New Farm Bills will be a game changer for southern states leadership in Agriculture: CII
Coimbatore: The Confederation of Indian Industry (CII) has chimed in on the furore against the farm bills. Though only an industrial body, it has lent it’s voice against the farmers who are striking for the last 20 days all over the country.
In a press release the CII said, “The agricultural sector is poised to gain manifold from the path-breaking reforms announced by the Government recently, together with the other policy support provided, to traverse decisively forward towards ‘One Nation, One Market’. This is a significant step and CII believes that the new farm bills will be a game changer for Southern States leadership in agriculture and related sectors. In South India, Agriculture is a high priority sector in terms of meeting national demand and sustenance of farmers.Some of the main crops cultivated in South India include paddy, sorghum, pearl millet, pulses, sugarcane, cotton, chilli and ragi.
This critical sector of the Indian economy has indeed received a welcome boost, and with larger investments, adoption of technology and digitalisation and robust partnerships, it is possible to envisage a new era of next generation agriculture that will raise farmer incomes and trigger a virtuous cycle of progress and prosperity. Coupled with the amendment to the Essential Commodity Act and legal framework around contract farming, the marketing reform agenda will help drive up investment and modernization of the food supply chain.
The growth will further be driven by a positive production outlook for kharif production. As per First Advance Estimates for 2020-21 (Kharif), record food grain production of 144.52 million tonnes is estimated. The increase in production is driven by increase in acreages for the key Kharif crops, an increase of 4.51% over the previous year and a good monsoon. Horticulture production at 320 million tonnes is estimated to be 3.13% higher than the previous year. Additionally, production of cash crops like sugarcane, cotton, spices, coffee are also expected to be robust.
Satish Reddy, Chairman, CII Southern Region said that South India has a rich ecosystem supported by a vibrant private sector which would help the agriculture sector to grow manifold in the context of new reform measures announced by the Government of India.These reforms will create the right enabling environment for market and investment-led agricultural growth, and increased income generation opportunities for farmers. The reforms will also give great impetus to investment in extension services to the farmers to further improve productivity and returns.
C K Ranganathan, Deputy Chairman, CII Southern Region said that the new laws will help transform the sector and more importantly help augment farmers’ incomes. Creation of an additional ecosystem where the farmers and traders enjoy the freedom of choice relating to sale and purchase of farmers’ produce will help facilitate remunerative prices through competitive alternative trading channels.
“The Agriculture trade promotion and facilitation Act will help farmers do barrier free trade across the country without any hitch on permit, cess, entry tax etc. In fact, our state has amended free trade within the state long back and now farmers and traders will be waived of the Market cess and commissions that gives good relief to them. The apprehensions raised on MSP have been cleared by our Hon’ble PM and there is clarity that the procurement and support price will continue. The Act on Contract Farming enables even the FPOs and farmer groups to enter into an agreement with the buyer and creates opportunity for assured incomes. In short a new renaissance is on the anvil to farmers and the farming sector in India”. AP Karuppaiah, Chairman, Tamil Nadu Banana Producer Company Ltd. and Mr G. Ajeethan, General Secretary, Tamil Nadu Banana Producer Company Ltd.
CII is facilitating private sector engagement in agriculture under its Business Service unit for FPOs which aims at capability building of FPOs and forging market linkages. 9 value chains, namely rice, maize, soybean, pulses, banana, potato, tomato spices and red chilli have been prioritized under the program and 11 companies have already signed up to engage with the FPOs. Under the program over 50,000 farmer families are expected to be impacted by 2021 and nearly 200,000 farmer families by 2023.
With these partnerships being forged we will see elimination in wastage and other non-value-adding costs along the chain, investment in extension services to the farmers to improve productivity and returns as well as creation of on farm post-harvest infrastructure”
The release predictably comes a day after the PM had given a televised address responding to the farmer protests.