Farm laws and the stalemate!

Dr Sudershan Kumar
Time and again, the nations around the globe invest and work effortlessly to accomplish and facilitate the modernization of their agriculture sector in order to meet up to the ever increasing new millennium challenges. Many such reforms encompassing provision of hybrid high yield seeds, ultra modern techniques for cultivation, production, storage and innovative ways of trading are important endeavours to ensure that farmers get proper income from their agriculture produce. These reforms assume even more significance for an agricultural dominant country like India. The farmers in many countries are dispensing with age old methods of farming and trading. They are embracing new technologies for production and adopting a global approach for trading. On the pretext of this global paradigm shift happening, India too can not lag behind. Therefore, Government of India is also adopting various technologies for enhancing production in agriculture sector and devising a revised approach for trading at national and international level. As a first step in this direction, to enhance/ double the income, three farms laws have been enacted for the benefits of the farmers.
If one is to believe the Government’s perspective, these laws are really beneficial for the farmers. Even the chief economist of the International Monitory Fund (IMF) has endorsed and supported these laws. As per her statement “the farm bills and labour bills are an important step in the right direction. “In spite of this, the farmers’ unions have dubbed them as anti farmers and corporate friendly. They are holding protests, demonstration and sitting on dharna at four or five places at Delhi border.The eleven rounds of discussion between the representatives of protesting farmers and the Government has ended into a stalemate. The Government on other hand is even willing to with hold these laws for a period between 12 to 18 months and has also agreed upon for discussion on all the contentious clauses of these laws, but the farmers’ unions are adamant for the complete withdrawal thus maintaining a deadlock. Moreover, unfortunately various sections of political leaders for the sake of cheap popularity and vote bank politics have plunged into this thus proving right the proverb of “Make Hay When the Sun Shines”. Under the disguise of supporting their agitation, they are actually indulging into miss information campaign to malign Government’s image at the international arena. As per reports, some anti national elements have also sneaked into farmers agitation and spitting venom against the Government. The violent incidents at Red Fort and other places during tractor rally especially on 26th January after Republic Day celebration has certainly brought shame to nation’s pride and needs to be condemned. Therefore the question arises; What are these farm laws? Why they are essential?Also a way out to address farmers concerns. Working on their agenda to make India a super power in all areas, major agriculture reforms with a mission to empower farmers, the government at the centre enacted three farm laws during the monsoon session of Parliament. The first law is basically aimed at augmenting the farmers’ produce, trade and commerce (Promotion and Facilitation Act, 2020) where as the second law pertains to regulating and streamlining the farmers’ (Empowerment and protection) price assurance and service Act 2020. Third law is an amendment in Essential Commodity Act,2020.
These laws are essential because of the following reasons. Firstly as per the reports available by the year 2049 the world population will be around 9.6 billion.India’s population will touch nearly 1.76 billion.It will surpass China by the year 2027. Indian economy is also projected second/ third largest in world.Moreover the land mass will remain the same. Agriculture base will contract. Even now only one third agriculture land is on proper irrigation facilities the remaining two third is dependent on monsoon and other weather conditions. It is predicted that the climate change will adversely affect the seasonal crops.Hence feeding 1.76 billion people will certainly be an uphill daunting task for any Government in power at centre. So there is a dire need to provide ultra modern technology to small, marginal and big farmers.This is possible only by allowing the participation of private players in agriculture sector. Second, agriculture in India is broadly classified into two categories.One the cultivation and production and second is trading.More over in the country nearly 70 to 80 percent are the small farmers only 20 percent or less are having big farms.Even for buying high yield seeds required for cultivation, these small farmers have to go to money lenders for loan at exorbitantly high interest rates. Occasionally, their crops face weather harshness destroying their produce. So their agriculture produce is very low. They are unable to repay the loans. Thus they fall into the debittrap. They then succumbing to pressure resort to the extreme step of committing suicide. Similarly the other issue which is important for their agriculture produce is trading. At present the supply chain is from production to middle men in the near by Mandis,and then to retailers for selling into the markets.It is often observed that with the present unjustified hierarchy system, farmers only get nearly 20 to 30 percent of the retail price on which agriculture products are sold in the market. This is in contrast to other countries’ where the farmers get nearly 70 to 80 percent from their agriculture produce. Hence trading needs critical analysis for maximum benefits to farmers. As is a well acquainted fact, that the 21st century will see that the technology and innovation will rule the world.In this era of science the agriculture sector cannot be ignored. It is also true that those who adopt to changing environment will always flourish where as those who do not change will perish.Therefore infusion of technology in agriculture sector is absolutely essential. Countries around the globe are already working towards that direction. South African Country like Brazil after incorporating reforms in agriculture sector has enhanced its production manifold. In certain items it has surpassed United state of America, whereas its agriculture land mass is half as compared to United States.Therefore infusing technology in agriculture sector and multifaceted trading is inescapable and also the only answer for changing the socioeconomic conditions of rural India.Therefore enaction of these three farms laws is the first step towards that direction. However, it seems that neither the farmers nor the middlemen and other stake holders were prepared for such a major transformation. Thus resulting into this stalemate and trust deficit. Therefore it is the duty of all stake holders to rise to the occasion and explain to the rural Indian society about the benefits and boon of agriculture reforms.It is also the responsibility of Government to walk extra mile to accommodate farmers’ concerns. This apprehensions on the farmers’ side could be – first and foremost, the psychological fear among the farmers about the continuation of minimum support price (MSP). They have an apprehension that in the long run private sector may buy their agriculture produce at throw away price using one pretext or another. Therefore there should be hand holding and legal protection for that.Second, small and medium farmers have the apprehension that in the long run private players may grab their land.To address this issue the Government must bring out another law to protect and safe guard farmers’ interest during contract farming.Thirdly the concept of trading in mandis should be transparent .Concept of multifaceted trading to be promoted with scaled Arithya’s interest.
In fact Government should form a panel of experts to work out trading model based on studies pursued in various European countries. Fourthly and the most important step which needs to be done is that, a joint working group between Government and representatives be formed to scrutinize every clause of these laws. So that apprehensions of farmers are adequately addressed. Mean while to have win win situation they can be asked to shift dharna locations some where in Delhi. Lastly, the author as a responsible citizen and an honest tax payer attempts to ask a question to the so called “Champions”and supporters of farmers agitation that in the present scientific era when technology is overpowering in each and every sphere, what alternate solution they have in mind to bring transformation into the agriculture sector rather than inciting the farmers.
(The author is former Director General & Special Secretary DRDO, MoD GoI)
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