Modi magic works for farmers

New Delhi:The farmers continue to agitate over the game-changing farm laws. The Modi Government is ready for dilution or modification but not ready to repeal them. Modi has surprised all with an refurbished and ambitious trade pact with the United Arab Emirates. This is likely to pave way for a rethinking by the protestors. The UAE will invest a whopping 7 billion USD in a food processing complex in India over the next three years. They will purchase food grains, fruits and vegetables directly from about 22 lakh farmers in MP, UP and Gujarat. Moreover, value added products will be exported to Gulf countries through an exclusive food corridor. This deal will open up vistas for large-scale contract farming on a large scale. As part of this, as many as eight high-profile food processing units will be set up in Madhya Pradesh, Maharashtra and Gujarat. According to Dr Ahmed Al Banna, Ambassador of UAE to India, the food corridor projects will help triple the export of agriculture products and food products. The volume of exports of food and agriculture products would increase from India to UAE from the current $ 2.2. billion to $ 7 billion in the next three years. Dr Aman Puri, Counsel General of India in Dubai feels the partnership can strengthen food security in the entire Middle East and North African region. He feels it for the first time ever that India is utilising the immense and untapped potential in the agriculture and food sector through a bilateral tie-up. The trading platform will help rural farmers in a big way, thanks to the new norms easing their businesses. The rural farmers of India’s food basket state of Punjab can directly connect with UAE importers. The cooperation between the two countries would also extend to managing the food supply chains. Further, the Dubai Multi Commodities Centre and DP World are exploring possibilities of tie-ups in agriculture trading platforms. The new scheme by name "AGRIOTA" is expected to boost food exports from India. The new deal is an extension of a US $3 billion tie-up planned in 2019, as part of the UAE-India food corridor project that aims to secure the Gulf country’s food security needs. Once launched, the food corridor is expected to benefit about 20 lakh farmers. That apart, it would create an additional two lakh jobs in the logistics infrastructure and agricultural sector. The farmers will also be benefited from the new Production Linked Incentive (PLI) scheme. This should have happened from early-to-mid 2020, but for the Covid-19 restrictions. Now, Modi is striking again in a big way.

Back to Top