iews of Indian Economists
on Agricultural Reforms :-
1.
All the wrong turns by Shri TCA Ranganthan &
Shri TCA Srinivasan Raghavan 2. India
Unlimited : reclaiming the lost gloy by Shri Arvind Panagriya
3. In
Service of the Republic by Shri Vijay Kelkar and Shri Ajay Shah
The authors discuss how alternative model acts
for agricultural reforms have been considered since 2003 to give boost to
agricultural sector. These reforms suggestions included :- ·
establishment of open markets ·
allowing private players ·
direct marketing ·
contract farming ·
establishment of more purchase centers ·
establishment of electronic trading ·
allowing future’s trading ·
removal of minimum selling price (MSP) MSP In the Indian experience, despite India being
the largest subsidy giver to its farmers, MSP system has failed to address the
agrarian distress. The authors point out how hidden, un - explored causes such
as need for proper irrigation system, clean water, bank credits, agricultural
financing, fertilisers, lack of modern machinery and good quality seeds etc are
contributory factors. India surpasses the support given by govts as
compared to other countries too many farmer subsidies goes against WTO rules
which in - turn affects expert quantity. If exports are less then the profits by farmers
are also less. The authors concur on exaggerated media
attention to isolated farmer suffering due to Overly critical nature towards
govt policies. The authors explain that despite having so many
farmer subsidies, pro - farmer policies, employment schemes like MNREGA still
theres’ distress in the agricultural sector. It is noteworthy that since 1947
are production, yield has increased manifolds so has our population. One of the
main causes of distress is breaking of land holdings into smaller factions
generation after generation. The authors emphasize that instead of giving
importance to MSP, Public distribution system should be strengthened
and FCI should gear up to meet competition from private players. The
authors concur that monopoly of middlemen should be diluted by states by
amending APMC acts. So that the actual profit trickles down to the farmers. It
is critical to understand that all 5 great Economists of India (authors
mentioned above) discourage state control of pricing through MSP as it attracts
heavy import duties by other countries. Thereby, reducing overall profit which
could have come from exports.
It seems that all 5 authors concur that ever
since Independence we have faltered by following a socialist vintage of MSP
and banning future trades in the fear of hoarding. Infact it seems that hoarding
was never a problem, the real problem was govts's inability to make timely
procurement, wastage of food production in godowns, perishing of
food products on transport to long distances. The 5 authors
advise removal of MSP and encouragement of future trades. The authors very
simply explain how having an MSP disturbs the equilibrium of SUPPLY &
DEMAND which further causes agrarian distress. The authors have strongly
discouraged interference and zeal of policymakers to interfere in simple
economics of pricing in a bid to secure interest of farmers. [I am unaware of the personal political biases
or ideology of the 5 economist authors of the above- mentioned treatise on
Indian Economics. As per my understanding they seem to be from across political
spectrum.] The 3 Farming laws passed by Parliament of India
incorporate the economic reforms suggested by the above noted 5 economists and are discussed as below :- 1.
Farmers’ produce trade and
commerce ( promotion & facilitation) Act 2020 Gives the power to every farmer, trader to move freely in the
country to sell his product to anybody. The act empowers every farmer in the
country to sell their product to whomsoever and wheresoever and howsoever. Most
importantly it facilitates sale and purchase through E- Commerce (which further
means boost in Exports and income reaching in directly in accounts of the
farmers). The best thing I like about this act is that it does away
with levy of any market cess, fee which was earlier imposed on the farmers. The
trading can be done through online or in
any physical trading area. Therefore, the act endorses the principle
of removing touts, middlemen etc and if anybody is found misusing
e-commerce sites by levying fee or cess on use of market place then they can be
fined upto Rs 50,000/- to 10,00,000/-. 2.
Farmers Empowerment and
Protection Agreement on Price Assurance and farm services Act 2020 This act encourages the farmers to enter into farming contracts
with sponsors ( investors) and decide their own terms and conditions. This Act
provides freedom to farmers to choose their own product type, decide its value
and sell it to whomsoever they deem fit. The act provides cushioning to farmers
by protecting their rights and increasing the liability of sponsors by putting
the onus on sponsors to arrange for delivery mode and on time acceptance of delivery.
Every farming agreement will have a GUARANTEED PRICE to be paid
for such produce in addition to any other price/ premium mutually decided. The
act also protects the land holdings of the farmer by having a stipulation that
no agreement whatsoever can take away the farmers’ ownership of land if the farmer
incurs any losses as agreed in the contract. The sponsors cannot raise any
permanent structures on farmers’ land.
Both the Acts provide dispute redressal through Conciliation Board
failing which SDM exclusively will have jurisdiction to decide the same. The
decision should be passed within 30 days. Appellate authority though not
specified in the Act but will lie with Finance Commissioner or a duly
designated authority for the same as per my understanding. Needless to say all state govts have power to
make rules and amend them as per the requirement.
3.
Essential commodities
amendment Act, 2020 The legislature in their wisdom have held that the prices of
essential commodities like cereals, pulses, potato, onions, oils can only be
regulated under extra – ordinary circumstances such as war, famine, natural
calamity or imposing stock limit on extra ordinary price rise [( 50 % hike in
retail price of non perishable agricultural food stuff which is
not applicable on value chain participant (value addition participant)]
CONCLUSION Based on the reading of books on agricultural reforms by
recognized economists of our country and reading of the Farming Acts 2020, I
fully endorse it. Gauri Neo Rampal Advocate on Record Supreme Court of India
Advocategnr2011@gmail.com
Below are my 3 videos on the abovementioned points.
|
Below are my 3 videos on the abovementioned
points.
Original write up
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