Repeal of agricultural laws: Economic reforms and development of agricultural sector will be hampered

- Urgent need to improve the agricultural sector to improve the perception of farmers

After the Modi government earlier withdrew the land acquisition ordinance before the Bihar elections in 2012, the now controversial agricultural laws have been withdrawn ahead of the five state assembly elections. This is the second time the Modi government has withdrawn before the Assembly elections. According to economic experts, the government's move will put a brake on the economic reform process. It will also hamper the development of the agricultural sector in particular. Indian industries have also said that reforms are also needed in the agricultural sector to improve the income of farmers. Improvements in the agricultural sector are needed to improve the perception of farmers so that farming remains profitable. The focus should be on the availability of infrastructure to improve access to credit insurance for farmers and improve productivity to reduce post-harvest waste.

Industry sources said after the repeal of the agricultural laws, these agricultural laws were made for the benefit of the farmers, not to make the industry more profitable. We need to be our next generation if we want to provide our next generation with adequate nutritious and safe food at affordable prices and to be self-sufficient in food as a country. The generation of farmers has to be encouraged to continue farming by paying a beneficial price for agricultural produce.

Soon after the passage of these three agricultural laws, Indian industry leaders had high expectations from the industry in terms of direct farm purchases. The companies were also evaluating large-scale and supply expansion from farmer production organizations. Various retail giants were planning to get the product directly from farmers and sell it to customers through their retail stores, offline distribution chains and super apps. Many multinational companies were also planning to increase their purchases from farmers as demand improved after the global epidemic. There were plans to expand supply opportunities and companies were planning to set up large-scale warehouses near primary processing units and production clusters. The plan was to integrate the entire supply chain into a more efficient and integrated system.

But after the introduction of these agricultural laws, problems started in procurement, everything had to be stopped due to agitation and the benefits of this law could not be availed. A senior official at a food products company said on condition of anonymity. Many companies were considering buying bulk agricultural commodities as new laws ensured ease of procurement. But due to this movement they could not move forward in this regard. But now that the laws have been withdrawn, companies will have to go back to the old ways of supplying products, including government markets (wholesale markets).

However, the decision to form a committee for resolving agricultural issues would be helpful in identifying the real plight of the farmers. This will help the government to formulate adequate agricultural policy to increase the income level of farmers, especially for marginal farmers who constitute 50% of the total farmers and own less than two hectares of land. In short, strong reforms in the agricultural sector will have to be considered.