Business World

Indian farmers end yearlong protests as government caves in

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INDIAN farmers, who continued their protests even after parliament repealed three contentiou­s farm laws, have finally decided to call off their agitation after the government accepted most of their other demands.

The farmers ended the strike after Prime Minister Narendra Modi’s government agreed to form a panel to consider guaranteed crop prices across the country, withdraw cases lodged against growers in various states and compensate families of the people who died during the protest, said farm leader Yogendra Yadav.

“We will again meet on Jan. 15 to see whether promises made by the government are kept or not, and after that, we will decide how to proceed further,” said Mr. Yadav. Farmers will start vacating the protest sites from Saturday after a victory march, he said.

The end of the agitation, which started in late 2020 and killed about 700 protesters, may bring relief to Mr. Modi ahead of five state elections next year. The repeal of the laws, his biggest policy reversal since assuming power in 2014, holds significan­ce as farmers form a powerful voting bloc in the country, with 60% of its 1.4 billion people dependent on agricultur­e for a living.

The rollback has also signaled the government lacks the stomach to push through tough reforms when faced with popular resistance. The three farm laws would have eased rules around the sale, pricing and storage of farm crops.

Despite the repeal of the farm laws last month, the farmers continued to push ahead with their key demands that included setting up of a mechanism to ensure farmers get minimum support rates for all harvests.

The government earlier said it’s difficult to adopt a universal price guarantee system as any such move would involve a huge budgetary expenditur­e. It currently fixes the rates for about two dozen farm commoditie­s, including some grains and pulses, and procures limited volumes for its welfare programs at those levels. Private players buy farm goods at market-determined prices.

The highly-coordinate­d and largely peaceful agitation, one of the longest protests India has witnessed since its independen­ce in 1947, saw hundreds of thousands of farmers gathering along arterial roads into the capital and other cities. —

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