Gita Gopinath Says New Farm Laws Have Potential To Increase Farmers' Income

Gita Gopinath on new farm laws: Chief Economist at International Monetary Fund, Gita Gopinath said that the controversial agricultural laws recently enacted by the government of India have the potential to increase farmers' income. However, she added that the farmers need to be provided with a social safety net by the centre.   

Gopinath said that multiple areas in Indian agriculture need reforms including infrastructure. "These particular farm laws were in the area of marketing. It was widening the market for farmers. Being able to sell to multiple outlets besides the Mandis without having to pay a tax. And this had the potential to raise, in our view, farmers' incomes". 

The new agricultural laws announced by the government in September 2020 claim to be a boast to the cultivators in India as they can sell their produce directly to the consumers without a middleman. This, however, hasn't sat well with most farmers of the country as many have been protesting against the government's decision since then. 

Gopinath in her statement made on the farm laws added that the reforms put forth by the government will need transition cost meaning the effects of it on the farmers. She said, " One has to make sure and pay close attention that it's not harming vulnerable farmers." 

"Clearly, there is a discussion right now and we'll see what comes out of it," she said." 

It has been close two months farmers of India mostly from Punjab, Haryana and Uttar Pradesh have been sitting ar protests at Singhu border near Delhi and other parts of the country. After several meeting with the government, their demand to repeal the new law has not been met. The farmers have been asking the government of a legal guarantee that they will get Minimum Support Price (MSP) for their produce.