Page 34 - Banking Finance May 2022

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to increase productivity as well as ensure that the blessing for him as this will result in taking agricultural
commodity meets the market demands activities timely. This year fortunately there has been good
4. There can be considerable improvement in skill monsoon and also due to the COVID - Pandemic, there has
development, such as efficient use of farm resources, been lot many people who have migrated to cities have
returned to their home towns/villages, because of which
innovative methods of applying chemicals and fertilizers,
there has been sufficient labour for agricultural activity and
knowledge of the importance of quality and
as per the estimates this year the sowing has been 88% more
requirements of various markets.
than the last year. But if the same rains come during the
5. As there will be written farming agreement, The
time of harvesting as most of times it happens , the farmers
farmers can get guaranteed returns.
will be at losing end.
Farmers are foreseeing various fears and Farmers also feel that even though they have got good crop
disadvantages while engaging through contract yield, they are not getting better price to their produce,
farming because of which only there has been constant demand of
enhancement of MSP, which should be fixed after taking in
1. As the farmers are tying up with agribusiness ventures,
there maybe necessity or compulsion to go for the actual costs involved in cultivation, rather fixing it
cultivation of new crops in the area because of which mechanically.
there may be production risks, particularly where prior
There are many such issues which farmers are already facing
field tests are inadequate, resulting in lower than
expected yields for farmers. and with the enactment of these bills.
2. With the sponsors insisting on use of technology and use The Government has been very positive and confident that
of sophisticated machines, for better and quality output the farms bills will usher a new life of Indian farmers and
this may result in loss of local employment and Prime Minister Mr. Narendra Modi has felt that this is a
overcapitalization of the contracted farmer. watershed movement for agriculture sector. The
3. If the survey by field staff of the sponsors has not been Government has to make all-out effort to create confidence
properly done and the sponsors fix an unrealistic and show that their intentions are very clear that the
expectations, because of which there may be farmers interest are protected and should make every effort
production loss or may not reach the agreed level. to drive out all misconceptions.
4. Farmers also feel that if the market for their produce
cripple unexpectedly the sponsors may manipulate Even though it seems the wheel has completed its full circle,
the assurance and intentions of Government has to create
quality standards in order to reduce prices which may
an environment that there will not be reoccurrence of any
result in unrest.
issues of the past.
5. If there is any dispute, there are apprehensions of losing
substantially, if they are not getting relief at Sub- Let the vision of Government come true and wishing that
Divisional Authority or Appellate Authority, as civil courts
there will be a beacon of light for a new beginning of real
will not entertain any suit under this Act. growth in farm sector and the goal of Government to see
6. There may be a situation when there is a rise in price that farmers' income will be doubled by the year 2022
in the open market for the product, they will be losing comes true.
the benefit of selling in open as they are bound by
contract agreement. References
X Mpa.gov.in/bills-list
Conclusion: X The Hindu
Indian farmer is like Karna in Mahabharata, who suffers with X Indian Express
curses in spite of having so many virtues.
X India Today
Whenever there is good rain before sowing of crop it is a X Business Standard

34 | 2022 | MAY | BANKING FINANCE