The Government should consider direct benefit transfer to farmers. It will help eliminate inefficiencies and misuse that go with current MSP regime In view of the new Coronavirus mutation Omicron rearing its head, the 12th Ministerial Conference (MC) of the World Trade Organization (WTO), scheduled to have commenced from November 30, has been deferred indefinitely. The Government should use the interregnum for formulating strategy and coordinate with other like-minded developing countries. The key areas requiring attention are (i) permanent solution to the public stockholding (PSH) program for food security; (ii) a special safeguard mechanism (SSM) for developing countries; (iii) remove the existing inequity in fishery subsidies; (iv) patent waiver for manufacture COVID-19 vaccines; (v) WTO reforms. India runs a mammoth program...
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Category: Agriculture & Foodgrain
Repeal of farm laws: PM Modi’s volte-face
The arthiyas, large farmers and traders have successfully protected their turf while small farmers, who constitute the overwhelming majority, have lost On November 19, 2021, announcing his Government’s decision to repeal the contentious three farm laws, Prime Minister Narendra Modi apologized for not being able to convince a section of the farmers about the benefits that these laws would bring them. Are these laws so complex as to become incomprehensible to the farmer? The “Situation Assessment of Agricultural Households and Land and Livestock Holdings of Households in Rural India”, SAS in short, released by the National Statistical Office (NSO), covering the period July 2018 to June 2019, reveals widespread dissatisfaction among farmers with the price realized from sale of their...
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Farm laws – Modi’s volte face
On November 19, 2021, announcing his Government’s decision to repeal the contentious three farm laws viz. The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 and The Essential Commodities (Amendment) Act, 2020, Prime Minister, Narendra Modi apologized for not being able to convince the nation about the benefits that these laws would bring to a section of the farmers. Are these laws so complex as to become incomprehensible to the farmer? The “Situation Assessment of Agricultural Households and Land and Livestock Holdings of Households in Rural India”, SAS in short, released by the National Statistical Office (NSO), covering the period July 2018 to June...
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Why Modi does not repeal the farm laws
The farm laws will open up multiple options for farmers, enabling them to realise a price of their choice which could be even more than MSP Even as Prime Minister Narendra Modi has demonstrated resilience while navigating other reform measures, he has refused to budge on the three farm laws despite the nearly 10-month-long protest by farmers demanding their repeal. The “Situation Assessment of Agricultural Households and Land and Livestock Holdings of Households in Rural India”, SAS in short, released by the National Statistical Office (NSO), covering the period July 2018 to June 2019, reveals widespread dissatisfaction among farmers with the price realized from sale of their produce; it varies depending on the commodity. The shares of farmers dissatisfied are...
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Why Modi doesn’t repeal farm laws
Even as Modi has demonstrated resilience while navigating other reform measures, on the three farm laws, he has refused to budge despite nearly 10 month long protest by farmers demanding their repeal. Here are the prime reasons. Let us start by referring to the results of a recent exercise termed “Situation Assessment of Agricultural Households and Land and Livestock Holdings of Households in Rural India” or in short SAS released by the National Statistical Office (NSO) covering the period July 2018 to June 2019. It reveals widespread dissatisfaction among farmers with the price realized from sale of their produce; it varies depending on the commodity. The shares of farmers dissatisfied are cereals: 25%; fruits: 28%; pulses: 32%; oilseeds: 35%; vegetables:...
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Defending public stockholding program at WTO
In the run up to the 12th WTO (World Trade Organization) Ministerial Conference (MC-12) scheduled to be held from November 29, 2021, India has made two submissions; first, subsidies given for maintaining food security programs of developing countries should be allowed without any limit and second, member countries who give trade distorting farm subsidies in excess of US$ 10 billion should eliminate them within three years. India runs a mammoth program of Public Stockholding (PSH) for food security purposes. Under it, agencies of the Government like the Food Corporation of India (FCI) buy agri-produce such as wheat, rice/paddy, coarse cereals etc from farmers at the minimum support price (MSP) and distribute at a heavily subsidized price of Rs 1/2/3 per kg through...
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Farm loan waiver: An unhealthy practice
Such sops largely benefit the undeserving, bring the Union and States’ budgets under stress and increase NPAs of banks The reports of a district administration ordering the auction of the land of several farmers in Rajasthan to recover their dues to public sector banks are shocking. Land is the only asset that a farmer, especially small and marginal, has and if it is taken away, this will lead to permanent incapacitation impairing the person’s ability to earn a livelihood. The dues piled up because the farmers did not pay back because in the run-up to the 2018 assembly elections, then Congress President Rahul Gandhi had promised loan waiver and that too within ten days of his party Government taking charge....
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Loan waivers enrich undeserving
The reports of the district administration ordering auction of the land of several farmers in Rajasthan to recover from them the dues of public sector banks (PSBs) are shocking. The land is the only asset that a farmer especially small and marginal has and if it is taken away, this will lead to permanent incapacitation impairing his/her ability to earn a livelihood all through his/her life time. The dues had piled up because the farmers did not pay back as during the campaign in the run up Assembly elections in the State (2018), the then President, Indian National Congress (INC), Rahul Gandhi had promised loan waiver and that too within ten days of the INC-led Government taking charge. But, it...
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The ball lies in the farmers’ court
The demand for repeal of the Central laws is unwarranted. They open up multiple options that farmers can leverage for increasing price realisation While staying the implementation of the three farm laws enacted by the Union Government in January 2021, the Supreme Court had hoped that this would create a congenial atmosphere for the protesting farmers to come to the negotiating table and arrive at an amicable settlement. However, the purpose is far from achieved as certain farmers’ bodies are insisting on ‘repeal’ of the laws. This is overshadowed by yet any other demand that the Union Government should guarantee a minimum support price (MSP) backed by a law enacted by parliament. As the wording suggests, MSP is the minimum...
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Dealing with Delhi CM Kejriwal’s ‘ration mafia’
The scheme mooted by the Delhi Government will only create more avenues for the middlemen to make money at the cost of the taxpayer Arvind Kejriwal, Chief Minister, National Capital Territory (NCT) of Delhi has justified his much-trumpeted scheme for door-step delivery of ration on the ground that this will help rein in what he describes as ‘ration mafia’ while ensuring that every grain of the subsidized food reaches the person (read: the poor) for whom it is intended. Who is this ‘ration mafia’? How does it plunder the subsidized food? Can the scheme prevent it? Under the National Food Security Act, 2013, the Union Government directs the Food Corporation of India and other state agencies to procure food from...
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