On Friday, when Union Ministers and Farm Union leaders are set to meet in Delhi for the ninth time to reach a consensus, the international financial institution has stated that the new farm laws are potential and that it can reform the Indian agricultural system. It is known that farmers have been protesting in the national capital demanding that the Centre totally repeal the three farm laws. The farmers fear that the laws passed in September 2020, would let them lose their bargaining power, make them vulnerable to potential bulk buyers and that MSP would be removed. On the contrary, the Centre has assured farmers that the new farm laws would benefit them as they would get better income by dealing with large firms instead of wholesale markets monitored by the government.
“We believe the farm bills do have the potential to represent a significant step forward for agricultural reforms in India. The measures will enable farmers to directly contract with sellers, allow farmers to retain a greater share of the surplus by reducing the role of middlemen, enhance efficiency and support rural growth. However, it is crucial that the social safety net adequately protects those who might be adversely impacted during the transition to this new system,” Gerry Rice, the IMF spokesperson told media in Washington.
