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LATEST NEWS UPDATES | Govt needs to encourage more remunerative cropping patterns, while addressing farmer anxieties -Amitabh Kundu and Harbir Singh Sidhu

Govt needs to encourage more remunerative cropping patterns, while addressing farmer anxieties -Amitabh Kundu and Harbir Singh Sidhu

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published Published on Dec 9, 2020   modified Modified on Dec 9, 2020

-The Indian Express

Centre must make transparent efforts to push exports consistently and not follow the stop-go policy emanating from price controls for the Indian consumer market.

The flashpoint between the agitating farmers and the central government is essentially rooted in the mismatch between the supply and demand for the wheat crop in India. The genesis of the current state of affairs stems from policies initiated over half a century ago when India was critically short in foodgrains and had to rely upon imports under PL-480 as aid from the US.

India set up a massive Public Distribution System (PDS) for supplying wheat (and later rice) to the urban consumers (and other vulnerable sections of the population in rural areas, at a later stage) by issuing ration cards that entitled them to a fixed quantum at controlled prices. To feed the PDS, potential surplus producing states (notably, Punjab and Haryana) were cordoned off from the rest of the country under a quasi monopolistic buying by the central government through the Food Corporation of India (FCI) at a farmer remunerative price, labelled as the minimum support price (MSP). Concurrently, high yielding varieties of seeds were produced and popularised by the state agencies along with pushing the use of tube wells and fertilisers with subsidies for electricity and some fertilisers.

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The Indian Express, 9 December, 2020, https://indianexpress.com/article/opinion/columns/fields-of-the-future-7097184/


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