Thursday, November 13, 2014

My five cents: Reforms -II


Thought for the day
"The water in a vessel is sparkling; the water in the sea is dark. The small truth has words which are clear; the great truth has great silence."
-          Rabindranath Tagore (Indian, 1861-1941)
Word for the day
Suasion (n)
The act of persuading; persuasion.
(Source: Dictionary.com)
Teaser for the day
Kidnapping, rape and murder in Uttrakhand, "the Abode of God", is unfathomable.
Something is going seriously wrong somewhere!

My five cents - Reforms II

On my recent trip to the state of Uttar Pradesh, I had a chance to visit some villages in interiors of the eastern part of the state. As widely acknowledged, this region figures in the bottom 10% in terms of economic development. It was shocking to see that despite plenty of water, fertile soil, hard working people, and rich cultural & historical traditions, the people here live in pathetic conditions. Many are forced to migrate to large cities to work as laborers. The administration is callously indifferent and mostly absent.
Wandering through the villages I discovered that most upper caste households have milk yielding cattle in their home while dalits and backward caste people do not have such assets. I observed that in each household about 4-5 man hours are spent on tendering, milking and feeding the cattle. In many cases children as young as 8-10yeras were spending half their day taking cattle for grazing, instead of going to school. The average milk yield is not more than 5-6ltrs per day, which is mostly used for self consumption. The cow dung is a major source of cooking fuel.
In my view, the kind of economic reforms we talk about sitting at Raisina Hills or Nariman Point may not be of too much relevance to these people. To improve the lives of these people, we need to find local solutions.
Let me suggest an example that I worked on after coming back from this trip:
The government should motivate and facilitate a cooperative dairy in each village of the state.
(a)   In this cooperative the Gram Sabha may contribute 100 acres of land.
(b)   Each household in the village contributes its cattle.
(c)   The household which do not have cattle may be subsidized (50% subsidy, 25% equity and 25% bank loan) to buy and contribute cattle. The optimum size of a cooperative dairy could be 1000 cattle.
(c)   The land will be used for constructing a mechanized dairy, biogas plant, milk processing unit, growing cattle feed and a water reservoir. The construction work could be taken under MNREGA. The required plant and machinery may be financed at the prescribed concessional rate for agriculture loans (presently 7%).
(d)   With proper feed and technique, the average yield of the cattle could be improved to 10ltr/day in two years and 20ltr/day in five years.
(e)   Each dairy could thus produce 10,000 litter of milk every day. Each member household could be provided 2 litter milk at Rs10/ltr and rest could be processed and sold in the market. (CMP Rs40/ltr)
(f)    The dairy will produce 10,000 kg of cow dung daily, that could be used to produce electricity for running dairy, biogas plant, milk processing unit, a water pump to fill water reservoir, a community kitchen where all villagers can come to cook their meal, and a charging station where villagers could charge their LED lamps provided by the government.
(g)   In five years, the plant could supply electricity for basic needs (2 LED bulbs and 2 fans) to each household.
(h)   The plant will produce 35-40000kg of organic manor every day, a part of which could be sold to members at subsidized rates and rest in the market. The income from this could be used to set up, run school and primary health center in the village and lay pipeline for supplying clean water from the reservoir to each household. In 10yrs, each dairy would be able to produce enough CNG to run two busses from village to nearest city for subsidized public transport.
(i)    The government may support marketing of milk and milk products, establishing a breeding centre in each district to develop high yielding variety, and a veterinary hospital in each district.
(j)    In each such dairy up to 20% of its productive population, stray cattle from nearby cities and towns could be housed.
To some this idea may sound little utopian or impractical, but my research suggests that it is financially viable and socially & politically feasible.
The advantages could be multifold.
·         The project serves the primary purposes of economic development - self employment, self-reliance, prosperity, fiscal prudence, rise in household income, equality, improvement in quality of life etc.
·         The sentiment of cooperation takes root over a period of time, promoting social harmony, and scope for more cooperation say in the areas of farming, cottage industry and trade.
·         Children could go to school instead of rearing and tendering cattle and fetching drinking water.
·         Women could work at the dairy, biogas plant, milk processing unit rather than milking cattle, managing cow dung and fetching drinking water.
·         Villagers get clean water and energy at home, sufficient milk and decent income, besides good basic social infrastructure in the village.
·         Agri productivity and income could be enhanced by using organic manor at a reasonable cost.
·         The cleanliness of villages and nearby towns is improved as all cattle (including stray) are managed at a central place and their waste processed profitably.
·         Regional disparities get resolved over a period of time.
·         Resources are used optimally.
·         With self reliance growing - the fiscal pressure eases structurally, over a period of time.
Lest the primary message is lost, I may reiterate that my suggestion here is that reform need to change the status quo, which may not be the same in Banda and Bengaluru.

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