Thread by @niravstoons

Why aren’t we talking more about #FarmProtests ?

My take - @rihanna @GretaThunberg @miakhalifa and others ...

The farm laws which are scrapped are

1. Freedom to sell to anyone vs the previous restriction to sell at APMC (Agri Produce Marketing Company) - which was a monopoly

Allows to bypass intermediaries and sell direct to consumer or a wholesaler in a city.
Can still sell to APMC

2. Repeal of Essential commodities act - people can stockpile grains in warehouses.
Should lead to more investment by private sector - especially in perishable fruits and vegetables ( 🍎 🍌 🍉🥕🍆🍑) which reduces fluctuations in prices and hence predictable price for produce

3. Allowing contract farming - (which is allowed only for cash crops like Tea and Coffee previously)

This moves the risk of crop failure, bad weather (monsoon) on the buyer.
Takes away tail risk from the farmer.

All these 3 laws seem amazing.
Then why are (some ) farmers protesting?

Bull of them are the ones who benefit from the monopoly of APMC being commision agents as well as money lenders. Hence they feel allowing others to enter removes their monopoly and risk less profits

Another one reason is assuming that the other farming subsidies
- free electricity, high minimum support price and assured buying of grains will be removed.

Bull of the subsidy is captured in one state of Punjab.

These subsidies were relevant in 1960s where there wasn’t enough food being grown in India - but today we grow too much of grains (rice and wheat) and import pulses, oil seeds and not enough vegetables and fruits.

Could also be Agri export powerhouse which we aren’t

Farmers in Punjab get free electricity - which is generated by burning coal in thermal power plants.
This they use to pump out water which is lowering water table and draining acquirers.
To grow rice (which we grow 20% more than consumption each year)

After the harvest the stalks are burnt which causes severe air pollution.

How is any of this beneficial for the environment (cc @GretaThunberg )

The Rice grown is produced by FCI at ₹18/kg and then sold to the poor at ₹2/kg.
This is a direct wealth transfer to the farmers.

While this is good - 30% of India’s Agri subsidy goes to farmers in Punjab.
Tells you why no protests in other parts of the country.

The food subsidy bill is ₹1 trillion (1 lakh-crore) or USD 13 billion a year.

That’s the same cost as a bullet train from Ahmedabad to Mumbai.

With this subsidy we could have 1 new High Speed Railway line a year.

While lot of Indians are poor, so subsidy on sale price is needed - but some farmer cornering all of input subsidies is an issue.

They have feared taking away this entitlement and hence are protesting.
As well as storming the national monument (Red Fort) on the Republic Day

Solution for environment would be to grow less grains and water guzzling rice and sugar and grow more millets, pulses, oil seeds, fruits and vegetables. Exportable crops like maize and soybeans.

These consume less water and are more suited to grow in lower rainfall Punjab

The government could facilitate this by paying farmers not to grow rice but other crops. But there seems to be a mindset of no compromise and these farmers only aim is to repeal the laws and hold on to their subsidies.

So @rihanna @GretaThunberg @miakhalifa @meenaharris and whoever else wants to talk more about this topic - I would really like to discuss more and explain what the real issue is.

We can debate this in a civilized manner.

Other questions from me

@rihanna - why aren’t we talking about Barbados cricket not producing good fast bowlers or batsmen like Garry Sobers?
@GretaThunberg why are Nordic countries continuing to drill oil
@miakhalifa - sadly I don’t know your profession or background

Meanwhile to know more about the topic there are a few deep dives

1. @bharatvaarta podcast has excellent episode on this

2. @ShekharGupta in his #CutTheClutter series explains the reasons

3. Agri economist @agulati115 has a few good articles in Indian Express

@threadreaderapp unroll please