Page 22 - NIS English October 1-15

Cover Story
Agriculture Reforms

into a reality. During his address, the Prime
Minister had said that idea of making Ek Bharat
Shreshtha Bharat, which Sardar Patel dreamt of
with his unification initiative, has been realised.
But India is yet to become a unified market. The
Government started in this direction in a phased
manner. Though the eNAM platform was launched
as early as April 14, 2016, with the Bill now passed
in Parliament, the Government has made its vision
clear that not only the agriculture sector will be
developed on the lines of industry but also farmers
will be free to sell their produces anywhere in the
country at a profitable price like a true owner. So
far, farmers did not have this freedom as ‘One
Mandi One Licence’ regime forced them to sell their
produce in a particular agriculture market which
worked to the unfair advantage of the middlemen
because farmers could not afford to take their
wares back to his village if the middleman offered
un-remunerative price.
MSP: One-and-a-half times of the cost
Confusion is being created that the Minimum 10,000 Farmer Producer Organisations (FPOs)
Support Price (MSP) will be scrapped after these with an investment of Rs 7,000 Crore. These
laws come into effect. However, the truth is FPOs will assist small and marginal farmers in
that the Government, in its effort to double the creating groups for entering into contracts with
income of farmers has been continuously raising the corporates. To ensure that nobody takes
MSP which is now one-and-a-half times the cost undue advantage of farmers, sale, lease or
to farmers. The Government procured 1,870 mortgage of farmers’ land is totally prohibited
Lakh metric tonnes of paddy between 2014 and and farmers’ land is also protected against any
2019 and paid Rs 4.34 Lakh Crore for the same recovery. Also, while the contract is binding on
against the 1,670 Lakh metric tonnes procured the private entity, it is not binding on the farmers.
between 2009 and 2014 for Rs 2.88 Lakh Crore. If the farmer has not taken any advance or any
The incumbent Government has implemented payment then the farmer can cancel the contract
recommendations of MS Swaminathan at any time even after signing it and without any
Commission in deciding MSPs. penalty. If the farmer has accepted any advance

Farmers not to lose right over land or payment, then too he can end the contract at
Another falsehood being spread is that big any time by returning the principal amount on
corporates will capture farmers’ lands. However, which no interest would be payable. However,
the Bills provide that the corporate contact with the private player cannot cancel the contract
the farmers will have no clause regarding the unilaterally and has to make the payout that he
ownership of the land. As a matter of fact, the has agreed to in the contract. Hence, the farmer
Bills will benefit 86 per cent marginal farmers has been protected against all eventualities.
who do not have money to invest in improving To further empower farmers, an effective
their farms. The Government is strengthening dispute resolution mechanism has been provided

20 New India Samachar