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LATEST NEWS UPDATES | It’s not just about the farmer -Abhijit Sen

It’s not just about the farmer -Abhijit Sen

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published Published on Sep 24, 2020   modified Modified on Nov 2, 2020

-The Tribune

For Punjab and Haryana, it is also about the fiscal relationship with the Centre

The situation following the enactment of the three ordinances passed by the Centre has created a political problem as well as somewhat of a dilemma for many economists. There is the fairly common assumption by many economists that free functioning of markets is a more efficient way of letting prices and choices function than relying too heavily on the government. Other economists, however, have always pointed out that whatever the merits of the markets, when these fail, the government intervention is not only desirable but also often necessary. In the present situation, the debate is around three issues: the first, the application of the Essential Commodities Act; the second, the functioning and reach of the APMC; and the third, the functioning of contract farming.

These issues are not new, and nor are the debates. Since about 2000, the Centre has been trying to put in place reforms which would do whatever is necessary to have more orderly agricultural markets, and this is a process which has continued irrespective of the parties in power. While clubbing the teeth of the Essential Commodities Act, reforming APMCs and encouraging contract farming have been the objectives, with the Central governments bringing out model enactments at various points and holding discussions with the states, there has been very limited progress on the ground.

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The Tribune, 24 September, 2020, https://www.tribuneindia.com/news/comment/its-not-just-about-the-farmer-145660


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