The recent issue of Farmer’s protest in India has captured the attention of global media and…
By: Meharwan Singh
Tags: Farmers, Support, Narendra Modi, India, Protest

The recent issue of Farmer’s protest in India has captured the attention of global media and different governments around the world.

The issue pertains to three Agricultural laws, their anti-Farmer and pro-Corporation nature, and the way they have been passed in both upper and lower house of legislation. It is alleged that the live broadcast of parliament was stopped, opposition walked out and none of the farmer’s group was consulted/asked for suggestions while framing these laws.

The laws are :

1. Farmers produce trade and commerce (Promotion and facilitation) 2020

2. Farmers (Empowerment and Protection) agreement on price assurance and farm services 2020

3. Essential Commodities 2020

Structure and Framework

It is very important to take into consideration the structure of agriculture and the economic conditions of the farmers to further understand the implications of these laws. In India, the majority of farmers have small (< 2.5 acres) or medium (<5 acres) land holdings, and therefore suffer due to insufficient capital to invest. This brings in the middlemen, who generally turn out to be favorable to small farmers, give them access to capital and other inputs without much formalities. Though they may charge higher rates of interest on capital, exploit small farmers (as pointed out by the Govt.), much remains to be realized about the way they bridge the gap in the system. Moreover, the figures point out that 94% of farmers already sell to private sources, whereas only 6% get the minimum support price (MSP) for their harvest.

Implications



It is very important to notice the implications of these laws by looking at similar models within and beyond the geographies. The same private model has been tried out on various crops, with no surprise but to turn out as a failure. In Bihar, Agriculture Produce Market Committee (APMC) was abolished in 2006, with the government now procuring 0.0008% wheat of what it used to!

The prices are half of the Minimum support price, thus depressing the average monthly farmer income in the state to Rs 3558 compared to the national average of Rs 6426. Surprisingly, Bihar has the lowest farmer income amongst all other Indian states, forcing farmers to migrate to majorly Haryana and Punjab, where they get higher prices for their produce. Much remains to be learned from similar models in the USA and certain European countries where big private players have exploited farmers, eventually forcing governments to shell out billions of dollars every year to keep them alive. Even, if looked from a basic perspective, it is always realized that private players enter the market for profits at the cost of exploiting different sections of society/producers in the supply chain. Then how can something different be expected from them this time?

Current Scenario

There have been more than five rounds of meetings between farmer groups and the government, with no solution or successful negotiation to date. While the farmers have been protesting on roads amidst the cold weather and the pandemic, the national media has left no stone unturned to describe them as anti-nationals/terrorists and attack the opposition. Moreover, the current BJP government in Haryana welcomed marching farmers with tear gas, water cannons, and lathi-charge. While various sportsperson and artists have decided to return their medals and awards, Bollywood seems to be quiet on the issue. The government has recently agreed to make several amendments to these laws, compared to its earlier tone of 'having zero flaws in the current bill’, clearly pointing to a small win for farmers, who have been adamant on repealing the three laws altogether. Recently, the supreme court of India intervened in the matter, suggesting both sides form a joint committee to initiate dialogue on the issue.



Conclusion



The agricultural sector of India is a very labor-intensive sector employing over 50% of the population, while contributing to 16% of GDP, with the only sector showing positive growth during the current pandemic at 3.4%, while the national GDP shrank by a whopping 23.9%. Simply unthought and unjust policies, without consent of the people, whom these policies will directly affect, points towards something fishy (whatever the center may say to justify itself)

While the govt. has recently shifted its tone to being positive about MSP, and multiple selling avenues for farmers much needs to be thought about how the reduced role of 'Mandis' will further depress the procurement prices for its own Public Distribution System (PDS), and thus shrink the size of its expenses. Prime Minister Modi recently justified the laws by saying they would allow farmers to:

•Set their own prices

•Sell directly to Corporations

•Participate in private investment to increase agricultural growth.

However, a better way to do all this could be via Increased Minimum support price to farmers.

Further, at a point where both the parties have ego clashes, the solution to this can be brought only with the establishment of dialogue and further negotiations.

#FarmersProtest

#TheAnalyst