Modi's radical reforms & hostile Opposition
Agriculture is the core of Indian economy. It contributes to around 18% of India's GDP and employs close to 50%, more than any other singular sector in India. There are over 600 million farmers in India, which is close to half of the nation's population. The agriculture allied sectors directly impact the productivity of the other two top GDP contributors, manufacturing and service sectors.
India has seen large scale macro-economic reforms in 90's under the leadership of Prime Minister Narasimha Rao and since then almost all sectors were led into necessary reforms by successive governments. The BJP while in Opposition never stalled these reforms, which are essential for nation's progress. The BJP in Opposition was an enabler for governments which undertook reforms for the growth of Indian economy and employment.
Progressive spirit of the BJP, paired with unwavering conviction to the ideology of 'Nation First', has strengthened this nation and enabled successive governments to take progressive national policies. That is the true spirit of democracy. Elected governments should be empowered and enabled to make national policies and take up reforms to lead the nation towards progress and development.
However, the Opposition parties like the Congress, Communist parties and other regional parties in India today are quite regressive and are desperate to score political gains, through obstructionism and obfuscation. They are willing to stall progressive agriculture reforms, which can lead the small and marginal farmers towards self-reliance and prosperity.
Prime Minister Narendra Modi has been elected for the first term and re-elected for the second, on the promise of transforming the nation with massive reforms. 'Reform, Perform and Transform' is the governance agenda of Modi government.
Modi has courageously undertaken massive agriculture reforms in the recent past. The Central government has followed due process of consultation and discussion both inside and outside the Parliament and made laws accordingly. These new laws can be 'game-changers' for Agriculture sector in India and can empower small and marginal farmers, to possess more options to sell their produce and increase their income. These laws can liberate the farmers from restricted market access and dependence on middlemen, after humongous investment and hard work put in by them, throughout a crop season.
Opposition parties led by Congress, Communist and many regional parties like TMC, SP, NCP, SAD, DMK, RJD, TRS, TDP, YSRCP are trying to obfuscate and mislead few farmer unions with misinformation about the new Agri laws enacted by Modi government.
These parties are trying to fearmonger farmers on issues which are purely imaginary and hypothetical, to arouse insecurity and fear among them. These parties have sponsored, manufactured and organized protests around Delhi and are continuing to escalate the same for their petty political expediency.
The below are some key reasons why these reforms are progressive and why those obstructing them are regressive:
Simple Economics
For any product to get the best market rate, it has to be subjected to real demand and supply. Nothing in the world can permanently be sold or purchased at a price, without demand and supply impacting it.
Agricultural products have to be subjected real time demand and supply of the regional, national and international markets to get the best possible price for the produce. This price can be many times more than what the gullible farmers currently are selling to the middlemen and touts, in the local mandis for decades.
The new laws open the agriculture sector to market factors and ensures the farmers get the best price for their produce. It eliminates multiple middlemen in the system and provides farmers direct access to the market and buyers.
Reforms in marketing of the produce
The agri laws enacted by the Modi government impact the marketing of the Agriculture produce. This is the most critical phase in the entire spectrum of farming. After producing a crop yield, investing into the seeds, fertilizers, pesticides and rigorous hard work, the farmer is left in the hands of middlemen to sell his produce through geographically restricted local mandis. The price of the produce is mostly decided by the middlemen in cahoots with the local traders and corrupt junior government officials.
The new laws unshackle the farmer and allows him to access both online and offline markets anywhere, and directly sell the produce to the highest bidder. This process is scientific, market driven and rewards farmers for his risk and hard work of choosing a crop and producing it, according to the needs of the market.
Small farmer is the worst hit
The small and marginal farmers with small landholding are the worst hit in every crop season. Even if the weather is conducive, all cultivation factors are favorable, and the farmers reap a good harvest, the price they get for their produce eventually is rarely profitable. Many times, it doesn't cover the cost of cultivation.
Just imagine what would happen, if things go wrong and all other factors are unfavorable. Most of the farmers in this scale, have no crop insurance to cover their losses.
The heart-breaking cases of farmer suicides across the nation are a testament to this fact. The farmers at the bottom of the pyramid can only make good fortune, if they pool their resources either in the form of large agri-cooperatives or venture into large scale contract-farming. These farmers will get assured returns, subsidiary income, parallel employment and continue to hold their land as an asset, if the new laws passed by Modi government are enabled and executed.
Millions of poor and small farmers and their families will eventually be rid of mounting debt and will find assuring income and a bright future, with the new reforms.
Agri sector needs huge investments
Indian agriculture sector needs to optimize its true potential and rise to its optimum productivity. This needs huge investments into the full-spectrum of farm-operations. End-to-end agricultural-industrial investments are necessary to ensure the entire life cycle of crop production to be standardized, removing unreliability in return on investment.
Massive investments into research, mechanization, input process, crop management, yield management, warehousing, logistics, branding, marketing and other key result areas is essential.
Lopsided reforms don't work
Narendra Modi has the courage to take risk, even against a possibility of popular back lash, mostly driven by misinformation. That's what a great leader with vision is made of, full of resilience and conviction for greater good. The lop-sided reforms in agriculture sector are corrected and balanced with these new laws.
Input sector of Agriculture was opened up for free market players years back. Successive Congress governments has allowed big businesses to enter seeds, fertilizers, pesticides, feed and other areas of Agri - input industry. However, Congress party lacked vision and courage to take up full scale reforms in marketing the produce, which will ensure farmers prosperity.
Narendra Modi's path-breaking initiatives in enforcing full-spectrum reforms is historic. The result of these bold and necessary reforms will impact the macro-economic might of India and lead this nation to be an Agricultural-Hub for the entire world.
The true potential of Indian farmers and agriculture sector will be unleashed by the new reforms. The future generations will judge these laws on massive prosperity they will bring to those hands who will feed the world, the Indian famers.
(The author is the chief spokesperson of the BJP Telangana State, an organisational strategist & a leadership coach)