The International Monetary Fund (IMF) considers that the three farm laws enacted by the Indian Government can bring significant reformations and changes in the Indian agricultural industry. It also has warned that a social safety network is required to protect those who might be adversely impacted during the transition to the new system, a spokesperson of the global lender was quoted as saying by PTI.
The new measures will reduce the role of middlemen and enhance efficiency in the sector, said the Director of Communications at the International Monetary Fund (IMF) Gerry Rice. "We believe the farm bills do have the potential to represent a significant step forward for agricultural reforms in India," added Rice said at a news conference in Washington on Thursday.
"The measures will enable farmers to directly contract with sellers, allow farmers to retain a greater share of the surplus by reducing the role of middlemen, enhance efficiency and support rural growth," he said.
IMF spokesperson while responding to a question on the ongoing farmers’ protests against the laws said, "However, it is crucial that the social safety net adequately protects those who might be adversely impacted during the transition to this new system.”
This can be done by ensuring that the job market accommodates those that are impacted by the reforms, he said.
Rice also pointed out that the growth benefits from these changes will depend on the time of its implementation and their effectiveness, thus more attention has to be given to the issues related to the reforms.
Meanwhile, the 9th round of talks between the Centre and farmers leaders is scheduled on Friday hoping for a resolution for all the issues of the farmers who had been protesting against Centre’s three farm laws since late November 2020.
Krantikari Kisan Union chief Darshan Pal had on Thursday confirmed that they will take part in the scheduled meeting with the central government on Friday concerning their demands on new farm laws.
The three farm laws passed by the Centre have been projected as major reforms in the agriculture sector that will remove middlemen and will give the farmers the power to sell their produce anywhere in the country.