Skip to content
Search

Latest Stories

News

Farm to (negotiating) table in India

People hold placards during a nationwide strike to protest against newly passed farm bills, in Mumbai, India
Make us preferred on Google

In recent days, tens of thousands of protesters have descended on the capital of the world's fifth largest economy as part of a political fight that directly affects the livelihoods of more than 600 million people.

This drama is unfolding in India, where a series of reforms to decades-old agriculture laws has touched off a major political crisis. Farmers streaming in from the country's breadbasket regions have blocked roads and set up encampments in New Delhi to demand that the government scrap the new laws. Yesterday, they called a nationwide strike.

In a country where nearly 60 percent of the population of 1.4 billion people depends on farming to earn a living, this is an issue with huge repercussions for the country's popular prime minister, Narendra Modi.


What's the back story? Under a system set up by the socialist-leaning governments that held power during the first decades of India's independence, farmers have long been required to sell their harvests to state warehouses, which guarantee a set minimum price in return. To make the system more efficient and market-driven by ensuring that supply responds directly to actual demand, the government recently passed laws that allow farmers to sell to whomever they like.

Allowing farmers a greater choice of buyers might sound appealing, and supporters of the new laws say they will attract more and better investment in the sector. But many farmers' groups are angry. They say they weren't sufficiently consulted about the law and, crucially, that without the guarantee of state purchases and prices, they'll be at the mercy of large agriculture companies that can force down prices to levels that make it impossible for them to make a living.

It's a classic case of market-oriented reforms that offer the promise of more prosperity and efficiency on a broad level, while also raising individuals' fears about their own economic security and future.

For context, more than 80 percent of India's farmers are small-plot tillers who eke out a very modest living. And droughts, floods, and underinvestment were making their lives harder even before the coronavirus pandemic kneecapped the economy: last year, some 10,000 Indian farmers committed suicide.

So far, talks between the government and farmers groups have gone nowhere. The government says it's willing to revise the laws, but farmers insist on scrapping them entirely and starting from scratch.

Prime Minister Modi has to tread carefully. This is heartland politics, and unlike last year's citizenship law protests, farmers' grievances are harder for Hindu hardliners of the BJP, India's ruling party, to ignore or quash on nationalist or sectarian grounds.

Modi has, of course, recovered from many reform missteps. His decision to squeeze black markets by abruptly removing most paper currency from circulation in 2016 caused widespread confusion and produced little benefit. His historic attempt to streamline the national tax system ended up more fragmented than promised. His moves on citizenship laws and the massively disruptive short-notice coronavirus lockdowns earlier this year both seemed politically perilous at the time. Yet, he and his government remain broadly popular – Modi's approval rating is above 70 percent.

Will a mass protest by the people who feed India damage Modi more than these other misadventures did? Those tractors parked in New Delhi don't look like they're going anywhere soon.


CORRECTION: An earlier version of this piece incorrectly stated that the currency move was done in 2017 -- the measure was actually implemented in December 2016.

More For You

Fewer migrants, but deadlier journeys to Europe
Will Fitzpatrick
The number of migrants and refugees reaching the continent by sea has dropped sharply this year as many European countries tighten their immigration rules. But despite fewer crossings, more migrants have died. Nearly 2,300 people have died or gone missing in the Mediterranean and Atlantic, up from roughly 2,000 during the same period last year, as [...]
Followers of the Shi'ite Houthi group ride on a truck at a gathering near the Yemeni capital Sanaa August 20, 2014.

Followers of the Shi'ite Houthi group ride on a truck at a gathering near the Yemeni capital Sanaa August 20, 2014.

REUTERS/Khaled Abdullah
The Saudis ask China for help“Hi, China, it’s Saudi Arabia, could you tell Iran to ask the Houthis to chill out?” That, in so many words, is the current telephone game amid intensifying attacks by the Iran-backed Houthis on Saudi oil export routes. With the US seemingly unable to contain the regional consequences of its war on Iran, China is [...]
A woman walks past a billboard, displaying portraits of Moscow Mayor Sergei Sobyanin and Deputy Chairman of the State Duma Pyotr Tolstoy and promoting the United Russia party ahead of the upcoming parliamentary election, near the Moscow International Business Centre in Moscow, Russia.

A woman walks past a billboard, displaying portraits of Moscow Mayor Sergei Sobyanin and Deputy Chairman of the State Duma Pyotr Tolstoy and promoting the United Russia party ahead of the upcoming parliamentary election, near the Moscow International Business Centre in Moscow, Russia, September 15, 2026.

REUTERS/Ramil Sitdikov
Why does Vladimir Putin even bother with elections? It’s a fair question to ask as Russia goes to the polls this weekend for nationwide local and parliamentary votes in which the outcome is certain. The ruling United Russia party, closely associated with Putin himself, polls at nearly 40%. Its closest competitors, a small handful of occasionally [...]
U.S. President Donald Trump arrives with incoming Federal Reserve Chair Kevin Warsh for Warsh's swearing-in ceremony at the White House in Washington, D.C., U.S., May 22, 2026.

U.S. President Donald Trump arrives with incoming Federal Reserve Chair Kevin Warsh for Warsh's swearing-in ceremony at the White House in Washington, D.C., U.S., May 22, 2026.

REUTERS/Jonathan Ernst
This week — Independent institutions: 2, Trump: 0The US president took two big domestic losses this week. First, the Supreme Court ruled against his demand for restrictions on mail-in voting in the upcoming midterms. The stinger? All three Trump-appointed justices sided with the decision. “These are not the people I interviewed,” he griped on [...]