'Fashionable' to Say Farm Laws Will Help Corporates. But How Many Have Come Forward, Shown Interest?

India is growing as an economy and agriculture is still the single-largest sector contributing to the GDP. If any steps are taken in order to strengthen the economy post the pandemic, agriculture has to be the top priority.

The three farm bills introduced by the government will strengthen the agriculture sector and benefit the farmers.

If we talk about the first bill, it promotes the idea of one nation, one market. Currently, if the farmers are able to sell their produce already at an APMC, they still have that option. Also, the new bill gives them the option that if they find a better price for their product, anywhere else in the country, they can go and sell it. The government is giving farmers more choice.

Secondly, we talk about contract farming and let me give you an example. Let’s say a particular state is in abundance and there’s demand and they’re suppliers. And after a certain point of time, the demand dries down and still the suppliers are there. Then the farmers naturally sell at a lower price because the demand is saturated and the supply is still there. With the first bill he just gets an empowerment. So one nation, one market is simply that concept.

Now, if we come to the second bill, if a farmer is able to get a deal, enter into a contractual arrangement, he’ll fix the price of the sale before he produces. Now, this helps the farmer in knowing what he’s about to get from his produce. And once he’s entered into a contractual obligation with anyone, be it the wholesaler or retailer, any corporate, he knows that this summer, this is the amount that he’s able to get. And for that, and for the purpose of production, if he wants to get some finance, he’s able to keep because he has an affordance, even a bank lending. So, this also has the farmers to get away from the vicious circle of taking money from moneylenders.

A law also does not facilitate the growth of any cold storage facilities in this country. If such restrictions are removed, then naturally there’ll be a better pricing.

I know it’s very fashionable to say that the laws will help corporates. Incidentally, none of them have come forward and said that we are interested in agriculture. I’ve never actually heard any plans or announcements.

If any privatization comes in any sector, it leads to better capital investment, which leads to monetization. Currently, we have grave amount of irrigation problems in our country. Most of the states, any private investment coming into agriculture sector will definitely help in addressing those issues. It will provide the farmer with better techniques with better knowledge, better mechanisms, education facilities.

That government is actually trying to privatize your national carrier, Air India. So then privatization is taking place in all the sectors, just for the benefit of it. Then why not agriculture, if it is ultimately benefiting the farmer.

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