Our Farm reforms deserve another chance 

News: A recent finding of the Supreme Court-appointed panel has put back in focus the three farm laws that were revoked in late 2021 in the wake of farmer protests.

As per the panel findings, it appears that a majority of farmers may have actually welcomed the agricultural reforms that were aimed through three farm laws 2020.

Agri sector needs an overhaul. If a proper participatory approach is developed, a wide consensus can be built around farm sector reforms.

What is the right approach to bring in the farm reforms?

A consensus-led approach is needed to carry agricultural reforms. A more participatory approach is needed. It may include giving adequate representation to farmers, including protestors, while redrafting laws.

Also, the draft bill should be put to public feedback. The draft bills should also be sent to a parliamentary committee so that other political parties can offer their inputs. 

The reforms must grant market forces a greater role in this sector. The government must convince farmers that an open market would be in their favour. It will enlarge their set of choices. 

Particular attention must be given to those aspects of laws that caused anxiety and caused their withdrawal, like suspicions of rising crony capitalism. 

In addition to proper market openness (even to foreign buyers), a redressal device must be instituted. It would give assurance to aggrieved farmers. It can be like direct access to courts of justice.  

It should be made explicit in India’s competition law, that no private entity is allowed to dominate farming, cartelize purchases and carry out unfair deals.  

The farmer collectives can be formed. It will raise the bargaining power of cultivators. It will also mitigate monopsony risk.  

What is the way forward?

Agriculture has been stuck with the legacy of a socialist framework, worsening inequality in India.

The farm sector should not be left to languish. It needs capital, private inputs and greater freedom of choice to modernize.

Hence, a renewed effort must be made.

Source: The post is based on an article “Our Farm reforms deserve another chance” published in the Live Mint on 28th Mar 22.