The debt trap

By Jaspal Singh,

Punjab is considered to be one of the most prosperous states in India.A study came out a few days ago that states that 98% of rural households are in debt.The average amount of debt per household is close to 5 Lakh Rupees. The report points out that more than half of the debt is to non institutional lenders,the Arhtias,the middlemen and money lenders.Small and marginal farmers can not go to the banks and other lending institutions,so these loansharks charge them interest rates upto 60% per annum on the amounts borrowed which is annually compounded.


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There is no way that rural households can come out of this debt.Why is that Punjabi farmers that produce so much grain that Punjab has come to be known as bread basket of India,why are these producers in so much debt?Why is it that all the wealth that is produced in the rural areas of Punjab ends up indebting the farmers?what happens to all this wealth? Where does it disappear?Why does this wealth not improve the conditions of the villagers and the villages?


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To understand what is happening in Punjab we have to understand Green revolution and how it works.Green revolution was a mechanism developed by the chemical companies and banks in the west to transfer wealth from countryside to a few hands. After the Second World War there was a huge stockpile of chemicals that these chemical companies were holding.They saw agriculture as a vast market for these chemicals .Banks saw great scope in expansion of their markets in countryside.This whole process that started around fifty years ago in Punjab has now yielded its predictable results.In other countries also where ever such green revolution has taken place,it has resulted in the same results.A few big landlords and corporations have become tremendously rich while the mass of rural population has become greatly indebted.Millions are forced to abandon agriculture.

No matter which party comes in power,it is the same trend and direction.In Punjab,Congress party was in power before and for the last ten years,an alliance of Akali party and BJP has been in power.Just like the Congress party before,Akali party leadership is dominated by big landlords and BJP leadership is dominated by moneylenders and other money interest.These handful of ruling elite have amassed a great amount of wealth while masses of rural household have come in great debt.Green revolution has done its job.

Punjab is mostly an agricultural state majority of people still live in the countryside and depend on agriculture.Neither the central government nor the state government has any ideas or plans to regenerate the countryside which is collapsing under debt,unemployment and lack of basic amenities.

A recent study found that 70% of the youth do not see any future in Punjab or in agriculture.They are eager to leave and go to the greener pastures if they can find them at any cost.At the same time with the use of chemicals water and earth have become greatly polluted and poisoned causing disease, death and destruction.

Almost one hundered years ago,Punjabi farmers rose up against moneylenders and Arhtias.They burnt their-Bahis-the account books.Ajit Singh,Chhotu Ram and Lala Lajpat Rai became leaders of this movement.May be once again it is time for such a movement and to work out a vision and plan for regenerating the rural economy.

The present model of development touted by Mamnohan Singh and Modi has proven to be a disaster in Punjab, in other parts of India and the world.It is a recipe for Vinash of humans and nature and not Vikas.

There are new forces that are challenging this paradigm and are calling for community control of natural resources to regenerate the rural economy.They are calling for Jal,Jungle,Jamin and Khanij to be used to fulfill the needs of people and not indebting them.People of India have to work out such alternatives.They have to take these matters in their own hands and not leave them in the hands of those who promise them Vikas and Acchey Din with the winds of election,while they keep getting indebted in spite of great wealth being generated by them.

Another Punjab ,another India and another world is possible.


Jaspal Singh is based in Cambridge, Massachusettes.

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