Nervous reformers

Instances of even well-intentioned reform measures failing to evoke an enthusiastic response from the states are not rare.

The latest in this series is the Centre's bid to usher in reforms in agricultural marketing and land laws.

The conference of state agriculture ministers, convened for this purpose, did not really succeed in obtaining positive commitments from states though it managed to evolve a kind of consensus on the need for such reforms.

The Centre's proposals sought amendment of state laws to facilitate measures like establishment of private agricultural markets, contract farming and land leasing.

While the states having qualms about private markets were few, the proposals for legalising land leasing and setting up of land share companies were viewed with apprehension by many states. No decision could, thus, be taken on these crucial issues.

The states' fear that the development of lease market for land would lead to loss of ownership rights or concentration of land in fewer hands, is unfounded.

For, if done in a legal manner and within the land ceiling limits, both these negative consequences could be avoided.

In fact, these doubts emanate only from the lack of legal sanctity for land leasing. Provision of legal protection would eliminate them.

At present, a good deal of land, especially that belonging to absentee landowners, remains uncultivated whereas a proper land lease market will put this land to productive use.

Similarly, the misgivings expressed by some states over private agricultural markets are largely misplaced.

These states want private markets to be tried first on a limited scale for trading in selected items like horticultural produce, processed products and export-bound commodities.

Thus, it is obvious that the states are neither uneasy about the private sector's entry into this field nor apprehensive about the success of private markets.

What they are really wary of is losing revenue from mandi charges and other market levies. But ways can be found to tap even private markets for revenue collection.

Besides, the expansion of marketing infrastructure through this route is bound to substantially increase the volume of transactions, augmenting state revenue.

In any case, the experience of some of the progressive states which have opted for facilitating private and cooperative sector markets will, with time, prompt the laggard states also to fall in line.

Fortunately, concepts like contract farming and direct marketing, viewed with scepticism in the past, are now acceptable to almost all states.

Contract farming is one of the best means for allowing farmers to produce-to-order, after developing a direct linkage with end-users.

The lack of any legal validity for such contracts had been among the main hurdles preventing the spread of this system.

The amendment of marketing laws to incorporate safeguards for contract farming is bound to provide impetus for change.