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LATEST NEWS UPDATES | The Remedy to the Agricultural Crisis That No One Is Talking About -Prem Shankar Jha

The Remedy to the Agricultural Crisis That No One Is Talking About -Prem Shankar Jha

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published Published on Dec 20, 2020   modified Modified on Dec 23, 2020

-TheWire.in

If Modi wants to pull India out of the ‘Cereals Trap’, the path lies through the creation of infrastructure for agriculture.

Five weeks after the Farmers agitation began, and a day after the Supreme Court urged the government to put the three farm bills passed in September on hold, Prime Minister Modi has finally agreed to hold talks with their leaders.

But what will he hold talks about when neither he, nor anyone else in his government, has shown any understanding of what has driven the entire community of farmers from North India to the edge of despair?

Their ignorance is writ large on his party propagandists’ attempts to ascribe political, even traitorous, motives to the farm leaders. That is the reaction of schoolyard bullies who, when they find themselves losing an argument, start hitting their opponents.

Now that Modi has decided to talk to the farmers himself, he would do well to understand the predicament that has driven them to desperation. In a nutshell, it is this: India is now a chronically food surplus economy. So while opening up the foodgrains trade to traders from all over the country will benefit rich farmers – who have the maximum bargaining power and can contact, or be contacted by, buyers in other states and countries most easily – the entire price shock of the foodgrains surplus will be felt by the small landholders who make up four-fifths of the farming community.

The government’s recent decision not to abolish the Minimum Sale Price system will cushion this shock, but no one knows to what extent it will do so if the thriving mandis of Punjab, Haryana, Western UP and northern Rajasthan lose the bulk of their business to private buyers and start closing down.

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TheWire.in, 20 December, 2020, https://thewire.in/agriculture/modi-farmers-protest-agriculture-infrastructure


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