The government hopes competitive markets and higher private investments in the food supply chain will improve farm-gate prices. But without regulatory oversight and monitoring of transactions outside APMC mandis it remains unclear how the welfare impact on farmers will be quantified. Secondly, data on wholesale prices have to be closely monitored to understand the immediate impact of the bills on farm gate prices. Any disruption to the usual procurement regime may lead to further unrest in these states. It is unlikely that private firms will immediately invest in value chains or set up private markets if state governments are not aligned to the reform agenda.
Source: Mint September 21, 2020 07:07 UTC