On Friday morning, farmers groups from Punjab, Haryana and Uttar Pradesh continued their protests on Delhi’s borders against three new agri...
On Friday morning, farmers groups from Punjab, Haryana and Uttar Pradesh continued their protests on Delhi’s borders against three new agricultural laws, contending that they will usher in changes that leave farmers at the mercy of large corporations. But even if the government were to cancel these new laws, the many problems faced by India’s farmers are unlikely to be solved.
The standoff between the farmers and the government reflects deeper structural problems in a key sector that contributes about 15% of India’s Gross Domestic Product. It shows that market forces are not operating in sync with rural infrastructure development, ecological reforms or political will.
At the heart of the protests is the fear that the new laws will result in the dismantling of the system under the government procures key crops from farmers at a minimum support price.
The government, for its part, says that these laws will allow any buyer to purchase crops directly from the farmer, thereby eliminating the middleman. Creating a pan-India open market, the authorities contend, will encourage competition and actually ensure higher prices for the farmers.
But so far, the government has done nothing to guarantee a fixed minimum support price, which is why the protests have continued.
Key challenges
To those who observe Indian agriculture, some key...
