Agricultural Reforms in India




Issue: Jan-Feb 2021

This paper explores the recent farm laws passed by parliament and their impact on farmers’ income.  The laws collectively offer greater freedom to cultivators to sell their produce at better prices and allow farmers to enter into contracts with processors, aggregators, wholesalers, large retailers and exporters at mutually agreed crop prices. The laws also encourage private investment into storage and warehousing by removing stockholding limits. To make these reforms work, some conditions may have to be fulfilled and imperfections and concerns have to be addressed, which are elaborated in the paper. Finally, the paper focuses on other agricultural reforms to improve the supply-side factors, such as rationalization of subsidies, land reforms, use of technology, strengthening institutions and governance, and improving rural infrastructure.


Agricultural Reforms, APMC, Essential Commodities Act, Agricultural Markets, Agricultural Policy


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Author Bio

Mahendra Dev, IGIDR

S. Mahendra Dev has been the Director and Vice Chancellor of the Indira Gandhi Institute of Development Research (IGIDR) in Mumbai, India, since 2010. Prior to this, he was Chairman of the Commission for Agricultural Costs and Prices for the Ministry of Agriculture of the Government of India, Director of the Centre for Economic and Social Studies in Hyderabad, and Acting Chairman of the National Statistical Commission of the Government of India.