Farmers bill

Historically & economically, India has been a nation of farmers. More than half of India's population, directly as well as indirectly is dependant on agriculture as a means of livelihood. For decades, farmers have toiled hard and relentlessly to feed a nation of millions. Why then today are they out on the streets, so publicly and vehemently portraying their displeasure against a legislation which, according to the government in power is aimed at improving agriculture?

ALL ABOUT DEREGULATION

At the heart of it, the legislation is aimed at deregulating the heavily constrained agricultural sector. The Farmer's Produce Trade and Commerce(Promotion and Facilitation) Bill aims to open the market for agricultural goods. The Mandi (marketplace) System has dominated Indian agriculture since the onset of the Green Revolution in the mid-1960s. In the Mandi, crop prices have been regulated by the government and farmers from surrounding areas have found a common marketplace where their produce could be sold at reasonable rates. The new bill seeks to deregulate these mandis or markets to market forces of demand & supply. The bill will now also allow the selling of harvest outside the state which was previously prohibited. Farmers allege this will increase competition & lead to lower prices. The government believes this will open new avenues for sale.

THE SLEAZY CORPORATE

The Farmer (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill aims to promote the practice of contract farming in India which had been illegal till now. With a motive of increased participation of the private sector in agriculture, the government expects an inflow of investment & better remuneration for the farmers. This might also help in the adoption of more capital intensive & modern techniques of cultivation. However, the farmers fear commercialization of their occupation. They feel their bargaining position against the big business houses & conglomerates would be feeble. Also, the corporates may find it easier to award contract to a farmer with large landholdings in place of a multitude of small farmers.

THE NOT SO BAD MIDDLEMAN

The term "middleman" usually evokes a negative response as per common perception. Usually, these middlemen are profit hungry wolves who inflate the price. However, the situation is a little different in Indian agriculture. The "arthiyas" as they are widely known, provide the farmers with storage & warehousing. They also ensure that the farmers usually receive payment within 48 hours. The arthiyas also receive a 2% commission on the selling price of harvest. So it is in their own interest to get a higher price for the farmer. The government has claimed that these middlemen squeeze farmer's livelihoods. But evidence and ground reality suggests otherwise.

THE MILLION DOLLAR QUESTION OF MSP

Minimum Support Price has been a soothing balm for deprived farmers in northern India for decades. It has ensured that the farmers receive at least a certain level of remuneration. However, it has cost the government lakhs of crores over the years in storing & distributing these foodgrains to the poor at very low pricing through public distribution systems. Increasing MSP twice a year has also lead to food inflation. No mention of MSP in the new bills has caused a tremendous amount of trepidation amongst the farmers in Northern India. Economically speaking; removing MSP makes perfect sense. A large sum of unproductive expenditure can be diverted to more economically fruitful avenuesm. However, removing MSP exposes the farmers to a very unfriendly market & gives them no cushion. The government faces a major dilemma here.

A BUREAUCRAT'S PERSPECTIVE

To say that the agricultural reforms are anti-farmers would be a gross overstatement. The legislators have considered farmer's interests as well. Indian agriculture was in desperate need of reforms. And the government wants to turn the current economic crisis into an opportunity. However, the heavy-handed manner in which the legislation was passed without consulting the farmers seems to have enraged them. The reforms have paid no attention to India's decrepit infrastructure. Farmers have limited or no access to cold storage, warehousing, connected roads, irrigation (more so in states like Bihar & Uttar Pradesh), green tech as well as modern tools like AI & ML. An initiative in this regard would have perhaps dispelled the discontentment.

AN IDEALOGICAL AFFAIR

At the crux of it, this is a battle of India, an urban, emerging and aspirational economy that wants to modernize its dominant sector and open it to private participation and Bharat, the rural India that is privy to these advancements and is deeply rooted in tradition and orthodoxy. The modern India wants to move forward and maximize its economic potential whereas the rural India is blissfully oblivious to these developments, forging its own path. What path India "the nation" forges, time will foretell.