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In the third tranche of the Centre’s announcements to redress the impact of the lockdown on the economy, Finance Minister Nirmala Sitharaman, on 15 May, unveiled a slew of measures for the agricultural sector, where the farmers are facing an acute crisis.
The measures included a Rs 1.63 lakh crore stimulus, encouraging contract farming, and amending the Essential Commodities Act (ESA) to remove cereals, edible oil, oilseeds, pulses, onions and potato from its purview, aimed at easing the marketing of agricultural produce.
But the suggested reforms have virulently divided the experts on whether or not they can aid farmers in the immediate crisis.
While some like Ashok Gulati, the former Chairman of the Commission for Agricultural Costs and Prices praised the reforms for lifting the monopoly and consumer bias in agricultural markets, some others like Sompal Shashtri, former Union Minister of Agriculture believed that the state’s intervention was required to protect farmers from being exploited.
The Quint spoke to experts on agriculture who are of the opinion that none of the measures suggested by the government address the immediate concerns of cash-strapped farmers.
Ashok Gulati, an Indian agricultural economist and a former chairman of the Commission for Agricultural Costs and Prices, hailed the legal reforms. He said that the Essential Commodities Act have been depressing the price of the commodity during the harvest.
Vivian Fernandes, a senior journalist who runs an agro-focussed website called Smart Indian Agriculture, was of the opinion that while these reforms in themselves maybe helpful, it’s the implementation that we have to watch out for.
But he also said that these may not serve any immediate purpose for the farmer.
“The government announced reforms in agriculture marketing and investment in core services but if I'm not able to produce in the next season what am I going to sell? I am not saying that the government should have given them a cash transfer, or a loan waiver but a restructuring of loans,” he said.
Like Fernandes, Ramandeep Singh Mann, who is a farmer activist working in Haryana and Punjab noted that agriculture marketing comes under the ambit of the state. He questions whether these announcements will have any bearing on the ground reality.
“Nobody is contradicting these moves. But the question is what about the urgent needs right now? First and foremost we need to understand that agricultural marketing is regulated by the states. Unless and until states are on onboard, implementing these moves will be a task it itself. On the other hand, if they have they the intent then they can arm-twist the state and it can be done."
Sompal Shashtri, former Union Minister of Agriculture, however, dubbed the announcements as irrelevant.
He said, “The reforms announced are totally irrelevant; they are totally misplaced in terms of the situation we are in. And this is definitely with a view to deflect the attention from the immediate issues of starvation and displacement. They are dressed in a language which is very magical and mesmerising, but the devil lies in the details.”
Yogendra Yadav, founder of Swaraj Abhiyan, questioned what was new in any of these announcements.
“We don't have anything in draft, we don't have anything more than an intent, and we don't know how these three things relate to the crisis of the farmers right now,” he said.
Devendra Sharma, an agricultural expert, also pointed out that removing the APMC binding hasn’t served its intended purpose in helping farmers in previous cases.
Sharma also said that the reforms announced are long-term measures that don’t provide any immediate relief to cash-strapped farmers, especially those with perishable produce. He was of the opinion that at a critical juncture such as this pandemic, a direct cash transfer would be more beneficial.
“There was a huge lobby for the last two years which had been urging for the stock limit to be removed from the Essential Commodities Act. Online grocery stores, retail chains — all need huge stock, so they were worried. Now the consumers will feel the pinch. Were these reforms required at this juncture? That’s the question,” Sharma said.
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