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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Category: Agriculture & Foodgrain
The Budget’s food subsidy conundrum
The subsidy currently covers 800 million and is meant for the poor. Heavily subsidised food is for the very poor. How can 2/3rd of Indians be very poor? In the Union Budget for 2022-23, the Modi government has allocated Rs 207,000 crore for food subsidy which is Rs 79,000 crore less than the actual expenditure of Rs 286,000 crore during 2021-22 as per the revised estimate (RE). Under the National Food Security Act (NFSA), 2013, the Union Government directs the Food Corporation of India (FCI) and other state agencies to procure food from the farmers at MSP (minimum support price) and organize its distribution to a mammoth population of 800 million people through an elaborate network of fair price shops...
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Food subsidy – conundrum
In the Union Budget for 2022-23, Modi – government has allocated Rs 207,000 crore for food subsidy which is Rs 79,000 crore less than the actual expenditure of Rs 286,000 crore during 2021-22 as per the revised estimate (RE). Under the National Food Security Act (NFSA), 2013, the Union Government directs the Food Corporation of India (FCI) and other state agencies to procure food from the farmers at MSP (minimum support price) and organize its distribution to a mammoth population of 800 million people through an elaborate network of fair price shops (FPS) at the subsidized price (call it ‘issue price’) of Rs 2, Rs 3 and Rs 1 per kg for wheat, rice, and coarse cereals, respectively. Each person...
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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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India should abandon the MSP track now
The Government should consider direct benefit transfer to farmers. It will help eliminate inefficiencies and misuse that go with current MSP regime In view of the new Coronavirus mutation Omicron rearing its head, the 12th Ministerial Conference (MC) of the World Trade Organization (WTO), scheduled to have commenced from November 30, has been deferred indefinitely. The Government should use the interregnum for formulating strategy and coordinate with other like-minded developing countries. The key areas requiring attention are (i) permanent solution to the public stockholding (PSH) program for food security; (ii) a special safeguard mechanism (SSM) for developing countries; (iii) remove the existing inequity in fishery subsidies; (iv) patent waiver for manufacture COVID-19 vaccines; (v) WTO reforms. India runs a mammoth program...
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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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Farm laws – Modi’s volte face
On November 19, 2021, announcing his Government’s decision to repeal the contentious three farm laws viz. The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 and The Essential Commodities (Amendment) Act, 2020, Prime Minister, Narendra Modi apologized for not being able to convince the nation about the benefits that these laws would bring to a section of the farmers. 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...
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Why Modi does not repeal the farm laws
The farm laws will open up multiple options for farmers, enabling them to realise a price of their choice which could be even more than MSP Even as Prime Minister Narendra Modi has demonstrated resilience while navigating other reform measures, he has refused to budge on the three farm laws despite the nearly 10-month-long protest by farmers demanding their repeal. 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 produce; it varies depending on the commodity. The shares of farmers dissatisfied are...
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Why Modi doesn’t repeal farm laws
Even as Modi has demonstrated resilience while navigating other reform measures, on the three farm laws, he has refused to budge despite nearly 10 month long protest by farmers demanding their repeal. Here are the prime reasons. Let us start by referring to the results of a recent exercise termed “Situation Assessment of Agricultural Households and Land and Livestock Holdings of Households in Rural India” or in short SAS released by the National Statistical Office (NSO) covering the period July 2018 to June 2019. It reveals widespread dissatisfaction among farmers with the price realized from sale of their produce; it varies depending on the commodity. The shares of farmers dissatisfied are cereals: 25%; fruits: 28%; pulses: 32%; oilseeds: 35%; vegetables:...
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Defending public stockholding program at WTO
In the run up to the 12th WTO (World Trade Organization) Ministerial Conference (MC-12) scheduled to be held from November 29, 2021, India has made two submissions; first, subsidies given for maintaining food security programs of developing countries should be allowed without any limit and second, member countries who give trade distorting farm subsidies in excess of US$ 10 billion should eliminate them within three years. India runs a mammoth program of Public Stockholding (PSH) for food security purposes. Under it, agencies of the Government like the Food Corporation of India (FCI) buy agri-produce such as wheat, rice/paddy, coarse cereals etc from farmers at the minimum support price (MSP) and distribute at a heavily subsidized price of Rs 1/2/3 per kg through...
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