Farouk Gumel - Why is the Indian farmer protest important for Africa’s agricultural policy_ 
                     Why is the Indian 
farmer protest 
important for Africa’s 
agricultural policy?
Farouk Gumel, Nigeria
Farouk Gumel -  
Recently, the media has been reporting about 
massive farmer protests in India against the 
implementation of certain agricultural reforms 
in Nigeria. The protest started on 9th August 
2020 and most of the protesting farmers are 
from India’s two largest agricultural producing 
states (Punjab and Haryana). It is reported 
that these States are the largest beneficiaries 
of the Indian Government’s Green Revolution 
reforms. 
The first important point to note is the farmers protesting outside New Delhi are among 
the wealthier farmers in the country who are the major beneficiaries of Government 
interventions including the Minimum Support Price (MSP), the Indian government’s grain 
procurement program which provides offtake assurance through government-regulated 
physical markets. So the views of these large players may not be a fair representation of 
the millions of smallholder farmers in India. 
The reforms proposed by the Indian 
Government comes are covered in three (3) 
new laws and, according to the Government, 
are meant to create a more level playing field 
by developing a framework for private traders 
to purchase crops directly from the farmers 
and bypass government marketing boards. 
Below are some of the issues the protestors 
are raising;
• The first law, The Farmers’ Produce Trade and 
Commerce (FPTC) Act, offers farmers a greater 
choice in selling their produce. Under the act, 
farmers now have the option to sell outside the 
government-regulated physical markets, 
Agricultural Produce Marketing Committees 
(APMCs), to private channels, integrators, or 
cooperatives. They can now do this through a 
physical market or on an electronic platform, 
directly on their farm, or anywhere else, not 
just at designated APMCs. Essentially, the law 
provides more options to small farmers without 
compromising the avenues already available. 
2. The second law, the Farmers (Empowerment and 
Protection) Agreement of Price Assurance and Farm 
Services (AFPS) Act, is a simplified and improved 
version of the Contract Farming Act that has already 
been adopted by 20 Indian states. Contract farming 
acts as a form of price assurance as whatever price 
was agreed in a contract must be honoured after 
harvest. The new law is intended to insulate farmers 
against the market and price risks so that they can 
cultivate high-value crops without worrying about 
market fluctuations that could lower prices in the 
harvest season.
3. The third law, the Essential Commodities 
(Amendment) Act, is a modification of the Essential 
Commodities Act that lays down transparent criteria 
for the price triggers behind government decisions to 
regulate the supply of essential commodities under 
extraordinary circumstances.
From the above, it looks like the reforms are meant to 
make life easier. The Indian government argues that 
the deregulations will increase efficiency, allow 
farmers greater freedom and let farmers negotiate 
better prices for their crops. Under the old 
arrangements, there were middlemen in the system 
who would buy grain from farmers, keep a healthy 
margin for themselves, and then sell it at inflated 
prices to retail markets and consumers. Some have 
claimed that these middlemen, who will lose out from 
the changes, are actually behind the protests, rather 
than farmers who stand to benefit.
But the protesting farmers say these reforms will 
devastate their earnings as it will end the MSP 
program, a safety net that assures farmers that they 
will be paid a certain price without regard to market 
conditions. So a balance needs to be struck. 
The Indian government is in talks with all stakeholders on this matter. 
Farouk Gumel, an Executive Director at TGI Group, a pan African conglomerate has been monitoring these negotiations closely.  
Farouk Gumel, whose company owns and manages food production facilities, explains TGI’s factories are constantly exposed to price and volumetric 
volatilities in their raw material supply chain. In the last 3 years of the existence of TGI’s rice mill, Farouk Gumel says they have seen huge swings in 
paddy prices and availability which is raising concerns when it comes to planning for future investments. Such swings, according to Farouk Gumel, “can 
only be eliminated with strong, reliable and consistent raw material supply with predictable pricing”. 
• Farouk Gumel concludes that the Indian case study should be monitored closely by African nations. 
• He states “Many African countries have or are in the process of introducing MSP programs. Many African food companies use outgrowers, under contract 
farming arrangements, to meet their input supplies. 
• Many countries and marketing boards are looking to set up pricing models for essential commodities”. Farouk Gumel remains confident that a balance 
will be struck between the Government and Market-driven agricultural forces or which African leaders can replicate to meet their food security needs. 
Farouk Gumel
Group Executive Director and Head of Agri-
Businesses for Tropical General Investment 
(TGI) Group.
THANK YOU!!