The rise of rice politics

“Three measures of rice for one rupee.” This was the famous election promise that brought the CN Annadurai-led Dravida Munnetra Kazhagam (DMK) to power in Tamil Nadu in 1967. However, the party could not deliver on the promise. It was able to give only one measure of rice at one rupee in the state's ration shops. Annadurai, a great juggler of words, managed to salvage the situation with an explanation, “Three measures for one rupee is our future goal. But one measure for one rupee is certain now.” Since then rice has become an important word in the political discourse of successive governments in the state.

MG Ramachandran expanded the free noon meal scheme for school children introduced by Congress chief minister K. Kamaraj and re-christened it the 'Nutritious Meal Scheme'. During his 13-year reign as Tamil nadu chief minister, MGR was hailed by certain quarters as a great philanthropist thanks to his free schemes. In fact, he was often sycophantically compared to the great philanthropist kings of the Sangam age.

But in 2006, when the DMK patriarch M. Karunanidhi became the chief minister for the fifth time, he took a step that was hitherto considered impossible. He reduced the price of rice to Rs 2 per kg in the ration shops. After two years, he further reduced the price to Re 1 per kg. Now, AIADMK supremo J. Jayalalitha, who had said in 2006 that there was no way rice could be sold at Rs 2 per kg, has surpassed her political bete noire Karunanidhi by going a step further, promising free rice in the ration shops.

In the new scheme, every ration card holding family will get 20 kg of rice per month absolutely free. The scheme was launched in all the 32,571 ration shops across the states. Due to this freebie scheme, the state's food bill is expected to go up by about Rs 400 crore. Under the Antyodaya Annayojana Scheme, the beneficiaries are given 35 kg of free rice every month. Between the two schemes, about 1.83 crore ration card holders are being benefited.

How does free rice help the poor? “According to my knowledge, rice priced at Re 1 or given free is not making an impact. It has only helped those who are  smuggling the rice to other states. Many people sell the rice procured from the ration shops at a higher price of Rs 5 per kg or thereabouts and get the cash...perhaps we can say that this rice scheme has helped the rural poor to get some cash,” says veteran political analyst Solai.

And what impact does it have on the rural economy? To dole out free rice, the government must procure it at very low rates. And this move, in turn, has an adverse effect on the rice farmers. “The free rice scheme badly affects farmers like us. For the last three years, the rice procurement rate has not been hiked at all. Due to the free rice and schemes like NREGA it is becoming  increasingly difficult for us to get farm labourers. Even if they come, they demand much more money for far less work,” says Swamimalai Vimalnathan, general secretary of the Association  for Protection of Farmers in Thanjavur district. But then, even the Supreme Court has questioned the central government on why food grains, which otherwise are rotting in government godowns, are not being given to the poor people free of cost. Ergo, there just might be some sense in Jayalalitha's free rice move.

Chennai-based economist Dr Venkatesh Athreya looks at the free rice scheme from a different angle. “Rice at low price is also popular in other states like Chhattisgarh and Andhra Pradesh. We are giving the people rice to eat. We are not providing them with clothes or shelter.”  The economist adds, “If suppose we give 35 kg of rice at Rs 2 and wheat at Rs 3 to every household in India, the subsidy bill will hover around approximately Rs 1,40,000 crore. This is less than 1.5 per cent of our GDP. But we give the corporate sector Rs 5,00,000 crore in the form of stimuli and other incentives. When it is given to corporates, it is called as 'stimulus' or incentive but when it is given to the poor, it is called freebies.”

But in the free rice scheme race, the small state of Puducherry has beaten its larger neighbour. It had started its 20 kg free rice scheme for BPL card holders in 2010. Now, Rangasamy, the new chief minister of the state, has hiked the dole to 25 kg per month in order to prove that he is more pro-poor. In 2010,  the then Congress chief minister of Puducherry, V Vaithialingam, had claimed in a conversation with this correspondent that his government was able to help the poor to save Rs 500 per month by giving 20 kg of rice free of cost as the market rate of rice at the time was Rs 25 per kg. “This will help him spend the money in his monthly budget on other requirements,” he had said.

But when this correspondent discussed this fact with a government official, he hit back by saying, "The poor bought rice at Rs 3.5 per kg from ration shops. Now, when they are getting it free, they are only saving some 60-odd rupees in their monthly budget.” But then, politicians always look at big the picture, don't they?