Reforms in Agriculture Sector
Almost 1000 farmers commit suicide every month in India. Has the reforms in agriculture sector finally arrived in India?
Until now farmers had no option but to sell produces at set prices at mandis, which resulted in distress sales during bumper crops, monopolisation of markets and collusion between traders.
The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020 is aimed at more income and wealth generation for farmers and eliminating middlemen. The government claims the landscape of agriculture will be changed forever.
Wholesellers and retailers can now buy directly from farmers. Barrier free trade and movement of farm produce is introduced. Contract farming is legalized. It also focuses on robust data collection mechanisms to determine credit-worthiness of farmers for easy disbursal of loans by banks. It also aims to shoot up productivity by aggregating landholdings without impinging the right of owners.
The farmers have long been the backbone of India. Let's hope these long due structural reforms see effective implementations. Rise in income and wealth generation will finally allow the farmers to live with dignity.
#farmers #agriculture #reforms
Until now farmers had no option but to sell produces at set prices at mandis, which resulted in distress sales during bumper crops, monopolisation of markets and collusion between traders.
The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020 is aimed at more income and wealth generation for farmers and eliminating middlemen. The government claims the landscape of agriculture will be changed forever.
Wholesellers and retailers can now buy directly from farmers. Barrier free trade and movement of farm produce is introduced. Contract farming is legalized. It also focuses on robust data collection mechanisms to determine credit-worthiness of farmers for easy disbursal of loans by banks. It also aims to shoot up productivity by aggregating landholdings without impinging the right of owners.
The farmers have long been the backbone of India. Let's hope these long due structural reforms see effective implementations. Rise in income and wealth generation will finally allow the farmers to live with dignity.
#farmers #agriculture #reforms