Five round of talks between the government and farmers since November have failed to halt the blockade, with the protesters continuing to insist that the laws be repealed.
The protesters erupted with joy and immediately began lifting the blockades that had choked many stretches of the north-south Pan-American Highway.
Farmers from the northern states of Punjab and Haryana, neighbouring New Delhi, have been at the vanguard of the agitation since last month, and have set up protest camps in and around the capital.
A government official said on Wednesday that the government is considering amendment in new reforms that have sparked protests by farmers fearing the end of guaranteed crop prices but it will not abandon the plan.
Thousands of protesters have camped on the outskirts of New Delhi and blocked national highways for over three weeks to protest against new laws that the government says would increase farmers’ income through more private investments.