Should MNC be Allowed to Invest in Agriculture Sector? Private sector these days have been supporting the nation in various sectors. But a big question is emerging that whether MNCs should be given permission to support agriculture sector or not. This question divides the debaters in two groups.
- Positive Feedback From other Sectors– Multinational companies have proved to be good in other sectors like Defense (like TATA, Ashok Leyland and Reliance is also trying to get involved), Nuclear sector (deal between French AREVA and L&T), Banking and many other sectors. So, it can be a good decision and like other sectors we can hope for positive outcomes.
- Big Part of Population Related to Agriculture – About 50% of the Indian population is related to agriculture sector. Recently a report has been released disclosing that 51% of the total people below poverty line in Rajasthan belong to agriculture to sector. So they need a proper care.
- Vacuum in Government Policies – After crop damaged in various parts of the country in the beginning of this year, farmers saw the clear image of government’s help. In UP, government distributed cheques of Rs. 50-70 as compensation to those who had faced crop failure. So MNCs must be given a chance to handle this situation. Private companies can do the grievances and redressal task more efficiently.
- Improve the Technology to Ease Efforts – Introduction of MNCs in agriculture sector will surely lead to the import and use of new technology in agriculture and will reduce the human efforts in agriculture. New advance technology, better funds for irrigation and better knowledge of farming will obviously help in development of this sector.
- MNCs Providing Insurance will Overcome Farmer Suicide Rate – The rate of farmer suicide in many states like UP and Maharashtra has escalated this year and has been a problem from long time. If MNCs will provide easy insurance to farmers then this problem can be solved.
- Can Increase Price – Well, the basic theory of MNCs on which they work is “profit”. Introduction of MNCs in agriculture sector is expected to increase the food commodity price. This will increase a burden on middle class and lower class family’s budget.
- Treating Farmers as Employees – The profit oriented attitude of companies will result in harassment of farmers. If they got profit they will continue better behave but if they face loss, they will sue it from farmers.
- Agriculture Affected Mostly by Climate – MNCs may improve the condition of farmers if climate remains in their favor. But as India’s agriculture is mostly governed by weather and climate which is the base of cultivation. If weather goes against farmers then they have to get prepared for future situations including company’s criticism.
Agriculture is the most favored profession in India, as more than half people of India is engaged in agriculture and they require special treatment because they are the reason behind making India green. As every issue has merits and demerits, this issue also has some likes and dislikes. Well they deserve a salute for farming in tough conditions and continuing it even after failure of their crops. MNCs have done a great job in modernizing many sectors and be beneficial for agriculture sector too. But it needs a surveillance body over it to watch their actions. The development of people belonging to agricultural sector is necessary as it is the base of the country and constitute a large part of Indian population.