vijayk wrote:
So we should just close our eyes to all the developments of mechanized farms/output improvements/technology and private capital that is changing farmer's life for better! Would that help farmers of future? So we blackmail Govt. to increase MSP for 6% of farmers every year while thousands keep dying. Is that the only alternative we want?
While other countries can produce more rice/wheat or switch to other competitive products at a lost lesser price, we should just stick to our guns and bankrupt ourselves, procure all at higher prices than international markets even if we just throw it away and just ban imports/exports.
This argument of private vs public is what we were doing in 90s. If we allow private airlines, what about AI/IA even if they suck and can't service/expand/run in losses!
I don't think the new laws will improve mechanization. Also PB/HRY ( for sure ) and maybe Western U.P. have more tractors/combined harvesters than required. Higher output will be a problem. We have a problem of plenty. Private capital helps for sure ( the govt. ) in finding investments required to upgrade agricultural infrastructure especially with a changing palate ( due to urbanization ). I think this is the main intent of new laws.
Yes other countries are competitive and will always be compared to us. Our land holding is small and there are too many people dependent on this industry than what can be gainfully employed. While efficiency/competitiveness is good to have, ultimately alternate professions will have to be created. Given the breadth of Indian economy and current over-abundant labour supply, there is already a mismatch.
MSP is only a name. The govt could create alternate support mechanisms like linking prices to global future and insure farmers against low prices. Simply saying private industry will take care of farmers is not going to cut.
Here is an example of how Europe does it. Surely Europe has a well developed private sector and infrastructure. Still they choose to offer income support via public sector.
https://ec.europa.eu/info/food-farming- ... plained_en
Farming is a risky – and often costly – business. Agriculture is more dependent on the weather and climate than other sectors. There is an inevitable time gap between consumer demand and farmers being able to increase supply as growing more wheat or producing more milk takes time and investment.
EU farmers are under pressure from the increasing global trade in food products and trade liberalisation. Developments on global markets increase competition, but also create new opportunities for the European agri-food sector. Additionally, globalisation and fluctuations in supply and demand have made agricultural market prices more volatile in recent years, adding to farmers’ concerns.
These business uncertainties in agriculture justify the important role the public sector plays in ensuring a safety net for farmers’ income.
Private/public airlines is a very bad example for your point, though I get your intent. These airlines failed with too much government regulation ( and taxation ) in this sector though supposedly this sector was open to competition.
Prices: Answering from a pure economic perspective. Food falls under inelastic pricing region. Long story short, what it means is that to turn a profit, the only option is to raise prices. So food will not be cheaper at hands of those who work for a profit motive. Also given steady demand, it's a great investment for any firm that allows it to control prices. Do I think this will happen?? Probably not but there is a clause in amendment to Essential Commodities Act which allows govt to intervene in stock limits held by private traders ( i.e. hoarding ) only if the price rise is > 100% of a 5 year average or last year's price. This acts as a strong price support mechanism for private traders, so what is wrong if farmers ask for the same? Why the double standards?
Stock limits -> 100% price rise permitted
http://egazette.nic.in/WriteReadData/2020/222038.pdf
any action on imposing stock limit shall be based on price rise and an order for regulating stock limit of any agricultural produce may be issued under this Act only if there is— (i) hundred per cent. increase in the retail price of horticulturalproduce; or(ii) fifty per cent. increase in the retail price of non-perishableagricultural foodstuffs,over the price prevailing immediately preceding twelve months, or average retailprice of last five years, whichever is lower
Inelastic demand( boring ) ->
https://www.khanacademy.org/economics-f ... supply-cnx
vijayk wrote:
All these can be worked out ... This Govt. has been willing to listen and keep changing GST rules. Reduced many rates. Improved refund system.
They improved a lot of other laws as they went along
Only argument from farmers is this:
We are not willing to list out our concerns or even tell what clauses have problems with ... REPEAL, REPEAL, REPEAL ... Otherwise we will block highways and destroy India. I am afraid that is not going to work people of India.
Again hyperbole. Only once has a highway been blocked ( KMP - during the last tractor rally rehearsal ). As someone pointed out, daily life in NCR region is not affected. Plus it is government's perogative to provide a suitable place that allows for peaceful protests. You surely saw U.S. Capitol protests where protesters are regularly allowed to gather irrespective of the agenda. I have seen protests in heart of major North American cities and a majority of them are peaceful.
Delhi Police instead offered Burari open jail - hardly a place that befits our image as the world's largest democracy. We can do better on both terms - managing dissent and better laws.
