Sunday, September 27, 2020

Protests against Farm Bills

 The Farm Bills have now received presidential assent and therefore have become Acts. However, the protests against the Bills are continuing. Remarkably there is similarity between these protests and those against Citizenship Amendment Act (CAA). Both protests are anticipatory in nature.

The CAA does not adversely affect the interests of Muslims who are citizens of India. Yet, a canard was spread that the CAA was anti-Muslim. A fear was created that this was a prelude to an attack on Indian Muslims. Similarly, the Farm Bills are not against the interests of farmers. Despite this, the farmers are egged on to protest. An impression is sought to be created that the government will, in future, abandon APMC and MSP. The charade is complete in Bihar where the RJD is protesting 'to safeguard farmers' interests' though Bihar is one of the three states which do not follow the APMC system at all (the others are Kerala and Manipur.)

The Bills widen the scope of marketing for agricultural products. This can be pernicious only in the wild paranoid imagination of politicians. Only 6% of farmers sell their crops at MSP rates. The main benefit of sales in APMC mandi yards is reaped by the arhatiyas or commission agents who play multiple roles as brokers, money lenders, guides etc.

The incomes of arhatiyas will be reduced in case APMC becomes more unpopular. The farmers are in the stranglehold of arhatiyas and therefore easily misguided by them. The stranglehold of these middlemen can be loosened only if the commercial / rural banks come forward to lend more and on time to small and marginal farmers.

Sales in APMC mandis are subject to payment of taxes and commission. Therefore, sales outside the mandis are advantageous to the farmers. One of these Acts facilitates contract farming. A bogey is created that the farmers will become slaves of corporates. On the contrary, the farmers will benefit from R & D of corporates and enhanced certainty of offtake.

It is easy to torpedo any attempts at reform. The politicians will render good service to the nation if they realise that their role is not to oppose any sensible move by the government.

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