducted and given (Rs300-1500). Every week the borrower has to repay Rs200 to 1000 for 10 weeks without fail

Computer Interest (what a name)

One should repay the loan within a week. If one borrows Rs10000, he will get only Rs8000 in his hand and he has to repay Rs10000/ within a week.

Meter interest

Here the amount borrowed will be higher and most of the middle class fell into this trap. If Rs100000/ is borrowed, only Rs85000/ will be given as loan. The borrower has to repay Rs100000/ in 10 weeks @ Rs10000/week. Failing to repay may cost your entire life.

Run Interest

The amount borrowed should be returned within 4 hours. If one borrows Rs10000/ he will get only Rs9500 and he has to repay the entire Rs10000/ four hours after borrowing. If time is delayed Rs200/hour will be charges as additional interest. The interest meter “runs” faster than a taxi meter.

Hourly interest

Interest will be charged every hour and the amount should be repaid within 12 hours. Interest rate? Not less than 240 %

The money lenders also lend amount in crores- to business persons, film producers. The common product is mentioned below

Monthly interest

Huge amounts in crores is borrowed by pledging assets as security and after singing few “blank bonds” in which anything can be written, if the amount is not repaid as per the agreement. Usually only interest will be collected every month and it will be accumulating cumulatively beyond a certain period. A majority will lose their asset which will be 10 or more times worth than the amount borrowed. The film producers, who fall for the fame and glamour of the tinsel world, are the prey to these kind of financiers.

Every day, credit is availed in large numbers from these informal sources. In Tamilnadu and many other states in India, if we go to a market place where daily vendors are busy selling their products and observe, we can see these unorganized credit being in operation in full swing.

Though a usury act was passed in 2003 in Tamilnadu, to control exorbitant interest charged by these money lenders and also their ruthless behavior with the loan defaulters ( nobody will dare to default them… usually they will not be in a position to repay and even commit suicide with their family)

Coming to the organized microfinance, though it boasts of saving the poor, the interest rates are much higher than the interest rates offered by nationalized banks. Let us compare both the organized and unorganized microfinance practices

Unorganized Microfinance ( Money lenders)	Organized Microfinance (MFIs)
Interest rate- 36 % to 240 %	Interest rate- 36 % to 190 % (LAPO for example)
Individual lending	Group lending
Daily/Weekly/Monthly collection	Weekly/Monthly collection
Flat rate of interest usually	Flat rate of interest usually
Face of the lender is well known to locals	Not Known to locals
Money remains in the local economy	Money siphoned out to business men sitting in a different state/country
Unethical recovery practices	Unethical recovery practices
Prevailing laws without tooth to curb unethical practices	Prevailing laws without tooth to curb unethical practices
Do not say we help poor- Say openly that they do business	Boast that they help poor but have no much difference from money lenders

The high interest rate of unorganized microfinance can be substantiated by the fact that it is individual lending which has more risks and incurs more operational costs than group lending practice by microfinance institutions. Nevertheless both are pigs taking bath in the same ditch. Both smells like a hell.

At least money lenders operating in a village, have a obiligation to spend a portion of what they earn for the village, to maintain their pride and prestige. MFIs have no such obligations.

I have left SHGs for the moment deliberately, since they function in a different dimension where nationalized banks lend them directly and also there is support from Government. But they too are full of problems. In a country like India where corruption rules, what else we can expect. In my opinion SHGs can be used effectively for financing the poor, but not in the present way it happens. The present approach of SHGs are no different from MFIs. There is no exclusive government policy to control SHGs and SHG Federations, even after more than two decades of their functioning in India, which remains as a biggest challenge to their sustainability. In the absence of such laws, everyone is devising his own way to raise income, some in more unethical ways than MFIs in the name of Sustainability

Kiva launches its operations in India

2012-09-16T03:51:00.000-07:00

Kiva launches its operations in India

This group is called Omm Namah Sivaya-B (named after a Hindu God). All the group members are women from the village of Duajhar, a rural village of Odisha state in India. The featured member of this group is Tilottama, sitting second from the left and raising her hand in the photo. She is 35 years old, living with her husband and three daughters. She is a very active lady of BPL (below poverty line) category. For the last 10 years, she has been running a tent house (giving bowl, tent, cloth boundary wall, chairs, light, sound system etc. rented for social functions) with the help of her husband. She initially started the business with limited items like bowls, chairs, tarpaulin etc. As she owned a small house, she stored some items for the tent house in her house and some items in a rented house. At that time, she was earning a monthly income of Rs 4,000 per month. With her limited earnings, it was very difficult on her part to manage her household expenses. With the present loan, Tilottama has decided to purchase a sound system, some more chairs, bowls, drums, mats, pillows etc.to rent, taking into consideration the present demand. This will help her to generate extra income to meet her immediate requirements like providing a better education for her children in the nearby advanced school. She has a long-term vision to construct a go-down (warehouse) of her own to keep the tent house materials safely as at present she is keeping the materials in a rented go-down (warehouse). The other three members of the group are Kumudini, Laxmi and Bisaya who sell betel nuts, run a grocery shop and run a tiffin (light meal) restaurant

This well-crafted emotionally touching story is posted in its website by Kiva, the microfinance organization that operates from California to seek funds from persons with charitable mind to donate grants starting from $25 (Rs1250 ). Yes, Kiva has launched its operations in India through its field partner Mahasakthi Foundation. Kiva ( Kiva means Unity in Swahili language spoken by different ethnic groups in the Mozambique channel coastline from Kenya to Northen Mozambique ) was the brain child of Matt Flannery and Jessica Jackley, who floated the organization in 2005. The Mission statement says that “Kiva is a non-profit organization with a mission to alleviate poverty, leveraging the internet and a worldwide network of microfinance institutions. Matt Flannery and Jessica got the inspiration for launching into microfinance hearing the speech of Mohammad Yonus, the founder of Grammeen Bank, the person who showed this new way of lending to poor people. In 2006, notable entrepreneurs and businessmen joined Kiva's staff, including Premal Shah from PayPal and Reid Hoffman CEO and founder of Linkedin. Shortly after its first anniversary in October 2006, Kiva reached $1 million in facilitated loans and acquired its twentieth field partner. To the present day, Kiva has continued to grow and expand its field partners while acquiring support from the media and the public. As of March 31, 2012, Kiva has distributed $300,209,450 in loans from 744,558 lenders. A total of 390,791 loans have been funded through Kiva. The average loan size is $392.13. Kiva's current repayment rate for all its partners is 98.94%, as per its report.

Kiva no doubt has marched ahead and their noble idea (!) of peer to peer lending (P2P) and excellent marketing strategies led to its success. The concept is simple. Kiva posts the heartwarming story of the persons( women mostly) in need of money in its website and request donors to contribute money as loan from a minimum $ 25 , the money collected so is forwarded to field partners (MFIs), who in turn distribute the loan to the needy. The donor is assured where the money goes and for what purpose it is used, that’s what Kiva and Matt Flannery Claims.

How far the claim is true? Will the amount actually goes to the person and the activity a donor prefers to donate? What are the practical difficulties in it? Who is the gainer in the process- the donor, Kiva, its field partner or the poor? Or whether it is a mutually beneficial process? At the outset it seems mutually beneficial.

But my practical experience says that it cannot be so. When I looked for further information, I happened to go through many criticisms from the noted David Roodman to a donor who directly met the recipient of $ 25 who went on a expedition to trace the impact of the money he donated. My doubt got proved beyond point. There exist nothing sacred or so called much acclaimed transparency in what Kiva claims.David Roodman of Center for Global development says that, the our sensitivity to stories and faces distorts how we take decisions to donate. Kiva concept is not new either but the application of Save the Children concept (that originated in 1940s) to microfinance sector.

Roodman says succinctly that the loan would have been given to the borrower, even before the posting is made in Kiva’s website and the amount that is given by the donor will be used by Kiva or its field partner for other purposes, for example lending to new customers. Martin A Anderson, who has lend $ 25 to Henry Twinomugabe , made an expedition to Kihihi, where the MFI Pearl Microfinance, the field partner of Kivi through which Henry got the loan from Martin was located. His expedition stands on behalf of Roodman's judgement

Henry Twinomugabe was a member of a community based organization in Kanoni, 22 kms away from Kihihi, to whom Pearl Microfinance sanctioned a loan. As per the record that Martin verified, the loan was given by Pearl to this group by 17th Nov, 2009. However, the posting in Kiva’s website seeking loan was made later by 10th Dec, 2009 and receive full funding by 11th Dec,2009. Clearly Henry Twinomugabe received the loan before Martin gave the loan to him. Martin says at least Martin existed and that Kiva has transferred the amount to Pearl Microfinance, making justification to some extent.

India was projected to the westerners to be more bad in shape than it is really. Kivas launch in India, means that it will make stories around poor women in Odhisha and other states, to facilitate its collection of funds from persons with charitable mind. The Mahasakthi Foundation is never going to lend this money without interest or at least reasonable interest to its members. The interest rate will be high as in other MFIs to cover its operating costs, which is the major burden of MFIs.

I have experience of working in SHG federations and direct appraisal of loan request from members. From my experience, the control is in our hands only until the money leaves our hand. The real purpose for which it is used cannot be ascertained, until proper follow up and much more man hours are consumed. Ensuring the purpose utility of the loans consumes lot of our time, money and energy. MFIs hence will not bother about the purpose for which the money is used and they remain satisfied, if the loan returns to them safely. If at least 10 % of Kivas loan gets used for the purpose it states in the website, I will say that it is a miraculous achievement. And the donors have to believe the words of Kivi and they derive satisfaction by believing what Kiva says, even when their common sense where mind takes control over the heart says that “You are getting Fooled”. Nobody wants to feel that they get , fooled. Believing that they have helped someone increases their confidence, pride and status in the society. Kiva uses this human mentality successfully for its growth.

The SHG programs in India operate in even more pathetic state, though there are exceptions. I will be writing about them in due course. A lot of money get wasted. State governments borrow/take grants World bank , UNDP and other organizations and uses even its own funds for the SHG programs across the country. The way in which such programs are implemented without long term focus, implementation hurdles in the highly corrupt environment (corruption and selfishness takes a upper hand in any government intervention ) leads to wastage of not only money, but also purpose of the project. Private NGOs too operate with selfish motives. The SHG programs in Tamilnadu, Mahalir Thittam and Pudhu vazhvu gets implemented mechanically on a target based approach, without realizing that how much of money and effort gets wasted. The Confessions of a Microfinance Heretic book by Hugh Sinclair exposes the MFIs. SHG programs are no better than MFIs. Ultimately the losers, as usual are the poor. Perhaps this is the only workable model across the globe. Exploit many for growth of few utterly selfish personals who are after money, power, fame and glory.

Business Line : Industry & Economy / Agri-biz : Cereals Prices

2012-09-04T04:40:00.000-07:00

Business Line : Industry & Economy / Agri-biz : Cereals Prices

National Food Security Bill- A long way to go

2012-09-03T05:10:00.000-07:00

National Food Security Bill - A long way to go

The Back ground

The draft of the National Food Security Bill was tabled in the parliament recently as promised in the election manifesto of the congress which evoked a mixed response. The objective of the proposed law is hence "to provide for food and nutritional security...by ensuring access to adequate quantity of quality food at affordable prices, for people to live a life with dignity”. Food security thereby implies ensuring nutritious food to the population of the country, aimed at ensuring the health and thereby the wealth of all classes of people.

This all started in 1965, when India introduced universal Public Distribution System (PDS) with the aim of maintaining stability in the prices of essential commodities across regions, ensuring food entitlements to all sections at reasonable and affordable prices; and keeping a check on private trade, hoarding and black-marketing. In 1997, the PDS was converted into Targeted PDS (TPDS) through classification of its population into Above Poverty Line (APL) and Below Poverty Line (BPL) categories. Only those households classified as BPL were made eligible for subsidized purchase of commodities from ration shops

Presently where come the need arise for the proposed food security bill? What is the real intention for drafting such a bill? How the new system of PDS suggested will cater the need? What will be the cost of implementation? Whether this bill can ensure that subsidies for food are directed only to those who deserve? Whether wheat and rice the major staple foods, which has replaced the usage of more nutritive minor millets due to changing food habits can serve the purpose?

Well. As per the government, which drafted this bill the need was necessitated since the economic growth of the country did not improve the health condition of the people as widely believed. 22% of Indians are undernourished, 33% of women (age 15-49 yrs) have BMI less than normal, 78 and 47 % of the children (age 3 - 35 months) remain anemic and malnourished respectively. In fact, the reverse is true good health can bring good economic development is the principle underlying the policy.

Salient features of the bill

1. Legal entitlement to subsidized food grains: To be extended to at least 75% of the country’s population - 90% in Rural areas and 50% in urban areas. The priority households (46% in rural areas and 28% in urban areas) to have a monthly entitlement of 7 Kg per person at a subsidized price of Rs.1 per Kg for millets, Rs. 2 per Kg for wheat and Rs. 3 per Kg for rice. The general households (39% rural and 12% urban in phase 1 and 44% rural and22% urban in final phase) to have a monthly entitlement 4 Kg per person at a price not exceeding 50% of the current Minimum Support Price for millets, wheat and rice.

2. Entitlements to destitute, homeless, migrants and disaster affected persons: Appropriate scheme to be piloted, like community kitchens run by any agency identified by the government.

3. Diversifying the food basket: Inclusion of other nutritious cereals (such as bajra, jowar, ragi, and maize) as part of the food security basket finds a place in the bill.

4. Life cycle approach from pregnancy to old age: Access to adequate and appropriate food throughout the life cycle of a human being from pregnancy to old age so as to ensure a healthy body and mind.

5. Entitlements of Pregnant and Nursing Women- Take home rations or nutritious cooked food to pregnant women and six month thereafter through anganwadies and Rs1000/month as maternity benefits for a period of six months

6. No denial to any child below 14 years : Any child below the age of 14, including those that are out-of-school, may approach any feeding facility such as anganwadi centre, school mid-day meals, destitute feeding centres for midday meal

7. Procurement of Food Grains: Encourage State governments to undertake a decentralized planning process and to procure, store and distribute food grain at local levels from district to panchyat, with a view to minimize transportation costs and losses and provide state governments with the appropriate facilities and incentives

8. Power to delegate : Lies only with central government. Under the National Food Security Bill, the State governments do not have the right to identify the beneficiaries, extension of rights or making efforts at giving better security.. But can offer powers upon request to State government

9. Fair Price Shops : preference to community institutions such as Self-Help Groups and Cooperatives or public bodies such as Gram Panchayats or nongovernmental organizations

10.Ration Cards : Ration cards shall be issued in the name of an adult woman member of the family

Some reflections on the bill

The food security bill is drafted with differential subsidies; differential entitlement for priority and general groups and also focuses on individual entitlement rather than family entitlement to reach larger section of the people. This is to further streamline the existing system and ensure fair distribution, the objective of which cannot be questioned. However, categorizing people to priority and general groups is not an easy task which may lead to bias, chaos and confusion, without appropriate standards and system for such classification. The draft does not come with a specific strategy to address this problem. In a country where there is no uniformity in poverty estimation data and where the income fixed by the planning commission for classification of above and below poverty line is much criticized, arriving at the target ‘priority’ and ‘general’ groups will be a difficult task without clear guidelines and system for enumerating the priority, general and excluded groups.

Special entitlement to destitute, homeless, migrants and disaster affected people is a welcome move. Also special focus on pregnant women and children for preventing malnutrition, preference for community institutions like SHGs to open ration shops and ration card in the name of women head of the family were good initiatives. No denial of food to any child below 14, is likely to have a negative impact also on the present midday meals program concentrating on school going children. Practically, midday meal program was initiated to attract children towards education and if food is entitled to them even if they do not attend the school, it may lead to school drop outs in near future and hence this should be implemented with much caution.

Also there is an Increase in food subsidy through the National food security bill proposed as follows

Subsidy (in Crores)	First Phase	Final Phase
Total Subsidy	71837	79931
Current Subsidy	56700	56700
Additional Subsidy	15137	23,231

This will add to subsidy burden of the country. The inclusion of millets in the PDS, though a welcome move, cannot be implemented on large scale since minor millet production is low and can be done only based on the food habits of people in a locality. The powers of identifying the beneficiary entirely lie with the central government which may leads to exclusion, dichotomy and denial

Can the bill address the problem of malnutrition?

Many a schemes have been implemented in the country, for preventing malnutrition and yet the problem continues to prevail. The estimation that 47 % of our children are malnourished, necessitate complete scanning of all our schemes and the implementation strategies to find a appropriate remedial measure. Food security bill alone cannot solve this problem. An article (EPW, July, 2009) says that along with access to cheap grain, to create other entitlements that guarantee good nutrition is important. This requires not only nutritious food (including a balanced intake of calories, protein, fats and essential micronutrients) but also attention to childcare, clean water, hygiene, basic healthcare and so on. Moreover, even with a narrow focus on food alone, a Right to Food act (RTF Act) based on the bill proposed would have to link with a wide range of issues, including, for instance, access to land, water and forests, which play an important role in people’s livelihoods. Clearly, this goes beyond the sort of legislation that is being contemplated at the moment, and requires political will and vision of a kind that is sorely lacking.

Long way to go

Gone are the day of Madras and Bengal famines, though reports of starvation deaths on smaller scale mainly due to poverty is reported here and there (farmers in Tanjore belt, the granary of Tamil Nadu were forced to eat rat meat when river Cauvery failed to meet their irrigation requirement few years back). This food security act focuses to protect people against such starvation by giving special allotments. The paradox that hunger, starvation and malnourishment exist alongside the mounting piles of food grains to a tune of around 55 million tonnes in the government granaries may seem dramatic. The truth is rice and wheat can fill the stomach and cannot solve nutrition problems, millets, pulses and vegetables being more nutritive than these grains. Though there is provision for supply of millets through PDS, in the current bill, their production is much much low. As a long term vision, government can encourage production and consumption of millets, allocate more subsidies for it and can reduce the subsidies for rice and wheat. It is a common phenomena in the rural household now that rice supplied through PDS is fed to cows, since cost of cattle feed has escalated (cattle feed pellets cost Rs 950/bag of 70 kg). Moreover the PDS distribution channel has currently has many loop holes, resulting in smuggling which is the major leak in the system. The reforms in the PDS in Chattisgarh through Chattisgarh Public Distribution System (Control) Order, 2004 paving way for community organizations (SHGs, Panchyats and cooperatives) to run ration shops and transforming the distribution system can be a model for the country. The problem of diversion of food grains while they were being transported from government godowns to PDS outlets in private trucks was reduced substantially, by the decision to dispense with private players and directly deliver food grains to ration shops. To make this process transparent, the government trucks engaged in “doorstep delivery” of PDS food grains were painted yellow. Also it was made mandatory for food grains to reach ration shops by the seventh of every month. The entire process was computerized, the message of quantity of food grain transported to a particular ration shop was sent through mobile to key persons in the village, enabling them to verify and record the unloading process again through mobile technology. The means and demonstration lies within our country. The integration of various schemes to address the food security and nutrition problem under a common umbrella, including the reforms in agriculture only can solve the problem of hunger and malnutrition. Instead of subsidies more focus should be given on increasing the buying capacity of the poor. This would also enable to reduce the expenditure on subsidies in long run.

National Water Policy Draft - 2012 – A review

2012-09-03T03:25:00.000-07:00

National Water Policy Draft - 2012 – A review

The Need for a National Water Policy

An incident that happened in 1995 remains afresh in my mind even after all these years. I and my friend were shopping in a busy area in Coimbatore. We happened to see a posh car stopping nearby and two hands came out of its window, one hand washing the other with a 1 liter can of mineral water freshly purchased by the driver from a shop. Rich can afford for mineral water, to wash their hands and even for taking bath. What if poor were made to pay for the water they use? The draft National water policy which has gone into two revisions in May and then in July, after being tabled for first time in January due to much protest on treating water as an economic good and favoring privatization. Nevertheless the soul of the draft remains intact, except for few accommodations to satisfy those who voiced against favor towards private bodies. There is all likely- hood that water may become a rationed commodity in future. You have to pay for excess water, that you consume after meeting your basic domestic, sanitation and agriculture.

A National level legal framework to control water use and prevent interstate, intrastate and regional water conflicts is no doubt imperative. India with a population of above 1.3 billion (17% of the world population) has only 4 % of worlds renewable water resources. The geographical area of India is 329 Mha of which is 180.6 Mha is arable. A total area of 142 Mha is net sown area, of which 57 Mha is irrigated area. India has the largest irrigated area in the world. The total drainage area of India is divided into 24 basins of which 13 major basins have a drainage area more than 20,000 km2. As per present estimate, India receives on average annual precipitation of about 4000 Billion Cubic Meter (BCM), which is its basic water resource. Out of this, after considering the natural evaporation- transpiration, only about 1869 Billion Cubic Meter (BCM) is average annual natural flow through rivers and aquifers. Of this, only about 1123 BCM is utilizable through the present strategies, if large inter-basin transfers are not considered. Thus, the availability of water is limited but the demand of water is increasing rapidly due to growing population, rapid urbanization, rapid industrialization and economic development.

Dry rivers across the country and their pollution by solid waste, pollution by effluents, over exploitation of groundwater resources, inadequate sanitation, growing water conflicts, lack of holistic and inter-disciplinary approach in water management, improper decision making by public agencies, changing characteristics of catchment areas due land use and land cover changes, salinization and changing rainfall pattern due to climate change warrants such a regulation. Making the public aware about the water issues and use it judiciously is the need of the hour.

Table.1 Water Demands for Various sectors in 1998 and 2025 in India (Billion Cubic Meters)

Sector	1988	2025	2050
Irrigation	524	618	807
Domestic use	30	62	111
Industrial use	30	67	81
Inland Navigation	0	10	15
Power	9	33	70
Environment	0	10	20
Evaporation losses	36	50	76
Total	629	850	1180

Source: Report of the NCIWRDP (1999)

What the National Water Policy draft 2012 says?

Planning, development and management of water resources need to be governed by common integrated perspective considering local, regional, State and national context, and keeping in view the human, environmental, social and economic needs.
Water needs to be managed as a common pool community resource through a National level legal framework, under public trust doctrine to achieve food security, livelihood, and equitable and sustainable development for all. Existing water Acts may have to be modified accordingly.
Water is essential for sustenance of eco-system, and therefore, minimum ecological needs should be given due consideration.
River basins are to be considered as the basic unit of all hydrological planning. Inter-basin transfers of water to be considered on the basis of merits of each case after evaluating the environmental, economic and social impacts of such transfers.
Climate change adaptation strategies like increasing the water storage various means, better water use efficiency, proper demand management, incorporate coping strategies for possible climate changes during formulation of mega water projects and enhancing the capabilities of community to adopt climate resilient technological options is advocated.
Enhancing the water available for use through status assessment of water resources every five years, direct use of rainfall and avoidance of inadvertent evapo-transpiration , mapping of aquifers to know the quantum and quality of ground water, arresting exploitation of ground water and considering the river basins as basic hydrological units of all planning’s is advocated in the policy.
Integrated watershed development activities with MGNREGA to extent possible to reduce sedimentation yield and increase water productivity.
Water footprints, and water auditing should be developed to promote and incentivize efficient use of water.
Recycle and reuse of water, including return flows, should be the general norm and incentives for the same to encourage practice.
Water saving in irrigation use is of paramount importance and heavy underpricing of electricity which results in both wastage of water and electricity to be regulated
The draft also says that “For the pre-emptive and high priority uses of water for sustaining life and ecosystem for ensuring food security and supporting livelihood for the poor, the principle of differential pricing may have to be retained. Over and above these uses, water should increasingly be subjected to allocation and pricing on economic principles”
A Water Regulatory Authority (WRA) should be established in each State to fix and regulate the water tariff system and charges( on volumetric basis). Water Users Associations (WUAs) should be given statutory powers to collect and retain a portion of water charges, manage the volumetric quantum of water allotted to them and maintain the distribution system in their jurisdiction.
Conservation of river corridors, water bodies and infrastructure by preventing encroachment and diversification of water bodies and restoring them to the extent feasible avoiding urban settlements in upstream and controlling pollution of water bodies through stringent punitive actions.
In planning and implementation efficiency benchmarks to be prescribed, done in ecological, social and climate change perspective and they should be time bound to avoid economic losses. Local governing bodies like Panchayats, Municipalities, Corporations, etc., and Water Users Associations, wherever applicable, should be involved in planning of the projects.
Proactive measure like flood forecasting, coping mechanisms in place and relevant control measures to prevent flood and drought are to be planned
Removal of disparity in water supply urban and rural areas, tapping surface water for urban domestic water supply and integrating water supply and sewage treatment schemes will be given priority.
A permanent Water Disputes Tribunal at the Centre should be established to resolve the disputes expeditiously in an equitable manner. Apart from using the „good offices‟ of the Union or the State Governments, as the case may be, the paths of Arbitration and Mediation may also to be tried in dispute resolution.
Water resources projects and services should be managed with community participation. Wherever the State Governments or local governing bodies so decide, the private sector can be encouraged to become a service provider in public private partnership model to meet agreed terms of service delivery, including penalties for failure.
The draft facilitates international agreements with neighboring countries on bilateral basis for exchange of hydrological data of international rivers on near real time basis.
All hydrological data, other than those classified on national security consideration, should be in public domain. A National Water Informatics Center should be established to collect, collate and process hydrologic data regularly from all over the country, conduct the preliminary processing, and maintain in open and transparent manner on a GIS platform.

Merits and demerits of the policy

Merits

The policy deserves accolade for its ecological, climate change and conservational perspective.
Adaptation to climate change and the statement that special attention will be given towards mitigation at micro-level by enhancing the capabilities of community to adopt climate resilient technological options is welcome.
The revision of the statement “water, over and above the preemptive need for safe drinking water and sanitation, should be treated as an economic good so as to promote its conservation and efficient use” in the initial draft to “Water, after meeting the preemptive needs for safe drinking water, sanitation and high priority allocation for other domestic needs (including needs of animals), achieving food security, supporting sustenance agriculture and minimum ecosystem needs, may be treated as economic good so as to promote its conservation and efficient use” can be welcomed in the perspective that agriculture was given importance.
The statement that “inter-basin transfers of water should be considered on the basis of merits of each case after evaluating the environmental, economic and social impacts of such transfers” seems to understand the difficulty in interlinking rivers and its possible negative impacts.
Growing water conflicts warrant a permanent “ Water dispute tribunal”, which is taken care off in the draft.
Underpricing of electricity is no doubt a reason for wastage of both water and electricity. Importance to regulate this is given in the draft which can be appreciated.

Demerits

The policy sees water as a community resource, but at treats water as an economic good which is contradictory. Approaching water as an income generating resource by the government, must be executed very carefully. The policy allows for public private partnership model and also asks the states to exit the “service provider role” and play as a regulator, which will lead to distortion of access to water and the prices in long run. As usual with the other policies, the poor will be at the receiving end.
Doing away with priorities mentioned in the earlier drafts (1987 and 1992 drafts lists the priorities as drinking water, irrigation, hydropower etc.) will cause confusion in decision making process and facilitate the role of parties with vested interest (e.g., providing flexibility for allocating water for industrial use even at the cost of agriculture).
The water policies were there in paper since 1987, but nothing much has been done practically to ensure judicial use of water, to prevent encroachment of water bodies or growing exploitation of ground water resources. For e.g., As per clause 3.3 of the 2002 policy, water resources development and management will have to be planned for a hydrological unit such as drainage basin as a whole or for a sub-basin, multi-sectorally, taking into account surface and ground water. “This has not translated into even one example of planning for a basin or even one instance of planning for surface and groundwater together,” says Chetan Pandit, former member (Policy and Planning) of Center water Commission.
Giving incentives for recycle and reuse of water is in the favor of industries. Instead of incentives, strict enforcement of punitive laws to punish those industries that neglect water and pollute it should be the ideal option
The draft policy, also wants to take away proprietary rights on water, which means no one can take ownership of ground water in a private land. Though it seems a good move, practically it may affect use of water for agriculture also unless it is further clarified.
Intra-state and inter-state water conflicts exist and the already constituted tribunals could not find a solution to this (Cauvery water tribunal for example). Water issues are very sensitive and unless proper understanding among people within states and inter states is created, conflicts will continue to occur.

To Conclude

Water, food and shelter are the basic amenities for every human being. Hence, drinking water and water for agriculture should be ensured as a right of every Indian. Though population growth is stated as the general reason for increased demand for water, there are many other basic reasons underneath like wastage of water, less importance to recycling, exploiting the natural resources and lack of attention to maintain water storage structures and other water harvesting technologies. Above all, the corruption that has rooted in the water management practices like in other departments remains as a potential threat to the water security of the country. All living beings on the earth, live by using the existing resources. Man is the only animal, who lives by exploiting those resources. The result of continuous exploitation of these resources will result in a large social unrest in long run, leading to further conflicts, barbaric acts, growth in terrorism and large scale wars. The growth of conflicts over water in the recent years across states and terrorism in north eastern states were just examples. National Water Policy will just remain as a resolution in paper, like the earlier ones if the government is not very serious about the issue and come out with explicit strategies. At the same time protecting the basic rights of the people is equally important. Care should be taken that poor is the victim of these processes.

References:

Draft national water policy (2012) as recommended by national water Board in its 14th meeting held on 7th June, 2012, Ministry of water resources, Government of India.
Water Policy Issues of India: Study Outcomes and Suggested Policy Interventions. International Commission on Irrigation and Drainage (ICID), New Delhi, August 2005.
National Water Policy, 2012 silent on priorities. Bharat Lal Seth. Down to Earth, Feb 10, 2012
Revised draft national water policy restores priority to agriculture. Bharat Lal Seth, Down to Earth, Jul 18, 2012.
Not the farmers, not the environment: Draft National Policy 2012 seems to help only vested interests - Press release by SANDRP. http://www.indiawaterportal.org/post/23168.
Let water, not profits, flow. The HINDU, Editorial, Feb 4, 2012.