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LATEST NEWS UPDATES | Why should Indian agriculture be liberalised when in most countries governments subsidise it? -Christophe Jaffrelot and Hemal Thakker

Why should Indian agriculture be liberalised when in most countries governments subsidise it? -Christophe Jaffrelot and Hemal Thakker

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published Published on Dec 3, 2020   modified Modified on Dec 5, 2020

-The Indian Express

Without some support from the state, the smallest of Indian peasants would be even more vulnerable.

On September 27, President Ram Nath Kovind gave his assent to three contentious farm bills passed by Parliament — The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 (FAPAFS), the Farmers Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 (FPTC) and the Essential Commodities (Amendment) Act, 2020 (EC). These bills were passed by the Rajya Sabha with a voice vote in spite of the Opposition asking for a recorded division of the votes.

Essentially changing the rules around sale, storage and pricing of farm produce, the bills will permit private buyers to hoard essential commodities for future sales, which only government-authorised agents could do earlier, along with changing the rules for contract farming. The bills have been touted as a watershed moment for Indian agriculture by the Prime Minister, as the government claims that the reforms would remove the shackles from the agriculture sector and free farmers from the stranglehold of middlemen by creating one market. However, farmers’ unions and groups have concerns about two major issues: First, since the Minimum Support Price (MSP) is not mentioned in the bills, they fear that they will lose the assured option of selling to the APMC mandis and that this will lead to corporate exploitation. Second, they apprehend a process of corporatisation of agriculture in the absence of regulation, as agribusiness firms might well be able to dictate both the market conditions (including prices) and the terms of contract farming as small farmers do not have the same bargaining power.

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The Indian Express, 3 December, 2020, https://indianexpress.com/article/opinion/columns/farm-bills-protets-indian-agriculture-sector-7078237/?fbclid=IwAR2kDZI_BHrBX0lxFAiiqULNt3vYm3d5sOuCx_F1cO0xq9C0MNhct8-i9dc


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