IMF Chief Economist Gita Gopinath Says New Laws Have “Potential to Raise Farmers’ Incomes”
Amid the ongoing protest against three farm laws recently introduced by the Union Government, International Monetary Fund (IMF) Chief Economist Gita Gopinath said it will increase farmers’ income. While backing the laws, Gopinath requested the government to provide social safety to the farmers along with the holistic reforms.
Gopinath explained how these laws will create a wide market for the farmers to sell their products to multiple buyers without having to pay tax. “And this had the potential to raise, in our view, farmers’ incomes,” Gopinath told PTI.
“That said, every time reform is put in place, there are transition costs. One has to make sure and pay close attention that it’s not harming vulnerable farmers, to make sure that the social safety net is provided. Clearly, there is a discussion right now and we’ll see what comes out of it,” she added.
In September last year, the government introduced the laws to remove middlemen and let the farmers sell their products anywhere across the nation. While economists back the laws, thousands of farmers from four states neighbouring Delhi are protesting against the farm laws for the past two months.
The protesting farmers want the government to withdraw these laws and provide a legal guarantee on the Minimum Support Price (MSP) for their products. However, the two parties have not reached any conclusion even after 11 rounds of talks.
On Tuesday, situation became worse as a tractor parade by the farmers in the national capital turned violent. While one protestor, who had recently returned from Australia after completing his studies, died, more than 83 police personnel were left injured in the riot.
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