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LATEST NEWS UPDATES | Shock treatment will not work in agriculture -Sarthi Acharya and Santosh Mehrotra

Shock treatment will not work in agriculture -Sarthi Acharya and Santosh Mehrotra

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published Published on Jan 6, 2021   modified Modified on Jan 6, 2021

-The Hindu

Post-1991, changes in industry caused a second de-industrialisation; the results in agriculture are likely to be no different

Almost all sections of people including farmers agree that the Agricultural Produce Market Committee (APMC)-mandi policies for agricultural marketing, initiated in the 1960s for a few crops, have outlived their utility and the system needs a new policy in the face of the agricultural sector’s growth slowdown, the crop-composition not widening, and investments in land not happening.

Recently, the government of the day has opened up the output market with the aim to let market forces improve efficiency and create more value for farmers and the economy. These laws state that farmers are now free to sell all their products anywhere and to anyone beyond the physical premises of APMC markets. Additionally, the laws promote contract farming through establishing partnerships between farmers and food-processing companies, and also permit unlimited hoarding of food except in special circumstances.

What farmers want

Three main suggestions were put forth by farmers when we recently made enquiries with them: one, their produce prices should be the cost of production plus a reasonable mark-up; two, fluctuations in prices should be minimal; and three, there should be little or no interface with legal or administrative officials — they are not comfortable dealing with the “sahibs and the police”. All these farmer concerns have been ignored in the way the current laws are drafted. Additionally, as the old laws are being repealed, they said that there is a need for a wider view of the sector to include more crops. Thus, if the government encourages farmers to move from wheat to vegetables, markets for the latter should address all the above three aspects.

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The Hindu, 6 January, 2021, https://www.thehindu.com/opinion/op-ed/shock-treatment-will-not-work-in-agriculture/article33504265.ece?homepage=true


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