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By:

Abhijit Mulye

21 August 2024 at 11:29:11 am

Shinde dilutes demand

Likely to be content with Deputy Mayor’s post in Mumbai Mumbai: In a decisive shift that redraws the power dynamics of Maharashtra’s urban politics, the standoff over the prestigious Mumbai Mayor’s post has ended with a strategic compromise. Following days of resort politics and intense backroom negotiations, the Eknath Shinde-led Shiv Sena has reportedly diluted its demand for the top job in the Brihanmumbai Municipal Corporation (BMC), settling instead for the Deputy Mayor’s post. This...

Shinde dilutes demand

Likely to be content with Deputy Mayor’s post in Mumbai Mumbai: In a decisive shift that redraws the power dynamics of Maharashtra’s urban politics, the standoff over the prestigious Mumbai Mayor’s post has ended with a strategic compromise. Following days of resort politics and intense backroom negotiations, the Eknath Shinde-led Shiv Sena has reportedly diluted its demand for the top job in the Brihanmumbai Municipal Corporation (BMC), settling instead for the Deputy Mayor’s post. This development, confirmed by high-ranking party insiders, follows the realization that the Bharatiya Janata Party (BJP) effectively ceded its claims on the Kalyan-Dombivali Municipal Corporation (KDMC) to protect the alliance, facilitating a “Mumbai for BJP, Kalyan for Shinde” power-sharing formula. The compromise marks a complete role reversal between the BJP and the Shiv Sena. Both the political parties were in alliance with each other for over 25 years before 2017 civic polls. Back then the BJP used to get the post of Deputy Mayor while the Shiv Sena always enjoyed the mayor’s position. In 2017 a surging BJP (82 seats) had paused its aggression to support the undivided Shiv Sena (84 seats), preferring to be out of power in the Corporation to keep the saffron alliance intact. Today, the numbers dictate a different reality. In the recently concluded elections BJP emerged as the single largest party in Mumbai with 89 seats, while the Shinde faction secured 29. Although the Shinde faction acted as the “kingmaker”—pushing the alliance past the majority mark of 114—the sheer numerical gap made their claim to the mayor’s post untenable in the long run. KDMC Factor The catalyst for this truce lies 40 kilometers north of Mumbai in Kalyan-Dombivali, a region considered the impregnable fortress of Eknath Shinde and his son, MP Shrikant Shinde. While the BJP performed exceptionally well in KDMC, winning 50 seats compared to the Shinde faction’s 53, the lotter for the reservation of mayor’s post in KDMC turned the tables decisively in favor of Shiv Sena there. In the lottery, the KDMC mayor’ post went to be reserved for the Scheduled Tribe candidate. The BJP doesn’t have any such candidate among elected corporatros in KDMC. This cleared the way for Shiv Sena. Also, the Shiv Sena tied hands with the MNS in the corporation effectively weakening the Shiv Sena (UBT)’s alliance with them. Party insiders suggest that once it became clear the BJP would not pursue the KDMC Mayor’s chair—effectively acknowledging it as Shinde’s fiefdom—he agreed to scale down his demands in the capital. “We have practically no hope of installing a BJP Mayor in Kalyan-Dombivali without shattering the alliance locally,” a Mumbai BJP secretary admitted and added, “Letting the KDMC become Shinde’s home turf is the price for securing the Mumbai Mayor’s bungalow for a BJP corporator for the first time in history.” The formal elections for the Mayoral posts are scheduled for later this month. While the opposition Maharashtra Vikas Aghadi (MVA)—led by the Shiv Sena (UBT)—has vowed to field candidates, the arithmetic heavily favors the ruling alliance. For Eknath Shinde, accepting the Deputy Mayor’s post in Mumbai is a tactical retreat. It allows him to consolidate his power in the MMR belt (Thane and Kalyan) while remaining a partner in Mumbai’s governance. For the BJP, this is a crowning moment; after playing second fiddle in the BMC for decades, they are poised to finally install their own “First Citizen” of Mumbai.

Ploughing Through the Problems

India’s agricultural story is one of paradoxes. Despite employing nearly half the workforce and contributing 16 percent to GDP, the sector lags behind industry and services in growth. Once dependent on food imports, India became self-sufficient in grains thanks to the Green Revolution. But in 2024, its agriculture still struggles with stagnant productivity, declining groundwater levels, and the challenges of small landholdings. Unless policymakers address these structural issues, India’s food security and rural livelihoods will remain precarious.


Spanning 328.7 million hectares, India’s landmass is among the largest in the world, with 54.8 percent devoted to farming. Yet, productivity remains low. Between 2001-02 and 2022-23, agriculture grew at an average of 3 percent annually, while the economy expanded by 7 percent. Food grain production has risen, but except for sugarcane, India’s crop yields in 2022-23 still trailed the global average.


Despite a budgetary allocation of Rs. 3 trillion, including Rs 1.37 trillion for agricultural development and Rs. 1.67 trillion in fertilizer subsidies, government spending has not translated into proportional gains. A primary culprit is the highly fragmented nature of landholdings. As of 2015-16, 68 percent of farms were smaller than one hectare, with the average size declining from 1.23 hectares in 2005-06 to 1.08 hectares a decade later. Small farms hinder mechanization, limit economies of scale, and restrict access to quality inputs.


Recognizing the issue, policymakers have attempted solutions like Farmer Producer Organizations (FPOs), which help small farmers aggregate resources, reduce costs, and negotiate better prices. Launched in 2020, the government’s scheme to create 10,000 FPOs with Rs 6,865 crore in funding was achieved by February 2025. A study in Maharashtra found that FPO members benefited from a 22 percent improvement in price realization and a 30 percent reduction in marketing costs. However, only 20 lakh farmers have enrolled, a fraction of the 130 million farmers nationwide. Stronger state-level participation is needed to expand its reach.


Water Woes

Irrigation remains another major challenge. Of India’s net sown area, 55 percent is still rain-fed, leaving crops vulnerable to erratic monsoons. Where irrigation does exist, it is skewed—63 percent relies on groundwater extraction, while canal irrigation accounts for just 24 percent. Unchecked extraction has led to depleting water tables, particularly in Punjab, Haryana, and Maharashtra, where water-intensive crops such as rice and sugarcane dominate.


Government policies often exacerbate the problem. Free electricity and water subsidies encourage inefficient usage, benefiting politically influential states while depriving others. A study by the Central Ground Water Board projects that Punjab’s groundwater levels could plummet by 1,000 feet by 2039, a looming ecological disaster.


To counter this, the government has expanded the Per Crop More Drop scheme under the Pradhan Mantri Krishi Sinchayee Yojana, spending Rs. 50,000 crore since 2015. Its 2025-26 budget of Rs. 8,500 crore is the highest yet, benefiting 4.8 million farmers. But irrigation expansion, primarily a state responsibility, has been hampered by bureaucratic delays, corruption, and intergovernmental friction. While projects like the Bhakra Nangal and Sardar Sarovar dams transformed agriculture in Punjab and Gujarat, many initiatives remain stuck in political quicksand.


Another neglected aspect of agricultural reform is seed quality. The Doubling Farmers’ Income (DFI) committee estimates that better seeds alone could boost yields by 15 to 20 percent. Yet, the seed replacement rate—a key indicator of improved crop genetics—remains at just 40 percent for major crops. Without wider adoption of high-yield varieties, productivity gains will remain sluggish.


Modernization efforts are similarly lagging. Despite mechanization programs and technology subsidies, only large farms benefit, while smallholders continue using outdated methods. Investment in agri-tech startups and digital platforms could help bridge this gap, but adoption has been slow outside major farming states.


Political Tangle

Agricultural reform in India is often hostage to politics. Attempts to overhaul outdated policies, such as the controversial 2020 farm laws, have met with fierce resistance. While the laws aimed to liberalize agricultural markets, the government’s abrupt withdrawal following protests underscored the difficulty of reforming India’s farm sector. Yet, without bold policy changes, the sector will continue to suffer from inefficiencies that hinder its long-term viability.


India’s agricultural success has long been built on resilience. But resilience alone will not secure the future. Without tackling land fragmentation, improving irrigation, encouraging better seed adoption, and reforming subsidy regimes, the country’s farming sector risks stagnation. India needs not just higher yields but smarter policies that put the farmer, not politics, at the centre of agricultural growth.


(The author is a Chartered Accountant with a leading company in Mumbai. Views personal.)

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