Relevance: GS-3: Agricultural produce and issues and related constraints

Key Phrases: Repeal of Farm Laws, consensus based approach, parliamentary committee, Contract Farming, MSP, Farmer Producer Organisations(FPOs).

Why in News ?

• After the repeal of three Farm Laws, a fresh attempt is needed to reform Indian agriculture through consensus based approach.
• The farm sector is still under dire stress and needs an overhaul. The failed first attempt may have turned the government wary of testing these rough waters again, but a consensus-led approach could get the popular backing it needs to carry reforms through.
• Recently, the three laws revoked in late 2021 were put back in focus last week by findings of significant farmer support by a Supreme Court-appointed panel.
• The ruling government victory in four of the five states that went to the polls in 2022 showed a firm vote base in its favour, had specific worry points been resolved. \

What are the major problems in agriculture highlighted in the Editorial?

1. Major problems of farmers, and Indian agriculture in general, are that the yields are much lower than the global average, the economic condition of farmers is much worse and there is very little adoption of new technologies.
2. The major reason for this is the non-availability of free and open markets to farmers, since the average landholding size is less than 1 hectare (2.4 acres).
3. The farmers are reluctant to buy new machinery and adopt latest methods and continue with traditional farming requiring large human labour.
4. This is evident from the fact that there is a huge gap between the percentage of population engaged in agriculture and the percentage of contribution to GDP by the agriculture sector.

What are the Editorial suggestions regarding new efforts to reform the agriculture sector ?

1. Participatory approach needed :
   • Unlike labour reforms aimed at offering market flexibility, on which the Union government had staked political capital but eventually went for soft options in the face of resistance from workers, convincing farmers of how an open market would work in their favour should not be very difficult.
   • The basic idea of farm reforms was to enlarge farmers' set of choices.
   • The need is a more participatory approach so that a wide consensus can be obtained.
   • Giving farmers, including protestors, adequate representation in redrafting laws aimed at granting market forces a greater role in this sector.
   • Public feedback should be sought and draft bills sent to a parliamentary committee so that other political parties can offer their inputs.
2. Address more clearly the past issues in previous laws:
   • Contract Farming: More flexibility and principal aim was to clear a path for the bulk buying, storage and contract cultivation of farm produce by private parties, protestors feared exploitation by corporate players.
   • MSP issues: If MSP procurement were to wither away, farmers believe that they would be left at the mercy of a few rich overlords. Such fears stemmed in part from suspicions of an oligarchic shift amid perceptions of rising crony capitalism.
3. Justice system should be more strong:
   • Aggrieved farmers would always have direct access to courts of justice. Also, that the standard rules of market rivalry would apply, so that no private entity gets to dominate farming and cartelized purchases do not saddle farmers with unfair deals.
   • Made it explicit in India’s competition law, which is set to be amended.
4. Promote Farmer Producer Organisations (FPOs):
   • The formation of farmer collectives could raise the bargaining power of cultivators and mitigate monopsony risk.
   • There should be proper guidelines which can define formation, functions and functionality of FPOs.

Conclusion:

• The overall thrust of the earlier farm laws appeared to encourage the participation of larger corporate players in agricultural markets rather than farmer-friendly organisations, such as cooperatives or Farmer Producer Companies (FPC).
• For instance, in the case of the amendment of the Essential Commodities Act, there was reasonable suspicion that a handful of corporate players were to substantially benefit from investments in logistics, storage and warehousing.
• Moreover, Indian agriculture has been stuck with the legacy of a socialist framework since independence even as the rest of India moved on. This has worsened Indian agriculture.
• Now the way ahead is that India must not let our farm sector languish. It needs public investment, government support and greater freedom of choice to modernize. And the government must make a renewed effort.

Source: Live-Mint

Mains Question:

Q. Analyze the critical challenges the government was faced in implementation of three farm laws, with special emphasis on concerns raised by many farmers based organisations. Suggest some solutions for new farm laws which can balance the competing demands of different stakeholders?