On Tuesday former governor of Reserve Bank D Subbarao said to speed up the economic recovery, the government needs to build on the positive aspects in the farmer sector, directed by the prospects of favorable monsoon.
The urban economy is still struggling with Covid19 while the rural economy is doing slightly better. The 65 percent of the population is from a rural economy and 25 percent of GDP comes from the rural economy, is proven to be a shield because of the expanded MGNREGA spending… D Subbarao said at a webinar conducted by economic think tank NCAER.
The farmers have financial support from the procurement of Agri produce by the food of India (FCI) and spending’s under the Pradhan Mantri Garib Kalyan Yojana (PMGKY). Besides, the climate is favorable for the agriculture sector.
The positive aspect of agricultural sector gives some hope in this scenario and see how to leverage them as we are near to the total recovery of the economy.
Raghuram Rajan also had the same view as Subbarao, Raghuram Rajan said as the agricultural sector is doing well and this sector influences the Indian economy is a positive way.
The government has been talking about reforms for a long time. They should certainly come up with this reform as it is beneficial for the major part of our economy. If brought in practice Raghuram Rajan added.
The government revised an act, as part of the reform process for the farm sector, to deregulate food items, including cereals, oilseeds, pulses, onion, potato, and edible oil. The act is a six-and-a-half-decade old Essential Commodities Act. The revisions is also for no stock limit to be imposed on any produce, besides deregulating sale and production of food products
The government last month approved an ordinance in agriculture produce outside the notified APMC mandis, to allow barrier-free trade.
An ordinance proposes, the purchase of farm produce undertaken outside the mandis and to bar state governments from imposing taxes on sales and also give farmers to sell their products at remunerative prices. The ordinance is Farming Produce Trade Commerce (Promotion and Facilitation) Ordinance, 2020.
The District Collectorate and the Sub Division Magistrate (SDM) will deal with any conflicts arising from transactions, within 30 days and not in the jurisdiction of civil courts.
The farmers have restrictions for selling agri-produce outside the mandis. And are allowed to sell their agriculture produce at 6,900-odd APMC (Agriculture Produce Marketing Committees) mandis spread across the nation currently. Hoping the economy could recover soon.
