SOWING SEEDS OF GROWTH

THE FARMERS’ PROTESTS DISGUISE A DEEPER PROBLEM. REFORMS ARE ESSENTIAL FOR THE SECTOR TO PROSPER

- ANILESH S. MAHAJAN

In recent months, India’s agriculture sector has remained in the national headlines, not least because of the continuing protests by farmers on the borders of the national capital. With the violence on Republic Day, these protests made it even to the international headlines. The farmers, predominantly from Punjab and some districts in Haryana and Uttar Pradesh, have made it clear that their sole demand is the repealing of the Centre’s three farm laws. Digging a little deeper, the fear revealed is that the government is intent on liberalising the agricultural sector—developing a capitalist market mechanism with priorities other than assured crop procurement and buffer stocks.

In September last year, with much political drama and even allies resigning in protest, the Centre cleared three pieces of farm legislation—the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, the Farmers’ (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 and an amendment to the Essential Commodities Act. The government’s position remains that these laws open up agricultural markets, provide a legal framework for contracts between farmers and private buyers and a better framework for electronic trading. They also ease restrictions on the stocking of foodstuffs like cereals, pulses, potatoes, onions, edible oilseeds and oil.