Category: Regulatory environment

Address the root cause to stabilise food prices

The Bharat brand scheme aims to stabilise prices for consumers and ensure fair compensation to farmers. However, its impact will be limited due to State laws Last year in July, the Union Government launched a Scheme of selling chana dal at a subsidised rate under the Bharat brand call it Bharat Chana. This was followed by launch of Bharat Atta in November 2023 and Bharat Rice in February 2024, Under the Scheme, the Food Corporation of India (FCI) – a central agency whose prime responsibility is to procure, store and distribute food grains to meet the needs of beneficiaries covered under the National Food Security Act (NFSA) – buys the cereals from the farmers and sells to the National Agricultural...
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Has free ration become a political compulsion?

Under ‘open-ended’ procurement, Govt buys from farmers unlimited quantities at MSP. Apart from high stocks, this adds to the food subsidy bill substantially Addressing a poll rally in Chhattisgarh, Prime Minister Narendra Modi has announced an extension of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) free ration scheme for another five years. Launched in April 2020 to deal with the situation triggered by the Covid-19 pandemic, PMGKAY provided 5 kg of rice or wheat per person per month for “free” to 820 million, as well as 1 kg of pulses per family per month to people covered under the National Food Security Act (NFSA). Run for three months initially, the scheme got six extensions till December 31, 2022. On...
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Agri-trade: Hamstrung by state laws

To boost inter-mandi and inter-state trade in agricultural commodities, a high-level Expert Committee set up by the Ministry of Agriculture & Farmers Welfare has recommended creation of specialized Market Yard of National Importance (MNI) which could complement e-NAM (electronic National Agriculture Market). It has proposed creation of MNIs for selected commodities in six states. According to the committee, “MNI could be construed as a specialized extension of e-NAM”. At the outset, it is important to understand what is e-NAM? What is it that e-NAM hasn’t been able to achieve? How can MNI make up and fill the void? Launched in April 2016, e-NAM is an online trading platform for agriculture produce aiming to help farmers, traders, and buyers with online trading and...
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MSP guarantee will spell disaster for farmers

The hapless farmers must be liberated from the stranglehold of cartel licenced traders by giving them options to sell their produce wherever they want Union leaders may have called off farmers’ agitation in Haryana over Minimum Support Price (MSP) for sunflower seeds following the State government’s decision to agree to their demand. However, they maintain that their protest for securing legal guarantees for MSP across the country will continue. A legal guarantee for MSP was a major demand of the farmers mainly from Punjab, Haryana and western Uttar Pradesh during the year-long protest in 2020/2021 over the three Central farm laws. That protest ended when Prime Minister Narendra Modi announced on November 19, 2021, the repeal of those laws. Do...
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Resurrecting three farm laws

Farmers will continue to be in distress as long as they are shackled by the state APMC laws Reports of a farmer from Maharashtra’s Solapur getting a measly Rs 2.49 from the sale of 512 kg onions to a trader (for Rs 1 per kg on sale executed at the Solapur market yard, total sale value comes to Rs 512; after deducting labour, weighing, transportation and other charges adding to Rs 509.5, the net realization is Rs 2.49) in the district has led to all-round consternation. Rs 2.49 is the net revenue from the sale of the crop; it isn’t a profit. To arrive at it, we need to deduct from this the cost of producing 512 kg onions which...
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Wheat export – policy flip flop

In the backdrop of increase in international price of wheat (courtesy, Ukraine crisis) early this month, Prime Minister Narendra Modi, had exhorted that India can help meet the global requirements of food deficit countries, provided the World Trade Organisation (WTO) allows it. He also exuded confidence that this had created an opportunity for Indian farmers to increase their income. Even as stakeholders were gearing to undertake export with several of them having signed contracts, on May 13, 2022, the Director General of Foreign Trade (DGFT) put a ban on wheat export with ‘immediate’ effect. The exports under government-to-government arrangements and contracts signed prior to May 13, 2022 are exempt. The government has sought to explain the ban in terms of...
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Time to revisit the three farm laws

When farmers get dozens of options to sell, plain common sense says that they are bound to get a good deal in every respect, including a good selling price While, staying the implementation of the three contentious farm laws, the Supreme Court (SC) had set up a Committee to recommend the way forward. The committee submitted its report on March 19, 2021. Even as the SC action on the report was pending, on November 19, 2021 Prime Minister Narendra Modi announced repeal of the laws even while maintaining that these laws are beneficial to small and marginal farmers who are in a majority. Now, in a startling revelation, Anil Ghanwat, a member of the committee has revealed that around 85.7...
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Farm laws – time to revisit

While, staying implementation of the three contentious farm laws, the Supreme Court (SC) had set up a Committee to recommend the way forward. The committee submitted its report on March 19, 2021. Even as the SC action on the report was pending, on November 19, 2021 Prime Minister Narendra Modi announced repeal of the laws even while maintaining that these laws are beneficial to small and marginal farmers who are in majority. Now, in a startling revelation, Anil Ghanwat, a member of the committee has revealed that around 85.7 percent of the 73 farmer organizations, representing more than 33 million farmers supported the laws. This should prompt the government to revisit the laws. Meanwhile, let us look at Committee’s recommendations...
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Farm laws needed to fill a void

There are 265 crops and the MSP guarantee will have to be given to farmers producing all these crops – this will be a disaster.         Farmers celebrate following the announcement of suspension of their year-long protest against farm laws & other related issues, at Singhu border in New Delhi on Thursday. Credit: IANS Photo Following Prime Minister Narendra Modi’s announcement of the repeal of the three contentious farm laws on November 19, protesting farmers lost no time in coming up with a new charter of demands. The most potent of these is a legal guarantee for the minimum support price (MSP). Even as Modi proposed to set up a committee to recommend how MSP can be...
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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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