Indian Prime Minister Modi repeals controversial farm laws after year of protests

Indian Prime Minister Narendra Modi said on Friday he would repeal three farm laws that farmers have been protesting against for more than a year, a significant setback for the militant leader as major elections loom.

The legislation, introduced in September last year, aimed to deregulate the sector, allowing farmers to sell products to buyers beyond government-regulated wholesale markets, where producers are guaranteed a minimum price.

Farmers, fearing the reform would slash the prices they receive for their crops, organized nationwide protests that drew activists and celebrities from India and beyond, including climate activist Greta Thunberg and pop singer Rihanna.

“Today I come to tell the whole country that we have decided to repeal the three agricultural laws,” Modi said in a speech to the nation.

“I urge farmers to return to their homes, their farms and their families, and I also ask them to start over.”

The government would repeal the laws in the new session of parliament, starting this month, he said.

The surprise concession on laws the government had said were essential to tackling chronic waste and inefficiencies comes ahead of elections early next year in Uttar Pradesh (UP), India’s most populous state, and others. two northern states with large rural populations.

However, Modi’s capitulation leaves unresolved a complex system of farm subsidies and price support that critics say the government cannot afford.

It could also pose questions to investors about how economic reforms risk being undermined by political pressure.

The protesting farmers, who had been camped out by the thousands on the main roads around the capital New Delhi, celebrated Modi’s pushback.

“Despite many difficulties, we have been here for almost a year and today our sacrifice finally paid off,” said Ranjit Kumar, a 36-year-old farmer in Ghazipur, a major protest site in Uttar Pradesh.

The jubilant farmers handed out sweets in celebration and chanted “say hello to the farmer” and “long live the farmers movement.”

Rakesh Tikait, leader of a group of farmers, said the protests were not canceled. “We will wait for the parliament to repeal the laws,” he said on Twitter.

Vulnerable to large companies

Modi’s Bharatiya Janata Party (BJP) government said last year that it was not about repealing the laws. He tried to break the deadlock by offering to dilute the legislation, but protracted negotiations failed.

The protests took a violent turn on January 26, India’s Republic Day, when thousands of farmers overwhelmed police and stormed the historic Red Fort in New Delhi after breaking down barricades and driving tractors through checkpoints. roads.

A protester was killed and dozens of farmers and policemen were injured.

Small farmers say the changes make them vulnerable to competition from large companies and that they could eventually lose price support for staples such as wheat and rice.

The government says reforming the sector, which accounts for about 15% of the $ 2.7 trillion economy, means new opportunities and better prices for farmers.

Modi announced the removal of the laws in a speech marking the anniversary of the birth of Guru Nanak, the founder of Sikhism.

Many of the protesting farmers are Sikhs.

Modi acknowledged that the government had failed to win the argument with small farmers.

Farmers also demand minimum support prices for all their crops, not just rice and wheat.

“We need to know the government’s position on our other key demand,” said Darshan Pal, another farmer leader, of the new lawsuit, which has gained traction among farmers across the country, not just in the northern grain belt. .

Rahul Gandhi of the main opposition party in Congress said the “arrogant” government had been forced to give in.

“Whether out of fear of losing UP or finally facing conscience, the BJP government is rolling back agricultural laws. Just the beginning of many more victories for the voices of the people,” Mahua Moitra, a legislator from the Congress Party of Trinamool and one of Modi’s staunch critics said on Twitter.

But some food experts said Modi’s pushback was unfortunate because the reforms would have brought new technology and investment.

“It’s a blow to agriculture in India,” said Sandip Das, an agricultural policy analyst and researcher in New Delhi.

“The laws would have helped attract a lot of investment in agriculture and food processing, two sectors that need a lot of money for modernization.”

(REUTERS)

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More