Dinesh Kamath's Editorial 'Agri-reforms are essential' that was published in Newsband

Agri-reforms are essential

There is a hefty hike in the minimum support prices (MSPs) for the kharif summer crop. The Commission for Agricultural Costs and Prices, while making calculations, it relied on estimates of input costs actually paid by farmers and the imputed value of unpaid family labour engaged in the field.

All in all, the announcement is an olive branch to farmers who over the past year spearheaded widespread protests over the rural distress. With less than a year to go for the general election, the NDA government has come up with this move.

Niti Aayog would work with the Centre and States to put a fool-proof mechanism in place so that farmers get adequate remuneration if market prices slip below the MSP. Rural incomes may rise from this farm-friendly gesture,

But simply raising MSP is of no use as the middlemen never pay MSP to farmers. Create a system that will make government and farmers groups get opportunity to export rice because if the middlemen exports it means they are recycling the permit three or more times.

Agricultural reforms are no doubt essential but a hike in MSP was overdue. Shifting the focus from high water consuming crops like paddy is also needed. When it comes to increasing MSP all kinds of analysis is done to measure the impact on consumer inflation and the budget. But we seem to take in stride all mega scams and bad loans by industrialists that run into lakhs of crores. The target of the current government to double farm income by 2023 is laudable regardless of whether it results in electoral benefits. In fact all major parties must pledge their commitment to realizing this goal and make it apolitical for the good of the nation.

If the NDA had given a promise in its political manifesto before the 2014 election that it would ensure 150% return to farmers, then it is high time it keeps that promise. The 'dispute' over timing is because those who oppose BJP might feel that this is a 'political ploy'. But, that could be only partially true because in the end, the farmers are getting benefitted and the pledge is redeemed. It can't be anybody's argument that only the BJP should not exploit even legitimate avenues to further its poll prospects, can it? The second is about 'farmer distress'. The doublespeak of the opposition is evident when they beat BJP with the 'farmer suicide' stick and also criticize the MSP hike in the same breath! If the hike is to be criticized, then was BJP's action 'soon after assuming office in 2014' praised? If not, isn't it sanctimonious?

The bane of Indian farming is that its fate is determined and decided by people remotely associated with ground realities of marginal and big farmers. This might lead to the latest round of MSP hike and loan waivers not serving its intended goal.

Bit is it possible to bring the agricultural reform in one day? Not really, It is a gradual process and government already has made road map for the same ( like modernization of agricultural practices, setting up e-haat etc) but the utmost requirement to increase the farmer income is to give better MSP.

But beware of one thing. Inflation is edging close to the red line of 6%. A weakening rupee will be a negative factor, as will oil prices. The government needs to be cautious.