New Delhi, December 17
Several economists in a letter to the Union Minister of Agriculture, NS Tomar, have expressed serious concern about the recent agricultural laws. They agreed with the need to improve the agricultural marketing system, but stated that these laws did not serve that purpose, as the laws were based on erroneous assumptions.
Economists gave five reasons why the three laws were fundamentally harmful to small farmers. First, they said, the primary role of states in regulating agricultural markets was a flawed approach because local machinery was more accessible and accountable to farmers. Second, the laws created a virtually unregulated market in the “commercial area” parallel to the APMC shipyards. While there were mechanisms in APMC’s regulated markets to avoid market manipulation, there were none in the unregulated “business areas.”
Third, the daily auctions at APMC’s market shipyards establish the reference prices. Without these, fragmented markets could pave the way for local monopolies, as in Bihar after the repeal of its APMC Law in 2006.
Fourth, the huge asymmetry between small farmers and companies would lead to unwritten agreements with no recourse for farmers. Fifth, the consolidation of agricultural value chains would lead to the ‘win or get out’ dynamic as in other countries, driving out small farmers, small traders and local agricultural enterprises. Therefore, modifying some clauses would not be enough to address farmers’ concerns.
The signatories include Professor Rajinder Chaudhary and Professor Surinder Kumar (ex MDU, Rohtak), Professor RS Ghuman (Professor at Eminence, GNDU, Amritsar), Professor Kamal Nayan Kabra (former Institute of Social Sciences, New Delhi) , Professor D Narasimha Reddy (ex Univ of Hyderabad), Prof KN Harilal, (Center for Development Studies, Thiruvananthapuram,) Prof Arun Kumar (Institute of Social Sciences), Prof
R Ramakumar (Tata Institute of Social Sciences) and Prof. Vikas Rawal and Prof. Himanshu (JNU). – TNS
