On November 19, Prime Minister Narendra Modi announced the repeal of all three agricultural laws. Along with this, he also talked about forming a committee for agricultural reforms. This committee will decide on matters like promoting zero budgeting farming i.e. natural farming, changing the cropping pattern in a scientific manner keeping in mind the changing needs of the country and making MSP more effective and transparent. The Economic Research Team of the country’s largest bank SBI has published a report. In this report, he has given five suggestions regarding agricultural reforms. The Economic Research Team of SBI believes that the following 5 agricultural reforms are necessary.
- Farmers are demanding that MSP should be made mandatory as a price guarantee. Instead, the government can ensure a quantity guarantee clause for a minimum period of 5 years. It makes it mandatory for the production percentage of crops (currently being procured) to be at least equal to the previous year’s percentage (with safeguards in exceptional events like drought, flood etc.).
GDP Growth Project: In FY22, the real GDP of the former Corona will be behind, due to these reasons SBI increased the growth estimate
- Converting the Minimum Support Price (MSP) to the auction floor price on the National Agriculture Market (eNAM). However, this does not completely solve the problem as the current data shows that the average model price in e-NAM mandis is lower than the MSP in all Kharif commodities (except soybeans).
- Efforts should continue to strengthen the infrastructure of the APMC market. According to estimates based on government reports, the monetary loss for cereals due to crop and post-harvest losses is around Rs 27,000 crore. Oilseeds and pulses have suffered a loss of Rs 10,000 crore and Rs 5,000 crore, respectively.
Sensex Target: Sensex may touch the level of 80 thousand by the end of next year, foreign brokerage research firm expressed confidence due to these reasons
- Contract Farming Institute should be set up in India, which will have exclusive powers to monitor price discovery in contract farming. Contract farming has been instrumental in providing producers in many countries access to the supply chain with market and price stability as well as technical support.
- Symmetric Procurement should be ensured across the states. Grain procurement remained asymmetric with minimum procurement in the top paddy producing states like West Bengal (1st) and Uttar Pradesh (II). At the same time, large-scale procurement is taking place in states like Punjab and Haryana, which are not the largest producers.
Get Business News ,, latest India News ,, and other breaking news on share market, investment scheme and much more on Business Khabar. Like us on Facebook, Follow us on Twitter for latest financial news and share market updates.
.