Small and Marginal grain growers have been braving the severe cold and chilly winds for the last sixty days in their battle to seek repeal of new legislations. The NaMo government has expressed its willingness to concede every demand except the ultimate demand for repeal. The government showed its willingness to keep the new legislations in suspension. No government can surrender its authority to legislate. Farmers suspect the government intention to withdraw the Food Corporation from the grain sector that has volume of business to the tune of one point two million crore rupees. It led to belief in many circles that Prime Minister was keen to open gates of the sector for his two industrialist friendly groups.

The NaMo government has been consistently replacing public sector by private operators. It should make a little difference. But the Food Corporation has been serving in two purposes, one of assuring delivery of guaranteed minimum prices to farmers and also feeding needed grain for Public Distribution System at the lowest possible prices as a succor to lower classes. The union government was paying from its exchequer for the annual losses for grains release for the PDS. The PDS grains became essential part of food needs for population below poverty since 1970 after the Green Revolution eradicated the need for food imports. To assure farmers the return for their labour in achieving objectives of the green Revolution to liberate the annual humiliation of standing at the door steps of rich nations with a begging bowl, the Indira Gandhi government pushed the FCI in the grain market to assure farmers that they will get the declared minimum prices.

At the same time the Food Corporation food stocks were used to supplement the PDS needs though the corporation had to incur huge losses due to wide difference in what it paid to farmers for their grain and the realized prices for food stock released for PDS. The Union government made good for price differentials plus the freights, the storage expenses.

The NaMO government has for the last three years constrained role of FCI in the grain markets. For last three years, the greater presence of private sector traders had disturbed balance that had ensured realisation of minimum price to farmers regardless of quality of their grain. For three years Punjab farmers who contributed nearly nine million tonnes were complaining of lesser than minimum prices paid to them. But their groaning remained unattended both by government and media. The Akali Dal having lost power to the Congress in Punjab blamed it to the state government and the BJP had no inclination to take note of the rural Punjab as it had ensured the party defeat. Punjab farmers incited by the 4 lakh brokers who were also sought to be eliminated by one of three legislations got in the battlers’ mood against return of markets to the pre 1970 conditions. Farmers have indirect support of rich farmers who contribute 80 per cent of marked grain. As they frowned their displeasure the Akali Dal had to break away from National Democratic Alliance after 22 years. Even otherwise their alliance with the BJP in Punjab had run in rough weather even before the state assembly polls due to the BJP’s open demand for it’s turn to have its chief minister as the Akali Dal had the post for three terms. Even otherwise the Akali Dal could not have stayed in alliance after the rich farmers’ displeasure over handing over the grain market to private sector.

For Punjab, the displeasure is not over three new legislations but the inherent move in it to replace the public sector by private trading interests. Wealthy farmers do not make difference whether they will be friends of the Prime Minister or big foreign players. They are similar striped wild beings that make no exceptions in their choice of victims. For the Prime Minister it is not merely the issue of his authority to legislate. But his acceptance of defeat would deter other investors as well from bringing their capital to park in India.

The Nehru government had created 120 public sector enterprises in two years after taking the route of commanding heights to public sector for rapid economic development but 89 made heavy losses to become burden for the national exchequer. Over the years some behaved as Nav ratna to run their assigned functions efficiently. For three decades governments adopted the policy of disinvestment in loss of making units. That turned some Nav Ratnas also into loss making enterprise like the Airlines and the telecommunications. The Mahanagar Telephone Nigam run in losses after it lost its monopoly in phone services and the aviation company even after merger of domestic and international services continues to run in heavy losses. The public sector services had turned into drains not throwing out garbage but inflowing corruption and mismanagement.

The classic example was the Indian Airlines. Even the car driver as getiug Rs, sixty thousand as monthly salary but were puting in service of two hours a day. IT compelled the company to pay huge monthly bills for hiring private taxies to ferry its pilots and hostesses to and fro to airport and their homes. The management could not discipline its employees as they had protection of the constitution. Instead of improving the functioning the NaMo government is converting them to be white elephants in he door as show pieces of the mismanagement by the previous regimes.