Annadata Sukhi bhava
NewsBharati 10-Dec-2020 16:37:38 PM
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Why has my country been held ransom? Who gave them the right to block me, to stop me, to prevent me from earning my livelihood? The failed strategies of nationwide bandhs, blockades, gheraos as were planned for 8th December 2020 do more harm to the economy than helping it grow. The cabal has failed to understand that this is not a British Raj, which they must upsurge by putting breaks on the functioning of the government. These bandhs they are targeting, are against their very own country, run by their very own elected representatives. We are on the same side. Our aim is and should be common, that of development of the country and its people (all of us). The Farm Bills have once again, like the numerous reforms brought in by this majority government have faced unwarranted opposition and politically motivated obstructions.
In 1991, when the P V Narsimha Rao government introduced the New Economic Policy (NEP) by reducing import duties, allowing entry of private players in reserved sectors, the aim was to not put breaks to the growth of domestic industries but to bring in reforms by opening up of the economy by allowing private and foreign participation in the market. It rightly shifted the focus on the needs of the consumers. In 29 years since then, these reforms have helped the country grow by leaps and bounds. India has become the fastest growing trillion-dollar country and the fifth largest economy in terms of GDP. It opened new sectors of business (Indian IT industry is a classic example), job opportunities, increased competition. The NEP helped raise the economic status of the large middle-class population of the country.
The three farm bills viz:
- Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act
- Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act
- Essential Commodities Act
were passed in both houses of the parliament on 17th and 19th September 2020 and received President’s accent on 27th September 2020. These new laws are as revolutionary for the agriculture sector as the 1991 New Economic Policy reforms were for the industrial sector.
The major improvements that these farm bills intend to bring, namely:
1. Free trade of farmer’s harvest outside the boundaries of the APMC and Mandis. This will help give freedom of choice to farmers to sell their produce at a better price. It also allows online and electronic sale thereby promoting barrier free trade. This will be most beneficial for the small marginal farmers who own less than 2 acres of agricultural land and do not have the means to reach a bigger geographical area in search of better options. The market fee to be levied by state governments is prohibited there by reducing the cost to the farmers. An interesting fact, marginal farmers constitutes more than 85 percent of farmer community in our country.
2. Farmers can get into contracts with private agribusinesses prior to production or rearing of their farms for a upto 5 years or a mutually agreed period. This will help farmer’s get a predetermined price for their produce and not be dependent on the middlemen at their local mandi who manipulate the prices to their benefits. There is also a 3 level Dispute settlement mechanism introduced in the act. A Conciliation Board, Sub-Divisional Magistrate, and an Appellate Authority.
3. Certain commodities like onions, potatoes, pulses, edible oils, cereals etc. have been deregulated from the Essential Commodities Act. This will do away with the government regulation on the supply and prices of these commodities. With this amendment, the government will not be able to impose sudden stock limits and block exports of certain commodities. Onions have time and again been in news for such sudden restrictions in exports. This will help bring private sector investment in the supply chain of these commodities.
4. Setting up of Gramin Haats (Gramin Agriculture Markets) to bring in easy accessibility, transparency, and well-organized marketing platforms for small farmers. The aim is to set up 22,000 Gramin Haats across the country funded by a central scheme and ensure that a Haat is set up in each Panchayat throughout the country.
These major amendments will help farmer’s get better prices for their produce, give access to markets over larger geographical are and increased private participation in agricultural sector. Private sector participation will ensure increased efficiency of operations and better prospects of job creation. However, the monopolization and cartelization by large private players or consumer lobbies that is observed in some countries like France and US, will need to be addressed by the government.
The Agriculture Minister is rightly hearing the legitimate concerns of the farmer’s unions and have agreed to make modifications in the laws where appropriate. After all no reforms are perfect. Any lacuna in them must be continuously filled up to suit the needs of the people for whom they are aimed at. Can demanding a complete rollback of the laws be a solution, then? One hundred percent NO! It is high time that we change our mindset that any reforms in our country are pro rich, and they help to make the rich richer and the poor poorer. The 1991 reforms have proven this myth to be wrong.
Food is a basic necessity. Covid or no Covid, the demand for agricultural produce will not be as affected as other products. Lastly, our cultural teaching, ‘Annadata Sukhi Bhava’ meaning ‘Those who provide with food, let them be happy’ is what we sincerely pray, for the entire farming community of our country. Their happiness will have no bounds only when they will be at par with the economic standards (not only income wise but with regards to economic safety, security, and stability) of people in the organized sector.
Dr. Shephalika Gokhale (PhD.)
Besides working as a Trainer for banks and corporates in areas of general management, investor awareness programs, customer service etc., Shephalika has also worked as Manager (Customer service and Retail Operations) for more than 6 years with IDBI Bank. She also has been teaching at various management institutes and commerce colleges in Pune for the past 11 years.
While pursuing her PhD, she concluded that knowledge about money matters in simple, local language which is easily understandable is lacking. The level of financial awareness about investments and savings is worrisome, not just with adults but also in the young earning group. Managing one’s corpus needs a holistic approach keeping an eye on the various environmental factors. It is this need and her passion to educate people on matters of personal finance, led her to start sharing tips and writing for the layman. Her simple writing is hugely popular and widely read.