Tyre Cartel-BJP ‘Collusion’ Ruining Rubber Farmers, Plantation Workers, MSMEs, Alleges AIKS

The electoral bond scam has re-emphasised the deep rooted and unholy nexus between crony capitalists and ruling class parties, alleges the AIKS. Since the revelation of the payments made into the coffers of the Bharatiya Janata Party (BJP), several dimensions of the pay-offs and quid pro quos have emerged.

One such is a revelation laid out in the press statement issued by the AIKS. It has also come to light that the leading tyre monopolies have directly paid the ruling Bharatiya Janata Party (BJP), amounts of Rs 6 crores and 15 lakhs in what appears to be to obtain government silence on “illegal cartelisation.

According to the data released by the Election Commission, BJP, the ruling party has received 6 crore rupees from CEAT and 15 lakh rupees from MRF, both monopoly manufactures. According to the AIKS, these three tyre monopolies—which were fined by Competition Commission of India (CCI) for cartelisation— have made these donations during 2019 Lok Sabha elections. The AIKS alleges that this is a quid-pro-quo arrangement to facilitate profiteering by the tyre cartel at the expense of millions of rubber farmers. “The BJP Government led by the Prime Minister Narendra Modi is culpable of being a wilful colluder to policies at their behest and detrimental to farmers”, states the press release. President of AIKS, Ashok Dhawale and Secretary, Vijoo Krishnan are signatories to the press release.

The other two major players of the tyre cartel—JK Tyre and Birla Tyre—are conspicuously absent in the list. However, sister concerns of JK and Birla Conglomerate have donated handsome amounts to both BJP and Congress. Notably, the amount donated by the MRF, the mainstay of the tyre cartel, is comparatively smaller when compared to CEAT and Apollo. An in-depth scrutiny of the data is needed to ascertain whether MRF deployed the “Reliance method” of using shell companies and trusted individuals for transactions.

Besides, says the AIKS, it is clear that monopolies leading the notorious tyre cartel made these donations to the ruling party to “gag them from acting against the cartel” which is devastating the livelihood of millions of rubber farmers, plantation workers, small and medium traders, and MSMEs. The CCI judgment had disturbing insights to the market manipulation practiced by the tyre cartel. Parties that represent dominant economic and power interests have been strong votaries of the India ASEAN Free Trade Agreement which is ruining rubber farmers. Unfair trade policies are leading to import of rubber from highly subsidised ASEAN countries resulting in price crash and acute distress for rubber farmers. Cryptically states the press note, “The Prime Minister Narendra Modi who sheds crocodile tears on the plight of rubber farmers and the BJP Government actively supported the manipulations by the tyre cartel. The complicity of BJP in the whole affair needs to be exposed and their accountability has to be ensured.”

Kerala Karshaka Sangham, affiliated to the AIKS in Kerala had recently organised a siege of MRF and Apollo factories against the tyre cartel. The Kerala Karshaka Sangham-led Samyukta Karshaka Samithi, a joint forum of 11 farmers’ organisations is leading the anti-cartel struggle. One of the major demands of the struggle is to ensure that the Rs. 1788 crores fine imposed by CCI on the five tyre monopolies should be used to benefit the rubber farmers. AIKS warns the tyre cartel and the subservient ruling class parties that a powerful movement of the farmers will expose the corporate-communal nexus in the rubber sector. AIKS also salutes the LDF government in Kerala for constituting an Expert Committee to inquire about cartelisation and price formation. AIKS will exhaust all options to expose the tyre cartel and their unholy nexus.