India's new farm laws have "potential to represent a significant step forward" for reforms in the agriculture sector, the International Monetary Fund has said. The international body, however, added that people who could be affected the most due to the transition to the new system should be adequately protected.
The IMF remark comes on a day when Union Ministers and farmers are set to meet for a ninth time to find a solution to the demands of farmers, who among other conditions want the laws withdrawn completely.
"We believe the farm bills do have the potential to represent a significant step forward for agricultural reforms in India," IMF communications director Gerry Rice told reporters in Washington on Thursday, news agency PTI reported.
"The measures will enable farmers to directly contract with sellers, allow farmers to retain a greater share of the surplus by reducing the role of middlemen, enhance efficiency and support rural growth," Mr Rice said.
"The measures will enable farmers to directly contract with sellers, allow farmers to retain a greater share of the surplus by reducing the role of middlemen, enhance efficiency and support rural growth," Mr Rice said.
"However, it is crucial that the social safety net adequately protects those who might be adversely impacted during the transition to this new system," the IMF spokesperson said, adding this can be achieved by ensuring that the job market welcomes those that are impacted by the reforms.
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