Agricultural Reforms in India

Abstract

Issue: Jan-Feb 2021 This paper explores the recent farm laws passed by parliament and their impact on farmers’ income.  The laws collectively offer greater freedom to cultivators to sell their produce at better prices and allow farmers to enter into contracts with processors, aggregators, wholesalers, large retailers and exporters at mutually agreed crop prices. The laws also encourage private investment into storage and warehousing by removing stockholding limits. To make these reforms work, some conditions may have to be fulfilled and imperfections and concerns have to be addressed, which are elaborated in the paper. Finally, the paper focuses on other agricultural reforms to improve the supply-side factors, such as rationalization of subsidies, land reforms, use of technology, strengthening institutions and governance, and improving rural infrastructure.