On August 23, 1973, a peculiar psychological phenomenon came into the limelight during a six-day hostage situation at Kreditbanken in Stockholm, Sweden. Jan-Erik Olsson, an armed robber, took four bank employees hostage.

During the standoff, these hostages developed a psychological alliance with Olsson, despite the danger they were in. This phenomenon, later termed ‘Stockholm Syndrome’, illustrates a paradox where captives express empathy and have positive feelings towards their captors.

A parallel can be drawn between this syndrome and the relationship between farmers and arthiyas (commission agents) in States such as Punjab and Haryana.

The arthiyas, who operate in the regulated mandi (market) system, exert a significant influence over the farmers, not just in crop procurement, but also as informal moneylenders. This dual role allows them to interlock the crop and credit market, thereby earning through commissions and interest, often at the cost of the farmers’ well-being.

The arthiyas, akin to captors, have created a dependency web around the farmers. This relationship is not just transactional but also psychological, somewhat mirroring the hostage-captor dynamic of Stockholm Syndrome. Farmers, despite recognising the exploitation, often show loyalty towards arthiyas, fearing the unknowns of direct market exposure. The arthiyas’ monopoly on procurement and their role as informal credit providers have made them indispensable in the eyes of many farmers.

In 2021, the Centre’s initiative to transfer the Minimum Support Price (MSP) directly to farmers’ bank accounts in Punjab faced resistance from arthiyas. This resistance underlined the deep-rooted influence and control they wield over the agricultural market. The farmers, on their part, echoed similar concerns, fearing the elimination of arthiyas would lead to greater exploitation by corporate entities.

Farmer protests

The farm laws introduced by the Modi government aimed to reduce farmers’ dependence on arthiyas and facilitate direct selling to institutional buyers. However, these reforms were met with widespread protests. Farmers and farmer unions perceived these laws as a move to corporatise agriculture, potentially leading to the marginalisation of small farmers and the elimination of arthiyas.

The farmers’ protests, especially those from Punjab and Haryana, were not just a fight for their rights but also a manifestation of their apprehension towards a future without arthiyas. They feared that in a market dominated by large corporations, they would lose the bargaining power and support system provided by the arthiyas. This apprehension led to a fierce resistance, culminating in the government repealing the laws.

This situation is a classic example of Stockholm Syndrome in the agricultural sector. Farmers, despite being exploited by arthiyas, feel a sense of security in the existing system. The thought of navigating a corporate-dominated market without the familiar face of the arthiyas seems more daunting. The farmers’ resistance was not just about preserving their livelihood but also about clinging to a known, albeit flawed, system.

Nuanced reforms

The controversy surrounding the farm laws highlights the need for a nuanced approach to agricultural reform. The government’s attempt to introduce these laws without adequate consultation with stakeholders, including State governments, farmers, and arthiyas, was met with criticism.

The way forward requires a balanced approach. Reforms in agricultural marketing are necessary, but they must be introduced in a manner that considers the intricate dynamics of the farmer-arthiya relationship. The government needs to engage in ‘talk therapy’ — open and empathetic dialogues with all stakeholders, including farmers and arthiyas. Understanding and addressing the concerns of farmers, while simultaneously regulating and making the activities of arthiyas transparent, is crucial.

The goal should not be to eliminate arthiyas but to reform their role in a way that supports both their livelihood and that of the farmers. Addressing this issue requires understanding, empathy, and a commitment to reform.

Vaid and Sahi are with University of Jammu. Modi is with BML Munjal University

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