Farmers in the country's agricultural powerhouse of Punjab are up in arms after suffering three back-to-back losses over the last 18 months. Unlike the first two losses, which were blamed on the vagaries of the weather, the latest damage to the cotton crop is being attributed to man-made reasons.

A huge portion of Punjab's cotton crop has been destroyed by a notorious pest called whitefly, which bred easily this year because of a prolonged dry spell in August. Farmers attempted to combat the insect attack with a pesticide subsidised by the government, only to find that it was ineffective.

Even though the government has been claiming that it has little role to play in a crisis caused by an attack of pests and compounded by the lack of rainfall, it has suspended its Director Agriculture M S Sandhu and have registered a case against him for aiding the sale of the low-quality pesticide. Sandhu was arrested on Monday. The authorities claim that he had recommended subsidies for a particular brand of pesticide that was found to be ineffective.

Corruption allegations

The Congress party leader in the Punjab Assembly, Sunil Jakhar, claimed that the government's decision to grant subsidies to this low-quality pesticide had cost the exchequer Rs 33 crore. He alleged that the government had approved the pesticide at a higher-than-market price without inviting competitive bids and has demanded an independent inquiry into the deal.

Punjab is the country's fourth-largest cotton producing state but has the distinction of producing the  highest yield per hectare: 800 kilograms. The state has 4.5 lakh hectares under cotton. While the government estimates that 30% of the crop has been damaged, the farmers' union say that the devastation is much more widespread.

The farmers, backed by several organisations including the influential Bharti Kisan Union, have been protesting for about a month now and on Wednesday started a two-day rail roko agitation that has disrupted railway operations in the state. The unions claim that at least 15 cotton farmers have committed suicide over the past month and say that the compensation announced by the government does not even cover the investments made by the farmers in sowing the crop this year.

The farmers are demanding a compensation of at least Rs 40,000 per acre and Rs 20,000 to each farm labourer for the losses suffered, while the state government has announced a compensation of only Rs 8,000 per acre. The farmer unions are also demanding a complete waiver of the debts for farmers and farm labourers; the implementation of the recommendations of the Swaminathan report on farm distress that the Bharatiya Janata Party, a coalition partner in Punjab had promised in its manifesto; and compensation of Rs 5 lakh to the family of each farmer who has committed suicide.

A string of problems

The cotton crop problems followed the enormous damage to the wheat crop in February and March due to incessant rainfall. Last year, Punjab's had to invest a huge amount to nurse the paddy crop because the drought-like situation in the state. They did not receive any compensation for these two situations. As a result, the latest crisis has proved too heavy a cost for many of them to bear.

Punjab Agricultural University, which is supposed to help the farmers and develop new varieties of seed, has further enraged the farmers by blaming them for throwing caution to wind by purchasing poor quality seeds and growing varieties that have not been approved by the institution. Punjab had witnessed a boom in cotton production after the government allowed sale of BT cotton seeds in 2002 but the success made the cotton growers, agricultural scientists and the officials complacent. Agriculture experts point out that the University has failed to develop better varieties of crops. The University, in turn,  blames its problems on the lack of research funds from the government.

The rail roko agitation is not likely to resolve the issue, given the obvious anger of the farmers. The Shiromani Akali Dal, the other coalition partner in the state government, had won a considerable number of seats from its stronghold in the Malwa belt. With assembly elections less than a year-and-a-half away, it knows it cannot alienate Punjab's farmers.