Ruinous Drive to Throw Agriculture to ‘Market Forces’
A central tenet of neoliberalism is that ‘free’ markets, unencumbered by organised social intervention (whether by the State, trade unions, or other popular organisations), efficiently allocate resources. Accordingly, the neoliberal prescription for resolution of virtually all economic problems is further free-market ‘reform’, requiring the withdrawal of the State from public investment and regulation of the economy. This prescription is ruinous for all sectors of the economy, and so too for agriculture.
In the following, we briefly sketch the following: why public sector investment and intervention in agriculture has taken place in the past in India; the present neoliberal drive to further withdraw the remnants of such investment and intervention; the ruinous effects already experienced over the entire liberalisation period; the significance of public sector investment even for private investment by the peasantry; and the particular importance of public sector investment and institutions in the face of impending climate change.
Market forces are hardly alien to India’s agriculture. Millions of small producers sell a part or the whole of their output to private traders, who then sell most of it to petty retailers, who in turn sell it to consumers. Hardly a day passes without the newspapers informing us of either a crash in the prices peasants receive for one crop or the other, or a steep rise in the prices consumers pay for vegetables or pulses. Moreover, domestic market forces are integrated with global ones: With the opening up of India’s agricultural markets post-WTO, agricultural prices on the world market directly influence the prices received by Indian producers.