Farm Bills 2020

Hello all, my name is Vikas S Menon and I am a 2^nd year MBA student at Amrita school of business. Hope all are doing well. I hope you have read my previous blog. If you haven’t read, type #SCM in the search bar and you will find me.

So let’s begin,

 

 

Despite the issue being the farm bill 2020 called Anti farmer policies, the farm bill is a step towards realizing the government mission to double farmer's income by 2022. This bill particularly benefits the small and marginal farmers who own less than two acres of farmland. This bill is going to create an open market for inter-state and intrastate Agri trade and helps farmers to have their own choice. The legislation permits farmers to market goods directly to any client, rather than to limit them to local mandi's. These additional outlets may be from major companies and agritech start-ups to food producers, wholesalers, modern supermarkets, and B2B clients such as hotels and restaurants. Farmers would benefit from direct business ties and stronger supply chains that would have a positive effect on their profits. The Bills also offer a range of benefits to agritech start-ups and integrated players that bind farmers to agribusiness, food processors and exporters, agri-warehouses and cold storage suppliers, supply chain and logistics operators that ensure transparency and timeliness, online agri-trading markets, and virtually everyone in the agri-value chain that works towards eliminating inefficiencies in farm to table model.

The free market helps not only farmers but also agritech start-ups. They would no longer be limited by state-level bureaucracies and the License Raj of local APMCs, which will also obstruct their development and scalability. In addition to streamlining procedures, replacing such intermediaries, and reducing rules and regulations, Farm Bills can also contribute to the accelerated growth of new start-ups, which would help to establish legal mechanisms and contracts between farmers and agribusinesses, as well as informing farmers on the benefits of the Bills. As agriculture is the core of our country, past policymakers have ignored the right facilities and supply chain needed to maintain perishables effectively to reduce the waste they undergo. Privatization puts the necessary technologies and modern approaches into the orthodox operation of conventional supply chains. The end-users will benefit from productive supply chains and improved storage.

Although farm-to-table performance could be the most immediate effect of improved progress, farm bills are also projected to improve agro - food-storage infrastructure in the longer term, even in smaller locations. The new Bills would allow corporations, individuals, and farmers to choose crops to maximize income. The government may rely on private storage players. Previously, the government suffered major losses due to mismanagement as it sought to store agricultural goods. Privatization of agri-warehouses is supposed to solve the storage dilemma, although expanded procurement by non-government players allowed by Farm Bills will gradually bring down surplus food grain demand. Farm Bills encourage free trade to coexist with mandi's. But rising rivalry would push them to rethink and re-imagine their position in the Agri value chain. They may also take a new role in the new legislation. With the elimination of additional state or mandi costs, they will utilize their well-established ties with farmers to build a direct supply chain for private organizations at better prices. There could be some disturbances in the short term, but Farm Bills would guarantee a healthy balance between customers and farmers in the long run.

Do you think the government of India made the right decision? Does the farm's bill have the strength to support the Indian farmer’s? Why do farmers protest against the bill even though it is introduced for their benefits? Let me know your opinion and feedback about the post.

Information collected sources:

1)  https://yourstory.com/2020/02/agritech-startup-farmpal-farm-fork-supply-chain

2)  https://yourstory.com/2020/04/agritech-startup-fixing-food-supply-chain-coronavirus-lockdown  

3)  https://yourstory.com/2020/08/vc-fund-omnivore-agritech-startup-financing-mainstream

 4) https://yourstory.com/2019/09/agritech-startup-harabaag-farm-data-supply-chain-b2b-marketplace  

5) https://yourstory.com/2020/09/agritech-startup-hosachiguru-managed-farms-wealth-benefit

6) https://yourstory.com/2020/02/pune-agritech-startup-khetigaadi-farmer-tractor-machinery-on-rent

7) https://yourstory.com/2020/10/farm-bills-2020-benefit-farmers-agritech-startup-agri-warehouse?utm_pageloadtype=scroll