Dinesh Kamath's Editorial 'Are the government’s policies pro or anti farmer?' that was published in Newsband

Are the government’s policies pro or anti farmer?

The Centre has taken a decision to waive import duty on wheat. Is waiving off import duty on wheat the right way to tame inflationary pressures as far as supply of wheat is concerned? How will this move impact farmer's financial health?

Both Uttar Pradesh and Punjab are large wheat-producing States. Farmer unions have warned of dumping of wheat stock in India at a time when the minimum support price is higher than international prices. Fiddling too often with wheat import duties sends mixed signals to farmers and traders, though the latter group will be pleased with the duty-free regime.

A longer-term action plan is needed to increase India’s wheat yields. The government first reduced the import duty on wheat from 25 per cent to 10 per cent in September this year and now has scrapped it. While tonnes of wheat is rotting in FCI godowns and has been declared unfit for consumption, what is the need for importing wheat and scrapping duty? This will further deteriorate the economic position of the farmers. In this election year, the government has placated voters at the farmer’s cost. The Punjab Government should oppose the import of wheat. The retail prices of wheat and flour rose because of the mismanagement of the FCI and other related departments. The farmers are already affected by the demonstration policy. The import duty waiver may be a further thunderbolt in their lives.

Government should import technology first to store wheat. Then import wheat when international prices are low and store them to be used when the Indian wheat price goes up. This way the farmers will not be affected and public will get wheat at reasonable cost. The Government can make some profit also.

Another thing is we need to spruce up our production at any cost to refrain from high cost that hits everyone. Reducing the import duty will lubricate wheat imports. At the same time vast land has been put under wheat cultivation for the rabi season. If everything goes well there will be flooding of wheat in the market and create price problem again. After two years of drought, current rabi season gains momentum on wheat cultivation. The government has to decide the right quantum of wheat imports to balance the supply along with rabi season output for farmers to get right price on the staple crop. Nevertheless the government should see that the demonetised move is not affecting the rabi season operations and save farmers from such distress.