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Syndicates Administration and People

The crackdown on Assam’s Syndicates

Fish traders calling for an enquiry into the syndicatesThe problems of Assam, arguably, are numerous and varied. Of them, some old social and political issues that have always concerned the people of the State are certainly tangled but are not too complex to deal with. If the State Government is a little more serious and sincere and goes ahead with a right approach and well – considered policy towards these pressing problems, there is no valid reason why they cannot be solved. However, it will continue to play a by standeras the ruling establishment is known to be wont to, until it faces severe criticism for not addressing the problem or a popular outcry leads to social unrest. This so called ‘go – slow – approach’ on the State Government’s part seems to have done more harm than good to the people in the State in terms of peace during the past few years in introspect. The problems affecting the lives of the people which were initially less complicated have turned more intractable with vested interests presuming on the State’s inactivity.

In most States, the prices of essential commodities such as vegetables, fish, eggs and meat increase normally. However, in Assam, the prices of these articles of daily consumption surprisingly remain high almost all year long. During the rainy season every year, there is good production of vegetables in the State. So, the price of these vegetables in the local markets at such times should be relatively less; however, such is not the case. Now, the question arises – what is the reason for an abnormal hike in prices of not only vegetables but also the prices of other eatable items during the last few years?

The answer lies in the involvement and influence of the members of syndicates in the local markets. It is the inaction or laxity on the part of the administration in initiating punitive action against the syndicate system that has actually encouraged the members of these syndicates in controlling food production, fixing and foisting exorbitant prices on items of daily use which the people of the state need thus translating into easy earnings for these members.

The recent police crackdown on the syndicates at the behest of the Chief Minister Tarun Gogoi laid bare the fact that the members of these syndicates in fact regulate the prices of the important household items in the local markets. This was even more pronounced when the prices of fish, eggs, meat and vegetables had come down quite significantly immediately after the arrest of three members of the syndicates. A few days after this much talked about crackdown, the Chief Minister of Assam Tarun Gogoi said that it is essential to put an end to the syndicate system as it has led to criminalization in Assam even as he informed that the prices of some food items had come down.

There can be no doubt that other syndicates against whom punitive action is yet to be taken may carry on with their nefarious activities as usual with full vigour if there is a delay on a crackdown on them.

It is true that the prices of some items of daily consumption were relatively low for the first few days at Guwahati’s open markets following the arrest of three kingpins of the syndicates. However, now, the situation is similar to the one that prevailed before the police crackdown with eggs, fish and potatoes being sold at higher prices than before. This is a clear indication that the three arrested people were not the only ones involved and that they are only in the lower echelons of the syndicates. This also shows that they had acted as mere agents of their superiors and had no authority to control the sale and price. The real authority to do so lies with all those in the syndicates who work while remaining in the shadows. The people of Assam are happy with the arrest of the three people but are now for action against some ministers, dissident MLAs, police officers and bureaucrats who have benefitted from these syndicates as they know full well that the fall in prices is but a temporary respite. As the situation moves back to square one just a few days after the crackdown, it was hoped that the members of the leading civil society groups in the State would by this time spearhead a strong resistance movement against the abnormal price hike in the local markets. However, as of now, no plans towards such action on the part of the civil society groups have been heard of.

It also needs mention here that the illegal syndicate system is still existent at the Srirampur check gate along the Assam – West Bengal border and gates between Goalpara and Jogighpa where every coal laden truck has to pay what is termed as ‘gunda tax’. The syndicates foist on each of them for entering Assam as a result of which the price of each item of day to day consumption reach the local markets at much higher rates than those seen in other places such as Siliguri. There was a conviction that a similar police crackdown on the syndicates at the check gates would ensue soon after the arrest of the three people mentioned earlier in this article. However, this is not the case and things are carrying on as they were.

The people are concerned by the fact that the syndicate system in Assam has been continuing over the years. Political observers are of the view that unless this mechanism is abolished, the prices of household items of daily use will continue to be abnormal in the local markets even in the event of their production being more than the demand in a given year as the syndicates will get the consumers to pay far more money which will go towards further filling of their private coffers.

To an inquisitive mind, the question that may arise is – how do these local syndicates carry on with their illegal activities and earn money without facing any resistance? The obvious reason for them getting away with this is their political connections and their securing tacit support from the administration. If the recent media reports are anything to go by, there have been some ministers, politicians, legislators and police officers who are directly or indirectly involved in the activities of the syndicates. Indeed, it is true that if the recent crackdown on the syndicate members has taken place after such a long time, it is presumably because of the alleged connection of several of the Congress dissident legislators with the local syndicates.

Three traders related to the Pan Syndicate who were arrested Syndicates such as the types we see in Assam also exist in Japan. The Yakuza which is also known as Gokudo are members of the traditional organized crime syndicates which exist illegally in the country. A network of 22 gangs which are divided into factions essentially vie for wealth and clout. It may be noted that their traditional source of income has been prostitution, extortion, gambling and drug smuggling. In recent times, they have also become involved in shady real estate and business dealings. However, during the last few years, their menace has been lessened considerably following the step up of crackdowns by the Japanese police and their exclusion from their communities. This punitive measure has made it very difficult for them to carry out their illegal activities and raise funds. As a result of this, the number of members and associates of crime syndicates in Japan came down to 70,300 in the end of December 2011 as against the total of 84,200 members in the country in 2007. Their numbers have further shrunk in 2012 as last year, the Japanese Police arrested as many as 26,272 of them.

Back home in Assam, the illegal activities of the syndicates have not come to a total stop as some items such as eggs and fruits are still being sold at high prices. This suggests that there is a need for the administration to step up its crackdowns on all the syndicates, be it of coal, eggs, fruits or even real estate operating in the State. There can be no doubt that other syndicates against whom punitive action is yet to be taken may carry on with their nefarious activities as usual with full vigour if there is a delay on a crackdown on them as is evident from the collection of ‘protection tax’ from each truck along the Goalpara – Jogighopa National Highway.

Senior journalist D. N. Bezboruah, has given general definitions of the two terms, ‘Cartel’ and ‘Syndicate’. In his assessment he has tried to convey the true meaning of these two terms as:

‘A cartel is a combination of producers of any product joined together to control its production, sale and price so as to obtain a monopoly and restrict competition in any particular industry or commodity. Cartels exist primarily in Europe, being illegal in the United States under anti-trusts laws. A cartel is also an association by agreement of companies or sections of companies having common interests and designed to prevent extreme or unfair competition and allocate markets, and to promote the interchange of knowledge resulting from scientific and technical research, exchange of patent rights and the standardization of products. Although illegal in the United States, foreign cartels influence prices within the US on imported and smuggled goods that they control. The US administration has had to sue the De Beers diamond cartel several times. The word cartel is the French form of the German word Kartell (card). In German Kartell is also the word used to describe the communication which passes between generals in time of war when enemies arrange a temporary truce.’

‘The syndicate is a full-fledged cartel. It is important to understand the mechanism by which a voluntary organization of this kind is held together. In most cases, the organization is an iron-clad compact in which each contracting party agrees to submit, without conditional, to all rules and measures adopted by the syndicate, or in default to be fined for disobedience.’

The syndicates are a recurring problem for the people of the State and as such, the administration needs to keep a constant eye on such activities and bring the members of these syndicates to heel if and when they are caught running business illegally. In the absence of stringent measures, it will be no surprise when this menace raises its ugly head again in the near future.

EP Desk