Freeing the farm (Indian Express)

Mains Paper 3: Economy
Prelims level: Agricultural ecosystem
Mains level: Amending the essential commodities act can boost up Agricultural ecosystem

Context:

• The third tranche of the economic package announced by Finance Minister to focused on agriculture and allied activities and had two sets of measures:

Key objectives:

• First, steps aimed at boosting credit flow to parts of the agri-ecosystem, though not backed by substantial allocations.
• The second, and arguably the more substantive part of the announcements related to the government’s intention to amend the Essential Commodities Act, usher in agricultural marketing reforms. It aims to put in place a legal framework to facilitate direct dealings between farmers and buyers — all of which, if implemented, could potentially deliver sizeable returns in the long term.

Meaning of an agricultural ecosystem:

• An agricultural ecosystem is an ecosystem managed with a purpose, usually to produce crops or animal products.
• Agricultural ecosystems are designed by humans, and are based on a long chain of experience and experiments.

Amending the essential commodities act:

• Sitharaman announced the government’s intention to amend the Essential Commodities Act. The act, enacted in an era of scarcity, is ill-suited for times when the nation is faced with problems of plenty.
• It imposes restrictions on holding of stocks ........................................

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Towards contract farming:

• While these initiatives by the states may have been triggered by the need to relieve the pressure on mandis in order to maintain social distancing norms during the COVID pandemic, the Centre’s decision could permanently alter(change) the dynamics.
• As the situation exists today, farmers are ................................................

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Conclusion:

• The policy discourse over the past several years has centred around the imperative to free Indian agriculture from the clutches of APMCs, amend the Essential Commodities Act, and encourage private investment in various parts of the food chain.
• While governments in the past have indicated their preference to carry out these much-needed reforms, they have shied away due to political compulsions. The NDA government should not let go of this moment to reform Indian agriculture.
• Government moves to amend laws holding back agriculture are very welcome. It must follow through quickly.

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Prelims Questions:

Q1. With reference to the Sample Registration System (SRS) bulletin, consider the following statements:

1. The Sample Registration System (SRS) is a demographic survey for providing reliable annual estimates of infant mortality rate, birth rate, death rate and other fertility and mortality indicators at the national and sub-national levels.
2. According to the SRS bulletin the national birth rate in 2018 stood at 20 per one thousand of the population.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer:

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Mains Questions:
Q1. Highlights the reasons behind ...........................................