India’s recently-enacted Agri laws have the potential to increase farmers’ income, but there is a need to provide a social safety net to the vulnerable cultivators, said IMF’s Chief Economist Gita Gopinath.
She said Indian agriculture needs reforms.
The America based economist believes there are several areas which require reformations including infrastructure.
“These particular farm laws were in the area of marketing. It was widening the market for farmers. Being able to sell to multiple outlets besides the Mandis without having to pay a tax. And this had the potential to raise, in our view, farmers’ incomes", Gopinath said while responding to a question on farm laws.
The three agrarian bills that were enacted in September 2020 by the Modi government have received massive opposition from the farmers across the country which has prompted thousands of farmers to camp around Delhi borders, demanding a complete repeal of the laws. On the other hand, the government says the new reforms will bring significant changes in the agriculture sector by removing middlemen and allow farmers to sell their products anywhere in the country.
“That said, every time reform is put in place, there are transition costs. One has to make sure and pay close attention that it's not harming vulnerable farmers, to make sure that the social safety net is provided. There is a discussion right now and we'll see what comes out of it," she said.
After several talks between the farmers and the Centre, the flatmate remained the same.
The government has offered to stay the farm laws for 1-1.5 years and form a joint committee to find solutions, in return for protesting farmers going back to their respective homes from Delhi borders.
However, the farmers’ unions have declined their proposal and said they would settle for nothing less than a complete repeal of the laws, which they find pro-corporate, and a legal guarantee for the procurement of crops at government-fixed MSP.
Tractor parade violence
Republic Day’s tractor parade in New Delhi, which was to intensify their protest and highlight the demands of the farmer unions to repeal three new Agri laws turned into anarchy on the streets of the city as thousands of protesters breached barriers, attacked police, overturned vehicles, vandalised public property and hoisted a religious flag from the ramparts of the iconic Red Fort.
Also Read: Video from protest site shows farmers chase away Deep Sidhu
The Kisan Morcha has disassociated itself from those who indulged in violence during the tractor parade and alleged that some "antisocial elements" infiltrated their otherwise peaceful movement.