Farm Laws-Bane or Boon

 Farm Laws-Bane or Boon
Let's start by having a close look at the two different headlines-
  • The first image shows Punjab Farmers happily selling rice at MSP, even when the market price is significantly lower.
  • The Second image shows Maharashtra farmers selling the Tur Dal in Open Market when Market Price is 1.5 times higher than the usual MSPs.
The point is that the amended Farm Laws give the farmers numerous options- whether to sell at MSPs or to sell in open markets, to Corporate Agro businesses who may pay the farmers higher prices.
The Opposition argues that the Modi govt is doing all this for the benefits of its corporate(allies) but in my point of view it doesn't seem so. The Opposition says the poor and illiterate farmers tend to have a weak bargaining position in contrast to the powerful and rich corporates. Since the closing of APMCs(and virtually the lifting of MSP) the farmers have no security but the corporates. They may get lower prices than MSPs. 
But I would like to point out a simple stats: The price of peanut in India is  ₹85/kg whereas surprisingly peanut butter costs ₹400/kg. WHYYY?? Because Peanut butter is imported by India. Despite being a major producer of peanut, India doesn't have the means to produce peanut butter. The same is the situation with several other Agro-Based products. The Foreign brands do not want to invest in Agro Based sector India because the Farm Rules did not permit the farmers to sell to locale or any individual other than APMCs.

This form of a rule is not very new to India. Contract Farming has been in action in several states of India successfully. For instance: Pepsico in Punjab and West Bengal. State Governments in India like Punjab(Congress), Odisha(BJD), Tamil Nadu (AIADMK) have passed Contract Farming laws. The Modi Govt has just passed such a law at National level-One Nation One Market- farmers can now sell their produce anywhere to anyone.  

Benefits of Farm Laws:
  • Farmers can sell their produce anywhere in India.
  • The rules will bring FDI to India in the most neglated Agro sector which remains undeveloped since Independence.
  • New and better Farming Techniques will improve produce.
  • The efficiency of the supply chains will improve(1/4th of India's agro produce get wasted every year due to poor supply chains).
  • The middle men will get eliminated.

However there are a few setbacks as well:
  • The Modi govt is playing Double Standards: they say MSPs are untouched as before...But how(since APMCs are closed and banned).
  • 85% farmers in India are small farmers(own land less than 2 hectares) so, they can't go beyond local markets and APMCs even though it means forgoing better prices.
The main problem in India is people are simply unaware of the current scenario. The want to criticize every single matter. Instead they should try to know each minute details before critisizing anything.

By Siddheshwar Panda

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