Implications of recently promulgated (and now repealed) farm bills
BUSINESS & MANAGEMENT
Update on 24th Dec. 2021
A year ago I had shared an article that talked about how the farm bills would stand to benefit farmers and consumers alike. Fast forward a year later, much has happened - the farm bills were promulgated, vociferously opposed by a section of the society, put on hold and much to the chagrin of its supporters (perhaps a silent majority) - eventually repealed recently. Looked at in the context of its potential for cascading effects, in my view this act of repeal has been nothing short of an unmitigated disaster. It may end up giving the perception and thereby emboldening those who would want to hit the streets (unlawfully) every time some government reform is perceived to hurt their interests, knowing that eventually the powers that be would cave in :-(
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A lot has been written and spoken about the recently passed bills relating to reforms in the agriculture sector in India. Paraphrasing my two cents on it below.
The laws as passed certainly seem to have the right intentions -
Offering the farmers another alternative to sell their produce directly to a third party while bypassing the existing monopoly of APMC setup,
Incentivising the private sector to invest in cold storage and logistical facilities, and
Incentivising the farmers to gear their produce towards market needs as opposed to distorted needs created by artificial subsidies and MSPs.
This could very well be a watershed moment in the annals of Indian economic history, provided of course that the execution follows the intentions.
Giving a link below of an article that appeared in Times of India newspaper recently on this topic. The author thereof (Mr. Gurcharan Das) has provided a well rounded view of what it would mean to succumb to the vociferous opposition of the minority that yet to date has not provided any cogent reasons for their opposition to these laws.