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CONTENTS

COVER ARTICLE 6

GST -
Worries
Ahead
Dr. Ashwani Mahajan
Vol-22, No. 7
1 Cover Page
Aashad - Shravan 2074 July 2017
2. Cover Inside Page
EDITOR
Ajey Bharti 09 COVER STORY-II
PRINTED AND PUBLISHED BY: Let great GST roll out begin the end of barriers; Four freedoms can
Ishwardas Mahajan on behalf of Swadeshi boost internal trade
Jagaran Samiti, 'Dharmakshetra', Sector-8,
........................................................................ Shivaji Sarkar
R.K. Puram, New Delhi-22,
11 COVER STORY-III
COVER & PAGE DESIGNING
Sudama Bhardwaj Mixed impact of GST
............................................................ Bharat Jhunjhunwala
EDITORIAL OFFICE
'Dharmakshetra' Sector-8, Babu Genu Marg. 13 GM CROPS
R.K. Puram, N. D.-22
E-MAIL : swadeshipatrika@rediffmail.com Why are multinational companies so keen to push hazardous GM/
WEBSITE : www.swadeshionline.in GE crops?
........................................................................... Bharat Dogra
15 GM CROPS-II
LETTERS 3
GM Mustard: A scientific fraud on Indian farmers
............................................................................ Vipesh Garg
NEWS 34 19 GM CROPS-III
The GM Mustard crossroad
............................................................ Inder Shekhar Singh
22 FOCUS
Ancient Caste Harmony and Shoodras as Rich Producers
........................................ Prof. Bhagwati Prakash Sharma
28 AGRICULTURE
Farm Protest Rages Across India
.................................................................. Devinder Sharma
30 ANALYSIS
Current conflict is essentially between Global and Local
.......................................................... Prof. R. Vaidyanathan

39 Back Inside Cover


40 Back Cover
Letters
GM Seeds: Quote-Unquote
A Danger to our Eco-system
The special issue of June'17 focusing "Curse of science"
is providing a vast knowledge about imposition of tempered There is no place for violence
seed/soil toxination on our existing cultivation system and in India. Let us create an India
deiversity of native seeds. that would make Gandhi Ji
The articles from all the five writers with relevent ref- proud.
Narendra Modi
erence statements from latest Academic Journals and Re- Prime Minister

ports have revealed the fact that Governments and MNC's


are introducing a dependency on corporate inputs in our self
sustaining agricultural system.
Swadeshi Patrika should produce some more issues to Both our nations have been
protest the policy of commercialization in agriculture and struck by the evils of terrorism,
and we are both determined to
agro commodites, to save the interest of our innocent farm-
destroy terrorist organizations
ers. This issue has not only underlined evil effects of GE and the radical ideology that
seeds, but has also strengthened the importance of native drives them. We will destroy
seeds. radical Islamic terrorism.
We need to hand over the sustainable environment to Donald Trump
President, USA
our future generations. I wish the magzine will inculcate a
strong will to oppose such "Curse of science".
Your issue reminds me a beautiful quote by Ayn Rand
"You can avoid reality, but you cannot avoid the consequences
of avoiding reality."
India today is very different
Vijay Sharma, Delhi from what it was in 1962,
when the countries fought a
EDITORIAL OFFICE war over Arunachal Pradesh.
SWADESHI PATRIKA Arun Jaitley
Finance Minister
Dharmakshetra, Sector-8, Rama Krishna Puram, New Delhi-22
n Tel. : 26184595, E-Mail: swadeshipatrika@rediffmail.com
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Indians admire the courage
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with which tiny Israel has held
Life Membership : 1500/-
forth against hostile neigh-
Kindly write your full name and address in capital letters.
If you do not receive any issue of Swadeshi Patrika, kindly e-mail us immediately. bors out to exterminate the
Disclaimer Jewish homeland.
The views expressed within are those of the writers and do not necessarily represent the views Madhu Purnima Kishwar
of Swadeshi Patrika. Swadeshi Patrika often present views that we do not entirely agree with, Indian academic & writer.
because they may still contain information which we think is valuable for our readers.

4
E GST, Growth and Government - RBI Face off
D Finally, GST is rolled out and is being presented as a major economic reform. There is long history
preceding the advent of GST. Issues which came in the way of introduction of GST were ranging from

I 'revenue neutrality', that is, introduction of GST should not affect the revenue of the centre and the states
adversely; 'federal' that was related to centre state financial relations and pure political. In the last leg of the
exercise, the Congress party wanted that it should be included in the GST Act that the rate of GST would not
T be more than 18 percent in any case. However, this was not acceptable to the Narendra Modi government.
Later, the Congress party gave up its stance, and after that the stage was set for GST. As per the rate
O structure decided by the GST Council, agricultural goods and exports have been kept in the category of zero
tax and apart from zero, 4 types of rates have been proposed. Five percent tax on general consumption
goods, whereas luxury and non merit goods, such as tobacco have been slated to attract a high rate of 28
R percent. The remaining items are supposed to be taxed at 12 percent and 18 percent.
On the one hand government is saying that new regime is a biggest reform in the history of indepen-
I dent India, small industry and business is frightened by its introduction, though big corporate, MNCs and
big interstate operators are the happiest lot. Swadeshi Jagran Manch has shown its solidarity with these

A small scale entrepreneurs and traders and has urged the government to address their genuine concerns.
Given the complexities attached with the new regime, and the fact that every businessman and industry will
have to make multiple registrations and fill up various types of returns and a multiple tax structure, making
L the system even more complex; its not very certain that whether GST will actually be beneficial or not, the
prices will fall or not, the tax system will simplify or not, increase or the revenue of the government will
increase or decrease, all these issues carry big question mark.
On the other hand a major problem haunting our economy is that demand is not really taking off, may
it be consumer, investment or government demand. And when our economy needed a big push to demand
by way of reducing rate of interest to make the loans cheaper, recently Monetary Policy Committee (MPC)
has one again decided, not to reduce policy rate of interest. This decision of the MPC has drawn a lot of
criticism, especially from the Finance Ministry. There is nothing new about tussle between central govern-
ment and RBI about interest rates. It is well known that central government generally wants RBI to reduce
policy interest rates to boost growth. This is so because, if interest rates decline, demand for houses, cars
and other consumer goods will increase, with cheapening of loans. With lowering of interest rates, invest-
ment increases not only in industry and businesses, even new infrastructure also gets encouraged. Dream
of purchasing a house or of a car, could easily be accomplished with cheaper loans. Moreover, largest
borrower in our country is government, low interest rates reduce cost of borrowings by government, and
lower interest burden may help in larger outgo for welfare expenditure by government. But the Reserve Bank
does not agree with the government about interest rates. It says that the monetary policy is not only about
growth but also price stability. The Reserve Bank says that since the inflation is yet not stabilised, therefore,
the reduction in interest rates is a risky proposition, and it may lead to inflation by increasing the demand.
Chief Economic Advisor (CEA) Arvind Subramanian says that since CPI inflation rate had dipped to
merely 3.73 percent in May 2017, economy could have been easily given a boost by reducing interest rates,
or in other words one can say that MPC has wasted an easy opportunity to boost growth. It is notable that
target rate of inflation was earlier fixed by RBI at 6 percent before February 2016 which was reduced to 5
percent and ultimately to 4 percent is April 2017. Therefore since CPI inflation had come down to 3.73
percent, therefore repo-rate was obviously expected to be reduced.
RBI may have a hitch that this reduction in inflation rate may not sustain in the long run. RBIs recent
monetary policy statement says that in the second half of 2017-18, inflation may increase. However, point to
be noted is that, actual inflation rate has generally been lower than the inflation rate projected by RBI. For
instance RBI projected an inflation rate at 5.0 percent in the third quarter of 2016-17, which actually turned
out to be only 3.7 percent. Consistently erratic projected inflation rate given by RBI, underlines the need to
improve the projection process and also change the adamant attitude, not to reduce repo rate. Given
widespread recession in the world today, there are very little prospects for export driven growth. An in-
crease in investment (whether in business or in infrastructure), is also very important. In such a situation, it's
imperative to reduce interest rates. However, consumer inflation targeted monetary policy on the one hand
and Reserve Bank's consistent misunderstanding of inflationary trend on the other, have been coming in
way of reduction in repo rate. RBIs adamant attitude towards rate cut has been coming in the way of growth,
which is not good for the country's health.

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GST - Worries Ahead

O
vercoming political barriers in the path of Goods and Service Tax (GST),
government is presenting its introduction as a major economic reform.
After a long lasting exercise for the over 8 years, GST has finally been
In 140 countries, implemented. Although efforts to implement GST had started at the time of
where GST or VAT Congress-led UPA government, but after the formation of the NDA govern-
ment, Congress wanted the same on to its own terms. The Congress wanted that
tax system is there
it should be included in the GST Act that the rate of GST would not be more
in some form or the
than 18 percent in any case. However, this was not acceptable to the Narendra
other, there is Modi government. Later, the Congress party gave up its stance, and after that the
generally single stage was set for GST. Today not only has the GST bill become a law, but GST
rate of GST. Council has prepared the GST tax structure also. Agricultural goods and exports
However, in India, have been kept in the category of zero tax and apart from zero, 4 types of rates
apart from zero, have been proposed. Five percent tax on general consumption goods, whereas
four more rates of luxury and non merit goods, such as tobacco have been slated to attract a high
GST have been rate of 28 percent. The remaining items are supposed to be taxed at 12 percent
approved, says and 18 percent.
Dr. Ashwani What is GST?
Mahajan At present, India's indirect tax structure is extremely complicated. Different

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types of indirect taxes are imposed
on the goods and services by the
Central and State Governments. In
the Constitution, the economic
powers have been divided be-
tween the Center and the States,
according to which the Central
Government has the right to col-
lect custom duty and impose ex-
cise duty on products, except a
few such as liquor, toiletries etc.
Apart from this, the Central Gov-
ernment has been imposing service
tax for almost 23 years. On the
other hand, the state governments
have the right to impose sales tax, Multiple rates to reduce ef-
entertainment tax, stamp duty, tax ficiency The ability and
It is being said that GST is a
on electricity consumption, tax on
globally accepted system, but we
willpower of the
transport of goods and passengers
etc. After GST is implemented, must keep in mind that in 140 central & state govts
barring a few exceptions, all other countries, where GST or VAT tax would test the
types of indirect taxes will be sub- system is there in some form or
sumed with GST. the other, there is generally single efficiency of the
GST is a consumption-based rate of GST. However, in India, GSTN and therefore
tax and imposed on the point of apart from zero, four more rates
final sale. However, GST is im- of GST have been approved. Not would decide the
posed and collected at each level only this, whereas same rate applies success of the GST.
of value addition and at every to hotels, restaurants, transport etc.
point of purchase credit is paid on across the world, tax rate has been GST in the state where it carries
the next point of sale. On the last fixed in India based on hotel tar- its business. In the special catego-
point of sale, that is consumer, full iffs and turnover etc. ry states, this limit is only 10 lakh
tax is collected and deposited with rupees.
Small industry and business
the exchequer. Apparently, India's small en-
is frightened
Amit Mitra, Finance Minister trepreneurs will be subject to dis-
As the date of implementa-
of West Bengal has opposed GST crimination and confusion. World-
tion of GST is approaching, the
in its present form. His opposition wide, we find exemptions for Small
heartbeats of small entrepreneurs
is also to the imposition of 28 per- Scale Industries. Though in Cana-
and small traders are increasing.
cent GST on leather, regional cin- Although big companies are a hap- da SSIs are exempted up to 30,000
emas and books. He also opines pier lot with GST taking over, Canadian dollars (Rs 15.6 lakh), this
that the GST Network (GSTN) is small enterprises feel that GST limit is 48 million rupees in Sin-
not fully prepared. There are many may cause huge loss to them. Sig- gapore and rupees 7.5 million in
who share his opinion about lack nificantly, currently there is a pro- Malaysia, however it's only Rs 2.0
of preparedness for GST. There vision for exemption in excise duty million in India. With small indus-
is a general feeling that industry and for production of up to Rs 1.5 tries presently exempted up to ru-
business are not fully prepared for crore in small scale industries. pees 15 million, GST does a gross
this big tax change, and in the event However, according to the injustice to SSI.
of the implementation of GST, provisions of GST, any entity Not only this, we find that
there may be lot of confusion and whose business is rupees 20 lakh most of the commodities pro-
disruption. or more, must register itself for duced by SSIs have been taxed at

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Press Release
The new tax regime in the form of Goods and Service Tax (GST), to be launched at midnight on
June 30, is being called a biggest tax reform/change.
Swadeshi Jagran Manch has been saying for long that though GST will make compliance easier
for big businesses, multi state operators and TNCs, but at the same time onus of compliance for small
scale industry may cause a host of problems, putting them at loss vis a vis their competitors from big
industry and businesses.
Further, taking away of the exemption up to rupees 1.5 crores, would further put them at disad-
vantage.
While deciding about the rates of GST, due care has not been taken to keep rates low for commod-
ities being produced by SSIs and providing huge employment. Beedi, crackers, beverages. Biscuits,
pickles, confectionery, scissors and host of other products produced by SSIs and cottage industries are
attracting higher rates of GST, which is likely to affect their competitiveness.
Beedi industry which provides direct and indirect employment to nearly 5 crore people, needs to
be protected. In the new GST, Beedi attracts highest tax rate of 28 percent endangering the employ-
ment of crores of tendu patta collectors and Beedi rolling workers, especially women.
We need to keep in mind that SSIs are of core importance for our country in terms of output,
employment and exports. Moreover we also need to keep in mind that our SSIs despite various disad-
vantages have been giving tough competition to Chinese onslaught. If new tax regime works against
their interests, influx of Chinese products will increase, causing huge balance of payment deficit.
A large number of SSIs and traders organisations, belonging to different sectors, commodities and
regions are opposing GST in its present form and rates of GST, seeking redressal of their concerns.
Swadeshi Jagran Manch shows solidarity with genuine demands of these groups and urge upon the
government to favourably work upon to address their concerns for a balanced GST, and help smooth
transition to a new tax regime.

Dr. Ashwani Mahajan


Dated: 28-06-2017 All India Co-convenor, SJM
higher rates (15 percent, 18 percent was less than the previous tax rate, fill out various types of returns. In
and 28 percent) making the life dif- and due to this, the traders and in- addition to this, the complexities
ficult for SSIs. dustries also benefited. However, of GST will increase further due
Apart from this, we know this benefit of lower tax in GST to the multiple tax rates. Therefore,
that for big industries it is relative- regime was not passed on to con- whether GST will actually be ben-
ly easy to get tax-paid bills. There- sumers. Today, when GST is be- eficial or not, the prices will fall or
fore, tax credits can be easily taken ing implemented in India and its not, the taxpayers' problems will
by large businesses. In large-scale decrease or increase or the reve-
rate is also higher than the present
business and MNCs, transactions nue of the government will increase
tax rate, there is no guarantee that
are mostly between their branch- or decrease, all these issues carry
inflation will actually decrease. big question mark. The ability and
es, due to which they have no dif- GST is a big tax reform, its
ficulty in their accounting and tax willpower of the central and state
being claimed that the tax system governments to deal with the dif-
credits. will become simple. However, it ficulties arising from time to time
Will it be less inflationary? does not appear to be, as every and also the efficiency of the
Wherever GST was imple- businessman and industry will have GSTN would decide the success
mented worldwide, rate of GST to make multiple registrations and of the GST.

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Let great GST roll out begin the end of


barriers; Four freedoms can boost
internal trade

Indias internal trade GDP ratio at about 54 percent is comparable to that in


other large countries. India for nearly 70 years has affirmed and reaffirmed polit-
ical idea of India, is de facto and de jure one economic India, observed Eco-
nomic Survey 2016-17.
The inter-sate trade is 1.7 times larger than the countrys international trade
of 32 percent of GDP. Indias trade profile is thus more similar to that of
China at 1.6 times its international trade but less than the US whose internal trade
is 2.5 times its international.
The observation is significant on the eve of the ceremonial launch of Goods
and Services Tax (GST) from the Central Hall of Parliament House. It means
Indians have ingenuity and passion in integrating the country. Language or the
political regionalism is not a barrier in internal trade expansion. Despite many
hurdles more bureaucratic or rule-based the integration is amazing, the Survey
notes. It has come down heavily on impediments on truck movements on state
borders with their drivers haggling for official clearances or subject to extor-
tion. The GST possibly is not addressing these issues as of now. It may gradually
pave the way for smoother movement. But the new GST one national tax with
four different components or taxes is ignoring it.
Ideally, it should have done away with highway and other tolls (municipal
etc) despite multiplicity of road, parking and fuel cess on transport movement.
The consequent damages to trade and economic activity too have been exten-

The GST in its


present form is not
the end. It would be
a beginning of the
real future reforms
to boost internal
trade, says
Shivaji Sarkar
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sively catalogued, the Survey state borders need to be completely Yes, that would boom nation-
notes. This is despite the fact the eliminated. Presently, a plethora of al and state GDP. There is no ra-
Indian society is extremely mobile, forms are needed to be filled up tionale for holding goods at po-
a dream of father of the Consti- to satisfy the state road transport lice posts for non-payment of a
tution, Dr B R Ambedkar, for con- authorities and also pay an addi- small amount of tax. This can be
veying a change. tional road tax, in some cases even sorted out in ways other than pu-
But the costs of movement are with a national permit. nitive. President of Global Trucks
about twice as great. The Survey The system of inspectorate Anuj Kathuria at the recent zonal
attributes it to the current indirect that thrives of what the Survey conference told media he hoped
taxes. It, however, does not refer notes as extortion has to be done that tolls and restriction on move-
to the inter-distirct police barriers away with. Apart police and RTO ment is set to go with GST and
and jumbling of vehicles at inter- posts levy taxes amounting to goods could move with ease. Such
city borders due to tolls levied by about Rs 28,000 crore a year ease of rules has larger benefits. It
local bodies. The GST presently is The GST Network (GSTN) not only makes movement easier,
not addressing the issue apparent- that has already come out with an it also increases demand and
ly. The Survey hopes that the GST IT architecture has to broaden it boosts manufacturing at all levels
by ironing out oddities may nor- to include the goods movement. including automobiles.
malize inter-state trade. Instead of each time demanding a Removal of barriers can help
According to a recent report hardcopies of invoice and forms, the laggards. The Survey says the
published by Transport Corpora- it should create an automatic ID to so called laggards like UP and
tion of India (TCI) and IIM-K, end the discretion of inspecting of- Haryana are the manufacturing
such delays impose transaction ficials. A system of trust has to be powerhouses not just Tamilnadu
costs of over Rs I lakh crore ($21 built. The official system is based and Gujarat. Uttar Pradesh is a net
billion) annually on Indias business- on the concept of mistrust. The hu- exporter, and hence competitive in
es. In addition, it increases average man element is missing in it. The manufacturing. There is a strong
transit times and makes supply distrust apparently is the creation of correlation between a states man-
chains inefficient. Enabling seam- the not so honest officials so that ufacturing share of states GDP
less movement of goods across extortions can go on. Even the GST (GSDP) and its trade volumes (as
India is, in fact, is considered to be has to be widened beyond taxes to percent of GSDP).The manufac-
one of the most important aspects creating a system of having seam- turing prowess of states is associ-
of GST-related reforms. The rules less movement across states. ated with higher inter-state trade.
of transport-related documenta- The GST bill has provisions The fundamentals of Indias
tion and administrative procedures for substantive powers for stop- provincial trade compare with the
for checking and inspection of page and seizure of vehicles, which best in the world Canada, Euro-
trucks, though usually unnecessary can be potentially abused. The na- pean Union and the US. These are
and often severe duplication, so far tion has witnessed how the local governed by the four freedoms
has not received attention. police abuses these provisions lead- allowing unfettered movement of
The National Highway Au- ing to lakhs of vehicles being goods, services, capital and peo-
thority of India says that it is digi- turned into the junks at police sta- ple. Indias internal trade data is
talizing the toll gates. It conceals the tions often just for the reason that understated as it does not include
fact that the tolls are additional and someone has not paid the slush agricultural products.
unnecessary tax as already several money. This is a severe penalty and So the road to progress in
kind of road taxes are levied on soar business costs, causes uncer- India is enormous provided the
truck, bus and other transport tainty and hampers trade. man-made barriers are eliminated.
movement. It is an additional cost. Such clauses should gradually The GST in its present form is not
Each toll gates, despite supposed be out the law books so that the the end. It would be a beginning
electronic control, adds to travel business and trade can thrive, jobs of the real future reforms. One
time and creates barriers. are created and the happiness that hopes the dream of one econom-
With one GST, check posts at India aspires for may become real. ic India would succeed with it.
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Mixed impact of GST

T
he Goods and Services Tax is to be implemented from July 1st this year.
At present manufacturers have to separately pay excise duty and VAT on
the goods sold by them. The two taxes will be combined into one GST
levy. This will make life easier for businesses. They will have to fill in only one
return. Interstate trade will become easier. The requirements of obtaining forms
for entry of goods into various states will be eliminated. These are positive fea-
tures of GST and will help increase the growth rate.
The impact of GST on the people depends upon the classification of goods.
The Government must be congratulated on taking a largely pro-poor approach
in the classification. To give a short list, printed books and newspapers have been
placed in zero GST slab; garments of less than Rs 1,000 and footwear of less
than Rs 500 have been placed in 5 percent GST slab; ghee, butter and namkeen
have been placed in 12 percent GST slab; footwear costing more than Rs 500, ice
cream, steel goods, and large number of other items have been placed in 18
percent GST slab; and bidi, chocolate, pan masala, washing machine, cars and
bikes have been placed in the highest 28 percent GST slab. The basic approach is
good. There are some anomalies, however. Mobile phones have been placed in
12 percent slab. Ordinary mobile phones and smartphones of lesser price should
be shifted in 5 percent slab to encourage more use of these devices. Smartphones
of higher price should be shifted to the 28 percent slab. Another anomaly is that
umbrella, sewing machines, medical diagnostic kits and note books have been
placed in 12 percent slab. These are merit goods and the indirect benefit to the
economy from their increased consumption is very high. These must be shifted
to the 5 percent slab.
The classification of services follows the same pattern. To give a short list,
hotels with a tariff of less than Rs 1000 have been placed in zero GST slab; rail

In the impact of
GST will be mixed
in nature, however
the real benefitial
will be large
industries
says
Dr. Bharat
Jhunjhunwala
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and air travel have been placed in laysia on the impact of GST con- In my assessment, two ex-
5 percent GST slab; business class cluded that 64.1 percent people pected outcomes of GST will not
air travel has been placed in 12 had reduced their consumption materialize, however. The expec-
percent GST slab; air-conditioned with the increase in the price of tation that GST will lead to less
hotels have been placed in 18 per- goods and services. This means black economy is totally misplaced.
cent GST slab; and 5-star hotels that there was a net increase in the Actually it will make it easier to
have been placed in the highest 28 tax burden on most households. undertake business in No 2. Un-
percent GST slab. However, there Another study from Australia der the present system a business-
are some anomalies here as well. showed that the bottom 20% of man undertaking No 2 business has
All rail ravel has been placed in 5 households paid an additional 4.4% to enter into an arrangement with
percent slab. There is a need to shift of their income; while the top 20% two sets of officials from the ex-
unreserved tickets to zero percent, of households only paid an addi- cise and sales tax departments.
leave sleeper tickets at the present- tional 1.4% of their income. This Under the new dispensation he will
ly proposed 5 percent, and shift means that the increase in GST on have to make an arrangement with
air-conditioned travel to 18 or even the items consumed by the poor only one set of GST officials.
28 percent. Also telecom services was more than on the items con- Consequently it will be easier
have presently been placed in 18 sumed by the rich. to do No 2 business now than pre-
percent. These too are merit goods. On the other hand, Ethiopia, viously. The reported benefit from
The Government must encourage Pakistan and Vietnam have expe- catching No 2 transactions by
the people to use data services so rienced beneficial impact on the bringing all transactions under one
that they become net-literate and weaker sections. The classification platform will not be attained be-
they are better prepared for the done by them was progressive. cause this arrangement was already
opening vistas in the internet They placed most of the essential in place under VAT system and
world. Most jobs in future may goods in zero rate of GST. excise duty. The tax paid on inputs
come from his sector. These ser- The way GST will play out in was set off against the tax payable
vices, especially data services up to India is not known as of now. The on output. There is no change in
a specified limit or 2G services impact on different sections of the this system.
should be made exempt from people will be generally neutral The second expected out-
GST. That said the overall classifi- because the classification of goods come of benefit to the common
cation of goods and services is has overall been done decently. man from increased economic ac-
satisfactory. Therefore, I reckon the However, the level of total tax col- tivity is also misplaced. It is true
impact on different sections of the lection is open as of now. The to- that inter-state movement of
society will largely be neutral. tal collection of GST may be more goods will become easy. But this
The other impact of GST than the combined collection of benefit will accrue mostly to large
depends on the overall tax collec- excise duty and sales tax at present; industries that have the capacity to
tions. Presently different goods are or it may be less. We will know sell their gods across multiple states.
being taxed at different rates in the only, say, after one year when the Small businesses mostly sell their
states. The GST rate on the same dust settles down. The impact of goods within their own state. Let
item may, therefore, increase in one GST on the economy will be neg- us say A is a small scale namkeen
state and decrease in another. It is ative if total tax collections increase manufacturer located in UP. He
not possible to make an overall because that will increase the tax sells his goods mostly in UP. Pre-
assessment of the total impact of burden on the people, reduce their viously it was difficult for a nam-
GST on tax collection for this rea- purchasing power and their stan- keen manufacturer B based in
son. GST has been implemented dard of living. On the other hand Nagpur to sell the namkeen in UP.
by about 160 countries in the the impact will be positive if total Now it will become easy for B
world. The experience is varied. tax collections reduce because that to supply in UP. That will lead to
Malaysia, for example, implement- will increase the tax burden on the intrusion of B I the market area
ed GST in 2015. A study conduct- people, increase their purchasing hitherto controlled by A and im-
ed by National University of Ma- power and their standard of living. pact him adversely.

12
GM CROPS

Why are multinational companies so keen


to push hazardous GM/GE crops?

Eminent scientists who have examined the tech-


nology of genetically engineered (GE) or geneti-
cally modified (GM) crops have come to a clear
conclusion that it is a highly hazardous and risky
technology. For example eminent scientists from
several countries who comprise the Independent
Science Panel (ISP) have drawn this conclusion
after studying various aspects of GM crops, GM
crops have failed to deliver the promised benefits
and are posing escalating problems on the farm.
....GM crops should be firmly rejected now.
Prof. Marcello Buiatti (Plant Genetics Dept.,
University of Florence) has summarised the ex-
perience of two decades of genetic engineering -
Plant and animal genetic engineering has devel-
oped only two products in more than twenty years - despite the research work of
hundreds of thousands of highly skilled technologists and huge financial invest-
ments. It can, therefore, be considered the worst failure of the whole history of
innovation in agriculture.
Such examples of the opinion of eminent scientists about the serious risks
and hazards of GM crops can be multiplied. The question that arises is - then why
are some big multinational companies so eager to promote these hazardous and
risky crops. The answer is that these companies are not interested in improving
food security, they are only interested in tightening their grip over the worlds
food and farming system so that they can squeeze huge profits out of it, regard-
less of any adverse impacts on farmers, consumers and environment. Hunger
Bt proteins, may worsen, fertile fields across vast areas may get contaminated, large number
incorporated into of unsuspecting people and animals may fall seriously ill-they are not seriously
25% of all bothered about all this as long as they can tighten their control and increase their
transgenic crops profits.
worldwide, have In fact if we look at the trends in world food and agriculture in recent
been found harmful decades then these have been dominated by the increasingly desperate efforts by
to a range of non- huge multinational companies to increase their dominance of the world food and
target insects, still farming system. The way in which patents were incorporated into the WTO
agenda and so in a very clever way almost all countries were forced to change
MNCs are so keen
their patent laws in keeping with the interests of developed countries provides a
to push hazardous glaring example of the high-powered forces at work to implement this agenda
GM/GE crops, says of dominance. The new patent laws helped the food and farming giants to tight-
Bharat Dogra en their grip on plants and seeds resources of the developing countries.
13
GM Crops

Genetic erosion of their plant as the primary building blocks of in the controversial technology of
wealth has also proved very expen- agriculture, genes have incalculable genetic engineering. A very impor-
sive for farmers, particularly those political and economic importance. tant part of genetic engineering
based in developing countries. Due Industrialized governments - often research has been devoted to her-
to the combined impact of de- overruling the intentions of their bicide-tolerant plant varieties, for
struction of natural forests, and the scientists - have come to hoard example cotton which is tolerant
introduction of green-revolution germplasm and to stock seeds as to a herbicide called bromoxynil.
type agriculture, which replaced part of the arsenal of internation- Soon the genetic engineering
local varieties over large areas by al power diplomacy. Private com- companies shifted to the even more
new monocultures, genetic erosion panies in North-although glad to obnoxious technology of introduc-
has been taking place on a massive receive free genes - are loath of ing pesticide properties within the
scale even in the countries which divulge or share the adaptations plants. About these trends, the In-
have been the original source of they draw from these donations. dependent Science Panel has said,
much of the plant diversity. Soon It was noticed about two de- Bt proteins, incorporated into 25%
thousands of varieties of plants cades back that the nature of the of all transgenic crops worldwide,
were lost to these countries for seed industry was changing in sev- have been found harmful to a range
ever. However, already several of eral countries, particularly the rich of non-target insects. Some of
these had been stored carefully in western countries (although simi- them are also potent immunogens
the labs and gene banks of the lar changes were soon noticed also and allergens. A team of scientists
developed countries whose scien- in several developing countries). has cautioned against releasing Bt
tists had been engaged in these col- The seed industry had earlier been crops for human use.
lections for several years. Sudden- based on small firms. These firms Despite this clear view, shared
ly, in the time span of a few de- were now being gobbled by big by many eminent scientists, the
cades, the natural advantage which companies, especially companies main company involved is willing
some parts of the world had en- which already had big stakes in to go to any length - bribery, coer-
joyed for millions of years ap- agri-chemical industry - within a cion, lies, manipulations to spread
peared to have been reversed. single decade, chemical corpora- its obnoxious technology because
Today several experts agree tions spent over $10 billion in buy- its objective is not food security,
that most of collected genetic di- ing up seeds companies. In fact the its objective is only to tighten its
versity is stored in gene banks in American Seed Trade Association grip on food and farming system.
Europe and North America. In a even organized a special sympo- Genetic engineering is so im-
handful of high-security institutions sium on How to sell your seed portant in this quest for dominance
of these and a few other countries, company. Apprehensions were as this complex and expensive
the worlds most valuable raw rightly voiced that a small number technology is concentrated to a
material is stored, and it is unlikely of giant companies will control large extent in the hands of a few
that the countries of origin from seeds as well as agri-chemicals, and giant multinational companies and
where most of this material came that the production of seeds can their subsidiaries. The story that
will have free access to it. be given such an orientation as to started with snatching the plant
Pat Roy Mooney brings out require high and increasing amounts resources of tropical/developing/
the glaring injustice of this situa- of agri-chemicals. According to one poor countries, then proceeded
tion, It is a raw material unlike any widely quoted estimate at least 27 with new patent/IPR laws gets
other in the world. It has not been corporations had initiated 63 pro- completed with genetic engineer-
bought. It has been donated. It has grams to develop herbicide toler- ing. This is the carefully manipu-
been donated by the poor to the ant crops. Already a few multina- lated route which these compa-
rich. The donation has been made tional companies control a very nies, blessed by their governments
under a noble banner proclaiming considerable part of the interna- in several cases (particularly the
that genetic resources form a part tional seeds sector and pesticides. USA), have followed in their race
of the heritage of all humanity, and These trends were strength- for dominance of the world food
thus can be owned by no one. But ened further by the developments system.

14
GM Crops

GM Mustard
A scientific fraud on Indian farmers

G
enetically engineered or modified (GE/GM) crop technology is being
peddled as an innovation, but it violates the law of natural evolution:
Section 3 (j) & (h) of the Indian Patents Act, 1970; the Protection of
Plant Variety and Farmers Right Act, 2001 (PPVFR Act), and fundamental rights
under Article 21 of the Indian constitution, of the small farmer community.
India imported 11.96 million tonnes (mt) of edible oil, 60 per cent of its
needs, during 2015-16. Our productivity level is less than canola and rapeseed
mustard varieties being grown in Canada, Australia, USA. Or so the supporters
of GM Mustard are misinforming the Indian farmers and government. Even the
Genetic Engineering Appraisal Committee (GEAC), the regulatory body under
the Union Ministry of Environment & Forests & Climate Change has befooled
the nation.
It is true that India is one of largest edible oil importers. Our mustard pro-
ductivity is less than developed countries, which is a common problem of Indian
agriculture rather than a problem of mustard alone. We are almost self-sufficient
in mustard oil. The share of mustard oil in the total imported edible oil is a mere
2.72 per cent in terms of volume. The major import of edible oil is of palm oil
and soyabean. Even according to the UN Food and Agriculture Organisation
(FAO) data, the highest yields in mustard are from the five countries which do not
grow GM Mustard. There are formidable socio-economic, political and environ-
mental reasons to not introduce GM mustard in India. Let connect the dots.
Where the area under mustard has gone
In the aftermath of the Green Revolution, most of our pulses and mustard
area shifted to wheat. Supplementary irrigation and fertilisers, procurement policy

Honey producers
fear release of GM
crops, by measuring
the expected
negative impact on
the survival of bees,
warns
Vipesh Garg

15
GM Crops

a major edible oil crop in some


Bt Cotton may states as its seeds were used to ex-
have been good tract edible oil which was mixed
with other edible oils in the coun-
for the biotech try, in the absence of strict label-
companies, but ling laws and laws against mixing.
it was a Though there has been no socio-
economic study of the impact of
disaster for this development it is not even
farmers. officially admitted that this has been
going on farmers at grassroots
and a well-integrated value chain increased need for pesticide sprays level noticed many ill-effects on the
system in the form of the Food due to breakdown of resistance of health of insects, animals and hu-
Corporation of India (FCI), high- bollworm, and emergence of su- man beings. When Bt Cotton waste
er minimum support price (MSP) perweeds and new insect pests. was burnt as fuel, the smoke was
for wheat further encouraged Overall, the benefits to farmers experienced as poisonous. When Bt
farmers to grow wheat rather were niggardly; Bt Cotton may Cotton oilseed cake was fed to cat-
mustard and pulses. have been good for the biotech tle, it resulted in abortions, still births,
We are not only deficient in companies, but it was a disaster for and sharply reduced milk yields.
edible oils but also import pulses. farmers. Since the introduction of Agricultural scientists need to study
The question is whether we need Bt cotton, the price of cotton seeds this phenomenon and not ignore it.
to flood Indian agriculture with has increased exponentially and Mustard is a very important
GM crops controlled by a few over three lakh farmers have been crop in much of north India. It is
companies? Or should we look at driven to suicide. consumed directly in the form of
the highest yielder nations without oil, leaves as Sarson ka Saag, the
Biodiversity and bio-safety
introducing GM Mustard? seed as condiment, and is widely
Canada release GM Canola in
In crops like mustard, farm- used in Ayurvedic medicines. All
1996 and has become its largest
ers save, share and swap their seeds GM Mustard genes [barnase, barstar
exporter, but it does not suit our
to grow next season. Under GM and bar] are found in the leaves
cropping, farmers cannot save, agricultural system and our farm- which may have lethal effects on
share and swap the gene construct ers. Indian farmers generally grow human health, besides endangering
[barnase-barstar] hybrid seeds for the local varieties which have been well the food chain irreparably over the
next season. Instead, every year acclimatized to local climate, soils, years.
new seeds have to be purchased diseases and pests over years of Distorted studies on mice or
from the markets. cultivation. These local varieties guinea pigs for a limited time do
This is a hidden trap for poor have the capacity to sustain in in- rule out the dangers and hazards
farmers and will increase rural in- clement weather, poorly fertilised (Eric Seralini fed mice for over 90
debtedness, increase the cost of soils, and withstand disease and days to get the lethal tumours and
cultivation along with chances of pests. Saving, sharing and swapping cancers that GM foods produce).
crop failure, triggering suicides and of seeds by farmers leads to con- Moreover, the bio-safety data of
social disharmony. The story that servation, preservation and cre- GM Mustard has not been placed
GM Mustard will increase produc- ation of biodiversity. GM Mustard in the public domain on grounds
tion, productivity, yields and prof- would destroy our priceless biodi- of business confidentiality, third
it is a completely lie. The Bt Cot- versity and endanger wild flora and party patents and copyrights, which
ton pushed by Monsanto-Mahyco fauna. This is completely incompat- is absurd and illegitimate. Finally,
is a live example of this fact. The ible with the governments prom- concerns regarding bio-safety and
cost of production increased man- ise to promote organic farming. the opaque regulation mechanism
ifold in terms of high costs of Bt Cotton was introduced as are pending before the Supreme
seed, increased need for fertilisers, a non-food crop, but soon became Court since 2005.
16
GM Crops

Hidden herbicidal/termina- aging to pollinators, particularly decision unilaterally? You cannot


tor/zombie seeds honey bees. This will contaminate bulldoze GM technology in to the
GM Mustard has the bar gene the local varieties and would im- country, particularly when it is
to provide resistance against the pact their yield due to sterility prob- linked to the food chain and health
carcinogenic glufosinate /basta. At lems. Honey production and hon- of a billion-plus people.
present, the deployment of herbi- ey bees would be badly affected
Lax regulation, no legal lia-
cidal, terminator and zombie seed once GM Mustard is released. The
bility laws
technology has been supressed, but majority of pollen in honey comes
In India, the manufacturing,
will come out once GM Mustard from Mustard.
import, use, research and release
is commercialised. Glufosinate ammonium/bas-
of GMOs are governed by archa-
GM Mustard is a terminator ta is a broad-spectrum systemic
ic rules of 1989 under the Envi-
seed as farmers cannot save the herbicide which is highly poison-
ronment Protection Act, 1986. Our
seed for the next season. Basta/ ous to insects and pollinators. CCD
regulations and oversight mecha-
RoundUp resistant crops are be- (colony collapse disorder) in hon-
nisms are not transparent, are out-
coming susceptible to superweeds ey bees has been well-document-
dated, and unsuitable to todays
and superpests, so zombie seeds ed the world over due to the in-
advanced GM technologies like
in form of LibertyLink technolo- crease in the cultivation of GM
Genetic Use Restriction Technol-
gy would imprison the Indian crops. Honey producers fear re-
ogies (GURT) or zombie seeds.
farmers further. Greater evolution- lease of GM crops, which have led
There is no bio-safety and food
ary pressure via more toxic genes to the extinction of feral colonies
and environmental (FES) data of
results in faster emergence of re- of bees and are hitting bees, but-
GM food crops in the public do-
sistance. Superweeds, superpests, terflies and other insect fauna.
main. How can data related to GM
environmental contamination, high-
No public-farmer-states rep- crop trials that poses potential risk
er cases of cancers and health haz-
resentation to public health be considered as
ards were reported where Round-
The GEAC is an undemocrat- confidential?
up/LibertyLink resistant canola,
ic club of scientists with vested in- More vexing is the opaque le-
soybean, maize is grown. Three
terests. There is no representation gal framework and laws in case of
seed giants, Monsanto and Bayer,
from the farmer community or liability, compensation and punitive
Dow and Dupont, and Syngenta
amicus curiae from the public. India measures. Despite the Supreme
and ChemChina control more than
is a signatory to Cartagena Proto- Court moratorium, gene contam-
65 percent of global pesticides and
col which bound parties to take ination has been reported in tradi-
61 percent of commercial seed
public opinion on board while tional foods grown in farmers
sales. These companies have the
approving or releasing any GMO. fields. How the seed of GM crops
capacity to design and deploy genes
Agriculture is a state subject. has reached into the hands of
which would require seeds and
So how can a handful of people farmers? When unapproved Liber-
chemical spray from the same com-
in the GEAC and Environment tyLink rice lines contaminated non-
pany, creating a perpetual monop-
Ministry take such an important GM rice in USA, Bayer had to pay
oly for the seed industry. LibertyL-
ink, for instance, is a Bayer tech- Agriculture is a state
nology providing resistance to Lib-
erty and glufosinate herbicides.
subject. So how can a
handful of people in
Impact on honey bees
Intra- and inter-species trans- the GEAC and
fer of barnase gene to non-GE Environment Ministry
Mustard will lead to male sterility take such an
among the latter, due to expres-
sion of barnase gene. This will lead important decision
to poor pollen availability or for- unilaterally?
17
GM Crops

US $750 million as compensation ened to escape the hijacking by ent mechanism of food and
and punitive fee to 11,000 farmers. seed giants. environment safety [FES] needs
But, we are helpless when Indian 4. Our scientists must be social to be fixed under the Supreme
food is being contaminated with scientists first. Most scientists do Courts jurisdiction.
non-approved Bt lines. not understand how their work 7. We need better coordination
will impact farmers in socio- between state agricultural uni-
Way forward economic terms. There is need versities and ICAR to under-
1. Farmers do not require new to teach patent laws, PPVFRA stand and solve of Indian agri-
varieties and hybrids; they need 2001, TRIPS, bio-piracy etc. to culture in real time, such as the
better policies in form of irri- our research scholars and sci- problems that arose in areas
gation and market infrastruc- entific community to make when GM Cotton were grown,
ture, better prices, integrated them understand the hidden in terms of humans & cattle.
and procurement value chains. game of seeds multinationals References
2. Most of our mainstream agri- who are hijacking seeds. 1) http://agricoop.nic.in/sites/default/files/
cultural R&D is concentrated on 5. We need to make GEAC dem- edib_2201.pdf
2) http://www.navdanya.org/news/573-monsan-
wheat and rice. We need to ocratic by integrating it with the to-vs-indian-farmers
strengthen R&D in oilseeds, 3) http://www.progressio.org.uk/content/what-
Indian Council of Agricultural terminator-technology
pulses and fodder to make In- Research (ICAR), agricultural ex- 4) http://www.thehindu.com/opinion/op-ed/
say-no-to-gm-mustard/article18573107.ece
dia really food sufficient. perts, and farmer community. 5) http://www.deltafarmpress.com/rice/gm-rice-
3. We need to broaden the genet- 6. GM crops are Frankensteins case-reportedly-settled-750-million
6) http://agricoop.nic.in/sites/default/files/
ic pool of Indian Mustard and require stringent rules and
edib_2201.pdf
through traditional breeding in guidelines, smart policies, and The author is an under graduate from Chaudhary Charan
the form of varieties rather than sophisticated legal liability laws Singh Haryana Agricultural University, Hissar, Haryana
and post-graduate from Punjab Agriculture University,
hybrids. Public sector and indig- in place before, and if, allowed. Ludhiana, Punjab, and student of natural agricultural
enous R&D should be strength- The opaque and non-transpar- systems and Indian agricultural policies

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18
GM Crops

The GM Mustard crossroad

India is on the verge of a very critical


decision - to sell out swadeshi mustard
to Bayers Mustard or not? The GM
Mustard question is secretly causing
splinters all over India, as this one step
has the capacity to destroy millions of
livelihoods and irreversibly damage
Indias biodiversity. In short, this deci-
sion will enslave Indians to Bayer, as
Bayer/Monsanto will have total con-
trol of the mustard crop, from seed
to oil. Apprehending this grave threat
to Indias sovereignty, a cabinet minis-
ter has already spoken out against GM
Mustard; the late Minister of State for
Environment, Anil Madhav Dave,
devoted his life to defending Indias seed sovereignty. The RSS think tank, Swadeshi
Jagran Manch, one of India largest economic democracy organisations, is oppos-
ing the introduction because they know the real dangers of this Bayers mustard.
It is pertinent that the Supreme Court is also hearing a case on the agronom-
ical fraud in GM Mustard and has even given an interim injunction against approv-
al of this herbicide-tolerant (HT) GMO; yet some forces within the government are
pushing for a speedy clearance. There are rumours that powerful persons in the
PMO and Niti Aayog support GM Mustard; some have articulated their support in
public and are believed to have exerted pressure on the late Anil Madhav Dave and
the Genetic Engineering Appraisal Committee (GEAC). Aruna Rodrigues, lead
petitioner in the GM Mustard case in the Supreme Court, told the media that the
Niti Aayog is directly involved in pushing this HT GM Mustard. To understand the
danger posed by GM Mustard, this writer spoke with Anil Madhav Dave just
before his demise; Ashwani Mahajan, national co-convener, Swadeshi Jagran Manch;
Dr Krishan Bir Chaudhary, president Bharatiya Krishak Samaj and an expert wit-
ness at the Monsanto Tribunal at The Hague in October 2016; renowned scientist
and biosafety expert Dr Vandana Shiva, and Aruna Rodrigues.
Introduction of GM
Vandana Shiva said, The first danger of GM mustard is monopoly on
Mustard is a sign of Indias mustard seeds, just like Monsanto established a monopoly on cotton seeds.
threat to a The second danger is the spread of toxins in our agriculture, both through the
Swadeshi Bharat, spread of the herbicide glufosinate as well as the genetic modification which are
warns toxic in and of themselves. Shiva has worked to draft national and international
Inder Shekhar laws on biosafety and ardently opposes the Bayer Mustard. She has done a de-
Singh tailed review of the fraudulent assessment of GEAC.

19
GM Crops

Far from being swadeshi, the cording to Aruna Rodrigues, lead the NC and ZC respectively.
seeds, technology, patents belong petitioner in the Supreme Court Indias best varieties and non-
to Bayer-Monsanto and even the case, is NO. GMO hybrids outperform HT
biosafety assessment report was GM Mustard has - over a Bayer Mustard hands down.
written by the MNCs, Bayer/ period of at least 10 years - been Therefore, this GM Mustard fails
Monsanto, themselves. She empha- promoted as a hybrid product that the first test of a GMO risk as-
sises: Let me tell everyone: There will provide superior yield as com- sessment protocol, which is of
have been no feeding studies con- pared to its non-GMO counter- need. There is no point to this mus-
ducted on animals or humans. Plus, parts in agriculture, both varieties tard. As for the yield claims above,
there is no blood analysis available and hybrids. Following the GEAC the story uncovered in public doc-
of the animals. Barnase, Barstar, approval on 12 May, virtually all uments reveals that the statistics are
Bar Genes have not tested for safe- media, especially print media, has unreliable. There has been active
ty in GMO Mustard. The GMO focussed on this supposed su- fudging of data and wholesale de-
will cause devastation to not only periority (higher yields) along with viation from scientific norms in
biodiversity but also irreversibly the other supposed issue of the field testing, from which no mean-
impact Indian native mustard, bees, presumed biosafety of GM mus- ingful conclusions can be drawn.
soil organisms. Ever since these tard variety called HT DMH 11 Rodrigues explains, They
corporations entered India, we (Bayer Mustard). have even stated again in the gov-
have seen this in the case of Bt ernments reply (at 65, page 45):
Cotton, where the cycle of rural The developers have nowhere
debt has pushed three lakh farm- NITI Aayog claimed that the yield increase is
ers to commit suicide. without any due to the three transgenes. So
On the one hand, the govern- why is there still a debate on the
ment is claiming that it has dou- scientific issue? There are no higher yields,
bled farmers incomes, but on the and this GMO will not reduce
other hand, it is rushing to approve
homework at all imports of edible oils.
GMO Mustard, which steals farm- believes that The fact is that the NITI
ers livelihoods and pushes them Aayog, which has not done its
towards extreme steps. Shiva con- GMOs provide homework at all, believes without
cludes, GM Mustard equals any science to back that belief that
farmers suicides in Rajasthan and
superior yield GMOs provide superior yield,
other mustard growing states. That even though no GMO at present
is why states like Rajasthan have Rodrigues says, The fact is has any trait for yield and the two
been resisting it and making state- that the government themselves in technologies of HT and BT, cur-
ments against the introduction. their reply (to our application) rently 99 percent of plantings
It is feared that if released, admitted on 88, page 56, No such worldwide, have proven to be
GM Mustard will destroy the in- claim has been made in any of the unsustainable. In India, BT Cotton
digenous food culture as millions submitted documents that DMH has failed on the Central Govern-
will be eating toxic plant parts such 11 outperforms non-GMO hy- ments own admission in the Delhi
as leaves, etc. The herbicide glufo- brids. The comparison has only High Court in 2016. HT GM mus-
sinate (a known neurotoxin) will be been made between hybrid DMH tard also, decisively, has no yield
sprayed in India and will not only 11, National Check (NC) Varuna superiority.
destroy our mixed farming and and the appropriate zonal checks Rodrigues believes, the claim
intercropping practices, but may (ZC). A maximum sustainable of superior yield is the basis of the
trigger a larger cancer epidemic in yield (MSY) of 2,670 kilograms NITI Aayogs endorsement of
the country. per hectare has been recorded over GMOs in their national agriculture
Does the herbicide tolerant three years of Biosafety Research policy for Indias food security. There-
(HT) GM mustard really give high- Level (BRL) trials which were 28 fore, that this is also the advice that
er yields? The straight answer ac- percent and 37 percent more than has been received by the Prime Min-
20
GM Crops

ister or Prime Ministers Office International racketeers for Monsanto. But who are the mid-
would be a natural conclusion. GMOs dlemen who get kickbacks? As
Veteran farmer leader and in- Monsanto illegally extracted Rs
Bayer Mustard
tellectual, Dr Krishan Bir 7000 crore in royalties from India,
Our Prime Minister Naren-
Chaudhary, president of Bharatiya one wonders how much its agents
dra Modi is a very honest and hard-
Krishak Samaj, has vast experience and lobbyists earned in kickbacks.
working man, who thinks in Indias
with international racketeers. He Even at a modest rate of 4 per-
best interest. He will never allow explains, It doesnt matter which cent, it would be a few hundred
unleashing this poisonous junk government there is, a group of crores. For such compradors, it is
technology in India. We trust him International racketeers funded by of no concern that India again falls
one hundred percent, said Ash- corporate money place themselves prey to a new MNC Raj that will
wani Mahajan. He was clear that in keys positions They have links control the last seed and food on
there was no swadeshi GM Mus- from the smallest to the highest our thalis.
tard, as claimed, but Bayers Mus- corridors of power, the PMO and
tard. If you simply look at the Swadeshi Bharat
Niti Aayog included.
patents and ownership of the tech- We have to make a choice
Chaudhary feels these people
nology used in making this mus- between swadeshi Bharat or MNC
are misleading the Prime Minister
tard, it all belongs to Bayer/Mon- India. Swadeshi Bharat cannot be
because of pressure from corpo-
santo. This GMO has been made built on dependence on foreign
rations such as Monsanto/Bayer.
resistant to Bayer herbicide glufo- seeds, poisons and MNCs. Since
It is all a game of money chang-
sinate. Now the question to ask is: the East India Company, MNCs
ing hands, because if you look at
why would Indian scientists make/ have exploited us and taken their
the scientific and agronomical data,
engineer a mustard tolerant to a profits using patents and royalties
all of it is against Bayers Mustard.
foreign herbicide? back to foreign banks. Even today,
The yields are much lower, it is
Globally, Europe is about to their agents are working to exploit
herbicide tolerant and not Indian,
ban glufosinate as it is a known neu- us and profit from our deaths.
so why should one go for GM
rotoxin. Mahajan, like millions of While their own children in
technology?
devout swadeshi activists, doesnt America and Europe eat organic
Chaudhary has visited the Na-
want India to be looted again by non-GM foods, they want the chil-
tional Mustard Breeding Centre at
western corporations and MNCs. dren of Goddess Annapurna to
Bharatpur, Rajasthan, and compared
It is feared that not only will the eat junk food and GMOs. In real-
the yields and fields personally. He
GM Mustard destroy Indias na- ity, GMOs are not fit even as ani-
terms the whole debate as a fraud
tive mustard, but it will unleash ir- mal feed, and can at best be used
and even today demands White Pa-
reversible damage to public health, for making biofuels, if that.
pers. He wants a CBI inquiry to un-
biodiversity and the rural oilseed We are a land of hard work-
cover which pro-GM scientists,
economy. ing small farmers, of fertile lands
bureaucrats and others are on the
So who is pushing GMOs in and biodiversity of seeds, we are
payroll of these corporations, so
India? Mahajan says, I know per- a civilisation of over 10,000 years,
they can be exposed as traitors.
sonally the Prime minister is not and we will not let our Bharat be
Interestingly, during my last
sold to a poison cartel for a fistful
involved, but there are people in meeting with Anil Madhav Dave
of euros or dollars. Every man,
the Niti Aayog and PMO who are at his residence on 12 May, he said
woman and child must resist, for
pushing this corporate agenda in he had not yet seen the GEAC
the colour of our Basant is at stake,
India. SJM has already at various clearance files but the news was
the soul of Bharat is at stake.
stages challenged the decision of already out in the media! The author is a freelance writer and environmental activist
these bureaucrats who are com- Chaudhary astutely points out working with organic farmers across India, and has written
extensively on GM crops. He was invited to represent Indian
mitting fraud with India and with that the central question which links farmers at the Monsanto Tribunal at The Hague in 2016,
the PM. They are the ones respon- the GM puzzle is: who gains max- and to brief Parliamentary Standing Committees on GM
and environmental issues. He can be reached at
sible for demanding GMO to pla- imum if GM Mustard is passed? indrashekharsingh1@gmail.com or @IndraSSingh
cate their foreign masters. The answer is: only Bayer and (Twitter)

21
FOCUS

Ancient Caste Harmony and Shoodras as


Rich Producers

Caste-Indifferent Equanimity of Ancient Bharat


The ancient vedic civilsation across the country had been devoid of any caste
discrimination, caste stratification or the evils like untouchability. The core tenet of
the ancient Hindu philosophy has been to perceive all living beings as the divine
manifestation of the Almighty. The caste discrimination and stratification that
erupted and perpetuated in the last millennium, under the evil influence of the
Arabic, Turk and other foreign invaders, followed by jehadi persecution and Brit-
ish colonial rule, has led to the worst social evil of untouchability in the country.
This evil had no place in the fabric of social life, prior to the advent of Arab
invasion in the 8th century. Scores of archeo-genetic studies based on the study of
gene pools of castes reveal that the current tradition of intra-caste marriages is
found to have existed only in last 60-70 generations across a span of last twelve
centuries. The genome studies indicate that the marriages were not confined with
castes around 1200 years ago. The study conducted at National Institute of Bio-
medical Genomics (NIBMG) in west Bengal (The Hindu, Dated January 27, 2016
Bangalore - Mohit M. Rao) and several other agencies, after having studied the
genes of various communities corroborate the fact that intermarrying was quite
common 1200 to 2000 years back among all castes. According to Analabha Basu,
assistant professor at NIBG and lead author of such a study is reported to assert
that the Iyer Brahmins of southern Indian state Tamilnadu and Irula tribals of
Nilgiri Hills have ancestral North Indian genes, but in varying degrees. According
to this study, the ancestries mingled in India until caste based endogamy (practice

The descendents of
the ancient Hindu
polity Hindus
should behave and
act as a seamless
cohesive caste like
true brethren and
sistren, says
Prof. Bhagwati
Prakash Sharma
22
Focus

of marrying within the caste) was derived from the word as should be in relatively lesser
introduced about 1600 years ago Kshudra {kqnz meaning mean peo- number, as they are dependent
[www.scidev.net/south-asia/ge- ple with menial occupations, de- upon the state exchequer for
nomics/news/tracing-the-indian- prived of dignity. It was not so in their livelihood. This system of
genome.html]. Most of the archeo- the ancient past. The nirukti (ety- production and trade had been
genetic studies reveal that endoga- mology) of the word shoodra in prevalent till the invasion of the
my was not in vogue in India in Brahminical auxillaries of Atharv Arabs and even beyond, till the
ancient past. The time from varies Veda speaks that Shudras are the turn of the eighteenth century,
form 1000-2000 years. But well producers of valuable goods by when the European goods under
within the era after the Mahabhar- the sweat of their labour. The British rule flooded to erode the
at period and lasted beyon Gupta nirukti (etymology) reads as under: Shoodras, the productive entrepre-
period. Endogamy has begun only Shramasya sveden utpadan rat neurial-class of India, engaged in
in last 1600 years. Thus intermar- ev shoodrah the decent ralised production of
riages inter se Brahmin, Kshatriya, JeL; Losnsu mRiknu jr ,o 'kwnz valuable goods. So, Bharat was a
Vaishya and Shoodra casters were Meaning in Hindi: vius Je ds very rich nation till all goods were
prevalent before 1600 years. This Losn ilhus ls ewY;oku oLrqvksa ds mRiknu produced indigenously by various
rules out the prevalence of any craft guilds of shoodras.
mRikndh; dk;Z esa jr ;k layXu oxZ dks
birth based caste system. Since, Brahmans were sup-
^kwnz* dgk x;k gSA
There had been no place for posed to study and teach, and to
Meaning in English: Those who
any ethnic or caste discrimination, produce various valuable goods by
social stratification of superiority- the sweat of their labour i.e. by their
inferiority of castes in the ancient physical efforts are termed as
Shudras are the
past in the country, before the ad-
vent of the 8th century. Rather, the
shoodras producers of
Thus, shoodras had been
Vedic scriptures, the Upanishads, producer class to produce all kind valuable goods
the tenets enshrined in the epics and
the sermons of Shrimad Bhagwat
of products, which can fetch a by the sweat of
price. This means that the shoo-
Gita, all instruct every individual to dras produced valuable products, their labour.
deal every living being with com- to be traded at a price with profit
passion, cohesiveness of divine fra-
by the Vaishya (oS ;) who then live on beggary with mendicany
ternity and the way, one wants to
used to pay tax to the king. In who had lived an impoverished
be treated himself or herself by
pursuance of this doctrine, the life, without collecting any person-
others. It is enshrined as Aatma-
Kamandak Neetisaar recom- al wealth. The Kshatriyas also had
vat Sar v Bhuteshu (vkReor
mends that while setting up a to protect the society from unjust
loZwrs"kq) in the upnishads and in the
new township uxj, the king attrocities. Kshatriya means Ks-
same way but in different words
should ensure that it is inhab- hatat rakshati iti Kshatriya ({krkr~
in various other major Hindu scrip-
ited by a larger number of j{kfr bfr {kf=;). Since, Shoodra
tures. It means every living being
Shoodras, who produce valu- Class used to produce goods to
be treated like himself or herself.
able products, and equally be traded at a price, had access to
Our scriptures do not allow con-
large number of Vaishyas who abundant wealth. Therefore, they
tempt towards any living being.
indulge in trading and com- had the responsibility to extend
Shoodras: The Producer merce of these goods, pro- hospitality to state guests in Mahab-
Class of Valuable Goods duced by Shoodras and so they harat era. The relevant verses of
One of the common and oft- pay higher amount of taxes Mahabharat is quoted in the suc-
repeated allegations on Hindu tra- from such a higher level of ceeding pages. Likewise, even the
ditions is that the Shoodras had trade. This Neetisaar emphat- measuring tape of Shoodras was
been treated contemptuously, alleg- ically states that number of gold embedded in pauranik era.
ing that shoodra word has been Brahmins and Kshatriyas Citation is given in later section.
23
Focus

Our Past Riches were from of terms in niruktas or nirvachans Brhaminical scriptures and technol-
the Economic Value Added and scriptural shlokas on produc- ogy driven skills of shoodras.
by Shoodras tion technologies have been the A representative example of
India had been the richest na- basis of production processes and collaborative knowledge sharing
tion on the planet, with around one techniques being undertaken by the and employment for production
third contribution in the world Shoodras in consultation with would help the readers to under-
GDP till the onset of the sixteenth Brhamans. Even the archeological stand the reciprocity of Shoodras
century. It was from the economic excavations being undertaken and Brahmins in technology based
value added by Shoodras as the across the country speak of well production which being the key to
producer of all kinds of goods, advanced production technologies. production in the country in joint
to be traded at a price. India had The archeological excavations un- collaboration and ongoing associ-
the system of decentralised pro- dertaken at Kodumanal in Tamil- ation between Brahmans, Braha-
duction of various goods of val- nadu have revealed production of minical scriptures and Shoodras. In
ue, with widest participation of the Iron & steel, textiles, gems (pro- this case the reciprocity of khaniks
Shoodras. So, India remained the cessing) etc 2500 years back by such (miners) dhatukarmis (metal smelt-
richest country of the world till the reciprocal dependence of the Brah- ers) and kanseras (metallurgical
turn of 18th Century. This has been mans and Shoodras (Comprising product producers) and Bhrah-
testified by Angus Madison, the Khaniks i.e. Miners & excavetors, mans especially gramnerians is be-
renowned British Economic histo- Paridravaks i.e. metallurgical blast- ing taken here. The niruktas give
rian in his book, entitled World ers & smelters, Luhars i.e. black- the etymology of the term yashad
Economic History - A millennium smiths etc). The rust proof Vitri- i.e. Zinc as Tamrah Yash Pra-
perspective, published by the fied crucibles found there, prove, dayate iti Yashadah rkez % ;k
OECD headquarters at Brussels, India had mastered vitrification pro- iznk;rs bfr ;kn%. It means Zinc is
capital of Belgium in Europe, cess, 2000 years back. Likewise, the one which gives credit to the cop-
wherein he has stated that India evidence has come to surface about per. This word-etymology of zinc
had 33 percent contribution in mining and production of Zinc at is based on metallurgical chemis-
world GDP in 1 AD, 30% in 1000 Zawar in Udaipur district and Cop- try used in the production of Zinc
AD, 25% in 1500 AD and 22% in per at Khetri in Alwar district of in the ancient times in 2000-3000
1700 AD. Europe, Russia, US, Latin Rajasthan about 4000-5000 years B.C. by the producers of zinc at
America, Japan and China had not back. These production processes Zawar etc. Since Zinc melts at
were a result of collaborative co- 8200C and oxidises at 9100C. To
been anywhere near India in their
operation between the Shoodras prevent oxidation the khaniks and
contribution to the world GDP, till
and Brahmins. It was an integral rec- Metal Producing Shoodras are said
the Shoodras had been the produc-
iprocity of scriptural intellect of to be covering the crucible by a
tive entrepreneurs of ancient
MSME (Micro, small and medium Table: 1

scale Industrial Enterprise) sector The position of India in the world economy since 0 AD till
(see Table: 1). 18th century GDP (PPP) in millions of dollars
Country/ Region 1 1000 1500 1600 1700
Collaborative Reciprocity of
Western Europe 14,433 10,925 44,183 65,602 81,213
Castes for Decentralised
Eastern Europe 1,956 2,600 6,696, 9,289, 11,393
Production
In fact, the ancient Indian sys- Russia 1,560 2,840 8,458 11,426 16,196
tem of production of all goods USA 272 520 800 600 527
was based upon highly advanced Total Latin America 2,240 4,560 7,288 3,763 6,346
wisdom and production technol- Japan 1,200 3,188 7,700 9,620 15,390
ogy, in diverse fields with recipro- China 26,820 26,550 61,800 96,000 82,800
cal interdependence of the Brah- India 33,750 33,750 60,500 74,250 90,750
mans and Shoodras. Indeed, the World 105,402 120,379 248,445 331,562 371,428
scriptural descriptions, etymology Source: World Economic History - a millennium perspective by Angus Maddison

24
Focus

Copper plate. Thus, this knowledge MSME entrepreneurs in that era, Brhma rajanyabhyam Sudraya
was codified by Brahmans and ap- most of the Vaastu Granth and cha Aryaya ch Svya-charanaya
plied by Shoodras, which constitut- several Puranas state that in the ha priyo devanam ...
ed a major basis of Indias riches, ancient past the measuring tape for (Yajuraved Ch. 26 (2))
as India was the only producer and construction of housing unit of It means that Just as I am
exporter of Zinc in the world till Shudras was embedded with gold- speaking these blessed words of
the medieval period. Basically, the en fabric. A shloka from Vish- Vedas to you people (rishis), you
ancient wisdom enshrined in Indi- wakarma Prakash reads as under: should teach these to all the men
an scriptures compiled by Brah- Brahmanasya sutra darbhajam and women, the Brahminas, Ksh-
mans was applied in production maanjanta ta kshtiriyasya. triyas, Vishayas. Shudras, tribes and
technology by the Shoodras. There- karpasiam cha bhavedvaishy- all others irrespective of they be-
by, in the ancient times, the Shoo- am svarnirmitam shoodraya ing our own people or aliens. The
dras, who used to produce all kinds sootram. words Shoodra and Aranyay i.e.
of goods were the richest commu- (Vishwakarma Prakash) forest dwellers are there.
nity till 700 CE. Another example czk.kL; lw= nHkZta]
to elucidate, how changing dynam- ekStUrq r {kf=;L;A During
ics of occupations with time has led dkikZla p HkoS}S';s]
to ups and downs among the rela- Lo.kZfufeZra 'kwnzL; lw=e~AA Mahabharat, one
tive affluence of castes over a broad foodekZ izdkk
It means that the house mea-
of the major role
span of time. The example is of
the Banjara Community. suring tape or the lining and siz- for Shudras has
ing thread of Brahmins was of
Prosperity of Shoodras in Kusha or Darbh category grass, been stated to
the Ancient Past
Coming back to the past life
for Kshatriya it was made of provide hospitality,
Munj category grass. For
of the Shoodras in ancient times Vaishya it used to be a cotton including lodging
Shoodras must have been a very
rich class by virtue of their engage-
thread and for Shudra it was a
gold embedded or golden
and boarding to the
ment in producing various goods thread in that era. state guests.
of high value. Therefore in the
Mahabharat era, the shudras had Study of Vedas was well Ac-
Nondiscriminatory Access
probably been so affluent people cessible to Shoodras and
to sources of water and
in the country to be given the re- Tribes
Food for All
sponsibility for extending hospital- There is lot of misgivings
In the ancient past, all Hindus
ity to the state guests. about the access of Vedas to Shu-
had access to places of water and
In the Anushasan Parv of the dras, which is not true. The Ya-
food, without any discrimination.
Mahabharat, one of the major role jurveda in its chapter 26 mantra 2
This ancient practice of non-discrim-
for Shudras has been stated to pro- clearly states that Rishis to teach
Veda to all the four Varnas. The ination and uniform access to all as
vide hospitality, including lodging
mantra reads as under: enshrined in the vedic hymns must
and boarding to the state guests.
The Shloka reads as under: ^^;Fkseka okpa dY;k.khekonkfu have perpetuated till the early medi-
Sashoodrah sanshit tapa tusH;%A eval period, as is evident from the
jitendriyah. sushrodshutrithim czjktU;kT;k 'kwnzk;pk;kZ; p Ramcharit Manas of Tulsidasji au-
tapah sanchinute mahat Lok; pkj.;k;A thored in 1574 CE i.e. Vikram Sam-
(Mahabharat at Anushasanparv) fiz;ks nsokuka nf{k.kk;S nkrqfjg vat 1631. Thus, even 442 years back
lkwnz% lafkrrik ftrsfUnz;%A Hkw;kle;Tes dke% le`)rkeqieknks when Tulsidasji composed Ram-
lqJqfrZfFka ri% lafpuqrs egr~AA uerq A A** charit Manas, he had stated that Ra-
egkHkkjr&vuqkklu ioZ ;tqosZn v- 26 ea= 2 jghaat on the Sarayu river of Ay-
To corroborate this fact of Yathemam vacham kalyanim odhya was equally accessible for
hyper affluence of Shudras as adadami Janebhya; water to all the four Varnas i.e. all
25
Focus

castes. This Choupai reads as under: esa rqe iztktu tqMs+ gq, gksA tSls ifg;s the modus operandi of any craft,
Raajghat bandheu param ds vjs ukfHk dsUnz esa pkjksa vksj tqM+s gksrs trade, commerce or business
manohar. Tanha nimajjiu. gSa] oSls gh rqe lc iztktu feydj Kku changes and how it brings change
varan chaariu nar. :i izHkq dh iwtk djksA in the wealth and well being of any
(Ramcharit Manas Uttar Kaand) Likewise all persons should group or community, can be best
jkt ?kkV cka/ks ije euksgjA treat each other as brother & sisters. understood from the rise and de-
rgk fuefTtm oj.k pkfjm ujAA ek Hkzkrk Hkzkrje~ f}{ku ek Lolj cline of economic status of the
jkepfjr ekul mkj dk.M eqr LolkA Banjara community in India. Even,
Likewise, Atharva Veda also lE;kkapk lozrk HkwRok okpa onr the Roma People spread across
clearly directs all the people i.e. Hknzk;kAA the globe who have also, probably
human beings, indifferent of their ma bhrata bhrataram dwiks- descended from the mobile com-
castes or varnas to have equal ac- han ma swasara muta swasa. merce of Banjara community of
cess to water and food together Samyanchah savrata bhutva India have suffered. It can well
through its shlok 3.30.06 vacham vadata bhadraya. explain the economic rise and de-
Samani prapa saha voannab- Let not a brother hate a broth- cline of people engaged in any craft
hagha samane yoktre saha vo er, nor a sister hate a sister; or business. Even the Gadia Lu-
yunajmi unanimous, united in aims, hars (Blacksmiths moving on the
speak your words with friend- carts i.e. bullock carts) of Rajast-
Banjara being a liness. han too had been quite affluent 5-
Thus our tradition, before the 6 decades earlier. But now with the
evolved from sanskrit foreign invasions, which began advent of modern technology in
word Vanijyara from 8th century, had been of egal- making Iron implements, they are
itarian and benevolent equanimity getting marginalised. Let us now
okf.kT;kjk meaning and parity to all. In this regard the take the example of Banjaras.
the one dealing in most common Mantra from Up- The term Banjara has evolved
Commerce i.e. those nishad reads for bliss for all, healthy from sanskrit word Vanijyara
life to all and emancipation from okf.kT;kjk meaning the one deal-
dealing in cross all sorrows. It reads as under: ing in Commerce i.e. those deal-
boarder trade and Sarveutra sukhinah santu ing in cross boarder trade and ac-
sarve santu niramayah. sarve tivities associated with trade. Ban-
activities associated bhadrani Pashyantu ma jaras had been the most affluent
with trade. kashchid dakhbhagbhavet class in part, whose hundies had
losZ= lqf[ku% lUrq losZ lUrq been quite popular. Till the advent
Samyachognim saparyataara fujke;k%A losZ Hkkf.k i;Urq ek of European traders, Banjaras had
naabhimivabhitah ... Athar- dfpn~ nq%[kHkkXHkosrAA been very active to undertake the
vved 3.30.06 It means May every being trade on the back of the herds of
It means: Let the source and be happy on the earth May ev- vast number of bullocks. They
place of your drinking water be ery being be free from all the were hyperactive even before the
the same, let your food be taken diseases and deprivations, May advent of Arab traders. On ac-
together, let your yoke to be the every being should give a be- count of their pre-dominance in
same united like spokes of the cart nign response to every other understanding cross boarder trade
wheels and you all peole worship being. May there not be any and commerce with vast herds of
of god as a symbol of knowledge. trace of sorrow anywhere and bullocks and ships with up to 100
lekuh izik lgoksUuHkkx% lekus let the bliss prevail everywhere. oars (called Shataritra in Rigved)
;ksD=s lgoks ;qufTeA from far east to far west, they had
lE;aps%fXua li;Z rkjk ukfHkfedkfHkr%AA Example of Rise and De- spread across the globe in past. The
vFkoZ- 3-30-06 cline of Castes: The Banjara Rigved mentions for cross board-
HkkokFkZ % rqEgkjh ty 'kkyk ,d gks] vUu Community er trade through Shataritra (Shat
,oa Hkkstu Hkh lkFk&lkFk gks] ,d gh tq, With the change in time, how means hundred and Aritra means
26
Focus

Oars in Sanskrit language). Their commerce. In the later age, they legendary tales.
trade being based, predominantly might have settled, wherever they
Need to Restore Ancient
on the back of herds of bullocks. were engaged in trade before the
Equanimity or and Decentr-
Very vast sized lakes, probably new mode of international com-
alised Production
made by them for their herds of merce took over.
Now, to restore the same
bullocks (for drinking water) are Common Gene Pool A re-
equanimity, samarasata lejlrk
found all over from South East cent study published in 2010 has
and divinity of every soul, as
Asia to Europe. For instance, the also drawn a conclusion that Ro-
preached by our ancient scriptures,
lake Pichhola of Udaipur, Lake mani populations i.e. Romas have
there should be perfect equality in
Banjari of Ajmer and so on. Their a high frequency of a particular Y
our behaviour towards each other
role and ancient affluence is well chromosome and mitochondrial
as true brethren and sistren.
depicted in several folk tales and DNA that are only found popu-
lations from South Asia. So it may India is home to one sixth of
folk dances. For instance, the
now be well accepted that the global humanity and an ancient
Gauri or Gawari an annual spir-
Roma people must have migrat- nation, and rather with ever-per-
itual dance-drama or ballet of the
ed to Europe from North India petuating nation-hood since time
Bhil tribe played for fornight and
about 1,500 years ago as travel- immemorial, where every living
across the 15 days based on his-
ling traders. Broad groups of all being is seen as the divine mani-
toric evolution portrays Banjara as
such people, settled across the festation of the Almighty.
the richest category above the king
globe are collectively classified as The caste stratification and
and najarsch. They were the mo-
Roma or Roma Gypsy. discrimination as a transient evil
bile cross boarder traders known
Throughout the Europe and the should have no place, when we
for trading from South - East
US, the Romani people comprise have done away with the untouch-
Asia to Iran and beyond, even up
ethnic groups who are spread out ability. In light of this now there
to Europe and (may be even up
all over the world, having com- should be no caste discrimination
to America) through their herds
mon ties and traits. These groups in any form and all Bhartiya citi-
of vast number of bullocks and
of Roma are referred to as Ro- zens should behave with each oth-
large boats.
manichals in England, Beyash in er with total egalitarian equanimity
Today, with the advent of
Croatia, the Kale of Wales and and parity, to build a strong and
new era trade and commerce to
Finland, Romanlar in Turkey and Samras Bharat, based upon caste-
which probably they could not
Domari in the Palestine and less and a cohesive cooperation.
adapt, they are now listed in the cat-
Egypt. When the Indian or Hindu Philos-
egory of Scheduled castes, tribes and
As per the age-old conven- ophy asserts that the same divine
other backward castes in different
tion, necessitated by the nature of Almighty is pervading across all liv-
states. No one knows, they could
their occupation, the Romanis were ing beings, how an individual can
be part of the vaishya community
continuously on the move to cross be untouchable or superior or in-
undertaking the trade and com-
border trade conduct with a no- ferior on the basis of his birth. Why
merce since time immemorial.
madic lifestyle and a highly insular this evil practice should have any
Romas: The Descendants of culture. Because of their outsider place in our social life?
the Banjara styled Trading status across the globe at most of All Bhartiya or the Indians the
Class the places and migratory nature for descendents of the ancient Hindu
It would not be out of place cross-boarder trade across the polity Hindus should behave and
to mention that the 11 million (1.1 globe, few used to attend school act as a seamless cohesive caste like
crore) Roma, Romani or the and consequently in the later age lit- true brethren and sistren. Besides,
Roma Gypsies (i.e. travelers) may eracy was not widespread among we should also revive the decentr-
be in all possibility the descendents them. Much of what is known alised production of goods and
of these ancient globe trotters, about their culture has come through services for inclusive growth, sus-
travelling to undertake cross board- stories told by singers and oral his- tainable development and full em-
er trade and commerce i.e. mobile- tories which are replete with Indian ployment.

27
Agriculture

Farm Protest Rages Across India

Farmers anger is spilling over. The violent agitation that erupted in the Malwa
belt of Madhya Pradesh, resulting in the death of five farmers in police firing, has
now spread to Punjab, Haryana, Rajasthan, Gujarat and Chhattisgarh. The de-
mand for farm loan waiver, accompanied by higher crop prices, is now gaining
momentum. More than 3.18 lakh farmers have committed suicide in the past 21
years. Every 41 minutes a farmer commits suicide in the country. While I agree
that farmer suicides are a symptom of a bigger malaise that afflicts agriculture,
policymakers have failed to take the massive death toll as a sign of terrible eco-
nomic depravity that plagued the rural landscape. How long could we expect
farmers to take the hit silently? It had to happen one day, and no one knew what
will trigger it.
For nearly three decades, more so after the economic reforms were ushered
in, agriculture has been a victim of neglect and apathy. Following the World Banks
prescription of moving 400 million people from the rural to the urban areas by
the year 2015, successive governments deliberately created conditions to turn farm-
ing unviable, thereby forcing an increasing number of farmers to abandon agri-
culture and migrate to cities. To keep food inflation under control, farmers have
been routinely paid less, not even to cover the cost of production, thereby driving
them against the wall.
With each passing year, the crisis worsened. The 2016 Economic Survey tells
us that the average annual income of a farming family in 17 states, roughly half
the country, is a mere Rs 20,000 or less than Rs 1,700 a month. Such a dismal
income, merely enough for subsistence, was the outcome of economic policies

Public sector
investments must
be directed for
constructing
Agricultural
Produce Marketing
Committee mandis
and also for storage
godowns, says
Devinder Sharma

28
Agriculture

over the years. I shudder to think Holistic approach


how these farming families must The MSP should be Loan waiver must be fol-
be surviving all these years. After structured to factor in lowed by policies that ensure loans
all, it is not even possible to rear a dont pile up again. A tinkering
cow in less than Rs 1,700 a month. four allowances being here and there is not going to ad-
But I doubt if such details paid to farmers dress the crisis. It needs a holistic
mean anything to mainline econo- approach and a paradigm shift in
mists and policymakers. With the
house allowance, economic thinking.
markets crashing after every har- medical allowance, To begin with: The effort should
vest, and with the government re- educational allowance be to make farming economically
luctant to save farmers by ensur- viable.
ing that they get at least the Mini- & travel allowance. The Commission for Agricul-
mum Support Price (MSP), farm- tural Costs and Prices, which works
ers are pushed deeper and deeper to farmers for their produce. To out the MSP for crops, should be
into a never-ending cycle of debt. keep food inflation under control, directed to factor in four allow-
Even the MSP is often less than the it is the farmers who have paid the ances being paid to farmers
cost of production. In Maharash- price. In reality, it is the farmers house allowance, medical allow-
tra, the production cost of tur dal who have been subsidising the na- ance, educational allowance and
has been worked out at Rs 6,240 tion all these years. Successive gov- travel allowance. So far, MSP only
per quintal. The MSP was Rs 5,050 ernments have therefore deliberate- covers the cost of production.
per quintal, but the price at which ly kept agriculture impoverished. Government employees get a to-
farmers were able to sell tur, and An estimated 58% of the farmers tal of 108 allowances.
that too after waiting for nearly a go to bed hungry every night. Since MSP benefits only 6%
week in the mandis, was between After Uttar Pradesh Chief of the farmers, it needs to be un-
Rs 3,500 and Rs 4,200 per quintal. Minister Yogi Adityanath an- derstood that the demand for pro-
Take another case. A farmer nounced a farm loan waiver worth viding 50% profit over MSP will
in Haryana toils hard for three Rs 36,359 crore, which will bene- benefit only these 6% farmers. For
months, putting all his labour to fit 92 lakh small and marginal the remaining, who are dependent
reap a bountiful harvest of potato farmers, Maharashtra announced a on the exploitative markets, the
only to find the prices crashing, loan waiver worth Rs 30,500 crore. need is to set up a National Farm-
thereby forcing him to sell 40 quin- Punjab is expected to take over at ers Income Commission, with the
tals of potato for just 9 paise a kg. least Rs 30,000 crore of the bad mandate to provide a minimum
The shock often turns fatal. But the loans. Though I am not in favour assured monthly income package
fact remains that the government of loan waivers but in a deplor- of Rs 18,000 per farmer family.
has rarely come to his rescue. Com- able situation that agriculture has Public sector investments
pare this with the fall in stock mar- been pushed into, a waiver is a must come in urgently for con-
kets, and the finance minister short-term relief. structing Agricultural Produce
promises to monitor the crisis on It is an emergency measure to Marketing Committee mandis and
an hourly basis, holding a press bail out millions of small and mar- also for storage godowns. At
conference to assuage the investors. ginal farmers in distress. Indi- present, there are only 7,700 APMC
Have we ever seen the finance min- aSpend estimates a total of Rs 3.1 mandis. What India needs is 42,000
ister or the agriculture minister lakh crore of farm loan that needs mandis for every 5 km radius. And
monitoring the deplorable condi- to be waived. This is still far less like in Brazil, where it is mandato-
tion when farm prices crash? than the Rs 4 lakh crore bailout ry for a market yard to procure
The poor farmer has been left package that the telecom industry anything a farmer brings, APMC
to live in indebtedness, which alone is seeking. Another Rs 1.7 mandis should be equipped to do
keeps multiplying with every pass- lakh crore of bad debt is what the the same.
ing year. The crisis is compounded steel industry hopes will be writ- (The writer is a commentator on issues relating to farmers
by the denial of a rightful income ten off. and agriculture)

29
AN AL
ANAL YSIS
ALY

Current conflict is essentially between


Global and Local

The western world view has dom-


inated for the last 200 or so years
and hence their idea of modern
man is accepted as the idea. It is
supposed to transcend territories
and cultures. It assumes that one
size fits all and enunciates one
model works for all. In many sem-
inars I am asked by foreigners
about India becoming Europe or
USA after a few decades and how
it will impact Indian values. Basi-
cally it is assumed that the whole
world needs to have or follow one
model since all humans are same
rational animals. The main Abra-
hamic faiths like Christianity and Islam evolved out of this belief. So they went
around conquering the world to fashion it in their own mirror image. The Marx-
ian model also believes the same.
The concept of sovereignty evolved as Westphalian consensus in 1548 after
the thirty Years War, in which the major continental European states the Holy
Roman Empire, Spain, France, Sweden and the Dutch Republic agreed to
respect one anothers territorial integrity. This obviously did not include later col-
onies. Christianity and Islam wanted to spread all over the world by sword or
colonies or deceit. Both wanted to be global religions.
Hence there was a fierce battle between these globalisers for converting
Differences between people to their way. There is the idea of my way or Highway. The colonization
Globalisers be it project was justified since it was to civilize the world and converting faith/
corporate or religion of people was encouraged in the name of freedom to choose. Of
Radical Islam or course that freedom should be exercised to choose the desert faiths. Some times
evangelists and with swords sometimes with subterfuge and inducement.
localisers both From the Church evolved the modern corporations which in the Post
right wing and Left 2nd world war wanted to be global and institutions like IMF and World Bank
wing are the were created to facilitate the process. These institutions reinforced the theory of
one size fits all. Modern Globalization project got accelerated in the seventies by
essential conflicts
multinational corporations tried to formulate theories which are applicable to all
for the betterment
societies with perhaps some local variation as a concession.
of a country, says Ernst Kantorowicz, in his well-argued and celebrated essay 'The Kings Two
Prof. R. Bodies: A study in Medieval Political Theology', analyses how the mystical body of Christ,
Vaidyanathan which is central to Christian liturgy, acquired sociological meaning in the later
30
Analysis

middle Ages. The corpus mysticum The poor segments when they be- research and training.
became the organized body of come rich behave exactly similar to Within this so called left wing
Christian society and created, in the current rich people. That as- and right wing have evolved. Both
due course, the greatest of artifi- sumption helps in forecasting in- are homogenizers. One is state
cial persons, namely, the state. come and consumption growth. based and other is big corporate
Out of this modular structure or Societies were expected to or so called market based. But
building block, Western capitalism behave as per model rather than of late left wing has got twisted
emerged, along with other fiction- modeling societal behavior. due to being politically rightit be-
al entities such as the `Joint Stock Wounded civilizations like In- came friendly to Radical Islam and
Company and `public corpora- dia suffered a double whammy. Its also to other modernities like
tion (Princeton, 1957). youngsters were taught about the LGBTQ groups. Interestingly so-
Hence, it is a medieval Chris- superiority of the Renaissance ra- viet model of Stalin shunned these
tian Anglo-Saxon construct that says tionality and they began to fully categories.
that corporations are more evolved imitate the homogenous model. The Globalisers also created
forms than, say, joint families or Most got educated in Western categories like economically con-
cooperatives or trusts. One is not Universities and this helped a lot servatives but socially liberal or
sure why India should continue to for the globalisers. socially conservative but econom-
accept this European medieval evo- Hence we have Christian glo- ically Liberal but all within their
lution, which was essential for co- balisers/Islamic globalisers/Multi- framework of homogenizing.
lonial conquests, driven by joint Also the Christian leaders would
stock companies such as the East accept Islamic Contribution and
India Company, which considered
Societies were nothing more than that.
India unorganized and went about expected to For instance Obama claimed
organizing it, with results known to in Cairo (June, 2009) that algebra,
us. So Church handed over idea of behave as per the decimal system and printing
globalization to corporate. technology were the inventions of
In these days of political cor-
model rather than the land of sands[Arabia] when
rectness, perhaps the so-called un- modeling societal these accomplishments owe as
organized sector can be termed much to India and China.
corporate challenged, while cor- behavior. Assertion of the Average:
porates themselves are disclosure- But the Globalisers are on retreat.
and transparency-challenged. national corporate/Marxists. All One is the conflict or rather war
They even propounded an using the premise of a global man waged by Radical Islam which
idea of glocal. This is mainly and one size fits all. All of them would like to establish a Caliphate
global models but will try to take can be called homogenizers. in Europe. Church is in retreat in
into account local sensibilities. Among them Marxists are on the Europe since many are becoming
Whether it is market efficiency or retreat after the fall of Berlin Wall. agnostic. Modern versions of
asset valuation every human being But there is a problem. All Church getting active-in the form
in the world should behave as per these Homogenizers are run by a of Evangelicals like Pentecostal
western models. If not there is a clique or elites who look down etc. Post economic crisis of 2008
problem with that person or upon masses with contempt. Why the big corporates are on the re-
group. They were to be identified so? Because they are confident that treat. The average school educat-
as deviation from norm. they have the solutions available in ed person is unhappy and angry.
The entire edifice of modern their books or models. The mod- He is unhappy about unemploy-
economics/Finance assumes mar- ern corporations have modeled ment which is running high in G-7
ket to solve all problems since all academic institutions to suit their countriesmore so in Europe. He
men are rationalin the western requirements. Recruitment/pro- is angry about mass migration and
sense- and profit maximizers. They motion etc. are dependent on re- what he perceives as Islamic inva-
have homogenous expectations etc. inforcing the belief system through sion of Europe and even USA.
31
Analysis

EU which is one of the earliest tacks, Lewis Atiyyatullah, who nies. Most of these companies have
Project Europe to bring together claims to represent the terrorist net- moved their profits to other Tax
globalization within Europe is work Al-Qaeda, declared that the Havens.
under threat. The rural/school only international system built up by the A simple method of trade
educated/unwashed in Britain re- West since the Treaty of Westphalia mis-invoicing by global companies
jected the rule from Brussels. The will collapse; and a new international using tax-havens have impacted
Sophisticated elite of London system will rise under the leadership developing countries nearly 730Bil-
wanted to be in EU. In France and of a mighty Islamic state. lion USD in 2012 says Global Fi-
Italy similar situation is developing. The spread of ISIS across nancial integrity. There is an increas-
In the USA the assertion of aver- countries and activities of Boko ing clamour in USA and EU about
age was extra-ordinary. All elites Haram based in Nigeria in Kenya closing down these tax havens.
and financial system supported and Chad re-emphasis this point. Most of Americas largest
Hillary but she was defeated by Radical Islam does not accept ter- corporations maintain subsidiaries
again school only educated/poor ritorial boundaries since it works in offshore tax havens. At least 358
segments. for a global regime for global companies, nearly 72 percent of
Globalization crowd is desper- Ummah. The talk about Caliphate the Fortune 500, operate subsid-
ate. Davos meet this year had of all indicates that they are trans-border iaries in tax haven jurisdictions
persons Chinese President Xi and he organizations. All told, these 358 companies
was requested to lead globaliza- On the other side we find maintain at least 7,622 tax ha-
tion. One can imagine the level of ven subsidiaries.
desperation of the Davos crowd. The thirty companies with the
Homogenization/one size fits all
Radical Islam most money officially booked
and Western model is THE mod- considers that the offshore for tax purposes col-
el is the major mantras of globa- lectively operate 1,225 tax ha-
lisers. Radical Islam says the same world order based ven subsidiaries.
thing except using its own book. Fortune 500 companies cur-
Tony Blair the then Prime
on Westphalian rently hold more than $2.1 trillion
Minister of UK in his famous Chi- consensus will in accumulated profits offshore
cago Address -1999-suggests: for tax purposes. Just thirty For-
The most pressing foreign collapse. tune 500 companies account for 65
policy problem we face is to iden- percent of these offshore profits.
tify the circumstances in which we global corporations transcending These thirty companies with the
should get actively involved in other sovereignty in search of global most money offshore have
peoples conflicts. Non -interfer- profits. For this they use tax havens booked $1.4 trillion overseas for
ence has long been considered an as a tool. Tax havensnumbering tax purposes. Only fifty-seven For-
important principle of internation- more than 70 jurisdictionsfacili- tune 500 companies disclose what
al order. But the principle of tate bank facilities with zero taxes they would expect to pay in U.S.
non-interference must be qualified and no-disclosure of the names taxes if these profits were not of-
in important respects. The and in many cases anonymous ficially booked offshore. In total,
NATO intervention in Kosovo trusts holding accounts on behalf these fifty-seven companies would
and Afghanistan as well as US in- of beneficiary. In the case of Ba- owe $184.4 billion in additional
tervention in Iraq provide recent hamas one building seems to have federal taxes. Based on these fifty-
examples of breakdown of idea had tens of thousands of compa- seven corporations public disclo-
of Westphalia. nies registered there. sures, the average tax rate that they
Interestingly Radical Islam USA is literally waging war have collectively paid to foreign
also considers that the world or- with major Giants like Amazon/ countries on these profits is a mere
der based on Westphalian consen- Google/Microsoft etc. for not 6 percent, indicating that a large
sus will collapse. In the aftermath paying adequate taxes in USA in portion of this offshore money has
of the 11 March 2004 Madrid at- spite of being US based compa- been booked in tax havens. If we
32
Analysis

apply that average tax rate of 6 form EU group. Anyhow Brit- Obama was about large US com-
percent to the entirety of Fortune ain and labour force of Britain panies like Google/Amazon/Mi-
500 companies, they would collec- overwhelmingly voted for going crosoft etc. not paying adequate
tively owe $ 620 billion in addi- out of EU which is perceived as a taxes in the USA but showing large
tional federal taxes. Globalizing menace profits in Tax havens like Cayman
Some of the worst offend- Le Pen in France wants to Islands.
ers include: Apple/Nike/American come out of EU since it is impact- Large portions of left in Eu-
Express/PepsiCo/Pfizer/Morgan ing Frenchcharacteristics. She is rope are split regarding its attitude
Stanley/Citi Group/Wall Mart/ considered extreme right by the to Radical Islam. One segment ar-
Bank of America/Google/Mi- main stream media in France. She guing for total understanding of
crosoft/Goldman Sachs etc. wants France to come out of EU; Islam while another segment want-
So Globalisation is stuck opposed to Radical Islam; op- ing to uphold traditional values of
between Tax havens and Ter- posed to immigrants and against Europe on women issues, on
rorists. large French Govt. Interestingly Homo-sexuality and contraception.
The middle class in UK re- one of her opponent Melonchon This single model groups are
volted against EU seamless bor- who is considered as left extreme being opposed by smaller national
ders and trade and in US the vic- also wants to re-negotiate EU and and Community sovereignty
tory of Trump is a big blow to groups. For instance in Britain
Globalisers. He is unenthusiastic Currently, the USA poorer rural segments /less edu-
about Davos. The rise of Le Pen cated segments and working class
in France and Geert Wilders in Hol- has divided with segments voted for BREXIT since
land represent back to national sov- respect to Russia. all of them felt big Government
ereignty. Le Pen recently said in at Brussels is trampling on their
Koblenz nation state is back. The Trump sovereignty. Similarly School edu-
In this, the traditional division cated/older aged/less income seg-
of Left and right has lost its mean-
supporters viewing ments supported Trump. Both cas-
ing. In BREXIT we saw left sup- Russia favorably es it is against globalization and
porting EU and part of right op- large corporate.
posing it. Now, the new divisions
while as Democrats Similarly one witnesses raise
are Globalisers versus Nation states are upset with of such political forces in Hol-
both from left and right. land/France/ Italy and Germany.
There was an agitation by Russia. All these will have far reaching
supporters of Gorbyn the rabid impact in the coming year due to
left wing leader of Labour party possibly pull out. He is also against elections in France and Germany.
in UK against the most venerable large central French Govt. and sur- Hence today the world is di-
left wing intellectualism personified prisingly not for the veil for the vided between Globalisers be it
New Statesman women!! Both Extreme right and corporate or Radical Islam or
[http://www.huffingtonpost.co.uk/entry/ Left are against large global cor- evangelists and localisers both
new-statesman-protest-jeremy-corbyn-
porations and Globalization by the right wing and Left wing. Global-
momentum_uk_58e73c75e4b058f0a02dd696]
Davos crowd. isiers wants homogeneity all wear
Actually this extreme left- In the USA the divisions are Jeans and all drink Coke or all
winger Corbyn opposed BREX- becoming interesting with large women have Burqa and all men
IT and wanted Britain to be in EU. number of Trump supporters pray 5 times. Localisers want vari-
While as the conservatives in viewing Russia favorably while as ety and pluralism. Respect for lo-
large numbers supported Brexit Democrats are upset with Russia. cal tradition and customs and rec-
and from that point the calling of Trump supporters view Russia as ognition of small businesses.
referendum by Cameron was even a good ally against radical Islam. Prof R. Vaidyanathan; Cho. S Ramaswamy Visiting
questioned. Corbyn was supposed Not that Russia is any more so- Chair Professor of Public Policy SASTRA
to be part of Remain and Re- University; Professor IIMB[Rtd]
cialist. Trump is as unhappy as
33
NEWS
Nestle, Reliance milk powder Stent prices: Firms, hospitals,
has chemicals doctors got away with looting
Tamil Nadu Dairy Development Minister K.T. The Modi governments efforts to cap the price
Rajenthra Bhalaji on Tuesday alleged that the milk pow- of cardiac stents exposed the nexus between stent com-
der supplied by Nestle and Reliance in the State con- panies and hospitals in looting the public by overcharg-
tained chemicals like caustic soda and bleaching pow- ing them. But no action has been taken against either
der that were silent killers. Mr. Bhalaji claimed that companies or hospitals. None of them paid penalties
adulterated milk supplied by private companies in Tamil
Nadu could cause several diseases, including cancer.
On June 27, 2017, he said such adulterated prod-
ucts could cause problems in the kidney, liver and heart,
besides leading to ulcers and diabetes.
After the private companies condemned him for
his earlier statement as he could not provide any proof,
the Minister convened a press conference on Tuesday
to allege that Nestle and Reliance were supplying milk
powder containing chemicals. Asked if both brands
would be banned in the State, Mr. Bhalaji said he would
consult the Chief Minister and Health Secretary, and or faced charges for colluding to cheat the public. Con-
efforts would be taken to ban the products. trast this with the US government which has, over the
When we tested samples at the Aavin laborato- years, fined the three biggest stent companies, Abbott,
ry in Madhavaram, no one believed us. We sent the Medtronic and Boston Scientific, millions of dollars
samples to the Pune lab, which refused to test our for charges ranging from bribing doctors to use their
samples but leaked information to the media. There- products to hiding defects in their device.
fore, we have indirectly tested the samples in a Cen- Yet, on the eve of PM Modis visit to the US,
tral government-certified lab in Chennai, the Minis- lawmakers in that country supported these compa-
nies by urging India to reconsider its decision to cap
stent prices. This is despite the fact that before the price
cap, India was paying among the highest prices for stents
globally, even higher than in the US. Not only have
stent companies been forced to cough up millions, the
US department of justice (DoJ) also cracked down on
more than 500 hospitals and reached settlements
amounting to about $300 million on charges of inap-
propriate implantation of cardioverter defibrillators and
stents. Several cardiologists too have been fined and
jailed for their role in such improper treatment.
ter said. He then released copies of the test report According to the US DoJ website, the depart-
from Chennai Mettex Lab, Guindy, on the dairy ment has recovered more than $16.4 billion in cases
whitener of Nestle and Reliance. involving fraud against federal health care programmes
Asked whether more such adulterated products since January 2009. The US attorney stated that physi-
were being distributed, Mr. Balaji said the results of a cians should be making decisions on medical devices
few more samples were yet to come, and whenever based on what is in the best interest of patients with-
he had information about adulterated products, he out being induced by payments from manufacturers
would share the details. As there are legal loopholes, competing for their business.
the companies could pay fines and get away with it. In the US, the price of a drug eluting stent (DES)
Im informing the media to create awareness and to ranges from Rs 62,000 ($950) to Rs 78,000 ($1,200).
warn people, he said. (http://www.thehindu.com/) Before price control, hospitals in India were charging
34
News
almost twice as much with prices typically ranging
from Rs 65,000 to Rs 1.7 lakh. In the case of bioab-
sorbable stents, the US paid about $100 to $200 more
than the price of the most expensive DES, or rough-
ly $1,200$1,500. In India, patients were charged Rs
1.9 lakh (over $2,900) for Abbots bioabsorbable stent.
By printing highly inflated maximum retail pric-
es, stent companies in India helped hospitals make
huge margins by charging double or even triple the
cost at which they procured stents. The hospitals in
turn turned a blind eye to cardiologists known for
very high rates of stenting as it brought in huge reve- will badly hit small businesses and push Chinese im-
nue for them. Some hospitals in India have been lik- ports. As the date of implementation of GST is ap-
ened to stenting factories, implanting several hundred proaching, the heartbeats of small entrepreneurs and
stents each month. There has been no medical audit traders are increasing, Swadeshi Jagran Manch Na-
of angioplasties and other cardiac procedures done tional co-convener Ashwani Mahajan said. He claimed
by these hospitals despite senior cardiologists seeking that there was exemption on excise duty for produc-
such an audit of the 900-plus cath labs and suggest- tion of up to Rs 1.5 crore for small scale industries.
ing that well over a quarter of the stenting done in But now, according to the provisions of GST,
India could be unnecessary. any entity whose business is above or equal to Rs 20
The huge recoveries in the US have been made lakh must register itself for GST in the state where it
possible chiefly through the False Claims Act, which carries its business, Mahajan told PTI.
permits recovery of funds from anyone who know- Small scale and cottage industries which are la-
ingly presents or causes to be presented a fraudulent bour intensive will be severely hit by this law, as many
claim for payment to the government. Other laws of them are in the higher tax bracket, he said. With
used include the Stark law, which prohibits the prac- the negative impact on these small industries, people
tice of physicians referring patients to medical facili- in rural areas will lose jobs and at the same time im-
ties in which they have a pecuniary interest. The Anti- ports of Chinese products will jump due to a slump
kickback Statute prohibits anyone from offering, pay- in domestic production, Mahajan claimed.
ing, soliciting, or receiving remuneration in cash or The government has said the Goods and Ser-
kind to induce or reward referrals or generate busi- vice Tax (GST) could add two percentage points to
ness for any entity participating in a federal programme. economic growth. It is termed as Indias most ambi-
The penalties under each of these laws can be tious tax reform, creates a single economic zone with
crippling and in extreme cases those responsible could common indirect taxes. There will be four tax slabs -
face criminal charges. Using these three laws, the Health 5, 12, 18 and 28 per cent. The new tax regime will be
Care Fraud Prevention and Enforcement Action Team launched at midnight on June 30 in the Central Hall
(HEAT), a special team constituted by the US gov- of Parliament. (http://www.businesstoday.in)
ernment in 2009, has recovered billions of dollars and
booked offenders. However, in India, the govern- Agriculture ministry rendered
ment has not cracked down or recovered the money hollow the plant trait patents of
on behalf of the people and nor have any laws been
enacted to deal with the situation. (http://timesofindia.indiatimes.com/)
companies like Monsanto
The authority for protection of plant varieties is
Swadeshi Jagran Manch Says set to dispense with the requirement of a no-objec-
tion certificate (NOC) from patent-holders for use
GST Will Hit Small Businesses,
of their genetically-modified (GM) traits. This might
Push Chinese Imports trigger fresh litigation between Monsanto and com-
Days ahead of the launch of GST, the RSSs eco- panies like the Hyderabad-based Nuziveedu Seeds,
nomic wing SJM has said the new indirect tax regime an erstwhile Monsanto licensee, founded and man-

35
News
lation of a NOC, the Andhra and Telangana High
Court in September 2016 directed the Authority to
pass an order within four weeks. Now we will pro-
ceed with registration of application without NOC,
said Agrawal. (http://www.financialexpress.com/)

Sustainable fishing, climate


change among issues aired at
trade & environment committee
aged by M Prabhakara Rao. The notification will par- At the 20 June 2017 meeting of the Committee
ticularly hit Monsanto because its bollworm-resistant on Trade and Environment, several WTO members
GM trait is found in almost the entire GM cotton highlighted the importance of global efforts to better
crop grown in the country. The Protection of Plant manage the worlds oceans and marine resources, to
Varieties and Famers Rights (PPVFR) Authority passed address illegal, unreported and unregulated (IUU) fish-
the resolution after office-hours on May 31, which ing, and to negotiate an outcome on fisheries subsi-
was chairman R R Hanchinals last day in office. The dies at the upcoming WTO Ministerial Conference in
meeting was held late in the day because of a delay in December. Members were also briefed on climate
the only flight from Palampur in Himachal Pradesh, change discussions at the United Nations and efforts
where Hanchinal had inaugurated a registry office of for climate action. This was the first meeting of the
the Authority the day before. The meeting itself was CTE chaired by Ambassador Aitzhanova (Kazakh-
not sudden. Advance notice of 15 days had been giv- stan) and the first time that Kazakhstan is chairing a
en. The NoC issue was one of 16 items on the agen- committee following its accession to the WTO in 2015.
da, R C Agrawal, registrar-general of the Authority The Ambassador of Fiji, Mrs. Nazhat Shameem
said. The resolution is based on the opinion of addi- Khan, briefed members on the United Nations Ocean
tional solicitor-general Tushar Mehta. On a reference Conference held on 5-9 June in New York and the
by the Authority, he said, the requirement of NoC commitment shown there towards implementing the
from the patent-holder for registration of a variety UNs Sustainable Development Goal (SDG) 14 to
or hybrid containing a patented trait had no basis in conserve and sustainably use oceans, seas and marine
the PPVFR Act. The Authority has been insisting on it resources. Fiji was the co-host of the conference with
since 2011 though the requirement was formally ap- Sweden. The call for action adopted at the confer-
proved later, in 2015. ence included strengthening capacity building for small-
Mehta said the PPVFR Act only required a dec- scale and artisanal fishing in developing countries, sup-
laration from the applicant seeking registration of a porting sustainable ocean-based economies, as well
plant variety or hybrid that they had lawfully acquired as taking decisive action and accelerating WTO nego-
the genetic material or parental material for breeding, tiations to tackle fisheries subsidies.
evolving or developing it. A declaration, Mehta said, Members were also briefed on efforts at the
cannot be stretched to mean a NOC from the cre- WTOs Negotiating Group on Rules (NGR) to forge
ator of any plant trait. Whether the trait developer disciplines on fisheries subsidies. The WTO Secretar-
had a patent on it was not relevant for registration of iat said the SDGs are very much in the mind of ne-
any variety by the PPVFR Authority. The National gotiators and work would be intensive throughout
Seeds Association of India, of which Prabhakara Rao the autumn in the run-up to the 11th WTO Ministeri-
is the president, is of the view that NOCs give Mahy- al Conference in Buenos Aires.
co Monsanto Biotech (MMB), the joint venture which Canada, meanwhile, provided an update on the
licenses the GM insect-resistance trait in cotton, virtu- plurilateral negotiations on fisheries subsidies launched
al monopoly powers by imposing tough terms and in September 2016 involving 15 WTO members.
conditions on usage. Rao is also a member of the Negotiations are open to any WTO member willing
PPVFR Authority. On a writ petition by the Seeds- to participate and are complementary to the ongoing
men Association of Hyderabad challenging the stipu- multilateral talks, Canada added.

36
News
conference that had taken place from 11 to 14 June
2017 in the margins of the 2017 Expo held in Astana
under the banner of Future Energy. (https://www.wto.org/)

WTO records moderate rise in


G20 trade restrictions
The WTOs seventeenth monitoring report on
Group of 20 (G20) trade measures, issued on 30 June,
shows that trade restrictions in G20 economies have
The UNs Food and Agriculture Organization risen at a moderate rate similar to that of previous
(FAO) representative briefed members on its legal years, despite the uncertainty facing the global econo-
instruments and tools to combat IUU fishing, to which my. The report calls on G20 governments to show
some US$10-23 billion is lost annually according to leadership in supporting open and mutually beneficial
latest estimates. The Organisation for Economic Co- trade as a driver of economic growth and develop-
operation and Development (OECD) briefed mem- ment. A total of 42 new trade-restrictive measures
bers on its Fishery Support Estimate (FSE) Database, were applied by G20 economies during the review
which compiles information submitted by 31 coun- period (mid-October 2016 to mid-May 2017), includ-
tries, with more being added. The database will cov- ing new or increased tariffs, customs regulations and
er 50% of global fishing activity by the end of 2017, rules of origin restrictions. This is an average of six
the representative said. measures per month slightly higher than in 2016 but
Representatives of the UN Conference on Trade below the longer-term trend observed in 2009-2015
and Development (UNCTAD) briefed the Commit- of seven per month.
tee on UNCTADs Trade and Environment Review G20 economies also implemented 42 measures
focusing on fish trade. They noted that developing aimed at facilitating trade during the review period,
countries have become the main exporters of fish since including the elimination or reduction of tariffs and
2010. The representatives further noted the increase in the simplification of customs procedures. At an aver-
technical barriers to trade (TBT) and sanitary and phy- age of six new trade-facilitating measures per month,
tosanitary (SPS) measures that are being applied to fish this represents a similar level compared to the previ-
products, which have implications on the capacity of ous reporting period (mid-May to mid-October 2016)
developing countries to engage in fish trade. and is in line with the declining trend observed in 2016.
Climate change: The Chief of Staff of the It is notable that the estimated trade coverage of
United Nations Framework Convention on Climate trade-facilitating measures implemented by G20 econo-
Change (UNFCCC), Daniele Violetti, briefed dele- mies (US$163 billion) significantly exceeded the estimat-
gates on the status of climate change discussions. ed trade coverage of trade restrictive measures (US$47
Korea, New Zealand and Peru updated members on billion). In addition, liberalization associated with the
their respective pledges under the Paris Agreement, 2015 expansion of the WTOs Information Technolo-
which entered into force on 4 November 2016. New gy Agreement (ITA) continues to feature as an impor-
Zealands acting Climate Change Ambassador, Jo tant contributor to trade facilitation. (http://www.scoop.co.nz)
Tyndall, noted that climate change discussions were
starting to put more emphasis on the growing op- WTO marks 20 years of the
portunities from climate friendly technologies, invest-
Information Technology
ment and behaviour.
Chinas Ambassador to the WTO, Mr. Zhang Agreement (ITA)
Xiangchen, briefed delegates on the latest develop- To commemorate the 20th anniversary of the
ments in Chinas renewable energy sector. China ob- ITA, the WTO launched a new publication today (27
tained almost 13% of its energy from renewables in June) entitled 20 Years of the Information Technol-
2015, up from 6% in 2005, he said. Meanwhile, Ka- ogy Agreement: Boosting trade, innovation and dig-
zakhstan informed members about the ministerial ital connectivity. The publication describes how this
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News
tion also highlights how the recent expansion of the
ITA is reducing tariffs on a further 201 high-tech prod-
ucts, such as touch screens and medical equipment, with
an annual value of about US$ 1.3 trillion. (https://www.wto.org/)

70 Per Cent Of Pakistan Is Ideal


Breeding Ground For Jihadis
Poverty statistics of Pakistan for fiscal year 2014-15
agreement has evolved over the past two decades appear to suggest that at least 70 per cent of the country
and the significant impact it has had on worldwide is an ideal breeding ground for militants and jihadis.
trade in IT products. While the countrys armed forces continue to seek ways
The ITA entered into force in July 1997. Since to neutralise this threat, the civilian administration has
then, it has committed participants in the Agreement not been able to effectively raise the standard of liv-
to eliminate tariffs on a wide range of IT products ing of a majority of the people after it was weakened
with a current annual value of approximately US$ by more than a decade of militancy and terrorism.
1.7 trillion. Its membership has grown to 82 WTO
members, which currently cover 97 per cent of world
trade in ITA products. Since the elimination of tariffs
is included in their WTO schedules of commitments,
ITA participants have extended duty-free treatment
to all members on a most-favoured nation (MFN)
basis, thereby bringing the benefits of the Agreement
to the entire WTO membership.
Launching the publication, Director-General
Roberto Azevdo said: In addition to the significant
economic impact, the success of the ITA is notable Last year, an estimated 60 million Pakistanis were
because of what it says about the WTO. It shows said to be living below the poverty line, posing a sig-
that members can work together in different for- nificant development-related challenge to Prime Min-
mats to tackle the obstacles that they face and bring ister Nawaz Sharif and his government. According
solutions to the table. I think there are important les- to data from the Pakistan Social and Living Standards
sons to learn from this deal. And thats why we have Measurement (PSLM) survey for the 2014/15 peri-
produced the new publication that we are launching od, the countrys Multidimensional Poverty Index
today. It reviews the impact of the ITA and its ex- (MPI) stands at 0.197, which means that the poor
pansion, and shares insights on the role of ICT for people in Pakistan experience 19.7 per cent of the
development, including its contribution to the 2030 deprivation that would be experienced if all people
Sustainable Development Agenda. were deprived in all indicators.
The publication charts how world ITA exports Using the same data from the 2014/15 PSLM sur-
have more than tripled in value over the past 20 years vey, it was found that 38.8 percent of the population of
and now represent 15 per cent of total merchandise Pakistan is poor, according to the MPI, and average in-
products, exceeding the shares of automotive prod- tensity of deprivation per poor person was 50.9 per
ucts, textiles and clothing, and pharmaceuticals. cent. The observers and experts who have analysed the
The publication underlines how the lower cost connection between poverty and the eventual surfacing
and greater availability of computers and mobile of militant and jihadist elements, are convinced that Pa-
phones has resulted in increased access to the Internet kistans religious schools, madrasas, play a role contrary
and the growth of the digital economy, creating new to what they were originally intended to do. Some of
opportunities for trade. It also looks into the role of these schools have very close ties with radical militant
the ITA Committee and provides extensive analysis groups which essay critical roles in sustaining existing in-
of the evolution of trade under the ITA. The publica- ternational terrorist networks. (https://swarajyamag.com/)

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