India’s economy was unshackled to a great degree in 1991 which was thitherto tightly controlled by successive socialist governments run by politicians and bureaucrats. Agriculture was not one of them which, to this day, remains one of the most controlled segments of economy.
We have come up with a list of suggestions that the government can open up for discussion and consultations and implement them over a 6 year period. At the end of the 6th year, agriculture should be totally from all controls and incentives, and be just like any other business.
- Create a regulator: Abolish the ministry of agriculture and replace it with a regulator.
- Aggregation: Permit startups and corporates to aggregate and cultivate land.
- Privatise and ensure effective crop insurance: Privatise and ensure effective crop insurance in a graded manner over 3 years.
- Income tax: Let there be income tax on the earnings of individual and corporate farmers.
- Land ceiling: Remove.
- Corporatized agriculture: Permit.
- Futures and options: Permit and encourage futures and options in a regulated manner.
- MSP: Let the futures and options replace MSP.
- APMCs: Restrict their role gradually and finally abolish or assume new roles.
- Subsidy on electricity: Remove incrementally over 3 years.
- Subsidy on fertilizers: Remove incrementally over 3 years.
- Subsidy on water: Remove incrementally over 3 years.
- Subsidy on seeds: Remove incrementally over 3 years.
- Land use: Permit change of land use.
- Non-polluting industries, businesses on land: Permit industries and other businesses on agricultural land.
- Stress on cities: Encourage activities that will ease stress on cities.
- Urbanisation: Convert big villages into planned towns.
- Essential commodities act: Place it under the regulator and let it remain forever.