Stimulus for the rich, begging bowl for farmers

Context: The recent fiscal stimulus and agricultural reforms are biased against the farmers and will lead to un-regulated private domination.

Critique of Government’s steps:

• Withdrawal of social welfare system: Economic ideology indicated by the government which removes all protection for the farmers be it MSP of procurement, is disappointing.

• Distant belief of trickle down: The hope of India Inc. having a ‘multiplier’ or ‘trickledown effect’ is too distant for the farmers to be waiting amidst the pandemic.

• Excessively private-tilted policies :

• While the govt. favored corporates with tax reduction but ignored the immediate aid to the farmer.
• The role of famers is being ignored as an important element in achieving food sovereignty. 

• Neglecting governments role: 

• The govt. declaring that it has no business being in business is a falsified assumption. 
• Govt.’s role in bolstering agriculture sector and managing demand side economic is crucial to help the vulnerable sections of the society.

• One-size fits all approach: Agriculture being a state subject need concurrence of state governments; however, govt. action ignores local conditions:

• For instance, PM-KISAN excludes tenant farmers.

• Furthering inequalities : Corporates can make billions in the middle of a Covid-19 pandemic, while millions of businesses, agriculturalists, cottage industries, ancillary industries and others are being ignored 

Way Forward:

• Synergised efforts: are needed by both private and public sector in order to deliver sustainable economic development.

• Protect the farmers: 

• The Shanta Kumar committee noted: the only 5.8% of the eligible famers receive MSP.
• Improving MSP systems and procurement through FPOs will increase their market power.
• Shifting the focus from land policies solely to production policies.

• Cooperation with states: Some state should be allowed to undo labour laws and cooperate with them in agricultural reforms too.

Anecdote: “all animals are equal, but some are more equal than others.” —George Orwell on inequalities.