Attention Economy


Wednesday, February 3, 2021

Reforms are Hard to Undertake in a Democracy

To an economist, the proposed reforms sound quite reasonable:
 
Why Indian farmers are so angry about the Modi government’s agricultural reforms
https://theconversation.com/why-indian-farmers-are-so-angry-about-the-modi-governments-agricultural-reforms-154428
Bhavani Shankar (Professorial Reseach Fellow in Food Systems and Health, University of Sheffield) notes:
“A set of three complementary bills was rushed through parliament by the Modi government in September 2020. The first seeks to erode the role of the regulated mandis in marketing farm produce by allowing parallel trade, including electronic trading, outside the mandi system within and across states.
The second loosens the restrictions on private sector storage and stocking of produce, allowing restrictions only in case of strong price spikes when hoarding becomes a strong concern.
The third bill sets up a framework for direct formal contracting between farmers and the agribusinesses that buy from them”.
 
Also, protesting farmers apparently want the right to pollute freely:
This and a set of other demands, ranging from the cancellation of penalties for crop residue burning that contributes to air pollution, to enhancements to energy subsidies [diesel subsidies], have now also been added to the farmers’ core demand to cancel reforms”.
 
 
More reforms needed in agriculture, not less
https://www.deccanherald.com/opinion/comment/more-reforms-needed-in-agriculture-not-less-925403.html