Monday, 3 August 2015

The Agrarian Crisis - How Israeli methods can help India

The suicide of farmer Gajendra Singh in full public view at an Aam Aadmi Party rally in Delhi yesterday (22 April) became  a television spectacle that sparked both TRP and political wars, was not an isolated incident.  It has been happening regularly across the country, mainly in the cow belt states. The Agrarian Crisis, has been politicized so much that it has even been used as a political comeback vehicle for the atypical farmer and Aam Admi, Rahul Gandhi. Farm distress is a crisis of massive proportions that has reached this level due to years of neglect. 

The Economic Times today (23 April) puts the number of farmer suicides in 2013 at 11,772. That’s in 2013, they have increased even more in the last two years, with some putting the figure at nearly 15000. Even though the figures relate to "accidental deaths and suicides in India" and may not all be real farmer suicides, the situation warrants serious attention.

Where lies the problem?

Politicians being who they are, want instant solutions, that raise their vote shares. The solutions must be seen as flowing from them and by them. The only solutions they have come up in all these years is Subsidy, Debt Waiver, and increase in Minimum Support Prices (MSP’s).. But these do not address the problem from its roots, they remain at the top of the solution tree and tend to tend to lose their utility with the change in season. Unless the soil is treated, figuratively speaking, the problem will continue to fester and suicides will continue, a different set, a different location each year. 
Rs 2,00,000 crore of food and fertiliser subsidies, and possibly another Rs 1,00,000 crore of other subsidies (in power, fuel, seeds, etc) every year has not made farming viable and never will for productivity is very low -  More than 50 percent of the population generates barely 15 percent of GDP. Why you may ask.

India's total land under cultivation has remained fixed at 140-150 million hectares for over 40 years, but the number of farmers trying to make a living from farming has doubled. We are adding one crore additional farmers every five years - a demographic curse rather than a dividend. The average size of an Indian farm holding has fallen from two hectares to 1.15 between 1976 and now, and it is falling further and this is the problem.  Small holdings do create investable surpluses, rely on primitive agricultural technology and methods, which have limited utility. This is compounded with poor irrigation and storage, transportation and selling infrastructure.

Prakash Bakshi, former chairman of the National Bank for Agriculture and Rural Development (Nabard) told The Economic Times a while ago: "Indian agriculture is undergoing heavy stress as average land holdings are decreasing day by day. Our acreage has remained at 140 million hectares since 40 years but the number of farmers has increased from seven crore to 14 crore. With smaller land at (their) disposal, there is a decrease in farmers' capacity to invest in land. With average land holding halved, the cost of getting inputs and time consumed has doubled. If these are not tackled now, it will be difficult to maintain agriculture as a feasible profession."

The solutions
Now there are two ways to go about finding a solution – moving the excessive farmers away from their farms by building industrial corridors as proposed by the BJP government in their amended Land Acquisition bill, or find a way to sustain agriculture and make it profitable for the farmer. The latter would require solutions beyond the occasional debt waiver, subsidizing Power, Irrigation, and seeds, excessively supporting minimum prices and excluding big farmers from the income tax net which gives big farmers an unfair advantage over small farmers. 
If we take all these subsidies and benefits together, it is highly likely that Indian agriculture receives benefits in excess of Rs 3,00,000 crore every year between centre and states and bankers.  The question to be asked is: if Rs 3 lakh crore every year is not good enough to make farming viable for the bulk of India's farmers, the remedy cannot be to subsidise them even more in the same way. If we do so, we will be neither doing the farmers nor the country any favour.

Barring payments for short-term disasters and distress, the money spent on agriculture needs to be redirected elsewhere: to irrigation, to research in better seeds and pesticides, to rural roads, to cold storages, etc.
Smart solutions for better agriculture output from Israel.

Israel is small country, the size of one of the states of India, practically a desert, with very little natural irrigation and a large population for its geographical size. But, no other single country – certainly not one as young and as tiny as Israel – has contributed more breakthroughs in agriculture, which have been born out of necessity.
Since the 1950s, Israelis have not only been finding miraculous ways to green their own desert but have shared their discoveries far and wide through various channels, including   Israel’s Agency for International Development Cooperation at the Ministry of Foreign Affairs.  

Lets look at the innovative methods of Agriculture in Israel from the point of view being applicable to India in its hour of crisis.

1. Drip irrigation

Probably no other advancement has been quite as significant. While the concept of drip irrigation existed well before Israeli statehood, it was revolutionized by Israeli water engineer Simcha Blass, who serendipitously discovered that a slow and balanced drip led to remarkable growth. He created tubing that slowly released water where it was most effective, and in 1965 Kibbutz Hatzerim built a whole new industry, Netafim, based on his invention.  Israeli drip and micro-irrigation solutions rapidly spread worldwide. 

The newest models are self-cleaning and maintain uniform flow rate regardless of water quality and pressure. ‘Tipa’ or literally ‘drop’ an Israeli developed kit  has helped that has allowed 700 farming families in Senegal to reap crops three times a year instead of just once, even on infertile land.  It is available in India, but needs widespread implementation at a lower cost. 

2. Grain cocoons

Israeli-designed GrainPro Cocoons provide a surprisingly simple and cheap way for African and Asian farmers to keep their grain market-fresh.  The huge bags, invented by international food technology consultant Prof. Shlomo Navarro, keep both water and air out. They’re used all over the developed world, including Africa and the Far East, and even in countries that have no diplomatic ties to Israel, such as Pakistan.

As much as 50 percent of every grain harvest and 100% of every pulse harvest is lost to pests and mold. Here in India food grains rot in the open as the FCI warehouses are insufficient or inefficient. Subsistence farmers in developing countries tend to store their crops in primitive baskets or bags, which are not effective in keeping hungry bugs and micro-contaminants out. The Cocoon solves that problem, even in extreme heat and humidity.
3. Squeezing every drop of water from the air

Tal-Ya Water Technologies developed reusable plastic trays to collect dew from the air, reducing the water needed by crops or trees by up to 50 percent.

The square serrated trays, made from non-PET recycled and recyclable plastic with UV filters and a limestone additive, surround each plant or tree. With overnight temperature change, dew forms on both surfaces of the Tal-Ya tray, which funnels the dew and condensation straight to the roots. If it rains, the trays heighten the effect of each millimeter of water 27 times over. Inventor and CEO Avraham Tamir said that the trays also block the sun so weeds can’t take root, and protect the plants from extreme temperature shifts. “Farmers need to use much less water, and in turn much less fertilizer on the crop,” which translates to less groundwater contamination.

4. Unparalleled crop protection

Two years ago, Hebrew University’s tech-transfer company teamed with Makhteshim Agan, aworld leader in crop protection products, to develop and commercialize slow-release herbicides and a targeted insecticide that doesn’t harm beneficial insects.

The total worldwide herbicide market is valued at more than $15 billion, of which approximately a quarter is dedicated to soil-applied herbicides and other pesticides. The Israeli approach incorporates herbicides into micelles or vesicles, which are absorbed onto negatively charged clay minerals to enable a slow and controlled release, reducing leaching to deeper soil layers. This enhances efficiency and reduces the required doses.

The novel insecticide kills caterpillars of night-flying moths – a common scourge for farmers worldwide – but unlike common commercial preparations, has minimal or no effect on any other creature. High levels of control can be achieved with much less product, greatly minimizing environmental impact.

5. Fishing in the desert

Overfishing is a serious threat to the food supply, a grave situation since fish is the main source of protein for hundreds of millions of people. But what if fish could be raised virtually anywhere, even in the desert? That is just what the Israel’s GFA (Grow Fish Anywhere) Advanced Systems has made possible.

The Israeli “zero-discharge” system eliminates the environmental problems in conventional fish farming, and doesn’t depend on electricity or proximity to a body of water. Specially developed microbes purify fish waste byproducts right in the tank, with no need for spillage and refilling.

The largest facility using GFA technology, in New York, produced about 100 tons of sea bream, bass and tilapia in 2010.

6. Food from greenhouse gas


Israel’s Seambiotic clean-tech company recently launched a commercial algae farm in China and does business in the United States and Italy as well.

People don’t eat algae, but algae ponds nourished by power-plant effluent conserve farmed produce for human consumption because they generate 30 times more feedstock for biofuel than do land-based crop alternatives.

Plus, the tiny plants, which thrive on carbon dioxide and sunlight, produce a valuable nutraceutical food additive that is especially popular in the Far East.

7. Hardier seeds for better crops

Hebrew University agricultural scientists Ilan Sela and Haim D. Rabinowitch developed TraitUP, a trademarked technology that enables the introduction of genetic materials into seeds without modifying their DNA. This method immediately and efficiently improves plants before they’re even sowed.

The university’s Yissum Research Development technology transfer company licensed the seed treatment technology to Morflora Israel for curing fruit-tree diseases in orchards and groves, and for seedling treatment in the nursery.
“The new ability to deliver traits within days instead of years, and to offer a treatment with results similar to breeding to all current species, answers a long and unmet need that will revolutionize modern agriculture and significantly impact the vegetable and commodity crop markets,” said Dotan Peleg, CEO of Morflora.

8. Agriculture cooperatives

Each of these methods holds the promise of better agriculture output and profits for Small farmers.  However the key is sustainable irrigation which can only be had from desalination and canalization. This requires huge sums of money and agricultural subsidies are best directed towards this.  

Another method is cooperative irrigation which really means small projects undertaken by agricultural cooperatives at the village level. An agricultural cooperative, should not restrain itself to purchasing produce from farmers, but go beyond - provide the technical equipment, knowhow and the storage support at the village level supported by the government.
These methods require a lot perseverance to implement, but can make lives of our farmers, hopeful and preserve our food security.

Suraj Gowda: A budding film star from Mysore

Mysore: Suraj Gowda, the 2013 Mr. Karnataka, and the face of the ‘Mysore fashion week’ which concluded recently in Mysore, is currently busy shooting for his first commercial kannada film, ‘Kahi’ which is a ‘Boiled Beans’ production, directed by Arvind Shastry. ‘Kahi’ deals with the realities of urban life in Bangalore.

He seemed excited at the prospect of becoming a star of the film industry when Newskarnataka caught up with him during a break in the shooting. ”I want to be a star. This is where i always wanted to be. And it was dream come true when my first commercial project took off.
The 26 year old Gowda, born and brought up in Mysore, is a computer engineering graduate from the VTU by education, and is no stranger to the film and  entertainment industry. Trained by Ramesh at the Rangayana, Gowda is the winner of the reality show “Paradeshadalli paradhata” aired on Zee Kannada and the main lead in the music video “Ninade baduku”. Gowda recently starred in a short off beat film “Yenanthiya”, besides playing the lead in nearly 10 TV commercials. That’s quite a string of achievements for one so young and just starting out in the industry, and all this alongside his academics, which he did not neglect.
What sparked his interest in the industry, he says, is his win in the reality show “Paradeshadalli paradhata” aired on Zee Kannada.

When asked who his favorite actors in Bollywood and Sandalwood were, Gowda came up with “ Shahrukh Khan and Kajol in Bollywood, and Puneeth Rajkumar and Ramya in Sandalwood”

Naturally the question to follow was, are they your role models? And pat came the answer, “I have no role models. I am my own hero”. And indeed that’s exactly what he is, as his achievements so far, speak for themselves.

Speaking about the differences between theater and cinema, he said, “Theatre is more of using the whole space that you have - more expressions. Cinema however, is camera oriented acting – You just can’t go out of the frame. It’s controlled acting”.

Hailing from Mysore, Gowda is still passionate about the city. “I was born in this city of palaces filled with rich culture, heritage and performance arts,  and I know Mysore has always contributed to bring out and nurture new talents. My acting career started from this city and is proving to be a beautiful one” he says.  His mother Sureka, is a professor at a college in Kushal Nagar and his father commutes from the US.

Currently the brand ambassador for Tourism Coorg, Century Grande group of hotels and Prashanth’s Photography, Gowda’s 5’10” handsome personality can only bring these brands rich dividends and laurels for himself and the film industry.
 Newskarnataka Link

BBMP inaction: Shantinagar turns into Venice of Karnataka

Bangalore: What was meant to be a serene, sophisticated layout in Bangalore became a flooded river when the deluge descended on Bangalore recently.

The flooding as seen in the pictures of Nanjappa road in the layout are a direct consequence of the hap hazard functioning of the BBMP and the ineffectiveness of the local Corporator, Soumya Shivkumar and the MLA, N. A Harris, according to a resident.
The resident, speaking to Newskarnataka said, “the roads have been dug up to install drainage, and not re-asphalted. The natural flow of water has been restricted by huge bunds on the road to accommodate the underground drainage system and the all the drainages on the side of the road are completely blocked, leading to the flooding.”  He added, “the water has entered the houses of people on either side of the road and destroyed their electronic equipment and furniture. Who will pay for the damage?”, he asked

The road conditions were so bad that the residents called the Corporator, MLA and the transport minister, Ramalinga reddy for an on site  meeting on October  10th. They came promptly, and promised to rectify the situation by the 20th of October. However,  till date nothing has been done.

The worsening road conditions were echoed In a complaint by a resident on the public complaint forum http://www.complaintboard.in.

The complaint dated 29/9/2014, says,  “Dear Sir, The roads in shanti nagar (Bangalore-27) are really terrible. Every time it rains it becomes worse. I would like you to survey the area especially bassapa road. The road has been dug up from a few months now. It is very difficult for the people living here as they have to park the vehicles on the other roads n walk home. This has cause a lot of mosquito problem. It's not so very hygienic for the people n small kids in the area. I would really like you to come and do something about this. Will be really grateful.”

The residents are so irked by the inaction and ineffectiveness of the authorities and powers that be, that they have decided to form a welfare association, tentatively named as the Shanti Nagar Residents Welfare Association

The Association has decided to meet on the 26th of October to chalk out an action plan to deal with a number of uncomfortable civic problems, that the residents are facing,  from water logging to  garbage.

India's Green Growth Dilemma

Sometime ago, whilst at college, I would cheerfully wake up to the  chirping of birds and the annoying cawing of crows in my back yard. These days I wake up to the sound of the alarm, or the wakefulness of my bio clock, and almost never hear the cawing of a crow.  In fact I’ve not seen one in a long time in Mangalore. I used to exit on to the main road with ease and cycle along mostly empty roads with less pot holes than there are today. Today, I have to wait for an average of 15 mins before I can exit my side road onto the main road. Nowadays, the rains catch you unawares with their frequency, intensity and timing, unlike in my school days, when we used to look forward to rain holidays – Rains were expected and welcome. The garbage seems to pile up in a jiffy all around the place… All the effect perhaps of progress or development, something that all governments strive for – for it puts money in the hand of voters and that means votes.
Today is World Environment - the surroundings or conditions in which a person, animal, or plant lives or operates - day.  A day that is celebrated with somber speeches and a couple of new initiatives everywhere in the world. Here too in India, it is celebrated, and lip sympathy is paid to the most unheralded aspect of India’s growth story. The environmental Impact of growth can be seen in the Pollution levels of our Air and Water Resources, the decreasing forest cover, the declining numbers and variety of  Flora and Fauna, so much so that there are some species close to extinction, even as drinking water and sanitation is at a premium, climate change is already in effect due to reduced plant and forest cover and the birds have disappeared from cities such as ours. Health too has been impacted, with chronic ailments taking centerstage.
Economic Growth vs Environment Sustainability.
India’s GDP has grown at an average of 6.5% over the last 10 years and is projected to go higher over the next decade.  It has lifted a plenty of  people out of poverty.  But this has done nothing for the environment – only degraded it to the extent that India is ranked 155 in the world among 178 countries with a total score of 31.23.  The Statistics are an eye opener
 
Indicator
Score
World Rank
Ten Year Change
Sub Criteria Considered
Compared to GDP Peer Set (Percentage)
Compared to Region Peer Set (Percentage)
Overall Score
31.23
155
5.40%
 
-25.43
-12.81
Health Impacts
50.04
127
26.68%
Child Mortality
-7.18
-9.18
Air Quality
23.24
174
-29.49%
Household Air Pollution, Air Pollution Avg. Exposure to PM2.5, Exceedancce of PM2.5
-68.32
-36.03
Water and Sanitation
26.28
124
54.95%
Access to Drinking Water, Access to Sanitation
-10.99
-5.52
Water Resources
10.49
87
 
Waste Water Treatment
-1.14
100.00
Agriculture
58.4
117
16.47%
Agriculture Subsidies, Pesticide Regulation
-18.31
-19.59
Forests
35.07
57
 
Change in Forest Cover
-2.94
-21.65
Fisheries
22.64
67
0.22%
Coastal Shelf Fishing Pressure, Fish Stocks
-12.54
-9.15
Biodiversity and Habitat
39.18
125
 
Critical Habitat Protection, Terrestrial Protected Areas, Marne Protected Areas
-18.44
-21.01
Climate and Energy
35.24
104
 
Trend in Carbon Intensity, Access to Electricity, CO2 Emissions per KwH
-25.89
-21.22
Average
    
-18.42
-4.82
source
http://epi.yale.edu/epi/country-profile/india
According to another recent WHO survey, across the G-20 economies, 13 of the 20 most polluted cities are in India. While India’s overall score based on 9 parameters has increased by 5.40% over a ten year cycle, its unprecedented growth has impacted its population in myriad ways. Major gains have been made in mitigating Health Impacts and in Agriculture where its assessment scores have touched 50%. India is an average of 18.42% behind Countries in its Per Capital GDP Set and 4.82% behind its regional competitors in its Environmental Profile. This figure is comparatively low because it matches its regional competitors on Water Resources.
In India, prosperity and poverty are woven together into a single colorful tapestry. They live side by side. Prosperity of one section often depends upon and feeds upon the poverty of the other. Both are aspirational classes though their aspirations may be different. Consequently perceptions about the use of the environment to meet aspirations vary, but, the fact remains, that both do not hesitate to use it in the short term to further their goals, and remain unworried about the long term impact.
The Green Growth Dilemma: Modern Development which is as far away as the bottom of the ocean is from Mount Everest, as from Mahatma Gandhi’s concept of Development, pre supposes the expansion of cities, of industry of mechanized transport and agriculture, and electronic applications for household management.
These aids may be necessary for the ease of life and the generation of wealth, yet each of these methodologies have their negative impacts on the Environment. Governments over the world love the world development, because it puts money in the hands of the voter and votes in the hands of the government. Sadly the long term impact of short term growth is expected to be 5.7% of India’s GDP or approx 80$ Billion dollars annually. But in a reflection of the size and diversity of India’s economy, the environmental risks are wide ranging and are driven by both prosperity and poverty.
Environmental Sustainability, everyone knows is the next major challenge for India, Its citizens and its government. Environmental Activists have been espousing a a green growth strategy – however they have to fight this battle everyday, even taking matters upto the supreme court, who too have now stepped into debate, keenly monitoring specific aspects of the development story for its impact on the environment – Mining and genetically modified crops for instance. Does it indicate a conflict of interest or a lack of will on the part of the government?
These are issues that the new government must address and address quickly.
While the overall policy focus should be on meeting basic needs and expanding opportunities for growth, they should not be at the expense of unsustainable environmental degradation. Muthukumara Mani , Senior Environmental Economist All of us understand that green growth is necessary – the cost of ignoring the environment in the pursuit of growth is just too much, and it could be well nigh impossible to clean up later.
Green growth can be defined as “fostering economic growth and development, while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies”
The Question is whether green growth is feasible and more importantly affordable. Certainly its feasible – it does require a huge effort and adherence to enforcement of Laws and a spirit of sacrifice among its citizens and yes, environmental taxes can make it affordable and enforceable.
Its also important to measure the green growth – A green gross domestic Product is an important calculation as it factors in the environmental costs What can and should be done? While Green growth is a desirable objective, it laid siege to many a development project in the previous regime. The current regime has promised to revive green growth, but the hurdles, while not insurmountable, are numerous and in a democratic polity like ours, require tremendous persuasive skills to go forward. What can be done?
1. Policy must be by and large clear and non discretionary.
2. The legal framework must have clarity and time frames for clearances etc must be built in.
3. Litigations and appeals in this regard must be time bound and have a finality about it.
4. Clearances must be based on a consultative mechanism which must be transparent and definite.
5. The concept of Environmental taxes on polluting industries, services, house holds, vehicles or reliefs thereof for use of renewable energy and lower consumption of energy must be introduced.
6. Public transport must be encouraged over private transport, while solar, renewable and nuclear energy must be encouraged over thermal and fossil fuel based energy generation whatever be the initial set up costs.
7. Water resources must be preserved as best one can with stringent fines for polluting or wasting the resources and must be enforceable by law.
8. The use of biodegradable packing material must be encouraged through environmental taxes on environmentally inimical material.
9. Environmentally sustainable mining and industrial development must be made mandatory.
10. The Global Reporting Initiative which helps companies report on a environmentally sustainable production must be enforced strictly for all major manufacturing companies in India.
However while there is a need to strengthen and clarify the regulatory framework, inspection is not the answer, but a framework combined with self regulation is. Its a question of maximizing the synergy between economic development and environmental protection. Its important to strike a balance between the two dimensions that are equally important in the life of a nation. Green growth suggests that low cost environmental sustainability is possible even as governments sustain long term economic growth. I am hopeful that the green growth dilemma will be resolved, and soon I will once again see crows in back yard and wake up to the chirping of birds, rather than the alarm in my smart phone.

The story of our democracy - dissent and be damned

Yesterday morning, the CBI raided premises connected with the social activist Teesta Setalvad, triggering protests from her and her well wishers on the social media. Setalvad described the raids as nothing but a BJP Vendetta.   
Teesta_Setalvad
The raid was based on a case registered last week against Ms Setalvad and her organization for alleged violation of Foreign Contribution Regulation Act in receiving funds from abroad without taking prior permission from the Home Ministry.

The fate of Setalvad, who took on the Modi Government in Gujarat over the 2002 riots in a variety of forums, ranging from the media, to the court room was all but sealed when the Modi Govt. took over at the Centre in the summer of 2014.

Setalvad, who was a thorn in the BJP’s  flesh for more than a decade since the Gujarat riots  is now set to be extricated surgically,  after several unsuccessful but ongoing attempts to do so by the state government since 2006.  Willing or compelled,  central agencies have now been roped in to deal the knockout blow.  While a number of cases have been foisted upon her since 2006, the one that has hit the headlines and continues to do so, is the one against Sabrang communications, Sabrang Trust and Citizens for Justice and peace, a company, a trust and an NGO in which she has an interest.

Sources indicate that the  Central Bureau of Investigation has filed an FIR against Setalvad under Sections 120b read with Sections 35, 37 of IPC and Section 3, 11 and 19 of the FCRA Act of 2010 (criminal conspiracy and receiving funds illegally) after notices were issued to her and her husband and which were responded to with voluminous documentation. In the First Information Report FIR, the agency has also named Ms Setalvad's husband Javed Anand and Gulam Mohammed Peshimam, both directors in Sabrang Communications and Publishing based in Santacruz, Mumbai.

The Case

Sabrang Communications was set up in 1993 and began publishing the journal ‘Communalism Combat’.  It was Sabrang Communications that published the controversial Justice Srikrishna Commission Report into the Mumbai communal riots of 1992-'93, soon after  Jyoti Punwani and Vijendra, printed 500 copies of  it even before the state government made it public and provided the public with a glimpse of  how  public administration works when a riot takes place.  Were the riots compounded, contained or constrained is a question that the report tried to answer.

Setalvad and her husband Anand set up the Sabrang Trust in 1995 and did amazing work, winning several awards during the period up until the Gujarat Riots in 2002, and incidentally nobody questioned their work. 

They established Citizens for Justice and Peace in 2002 after the riots and went after the alleged perpetrators of the Gujarat violence, pursuing them through various courts.  They hired lawyers, identified witnesses, helped record their statements and worked tirelessly for the cause of the victims of the riots and justice. The 120 or so convictions in this sorry episode in Indian history cannot all be attributed to them, but certainly their efforts had a large role to play in a number of convictions.
Even as they became a thorn in the flesh of the Modi government in Gujarat, pushing victim’s cases, and pursuing the alleged perpetrators, both in the courts and on television, their work was not overtly hampered, for fear of a national media backlash, until they went after the then Chief minister of Gujarat, and current prime minister Narendra Modi in the case of the death by rioting of Javed Jafri. They supported the widow of the Congress MP, Ehsan Jafri, in her pursuit of the alleged perpetrators of the crime.

The NGO, set up by Teesta Setalvad, ‘Citizens for Justice and Peace’, helped Zakia Jafri file a criminal complaint for criminal and administrative culpability against top politicians and policemen, including the then chief minister, Narendra Modi. The Supreme Court set up a Special Investigation team (SIT) to go into the charges of criminal conspiracy, but their report stated that there was not enough evidence to prove his involvement. Hence the ‘clean chit’.  Jafri, aided by Setalvad, protested in the trial court in December 2013, but her petition was rejected. They filed a revision petition in March 2014 and this will now be heard on July 27th   instant.

Interestingly, within eight days of the petition being rejected an FIR was filed against Setalvad and others for embezzlement of funds collected for the Gulbarg Society. All the organization’s accounts and Setalvad’s personal accounts were frozen soon thereafter.  

The Gujarat Crime Branch which till date, had handled all the cases related to   Setalvad, was by now comfortable in the knowledge that the Centre would be a willing ally in their efforts to shut down Setalvad’s activities. They wrote to the Ministry of Home Affairs (MHA)  in Delhi in March 2015, raising objections to Setalvad’s organizations receiving funds from the Ford Foundation. With surprising alacrity, the ministry sent notices to them about violating provisions of the Foreign Contributions Regulations Act. While Setalvad’s NGO was not the exception to this FCRA query,  as things turned out, they were certainly, along with Greenpeace, a prime target. The Ford Foundation, despite the Obama Modi bonhomie, was caught in the cross fire and like any other Foreign contributor, is now required to get clearance from the Home Ministry, before releasing funds to any non-governmental organization.

The Ministry of Home Affairs raised three questions – one of eligibility to receive foreign contributions, the second of record keeping, and the third, lobbying with political parties the government accused Sabrang communications of accepting $421,000 from Ford Foundation in violation of FCRA and without getting prior approval from the union home ministry. 

Sabrang in its defense says that under section 4 of the FCRA 2010 they are entitled and they convinced themselves of this legality after consulting experts and before signing a Consultancy Agreement with Ford Foundation in 2004 and 2006 "to address the issues of caste and communalism" through a clearly defined set of activities. In their response to the MHA in respect of the second query, Sabrang reiterated that they had kept records and had  provided copies of the same to the FCRA team, during the inspection visit of the  team in Mumbai on June 9 and 10, 2015, and additional documents as required were also posted to the FCRA department. As regards the third accusation, the Setalvad team says that they are not lobbying, but as an NGO they engage with the government of the day to draw their attention towards the legitimate social issues.

According to them, the organizations in the dock, sent in nearly 25000 pages of documents to support their responses, yet the CBI filed an FIR against Setalvad and raided her residence.  The next objective seems to be custody, which the Supreme Court has been preventing through repeated injunctions based on pleas from the Setalvad couple.
 
As of now, all Setalvad can do is defend herself against the series of FIR’s and warrants, thereby slowing down her pro bono legal work through her trusts, if not stifling it all together, which the government appears determined to do.   She has to commute from Mumbai where she lives and works to Ahmadabad and Delhi, from one court to another to sustain her freedom and work – just as the Doctor in Delhi ordered.

Throttling dissent and vilifying opponents

While Setalvad’s NGO is not the only one in the eye of the NGO squeeze, and therefore cannot prima facie be seen as the target of the pogrom – Greenpeace is one other prominent one among them – it certainly is a reminder of the power of the state to crush its opponents, - and opponents of the state they are, but in the interest of civil liberties -  through instruments of state oppression, legally, and ruthlessly. 

While the government says, and rightfully so, that they are merely ensuring the rule of law and due process, to the discerning lay observer that has voted this government to power for development, it would appear that the state is using the innumerable instruments at its disposal to intimidate and throttle dissent, and ultimately buy silence and compliance. Examples abound from the Setalvad case to the Khemka and Amitabh Thakur case, and even the killing of a number of RTI activists in the recent past.  Dissent in the social media too, has been viewed with a jaudiced eye. This is not healthy for a vibrant democracy that should welcome dissent.
 
The actions of the government in the Malegon blast case, where a public prosecutor, by her own admission to the media, was directed to go slow, are in direct contrast to the alacrity displayed in the Teesta Case and the way other sensitive cases like the Ajmer Blast case are being handled.

Communal conflagrations of the magnitude of the Mumbai, Delhi and Gujarat riots are a thing of the past, and the government claims credit for this development, but they, perhaps deliberately, do not acknowledge, that the nature of the beast has changed.  Conflagrations’ are localized and low key, but are a constant, and peak just before state elections. Minorities have begun to feel insecure, and are retiring to their corners, hoping to be ignored, but that is not going to happen very easily. 

Viewed against this backdrop, silence of the leadership in government cannot mean anything else other than complicity.

Social Media hails an Ola Auto driver, for whom a woman's safety was paramount

Bengaluru: Social Media, thankfully,  is not limited to trolling, or abuse. It also hails the best, the good deeds and the love that makes the world go round. It creates heroes and destroys reputations, but in the instant case it is the former.  The latest post to go viral on the social media is one about an auto driver, who ensured despite odds, that his woman passenger reaches her destination. 
In a Facebook post, that has gone viral now, Shanker said that the auto driver, Ghasamfar Ali K, proved to be "a true gentleman" who knows how to make a woman feel safe.

The facebook post relates to the journey of Ranjani Shankar, who, last week, after an hour of searching for a mode of transport that would take her 38 kms from Bengaluru to Kanakpura Road, Ranjani Shanker booked an Ola Auto, late at night. Shanker was hesitant, but she had little choice and using google maps, which is everyone's friend in need, Shankar found the shortest route.

The driver however thought differently when she showed him the route displayed. Even as he followed her instructions, he told her that the route suggested by the app would be hazardous as it was lowly-lit and deserted. "I told Madam that the road is completely empty, so it's best to avoid it. I told her we should take the main road," Ali told HuffPost.

Fortunately for her, Shanker decided to trust the driver. 'An auto-ride in complete darkness with a stranger in a city that's not my home, with only my phone to keep me connected and provide me light,' she wrote in her Facebook post and Ali assured her of her safety.

Astonishingly in these times when, everyone is in a hurry especially when its late, after they reached their destination, on a dark and empty stretch of road, the auto driver, did not just leave her there, having done his duty, but asked her about her further plans. When told that her friend would reach in 5 mins, the driver asked her if he can wait till he arrives.

"I told Madam that I will wait for her friend to arrive if she doesn't have any problem with that," he said. He waited with her for 30 minutes, crossed the road with her and saw her safely into her friends car. 

"What overwhelmed me was not how well he did his job, but that he was a decent human being who knew that safety is a single woman traveller's biggest concern. Thank you Ghasamfar Ali. Ola, you should be proud to have him drive for you," Shanker wrote in her Facebook post.

Ali, 33, who lives with wife and his 3 year old son at JP Nagar said that he never leaves a woman passenger alone at night. "If someone wants a drop at night, I wait for the passenger to enter the house before I leave that spot," he said. For him safety of women is paramount as it must be for all the men of India.

Here's her facebook post 
Ranjani Shanker
"The world needs more men like GhasamfarAli.K, a true gentleman who knows how to make a woman feel safe when the conditions didn't feel that way.

After a one hour wait spent waiting in a Cafe Coffee Day looking for cabs on Uber and Ola, to take me from Bangalore city to Kanakpura Road, I finally could find only an Ola autorickshaw that agreed to make the 38km trip. In the meanwhile, I was also trying to get a ride from a friend who was headed in the same direction but a little later. So when my auto arrived and I got in, he told me that the location I've asked for doesn't allow autos in the suggested route, (highway/toll road) and so we'd have to take a different route. I looked up Google Maps to find the simplest route and told the auto driver that he had to follow the route I told him only with no deviation. He said okay, but once I started telling him, he slowed me down to warn me that the route had super low light and checked if I was okay going on that route. 

I took a few seconds to coordinate my ride with the friend who said he'd meet me half way and pick me up. So I just took the risk and trusted the auto driver, who'd definitely done everything right up until then to convince me. 

The next 30 mins was an auto ride in complete darkness with a stranger in a city that's not my home, with only my phone to keep me connected and provide me light. All through the ride, the auto driver kept checking if I was okay and mentioned that Ola had given him the right training to drive for single women and that I'll be just fine. Even then, I was holding onto my pounding heart and hoping I reach my friend with no trouble. Not only did this man reach me safely to my destination but he waited 20 minutes with me until my friend arrived, crossed the road with me and ensured I got in safe. 

What overwhelmed me was not how well he did his job, but that he was a decent human being who knew that safety is a single woman traveller's biggest concern. 

Thank you GhasamfarAli. Ola, you should be proud to have him drive for you".

Wednesday, 20 May 2015

Its time to abolish income Tax, but how?

"It was only for the good of his subjects that he collected taxes from them, just as the Sun draws moisture from the Earth to give it back a thousand fold" – Kalidas in Raghuvansh eulogizing King Dalip. Its a given that one can’t escape taxes, even on the death bed. Brian Fernandes, a passionate author on a variety of issues, in this article, examines whether there is an equally effective alternative to the present method of levying income tax..

A mere 37 million Indians pay Income tax. That’s approx 3 percent of the Indian population. 90 percent of these are middle class salaried people, trying to make ends meet. About 42,800 people have declared taxable income of over Rs. 1 crore annually. Indeed, 400,000 people (with incomes more than Rs. 20 lakh, and constituting 1 per cent of the tax-base) account for 63 per cent of the income taxes collected from individuals. 

It’s obvious then, that 99 per cent of India's taxpayers pay a small sum as taxes or not at all on the basis of some exemption or the other, but these are the very people, middle class people, doing an honest days’ work, who are harassed into filing their tax-returns.
Poor returns on tax paid

In addition to the almost 30% of their income they remit in income tax, this middle class backbone of India, is taxed an additional 30% in indirect taxes on the goods and services they buy. These indirect taxes range from customs  and excise by the centre to VAT and luxury tax at the state level and octroi and entry tax at the municipal level – The list is long and uneven. In addition there are local taxes like property, road and other utility taxes. In the end, an income tax payee ends up paying almost 60% of his income in taxes. In return, unlile in western countries, where too the tax rates are high, he gets poor governance, poor public services, an insensitive bureaucracy, and absolutely minimal social welfare support (Health and old age support) unless he is a Below the poverty level card holder, and then too he is made to run from pillar to post by an indifferent bureaucracy to get what is rightfully his!  All this, notwithstanding the expenditure incurred on fees of Chartered Accountants for filing income tax returns.

The Centre’s receipts from individual income tax in the last fiscal are estimated at 2.78 lakh Crores (RE 2014-15) and the estimates for the current fiscal have been hiked to 3.37 crores, without any apparent expansion in the base, which needs economic growth to make it happen. These hikes  will happen year on year, and individuals will be squeezed beyond their limits, as Governments spend beyond their means on things and people that they should be conservative about in a government of the people, by the people and for the people – maximizing govt. through a self perpetuating bureaucracy – (the tax bureaucracy is a reminiscent of the British raj) and a political system based on first past the post system -  and minimizing governance – where decisions are taken for the benefit of governments themselves (like elected representatives doubling their salaries and increasing their perks) and not for the people they represent.

Harrassment

The government’s appetite for money increases on a stagnant tax base, can only translate into more emphasis on compliance which results in intentional or unintentional harassment, of the middle class tax payer. There is an army in the background, ready for this challenge, each of them trying to climb the Income Tax’s department’s steep ladder, which when translated from bureaucratese, implies more  harassment of the honest tax payer – the latest example of which, is  a fourteen page IT return form!.  

Govt.’s opaque return on investment

The return on investment is a principle that is followed in all business enterprises – however this is not true of government expenditure especially in the tax collection regime - While budget figures are readily available on the amount of income tax accruing to the government, there is little information to be found on the expenditure incurred – salaries, perks, office expenses, travel expenses and the like – to secure the meager income tax that they generate. My assessment, based on incomplete information would be that it is disproportionate. Indeed if one visits the Income Tax department’s website, in the page on history of income tax, (http://www.incometaxindia.gov.in/Pages/about-us/history-of-direct-taxation.aspx), one will get a clear picture of how and why they expanded and the picture it paints can only give a clear indication  of the what the future holds for an honest tax payer, as their tribe remains stable and government demands increase.  There is also the accountant’s and lawyer’s lobby that seeks to complicate laws to ensure, that their not inconsiderable income is not affected. Perhaps this is an uncharitable view, but one that has the ring of truth to it.  

The income tax conundrum and its solution

The problem with individual income tax as it stands today, is its small base, complex exemption calculations and limited scope for increases, given the political economic environment in which it sustains itself. It needs to be replaced with more transparent system that provides no exemptions, increases the base, makes it equitable and easy to administer, both for the individual tax payer and the government. So what should be done? The answer – abolish income tax altogether and replace it with an expenditure tax – its equitable,  nobody can escape it, it widens the base at one stroke, it’s easy to administer and primarily it works on the premise, that one spends in proportion to his income.

The idea is not new. The direct taxation of personal expenditures for consumption is one of the oldest has been in circulation sing the 17th century.  Many economists have argued that it is the "ideal" form of taxation. The only "perfectly unexceptionable and just principle of income tax", John Stuart Mill contended, is to "exempt all savings". Because savings are excluded from the tax base, its supporters claim that it encourages thrift, which in turn should stimulate investment. Among the most influential work on this theme is by Kaldor who developed the idea of an "expenditure tax" (1955) as a substitute for income tax.

Nicholas Kaldor, in his book 'Expenditure Tax' (1955), argued that the individual's taxable capacity as his "spending power" which includes all the various forms of economic wealth (stocks of wealth as well as recurrent and irregular flows of money) which must be reduced to a common denominator of so much per annum for tax purposes. Also, allowance should be made for differences in individual needs which make some persons more or less able to pay than others with the same spending power.  Kaldor was of the opinion that the  rates of an expenditure tax can be made steeply progressive in order to tax the rich heavily and  institutionalize equity.
The consumption tax, sometimes referred to as a 'spending tax' or 'expenditure tax', is quite like the income tax, with one key difference being that the tax base is expenditure, not income.   

Two issues remain though, the huge quantum of cash transactions in the economy especially in contract work, the real estate sector and the betting sector, which the SIT on Black money estimated to be in the range of Rs: 30000 crores and the issue of a differential corporation income tax as two rates for a single product or service would be hugely difficult to administer.

Can India really do away with income tax?

The above facts present a strong case for doing away with individual income tax. Why should only a particular class be forced to pay taxes? On this ground alone, it would render great political mileage to the political parties supporting/proposing such a change. Poll analysts say that the middle class voted for the BJP in huge nos. and they are the ones who will be thrilled to hear that the government is considering such a move. They would be enchanted with an initiative that reduces their net tax liabilities from existing 60% to 40% overall and eliminates the chances of governmental harassment on some pretext or the other.

How can it be done?

The gross central tax estimated receipts for this fiscal are to the tune of 14.5 lakh crore including the state’s share of approx 5 lakh crore, leaving 9 lakh crore for the centre. The share of direct taxes in this pool is  8 lakh crores (both corporation(4.7 lakh crore) and Individual (3.3 Lakh crore)) and the balance  6.5 lakh crores is to come from direct taxes. What needs to be made up is the share of individual taxes in this scheme, viz around 3 lakh crores. On January 2, last year,  4 months before the general election, Pune-based anti-tax group Arthakranti made a presentation to senior BJP leaders, including Rajnath Singh, LK Advani, Sushma Swaraj, Arun Jaitley, former finance minister Yashwant Sinha and Nitin Gadkari, on simplifying taxation by a flat Banking Transaction Tax (BTT), which was based on the principle of expenditure tax. The biggest criticism of the BTT is that a large fraction of consumption expenditure in India is still cash (83 per cent some estimates in 2011). This is a fair criticism and needs to be addressed.

The answer to this conundrum presents itself in the Goods and Services Tax Bill, currently logjammed in parliament.  GST is a destination based indirect tax that will be levied on the manufacture, sale and consumption of goods and services that subsume all central and state indirect taxes and levies and here lies the opportunity. The centre can easily add on to the GST in the form of a cess or a direct overhead percentage on the goods and services rendered after classifying them into four categories – Basic, essential, fair, and luxury, with basic being exempt from the taxes. 

The empowered committee of finance ministers, has recommended a base rate of around 26%  for the GST to neutralize loss of revenue from indirect taxes of 22 lakh crores (17 from the states and around 5.5 lakhs crores of the centre)  The finance minister has indicated a base rate of around 23% might be feasible initially. Income tax can be add on tax in the range of 0, 3, 5 and 7% for each of the above categories of goods and services, to land up with a max GST rate of between 30 and 35%. 

As regards Corporation Tax, the centre needs to mop up approx 4.7 lakh crores, and differential rates of taxation for corporations, or exempting them as they already pay corporation tax would be a difficult and almost impossible proposition. I would recommend that corporation tax be retained at the lowest possible level viz. 10% flat, and the add on’s be applicable at the same rates across the board.  This would in turn help the government, as company expenditure / purchases whether of raw material or other supplies is easily trackable.  While I’ve presented a conceptual framework, that seems workable and useful all around the devil is in the detail, and it is for the economists and the experts to take it further.

This system will be easier to administer as the GST tax system will already be in place and this will only be an add on tax.  It is better than the BTT in that the tax base will be wider, and  compliance, at least in the organized sector, almost 100%,. It is both equitable and transparent and most of all will eliminate the need for a tax army dedicated to the collection of income tax. It will in addition promote savings which can lead to investment and economic growth.  

It’s an idea whose time has come, and I urge the government to give it a try.
Newskarntaka.com Link: http://www.newskarnataka.com/opinion/its-time-to-abolish-income-tax-but-how#sthash.XpULERkZ.dpuf