ZNet Commentary

The Suicide Economy Of Corporate Globalisation February 19, 2004

By Vandana Shiva

 

The Indian peasantry, the largest body of surviving small farmers in the world, today faces a crisis of

extinction.

 

Two thirds of India makes its living from the land. The earth is the most generous employer in this

country of a billion, that has farmed this land for more than 5000 years.

 

However, as farming is delinked from the earth, the soil, the biodiversity, and the climate, and linked

to global corporations and global markets, and the generosity of the earth is replaced by the greed of

corporations, the viability of small farmers and small farms is destroyed. Farmers suicides are the most

tragic and dramatic symptom of the crisis of survival faced by Indian peasants.

 

1997 witnessed the first emergence of farm suicides in India. A rapid increase in indebtedness, was at

the root of farmers taking their lives. Debt is a reflection of a negative economy, a losing economy.

Two factors have transformed the positive economy of agriculture into a negative economy for

peasants - the rising costs of production and the falling prices of farm commodities. Both these factors

are rooted in the policies of trade liberalization and corporate globalisation.

 

In 1998, the World Bank's structural adjustment policies forced India to open up its seed sector to

global corporations like Cargill, Monsanto, and Syngenta. The global corporations changed the

input economy overnight. Farm saved seeds were replaced by corporate seeds which needed

fertilizers and pesticides and could not be saved.

 

As seed saving is prevented by patents as well as by the engineering of seeds with non-renewable

traits, seed has to be bought for every planting season by poor peasants. A free resource available

on farms became a commodity which farmers were forced to buy every year. This increases poverty

and leads to indebtedness.

 

As debts increase and become unpayable, farmers are compelled to sell kidneys or even commit

suicide. More than 25,000 peasants in India have taken their lives since 1997 when the practice

of seed saving was transformed under globalisation pressures and multinational seed corporations

started to take control of the seed supply. Seed saving gives farmers life.  Seed monopolies rob

farmers of life.

 

The shift from farm saved seed to corporate monopolies of the seed supply is also a shift from

biodiversity to monocultures in agriculture. The District of Warangal in Andhra Pradesh used to

grow diverse legumes, millets, and oilseeds. Seed monopolies created crop monocultures of cotton,

leading to disappearance of millions of products of nature's evolution and farmer's breeding.

 

Monocultures and uniformity increase the risks of crop failure as diverse seeds adapted to diverse

ecosystems are replaced by rushed introduction of unadapted and often untested seeds into the

market. When Monsanto first introduced Bt Cotton in India in 2002, the farmers lost Rs. 1 billion

due to crop failure. Instead of 1,500 Kg / acre as promised by the company, the harvest was as

low as 200 kg. Instead of increased incomes of Rs. 10,000 / acre, farmers ran into losses of

Rs. 6400 / acre.

 

In the state of Bihar, when farm saved corn seed was displaced by Monsanto's hybrid corn, the

entire crop failed creating Rs. 4 billion losses and increased poverty for already desperately poor

farmers. Poor peasants of the South cannot survive seed monopolies.

 

And the crisis of suicides shows how the survival of small farmers is incompatible with the seed

monopolies of global corporations.

 

The second pressure Indian farmers are facing is the dramatic fall in prices of farm produce as a

result of free trade policies of the W.T.O. The WTO rules for trade in agriculture are essentially

rules for dumping. They have allowed an increase in agribusiness subsidies while preventing countries

from protecting their farmers from the dumping of artificially cheap produce.

 

High subsidies of $ 400 billion combined with forced removal of import restrictions is a ready-made

recipe for farmer suicides. Global prices have dropped from $ 216 / ton in 1995 to $ 133 / ton in

2001 for wheat, $ 98.2 / ton in 1995 to $ 49.1 / ton in 2001 for cotton, $ 273 / ton in 1995 to

$ 178 / ton for soyabean.  This reduction to half the price is not due to a doubling in productivity

but due to an increase in subsidies and an increase in market monopolies controlled by a handful of

agribusiness corporations.

 

Thus the U.S government pays $ 193 per ton to US Soya farmers, which artificially lowers the price

of soya. Due to removal of Quantitative Restrictions and lowering of tariffs, cheap soya has destroyed

the livelihoods of coconut growers, mustard farmers, producers of sesame, groundnut and soya.

 

Similarly, 25000 cotton producers in the U.S are given a subsidy of $ 4 billion annually. This has

brought cotton prices down artificially, allowing the U.S to capture world markets which were

earlier accessible to poor African countries such as Burkina, Faso, Benin, Mali. The subsidy of

$ 230 per acre in the U.S is genocidal for the African farmers. African cotton farmers are loosing

$ 250 million every year. That is why small African countries walked out of the Cancun negotiations,

leading to the collapse of the W.T.O ministerial.

 

The rigged prices of globally traded agriculture commodities are stealing incomes from poor peasants

of the south. Analysis carried out by the Research Foundation for Science, Technology and Ecology

shows that due to falling farm prices, Indian peasants are loosing $ 26 billion or Rs. 1.2 trillion annually.

This is a burden their poverty does not allow them to bear. Hence the epidemic of farmer suicides.

 

India was among the countries that questioned the unfair rules of W.T.O in agriculture and led the G-22

alliance along with Brazil and China. India with other southern countries addressed the need to

safeguard the livelihoods of small farmers from the injustice of free trade based on high subsidies and

dumping. Yet at the domestic level, official agencies in India are in deep denial of any links between

free trade and farmers survival.

 

An example of this denial is a Government of Karnataka report on "Farmers suicide in Karnataka - A

scientific analysis". The report while claiming to be "scientific", makes unscientific reductionist claims

that the farm suicides have only psychological causes, not economic ones, and identifies alcoholism

as the root cause of suicides. Therefore, instead of proposing changes in agricultural policy, the report

recommends that farmers be required to boost up their self respect (swabhiman) and self-reliance

(swavalambam).

 

And ironically, its recommendations for farmer self-reliance are changes in the Karnataka Land

Reforms Act to allow larger land holdings and leasing.  These are steps towards the further decimation

of small farmers who have been protected by land "ceilings" (an upper limit on land ownership) and

policies that only allow peasants and agriculturalists to own agricultural land (part of the land to the

tiller policies of the Devraj Urs government).

 

While the "expert committee" report identified "alcoholism" as the main cause for suicides, the figures

of this "scientific" claim are inconsistent and do not reflect the survey. On page 10, the report states in

one place that 68 percent of the suicide victims were alcoholics. Five lines later it states that 17 percent

were "alcohol and illicit drinkers".

 

It also states that the majority of suicide victims were small and marginal farmers and the majority had

high levels of indebtedness. Yet debt is not identified as a factor leading to suicide. On page 32 of the

report it is stated that of the 105 cases studied among the 3544 suicides which had occurred in five

districts during 2000 - 2001, 93 had debts, 54 percent had borrowed from private sources and

money lenders.

 

More than 90% of suicide victims were in debt. Yet a table on page 63 has mysteriously reduced debt

as a reason for suicide to 2.6%, and equally mysteriously, "suicide victims having a bad habit" has

emerged as the primary cause of farmers suicides.

 

The government is desperate to delink farm suicides from economic processes linked to globalisation

such as rise in indebtedness and increased frequency of crop failure due to higher ecologic vulnerability

arising from climate change and drought and higher economic risks due to introduction of untested,

unadopted seeds.

 

This is evident in recommendation no. 4.3.24.3 "The government should launch prosecution on the

responsible persons involved in misleading the public and government by providing false information

about farmers suicide as crop failure or indebtedness" (page 113 of expert committee report).

 

However, farmers suicides cannot be delinked from indebtedness and the economic distress small

farmers are facing. Indebtedness is not new. Farmers have always organised for freedom from debt.

 

In the nineteenth century the so call "Deccan Riots" were farmers protests against the debt trap into

which they had been pushed to supply cheap cotton to the textile mills in Britain. In the eighties they

formed peasant organisations to fight for debt relief from public debt linked to Green Revolution inputs.

 

However, under globalisation, the farmer is loosing her / his social, cultural, economic identity as a

producer. A farmer is now a "consumer" of costly seeds and costly chemicals sold by powerful global

corporations through powerful landlords and money lenders locally.

 

This combination is leading to corporate feudalism, the most inhumane, brutal and exploitative

convergence of global corporate capitalism and local feudalism, in the face of which the farmer

as an individual victim feels helpless. The bureaucratic  and technocratic  systems of the state are

coming to the rescue of the dominant economic interests by blaming the victim.

 

It is necessary to stop this war against small farmers. It is necessary to re-write the rules of trade in

agriculture. It is necessary to change our paradigms of food production. Feeding humanity should not

depend on the extinction of farmers and extinction of species. Another agriculture is possible and

necessary - an agriculture that protects farmers livelihoods, the earth and its biodiversity and

public health.