India’s farming system is horribly inefficient. The government knows this and has been trying to improve the system for the past few years.
More than half of all Indians work in an agricultural job. Compare to America (another massive agricultural producer) where only 22 million Americans—less than 7%—work in agriculture.
You’ve got poor farmers working with old equipment, or even oxen pulling plows. They have middling to low productivity and huge amounts of food waste due to poor infrastructure.
The Modi government is clearly not interested in having 650 million mediocre farmers, and so they’re moving to deregulate these markets and let market forces take over to improve efficiency.
The problem is that many of these poor farmers will be absolutely destroyed in the process. In an ideal situation they would leave farming and find other work, but…that’s a LOT of people looking for work.
Many countries have carried out similar deregulation of agriculture in the past fifty years. Basically this is modernization, and it’s bringing with it the pain that modernization always brings to people trapped at the bottom.
I’d appreciate if some expert could chime in—this is just my read on the situation from casually following for the past month