Law Of Agrarian Reform
The farmer of such an exploited country is a spectacle of political wrestling happening from Parliament to the road today.
Economy and Development Essential Commodities Act: APMC Domestic Politics and GovernanceIndian Economy.
In this battle of farmer-farmer, what is missing from the scenario, it is really the farmer. He has no voice of his own, he has no power of his own.
Time to adopt the economics of prosperity, ignoring political noise
The three bills against which we are protesting against the reforms in the agricultural sector are not surprising. This protest is a part of India’s noisy democratic process. The same democracy is desperately in need of economic reforms on the one hand. But, when these reforms take place, an attempt is made to stop them from creating such a ruckus.
The steps that the government has taken recently to improve the agriculture sector are very easily reformable. But, there were many interests behind them.
These protests against the agrarian reform bills are due to the rich, big and effective farmers and businessmen associated with the agricultural sector. This is another example of how the politics of the past has become an obstacle in the path of better tomorrow.
These reforms in the agricultural sector promise farmers to get more value for their crops. They provide more options to sell their crops. And at the same time, through the current process of support price to be announced by the government, it also promises to ensure the minimum price of farmers’ produce.
This will not harm anyone. But, crores of farmers of the country will benefit from these agricultural reforms.
In our country, the closed chain of farming is the same, which has been doing exploitative politics in the name of farmers. In addition to communicating directly with small farmers, the government should, like the Jan Dhan Yojana, have an institutional arrangement to give loans to farmers over which middlemen have no control. Because, the farmers have control of these middlemen on the existing system of loan.
This is another example of how the politics of the past has become an obstacle in the path of better tomorrow. The central government should not bow down to this protest. Rather, it would be better if the government starts direct dialogue with small farmers.
Nevertheless, these steps taken by the Government of India to improve the agriculture sector are being opposed through demonstrations in the name of poor and small farmers. These protests against the agrarian reform bills are due to the rich, big and effective farmers and businessmen associated with the agricultural sector.
Embrace the economics of prosperity
The last argument being made about these new laws of reform in the agricultural sector is also a sham.
But the infamy of middlemen should stop
Despite criticizing the middlemen above for their antics and behavior, it is more appropriate to say that the constant attacks on the system of middlemen are not appropriate. No organization is spoiled by making profits by bad processes, or by distorting the system of institutions.
Only middlemen prepare the market. After some time, the price paid for their services decreases. Whenever this has happened in India, the noise has been made against reforms. Sometimes in the name of investors, sometimes in the name of customers. For instance, before the electronic trading in the stock market, the brokerage commission of shares was five per cent. But, compared to the 1990s, the stock market has become so huge that without committing electronic trading, this commission is very low in terms of numbers.
Middlemen also provide an important service. This is seen in the field of all economic activities of the country. Be it the sale of vehicles (car showrooms), the sale or purchase of properties in real estate (property brokers), stock market brokers or insurance agents. Realize this, that without shares, no capital will be seen in the stock market of the broker.
This problem of protesting for the interests of some sections has been going on in our country for a long time. Amid such protest, much awaited reforms are being done in the agriculture sector in the country. Agency is not the problem in this agency based system of agriculture in our country. Rather, there is no monitoring of the work of that agency.
Now there is only one area where such benefits due to corporate entities are not reaching the customers. And that is the insurance sector of the country. And the reason for this is the insurance sector regulator, which has failed to fulfill its responsibility. Today, there is a strong need to improve India’s insurance sector.
New companies can create structures that can work in harmony with the existing system. This will be a continuous process. It may be that the role of middlemen continues. But, the habit of recovering them from the farmers should be curbed. These three new laws of reform will ensure this. The political effects of this change from the old system to the new system will also be seen. And we can see their impact as the result of the 2024 Lok Sabha elections.
In our country, the social structures of finance and debt are also such, in which the middleman is the money lender. And since the business banks have not been able to reach such a reach in the agricultural sector, to meet the debt demand in the agricultural sector. So, these middlemen loan to the farmers at huge interest. In such a situation, the scope of Jan Dhan Yojana can be overcome with this problem by increasing the area of agricultural credit.
Due to the failure of the market, today the system of buying agricultural produce is under the control of politicians, officials and middlemen. As soon as the corporate system enters the farming market, many of these problems are expected to end. Now the new institutes will stand in this area, they will have to ensure that the old system does not get transferred in the new system.
Due to the failure of the market, today the system of buying agricultural produce is under the control of politicians, officials and middlemen. As soon as the corporate system enters the farming market, many of these problems are expected to end. Now the new institutes will stand in this area, they will have to ensure that the old system does not get transferred in the new system. For example, state governments interfere in the process of these reforms and slow down the flow of companies.
Three statutes for a class
At present, there are three such laws which are being disputed. Some of the main provisions of these three laws are as follows.
The goal of this bill is to end control over grains, pulses, potatoes, onions, edible oil seeds and edible oils. Now the order regarding the regulation of these items will be issued only in very exceptional circumstances. That is, only at the time of war, famine, extraordinary increase in price and terrible natural disaster, these items can be regulated under this law.
The new law also defines those special circumstances. For example, a rise in the retail price of horticultural products by more than one hundred percent, or an increase in the price of non-perishable food items by more than fifty percent. And to assess this increase in price, the time limit has also been set in the new law.
Essential Commodities (Amendment) Act 2020: The aim of this new law is to give exemption from excessive legal control over the production and distribution of agricultural products. With this amendment, the Essential Commodities Act of the twentieth century, ie 65 years old, 1955, has been molded in line with the twenty-first century reality, essential flexibility and aspirations.
It is to be noted here that this law has not stopped the farmers of the Agricultural Produce Market Committees from buying their produce. Rather, with the creation of the new law, state governments will not be able to levy any mandi duty, tax or octroi on the farmers selling produce outside the APMC.
What were the prices of these items in the last twelve months or what was the average price of these items in the last five years. Since food is a lot of waste in our country. So, in such a situation, a change in the 65-year-old law will enable the development of cold storage infrastructure in the country. With this, food items can be stored. Which will not harm anyone.
With the enactment of this new law, farmers will now be able to sell their produce in other places outside the mandi committees. It is to be noted here that this law has not stopped the farmers of the Agricultural Produce Market Committees from buying their produce. Rather, with the creation of the new law, state governments will not be able to levy any mandi duty, tax or octroi on the farmers selling produce outside the APMC.
The Agricultural Produce Trade and Commerce (Promotion and Simplification) Act, 2020: This new law will break the monopoly of the Agricultural Produce Market Committees (APMC) in the field of trade of agricultural products. Mandi committees are run by the state governments.
Apart from this, after the implementation of this new law, the state governments will not be able to collect any tax, fee or octroi from any farmer, trader of crops or electronic trading and transaction maker. According to the constitution, agriculture is a all state subject.
Ignore political uproar
The funny thing is that the political parties which promised these reforms in their election manifesto, are today opening a political front against this reform. Today, the living farmer has been transformed into just one word. Today small farmers have become such a pawn, which are being used to protect the interests of the people frozen in power and order.
Recall that due to Mahatma Gandhi National Employment Guarantee Act (MGNREGA), only the biggest farmers were hurt. Because the laborers of the agricultural sector who worked on low wages, now had a better option of working with more respect and earning more money and social security. Even then, the big farmers had opposed this reform
In this battle of farmer-farmer, what is missing from the scenario, it is really the farmer. He has no voice of his own, he has no power of his own. The farmer of such an exploited country is a spectacle of political wrestling happening from Parliament to the road today.
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