Liberating Indian Farmers

They have always had our sympathy. Now they need something else – choice

- Chetan Bhagat

The recent farm bills passed in Parliament caused a fair amount of uproar. The bills are radical in nature indeed. They aim to reform the current system where Indian farmers have to sell their produce at local markets, with minimum support prices (MSPs) decided by the government. Now, farmers can sell to and enter into contracts with private players.

Some may consider the existing MSP system as forcing farmers to sell to a monopoly. Others may consider the MSP system a safety net, where the farmer is at least assured of a minimum price. This is why the new bills have led to polarised reactions.

The new bills allow farmers to choose between several buyers and sell across regions. In other words, it liberalizes the agricultural markets, historically heavily controlled by the state.

India has huge potential as a major agricultural powerhouse in the world. Supermarkets in major world cities stock milk, cheese, butter, vegetables, and poultry from far-flung nations. Thailand and Australia for instance, supply a lot of agricultural products around the world. India doesn’t.

Peanut butter is almost a staple in the West. Many parts of India grow massive quantities of peanuts. We don’t however, export peanut butter-like other countries. We don’t allow our farmers to do business like that. The Indian urban middle class wants low food prices. Hence farmers enjoy sympathy but not a free market. The government remains heavily involved. It ensures the Indian farmer survives but never thrives.