Chief Economic Adviser K Subramaniam on Monday said the new agriculture laws will eventually help farmers in getting better returns as the laws provide them competition by allowing them to sell their produce to corporates like Reliance and ITC also at good prices. Agriculture laws were approved by Parliament last year, but the Supreme Court suspended their implementation in January 2021 amid protests from farmers.
Subramaniam said that the Agriculture Act is a step towards improving the income of small and marginal farmers. Critics of the laws have questioned the way the bills were passed and alleged that the reform would help large businesses by incorporating agricultural activities. Subramaniam said that insisting on selling goods only in Agricultural Produce Marketing Committee (APMC) markets affected farmers’ realization as the buyer who acted as an intermediary, had a major hand in the trade as it was a perishable commodity. Or the business had the upper hand due to factors such as the cost involved. Coming to market again.
The Agriculture Bill provides for competition so that small and marginal farmers can go to the intermediary and say that if you are not going to pay a good price, I can go and sell it to someone else. It could be ITC, Reliance or Farm Fresh, he said. Speaking at an event to celebrate the foundation program of NABARD, he said that these institutions would compete for the produce of the farmers, thereby ensuring that a farmer, especially a small and marginal farmer, gets an adequate price for the produce. will get.
Subramaniam said the presence of the APMC Acts, which agricultural laws seek to abolish, can be traced back to the 13th-century conquistador Alauddin Khilji’s needs to feed his large army, Subramaniam said, giving a farmer only 15 per cent. Monthly available. The percentage of the price of an article in which the middlemen make the most. Academic-turned-policy consultant Subramaniam said competition has always helped end consumers and producers, pointing to sectors such as banking, mutual funds, telecom and airports as success stories. He also said that apart from having a better network, the rich farmers do not face the same hardships as the small and marginal farmers because of their ability to invest in storage infrastructure.
He said that apart from the APMC laws, the agricultural reforms also do away with the provisions of the Essential Commodities Act, which do not differentiate between lawful storage and hoarding of an agricultural commodity. Subramaniam said the provisions were being used for distorted results, which was visible through the fact that over 80,000 raids were conducted, of which only 2 per cent were prosecuted, and to stabilize prices. Its original purpose was not achieved at all.
Small and marginal farmers are losing out and despite 75 years of independence their state has not improved significantly, he claimed, with the agricultural infrastructure the laws would be helpful. He said the laws would increase farmers’ income, enable more innovation and significantly drive growth in the agriculture sector.
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