Tuesday, April 25, 2006

Gyan Prapti Session 2

How coroporate farming will be bad for the economy

Disclaimer: I am not an economist. This is just my opinion

Bharti has just bought land off a group of farmers and started corporate farming there. They now pay monthly wages to the farmers. Funnily, that reminds me of the concept of 'bonded labour' and the introduction of the Land Ceiling Act.

Anyways, how it is hurting the economy. These farmers usually grow crops that are consumed locally, say for example onions and potatoes etc. When a coroporate takes over the farms, it is not necessary that they continue with the same crop. This is where a problem might arise.

If the corporate chooses to cultivate some exotic crop like say broccoli in a field that once used to cultivate onions. Here is what happens:
1. The supply of onions (a locally consumed crop) goes down
2. There is new supply of broccoli (which is not consumed locally)
3. As a result, the prices of onions might go up

Sounds pretty lame, but when we look at it from the perspective of the corporate, that would acquire a lot of land, it should ring alarm bells.

Plus, these corporates would be earning tax free money! Nahiiii! The rich get richer and the poor get poorer. Damn!


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