The Uttar Pradesh Chief Minister announced on 23 rd August, 2007, the reversal of her recently declared ‘Agriculture Infrastructure and Investment Policy’, giving the reason that 60% of farmers in the state opposed this policy reform.

Mayawati also ordered the temporary closure of Reliance Fresh retail stores in Lucknow and Varanasi, which were the target of agitation by traders the previous day. It is to be noted that private corporate monopolies have already made a big entry into retail trade in Noida and Ghaziabad. Reliance, Spencer, Vishal Mega Mart and Big Bazaar are among those poised to move into many more cities like Agra, Meerut, Lucknow, Kanpur, Allahabad and Varanasi in the next round.

The controversial reforms in agricultural marketing policy, announced by the UP government on 3 rd August, was aimed at opening up the contract farming route for the growth of big corporate agribusiness in the UP countryside (see Box). It is a reform that faces opposition from large sections of the peasantry as well as small traders. As explanation for her policy reversal on 23 rd August, Mayawati stated that permitting access for the private sector into wholesale trade of agricultural produce and contract farming has “angered” the farmers in the state.

The experience of countries world-wide clearly shows that allowing private corporations into agricultural trade and allowing contract farming will result in the complete domination of agriculture by the biggest capitalist monopolies. This can be seen clearly, for instance, not only in the US and Canada but also in the South American countries that have embraced such policy reforms in the name of liberalization. It has led to the wiping out of millions of small and medium scale agricultural producers. Such small and medium scale producers form the vast majority in our country today.

How can it be believed that Mayawati did not know, on 3 rd August, that liberalization of agricultural trade was being opposed by peasants in UP, but became aware of it by 23 rd August? It is being reported that she was informed by some 'intelligence' reports that 60% of farmers in the state opposed the policy reform. The truth probably lies somewhere else. The main development that has taken place between 3 rd and 23 rd August is the deepening of the crisis in the UPA government at the centre, indicating the possibility of Lok Sabha elections in the near future. This seems to have been the major factor prompting Mayawati to do an about turn.

What is to be noted is that it is an opportune time for the workers, peasants and small traders to join hands and step up their struggle against the drive of capitalist monopolies to dominate agricultural and retail trade in the country. The crisis within the ranks of the bourgeoisie offers an opportunity to press ahead and score important gains in the interests of the working people.