The new farm laws are one of the biggest reforms done since 2000. If I have to compare the with another one of same stature, it would be GST and nothing else. There have been several articles published about the farm laws, in this one I am trying to visualize India in 2030s with these laws, which is as follows:
- With market and capitalist forces controlling the agriculture sector, there will be lot of innovation. We will be seeing Artificial Intelligence(AI), Internet of Things(IoT) and Robotics being used on Indian fields. With Indian lands being fertile, I foresee India becoming the granary of the world. Production will increase manifold. This will revive the glory of ancient India. Why? India in the ancient ages was rich and strong because of the strong agrarian trade with Western Roman empire, North/East Africa.
- With most/all middlemen/dalals vanishing from the ecosystem, their margins will be shared between the farmers and customers. Food inflation will be a thing of past.
- A lot of money(hundreds of billions of dollars per year) is spent for grain procurement. The FCI procures crops, a big chunk of which rots in godwns. With private players/exporters/corporates doing procurement, the govt will just need to procure that much amount of grains needed for food security and welfare schemes. The procured grains will be eaten, not rot in godwns. With govt. procurement expenditure lessening, taxes would go down. I foresee, govt will further reduce GST, then the Income and Corporate taxes.
- With stock limits being removed by amendment to “Essential Commodities act”, I foresee a lot of private investment in agri infrastructure like cold storages and warehouses, which will reduce wastage. Today, nearly 35% of vegetables are wasted due to lack of storage facilities.
- In Agriculture sector disguised employment is very high i.e. number of people engaged is higher than what is needed. With technology and machines being used, this will pave way for the extra man power to work in Industries and Infrastructure which will help India replace China to become the factory of the world. After the pandemic, with world going for a ABC(Anything but China) and OPC(One plus China) policies, we have a golden opportunity in the whole millennium which we can not/should not miss. With disguised unemployment vanishing and less number of people remaining to share the profits, agriculture will be an attractive profession for youngsters. Many Agri startups will flourish. But, yes, this may create some short term trouble. Govt. need to ensure that extra people being freed from agriculture are reskilled. This is the only negative(though small and temporary) side effect I foresee.
- Rural-Urban divide will reduce.
- The manufacturing and services sector will employ highest percentage of people which typically happens in any developed country, that means less number of people will be able to feed more bigger chunk of the population. Percentage of contribution of Agricultural sector to GDP will grow.
- People will grow the crops which the market needs, not just wheat and rice which is procured by FCI and the dalals. This will diversify agriculture and save environment by reducing water consumption. There are reports saying that the water levels in Punjab have depleted to alarming levels as farmers grow paddy/wheat which are procured by FCI and the dalals.
- Political effect: Might sound wired? Actually, No. Whenever any dictator/dynasty comes to power it creates a financial ecosystem (typically corrupt) to support it, thereby making the dynasty and the ecosystem share a symbiotic relationship. Same, for the Gandhis (and some other dynasties in India), the dalal + corrupt FCI ecosystem had been one of their core backers/financers(there were other eco-sytems which Modi Govt has destroyed and few more are remaining). With the dalal ecosystem being unable to support the Gandhis, I foresee the Gandhi dynasty will weaken/crumble. It is no coincidence that the revolution against Gandhis in Congress started shortly after the farm laws’ ordinances were promulgated. Whenever Gandhis are in power the food inflation is always in double digit percentage numbers, that’s due to influence of the dalals on the Gandhis. Once, the farm laws stabilize, I foresee Gandhis will be kicked out of Congress, and all dynasties vanishing thereafter. India will have regional and national parties, but sans the dynasties. Hence, it is no coincidence that the Gandhis are spearheading the protests.
The future of Bharat looks rosy with the new farm laws. Just as the history today acknowledges Dr. Manmohan Singh, Mr. Arun Jaitley as the biggest reformers of our times, our humble and villager looking agricultural minister Mr. Tomar will surely enter the league in future.
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