Here in tribal hamlets of Vishaka Agency area, especially Paderu division, one of the important cash crops is Rajma (Kidney beans). Locally called ‘Kandulu’, they are grown in vast acreage and there is a good demand from outside world. Some local traders have explored the option of selling this Rajma to bigger traders in markets like Rajamundry, Tuni or Guntur from where the Rajma produce is exported to Northern regions of India, where it is one of the main pulses in their daily diet. But being tribals, they are subject to exploitation of local traders in many ways.
- The traders lend them money at exorbitant interest rates. Usual practice here is for 1000 Rs, they have to return 1500 Rs. That counts to 50% interest rate. The Principal amounts are usually given in June-July period and the collection is during Jan or Feb in the form of Grain. So considering 8 months, the interest rate is 75%.
- The Rajma is measured in Kuncha (a ‘Standard’ vessel of measurement brought by traders) which is supposed to be of volume of 5 kgs, But that Kuncha is never below 5.5 kg. There has been instances claimed by tribals that these Kunchas are more than 6.5 kg. So they lose at least 10% of the commodity giving it for free in volume based measurement process.
- Being in remote tribal regions with off-beat roads and lack of outside knowledge and business acumen, traders set the prices quite low.
- The payments are usually not done in time. Tribals are left with no other option than taking new loans from other traders. The traders who took the produce and earned money give loans to some other tribals in the meanwhile.
There is much more exploitation, but these are some major ones which need to be addressed. I came to know about this practice in 2008 during my Engineering final year when I visited here to review an education project funded by ‘Asha’ an US-based NGO. I found out that APVVU, under PS Ajay Kumar have tried to build a co-operative to break the loans issue by lending money in thrift society format, partial amounts in 10 villages. This project was supported by aid-India and few others, ran successfully for 2 years until a drought and a cyclone hit in these areas for two continuous years respectively and loans were not repaid and eventually on humanitarian grounds, pardoned off and the idea got bust.
But, Witness to this scheme, I have realized the importance of a co-operative here and wanted to interfere somehow in managing the co-operative by working sometime in this area. After my engineering, I joined a job in Essar and later in Vanoord. Life became hectic and I could not spend time except that the dream was still on.
Later in 2012, I decided to quit my job after few life-turning events like cycling trip with Akram Feroze, Kudankulam visit, An economics lecture on Karl Marx and his relevance in present world by Vamsi Vakulabharanam, Reading books like I too had dream (Varghese Kurien), The banker to the poor (Mohammad Yunus), Gram swaraj (Mahatma Gandhi). And work for larger sections of the country.
After quitting my job in late Sept, I wanted to start somewhere and I was exploring various options of what could be done. So, I was volunteering at People’s Biodiversity festival organized by NAPM, ASHA, CSA, Anthra, Gongali etc (parallel to COP-CBD held at Hyderabad), a visit to Mozda village where Michael and Swati are living in a tribal village in Satpura forest and talking to them on their journey of building Mozda collective have made my resolve stronger to work with tribals for some time.
Since I have met Sri PS Ajay kumar in 2007 December at Aid-India annual conference at Parlakhimudi, Orissa, I have been a great fan of him, about his expertise in land issues, Dalit and tribals issues etc. Anyone who listens to his speeches gets mesmerized and will make him a Guru, Such is his oratory talent. So, I have come back to him in Novemeber’2012 and asked if something could be done about the tribal co-operative. He was very happy and gave me few suggestions to start small in 2 or 3 villages by Marketing the produce (Rajma) for better price and I can win confidence of them soon.
So, I chose 3 panchayats where the first thrift society was not implemented. Gemmeli, Vanjari and Bharam and visited 2 hamlets in each panchayat. I was sure, that not all villagers would believe me in the first instance and I had to try harder. All the tribal farmers work in distant fields during the day and return in the evening. So, I used to trek to a village with a volunteer from APVVU who work in that panchayat and reach there by afternoon. Evening around 7pm, In the cold (temperatures are around 7-10*C during nights) and dark (many villages do not have electricity, for those which have, never sure of timings) places, we used to make a bon-fire around which we sat and discussed about Rajma sale, traders tricks, measurements, loans and high interest rates, roads, water problems in the village etc. then I raise the issue of a village becoming a union and sell their produce as a union instead of individual farmers. The idea was good but to believe me was a bigger issue. So, I gave sometime to the villagers (2 weeks) in which they can think about the plan and let the volunteer who accompanied me know and I would come back to work on it if they wish.
Later when I returned on Jan-2, 2013 I heard that 4 hamlets out of 5 have already committed to traders and the trade was already on for a price of 160-165 Rs per Kuncha measurements(supposed to be 5 kgs, effectively 35 Rs/Kg). But one village called Balijapeta was different. There are few farmers who were pro-active and wanted to try out my experiment. I heard from volunteers that they even bought a weighing instrument (Balla kattu / Balance) two years ago after seeing the measurement losses by local trader. I went to this village and on the way, heard that they did not sell a single grain to local traders and they were very keen about this co-operative idea.
My anxiety and tension grew as I have committed to this and being my first responsibility and did not want to lose the opportunity in proving the worth of the union and show them results. There are about 80 families living in the village and this could be my starting point where I can catalyze a change. After my second visit for a day, I heard the harvest of Rajma was still on and would take some more time. I took time to explain the example of Amul, Mulkunoor co-operatives. I also warned them about coffee plantations and other cash crops which are completely under traders lobbies and they could go bust in case of no proper intervention. I also explained my idea of by-passing one or two levels of traders and thus both farmer and consumer getting a better price.
My third visit was on 18-19 Jan, 2013 and I discussed with villagers about various Rajma markets, where it is mainly consumed, the plan of action, I asked if some youth could volunteer in getting a survey done and find out approximately how much produce was there and for the sale of Rajma at a different location. Four people have volunteered. Lingamurthy, Krishna Rao, Jeeva Kumar and Mahesh. I met them after the meeting and gave them a format for survey to find info. Interestingly, I came to know the local traders have sensed the movement and raised the price and the new price was 42 Rs/Kg. I estimated the price would rise further upto 47 or 48 as the produce would be of one trader and no single trader would like to lose the big bonus all at a single shot. I collected some samples from the village and carried them to Hyderabad with me to give it to Mr. Nanda Kumar (Safe Harvest Pvt Ltd) from whom I came to know some more details.
- To give to the next level traders, the grain has to be processed. The impurities have to be removed.
- We need way bills from either ITDA or GCC or Marketing committee to send the produce from the village to anywhere outside. So, I had to collect them somehow and somewhere.
On 27th Jan, when I came back to the village, held a discussion with the team about processing and way bills, they got puzzled. But I have got an idea about processing whether women in the village could be involved in it. They answered there are some Dwakra groups, which can take up this work. So the first issue will be taken care of. For the second issue, we planned to meet GCC office at G. Madugula mandal headquarters and then ITDA centre at Paderu. Next morning, we set off to G. Madugula and found out that the Manager went to meeting at Vizag. Then we headed to GCC head office at Paderu and met Smt. Parvathamma. She is a tribal woman and started her career in GCC as a sales woman. But with hardwork and dedication, achieved many promotions and she became a manager in that office. She was very nice to talk to and explained many things and gave us a purchase price list of many MFP (Minor Forest Produce) and AP(Agricultural produce). She enumerated the benefits of going with GCC which stuck us and personally, I found it very promising. The benefits are
- Rajma (Red) was being procured at 45 Rs/Kg.
- Measurements would be proper in weights.
- Instant cash will be paid unlike the traders who take months together.
- Co-operative loans at less interest rates (9.2% per year) to tribals.
Well, here we come to a point, when there are assured prices and proper marketing channel. Tribals could directly contact her and do the dealings. My intervention need not be there. I asked her permission to give us some time as it a democratic decision of the villagers and we would let her know the next day morning by phone. She promised, she would personally visit the village and talk to villagers if we invite her. We were very happy and came back to village. Once we came back to village and called for a meeting at night and discussed this issue. We came across a new dilemma, a local trader offered 46Rs/kg and another, somebody overheard is planning to give for Rs48/kg. So, the new dilemma is should we go with GCC for 45 Rs/kg, instant cash? Or should we go for 46 (or even 48) Rs/kg, but the cash will be given whenever the trader wishes. Anyways, we planned to invite Smt. Parvathamma garu, Manager from GCC, Paderu to let her talk and see.
So, here I am waiting for her arrival, writing this blog about my first success of 2013. Whatever the villagers decide, they can go by the trader or GCC. My job here is almost complete. First phase work of Under-cover Economist comes to following conclusions.
Conclusions:
- Balijapeta villagers have the courage to try new things and I salute them for the bold steps. They have showed unity, whih won them extra money.
- Traders are playing their games. But being together, farmers have collectively taken decision after good discussions got the ‘demanding power’ into their hands. They have already gained 10Rs/kg (GCC gives 45, initially trader offered 35Rs/kg)
- Measurements will be in weights and not in Kunchas which has 10% loss factor to farmers.
- If they go by GCC, they will get loans from them for less interest rates and can come out of loan-debt trap by traders.
- GCC if it had proper sales people, could have saved lot of tribal farmers in many villages who are in this cyclical trap of loans and exploitative trade practices. My next goal is to popularize them.
- I have personally learnt that Economics is my favourite subject and will read more and more books and experiences to help more farmers to get their better prices.
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