08/07/2020 - Government Policies | Mainstorming

IAS Parliament 4 years

KEY POINTS

· The Farmers Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020 aims to free agricultural trade, empowering farmer to sell unfettered has laid the ground for contract farming.

· Entrepreneurs can also establish private electronic trading platforms, with inbuilt market intelligence features, to benchmark sale with prevailing trends.

· A commodity trader, wholesaler or even a food processing company can now enter into a mutually rewarding arrangement, with farmers.

Northeast benefits

· Northeast produces the finest kiwi, avocado, dragonfruit, passionfruit, strawberries, oranges and pineapples. Spices like large cardamom and turmeric are grown in abundance.

· The region is a plantation paradise, with exquisite varieties of orchids, tea, coffee and variety medicinal and aromatic plants. With one of the lowest fertiliser consumption, farming is organic by default.

· Similarly, Spice fresh, a subsidiary of Spice Jet, smelt an opportunity in juicy Dambuk mandarins and set up a hub at Digboi. Farm fresh oranges, sorted, graded and packed were airlifted from Dibrugarh to adorn the shopping malls in metros.

Co-operation from State governments

· Crucial reforms, by state governments, must be introduced alongside. Land rights and tenancy laws are proving to be irritants. In the absence of a cadastral survey, no formal ‘ownership rights’ of cultivable land have been conferred on farmers in most states. Ownership continues to be based on fuzzy customary law, creating ambiguity for investors.

· Customary rights vary not only from one state to another but also within states, across tribes. A framework of land leasing would help monetise land and make contracting arrangements more robust.

· Small states of the northeast in a fragmented market lack economies of scale. The region must transform into an integrated agricultural market. Planning for rural road connectivity and post-harvest market infrastructure–cold storages, rural godowns needs a regional lens.

· Government-led electronic National Agricultural Market (eNAM) has created a national network of mandis through an online trading portal. Buyers outside the State are free to participate in local trading.