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Impact of Foreign MNCs on Bharatiy Agriculture

Posted by Sandeep Shelke on 30th November 2011

Bharatiy Agriculture:

Agricultural economy grew from INR 3,71,378.4 Crores to INR 14,62,181.2 Crores almost by 393.717% between 1992 and 2010. That is it grew nearly 4 times since the economic liberalization and globalization. But the share of agriculture in the GDP is consistently decreasing from 28.99% in 1992 to 16.21% in 2010. Though it has grown in size but it is losing the its position amidst all MNCs and agriculture related research. Being a developing nation we have an advantage that labour availability is very high at low salaries/wages but capital availability is strained.

Foreign MNCs:

Multi National Corporations are companies with their operations in at least 2 countries. Foreign MNCs are the MNCs whose foundation is from outside Bharat. And that means these companies take the profits back to their native nation. Initially MNCs do bring in FDIs but later it becomes cause of the reimbursement to their parent countries.

Impact of MNCs on Agriculture:

MNCs like Monsanto, Myheco brought in technology, modern equipment, developed seeds, fertilizers through their entry. They encourage research in the agriculture segment. Also increased the farm production.

But for our economy they are turning to be a bane than a boon. We are a 1.2 Billion population and have huge demand for food forcing government to concentrate on agriculture at heart of economy and food security at heart of policy making. MNCs want cheap raw material so they may force commercial farming through various means like corporate farming. Small and marginal farmers (SMF) constitute more than 70% of the farmers. So the costly mechanization is not possible for SMFs which is impacting their productivity leading to widened gap between rich and poor farmers. MNCs make farmers dependent on HYV (High Yield Variety) seeds, which are not suitable in all conditions and also kill the biodiversity. MNCs press for commercial crops leading to soil exploitation and loss in soil fertility gradually.

With the rising pressure on farmers to take commercial crops the food security takes beating. Propagation of excessive use of chemical fertilizers through government machinery is rampant and killing our environment and local taste. Culture is up for grab in the hands of these MNC giants.

MNCs mostly gain the economic power and through that they may seek political power by helping politicians at time of elections. This may lead to strong pressure on politicians while making laws related to agriculture. Also they are not fair in their conduct since they use sub-standard quality in Bharat e.g. Coca-Cola.

Ironically WTO trade rules are dictating the terms for our internal policy with recommendations from WB/IMF policies. They first eliminated the local seed varieties and now are patenting seed varieties. The seeds produced by these companies are not re-sow able, leaving farmers continuously dependent on them for seeds in each season. This is a huge cost seeing the current scenario. How, on earth any country can be food secure if its seeds are not secured.

US and EU based MNCs get huge subsidies on milk products too. So these companies can flood our markets with milk products cheaper than locals.

New farmer’s freedom movement will be started sooner or later if such circumstances prevail.

जय भारत!

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Bill Gates: Either you donate and forget or dont donate at all

Posted by Sandeep Shelke on 17th April 2011

I came across this article “Dark side of giving: The rise of philanthro-capitalism”This articles talks about the probable hidden agendas of philanthopists.
“Most African [Bharatiy too] leaders are only keen on projecting the agony of their people for international support in dollars,” laments Som Pal. “A complete nexus between institutions, large corporations and narrow, vested interests are at work.”
Elements of this trend can be seen in Bharat too.This isn’t disturbing. As we know our political leaders look at everything as money vending machines.

Som Pal continues “They are using the pitiable condition of the African people to get a foothold into the continent. Their large philanthropic resources are being utilised to further the interests of business.” In countries with weak governance mechanisms, like in Africa, it becomes a lot easier.

I’m not against using their resources for the business purposes but once the money is donated for philanthropy then why to bring business interest in it. Either you donate and forget or dont donate at all.

The Gates Foundation’s sheer clout is taking it, intentionally or unintentionally, to places where policy, business and philanthropy intersect. There are its business and investment links with large companies that are driven by the profit motive. There is its growing stranglehold in the policy-making space across emerging markets, especially in education, healthcare and agriculture.

The Gates Foundation invested $23.1-million  in Monsanto, the world’s largest producer of GM seeds.

Civil society organisations see it as vindication of what they had always suspected: the unstated agenda of pushing GM crops into Africa

Public health activist Mira Shiva says:

Doubts about his (Bill Gates) larger motives, despite some good outcomes of his charity, are beginning to cloud my thinking,” concedes Mira.  “It’s a crisis of accountability today,” says Shiva. “It’s no more accountability of corporations or philanthropists alone; the government too has a lot to answer.”

Two emails sent by ET to the Gates Foundation, on December 29 and March 22, went unanswered.

Courtesy: ET

Monsanto in Gates’ clothing‘ Eric Holt-Gimenez:

He points out that about 80% of the Gates Foundation’s allocation to Kenya has gone into biotech research; in 2008, about 30% of its agri-development funds went into promoting and developing GM seeds.

Gates foundation open to initiatives in Bihar agriculture sector

Bill Gates announced Wednesday in Patna the Foundation is interested in expanding cooperation to agricultural sector in Bihar. He goes on to say “want to expand scope of phylanthropy in Bharat

Interestingly “Gates foundation to stop funding HIV programmes“. Do we need to be carefull about this step seeing what he is supporting in Rawanda, African countries?

Some serious questions arise about the intentions of such philanthropists. This kind of attitude and behavior isn’t ethical.

Jai Bharat!

Related Posts: Genetically Modified – Is it really horrowing? and Why farmers commit suicide?

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