{"id":72,"date":"2020-05-04T17:56:05","date_gmt":"2020-05-04T17:56:05","guid":{"rendered":"https:\/\/blog.kisansabha.in\/?p=72"},"modified":"2020-05-09T08:33:58","modified_gmt":"2020-05-09T08:33:58","slug":"govt-plans-major-agricultural-reforms-post-coronavirus","status":"publish","type":"post","link":"https:\/\/blog.kisansabha.in\/index.php\/2020\/05\/04\/govt-plans-major-agricultural-reforms-post-coronavirus\/","title":{"rendered":"Govt plans major agricultural reforms post-coronavirus"},"content":{"rendered":"\n<p>The PM suggested these reforms at a high-level review meeting on the agricultural sector, which was also attended by finance minister Nirmala Sitharaman, home minister Amit Shah, agriculture minister Narendra Singh Tomar, and senior officials.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized is-style-default\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/blog.kisansabha.in\/wp-content\/uploads\/2020\/05\/5.png\" alt=\"The Covid pandemic has pressured farm incomes, upending the farm-to-fork supply chain, despite full exemptions to the farm sector.\" class=\"wp-image-73\" width=\"774\" height=\"379\" srcset=\"https:\/\/blog.kisansabha.in\/wp-content\/uploads\/2020\/05\/5.png 934w, https:\/\/blog.kisansabha.in\/wp-content\/uploads\/2020\/05\/5-300x147.png 300w, https:\/\/blog.kisansabha.in\/wp-content\/uploads\/2020\/05\/5-768x377.png 768w\" sizes=\"(max-width: 774px) 100vw, 774px\" \/><figcaption>The COVID pandemic has pressured farm incomes, upending the farm-to-fork supply chain, despite full exemptions to the farm sector.<\/figcaption><\/figure>\n\n\n\n<p>Outlining an ambitious post-pandemic agenda for agricultural reform, Prime Minister Narendra Modi on Saturday asked his top ministers and bureaucrats to start working on a new set of reforms to cut down on archaic regulations, raise farm-gate prices, unify domestic markets as well as integrate the farm economy into global value chains.<\/p>\n\n\n\n<p>These have been demands by key farmer groups as well as a range of economists and agricultural experts over the years.<\/p>\n\n\n\n<p>The PM suggested these reforms at a high level review meeting on the agricultural sector, which was also attended by finance minister Nirmala Sitharaman, home minster Amit Shah, agriculture minister Narendra Singh Tomar and senior officials. The meeting was in a series of reviews the PM is undertaking on key sectors, in the backdrop of the national lockdown which has adversely affected the economy.<\/p>\n\n\n\n<p>The PM sought further reforms in agricultural marketing, which is a reference to the mandi system that controls buying and selling of farm produce, among other issues. He said he was not averse to bringing \u201cappropriate\u201d new laws or changing old ones to firmly integrate farm markets across the country so that cultivators and traders can transact without restrictions. \u201cEssentially, he wanted one nation, one market,\u201d said a top official familiar with the deliberations of the meeting.<\/p>\n\n\n\n<p>The PM also held a \u201cgeneral discussion\u201d on genetically modified crops, a tricky subject given the widespread opposition to transgenics in the country. \u201cIt was a discussion that evaluated the various advantages and disadvantages of transgenics. The PM wanted updates on options to raise productivity, while lowering farming costs,\u201d said the official quoted above. The PM stressed last-mile dissemination of technologies developed by agricultural research bodies.<\/p>\n\n\n\n<p>The Covid pandemic has pressured farm incomes, upending the farm-to-fork supply chain, despite full exemptions to the farm sector. A nationwide curfew caught farmers by surprise on March 24. During its the initial days, labour shortage and empty wholesale markets led farmers to dump new harvest, especially perishables.<\/p>\n\n\n\n<p>Although agriculture accounts for 16.5% of India\u2019s gross domestic product (GDP), nearly half the population in the country depends on a farm-based income, underscoring the sector\u2019s importance for livelihoods.<\/p>\n\n\n\n<p>The big focus on Saturday was on new ideas to intervene in the agriculture marketing system so as to make them freer, a second official said. Despite several model laws at the federal level \u2014 which serve as guidance for states \u2014 trade in agricultural commodities remains fettered by state-specific legislations, which prevent farmers from freely accessing food markets.<\/p>\n\n\n\n<p>The discussions are a nod to a renewed farm agenda, which may, in all likelihood, see fresh legislations being moved in Parliament. \u201cThe honourable prime minister wants integrated markets. One state should be agreeable with another state as far as agricultural policies go,\u201d the second official said.<\/p>\n\n\n\n<p>The Indian agricultural market is fragmented. Each state has distinct regulations. Restrictions on where farmers can sell and to whom, as mandated by the Agricultural Produce Market Committee Acts, in various states, continue to thwart farm trade.<\/p>\n\n\n\n<p>The second official said a new legal framework governing investment and technology in agrarian economy could be necessary and the \u201cPM acknowledged that\u201d.<\/p>\n\n\n\n<p>\u201cThe focus was on making strategic interventions in the existing marketing ecosystem and bringing appropriate reforms in the context of rapid agricultural development,\u201d an official statement said.<\/p>\n\n\n\n<p>K. Mani, an economist with the Tamil Nadu Agricultural University, said the first step for these ideas to be successful was to have an interstate council such as the one for the Goods and Services Tax.<\/p>\n\n\n\n<p>Under a decades-old system, each state has scores of tight market zones to serve as exclusive buyer-seller platforms for an area. This system of \u2018mandis\u2019 or markets is both a physical and at times fiscal barrier, preventing seamless transactions of goods.<\/p>\n\n\n\n<p>The second official cited above said the prime minister wanted a massive scaling up of a federal e-commerce platform for farmers and traders, known as the Electronic National Agricultural Markets or the e-NAM app. The PM\u2019s push for the app came in the backdrop of agriculture minister Tomar saying, separately, that more than 166000 registered farmers across the country are now selling their produce by transacting from home and praticising social distancing, with nearly half of the country\u2019s 1500 major farm-end commodity markets now going online. This is the first time wholesale food markets in large states, such as Uttar Pradesh and Karnataka, have joined the digital supply chain.<\/p>\n\n\n\n<p>Farmers on the e-NAM app can strike deals for their harvests remotely by first uploading pictures of their samples and then getting these samples scientifically checked for quality by remote assayers, without having to move entire truck loads to physical markets. The e-NAM platform now has a total of 785 markets online.<\/p>\n\n\n\n<p>Saturday\u2019s review was preceded by recommendations earlier this year from a committee of secretaries tasked with reviewing the agriculture sector. It identified persistent trade barriers within the mandi system that continue to hurt producers.<\/p>\n\n\n\n<p>The government could consider a \u201csingle mandi tax for the country\u201d and \u201cremoval of levies\u201d charged to traders and farmers when farm goods are sold from one state to another, known as interstate mandi tax, a third official said.<\/p>\n\n\n\n<p>\u201cMaking farm marketing reforms work is similar to opening FDI in manufacturing. That\u2019s how big it is. It\u2019s after all about prices for producers,\u201d said S Mahendra Dev, director and vice-chancellor of the Mumbai-based Indira Gandhi Institute of Development Research. Dev formerly headed the Commission for Agricultural Costs and Prices, the federal body that fixes minimum support prices.<\/p>\n\n\n\n<p>Ushered in during the 1960s, most Agricultural Produce Market Committee Acts \u2013 each state has its own law \u2014 require farmers to only sell to licensed middlemen in notified markets, usually in the same area as the farmer, rather than directly to buyers elsewhere. These rules were meant to protect farmers from being forced into distress selling. But over time, they have spawned layers of intermediaries, spanning the farm-to-fork supply chain. This results in a large \u201cprice spread\u201d or the fragmentation of profit shares due to the presence of many middlemen.<\/p>\n\n\n\n<p>Saturday\u2019s meet also discussed possible model land tenancy laws. Outdated land tenancy laws in many states mean that tenant farmers don\u2019t get access to farm loans because they don\u2019t own land. Tenancy reforms can lead to more contract and organised farming without affecting \u201cadverse possession\u201d or ownership of land.<\/p>\n\n\n\n<p>\u201cOne reason why agriculture has suffered is that we have not liberated the sector as we have done for the industry. Without compromising food security, you have to open up. The government cannot assume it knows everything. I think that\u2019s what the government has realized now,\u201d said Manoj Kumar Panda, the RBI chair professor at the Institute of Economic Growth, University of Delhi.<\/p>\n\n\n\n<p>Bureaucrats suggested the creation of commodity-specific administrative bodies and the promotion of agriculture clusters as well as contract farming to boost exports.<\/p>\n\n\n\n<p>Source: Hindustantimes<br>Link:<a href=\"https:\/\/www.hindustantimes.com\/india-news\/govt-plans-major-agri-reforms-post-corona\/story-EISmhgFEzDaI4386TorfwM.html\">https:\/\/www.hindustantimes.com\/india-news\/govt-plans-major-agri-reforms-post-corona\/story-EISmhgFEzDaI4386TorfwM.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The PM suggested these reforms at a high-level review meeting on the agricultural sector, which was also attended by finance minister Nirmala Sitharaman, home minister Amit Shah, agriculture minister Narendra Singh Tomar, and senior officials. Outlining an ambitious post-pandemic agenda for agricultural reform, Prime Minister Narendra Modi on Saturday asked his top ministers and bureaucrats [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[13],"tags":[4,6,12,7,16],"class_list":["post-72","post","type-post","status-publish","format-standard","hentry","category-support-to-farmers","tag-covid-19","tag-farmers-of-india","tag-government-of-india","tag-lockdown","tag-pmo-india","entry"],"_links":{"self":[{"href":"https:\/\/blog.kisansabha.in\/index.php\/wp-json\/wp\/v2\/posts\/72","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.kisansabha.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.kisansabha.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.kisansabha.in\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.kisansabha.in\/index.php\/wp-json\/wp\/v2\/comments?post=72"}],"version-history":[{"count":5,"href":"https:\/\/blog.kisansabha.in\/index.php\/wp-json\/wp\/v2\/posts\/72\/revisions"}],"predecessor-version":[{"id":262,"href":"https:\/\/blog.kisansabha.in\/index.php\/wp-json\/wp\/v2\/posts\/72\/revisions\/262"}],"wp:attachment":[{"href":"https:\/\/blog.kisansabha.in\/index.php\/wp-json\/wp\/v2\/media?parent=72"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.kisansabha.in\/index.php\/wp-json\/wp\/v2\/categories?post=72"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.kisansabha.in\/index.php\/wp-json\/wp\/v2\/tags?post=72"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}