Outsourcing Indian Farming.'Rain Prayer' Unites India Muslims, Hindus !
Troubled Galaxy Destroyed Dreams, Chapter313
Palash Biswas
http://nandigramunited.blogspot.com
'Rain Prayer' Unites India Muslims, Hindus
IslamOnline.net & News Agencies
JHARKHAND, INDIA – With arms up and eyes glued to the sky, a group of Muslim farmers in Satbarwa village in India's eastern state of Jharkhanda are praying to Allah for rainfall.
A distance far, a group of Hindu farmers are ringing the temple bells, hoping to catch the ear of the rain god.
"There has been no rain so far this year," Abdul Sakur, a Muslim farmer from Khola village, told the BBC on Saturday, August 1.
"We have not been able to sow rice. Our corn crop has been destroyed by pests. We have nothing to eat. We have nothing to feed our cattle.
"There is a pond in our village. But it has no water. It's all dry."
Satbarwa and surrounding villages have been suffering a shortage of rainfall this season.
This has turned the life of the residents into a nightmare, as 80 percent of the population are dependent on farming.
"We are in the throes of a famine," Vinod Thakur, a Hindu resident of Makri village, said.
"Water shortage is our biggest problem. We have had no rains this year so we can't grow rice."
There are some 140 million Muslims in Hindu-majority India.
Hindus make up 80 percent of India's 1.1 billion population, followed by Muslims at 13 percent.
Neglect
Residents accuse the government of turning its back to them.
"The government is supposed to give us 10kg of rice every month," Sanjhar Bhuin, 70, a widow, told BBC on Saturday, August 1.
"But they say they'll give it to us when they get it. We haven't received any rice since April. We are dying of hunger."
Known as a "rich state", Jharkhand has nearly 40 percent of India's mineral reserves.
However, Jharkhand residents are among India's poorest people, whose free ration is usually late.
Every day, Bhuin walks nearly 15km to the nearby Dhurki village to ask for her ration.
But what she only gets is government promises to fulfil her needs.
"It is our top priority to ensure food security and survival of the people - our fight here is with hunger," Amitabh Kaushal, senior administration official in Palamu, said.
"We are working hard to reach areas which are not easily accessible. They are starvation-prone areas. We're trying to identify them so that we can give them the benefits of these free food grains."
Nevertheless, residents, experienced with their governments vaporizing promises, don't build great expectations.
"There is too much corruption in the system," Mohammad Khairullah of Dhurki town said bitterly.
"Only a fraction of the money sanctioned by the government ever reaches the people. Is the government doing anything about it?"
Nand Gopal Yadav, another farmer, points the finger at the government neglect.
"If the government builds a dam on Kanhar river, it will irrigate the whole of Garhwa district And that will solve our problem," said Yadav.
"But the government is interested only in projects which make them richer.
"Cruel weather and uncaring authorities are threatening our existence. No one really cares."
Ambani brothers' gas dispute ups India investment risks
Mon Jul 20, 2009 1:22pm IST
By Rina Chandran
MUMBAI (Reuters) - The wrangle over an energy deal between the billionaire Ambani brothers has highlighted the risks inherent in an economy dominated by big family businesses and spurred calls for the government to intervene.
The latest dispute between the feuding brothers could discourage investment in the energy sector as the country scrambles to shore up its energy security.
It also tests governance standards for a nation that ranks a lowly 180 when it comes to enforcing contracts on the World Bank's index on ease of doing business. Only Benin ranks worse.
The near-three-year battle between India's top conglomerate Reliance Industries, headed by Mukesh Ambani, 52, and Reliance Natural Resources, led by estranged brother Anil, 50, is being heard in the Supreme Court.
The two sides are fighting over terms of a gas-supply agreement struck when the Reliance empire was split in 2005. The Bombay High Court ruled last month that Reliance Industries should supply gas to Reliance Natural at nearly half the price it had set in an interim order in January.
The gas in dispute comes from the vast Krishna Godavari (KG) basin, and some in India have said terms of access to such a crucial resource in an energy-starved country should not be left in private hands.
"If a private MOU (memorandum of understanding) can involve something that belongs in the public domain, it gives the sense that large corporations can bend rules and influence policy -- that's surely got to be the biggest political risk," said Seema Desai, an analyst at risk consultancy Eurasia Group in London.
The government has largely been silent, which could make investors wary, said strategist Arun Kejriwal at KRIS Research. Continued...
New Delhi: Monsoon rains during June and July were at their worst level since 2004, 19% below the seasonal average, prompting analysts to warn that these were near- drought conditions.
Shortfall: Rainfall in July, the key monsoon month, was close to its 50-yr average of 27cm, IMD says. Rupak De Chowdhuri/Reuters
Better rainfall in the latter half of July was not sufficient to bridge the rainfall deficit, implying that agricultural sowing, especially for rice, would not pick up. Any shortfall in foodgrain production could put further pressure on food prices.
“July has seen typical drought conditions,” said Madhavan Rajeevan, former director of forecasting with the India Meteorological Department (IMD). “The next week is unlikely to see improved activity, and by then sowing would have pretty much drawn to a close. By September, the effects of El Nino would be evident. So in a sense, the best is far behind us.” El Nino is a weather phenomenon characterized by a warming of the eastern equatorial Pacific Ocean waters and can disrupt normal monsoon patterns.
Rainfall during July, India’s most important monsoon month, was close to its 50-year average of 27cm, the country’s official forecaster said on Thursday. IMD, in the last week of June, had predicted July rainfall for the country to be around 24cm. “We got excess rain in July and we are still optimistic that August should fall within our prediction of 101% of its monthly average,” said Ajith Tyagi, director of IMD.
India’s below-normal monsoon has caused a significant decline in the area under foodgrain cultivation, a trend that, if it lasts, could trigger a rise in food prices. Food price inflation based on the Wholesale Price Index for the week ended 18 July was 11.7%, while the overall inflation rate continued to contract at 1.54%.
Agriculture minister Sharad Pawar had told the Rajya Sabha last Friday that the area sown under rice in the year as on 17 July fell to 11.46 million ha, from 14.52 million ha in 2008, a fall of 21%.
Farmers have begun substituting foodgrain with cash crops, which require less water. Overall, the area under the summer kharif crop cultivation contracted by 8%.
Experts warn that this is among the first signs of the negative impact of the monsoon rainfall’s failure on the country’s agricultural gross domestic product, but say a conclusive picture will emerge only by January.
The June-September monsoon accounts for nearly 80% of the annual rainfall and is vital for the economy, being the main source of water for agriculture, which accounts for around 17% of India’s economy.
The current year’s monsoon is considered to be crucial for the economy as buoyant rural consumption has been a key driver of growth amid an economic downturn. While the country has sufficient food stocks to tide over any crisis this year, the rise in food prices that will follow a poor monsoon and, consequently a poor harvest, could wreak havoc on the economy.
A report by credit ratings firm Moody’s expressed concern that a poor monsoon may slow India’s economic recovery. “The monsoon problem is unlikely to be strong enough to derail India’s economic recovery, but it could drag on the pace. India’s rural population accounts for a large share of total consumption... Therefore, a sizeable slowdown in rural spending will limit overall consumption growth,” the research arm of Moody’s said in its latest report.
Moody’s puts 13 Indian banks under review
Global rating agency Moody’s Investors Service has placed the ratings of 13 Indian banks on review for a possible downgrade
Anup Roy
Mumbai: Global rating agency Moody’s Investors Service has placed the ratings of 13 Indian banks on review for a possible downgrade. The move follows the ratings firm’s global review of systemic support indicators for the banking system.
The banks under watch includes State Bank of India, ICICI Bank Ltd, Punjab National Bank, Bank of Baroda, Bank of India, Canara Bank, HDFC Bank Ltd, IDBI Bank Ltd, Union Bank of India, Axis Bank Ltd, Central Bank of India, Syndicate Bank and Oriental Bank of Commerce.
The systemic support indicators include the size of the banking system in relation to government resources, the level of stress in the banking system, the foreign currency obligations of the banking system relative to the government’s own foreign exchange resources and changes to the government’s political patterns, the rating agency said in a statement late Thursday.
http://www.livemint.com/2009/05/29214435/Moody8217s-puts-13-Indian-b.html?d=1
Real estate, infrastructure loans show strong growth
Loans to professionals, non-banking financial companies also grew at a robust rate
Mark to Market | Manas Chakravarty and Mobis Philipose
* Posted: Tue, Jul 28 2009. 12:44 AM IST
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* Money Matters
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Real estate, infrastructure loans show strong growth
Loans to professionals, non-banking financial companies also grew at a robust rate
Mark to Market | Manas Chakravarty and Mobis Philipose
Which sectors have banks been lending to in recent months?
The Reserve Bank of India’s macroeconomic and monetary developments review has data up to 22 May on lending to various sectors.
Consider housing first. Year-on-year growth in housing loans slumped to 5% on 22 May, compared with a year-on-year growth rate of 7.5% on 27 February.
Loans to the real estate sector, or loans to the commercial housing sector, grew by a strong 52% year-on-year, albeit on a much lower base.
On 27 February, loans to the real estate sector grew by 61.4% year-on-year.
Between 28 February and 22 May, housing loans increased by Rs3,138 crore, while bank loans to real estate companies went up by Rs3,734 crore.
In short, loans to real estate companies were more than loans for individual housing.
After a rise in bad loans in the credit card business, banks have started to cut back on lending to this segment.
Between 28 February and 22 May, credit card outstandings went down by Rs1,949 crore. Year-on-year growth in credit card outstandings was a mere 1.4% on 22 May.
The data bears out the fact that most of the slowdown in lending has happened in personal loans.
On 22 May, year-on-year growth in personal loans was 5.5%. Lending to industry grew at a year-on-year rate of 21.2%, while loans to the services sector increased by 20.5% year-on-year.
In the services sector, apart from real estate loans, loans to professionals (up 39.8% year-on-year) and to non-banking financial companies (up 31.5% year-on-year) also showed robust growth.
In the industrial sector, the highest rate of growth was notched up by the construction sector which grew by 44.7% year-on-year on 22 May. But that’s decelerated from a growth rate of 58.8% as on 27 February. Loans to infrastructure were up 35.1% year-on-year on 22 May, the same rate of growth on 27 February. Other industrial sectors showed a deceleration in credit growth.
The oil sector, of course, showed a substantial fall in credit growth as crude oil prices fell and as oil bonds were issued.
http://www.livemint.com/2009/07/27215558/Real-estate-infrastructure-lo.html?d=1
Hero Honda gains from lower costs, tax sops
Although Hero Honda has not beaten estimates by a wide margin, it is still the preferred stock in the two-wheeler space because of its consistent performance
Mark to Market | Mobis Philipose and Ravi Krishnan
The first quarter net profit of Rs500 crore posted by Hero Honda Motors Ltd has been better-than-expected. While this is higher than the Rs463 crore consensus estimate of analysts polled by Bloomberg, it hasn’t come as a surprise. After all, other auto firms such as Bajaj Auto Ltd and Tata Motors Ltd also beat expectations this season, and that too by much wider margins. The auto industry has benefited from lenders loosening their purse strings and commodity prices softening.
Although Hero Honda hasn’t beaten estimates by a wide margin, it is still the preferred stock in the two-wheeler space because of its consistent performance. The company has an edge over its competitors thanks to its decision to focus on rural sales. Since rural consumers don’t depend on financing schemes, the company was able to ride out the lack of consumer financing options and avoid a dip in sales. In the first quarter this fiscal, Hero Honda dispatched more than one million vehicles, a first for the firm, as volumes grew 25%.
Also Read Hero Honda net up 83% on sustained rural growth
Hero Honda has pruned costs thanks to its factory in Haridwar, Uttarakhand. Analysts estimate at least a quarter of Hero Honda’s motorcycles are manufactured at Haridwar. In the last June quarter, this was about 5%. Thanks to various incentives such as an excise tax waiver for 10 years, income-tax exemption and an investment subsidy at this plant, the firm’s sales net realizations and profitability are much higher. On a per unit basis, average realizations grew 7.1% to Rs34,058 per unit.
Raw material savings also were better than expected, especially with a steeper fall in aluminium prices, say analysts. Two-wheelers use more aluminium (as a percentage of total metal used) than four-wheelers. Raw material costs as a ratio of net sales fell to 67.6% last quarter compared with 72.5% in the year-ago period. Consequently, operating profit almost doubled to Rs604 crore and operating margin rose by 5.1 percentage points.
It will be difficult to sustain such high growth rates. Hero Honda sells 60% of its vehicles in rural India, a segment that depends on the monsoon. Despite a late surge in July, rains are 19% below normal and have delayed sowing in several areas. And competition in the urban segment is expected to get tougher with new vehicle launches from peers and easier financing. With the firm now valued at 19 times estimated 2009-10 profit, further upside may be limited.
http://www.livemint.com/2009/07/29222027/Hero-Honda-gains-from-lower-co.html?d=1
Adani Power IPO subscribed 18 times
Adani Power got bids for a total 5.35 billion, against the 248.8 million shares it offered to buyers, excluding six institutions, according to NSE data
Gaurav Singh / Bloomberg
New Delhi / Mumbai: Billionaire Gautam Adani’s power company on Friday got at least Rs49,000 crore worth of bids, 18 times the amount it’s seeking to raise in its initial public offering (IPO), as a 62% market rally this year drew investors to the country’s biggest offering in 18 months.
Adani Power Ltd got bids for a total 5.35 billion, against the 248.8 million shares it offered to buyers, excluding six institutions, according to National Stock Exchange data.
Anchor investors, including Credit Suisse Group AG and T Rowe Price International Inc., bid for 94 million shares, almost double the 52 million shares offered to them, director Ameet Desai said in an interview. The firm plans to raise at least Rs2,710 crore from 301.6 million shares in the biggest issue since Reliance Power Ltd raised $3 billion (Rs14,460 crore today) in January 2008.
Drought spreads in bread belt
TAPAS CHAKRABORTY
Lucknow, July 27: Nearly 70 per cent of Uttar Pradesh, the bread basket that accounts for 21 per cent of the country’s grain output, has been declared drought-hit.
Officially, 47 of the state’s 70 districts have got the tag, 27 of them last evening. The declaration has rung alarm bells among farmers and prompted the Mayavati government to mount crisis-management measures, besides asking for central assistance.
A drop in farm output in the state spells trouble for the country’s overall harvest, for consumers already reeling under high food prices and for the rural economy on whose strength the Centre is hoping to fight the downturn.
Chaudhary Laxmi Narayan, the state agriculture minister, said sowing was only 30 per cent of the level during this period last year. “We are going to set aside Rs 300 crore (for drought relief) and have sought an assistance of Rs 600 crore from the Centre to help our farmers,” he said.
“We will supply fresh seeds (of the kind that requires less water) as part of the relief package,” he added.
Government estimates say rains were 58 per cent below normal between June 1 and July 22.
“Immediately affected is the rice crop. Production is likely to fall as sowing is down,” said chief secretary Atul Chandra Gupta. The state is India’s third largest rice producer.
Impact of weak monsoon on Kharif
27 Jul 2009, 0032 hrs IST, Usha Tuteja,
The likelihood of weak monsoon rains, crucial for kharif output in India, is causing great worry to farmers, media and policymakers. Rainfall is
improving but three-fourth of the country has so far received scanty or deficient rains. The key foodgrain producing states — Punjab, Haryana, Rajasthan, UP, MP and Himachal Pradesh — are worst hit. The situation has become so bad that MP sought to be declared a drought affected state.
Deficient monsoon will impact the agriculture sector as a whole and kharif output in particular. Risk to the rainfed crops is greater because their sowing season extends from June to August, when country receives two-third of its monsoon rainfall.
The monsoon rains determine water availability for 58% of the country’s net sown area that produces major crops like rice, pulses, oilseeds and cotton. The late sowing of these crops will lead to shorter crop cycle and will reduce yield significantly. The overall impact of monsoon rainfall on kharif output will depend on its quantum as well as regional and temporal distribution.
A setback to the monsoon could reduce already poor agriculture growth and will have an impact on the overall economic growth of the country, particularly when other important sectors are not performing well. Since more than 50% of workers’ households primarily depend on agriculture for their livelihoods, low rainfall could hit the household budget of the poor by pushing food prices further up due to low production and shrinking supply of the food articles. This could reduce demand in rural areas for other items due to income contraction.
The government can take some comfort from the high procurement of wheat and rice last year. Overall stock of foodgrains with the central government is around 50 million tonnes. But, deficit in production of rice and other important crops like pulses and oilseeds could scupper the Food Security Act, which the UPA government plans to introduce in the next session of Parliament.
Under the Act, the government proposes to promise a hunger-free India by giving subsidised foodgrains to people below the poverty line. The UPA plans to offer 25 kg of cereals at Rs 3 per kg each month to an expanded set of beneficiaries including bonded labour, agricultural labour, destitutes, artisans, rag pickers, etc. According to one estimate, 50 million tonnes of cereals will be required annually for distribution under the Food Security Act.
Uninterrupted supply of foodgrains through the PDS is needed to keep this promise. The present buffer stock will help to cope with the problem to some extent but maintenance of the minimum buffer stock would require replenishment of stocks. Food stamps or cash transfers based on Unique Identification Card (UIP) would be superior alternative. But, preparing a UID for millions of poor is a daunting task and it will take some time. Therefore, the immediate solution would be to improve the efficiency of the PDS and make it widespread across the states with larger proportion of the poor.
The country could face further shortage of commonly consumed pulses like arhar, moong and urad, which are regularly imported by the country to bridge the demand-supply gap. Similarly, oilseeds could be in short supply and country has to resort more imports. These conditions will exert pressure on prices of these essential commodities and hurt the consumption of poor.
The deficient rainfall in June has affected the supply of vegetables badly, leading to rise in their prices. According to Delhi Agriculture Marketing Board, a decrease of 20% has been registered in the supply of vegetables this month in comparison to the last year. The prices of vegetables might shoot up, if the situation does not improve. The retail prices of vegetables have seen a remarkable increase in the last one month. The prices of vegetables such as tomato and potato have increased by 50%. The poor weather condition has also affected the quality of vegetables. Most of the vegetables get spoiled due to higher temperature.
The Centre’s contingency plan to deal with deficient monsoon by distributing seed varieties to rainfed areas, which covers around 60% of cropped area, could help marginally. There is a lot at stake this year due to the slowdown in economy and huge pressures on the fisc. The UPA’s focus on the aam aadmi needs to deliver food security to the poor and vulnerable sections of the society and this is possible when domestic production is sufficient and food is accessible and affordable for the common man.
(Acting Director, Agricultural Economics Research Centre, University of Delhi)
http://economictimes.indiatimes.com/Opinion/Comments-Analysis/Impact-of-weak-monsoon-on-Kharif/articleshow/4823521.cms
Outsourcing farming for food security
27 Jul 2009, 0015 hrs IST, Sudhir Kapur,
The need for food security is a critical element in a nation’s quest for acquiring a status of pre-eminence in international arena. Among the
elements of national power defined by Hans J Morgantheau in ‘Politics Among Nations’, food security is an essential element, the others being geography, natural raw materials, industrial capacity, military preparedness, population, national character, national morale, quality of diplomacy and quality of government.
The military supremacy of erstwhile colonial powers of the 19th century i.e., the UK, Germany, Japan and others was challenged when their Blue Water naval capability could not ensure unobstructed food imports. The Post World War II political-military-economic world order has been dominated by the US and erstwhile Soviet Union (now Russia), primarily because they had a large territory and a self-sufficiency in food and other natural resources.
Indian government realised the criticality of maintaining self-sufficiency in food only after the disasters of 1962 and 1965 wars. The green revolution of the late 1960s turned out to be only a temporary solution wherein 4-5 north Indian states were to be grain basket for the country in its endeavour towards self-sufficiency in food.
However, declining agricultural productivity and a need for feeding a rapidly growing population with rising levels of food consumption has made it obligatory to undertake urgent measures more than just giving subsidies, loan waivers etc. The expansion of cultivable land, both within the country and overseas, could be a possible solution.
Even as outsourcing in IT and ITES has been impacted by a recent wave of protectionism in the US and Europe, outsourcing of farming and farmlands is emerging as a major opportunity. This can also help control price spikes such as seen during 2007-08 when some largest foodgrain exporting countries such as Russia, Argentina and Vietnam had curbed exports in a bid to control domestic price rise. In a recent report by International Food and Policy Research Institute, it has been stated that many governments, either directly or through state-owned entities and public-private partnerships, are making overseas arable land leases, concessions or outright purchases.
http://economictimes.indiatimes.com/Opinion/Comments-Analysis/Outsourcing-farming-for-food-security/articleshow/4823456.cms
Twenty-seven more districts in Uttar Pradesh were declared drought-affected on Sunday after a fresh review by the State government.
This brings the total number of drought-hit districts in the State to 47. Twenty districts were declared drought-affected on Saturday.
These districts received less than 40 per cent rainfall and the sowing was less than 75 per cent. The State has a total of 70 districts.
Big schemes
In a letter to Prime Minister Manmohan Singh, Chief Minister Mayawati reiterated the demand for a Rs.80,000-crore special incentive package for Bundelkhand and Purvanchal (eastern U.P.) regions.
In another letter to Dr. Singh, the Chief Minster urged the Centre to approve a special package for Bundelkhand based on the recommendations of the Samra Committee. She also demanded allocation of big Central schemes for the backward region.
Recovery suspended
Chief Secretary Atul Kumar Gupta told journalists here that following the decision to declare 27 additional districts drought-affected, recovery of land revenue and irrigation charges from farmers had been suspended till March 2010.
He said directives had been issued against using coercive measures for recovery of bank loans and power dues from farmers in these districts. Mr. Gupta said a close watch was being kept on the situation.
Referring to the letters written by Ms. Mayawati to the Prime Minister, Mr. Gupta said the Centre had been asked to play a proactive role in the development of the State.
Manmohan informed
The Chief Minister has apprised Dr. Singh that the Samra Committee, constituted by the Planning Commission for studying the drought situation in Bundelkhand in 2007-08, had approved a separate package of Rs.3,866 crore, including Rs.1,500 crore for water management and Rs.1,050 crore for agriculture purposes.
Ms. Mayawati regretted that the package had not been approved by the Central government.
Training to be given in modern farming
R. Sairam
MADURAI: Training in modern farming techniques would be imparted to more than 1,250 farmers in Madurai district by National Bank for Agricultural and Rural Development (NABARD) in the current financial year.
The training will be supported through the Farmers Technology Transfer Fund (FTTF) set up by NABARD to help farmers in accessing appropriate technologies for improved and increased productivity, R. Shankar Narayan, Assistant General Manager, NABARD, told The Hindu.
“The fund will promote formation of Farmers’ Clubs, which will be a conglomeration of model farmers’ wanting to adopt latest farming technology. Each club will comprise around 25 members and 50 such clubs would be formed this fiscal in the district through NGOs and banks,” he said. Through these activities, NABARD would try to empower farmers and create a pool of model farmers.
In the last fiscal also, 50 Farmers’ Clubs were formed and various training programmes were conducted. As a part of the ‘meet with experts’ initiative under the aegis of Farmers’ Club, the members can take part in one-day training programmes on organic farming, improved farm mechanised techniques, and improvised agricultural practices and so on. Till date, 377 projects have been completed.
http://www.hindu.com/2009/07/27/stories/2009072750150100.htm
Jharkhand farmers despair at drought
By Geeta Pandey
BBC News, Ranchi, Jharkhand
Nearly 80% of people in Jharkhand are dependent on farming
In Satbarwa village in the eastern Indian state of Jharkhand, scores of Muslim farmers have gathered in the village square. Their arms raised, eyes fixed on the sky, they pray for rains.
"Allah, forgive our sins, reward our good deeds. Our ground is parched, our cattle are dying. Please bring in the rain."
Some distance away, a group of Hindu farmers ring the temple bells, hoping to catch the ear of the rain god.
With the monsoon bringing little rainfall this season, the land is dry and unfit for cultivation and the worry lines are getting deeper.
"There has been no rain so far this year," says Abdul Sakur, a farmer from Khola village.
"We have not been able to sow rice. Our corn crop has been destroyed by pests. We have nothing to eat. We have nothing to feed our cattle.
"There is a pond in our village. But it has no water. It's all dry."
"We are in the throes of a famine," says Vinod Thakur, a resident of Makri village.
"Water shortage is our biggest problem. We have had no rains this year so we can't grow rice."
'Dying of hunger'
Mr Sakur and Mr Thakur are among the hundreds of men and women who have come from surrounding villages to the town centre in Dhurki on this hot afternoon to meet government officials, to appeal for help.
Abdul Sakur
The villagers have nothing to eat, Mr Sakur says
But some are already going back disappointed.
Sanjhar Bhuin, 70, is a widow and she has been coming to Dhurki every day for the past 10 days from her village 15km (9 miles) away.
"The government is supposed to give us 10kg of rice every month," she says.
"But they say they'll give it to us when they get it. We haven't received any rice since April. We are dying of hunger."
By simple logic, Jharkhand should be a prosperous state with nearly 40% of India's mineral reserves, but the state has some of India's poorest people as its citizens.
Employment opportunities are few and nearly 80% of the population is dependent on the farm sector.
But farming here is dependent on the rain water and villagers say inadequate rainfall over the past four years has reduced them to penury.
Cynics call it a "rich state of poor people".
Worried
We drive several hundred kilometres from the state capital, Ranchi, to Latehar, Palamu and Garhwa districts in the north-west.
Sanjhar Bhuin
Many villagers say they have received no rice since April
We stop in towns and villages and everywhere we come across people worried about the lack of rain and the crop failure.
They beseech us to write about their plight, maybe then the government will put some food on our plate, they say.
The government says it is listening.
In the last few days, 11 districts have been declared "drought-hit" and authorities have announced free ration for people living below the poverty line in those areas from 1 August.
"It is our top priority to ensure food security and survival of the people - our fight here is with hunger," says Amitabh Kaushal, senior administration official in Palamu.
Mr Kaushal says the government has created a food stock for the infirm, the destitute and the disabled, and the poor:
"We are working hard to reach areas which are not easily accessible. They are starvation-prone areas. We're trying to identify them so that we can give them the benefits of these free food grains."
Sceptical
Mr Kaushal says local officials have been asked to set up camps in remote areas to ensure that food reaches people in the remotest areas.
Nand Gopal Yadav
Mr Yadav says the government does not care
The villagers in Palamu and Garwah, however, are sceptical.
"There is too much corruption in the system. Only a fraction of the money sanctioned by the government ever reaches the people. Is the government doing anything about it?" asks a bitter Mohammad Khairullah of Dhurki town.
He is speaking from experience.
There are existing government schemes to feed the poorest of the poor, provide them with free food grains or offer rice and wheat at highly subsidised prices.
But, across India, a lack of political will has meant the grains meant for the poor often get lost in transit - they are pilfered by corrupt officials and sold on the black market.
"If the government builds a dam on Kanhar river, it will irrigate the whole of Garhwa district And that will solve our problem But the government is interested only in projects which make them richer," says farmer Nand Gopal Yadav.
"Cruel weather and uncaring authorities are threatening our existence. No one really cares."

Hi, anybody knows the button of the these current recession , if yes than please pull the button as due to these the outsourcing is badly affected letting thousand of them to be unemployed.The government of the country should take any bold step to avoid such situation.
Prestiti personale