{"id":70984,"date":"2020-09-29T16:10:16","date_gmt":"2020-09-29T10:40:16","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=70984"},"modified":"2021-01-11T12:55:13","modified_gmt":"2021-01-11T07:25:13","slug":"three-farm-bills-analysis","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/three-farm-bills-analysis\/","title":{"rendered":"Significance and Issues associated with Farms laws"},"content":{"rendered":"<p><strong><b>Source<\/b><\/strong>:\u00a0<a href=\"https:\/\/www.thehindubusinessline.com\/opinion\/1991-reforms-for-india-2020-reforms-for-bharat\/article32714935.ece\"><u>The<\/u><\/a><u>\u00a0Hindu<\/u><\/p>\n<blockquote><p><strong><b>Syllabus:<\/b><\/strong>\u00a0GS3:\u00a0Issues related to Direct and Indirect Farm Subsidies and Minimum Support Prices<\/p><\/blockquote>\n<p><strong><b>Context<\/b><\/strong>: Recently, the President has given his ascent on the three farm Bills.<\/p>\n<p><strong><b>What are the issues with the bill?<\/b><\/strong><\/p>\n<ul>\n<li><b><\/b><strong><b>No clarity on MSP:<\/b><\/strong>the Bill does not specify that the contract price should be above the Minimum Support Price (MSP) declared by the government.<\/li>\n<li><b><\/b><strong><b>Corporatization and private hoarding: <\/b><\/strong>Farmers may earn less and consumers may pay more due to private hoarding.<\/li>\n<li><b><\/b><strong><b>Loss of revenue: <\/b><\/strong>Governments will lose mandi tax, which is a major source of revenue. Bihar failed in 2006 when APMCs were dismantled, resulting in farmers facing challenges in selling their produce at a good price.<\/li>\n<li><b><\/b><strong><b>No security to farmers: <\/b><\/strong>according to the Bill, companies are not required to have a written contract with the farmer, making it difficult for farmers to prove terms.<\/li>\n<li><b><\/b><strong><b>Weak positions for farmers: <\/b><\/strong>as per bills, contracts need not be registered with the government.<\/li>\n<\/ul>\n<p><strong><b>What are the significances of the bill?<\/b><\/strong><\/p>\n<ul>\n<li><b><\/b><strong><b>Widens farmers\u2019 choices: <\/b><\/strong>Sell anywhere to anyone at any price.<\/li>\n<li><b><\/b><strong><b>Promote agri-business<\/b><\/strong>: farmers and farmer collectives, agri-businesses and traders can manage post-harvest facilities without such interference by the government.<\/li>\n<li><b><\/b><strong><b>Socialistic reforms<\/b><\/strong>: Chakravarthi Rajagopalachari believed in maximum individual freedom and minimum interference by the state. These reforms are largely\u00a0<strong><b>Gandhian<\/b><\/strong>.<\/li>\n<li><b><\/b><strong><b>Better prices<\/b><\/strong>: reforms will allow farmers to get good prices for their produce at the farm gate.<\/li>\n<li><b><\/b><strong><b>Improve farm practices<\/b><\/strong>: Farm advisories will create better crop planning and troubleshooting.<\/li>\n<li><b><\/b><strong><b>Reduce risk<\/b><\/strong>: Climate protected farming will reduce the business risk of agriculture. Reduced business risk will encourage the insurers to insure crops.<\/li>\n<\/ul>\n<p><strong><b>What are the key dimensions to reform agriculture sector?<\/b><\/strong><\/p>\n<ul>\n<li><b><\/b><strong><b>Ensure MSP:<\/b><\/strong>MSP should continue in its current form, till markets show that they can deliver results for the farmers, even without the MSP.<\/li>\n<li><b><\/b><strong><b>Reform APMCs<\/b><\/strong>: For APMCs to stay relevant, they should become more competitive and transparent. Start-ups like Ninjacart and Waycool are proving a win-win model by reaching tens of thousands of horticulture farmers.<\/li>\n<li><b><\/b><strong><b>Universal basic income through direct benefit transfer mode<\/b><\/strong>: The free-market may increase the market-risk for farmer families in the short-term. Therefore, the government should double DBT from the current level of \u20b970,000 crore.<\/li>\n<li><b><\/b><strong><b>e-Nam to become a \u2018Unified Payment Interface\u2019 equivalent for agri markets<\/b><\/strong>: National Agricultural Market should take learnings from UPI and provide a seamless application programming interface (API) for innovators, generally agri start-ups and businesses.<\/li>\n<li><b><\/b><strong><b>Feedback loop:<\/b><\/strong>ensure that the reforms feed into a constructive feedback loop that actually benefits farmers.<\/li>\n<li><b><\/b><strong><b>Policy predictability:<\/b><\/strong>it is important to have predictability and consistency in this philosophy. If the government exercises arbitrary power in a coercive manner, the private sector will speak with their money by reducing the investments.<\/li>\n<li><b><\/b><strong><b>Farmer forum for dispute resolution<\/b><\/strong>: Contract farming will be a transaction between a weak party called a farmer and a strong party called the corporation. Farmers need a \u2018consumer forum\u2019 equivalent at a district or block level.<\/li>\n<\/ul>\n<p>India needs to combine the power of markets and technology as we have a unique opportunity to change the lives of India\u2019s poor for the better.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source:\u00a0The\u00a0Hindu Syllabus:\u00a0GS3:\u00a0Issues related to Direct and Indirect Farm Subsidies and Minimum Support Prices Context: Recently, the President has given his ascent on the three farm Bills. What are the issues with the bill? No clarity on MSP:the Bill does not specify that the contract price should be above the Minimum Support Price (MSP) declared by&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/three-farm-bills-analysis\/\">Continue reading <span class=\"screen-reader-text\">Significance and Issues associated with Farms laws<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230],"tags":[1275,1406,1471],"class_list":["post-70984","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","tag-agri_1","tag-agri_2","tag-farm_laws_related_issues","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704226033},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/70984","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=70984"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/70984\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=70984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=70984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=70984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}