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LATEST NEWS UPDATES | Three Farm Bills and India’s Rural Economy -Vijay Jawandhiya and Ajay Dandekar

Three Farm Bills and India’s Rural Economy -Vijay Jawandhiya and Ajay Dandekar

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published Published on Oct 1, 2020   modified Modified on Oct 2, 2020

-TheWire.in

With low levels of farmers' income and a lack of assured price mechanism, what impact will the three farm bills have in the long term on India's agrarian economy. Here's an analysis.

Last week, the Union government passed three bills to replace the three ordinances that were enacted during the COVID-19 lockdown. These three bills, expected to bring revolutionary changes to agrarian context and help double farmers’ incomes are: The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020; The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 and The Essential Commodities (Amendment) Bill, 2020.

Taken together, according to the prime minister, these bills are expected to usher in a revolutionary change in the arena of Indian agriculture and would go in some way, perhaps a long way, in doubling the incomes of the farmers. We need to understand these legislations and their long-term impact on the agrarian structure against the expectation outlined by the government to see to what extent this policy prescription will go in doubling of farmers’ incomes and what kind of revolution will now be on the anvil.

As per census 2011, 96 million cultivators enumerated farming as their main occupation, down from 103 million in 2001 and 110 million in 1991. Still 46% of the workforce is working full-time in farmlands. The size of the operational holdings for small and marginal farmers has shrunk from 1.15 hectares in 2010-11 to 1.08 hectares in 2015-16, according to provisional estimates of the 10th agriculture census 2015-16, and small and marginal holdings constitute almost 90% of our total agricultural land holdings.

Another striking feature of India’s agriculture is the continuing trend of increase in the numbers of small holdings in the country. The first agricultural census done in the beginning of the 1970s reported that figure at 71 million. In the last five decades, those numbers have grown exponentially from 138 million in 2010-11 to 146 million in 2015-16, as per provisional estimates of agriculture census 2015-16.

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TheWire.in, 1 October, 2020, https://thewire.in/agriculture/farm-bills-indias-rural-issues


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