Why do they kill themselves?

As Jiah Khan's suicide shows, expenditure on mental healthcare is minimal

Jiah Khan, a 25-year old Bollywood actress, who committed suicide by hanging herself made news as she was in the show business. While ordinary victims of suicide become statistics, celebrities who kill themselves become the talk of the town. Earlier show business stars like Guru Dutt, Parveen Babi, Nafisa Joseph, ‘Silk’ Smitha, and the legendary Hollywood celebrity Marilyn Monroe also took their lives. Why did these rich and famous celebrities take such a drastic step?

According to World Health Organization (WHO) estimates, India records one of the highest suicide rates in the world, with 1.7 lakh victims every year. Over half the total suicides among women and 40 per cent of suicides among men in India are between the ages of 15 and 29 years.

Jiah Khan, began her career in filmdom with two high profile movies, ‘Nishabd’ and ‘Ghajini’; she was also a part of the multi-starrer ‘Housefull’. She appeared to have had a promising career ahead of her, or so we thought. Why did she then kill herself?

Suicide is synonymous with speculation. Did Jiah suffer from depression? If that was so, was it due to personal or professional reasons? It is believed that she was dissatisfied with her romantic relationship and the roles that she was offered in forthcoming films. Speculation is also rife that she was indeed suffering from depression for a short while. Did she receive appropriate help if that was the case? We cannot be sure but mental health issues, to a large extent, are still a taboo topic in Indian society. It is still looked down upon as a strict no-no, a subject which does not attract much debate in the public domain. One of the main causes of suicide is depression- or what we would generally consider as feeling low or down-and-out. However, depression is not just ‘feeling blue’. All people tend to feel sad sometimes but most are able to move on from that feeling to a more positive state of mind. A depressed person stays with the sadness for a longer period of time and his/her mood also affects and disrupts his/her day-to-day life.

Global statistics regarding the subject are quite revealing. They show that depression affects one in five women and one in 10 men at some point in their lives. Depression is, therefore, a serious public health concern. However in the case of India, there is still a social stigma attached to approaching a mental health professional for help. It need not be so; depression is an illness like any other. If you had diabetes, would you not see a doctor? How does one distinguish an onset of depression from feeling sad or ‘blue’? Some of the symptoms of depression are a prolonged feeling of sadness over a period of more than two weeks, loss of sleep or sleeping more than usual, reduced or increased appetite, irritability, loss of pleasure in normal activities and generally decreased energy levels.

However, the good news is that depression can be treated. The Diagnostic and Statistical Manual of Mental Disorders published by the American Psychiatric Association classifies depression into different types. According to Dr Chittaranjan Andrade, head, Department of Psychopathology, National Institute of Mental Health and Neuro Sciences, (NIMHANS), Bangalore, the treatment for depression would vary depending on the type of depression. Treatment usually includes medication and/or psychotherapy.

Today two crore- or about 20 million - Indians suffer from mental illnesses, but between them there are only 3,500 psychiatrists and 1,500 psychiatric nurses to take care of their needs. Otherwise India has only one psychiatrist for every 400,000 people – one of the lowest ratios anywhere in the world. Not surprisingly, the country’s health care budget spends less than one percent on mental healthcare, which is shocking to say the least.

As responsible citizens, we take initiatives to help people suffering from cancer or other physical illnesses. A cancer survivor will be heard and appreciated by many but can we say the same for a survivor of depression? Does he or she get a platform to speak about what they went through or are going through?

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

E-waste in India: Time to bell the cat!

ANIRUDH RAHEJA explores how lack of proper enforcement in E-waste management and recycling may lead to far reaching consequences. Government bodies, corporate and consumers need to join hands to tackle this growing menace

After a spectacular class XII results, Abhay is all set to join his choice of college next week. And he’s busy shopping for branded clothes and the latest techcessories like smartphone, tablet that will match his über cool personality. Satisfied with his purchases, he goes home and trashes his old mobile. His simple act of discarding his old mobile is a part of the 350,000 tonnes of electronic waste released by India every year (Centre for Science & Environment data). Just like Abhay, millions of us discard electronics without giving a second thought that how this electronic waste or E-waste is going to be recycled.

For the uninitiated, E-waste is basically all gadgets like computer and mobile phone and their accessories; electronics like TV, refrigerator, microwave, AC and all other household appliances that have reached their end-of-life period, are no longer fit for their original intended use and are destined for recycling or disposal. But the rudimentary methods of E-waste disposal in India are fast becoming a big cause for concern to which the government and corporate sector have just woken up. "The government has recognised the perils of E-waste and has left no stone unturned in implementing the waste management rules,” says Rohan Gupta, COO, Attero Recycling.

With technology changing at a supersonic speed, companies are reacting by launching newer models of their products practically every year, or even earlier in some cases. So from the time when the revered TV was placed in the centre stage of our drawing rooms watched by an entire generation without even a thought of replacement; today people switch their TV sets from plasma to LCD to LED to 3D Smart TV, all in the course of a few years. Ditto is the case with mobile phones. The obsolescence rate of electronic goods is so high that by the time one is able to adjust to a particular model, the company fine tunes the product and flourishes the market with an upgraded model, thereby luring the unsuspected consumer! And in this game of one-upmanship against the competition and with profit maximisation being the only goal, these companies often turn a blind eye to the rising problems of E-waste. However, according to Hitendra Chaturvedi, Founder & CEO, GreenDust, “In India consumer awareness has started but it will take time to reach out to general public due to our demographics, vast population and economic health of majority of people.”

Out of the total 40-50 million tonnes of E-waste generated throughout the world, India’s contribution might not be really big but it is gradually picking up steam. This is because Indian populace is traditionally conservative and don’t like dump old things fast. As a result nearly 70% of the E-waste comes from government offices and corporates. While addressing a seminar on “Management and Handling of E-waste” organised by the Institute of Technical Education and Research (ITER), L. K. Tiwari Member-Secretary of Orissa State Pollution Control Board (SPCB) said, “E-waste is one of the fastest growing waste streams in the world, and a survey conducted in 2007 found that over 3,00,000 tonnes of E-waste was generated in India, which is expected to touch 8,00,000 tonnes in 2013.”

As per a UN report, India will post a staggering 500% growth in generating E-waste by 2020, closely followed by China at 400%. By the year 2020, India’s E-waste generation will touch 1.72 million metric tonnes. In 2010, E-waste (Management and Handling) Rules were passed under the Environment (Protection) Act, but lack of implementation and enforcement has made a mockery of the Act. So the need of the hour is to ensure the proper implementation of the introduced rules and regulations. “While the new law is certainly a step in the right direction, it is important to keep a vigil to ensure that these laws are properly implemented or enforced. We expect government support in ensuring that only credible companies are allowed to recycle the E-waste so that it is processed in an environmentally friendly manner," Gupta asserts. A report from GBI research predicts that global revenues from E-waste recovery market may shoot up to $14 billion in half a decade from now, amidst rising concerns of the governments for safe disposal and even increase recycling across diversified geographies. The recovery market is expected to expand at a CAGR of 10.8% in the ongoing decade till 2020.
According to the Ministry of Environment and Forest, out of the 65 cities that are heavily generating E-waste in India, Mumbai leads the pack with 60% E-waste, followed by Delhi, Bengaluru, Chennai and Kolkata. It is encouraging that in India, about 70% of the E-waste generated is recycled for further use, but the underlying issue is that 95% of this recycling is being done in an unorganised manner, without any adherence to rules and regulations, thereby putting human life to risk as well. “India’s E-waste sector is still very unorganised and fragmented,” says Chaturvedi.

It is evident that technological advancements have pushed up the standard of living in urban Indian, but at the same time, in the absence of any proper law, it is also creating health issues for those involved in the recycling of E-waste. A normal home computer contains toxic substances like cadmium, mercury and Beryllium et al. The workers (majorly children in age group of 6-14 years) entrusted with the recycling job are prone to serious health problems and ailments. The average age of their survival is 35-40 years. Another cause for worry is that with stringent laws in their home countries, the developed nations across the world are taking advantage of the legal loopholes, weak environmental laws and availability of cheap labour India and are dumping their toxic E-waste in India. And as of now, we don’t posses technology, legal framework or even infrastructure to tackle these problems.

There have been initiatives by some corporates, who have taken serious note of this issue. Corporate giants like Nokia and Apple have started encouraging their customers to bring back their old electronic gadgets and get them recycled. Even Indian companies like Attero Recycling and GreenDust have been actively promoting recycling of toxic waste under their “take back” model. Attero has recently joined hands with International Finance Corporation (IFC) for their “Clean India” initiative, under which they will be directly in touch with rag pickers and scrap dealers to collect and boost their plans to safely dispose of the electronic waste.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

The textual mistake!

School textbooks are full of errors about Indian states

“India's formal education system is failing and government school system is failing - government is not delivering the goods.” This concern was voiced by India’s Chief Economic Advisor, Raghuram Rajan after witnessing the apathy toward the education system of our country.

Education starts at the primary level, but the dismal performance of our students at this level is a testimony that there is a need for an overhaul of our education system. In its seventh Annual Status of Education Report, NGO Pratham had revealed that “more than half of the students in class V in rural India cannot read the text taught in class II in 2011.” This study clearly proves the pathetic quality of elementary education in India.

There is a great need for the Indian government to work on the educational front. With this in mind the ‘Right to Education Act’ was passed in 2010 to improve our creaking school system. But along with the government, our education bodies too have an important role to play as a change agent and social architect, who give importance to upliftment of the education standard in our country.

The credibility of our education bodies has already been compromised with cases of factual errors in printing and biased presentation in board text books coming to the fore. A case in point is the exclusion of Arunachal Pradesh from India’s map in Maharashtra’s Class X Geography text book and the omission of Lakshadweep and Andaman and Nicobar islands from the political map in the Class 10 history textbook. Of course, China’s claim on Arunachal Pradesh as its own must have got a shot in the arm by this exclusion. These incidents have beyond a doubt weakened our international stand as far as the unity and integrity of the nation is concerned.

Former Minister of State for Human Resource Development, Rita Verma admitted in Rajya Sabha that four NCERT history school textbooks contained factual errors and biases. Several reports highlighted that as many as 50 errors were detected in NCERT textbooks. Such cases of textbook errors are being reported from every state. Gujarat government failed to keep their promise of delivering error-free textbooks for Gujarati-medium students of government primary schools in the state, even as they gear up to begin their new academic session from June 1. Currently, 6-7 crore copies of old text books with wrong contents and errors are available in Gujarat.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

More lethal, Virulent strains

Coronavirus and H7N9 are the latest to emerge

Another deadly strain of virus is gaining notoriety among the medical fraternity across the world. Its name is Coronavirus and its lethal manifestations have already become a hotly discussed topic among medical practitioners and across health forums in the Middle East. The virus was identified in Jeddah, Saudi Arabia, only last year. But in recent months it seems to have travelled afar, making its baleful presence felt in European countries like Britain and France, especially among people who have been late visitors to Gulf countries. Though the attack of the virus has so far been mostly confined to countries in and around the Middle East, there are apprehensions that a serious outbreak could erupt in the near future. The World Health Organisation (WHO) has found that “Coronavirus can be passed between people in close contact,” making people highly susceptible to the virus.

As per the WHO, the virus has already taken 18 lives in the Middle East and Europe. Around 34 cases of Coronavirus infection have been registered across the globe on the basis of blood tests so far. But that could be the tip of an iceberg as there is a huge probability of several such cases having gone ignored, as awareness about the virus is still very low. Most governments and their health establishments are still clueless about the virus and its implications. But the concern that the virus could touch off a global pandemic is not unfounded. Given the genesis and geography of its provenance, several reports have highlighted that the possibility of the virus travelling outside Saudi Arabia is high as the country is expected to witness a huge flux of pilgrims during October for Hajj. Intermixing of people is sure to increase the chances of this virus spreading its wings beyond the originating country.

As with Coronavirus in the Gulf, another virus called H7N9, a new bird flu strain, is creating panic in China, leading to the deaths of 32 people so far. Both these new viruses have the potential to touch off a global pandemic. In the past, policy neglect has led to pandemics fanning across the world. A decade ago, SARS (severe acute respiratory syndrome) emerged from south China and spread to Hong Kong before going on to engulf the whole world, including America, Africa and Europe. Delays in taking action by the local public health authorities allowed the virus, which was initially confined to just one country, turn into a pandemic and create global havoc . Between November 2002 and July 2003, SARS claimed 775 deaths worldwide. The virus spread the way the Coronavirus and H7N9 are emerging today before becoming virtually impossible to control at a global level.]

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Is Apple losing the plot?

Angry investors and bad press have done Apple much damage. Can CEO Tim Cook do anything to pump some pride into what was until recently a mammoth $658 billion-worth corporation? By Steven Philip Warner
Five months into his tenure at Apple, Tim Cook invited a select group of Apple’s shareholders at the company’s conference center at 4 Infinite Loop building. The idea was to get those investors to understand the company and its new CEO better. In their few and many years as Apple investors, the shareholders had never believed, seen or heard of a calm Apple CEO. Jobs wouldn’t have bothered to entertain a lot of dozen-odd investors, out on a ‘bus tour’ of Apple’s campus. That summer (in August), Apple became the world’s most valuable public company ever (with an m-cap of $623 billion), beating the previous best of $620 billion set by Microsoft in 1999. But that’s when the dream ended.

The past half-a-year has earned Cook a bad name. Today, Apple is battling where it used to crush.


Disappointing reviews of its new launches – MacBook, Siri, Apple iMap – and some grossly misguided HR strategies (like the hiring of John Browett as Head of Apple’s Retail business and his firing in 9 months flat, and the firing and rehiring of Scott Forstall, the man behind the Siri and iMaps fiascos and one who was responsible for failing to make the iOS 5 and iOS 6 seem upgrades to the previous iOS versions) have weighed heavy on Apple’s stock price.

Cook is trying hard to regain lost ground. What is not true is that Apple is dying soon. Each day of his tenure, Cook has added $117.33 million to Apple’s m-cap. In the six quarters gone by, the company has reported a growth in its quarterly revenues and earnings on a y-o-y basis. The topline achieved in the most recent quarter ($54.51 billion; Q1, 2013) was the highest ever in the history of the company. In his year as CEO (FY2012), Apple’s revenues grew 44.58% y-o-y to touch $158.51 billion. Good numbers.


Cook realises that he has made mistakes. If the Siri and Apple Maps were jokes, the launch of the more expensive, thinner iMac, and the iCloud (that works only as well as Maps does) are areas where Cook will have to reinvent.

The form factor and lack of innovation with the iOS 6 introduced on the iPhone 5 and the hardware of the iPhone 5 are two other chapters from which he could dig out a lesson or two. Cook needs to understand that on the OS front, it has to fight with open source forms. One bomb is Android. So what should Cook do? In more ways than one, under Cook, Apple needs to open up. Within 12 months of his becoming CEO, Cook launched the 7.9-inch iPad mini that was 33% smaller and priced about 25-40% less than the iPad. Result? In Q1, 2013, the iPad mini outsold the original tablet 3:1. Today, tablets contribute to 20% of the company’s topline. The same magic needs to be repeated for the iPhone. This needs introduction of larger screen phones and lower-priced models that would give the company more market power in fast growing telecom markets like China and India. There is more to the introduction of the low-priced iPhone – a move that would prove beneficial for Cook and the Apple stock. The low end iPhones that Apple would deliver would call for margins of about 38%. That would be lower than the current 50%-levels that this category contributes, but would have dual benefits of making the company competitive in a tough environment and not dilute earnings at the same time. The right thing for Cook to do would be to introduce such a mid-range quality product at the $320-$340 price range (a low-cost 3G device, with at least 8GB of memory and a hardware similar to the iPhone 5). The low-end iPhone would be an indication if his claim is true.

Additionally, such an introduction would give rivals sleepless nights. As per Credit Suisse, this introduction would also help the iOS capture 40% share in the $300-$400 market. If Cook delivers the low-priced handset soon, when Gartner comes out with its market share findings in Q4, 2013, Apple’s share amongst smartphones will read between 24-28% (currently 20.9%).

In December last, of the 60-plus analysts covering Apple, only one rated Apple’s stock ‘Short Sell’ (as per Bloomberg data). Cook knows that most in the investor community believe it when they hear the sky is falling. It’s over $400 billion-plus in value he puts to risk each time. Cook cannot underestimate competition from Samsung – which is the smartphone leader today and threatens Apple’s dominance in smartphones. Its Galaxy S IIs, S IIIs and the newly launched S4 and the Notepads are ways for the users to consume larger screen phones. Apple could also replicate the Note’s multi-window home screen. It has been Samsung’s best user interface to date. It wouldn’t hurt Apple.

On the OS front, there is much work to be done still. Working along the lines of offering fresh user interface skins with each OS released, offering services web apps (to users who want to access Facebook or Amazon, or YouTube, rather than having to get into the App Store each time), or even doing something similar to Microsoft’s Live Tiles interface (that provides updates from web services to users without bothering to open apps) could be a start. Cook has to self-disrupt the closed world of iApps to an extent.

Finally, there is a big PR problem that Cook has to deal with. And it all starts with flamers and fanboys offerings concerns about Apple’s lack of innovation. At present, Apple spends the least on R&D and absolute terms amongst all bluechip Silicon Valley giants. It spent 2.2% of its topline on R&D in FY2012, as compared to Google, Cisco, Microsoft & Oracle – all of whom spent in excess of 10% of their revenues on R&D. Cook could divert a couple of billion dollars more into his labs and avoid another Maps or Siri debacle.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
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IIPM : The B-School with a Human Face

BBA Institute

The new buzz word in Motown: Affordable luxury

 The Indian automobile industry is facing one of its toughest periods in over a decade. In the period between April 2012 and February 2013, the industry registered a negative growth of -4.64% in the passenger cars segment. Sales of small and medium automobile segments are slacking off, which is in sharp contrast to the scorching pace of growth witnessed till a couple of years ago. Between FY2005-06 and FY2010-11, passenger car sales blazed at 15.2% per annum. That fell to 4.7% in FY2011-12, before languishing this past financial year.

The only silver lining has been the luxury end of the car market, which has been an exception to this anaemic trend. While the overall passenger vehicle industry has grown at a CAGR of 19.04% in the past four years, and the luxury vehicle segment has grown at a CAGR of 32.02% during the same period. Currently, of total car sales of 2.5 million, the luxury segment contributes only 1.2%. But the segment has been growing steadily over the past couple of years and is expected to contribute 4% of the total car sales in the next eight years. Experts believe that demand for luxury cars will rise to at least 50,000 vehicles by 2015, from 25,000 units sold in 2012.


Mercedes-Benz, which came to India in 1994, was the largest seller of luxury cars in India till a couple of years ago when fellow German rival, BMW, beat the company to the numero uno position in 2009. That year, Mercedes recorded 3,202 units in sales whereas BMW sold a good 3,587 units, topping the sales chart. Audi, which was then just making its presence felt in the Indian market, registered 58% of whopping yoy growth in 2009, selling 1,987 units. Since 2009, the competition has gotten more intense and scalding hot. The German players have been at each other’s throat, straining their muscles to outperform in the competitive luxury car market, which has grown thicker with the entry of newer players like Volvo and Jaguar Land Rover.

On one hand we have the entry level luxury brands like BMW, Audi, Mercedes and Volvo; on the other hand there are the mid-level luxury brands like Jaguar and Land Rover (starting from about Rs.5 million) and then there are the ultra-luxe brands, some of the biggest names in the sports car and super luxury segment, like Bentley, Lamborghini, Rolls Royce, Ferrari, Aston Martin, Maserati and Bugatti. The arrival of these big guns in the Indian market over the past two years has further redefined and segmented the luxury car market. So we now have the entry-level, mid-level, super luxury, sports cars and SUVs. Another key trend in this luxury space is the sudden upsurge in the entry level cars starting as low as Rs.2.2 million.

The trend was kicked off with BMW launching its X1 SUV model and lowering the entry level of its luxury cars to about Rs.2.2 million (ex-showroom). The idea is to generate volumes and so players like BMW are launching new products in the affordable luxury segment, where the demand actually is. In the process, the traditional luxury segment has now morphed into the premium category with most luxury car makers moving towards affordable luxury. In order to vroom ahead in this new “affordable luxury” category, BMW has introduced its sub-brand Mini Cooper, which it introduced at last year’s auto show in Delhi. It is planning to launch three models of this sub-brand in India − Mini Cooper, Mini Cooper convertible and Countryman, priced aggressively between Rs.2.49 million to Rs.3.19 million. Rivals Audi and Mercedes have also taken steps to create excitement in the entry level luxury segment. Last year saw Audi introduce its Q3 model (priced at Rs.2.67 million) while Mercedes has launched its B-class priced competitively at Rs.2.10 million, which competes with BMW X1 (priced at Rs.2.24 million).

As the churn in the luxury car market gets thicker, players are pulling out all the tricks to stay ahead in the competition by creating new segments and looking for new markets to generate demand. “As we move into the future, we are well positioned with a forward-looking strategy, progressive roadmap along with an exciting and emotional portfolio to tap the available market opportunities,” says Philipp Von Sahr, President, BMW India. So, BMW is tapping the market for commercial use of luxury cars such as premium hotels and cab owners and has gone for selling the stripped versions of its traditional luxury cars to generate incremental demand.

Likewise, Audi is contemplating to launch several initiatives on the pro\duct front this year. It plans to assemble the entry level Q3 SUV, which is giving good competition to the BMW X1, in India by the second quarter of this year. The price of Audi Q3, which starts from Rs.2.6 million, is expected to come down further once Audi starts assembling the Q3 in India. The car maker at present assembles sedan A4, A6 and SUV Q5, Q7 in India. Even, Mercedes has plans for expanding its product portfolio. “We would be launching one or two products, starting this year, with a B-class launch. And soon we would be launching an A-class product as well. Secondly, we are investing heavily on production at our factories. We want to make our CKD (complete knocked down) units because it take 2-3 years to get the CKD portfolio ready,” says Debashis Mitra, who was Director, Sales & Marketing, Mercedes India, before quitting just a few days ago.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
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IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year

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David vs Goliath!

In Maharashtra, domination of the Sharad pawar family over Cooperatives is being challenged, reports Chandran Iyer

People in Maharashtra are “cut up” at the Nationalist Congress Party (NCP) for two reasons. One is the infamous foot-in-mouth comment by the Deputy Chief Minister Ajit Pawar whose crass  `urine' remark at a rally to denigrate a farmer who was on hunger strike at Mumbai's Azad Maidan demanding relief from drought, has put the party in a corner. The other and potentially more dangerous - the terrible state of affairs in the state’s powerful cooperative sector which is mainly controlled by the NCP.

Sharad Pawar’s dream of becoming prime minister in a coalition government after the 2014 General Elections stands significantly dented with nephew Ajit Pawar's  freewheeling speech at a rally at Indapur where he  said, “If there is no water in the dams of Maharashtra, how can we release it? Should we urinate into it? If there is no water to drink, even urinating is not possible”.

While the crowd present there cheered momentarily at Ajit’s crass remarks, NCP supremo and his uncle, Union Agriculture Minister Sharad Pawar, distanced himself from his nephew,  pulling him up publicly at a rally. Ajit, quick to recognize the gaffe, sat on a ‘fast’ to  “atone” for his sins, describing it as “One of the worst political blunders of his life.’’

The token repentance fast which Ajit Pawar undertook under media glare may, perhaps, help soothe the frayed nerves of farmers facing an unprecedented drought this season. But what could take a long time to heal – if it does – is the festering wound in Maharashtra’s cooperative sector, well in control of the Pawar clan and its minions.

But this carefully choreographed family rule and utter domination of the state's cooperative sector is under threat for the first time. The one-man demolition army who has taken on the might of Sharad Pawar’s political muscle is Raju Shetty, farmer and independent MP from Hatkangale constituency of Maharashtra who has been snapping at the big man’s heels giving him sleepless nights by mobilizing farmers against him.

Shetty looks prepared to go all the way. He told TSI, “Until a few years ago, people in western Maharashtra  regarded Sharad Pawar as messiah of the Cooperative movement. His strangle-hold on the state’s sugar lobby and the Maharashtra State Cooperative Banks made him immensely powerful. But that grip is now slipping as I and my organization are holding rallies and exposing the NCP for what it is – a party more interested in feathering their own nests rather than look at the welfare of farmers”.

Like the David versus Goliath story, Shetty has considerably eroded the domination of Sharad Pawar in  western Maharashtra by spearheading a successful agitation for higher sugar-cane prices from sugar cooperatives.

Shetty’s first serious challenge to Pawar came before General Election, 2009. His Swabhimani Paksha party, which was set up the same year, defeated NCP’s Nivedita Mane by 95,000 votes despite a severe fund crunch. It is true though that Shetty has not been able to replicate this success in subsequent elections to local self-government bodies and continues to remain the lone MP from his party.


Says Ashok Kulkarni, top notch consultant to most sugar industries in Maharashtra, “Cooperative sugar factories (CSF) in Maharashtra are the fountainhead of corruption. What is shocking is that the state government doles out sugar factories to MLAs, MLC’s and other political leaders in which 90 per cent of the money invested is that of the public. The CSF and the District Cooperative Banks in Maharashtra often work hand-in gloves as both are under the direct control and tutelage of politicians”.

Since Cooperative sugar factories and Cooperative district banks are not run professionally – their sole existence is to rake in the money – many of them are in a complete mess.

Kulkarni, who has also conducted an in-depth study of corruption in sugar factories, had filed a writ petition in the Bombay High Court to inquire into the working of these factories. Based on his petition the high court on December 13, 2010, had asked the Comptroller and Auditor General of India (CAG) to submit ‘performance audit report’ of management of cooperative sugar factories in Maharashtra for the period between April 2007 and March 2010.

In 2006, Kulkarni had written a letter to the Bombay High Court pointing out to wide-spread malpractices in the Cooperative sector. It was turned into public interest litigation (PIL). Among other things, Kulkarni had complained that government was allowing new Cooperative factories to come up in areas where there was no sugarcane available.

Said Kulkarni, “Sugar factories in Maharashtra and District Cooperative banks have more often than not made news for the wrong reasons: corruption, nepotism, favoritism and gross mismanagement.  The state is losing hundreds of crores of rupees in subsidies and soft loans which are provided to the Cooperative factories because of mismanagement. Licences are issued for starting factories in areas where enough sugarcane is not available. Several Cooperative sugar factories in the state have shut down or making severe losses while many district cooperative banks have been dissolved”.

The mess appears to be getting worse. For instance the Reserve Bank of India (RBI) on May 29, 2012 dissolved the board of directors of the NCP-controlled Sangli District Central Cooperative Bank for rampant irregularities and blatant violation of the Banking Regulation Act.  This was done following a recommendation made by the National Bank for Agriculture and Rural Development (Nabard).

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

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