Farmers Stage Massive Protests in Delhi
Farmers in India’s state of Punjab participating in stubble burning for the Fall harvest (Wikimedia Commons)>
Thousands of farmers have converged on Delhi to protest against planned reforms by Indian Prime Minister Narendra Modi’s government, which aims to privatize sections of the suffering agriculture industry.
More than 200,000 farmers from India’s northwestern states of Punjab and Haryana have been participating in the “Delhi Chalo,” or “Let’s go to Delhi,” protests since November 26. Arriving in tractors and cars, the farmers blocked major highways and brought traffic to a standstill, trying to force India’s government to listen to their demands.
The controversy emerged after three agricultural laws were passed by India’s Parliament in late September. Keeping with the pro-market policies of Modi, the laws seek to curb protectionism and “ensure a complete transformation of the agriculture sector and empower [tens of millions] of farmers,” as Modi tweeted on September 26. The provisions include removing the central government’s power to impose stocking limits on foodstuffs, enabling contract farming, and allowing farmers to sell their produce outside of the government-controlled Agricultural Produce Marketing Committees, or mandis.
The last provision has proven the most contentious, as produce sold outside of the mandis would not have a minimum support price (MSP)—meaning that unscrupulous traders could swindle farmers by charging them a lower price than what their produce is worth. Some also fear that initiatives such as contract farming could lead to farmers being swallowed up by large farming corporations.
When the farmers began to approach Delhi through neighboring state Haryana on November 27, the local police attempted to prevent them from reaching the capital by unleashing tear gas and water cannons. This use of excessive force provoked outcry from certain figures, including Canadian Prime Minister Justin Trudeau, who called the situation “concerning” and said that “Canada will always be there to defend the right to peaceful protest.” However, there have been no incidents of excessive force once the farmers reached Delhi, with the groups having been allowed by the government to set up extensive camps on the city’s outskirts.
“We are fighting for our rights,” said Majhinder Singh, a farmer leader. “We won’t rest until we reach the capital and force the government to abolish these black laws.”
Most economists agree that India’s agricultural sector badly needs reforms, with the average farmer’s situation in dire straits. One study by the National Bank for Agriculture and Rural Development found that half of India’s farm households are in debt, and a disturbing rise in farmer suicides has been linked to this mass indebtedness. 58 percent of India’s 1.3 billion people are involved in some form of farming job, yet agriculture constitutes only 15 percent of India’s GDP.
Through these three laws, the Bharatiya Janata Party (BJP) government hopes to attract private business into agriculture, potentially boosting its output and helping some farmers. But many farmers anticipate a loss of security with the mandi system being undermined and the potential loss of an MSP. Economic fallout from the coronavirus is also a compounding factor, with the economy having shrunk by 7.5 percent last quarter, particularly affecting small businesses.
India’s BJP-led government has begun negotiating with the farmers, with further talks scheduled through December after initial talks on December 1 failed to make a breakthrough. The farmers will ask for either the repealing of the three new laws or a guarantee of an MSP, which could be difficult for the Modi government to ensure.
Regardless, the demonstrations show the continuing battle between economic left and right ideas in India is far from over. Although India liberalized most of its economy in the 1990s, many forms of protectionism remain, which the BJP argues have only contributed to inefficiency and stagnation. Clearly, the Modi government believes a market focus is the way forward, but they will find it challenging to proceed without addressing the concerns of the fearful farmers.