Financial Survey hints at a ‘paradigm shift’ in agriculture sector via farm legal guidelines

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The a lot talked about matter ‘fam legal guidelines’ additionally featured within the Financial Survey 2020-21. With the Survey stating that there’s a want for a ‘paradigm shift’ in how we view agriculture.

“There’s a want for a paradigm shift in how we view agriculture from a rural livelihood sector to a contemporary enterprise enterprise. On this context, each manufacturing and post-production in agriculture want pressing reforms to allow sustainable and constant development,” mentioned the Financial Survey.

The Financial Survey 2020-21, authored by a workforce led by Chief Financial Adviser Krishnamurthy Venkata Subramanian, detailed the state of various sectors of the financial system in addition to reforms that must be undertaken to speed up development.

Supporting the three agricultural reforms, the Survey additionally said that the legal guidelines have been designed and supposed primarily for the good thing about small and marginal farmers which represent 85per cent of the overall variety of farmers and are the ‘greatest victims of the regressive APMC regulated market regime’.

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It additional went on to say that the newly launched farm legal guidelines ‘herald a brand new period’ of market freedom which may go a good distance within the enchancment of farmer welfare in India.

The pre-budget doc defended the farm legal guidelines within the backdrop of long-running farmers’ agitation at varied borders of the nationwide capital in search of repeal of those legislations expressing concern that they’re pro-corporate and will weaken government-regulated mandis, additionally referred to as Agriculture Produce Advertising and marketing Committees (APMCs).

“A number of Financial Surveys have expressed concern on the functioning of the APMCs and the truth that they sponsor monopolies. Particularly, Financial Surveys for the years 2011-12, 2012-13, 2013-14, 2014-15, 2016-17, 2019-20 centered on the reforms required on this context,” the survey mentioned.

The solutions on the advertising and marketing of agricultural produce embrace the necessity to present a option to the farmers to promote their merchandise on to a processing manufacturing facility or the non-public sector, improvement of agriculture advertising and marketing infrastructure, modification of the State APMC Acts and the Important Commodities Act to make sure barrier-free storage and motion of agricultural commodities, it mentioned.

The Farmers’ Produce Commerce and Commerce (Promotion and Facilitation) Act, 2020, The Farmers (Empowerment and Safety) Settlement on Value Assurance and Farm Companies Act, 2020 The Important Commodities(Modification) Act, 2020 — are the three key legislations handed by Parliament in September 2020.

“The newly launched farm legal guidelines herald a brand new period of market freedom which may go a good distance within the enchancment of farmer welfare in India,” the survey mentioned.

In response to the survey, the Farmers (Empowerment and Safety) Settlement of Value Assurance and Farm Companies Act, 2020 will empower farmers of their engagement with processors, wholesalers, aggregators, giant retailers, exporters and can present a degree enjoying discipline.

It is going to switch the danger of market unpredictability from the farmer to the sponsor and in addition allow the farmer to entry fashionable expertise and higher inputs. Farmers have been offered enough safety as sale, lease or mortgage of farmers’ land is completely prohibited and farmers’ land can also be protected in opposition to any restoration. The farmers could have full energy within the contract to repair a sale worth of their selection for the produce, the survey added.

The Financial Survey of the earlier yr was tabled by Finance Minister Nirmala Sitharaman within the Parliament amid the continuing farmers’ protest in opposition to the three farm legal guidelines.

The survey, which comes simply forward of the union finances for the brand new fiscal yr that Finance Minister Nirmala Sitharaman is about to current on Monday, additionally forecast a “V-shaped” financial restoration.

(With PTI inputs)

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