Analyzing Recent Indian Agricultural Reforms: Implications for the Sector and Economy

Abstract

Abstract: With a focus on two main areas, this article examines the recent agricultural reforms in India and their effects on the industry and economy. Specifically, it looks at the three farm laws in depth, weighing their advantages and disadvantages, and draws comparisons with the economic changes of 1991. These regulations are set against the backdrop of India's changing economic landscape, which has been characterized by class disputes in agriculture and inequities between urban and rural areas since the 1990s. The objectives of the Farmer's Produce Trade and Commerce Act, 2020 are to decrease middlemen and increase market access. Potential effects on the Minimum Support Price (MSP) system are the main source of concern. Modernizing farming processes, lowering risks, and promoting comprehensive crop production agreements are the goals of the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Service Act, 2020. Among the difficulties are a lack of literacy among farmers and differences in the contractual parties' capacities. The Essential Commodities Act, 2020 modifies the essential goods regulation system with the goal of minimizing government involvement while guaranteeing a steady supply of essentials. Its dynamic nature and potential for consumer abuse give rise to concerns. Regarding rice marketing, these regulations could affect individual rice varieties, increase farmers' market access and autonomy, remove storage ceilings, and mostly help rice growers. To fully comprehend the complex effects of these farm regulations on India's agriculture and economy, more study and analysis are necessary.