By PK Joshi & AK Padhee
The 3 new farm laws, because their enactment, have been a topic of intense debate and discussion, specially against the backdrop of the ongoing agitation by farmers largely from north-west India. The negotiations among the farmers’ groups and the Union government have been going on.
Our discussion entails the Farmers Produce Trade and Commerce (Promotion and Facilitation) Act. This law envisages no cost movement of farm make from surplus to deficit places across the nation and frees restrictions for any such sale in the physical premises of APMC mandis. Moreover, this legislation also prohibits state governments from levying any industry charge, when farmers trade their make in an ‘outside trade area’. The farm-agitations’ demand to repeal the 3 farm laws and legalise minimum help costs (MSPs) baffle us, offered the apprehensions more than the effect of the laws on the farmers are largely misplaced.
Legalising MSP signifies the suitable to have minimum costs for 23 agricultural commodities for which the help-cost is decided by the government, primarily based on the suggestions of the Commission for Agricultural Costs and Prices (CACP). Legalising minimum costs signifies industry and/or government ought to procure these declared agricultural commodities at assured costs. When there is a surplus of any commodity, then costs will fall, and there will be no purchaser to procure the make. Then, the farmer has to retain the marketable surplus at his personal price and wait till the costs rise to dispose of the make. This will naturally be really distressing for the farmers. Alternatively, the government has to procure the commodity at the declared costs. This is not feasible as the government has to generate a enormous network for procurement for all commodities all through the year and arrange for stocking and disposal at prevailing (reduced) industry costs. The demand, hence, appears illogical and impractical.
Scrapping the 3 farm laws will be disastrous for the whole agriculture sector, more so for the farmers. Repealing these laws signifies the continuation of ‘business-as-usual’, exactly where farmers make only these commodities that they have been generating because ages. Under the present arrangement, there is no incentive to conserve groundwater, enhance efficiency, and diversify agriculture towards more remunerative commodities.
Here are a couple of examples from different components of the nation, exactly where there is neither reliance on APMC markets nor the MSPs. Moreover, the farmers are compact and marginal in these instances and cultivating industry-driven higher-worth commodities. These groups of farmers cited beneath, are displaying the ray of hope for a ‘new agriculture’ that is transforming into an ‘agribusiness profession’. These farmers are generating industry-driven commodities, enhancing resource use efficiency and minimising dangers.
We start out with the ‘Abhinav Farmers’ Club’, which is a cooperative of about 850 farmers in Maharashtra. They are largely compact and marginal farmers, who have adopted frontier technologies and straight connect with markets (specially massive retailers, e-retailers, hotels, and so forth). They make flowers, Indian and exotic vegetables, fruits, milk, and dairy solutions. The members of the club do not rely on MSPs and APMC markets. The club has been accountable for altering the lives of the farmers who are a element of this organisation. The club also delivers hands-on coaching to the farmers from other states.
The second instance is ‘Mahagrapes’, a cooperative partnership firm established by the Maharashtra State Agricultural Marketing Board. Several Grape Growers’ Cooperative Societies are element of it. The members of the cooperatives develop grapes for exports. Mahagrapes has come to be a brand name in European nations and middle-east markets. The farmers comply with ‘good agricultural practices’, adopt enhanced plant genetic stock, and guarantee pesticide-residue no cost grapes. The grape cultivation has not only improved incomes of the member farmers but also transformed the whole region, with created infrastructure like pucca roads, superior schools, hospitals, and a number of ancillary activities. India could emerge as a leader in fruits and vegetables at the international level. The want is to consolidate farmers, either via cooperatives or FPOs, to make demand-driven and want-primarily based fruits and vegetables in chosen international markets.
The poultry sector is one particular of the important drivers for the development of Indian agriculture. A productive instance is of Namakkal district in Tamil Nadu, exactly where practically 3 decades ago, a couple of farmers began poultry farming with 1,000 to 10,000 birds. At present, there are about 1,one hundred poultry farmers with more than 4.5 crore layer birds for egg production. There are projections that the Namakkal zone is generating about 3 crores eggs every single day. The farmers are rearing enhanced genotypes.
There are a number of other productive examples, exactly where farmers neither rely on MSP or the APMC markets. Success is dependent on the farmers’ capacity to consolidate for production and marketing and advertising, either via cooperatives or FPOs. Farmers of the Green Revolution belt are hugely enterprising and can aid create a number of productive models with policy help for the duration of the transition. Reforms in agriculture sector call for the help of farmers, state governments, private sector and all connected stakeholders to bring preferred benefits. We only want that the present chance is not wasted.
Joshi is ex-Director, South Asia Office, IFPRI and Padhee is Country Director-India, ICRISAT
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