New Agri Laws Have Potential To Raise Farm Income, Social Safety Net Needed, Says IMF’s Gita Gopinath

Washington: India’s recently-enacted agri laws have the potential to increase farmers’ income, but there is a need to provide a social safety net to the vulnerable cultivators, IMF’s Chief Economist Gita Gopinath said on Tuesday, The New Indian Express (TNIE) reported quoting PTI.

“Indian agriculture is in need of reforms. There are multiple areas where the reforms are needed, including infrastructure,” she was quoted as saying by PTI.

“These particular farm laws were in the area of marketing. It was widening the market for farmers. Being able to sell to multiple outlets besides the Mandis without having to pay a tax. And this had the potential to raise, in our view, farmers’ incomes.”

“That said, every time a 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 if it,” she added.