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LATEST NEWS UPDATES | What made Centre change its approach from incentivising states to forcing down reforms? -Harish Damodaran

What made Centre change its approach from incentivising states to forcing down reforms? -Harish Damodaran

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published Published on Dec 29, 2020   modified Modified on Dec 29, 2020

-The Indian Express

The Centre is within its rights to enact laws promoting barrier-free trade of farm produce (inter- as well as intra-state) and also dismantling stockholding restrictions. But that can be only after the farmer has sold.

In November 2019, the Fifteenth Finance Commission submitted its interim report, wherein it proposed special “performance based incentives” to states that carried out agriculture sector reforms.

These reforms specifically pertained to their enacting and implementing all features of the Union Agriculture Ministry’s Model Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017 and Model Agricultural Produce and Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018.

“We recommend that State Governments take preparatory action by securing the passage of these Bills in their respective legislatures in 2020-21 to become eligible to avail the grants awarded by us from 2021-22 onwards,” stated the report.

On February 1, Finance Minister Nirmala Sitharaman, in her Union Budget for 2020-21 speech, said that the Centre would “encourage those state governments who undertake implementation” of its model farm reform laws.

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The Indian Express, 29 December, 2020, https://indianexpress.com/article/opinion/columns/farmers-protest-bjp-reliance-amazon-adani-7123822/


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