UP withdraws new agri-policy

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

Mayawati said the BSP government had decided to roll back the policy following the report of the state intelligence department that over 60 per cent farmers of the state were against it. Soon after the announcement of the policy, some issues were opposed by certain quarters, she added.

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

She added: "The state intelligence chief submitted the report on Wednesday which concluded that over 60 per cent farmers were against the policy. So, we have decided to scrap the policy."

The chief minister said the government would never go against the wishes of the farmers. She also denied the government was contemplating to amend the Land Ceiling Act to reduce the maximum limit on the agricultural land holding.

She said such reports were baseless and false as no such proposal was ever placed before her or considered by the government.

On August 3, the state cabinet had approved a proposal for the amendment in the UP State Agriculture Marketing Act, 1964, to open the agriculture sector for private investment, particularly for the entry of the retail chain stores for procuring different agriculture products directly from the farmers.

The private investors were also permitted to set up private market yards, sub-market yards, corner market and private market for procuring the agriculture produce from the farmers.

Announcing the "Agriculture Infrastructure and Investment Policy" as "historic and revolutionary", CM had then said the policy was likely to attract investment of Rs 40,000 crore by 2011 in the agriculture sector in UP.

The new policy permitted the investors in agriculture sector to do contract farming and purchase the agriculture produce directly from the farmers. Under the policy, the farmers were given the option to sell the crop outside the Mandi yard being operated by the UP State Agriculture Marketing Board.

The chief minister had then said the policy had been framed to draw maximum benefits from the retail revolution sweeping the whole world as this would help to integrate the rural economy with the mainstream of the nation's economy.