Dec 5, 2020
India’s government is considering to remove some parts of its agricultural reforms after they caused the biggest protests by farmers in years. This decision is planned to be taken as tens of thousands of farmers were out on the streets around Delhi, rallying against three laws that the government says are meant to overhaul antiquated procurement procedures and give growers more options to sell their produce.
Farmers fear the legislation, will eventually dismantle India’s regulated markets and stop the government from buying wheat and rice at guaranteed prices, leaving them at the mercy of private buyers.
Farmer leaders have demanded the government repeal the laws and retain mandatory government purchases, and said that buyers at private markets should pay the same tax as at state-run markets.
Under the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, one of the new laws, private players are allowed to set up wholesale markets where transactions will not attract any kind of tax.
The protests, led by influential farming groups from the grain-producing states of Haryana and Punjab, pose a crucial test for Modi’s ability to reform India’s vast agriculture sector, which makes up nearly 15% of the country’s $2.9 trillion economy and employs around half of 1.3 billion people.
Now the government is open to looking into various amendments and is open to the idea of imposing taxes on the new wholesale markets to keep a level playing field, according to some government.
In case of a dispute between sellers and buyers, the government could also let farmers appeal to a higher court than is currently allowed under the new legislation.