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The Centre’s new Farm Bills has got the support of CII Southern region which claims it will be a game changer for southern States leadership in agriculture.
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, says a CII press release.
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 modernisation of the food supply chain.
Positive outlook
The growth will 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 per cent over the previous year and a good monsoon. Horticulture production at 320 million tonnes is estimated to be 3.13 per cent higher than the previous year. Additionally, production of cash crops such as sugarcane, cotton, spices, coffee are also expected to be robust, the release said.
Satish Reddy, Chairman, CII Southern Region, said that this reform 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.
According to CK Ranganathan, Deputy Chairman, CII Southern Region, 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 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. A new renaissance is on the anvil to farmers and the farming sector in India, the release said.
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