New farm laws herald new era of market freedom: Economic Survey
These legislations were designed "primarily" for the benefit of "small and marginal farmers", which constitute around 85 per cent of the total number of farmers and are the biggest sufferer of the "regressive" APMC-regulated market regime, the sur...
By ET Bureau | Updated:
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It also highlighted the recommendations made on agri-market reforms since 2001.
New Delhi: The Economic Survey strongly batted for agriculture reforms, which have sparked raging protests from farmers, saying that besides giving market freedom, they will help raise incomes of small and marginal farmers.
The survey said the sector needs urgent reforms to enable sustainable and consistent growth and that the three central farm laws enacted last year are just the catalysts needed in that direction. It said these laws are designed and intended to ensure better price realisation by removing intermediaries for farmers, especially small and marginal farmers, who constitute about 85% of farmers and are the biggest sufferers of the regressive regulated market regime.
Emphasising the need to modernise agriculture and make it a remunerative sector, the survey said the agricultural reforms are “a remedy, not a malady”.
The Supreme Court has clamped a stay on the implementation of the laws, following stiff opposition from farmer unions, and constituted a committee to resolve the standoff between farmers and the government.
The survey said the removal of stock limit and the consequent freedom to produce, hold, move and supply would lead to harnessing of economies of scale and would attract private sector and foreign direct investment in the agriculture sector. The legislation would help drive up investment in cold storages and modernisation of the food supply chain, it said.
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The survey also hailed the contract farming law, saying that after signing a contract, farmers would not have to seek out traders as the purchasing consumer would need to take the produce directly from the farm.
“This will empower farmers in their engagement with processors, wholesalers, aggregators, large retailers, exporters and will provide a level playing field. It will transfer the risk of market unpredictability from the farmer to the sponsor and also enable the farmer to access modern technology and better inputs,” said the survey.
The survey said the farm laws herald a new era of market freedom which can go a long way in the improvement of farmer welfare in India.
Agriculture minister Narendra Singh Tomar said initiatives like the agriculture infrastructure fund of ₹1 lakh crore, creation of 10,000 farmer producer organisations and easy credit facilities to farmers will supplement the farm reforms and agriculture will move swiftly to the next trajectory of growth.
