In the first part of this two-part series, we covered the various diverse perspectives that are emerging on Farm Loan Waivers in India and presented a new perspective – linking Commodity Spot Markets with short-term credit linkage initiatives to enhance famers’ bargaining power that will lead to better realisations for their agriculture produce.
The announcement of loan waivers for farmers has been cited as one of the key factors for a leading national party’s return to power in three Hindi heartland states of Madhya Pradesh, Chhattisgarh and Rajasthan. As we write this, diverse views from numerous experts on the efficacy of farm loan waivers are already in the air.
As discussed in our previous blog, India’s Agriculture Export Policy should incentivise domestic agri producers to produce value-added agri products to fuel the country’s increasing appetite for premium products on account of a fast-rising middle class. The case of Edible Oil consumption in India is a good example.
It is a matter of great pride that our initiative with the Government of Karnataka – ‘Unified Agriculture Market’ has won the Common Wealth Association of Public Administration International Innovation Awards – CAPAM 2018 in the ‘innovation in public services management’category at Guyana on October 24, 2018.
With every passing year, more and more Multinational Companies (MNCs) across the globe are entering the Indian market to sell value-added agri products that fetch far higher prices than what their India-sourced raw commodities fetch. For e.g. a popular brand’s 250 gms. packet of Cornflakes, with minimal fortification, sells at a 3-4 times higher price than raw cornflakes. The same goes for Imported Fruits like Apples, Oranges and Grapes that command a premium of 50-100% over the ones produced in India.