Once in a while, you come across a book which makes you pause and think. Accidental Gamblers: Risk and Vulnerability in Vidarbha Cotton (Cambridge University Press) by Sarthak Gaurav and Thiagu Ranganathan is one such book.
Accidental Gamblers: Risk and Vulnerability in Vidarbha Cotton by Dr. Sarthak Gaurav and Dr Thiagu Ranganathan. Publisher: Cambridge University Press. Photo: Amazon.in.
Dr. Gaurav and Dr. Ranganathan are Associate Professors of Economics at IIT Bombay and Centre for Development Studies Thiruvananthapuram respectively. The book is based on 12 years of study and primary research in villages in Wardha and Yavatmal districts in Vidarbha, from 2009 to 2021. Even though the title mentions cotton, the authors have covered the rural economy of other crops also. The research was funded by the Indian Council of Social Sciences Research (ICSSR) and IIT Bombay.
This precious book is proof that investment in research is useful for policymaking. Having been in bureaucracy (IAS) for long years and then in a think tank (ICRIER) for six years as a researcher, I realise that both the Union and state governments spend huge amounts on advertising but allocate very few resources for social science research. At one point in time, the UPA government had decided to prune the funding of the Agro Economic Research Centres (AERCs) of the Ministry of Agriculture. Fortunately, the decision was reviewed and reversed.
The authors of this book proclaim that reflexivity has enabled them to think critically and listen carefully. This is what makes this book a great read.
The book starts with a brief history of Vidarbha and goes into Vedic, Sultanate, Mughal, and Colonial periods. There are 177 references in this chapter alone and history buffs will find it quite interesting.
The colonial interest in textile manufacturing led to the setting up of the Cotton Supply Association in 1857. Between 1861 and 1865 the cotton prices grew manifold and the farmers were enthused to grow cotton. The setting up of the Bombay Stock Exchange in 1875 has also its origin in the cotton trade. Since then, cotton has been grown in the region despite enormous ups and downs.
The authors not only spent a long time in the villages they studied but even installed six Automatic Weather Stations (AWS).
In the chapter on fieldwork, interesting demographic changes have been discussed, and it is confirmed that farmers are finding it difficult to find grooms for their daughters. They quote a case where a farmer could find a bride only on the assurance that he will start a poultry business after marriage!
The authors point out that the state government has been promoting animal husbandry in Vidarbha and scientific value chains for goat meat. Goats found a ready market on the recently celebrated Eid-ul-Azha.
There are interesting insights into the credit market accessed by the farmers. For the credit on informal loans, the farmers pay Rs 150 at the time of harvest for a loan of Rs 100. The authors find that the farmers pay interest of Rs 5 or 10 per month (60 to 120 percent per annum!) and it is calculated after the return of principal. A comment of farmers quoted by the authors is relevant to current times:
“Whatever be the form of credit, the informal lenders have lower NPA than the big banks lending out thousands of crores to scrupulous defaulters.”
Maharashtra enacted Money-Lending (Regulation) Act in 2014 and interest rates are capped at 12% for secured loans and 15% for unsecured loans. But moneylending operations at the usurious rates mentioned above continue.
In the Chapter titled ‘Gamble of Farmers’, there are interesting insights into cropping patterns. The preference for cotton in place of ‘jawari’ (sorghum) and the preference for soybean in place of cotton brings a fresh perspective to the process of decision-making by farmers. At least seven reasons have been given for preference for soybean in place of cotton and sorghum. This chapter also includes the study of income earned by sampled farmers.
In a counterintuitive finding, the authors find that non-farm income decreased from Rs 1,541 per month in 2011-12 to Rs 1,078 in 2019-20. Despite the efforts of the government, the opportunities for non-farm income are limited in the region even though goat rearing and poultry are gaining popularity.
Also read: Rising Farmer Suicides Leaves Families Adrift as Vidarbha Grapples With Multiple Crises
In a depressing finding, the authors find that the cost of cultivation has been rising faster than the revenue per acre. However, cotton gives more income than other crops. The prospects of higher profits continue to motivate farmers to grow cotton even if there are losses in some years. In the sample of authors, the yield of cotton doubled between 2010 and 2017 but it went down by 2020 due to Pink Bollworm (PBW).
The most revealing and disturbing chapter of the book is titled ‘Inputs in the Cotton Gamble’. It traces the history of Bt cotton in the region and the legal battles between Monsanto and the governments, leading to Cotton Seed Price (Control) Order 2015 under the Essential Commodities Act 1955. At the moment, the real story is the rampant use of spurious and counterfeit Bt cotton seeds sold across India. The field research of the authors confirms that seeds of herbicide-tolerant Bt Cotton (HTBt) are being openly sold even though it is not approved by the government and Monsanto had withdrawn its application for GEAC clearance. More worryingly, the authors point out that the input dealers sold seeds of soybean, chana and tur as cotton seeds in Yavatmal district.
In order to regulate the trade in seeds, a Seed Bill has been under discussion for about 19 years. The authors wrongly mention that the draft Seed Bill 2019 has been passed. So contentious is the legislation on seeds and so diverse are the demands of various players that it was first introduced in 2004 with an aim to regulate the quality of seeds sold, and to replace the Seeds Act, 1966. In this long period, successive governments have not been able to build a consensus on the regulation of seeds.
The authors’ description of the use of pesticides should be a compulsory reading not only for Agriculture Officers of the states but also for the IAS and PCS officers who manage the district administration. Despite the ban on monocrotophos for vegetable and food crops, its sale is rampant. More worryingly, the farmers use a cocktail of pesticides, a term used for insecticides, weedicides, herbicides and plant growth promoters. Half of the pesticides are sold to farmers on credit and input dealers have emerged as the most important source of agricultural extension. One hopes the Pesticide Management Bill presently under consideration by the Parliamentary Standing Committee of the Ministry of Agriculture will result in better regulation of the manufacture, sale, and use of pesticides.
Punjab State Farmers’ and Farm Workers’ Commission headed by Ajay Jakhar had recommended that only those pesticides should be licensed for use in the state which are included in the packages of practices recommended by Punjab Agriculture University. Barcoding of pesticides was also recommended. But the state found that the regulatory powers are vested with the Union government.
The regulation of pesticides sale should be a top priority for both the Union and the state governments, as it is feared that their residues in the food chain may be a cause of several serious diseases. This is also necessary for the export of food as developed nations like the EU and the US have stringent regulations about the residues of pesticides. For example, European Union reduced the maximum residue limit for Tricyclazole from 0.10 PPM (parts per million) to 0.01 PPM on December 31, 2017.
The chapter on Risk and Vulnerability tellingly points out that “the gamble with cotton continues to be a gamble with the rains and gamble with the markets”. The impact of WTO’s agreement on agriculture on global trade is also an important contributor to low prices due to high subsidies by the US.
Those bothered by the assurance of MSP in Punjab would be enlightened if they read this chapter.
The conclusion of the book itself runs into 30 pages. Those pressed for time must read at least this chapter.
The officers posted in agriculture and allied departments of both the Union and state governments will find this book highly illuminating. I hope that officers posted in the Vidarbha region will find it of great value.
Researchers and academics will also be inspired by this meticulous fieldwork. If research leading to Ph.D. in various institutions can produce work of similar quality, it will be of enormous help to governments in the formulation and implementation of policies.
I must give credit to IIT Bombay which provided funding for this research. I wish that other IITs and IIMs will also give importance to teaching and research in humanities.
I hope that top policymakers will be inspired by this book to substantially increase the research grant to universities and institutions.
Siraj Hussain is a former Union Agriculture Secretary. For six years, he was Visiting Senior Fellow at ICRIER.
