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Opposition to Farm Reforms Based on Discredited Economic Model, Says Chief Indian Adviser

© AP Photo / Ajit SolankiThe protest against unemployment, rising inflation and, what they call, the government's anti-people and anti-farmer policies. India (File)
The protest against unemployment, rising inflation and, what they call, the government's anti-people and anti-farmer policies. India (File) - Sputnik International
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A section of Indian farmers has been up in arms against recent agrarian reforms, fearing they will spell an end to the price protection given to their produce and that they will be at the mercy of private procurement agencies. Rahul Gandhi of the main opposition party Congress has also been on a campaign against this legislation.

Chief economic adviser at the Indian Finance Ministry K V Subramanian has scoffed at opposition to recently enacted farm reform legislation, drawing attention to the shortcomings of the existing economic model, which he says undermines the benefits of competitive markets. Small farmers have suffered the most in the existing set up, Subramanian underlined.

"Without the wherewithal to store his produce or sell it elsewhere, the small farmer was left to the (non-existent) mercy of intermediaries. In contrast, the large farmer didn't get adversely affected by the status quo", said Subramanian in a series of tweets on Tuesday.

Subramanian's comments come as thousands of farmers in two major agrarian states, Punjab and Harayna, have hit the streets against this legislation, since parliament took it up for consideration in September.  

Prime Minister Narendra Modi tried to dispel farmers' concerns and said the reforms would help rid India's vast farm sector of antiquated laws and allow farmers to sell to large corporations and retailers like Walmart.

​India enacted three pieces of legislation: the Farmers Produce Trade and Commerce (Promotion and Facilitation) Act 2020, Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020 and Essential Commodities (Amendment) Act 2020, bringing sweeping changes in the farm sector.

The passage of the legislation has also angered one of the oldest allies of the ruling Bharatiya Janata Party (BJP). Shiromani Akali Dal, a regional party predominantly representing the minority Sikh community, first withdrew its representative from the federal ministry and later quit the alliance too over the move.

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