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LATEST NEWS UPDATES | Reforms should make farming sustainable -Devinder Sharma

Reforms should make farming sustainable -Devinder Sharma

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published Published on Jan 13, 2022   modified Modified on Jan 14, 2022

-The Tribune

In India, there is a concerted campaign to discredit the arhtiya, building the case for bringing in agri-business companies. There is certainly a need to regulate the middlemen, but the American experience shows how the consolidation of the meat industry, leading to market concentration in the hands of a few companies, is making it difficult for livestock farmers to survive.

WHILE Indian policy makers and economists haven’t drawn any lessons from the failure of market reforms in American agriculture, and even after the three contentious farm laws were repealed, they still reiterate that supply-demand equilibrium leads to price discovery. Market dynamics has once again failed American farmers from making a decent living.

This time, it is the turn of the livestock farmers.

Even the US President Joe Biden acknowledges the fiasco. In a statement, he said: “Fifty years ago, ranchers got 60 cents of every dollar families spent on beef. Today, they get about 39 cents. Fifty years ago, hog farmers got 48 to 50 cents for each dollar the consumer spent. Today, it is about 19 cents. And the big companies are making massive profits.” This is happening at a time when the US Department of Agriculture (USDA) estimates the beef prices to have shot up by 21 per cent, prices of pork increasing by 17 per cent and chicken prices by 8 per cent over the year.

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The Tribune, 13 January, 2022, https://www.tribuneindia.com/news/comment/reforms-should-make-farming-sustainable-360722


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