Thread on Farm Laws:

The reforms will benefit the farmer or not? Let's see: Three enactments have done 5 important changes. 1. Trader can buy produce from a farmer outside the APMC 2. Trader can have an oral/written agreement with the farmers. (1/n)

3. Breeches in the agreement will be decided by the SDM/DM. 4. The price of the product will be market-driven, thus between the seller & buyer. 5. The private companies can store/hoard any quantity as restrictions under the Essential Commodity Act have been removed. (2/n)

Now, this new situation will help the farmer? It will help such farmers, rich and powerful who can have equity before the trader in agreement. The poor farmer is left to the mercy of the trader. If aggrieved, the dispute goes finally to the DM. (3/n)

The trader/company is likely to have a 'powerful' lawyer, but the poor farmer mostly has to argue himself. There is NO possibility of appealing to the court. So, it ends there. How, can this be pro-farmer when 86% of the farmers are small farmers? (4/n)

Is there a better way? YES. 1. Allow trading and agreements outside the APMCs, but keep the option of MSP for the farmers so that they have a fall-back. 2. Let the farmers and traders get comfortable in working together and build trust, like in e-choupal. (5/n)

3. As Raghuram Rajan suggested, don't increase the MSP and thus slowly reduce the dependency of the farmer on MSP. 4. Bring e-market where farmers can sell products anywhere in the country on their mobile. 5. Create a regulatory agency for e-agro-marketing. (6/n)

These reforms will take time, but it’s a better way. We can't bring big bang reforms in a sector that involves huge rural employment. It has to be slow & steady. Governing is different from oration. So, next time, think before promising a $5 Trillion economy! (n/n)

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