Monday, November 22, 2021

India repeals the 3 Farm Laws

Prime Minister Narendra Modi recently repealed the 3 Farm Laws that have been a point of controversy for the Central Government.

The 3 farm laws collectively promised farmers profits by selling their produce in the free market, which was heavily constricted and controlled by the government through Minimum Support Price (MSP) and government-controlled wholesale markets. Loosening or removing these controls would've caused instability in the market for a few months, but they were expected to even-out and reach a equilibrium price like a free market is expected to.

However, the farmers, especially those from the northern states of Haryana and Punjab, where farmers held much bigger areas of land than those in the rest of the country, were not happy with the laws as they feared price dictation and control by companies.

The article linked describes why this was a missed opportunity for the Indian Government to finally improvise and urbanize the farming sector of the nation, but because of some communication and implementation missteps, the government faced the wrath of the largest sector of the economy and had to alas withdraw the laws.

Article link: https://www.business-standard.com/article/economy-policy/withdrawal-of-farm-laws-is-a-missed-chance-for-a-progressive-indian-society-121112200123_1.html

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