MOST COUNTRIES SUPPORT THEIR

FARMERS. WHERE DOES INDIA STAND?

 Ex-DSP Punjab Police
Engineering from IIT Madras
 FARM BILLS
In September 2020, President gave assent to two controversial farm Bills.

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act,
2020 provides for contract farming and it will transform Indian agriculture and
attract private investment.

The Farmers (Empowerment and Protection) Agreement on Price Assurance

and Farm Services Act, 2020, liberates farmers by giving them the freedom to
sell anywhere.
 FARMERS PROTEST

Farmers from several states have been camping at the borders of the
national capital for over a month.

They are demanding repeal of the recently enacted farm laws.

According to the farmers the new agricultural Acts are brought to

dismantle APMCs and has no provision to regulate the private traders.
 LONGSTANDING COMPLAINS

Farmers do not have only these defensive demands but they have
other long-standing complains as well.

Agriculture employs almost half of India’s population (44 per cent)

despite contributing less than 15 per cent to the country’s GDP.

Far from coming through on the election promise of doubling of farm

incomes by 2022-23, the current government led has actually made
things worse for farmers.
 OECD DATA

OECD provided five sets of data on the issue of how does the Indian
government support its farmers as compared to other countries

Producer Support Estimate

Consumer Support Estimate
General Services Support
Total Support Estimate
Producer Protection
 PRODUCER SUPPORT ESTIMATE
It is the money transferred to the farmers via government policies like
Minimum Support Price, tax breaks to agricultural export and import
bans, etc.

While in countries such as Indonesia, Brazil, China, Mexico, US and

European countries, this support is positive, in India this amount is
negative.

The negative value of the PSE reflects that domestic producers, overall,
continue to be implicitly taxed.
 PRODUCER SUPPORT ESTIMATE
25

20

15

10

0
India Brazil Mexico USA China Indonesia
-5

-10
 CONSUMER SUPPORT ESTIMATE
This data shows if consumers are buying farm produces at prices higher
or lower than the international prices.

OECD data shows the Indian consumers pay much lower prices than
other developing and developed countries.

This is because of the subsidized food made available to the consumer

by the government through the public distribution system.
 CONSUMER SUPPORT ESTIMATE

30

20

10

0
India Brazil Mexico USA China Indonesia
-10

-20

-30

-40
 GENERAL SERVICES SUPPORT ESTIMATE
GSSE transfers are linked to measures creating enabling conditions for
the primary agricultural sector through development of private or
public services, institutions and infrastructure.

GSSE transfers do not directly alter producer receipts or costs or

consumption expenditure although they may affect production and
consumption of agricultural commodities.

The percentage GSSE is the ratio of the GSSE to the Total Support
Estimate.
 GENERAL SERVICES SUPPORT

3.5

2.5

1.5

0.5

0
India Brazil Mexico USA China Indonesia
 TOTAL SUPPORT ESTIMATE
The TSE transfers represent the total support granted to the agricultural
sector, and consists of producer support (PSE), consumer support (CSE) and
general services support (GSSE).
 TOTAL SUPPORT ESTIMATE

40000
35000
30000
25000
20000
15000
10000
5000
0
India Brazil Mexico USA China Indonesia
 PRODUCER PROTECTION
This looks at how farmers are protected. It is the ratio between the
average price received by the farmer as compared to international
price of the same commodity.

In China, this ratio is 1.10. It implies Chinese farmer received prices that
were 10% above international prices.

In India, it 0.87 which means Indian farmers received prices 30% lower
than international prices.
 PRODUCER PROTECTION
1.4

1.2

0.8

0.6

0.4

0.2

0
India Brazil Mexico USA China Indonesia
 COMMENT SECTION!!!

Do you think Government should start working

towards removing these gross inequalities our
farmers face as compared to global practices?
 STAY TUNED…

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