InvestorQ : What could be the economic effect of the Farmer agitations across India?
Anamika Sodhani made post

What could be the economic effect of the Farmer agitations across India?

Angel dcosta answered.
2 years ago

The response to the farmer agitation was relatively tepid as majority of the farmers do realize that the current APMC system for farm products is largely favouring the large landed farmers as they also double as Arhatiyas or commission agents.

As a result the smaller farmers have not really shown enthusiasm in participating in the agitation. Most of the farmers have also benefited from the higher MSP that has been consistently for the Kharif and Rabi crops by the government from time to time.

Earlier, the prime minister himself had assured that the new Farm Bill would not lead to replacement of the MSP system of pricing nor would it affect the APMC mandis in any way. The alternate channel would only be an adjunct to the existing APMC mandi facility.

Even the Union Law Minister, on Monday, assured the farmers of India that they would become more self-sufficient with the passage of the Farm Bill 2020. Government would intervene only where required to stabilize the forces of demand and supply.

It may be recollected that the Bill has already become law as the president, Ramnath Kovind, has given his assent to the bill. He assured that the APMC mechanism would still continue and the alternate market would only be an added feature.

Most farmers are willing to wait for the real test of the new Farm Bill when the actual Kharif output comes into the mandis in October 2020. If it works in their favour, most farmers don’t have any issues with it. Till then the farm agitations are unlikely to pick up steam.