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LATEST NEWS UPDATES | Reform for farmers needs to look at more than mere efficiency of agriculture markets -Nikhit Kumar Agrawal and Richa Kumar

Reform for farmers needs to look at more than mere efficiency of agriculture markets -Nikhit Kumar Agrawal and Richa Kumar

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published Published on Jan 5, 2021   modified Modified on Jan 5, 2021

-The Indian Express

Considering the critical importance of agriculture for livelihoods, health, food security, and also keeping in mind the vulnerability of Indian farmers, it is necessary to go beyond reductionist expediency in considering agricultural reforms.

In his speech on December 25, Prime Minister Narendra Modi said that the three controversial farm laws will finally deliver justice to the vast majority of small farmers who have been ignored by successive governments. As farmers continue their protest in the chilling Delhi winter, we contend that the agriculture marketing system in the country needs a serious overhaul. But an exercise that would ensure social and economic justice to more than 85 per cent of small and marginal farmers in the country has to be grounded in an array of factors related to ecology, nutrition, equity, culture, economics and politics, along with the consideration of efficiency of agriculture markets. The three farm acts have dismally failed to look at these interconnected dimensions, because of which, a number of questions remain unanswered.

First, while it is essential to provide competitive markets for farmers to sell, why did the Centre assume that bypassing the regulated mandis is the best solution? If the problem is the licence raj and oligopolistic structure of some mandis, why not change licencing requirements and have more buyers (small and large traders, companies, start-ups, cooperatives, FCI, etc) participating in the auction in the same mandi? The original purpose of the mandi system was to promote a regulated and competitive auction system whereby multiple bidders would publicly call out bids for farmers’ produce. The entry of corporates in direct competition with traders would strengthen this competitive purchase environment. Improving the infrastructure and developing the 23,000 periodic rural haats as well as smaller mandis would bring this institutional market closer to small and marginal farmers.

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The Indian Express, 5 January, 2021, https://indianexpress.com/article/opinion/columns/farm-laws-controversy-narendra-modi-farmers-protest-7132953/


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