UP rolls back retail-friendly farm policy

In a major setback to the reforms in the agriculture and retail sectors, the Uttar Pradesh government has decided to roll back the Agriculture Infrastructure and Investment Policy announced by Chief Minister Mayawati on August 3. The state cabinet has approved the decision.

The policy opened the agriculture sector to private investment, particularly large retailers, which were allowed to procure directly from the farmers.

It also allowed contract farming and gave the farmers the option to sell outside the mandi yards operated by the UP State Agriculture Marketing Board.

Mayawati said the BSP government decided to roll back the policy following a report of the state intelligence department that over 60 per cent farmers were against it.

"The government issued clarifications over apprehensions in some quarters over the measures laid down in the policy. Later, we decided to ask the intelligence department to obtain reports from each of the 70 districts on the reaction of the farmers to the policy,'' the chief minister said.

The chief minister said the government would never go against the wishes of the farmers. She also denied the government was contemplating an amendment to the Land Ceiling Act to reduce the maximum limit on agricultural land holding. She said such reports were baseless as no such proposal was ever placed before her or considered by the government.

Announcing the "Agriculture Infrastructure and Investment Policy" as "historic and revolutionary," the chief minister had said it was likely to attract an investment of Rs 40,000 crore by 2011.