The nationwide lockdown in response to the COVID-19 pandemic has fueled a mass migration leaving millions jobless, local supply food chains disrupted, safety and food security compromised, surplus food perished or destroyed, loss of rural income and harvesting season now at risk.
Hundreds-of-thousands of migrant laborers having lost their jobs are now fleeing cities. While most are stranded, others have opted to make the long trek back to their villages on train tracks and highways with no access to food and water. The harrowing plight of the workers were repeatedly highlighted in reports and TV Channels showing images of them clutching small bundles of their personal belongings, toddlers on shoulders, the elderly dragging their feet with walking sticks, few beaten for breaking the social distancing rules and groups of migrants hosed down with disinfectants. It has also been painfully fatal for some due to starvation, heat stroke, exhaustion, suicide and accidents. Recently, more than a dozen migrants were run over by a goods train in Aurangabad and in another case a 12- year-old girl died after having walked 150 kms.
Tens and thousands of workers in Noida were literally on the roads, exposed and vulnerable and several others hurdled along the banks of the Yamuna living in deplorable conditions. Many of the migrants returning homes were denied entry for fear of contagion.
Having lost the backbone of our supply chain, farmers have taken the extreme step of destroying their produce. News related to fruits and vegetables dumped on roadsides, milk disposed into canals and crops set on fire featured in national newspapers.
Mission Samriddhi, a social impact platform based in Chennai, works towards strengthening of Gram Panchayats with a special focus on holistic development of rural India. The platform along with the Agriculture Entrepreneurs Consortium (AEC) shared some invaluable insights on the ground realities of farmers, daily wage earners and landless laborers in Maharashtra – the worst affected state due to Covid-19 pandemic.
Following the announcement of the lockdown, the Finance Minister on 26 March 2020 declared a Rs. 1.70 lakh crore relief package under Pradhan Mantri Garib Kalyan Yojana (PMGKY) to ease the burden over the next three months. But the catch is, all schemes announced under the relief package are not new with few already being part of existing schemes modified to transfer benefits.
| New Schemes under the PMGKY Package |
| Insurance Scheme – coverage of Rs. 50 Lakhs each for healthcare workers and professionals |
| PM Garib Kalyan Anna Yojana Scheme – 5 kg of wheat or rice and 1 kg of preferred pulses for free to the poor |
| Ujwala Scheme – Gas Cylinders for BPL families free of cost |
| Support of Rs. 1000 ex-gratia payment to all Senior Citizens, widows and the disabled |
| PM Jan Dhan Yojana Scheme – An ex-gratia of Rs. 500 to all women account-holders |
| Under the MNREGA – wages to be increased by Rs. 20 from Rs. 182 to Rs. 202 per day |
| Prime Minister Citizen Assistance and Relief in Emergency Situations (PM-CARES) – payment of PF to low wage earners in organized sectors. The Government will also pay the EPF of both employer and the employee to Establishments with up to 100 employees earning less than Rs. 15,000 per month |
| Already existing Schemes under the PMGKY Package modified to transfer benefits |
| Building and Construction Workers Welfare Fund created under a Central Government Act – to utilize the funds of approximately Rs. 31,000 crore to provide assistance and support for these workers |
| PM Kisan Yojana Scheme -an advance of Rs. 2000 to the farmers |
| Under the Deen Dayal National Livelihood Mission – loans doubled to Rs. 20 lakhs for the Self-help Groups |
| District Mineral Fund – to be utilized for developing facilities for medical testing, screening and others towards prevention of the spread of COVID-19 |
In addition, the Reserve Bank of India (RBI) announced agricultural term and crop loans granting a moratorium of three months with 3 percent concession on the interest rate of crop loans up to Rs. 300,000.
In spite of the entire food supply chain having been classified as ‘essential’ and exempted from all restrictions, the agriculture sectors are continuing to face unique challenges. In the guidelines for the extended lockdown, the Central Government announced that agricultural and related activities will be permitted to stay fully operational with the exception of the containment zones. This is far from reality and farmers in Maharashtra fear the most.
With the breakdown in the supply chain and closure or limited access to mandis, farmers are unable to sell their produce, resulting in loss of income. The shortage of machinery due to restrictions in inter-state movements, no access to seeds and fertilizers, dip in prices, coupled with an erratic weather have all added to the plight of the farmers.
The National Food Security Act for supply of food grains show gaps in delivery to the urban and rural poor, inadequate quantity and omission of certain remote areas. Ration card holders in Maharashtra are not permitted to withdraw in advance due to logistical constraints.
With loan waivers and credits from Banks still debated, farmers are in desperate need of cash flow. With tougher restrictions and higher number of containment zones in Maharashtra, Gujarat and Rajasthan, the government has failed to maximize opportunities under MGNREGS.
Traditional responses are clearly outdated and the need of the hour is to view the challenges as opportunities by introducing new systems, structures and interventions to bring significant risk mitigation benefits and business opportunities. Listed below are few opportunities that government and related agencies can consider.
Decentralize procurement and local food economy
The Agriculture Produce Market Committee (APMC) can relax its norms to help farmers sell their produce directly to the customers. Consider warehousing as alternative to APMC’s point of sale and cluster mandis. Specific days can be allocated announcing and displaying names of the villages. Agent charges can be fixed.
Leasing space in warehouses
Leasing space in warehouses and cold storages for farmers and linking them to warehouse receipts or pledge loans. Farmers can donate the surplus to Food Banks and other feeding programs and are provided assurance of procurement, funding and resources.
Direct cash transfers
Direct cash transfers under the PM-Kisan scheme can extend its ambit to cover landless agricultural laborers. Crop Insurance can be paid directly to farmers and Banks can offer new credits with zero percent interest with restructuring of earlier dues.
Explore leveraging NREGS funds
Explore leveraging NREGS funds to pay part of the farm labor while ensuring wage employment to the landless laborers and workers. The ‘One Nation, One Ration Card’ scheme is scheduled to be launched next month. The Government can provide and adequately support farm inputs at MSP (minimum support price).
Rural farms to work in partnership with Urban farms
Scale-up farm and agricultural technologies with data driven decision-making processes. Establish network linkages between farmers. Introduce the concept of Labor Bank which could also help laid-off workers find jobs. Dedicated toll-free helplines/call centers in local and vernacular languages to provide guidance and address grievances of farmers.
Consider a holistic approach to deal with the inevitable climate change
Reduce greenhouse gas emissions, waste water treatment and potentials to reduce water-use in agriculture, soil conservation methods, reducing machinery fuel use and installing small-scale renewable energy such as solar and geothermal. Municipal Solid Waste Compost could be an alternative for traditionally used Farm Yard Manure.
The COVID-19 lockdown has managed to create an unprecedented livelihood dislocation which could slowly turn into a major humanitarian crisis. Efficiently addressing all the critical issues that plague our agricultural sector is priority.
