Category: Regulatory environment

After its defeat in three Hindi heartland states Madhya Pradesh [MP], Rajasthan and Chattisgarh, Modi – dispensation has gone into introspection mode. The top brass has recognized that a major factor behind the set-back was growing resentment among the farmers over its policies and schemes which they felt are responsible for their stagnating/declining income. Sensing that this could seriously affect party’s fortunes in upcoming general elections, it is brainstorming over alternate policies which could address their concerns. Taking cue from Telengana’s Rythu Bandhu under which the state gives Rs 4000 per acre to each farmer – as crop neutral investment support – before the start of the season Kharif [April-September] and Rabi [October-March], an idea is to give farmers assured...

Last month, the Devendra Fadnavis government approved amendments to the Maharashtra Agricultural Produce Marketing [Development & Regulation] Act, 1963 to bring it in line with the Centre’s Model Agricultural Produce and Livestock Marketing –[Promotion & Facilitation] Act, 2017. As per the amendment, the entire state is declared as a single market instead of the earlier rule of notifying “market areas” where sale/purchase of farm commodities could take place. Henceforth, a trader will need a single license enabling him to purchase agricultural produce from any mandi within Maharashtra. This is a good decision that can help farmers realize a better price. In yet another decision, the Maharashtra government has made purchase of a farm commodity below the official minimum support price [MSP] a...

The arrears of sugarcane farmers [money that sugar mills owe to them for their cane supplies] running into thousands of crore has been a perpetual headache for the ruling establishment both at the centre and states. Last year, in the run up to assembly elections in Uttar Pradesh [mills owe the maximum amount to farmers in this state], Modi had promised immediate payment of all arrears and for the future, ensure release of payment by 14th day counting from the day the cane is delivered to the factory. On assumption of office, the BJP government led by Yogi redeemed the commitment by clearing all arrears. Yet, last month, BJP lost the Kairana by-election to Lok Sabha. A major reason for...

A ten day nation-wide protest [beginning June 1] by farmers that involves refusal to sell their crop to consumers and block movement to cities would suggest that they are in deep distress. This is completely out of sync with what Modi – government as also the states ruled by BJP are doing to increase farmers’ income and provide them security. In this regard, major steps implemented by it during the last 4 years, may be put under three broad categories viz. (i) enhancing crop output; (ii) ensuring a good/remunerative price; (iii) providing insurance against natural calamities. As regards (i), Modi – government has taken up on a war scale implementation of 99 irrigation projects aimed at reaching water to farmers’...

Stung by depressed price realization by farmers much below the minimum support price [MSP] and impending general elections next year, Modi – government announced in the Union Budget for 2018-19 that henceforth, they will be assured MSP which is at least 1.5 times the cost of production. Mere assurance of a remunerative price is of no use unless the farmer is able to sell his entire produce at this price. Keen to ensure that this happens, the government asked NITI Aayog to come up with suggestions. The latter prescribed three alternatives viz. market assurance scheme [MAS]; deficiency payments and incentives to private sector to buy farmers produce at MSP. Under MAS, agencies of the state buy the produce directly from...