The battle for our food

 


Where we are today…
The biggest contributor for global warming is harvest of our present day genetically modified, GM, rice and wheat, which consume plenty of fertilisers, pesticides, chemicals for increase of their shelf life and enormous quantities of fresh water. It’s contribution towards climate change surpasses that of our industrial and automobile pollution put together.
They are harvested in different parts of our country, procured by the Government and distributed all over India, even exported. Plenty of energy is spent for this process.To grow these heavily water dependent crops we build dams at the cost of deforestation and damage the environment. But what has this got to do with our health…

Let us take a look at what the creators of these monsters are doing… 
The ‘western world’/‘advanced countries’ which created this monster, GM rice and wheat, have woken up to chaos they have created and have been addressing it seriously for the past several years. Their intelligentsia has seen many well organised movements speak up and publicise the harmful effects of the modern-day rice and wheat. These countries are making amends for their people and have been fairly effective in creating awareness. To a large extent they even have the resources to address a good portion of the health care costs and other facilities required to ‘manage’ the health of the already affected. Whereas we in India neither have done anything substantial to study the issue nor have we done anything to create awareness from the research findings of a few caring scientists and well-meaning forums. Further there is no way we in India can afford even a tiny fragment of the health care cost required to ‘manage’ the diseases. Needless to say, there is no cure for the diseases these GM rice and wheat have brought.

Where is the battle now…
In any war, enemy is countered when at the border. But here the enemy has already made a place inside our heartland. It is at our navel and the fight is simply in our taste buds. We have been so conditioned to the tastes of the these GM grains in its many forms. While many of us know the issues associated with consumption of these grains, we continue to give in to the demands of our palate. The reason is simple. These modern-day rice and wheat have reached all of us. They are not only consumed directly but also in the form of processed food like maida, sooji, puffed rice, etc., which are used to make various dishes at home. They are present in almost every processed food product found in every shelf in every store in our country. In the form of potato chips, biscuits, bread, ready to cook batters, breakfast cereals, pastas, noodles, to many concoctions commonly found and consumed every day by almost everybody in our present day life.
The enemy is in our midst… 
But we are blissfully unaware. Apparently, nor do we care. We need to fight this battle. But the beauty is, no external agency is required for this revolution to happen. No help is required from the Government, no change in its policy needs to be sought. No demand needs to be made of the processed food manufacturers or the growers of rice and  wheat. If you and I shun consumption of rice & wheat and consume only Siridhanya, the war is won. The primary health of everyone who consumes Siridhanya is improved. The human suffering associated with consumption  of modern-day rice and wheat will decline. The high cost of health care associated with consumption of rice and wheat will reduce drastically. For this to happen, the demand for millets will have to increase significantly. The health benefits of consuming Siridhanya will get noticed in everyone who consume these, within days if not hours, of consuming them. This will raise the demand for these healthy grains.

What the avengers have already done…
In the past 50 or so years since these GM rice and wheat made their appearance, the amount of fertilisers, pesticides and water required for growing these crops has increased with more and more of the same being required for subsequent harvests. If a certain amount of fertiliser and pesticide is required for growing one harvest of these crops today, the next harvest is not possible without an increase in utilisation of the quantum of these chemicals because the soil loses its ability to yield crop. This also results in increased amount of water requirement for every subsequent harvest. Most agricultural lands in many parts of our country have come to a point where no amount of fertiliser, pesticides and water can any longer make the land fertile enough to harvest anything. In other words a good portion of our agricultural land has become waste land where no agriculture is possible.
The increased amount of fertilisers and pesticides required for harvesting the present day rice and wheat along with the huge amount of chemicals required for increasing their shelf life which is needed for transporting the so produced grains to various parts of our country, has resulted in these harmful chemicals entering our body systemically during the past 50 years or so. The extent of this damage has been devastating. All kinds of diseases starting with acidity to constipation, to hypertension leading to complex cardiovascular diseases, to diabetes leading to amputations and to even more complex diseases including many cancers have been on the rise significantly. So much so that it has already reached the point of no return for most of the middle-aged. The pain to the human body is mind-boggling and health care for these diseases is limited to disease management, not cure. The health care cost for these diseases, which have become common to all sections of our society regardless of rich and poor, caste and creed, aged and new-born, rural and urbanites, educated and illiterate, to even the tribal, is devastating.

Our strategy…
This shift from modern-day rice and wheat to Siridhanya is bound to happen sooner or later, with or without any effort on anybodys part. It is inevitable since it is not possible to sustain the demands of fertilisers, chemicals and fresh water for growing the present day rice and wheat. Sooner than later these modern day rice and wheat will have no choice but to disappear. Many unsustainable Government subsidy programs are presently in play to deliver the rice and wheat we consume, to our door steps. It is estimated that the real cost of one kilogram of rice is about Rs. 250, while we pay about Rs. 60 for the same due to Government subsidies at various points. There are subsidies for purchase of seeds, fertilisers, pesticides, providing low-interest loans to farmers, chemicals required for increasing the shelf life, costs of distribution and so on. This data needs to be mined from myriad source of information and it is difficult to arrive at accurately. But the fact remains that present day rice and wheat is being produced at a heavy cost to the exchequer. In other words we are paying heavily for ill treating our bodies and mind after which we go through a great deal of suffering and further spend mindless amounts to ‘manage’ the diseases the present day rice and wheat cause.
Dynamics of scale will work in favour of driving down the landed cost of Siridhanya for the end-user. Today the cost of milling and cleaning these small-sized grains is very high since machines are not available for de-husking and cleaning of these grains. Manual labor is the predominant method adopted for this activity, which is the root cause of the high retail prices of millets. Machinery required for this has not been developed since the commercial viability for developing, manufacturing and selling the required machinery is not attractive. Consumption of millets is itself too low for such machinery manufacturers to develop the required machinery.
The cost of harvesting these millets is very low because it requires no fertilisers or pesticides and needs very little water. About 300 litres of water per kilogram of millets vs. 9,000 litres of water per kilogram of rice/wheat. With increase in consumption of millets, mechanisation of the cleaning process will come into the picture, heavily reducing the cost of the biggest component in distributing Siridhaya, which is de-husking and cleaning of these grains. Further this demand will pave the way for improving the poor distribution networks millets are presently managing with. Larger and more organised distributors will find it commercially viable for getting into the business of procuring Siridhanya from the place of it’s harvest to putting them on the store shelves they are procured from by the end-user. The Government too will start procuring Siridhanya for Public Distribution System as well as for its many subsidised grain supply programs for the poor, in place of procuring the present day rice and wheat.

How the battle can be won…
Let there be no doubt. The revolution is around the corner. But, no external agency is required for this revolution to take place. No help is necessary from the Government, no change in its policy needs to be sought. No demand needs to be made of the processed food manufacturers or the growers of rice and wheat. If you and I shun consumption of rice & wheat and consume only Siridhanya, the war is won. The primary health of everyone who consumes Siridhanya is restored. The human suffering associated with consumption of modern-day rice and wheat will eventually disappear. The high cost of health care associated with consumption of rice and wheat will reduce drastically. For this to happen, the demand for millets will have to increase significantly. The health benefits of consuming Siridhanya will get noticed in everyone who consume these, within days if not hours, of consuming them.

Our weapons…
The question is will we do our bit to spread the word, share the wisdom, defy our palate, make the change and win the war. Or will we wait for the inevitable to happen in its own time, allowing our environment to be destroyed, global warming to increase and suffer ill-health in the meanwhile…

Happy Independence Day

The right food & water

THE FOOD THAT WE ARE CONSUMING TODAY – can be best described as ‘notion of food’

Then what is the food we should consume?
Siridhanya- commonly called millets are small grains which grow without the help of pesticides, fertilisers and harvests with very little water. Arka, Foxtail, Browntop, Finger and Little Millet.
As recently as about 50 years ago genetically modified rice and wheat were developed in laboratories and have been promoted with great enthusiasm in the name of green revolution. So much so that it is difficult to conceptualise life without them now.

So, what is wrong with consuming the present day rice and wheat?
Water has to be stagnated around the crop for wheat and rice to grow. This gives rise to a requirement of pesticide. These genetically modified grains cannot grow without abundant water. One kilogram of present day rice/wheat requires about 9,000 litres of water to grow. Many dams have come up to cater to the water requirement of rice and wheat harvesting. Construction of dams and diversion of the flow of river water is always at a cost to our ecology and inevitably disrupts the lives of tens of thousands of original dwellers of respective regions. In contrast Siridhanya hardly require about 300 litres of water per kilogram of grain to be harvested and do well under harsh conditions having minimal rainfall and under scorching sunlight/draught-like conditions even. Since they do not require abundant water like in the case of rice and wheat, they do not require any pesticide or fertilisers.

Well, what is the harm in using pesticides or fertilisers to grow grains?
Its not natural or organic. Using pesticides and fertilisers to harvest rice/wheat results in the grains carrying their residual chemicals. These chemicals contribute in causing many diseases in our body such as hypertension , diabetes, acidity, constipation and so on.
The process of genetic modification has resulted in the rice and wheat losing fibre content. What little it does contain is mostly on its outer layer which is lost during de-husking and polishing. Whereas these Siridhanya have fibre through their structure, starting from its centre. No amount of de-husking or polishing can eliminate the fibre content in them.

Why is this fibre so important?
The food we consume should get digested slowly resulting in gradual release of glucose into the blood stream. High fibre content in the food we consume will help make this happen. Since rice and wheat have barely any fibre they release all the energy in them into our blood stream within about 15-20 minutes. There are more than 100 steps for the food we consume to get converted into glucose resulting in providing energy to the body. Since rice and wheat have almost no fibre, they get converted into glucose so quickly that the pancreas have no choice but to convert it into glycogen and then into fat resulting in rheumatoid arthritis and triglyceride which end up causing blockade in our blood vessels in turn requiring angioplasty etc., Siridhanya will release glucose into our blood stream across 5 to six hours or more due to their high fibre content. Also since no pesticide or fertiliser is required for harvesting them, they will not cause hypertension, diabetes, acidity, constipation and so on.

Other issues related to wheat and wheat based products
Wheat is also bleached using a chemical called Alloxan and flour produced from this is used as Maida which in turn is used to prepare many breads such as Nan, Kulcha,Parota as well as most bakery products and all forms of noodles, pasta,spaghetti etc.. This is also the case in preparation of most branded bakery products including biscuits, sliced bread and other forms of bread etc., Alloxan is a chemical that is used in laboratory on animals such as guinea pigs to create a diabetic condition in them for research purposes. Alloxan kills the beta cells in the pancreas of the animal when injected resulting in diabetic condition. Wheat also contains a protein called gluten which is harmful to human beings. Also many people are allergic to gluten.

What about meat and eggs?
Chicken was a bird that was found in very few places like Bali and a few other Southeast Asian countries. Hybridisation of these few birds has resulted in growing its population to about 100 billion today. About 8 kilograms of grains has to be consumed by a chicken to produce 1 kilo of meat. This means about 50,000 kgs of water is required for 1 kg of meat to reach your plate. This hybridisation process has also resulted in chicken amassing huge body mass within very short periods of time. In the process they do not develop bones resulting in them not containing healthy bone marrow. Good bone marrow content means good immunity.

Since the present day chicken has very little immunity, it falls prey to various viruses which in turn cause many diseases such as bird flu, H1N1 and so on. The scary part is that most of these diseases have no known cure. In a bid to increase meat productivity many hormones are injected into the chicken. To avoid many diseases chicken commonly get affected with, many medicines are given to them. All this is passed on to us when we consume chicken meat and its eggs. More or less the same is the story with red meat.

Sugar is the deadliest of all foods we consume
Our body is a sugar manufacturing unit in itself. The digestive system converts the food we eat into sugar/glucose. The grains, cereals, meat and vegetables we consume is converted by our body into sugar or glucose. This is the energy source for our bodies. There is absolutely no need for us to consume even a milligram of sugar. Which means no ice cream, no chocolates, no birthday cakes, no festive sweets, sweetened soft drinks, sweet lassi, etc., Even most tooth paste we use every morning dumps 3 grams of sugar into our body. No wonder children do not feel hungry immediately after brushing their teeth.Food we consume has to undergo more than a 100 steps for sugar/glucose to be produced by the body. When we consume sugar directly the body skips almost all these steps and renders all the organs meant to produce the energy required for the body useless. Also such sugar directly dumped into our body cannot be digested. Our body requires 30 to 35 grams of sugar which it produces on its own from the food we eat. So what happens to all the sugar we consume directly in the form of sugar and sweets? It results in giving birth to lots of diseases because Pancreas has no choice but to convert such sugar into glycogen leading to rumatic Arthritis,tryglizarites etc., which leads to blockage in blood vesicles which leads to many heart related problems, etc., Main objective of producing sugarcane is liquor production. Sugar is a byproduct and should not be consumed by human beings.

Water, plastic & copper
Water is a polar molecule. H2O. It is a neutral molecule with both positive and negative sides built into it. Water stored in plastic bottles, regardless of ‘food grade plastic’ etc., absorb nano particles of the plastic it is stored in and coat the small intestine with a lining of the plastic it carries when consumed. This makes our intestine hydrophobic- repels water. While the normal nature of our intestines is hydrophilic- absorb water or to be water friendly. So, sufficient water is not absorbed by our body when water from plastic bottles/containers is consumed by us. Such water, stored in plastic containers can be called unstructured water. Instead, water should be stored in copper vessels for 8 hours before consumption. Copper is the only material in the world which has free moving de-orbitals due to which electrons move around in the water stored in it and kill all microbes including virus. Such water is safe for consumption and helps in maintaining good health. Problems including hair fall to constipation are kept in check by adopting such a simple process. Instead of a copper vessel, a mud pot or a steel vessel can be used, but a copper stick should be immersed in the vessel.

Understanding the importance Siridhanya (millets) and resisting wheat, rice, sugar,maida based products, bakery products, sweets, unscientifically produced meat & eggs and not consuming water stored in plastic containers is key to keeping modern day diseases at bay.

FROM RESEARCH AND TEACHINGS OF Dr KHADER, Phd., Steroids, IISc Nutrition Expert

Sent from my iPhone

Eat the millet or bite the bullet

Eat the millet – Or bite the bullet

40 to 50 years ago Pancharathna Siridhanya (precious millets) such as Foxtail, Barnyard, Kodo, Brown top and Little millet were commonly consumed. These have now been replaced predominantly by grains such as rice and wheat.

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When these millets were commonly consumed, diseases such as diabetes, high blood pressure, digestive problems, cancer, etc., were virtually unheard of. Off late these diseases have become common, even amongst the young.

When the fiber content in rice & wheat is compared with that of millets, in 100 grams of rice and wheat the fiber contained is 0.2 & 1.2 grams respectively, while 100 grams of pancharathna siridhanya, manually processed using traditional methods, contain 8 to 12.5 grams of fiber.

Higher fiber content will result in slower release of glucose into the blood stream. As a result of which diseases such as blood pressure, arthritis, diabetes, and other cardiovascular diseases will be cured. But for this to happen, bakery products, sugar, rice, wheat and meat should not be consumed.

To harvest 1 kg of rice 8,000 liters of water and to harvest wheat 9,000 liters of water is required. To produce1 kg of sugar 28,000 liters of water is required. By the time 1 kg of meat is produced, at least 50,000 liters of water will be consumed.

Also huge quantities of pesticides and fertilizers are being used, subjecting the earth to torture. Foods produced in this manner bring disease and pain to the human body.

Whereas to grow 1 kg of Pancharathna Siridhanaya, 300 liters of water is required and harvesting the same does not require pesticides or fertilizers.

These Pancharathna Siridhanya have a place in history for over 1,000 years in India, China, Iraq, Iran, Japan, Italy, Turkey, South Africa, Ethiopia, Greece, etc.,

The special properties contained in Pancharathna Siridhanya:

Arka – Kodo Millet: This is “Adi beeja” (Original seed) named after the Sun. Light red color in appearance, this millet plays a major role in cleansing the blood. When diagnosed with diseases like Dengue, Malaria, chronic cold and fever this is a suitable food to help cure the same. It helps in regenerating the cells in the bone marrow also.

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Navane – Foxtail Millet: Light yellow color in appearance, apart from rejuvenating the nervous and vascular systems, it helps in curing epilepsy. During pregnancy women should consume this millet. Subsequently if the newborn gets fever, it will not develop into epilepsy. Great sages and poets have praised this phenomenal property of the Foxtail millet. Note: Women in post pregnancy stage should not consume Foxtail millet for a period of one year after delivery.

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Saame – Little Millet: Dull white color in appearance, this is a complete solution for issues related to reproductive systems. While it repairs ovary related issues in women, it improves the reproductive strengths in men.

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Oodalu – Barnyard Millet: White color in appearance, its fiber helps in increasing the efficiency of ductless glands such as pancreas, thyroid etc., and also helps in cleansing of liver & kidney. It is the appropriate food for curing liver related diseases. For example, Jaundice.

barnyard-millet

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Korle – Browntop Millet: Light greenish/greyish color in appearance, it helps in improving the efficiency of the digestive system and in cleansing the body from metabolic waste. As early as the 18th century, this millet was consumed widely in the Americas.

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A few diseases, concerns, cures, solutions and tips:

Diabetes has reached 25% of the population in India. An increase of about 3% in any disease should be a cause for great concern.

Diabetes and High blood pressure can be completely cured by consuming these Pancharathna Siridhanya, subject to completely stopping consumption of rice, wheat, bakery products, meat and sugar. Also since impurities in the body go out through sweat, walking for one and a half hour is essential every day. This will cleanse the 5-6 liters of blood contained in the human body.

Although 75% of the earth’s surface consists of water, only 3% of the same is available for drinking purpose. Water supplied to urban areas is treated with chlorine.

A good method to purify and drink water is to store it in a copper vessel, with 2 drumstick seeds for 8-10 hours. Copper kills micro organisms. The drumstick seeds will absorb these dead organisms. Remove these seeds and drink the water. Clean the copper vessel with tamarind water periodically. Drinking water from plastic containers is dangerous to health

Peanut shell (light pink color) reduces aging, swelling in body and prevents cancer. The peanut should be consumed along with its pink shell which contains resveratrol.

Seven juices into seven days = 49 days in a row, will keep away any infection that can affect you – for years – including scary ones such as H1N1, Bird flu etc., to common cold, fever and so on.Take one kind of leaf at a time, crush a few tender ones, boil for a minute or so and drink up the juice. Once a day for seven days in a row for each leaf. They really do not have any strong taste or oder, making it easy to drink up.

The names are in Kannada language

-Honge-special extra property is to get alcohol craving out of the human body

-Amurathaballi

-Bilpatre-please make an exception of the seven day rule for people with serious diabetic condition and let them have it for 21 days continuously

-Tulsi

-Gareke hullu (natural grass)

-Arali

-Beau

Triglyceride – Ref Dr. Robert Lustig, Pediatric Endocrinologist, University of California, Sugar the bitter truth – YouTube.

Triglyceride level is the more serious issue behind Diabetes, regardless of Type 1 or Type 2.

Also Dr. Khadar, Phd Steroids, has shown that differentiating between Type 1 and 2 is a myth about 15 years ago itself. A few tender leaves of Bilpatre juice ( we use it during worshiping Lord Shiva on Shivaratri ) will have a great positive impact on the pancreas.

What is so special about these leaves?

Their trees/plants/grass have been around for thousands of years on the face of the earth. They have witnessed all sorts of happenings including famine, draught etc., and survived it all due to developing very strong resistance. Consuming their juice will strengthen the immunity of our body in the bone marrow.

Fibre – Most body parts don’t get a chance to function to their full potential only because the food we consume lack sufficient fibre due to which it skips the hundred plus hydraulic steps and become glucose within minutes. The human body requires about 30 grams of fiber per day. Most people believe that fruits, vegetables, greens will do the job, especially when consumed in salad form. Take carrot for example. 85% of it is water. Maybe 10% of the balance 15% is fibre. The math is simple from there…

Organic & Millets – While all millets are organic by nature and by virtue of how they grow naturally, all other millets except Barnyard, Browntop, Little, Foxtail and Kodo can be categorized as neutral food. Reason is that they contain a maximum of 3.5% fibre.

The five millets I have mentioned above contain between 8 to 12.5% fibre, hence categorized as positive foods by Dr. Khadar.

Consumption of these 5 millets without consuming the present day strain of rice, wheat, sugar, processed foods, fish, meat and eggs, continuously for 3 months is an extreme for most people. But it is required because the damage the human body has suffered during the past few decades needs to be undone.

Now once we consume the requisite amount of fibre everyday and all body parts, including the pancreas, are functioning well, will diabetes and ‘lifestyle diseases’ not be cured?

Coconut milk – milk from coconut everyday is a strongly recommended for people with dire diabetic conditions.

Fermentation – Any food that undergoes fermentation is good. The fermentation process has the ability to neutralize most ill effects contained in the food before fermentation. Examples are curds/buttermilk/idly/dosa…

Research and findings of Dr. Khader PhD Agricultural Science

 

For trade enquiries please write to:

Dhanyafoods.millets@gmail.com

965, 14th main, 4th stage, TK layout, Mysore, Karnataka, India.

HORROR OF HOUSING LOANS IN INDIA

HORROR OF HOUSING LOANS IN INDIA

After repaying Rs. 1.63 Crores, the amount due is Rs. 1.66 Crore, on a housing loan of Rs. 1.51 Crore

A large multinational bank issues a housing loan of Rs. 1.5 Crore in the year 2008

The borrower repays about Rs. 30 Lacs over a period of about one and a half years. The complete amount is amortized by the bank purely towards Pre-EMI interest. The borrower who is tired of requesting the bank to convert the Pre-EMI installments to EMI, stops paying installments to the bank in the year 2010

The bank goes through the motions as per SARFAESI Act and tries to auction the property. The excuse being, EMI to Pre-EMI conversion request needs to be in writing by the borrower

The borrower approaches The Honorable DRT and is granted an unconditional Stay against the auction of the property by the bank

PLAYING WITH THE RULES

Under SARFAESI Act, permission to take possession and to auction secured property can be granted by The Debt Recovery Tribunal or by The Deputy Commissioner to the bank after the concerned Authority vacates the Stay.

When the Stay by The DRT is in force, the bank clandestinely obtains an order from The Deputy Commissioner’s office. This is done by suppressing the existence of the Stay by The DRT. The DC permits the bank to go ahead with the auction process. Meanwhile, the borrower is waiting for proceedings in The DRT while the bank goes ahead, takes over physical possession of the property and proceeds with the auction formalities

NOWHERE TO TURN

The borrower having nowhere to turn to, agrees to the banks demand to pay an additional Rs 15 Lac towards Pre-EMI, and the bank returns the property. With this the borrower has paid about Rs. 48 Lacs towards Pre-EMI interest between the years 2008 and 2010

GAMES OF MERGERS AND ACQUISITIONS

EMI now commences, but the large multinational bank sells off its “Housing Division Vertical” to a Non Banking Financial Institution and ownership of this housing loan division goes through more mergers and acquisitions over the next couple of years. Who is to be held responsible for what portions of omissions and commissions is now muddled. Writing to the large multinational only leads to shifting of the responsibility.

DIE ANOTHER DAY

The borrower enters into a distress sale with the first person who is willing to close the housing loan for the prime property, at a small portion of its market value.

BLOOD DIAMOND

The borrower has repaid the loan and the bank/NBFI has recovered the “SO CALLED DEBT”. Amount repaid is a total of Rs. 3,28,90,105 on a loan of Rs. 1.5 Crores across about 5 years.

SILENCE OF THE LAMBS

The Honorable DRT has been created with the purpose of helping banks to recover genuine bad loans.

But in India, private/multinational banks and NBFCs have created methods in which the cow is milked, slaughtered, consumed as delicate veal and skinned for its leather, even before it transforms into a cow from a calf.

Every nook and corner of Indian towns and cities have plenty of variations of such gory tales. And now our new Government at the centre is planning to issue banking licenses to many more private entities. This time around these new banks are expected to address rural India and small customers. Will meaning policies be framed before these new licenses are issued or will our new Government let loose more banks to lead the cattle to the slaughter house? And what if the new banks are let loose without any meaningful new rules being framed? As usual we will sit on the side lines and watch. Wont we:)

Colossal documentation to be preserved for extended periods of time

Colossal documentation to be preserved for extended periods of time

For a factory making in India, enormous amounts of different documents have to be preserved for many numbers of years. For the SME sector, this is not an easy task.

During assessment, audit, scrutiny, inspections and so on, the assessing authority needs to ask generic questions for the period in question. Therefore what is being sought is not known, throwing open more books of records and all sorts of documentation which may be pertinent to the specific department’s query or not. Over and above the huge amount of documentation mandated to be maintained, this system of verification or checking by various departments eats into the bandwidth of the business.

For example Form ‘C’ which is issued by a buyer, of the goods manufactured by the SME being inspected, needs to be produced to the Assessing Officer. Even Form ‘C’ pertaining to transactions made six years back!  Form ‘C’ pertains to concessional rate of tax enjoyed by the purchaser of goods manufactured by the SME under scrutiny. Despite a routine assessment having been made by the Audit Department of the VAT office before the scrutiny has been called for, six years after the transaction, original Form ‘C’ or Audit Report has to be produced when called for scrutiny. Even if the Audit Department has duly noted that, the audit conducted a year after the transaction, it has been found to be satisfactory or that an amount of xyz had found to be due and the same has been discharged by the manufacturer along with interest and penalty, ‘C’ Form or Audit Report has to be produced. Bang! A notice with interest and penalty for six years is slapped. It usually works out to the alleged due multiplied by two. And the department can attach the bank account of the business. Say the business is shut down, taxes still follow you. Mind it!!!

While the logic behind why the purchaser of the goods is not held responsible for the concessional rate of taxes enjoyed at the time of purchase and why the liability is to be fixed on the manufacturer is a subject that need to be revisited. Preserving documentation for such extended periods of time is not a healthy environment for making in India.

Anyone who has visited exhibitions in China in the past ten years or so and filling up the registration forms at the time of entry is likely to receive almost daily updated on new products being released in China. It is the result of getting into a mailing list. The offers have clear description, contain images, loading capacity for shipment and offer price. The Chinese have turned this method of marketing into a fine art. They do it with consistency. The prices of many such products being offered have been going up steadily, steeply and consistently in the past year. The reasons for the same including cost of labor, debts China carries huge investments in infrastructure which China will need maybe 25 years later and so on are well known to the world. This gives make in India an edge. And make in India will happen even though it is tough. Certain reviews are called for and perhaps the people making in India along with domain experts such as Tax Consultants, CAs and other related parties could express experiences and help in bringing about reforms that could make, make in India, a joy.

Provident Fund, our own indigenous annuity plan

Act One

In the year 2000 a popular Tamil movie showed how a Government job was a necessary qualification to seek the hand of a girl in marriage.

This movie was such a super hit that it got remade in Hindi subsequently. It’s theme and popularity is such that on the day the new Government took oath in 2014 this movie was played over and over by different channels on television. It is but, only a movie by a Director with vivid imagination.

The provident fund is something that has captured the imagination of the average factory worker who makes it a precondition for choosing a factory to marry. (Iteration being an issue applicable to certain sections of business, to a large extent in India, even today).

The reasons for this choice are several.

  1. a) A job with a PF provision is perceived to be like a Government job by many workers.
  2. b) Some workers believe that the pay will actually be more if the organization is covered under PF.
  3. c) Some want it for its real intent of benefitting from its annuity payback.

PF is clearly part of the Cost To Company, both employer and employee contribution taken into consideration.

Thus PF is certainly a necessity. But it requires reforms to address on the ground realities such as below. Under unavoidable circumstances, some leeway should be provided.

Act Two

Around 2009 global recession hits, small and medium industries are scrambling to make ends meet. Payments to the PF department cannot be delayed. They slap notices and attach bank accounts of those businesses delaying the payment. Letters of request to allow some time expressing difficulty to make PF payments on time go unheeded.

There is a provision for the factory to submit the list of creditors to the PF office along with relevant documents to prove the dues. The PF department in turn collects the dues of the factory in a matter of a couple of days. It is simple. The PF Department will intimate the factory’s clients that their bank accounts will be attached if the dues of the businessman is not paid directly to the PF department immediately. The PF due, interest and penalty having been collected, everything should be hunky dory and the title credits should roll right? Wrong. Picture abhi baki hei…

Act Three

This whole fiasco from the date PF payments become due till it has been collected in the above story has taken about six months. In the process there is a Police Complaint filed by the PF department. On receipt of the dues by the PF department, the factory requests the PF department and a letter intimating the Police Station of the no due position of the factory is issued addressed to the said Police Station. At least now, is the movie going to end? Of course not. This is not an art movie.  Spicy twists and turns are required before it can end…

The manufacturer has to go to The Court and prove that while there was a due to the PF Department long ago, the payment along with interest and penalty has been made, that the PF Department has written to the Police Department regarding the same, receipt of acknowledge of the said letter by the Police Department has to be produced, the Police officer who has received the complaint and subsequent no due letters has to appear in Court and testify, The PF Department officials have to appear in the Court and testify to having received all dues. In the meanwhile the businessman has to walk around with an anticipatory bail in the face of the accusation that he has cheated the public. A grave offence, mind you. If the fiasco at the PF office level took six months, the Court proceedings may well conclude in about six years.

The End

And the real The End comes here. The beginning of the question, why did I make in India.

The New Beginning

India has great potential in the field of manufacturing and others as well. Make in India will happen and in a big way*. But will it happen without the ground realities being addressed, frustrating the makers in India in the process or will we make the reforms to help make in India an enjoyable experience, is the question.

*Please see reply to comments in the blog. manufactureinindiablog.wordpress.com

how dare you MAKE IN INDIA

Prelude (Late 80’s – 2014):

Towards the end of the 1980s the concept of travelling to the United States to study, followed by the prospect of working there, still held some charm. By early 90s though reverse migration had begun. Economic liberalization, y2k and captive process outsourcing prospects for western companies in India held new promise. Many software development companies, comprising of immigrant Indians, in western countries had started considering the idea of at least setting up of captive process and project development shops in India, for their parent companies in the west. Some proactive states like Karnataka, Haryana and Andhra Pradesh actively started providing the required infrastructure. Indigenous software product development units also made an entry. Western branded hardware companies started seeing an opportunity to sell at a premium in India. Companies manufacturing networking racks for housing computer networking components and specializing in procuring equipment/providing integrated networking services started up.

Towards the end of the 20th Century, business process outsourcing had arrived and a few software development companies were doing well. New age telecom operators and manufacturers of office modular furniture were gaining ground. With the primary customers for most of these products and services being from foreign countries, payment receipts were in most such cases, in the form of the American Dollar. Having been a nation which had been struggling to have enough foreign exchange to meet imports, primarily consisting of the much needed crude in the recent past, the powers that be immediately started dishing out all sorts of tax and duty exemptions to the information technology companies who were raking in the mighty dollars.

However during the same period we have seen many issues which have left us caught up with our archaic laws and their impact on semi-understood implications on the makers in India that provided the infrastructure for the IT/ITES Companies. Capitalizing on the opportunity cost these information technology companies were already raking in huge profits and as with all subsidies in our country, once given, it has never been withdrawn. Nor has the largesse been reduced.

Reforms in Excise Duty Laws, Service Tax, Sales Tax, Labor Laws, Customs Duty, EOU & CT3 Form sales and sales to SEZ, subsidies to IT/ITES in terms of a more holistic understanding by the Commerce, Finance, Corporate Affairs and Labor Ministries were and are still lacking.

Present day:

We are in 2014 and filled with hope that the new Government at the Centre, which is not bogged down by the burden of dealing with coalition partners, will concentrate on specific issues and address them. In general terms, reforms are required in application and implementation of various taxes & duties. But to understand some explicit crucial issues of urgency, let us look into a few specific points. It pains to see many announcements of reforms being made, without any display of the slightest understanding of the ground realities. These announcements might attract industry to try and make in India. But it is atrocious how some of the laws have been laid down and it is appalling that nobody has brought these things out for decades.

For example,

– On the basic selling price of a manufacturer, Excise Duty is added as a percentage. Value Added Tax is charged on the total of basic + ED. That is compounding of tax. Cannot see logic here. It is the Government’s prerogative to decide the amount of tax but it is insulting that compounding of taxation is being enforced for decades.

– Service Tax on labor component to EOU is not revenue for the Government. Yet it has to be collected by the manufacturer and remitted to the Government which will then refund it to the same EOU. When a Commerce Ministry directive says the ST is not chargeable and the Finance Ministry notification says it is chargeable, which purchasing EOU will want to deal with an Indian manufacturer who insists on the ST collection? It is easier for the EOU to simply import the same goods. Importing the same does not attract any duty/VAT and ST matter simply does not get mentioned, more often than not.

– Why is TDS to be deducted on basic + Service Tax? Should it not be on basic service charge only? Such rules only give concerned Departments opportunity to consume a lot of the manufacturer’s time and sometimes more than only time.

– Special Additional Tax is really sad. One only ends up having Crores of Rupees in useless input credit since the terms of utilizing the same are not realistic. The input credit is useless for the balance sheet and since it can technically be utilized anytime by the importer of raw material who accumulates it, reflects illogically in revenue collection records by the Central Government.

– Similarly Excise input credit of a manufacturer predominantly catering to EOUs cannot really be used fully since the focus of the manufacturer will have to now be divided between manufacturing office modular furniture and products for residential markets, simply to utilize the Excise book credit. The huge capital expenditure already incurred to set up the manufacturing facility does not really support this change of focus. The alternative is to have a huge build up of Excise input credit in the books.

– Why should a buyer who is not able to produce form 37 or form ‘C’, not be subjected to pay the difference of the concessional rate of taxes enjoyed, since the buyer is the real beneficiary?  The manufacturer having to pay this with interest and penalty is completely senseless. But that is the rule.

– Most Government Departments can simply attach Bank accounts in the blink of an eyelid. Being in a constant state of fear is the way a manufacturing facility works in India. We learn to live with it. Or simply stop making in India.

– The Ministry for Small and Medium Enterprises is responsible for most of these policies. Unless it addresses specifics such as stated above and tackle them, make in India will be a tough ask.

Even though the examples in this write up are drawn from specific manufacturing industries, the same is true for all those are making most things all over India. Also it is important to note that a very few issues have been brought up here. This is only the tip of the iceberg. Thoda adjust kar lena should go and meaningful reforms should come…

Do we still dare, make in India???