Farmers haven't fully understood farm laws & its potential to increase income: NITI Aayog

Farmers agitating across states have not fully understood the Centre's new farm laws, said Niti Aayog Member (Agriculture) Ramesh Chand, asserting that these legislations have the potential to increase farm income in a big way. He said that the motive of the new farm laws is exactly the opposite of what the farmers have understood them to be. 

“The way, I am reading these farmers, who are protesting, it looks like that they have not fully or properly understood these three laws. If these new farm laws are allowed to be implemented, there are very high chances of a big increase in income of the farmers and in many states, it may even double,”  he told PTI.

Elaborating further on farmer contentions, the Niti Aayog member said farmers believe that the Essential Commodities Act (ECA) has been removed and full freedom has been given to stockists and black marketers when that is not the case.

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“If you look at what actually has been done is, there is a modification done in the Essential Commodity Act. According to that modification, a criterion has been laid when Essential Commodities Act can be imposed, and that is if there is a 50% increase in prices of cereals, oilseeds, and pulses, then it can be imposed,” Chand explained. “Or if there is a 100% increase of the price of onion and potato then Essential Commodities Act can be imposed,” he added.

Allaying fears of protesting farmers about contract farming, Ramesh Chand said contract farming is different from corporate farming, which is not allowed in India. The Niti Aayog member asserted that the new laws have been tilted in favour of farmers.

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Frequent ban on exports explained

Speaking on the frequent ban on exports of onion, he said whenever prices go beyond a band, the government intervenes. Chand said in some situations, the government protects the interests of farmers by halting imports, and sometimes, it protects the interests of consumers by banning exports.

“We can’t allow onion prices to go to Rs 100 that too when farmers are not selling onions. 60-70% of onions reach the market in the month of April and May and it does not reach the market at this time,” he said.

Chand argued that by imposing a ban on exports, the government is not doing something terribly wrong to the producers and that it does not happen under normal circumstances. 

Thousands of farmers, mainly from Punjab and Haryana, have been strongly opposed the three new laws, claiming that it aims to dismantle the minimum support price system.

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