Farmers in India have been protesting for some time now, and as their protests gain traction, India’s already volatile economy becomes less and less stable. So, what exactly are these farmers protesting against?
In order to understand the new laws passed by the Rajya Sabha, or the upper house, it is crucial to understand India’s market system. Most Indian farmers operate in government-regulated wholesale markets, or ‘mandis’, which allows them to receive exemption from income tax and receive subsidies from the government. In ‘mandis’, farmers receive an assured floor price for their produce, guaranteeing income. The new laws allow farmers to stop selling produce at ‘mandis’ and interact directly with private businesses such as online grocers, supermarket chains, etc. While, in theory, these laws do not sound objectionable, interacting with large private corporations can open farmers up to exploitation, as farmers will no longer be operating under an assured floor price.
Additionally, farmers fear that these laws will lead to an eventual dismantling of the ‘mandi’ system, meaning that farmers will lose their assured income, and their income will be directly dependent on the whims and fancies of private corporations.
So, while allowing farmers to trade outside the ‘mandi’ system is crucial in order to ensure farmer freedom, the end of the ‘mandi’ system may lead to loss of income for thousands of farmers in the country.
Written by Medha Gupta
Artwork by Zara Masood
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