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.
The opposition to the seminal reforms in agriculture is based on a discredited economic model that undermines the benefits of competitive markets – a model relying on the misguided tryst with socialism that never delivered India's tryst with destiny. 1/4 https://t.co/Z5Yw4zZVRQ
— K V Subramanian (@SubramanianKri) October 6, 2020
Toxic growth of vested interests around APMC monopolies has perpetuated the ultimate irony where every political word eulogising the unsuspecting small farmer only honey coated the poison pill delivered to him through every political deed that strengthened vested interests. 3/4
— K V Subramanian (@SubramanianKri) October 6, 2020
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.
