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LATEST NEWS UPDATES | What procurement data tells us about India’s farm law opposition -Arjun Srinivas & howindialives.com

What procurement data tells us about India’s farm law opposition -Arjun Srinivas & howindialives.com

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published Published on Jul 7, 2021   modified Modified on Jul 7, 2021

-Livemint.com

Amid a bumper wheat crop, India’s farmers sold more wheat to the government than ever before. Government procurement has only grown in recent years, making farmers wary of any attempt to dial back the role of the state in the farm sector

This rabi marketing season has seen the highest procurement of wheat by government agencies in history. At 43 million tonnes, this is 33% higher than the average for the past five rabi seasons. It underscores the prime role played by the government in procurement of farm produce. This becomes important in the context of the three farm laws that were introduced last year but whose implementation was put on hold amid ongoing farmer unrest.

These new laws seek to offer farmers more avenues to sell their produce beyond those designated by the government. The concern is it could mean the government, which offers a price guarantee for 23 main crops, reduces its presence as a buyer. Further, without a price floor coded into law, private players with greater pricing power could end up dictating terms to farmers.

A price floor was a key demand of the ongoing farmer agitation, which started in mid-November 2020, almost coinciding with the start of the rabi sowing season. The protests, while national in scope, are spearheaded by farmer collectives from Punjab and Haryana. These are agrarian states where farmers have historically benefited the most from government procurement.

The rabi sowing season in 2020 was sandwiched between two deadly waves of the covid-19 pandemic. Agriculture being less affected by the pandemic, and two successive years of good monsoons, drove the record sowing of wheat: 34.6 million hectares, or 14% more than the average of the previous five years. Seven of the top eight wheat-producing states, led by Madhya Pradesh, sowed more land for wheat. This led to India recording its highest-ever wheat produce in a full season.

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Livemint.com, 7 July, 2021, https://www.livemint.com/industry/agriculture/what-procurement-data-tells-us-about-india-s-farm-law-opposition-11625635435927.html


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