Farm Bills 2020

This article talks about the new bills and amendments introduced in existing laws for farm sector of India. It discusses the pros and cons of Farm Bills 2020. It also discusses the causes of opposition against these provisions and stand of government in response to these protests.

Introduction

Farm Bills

Opposition against Farm Bills

Stand of Government

Conclusion

Introduction

Since decades, Indian agriculture sector needs major reforms. Though governments have proposed and enacted various laws for betterment of Indian farm sector but conditions of farmers did not improve to the expected level. Current government has also attempted to bring reforms in agriculture sector. These attempts are reflected in form of three legislative bills of 2020. These bills are collectively called as "Farm Bills".

Farm Bills

There are three bills impacting farming sector. They are collectively popular in news by the name of "Farm Bills". These bills are:

Essential Commodities Act, 2020

This bill proposes removal of some food commodities like cereals, pulses, oilseeds, potatoes, onions etc. from the list of essential commodities. This will also end any restrictions imposed on stock holding of such items except under extraordinary circumstances. These extraordinary circumstances are war, famine, extraordinary price rise and natural calamities. It aims to bring price stability and attractive private investment & FDI flow to farm sector. It also to liberalise the farm markets in the hope that it will make the same more efficient and allows for better price realisation for farmers.

Farmer's  (Empowerment and Production) Agreement on Price Assurance and Farm Protection Services Bill

This bill draws a framework for contract farming. It allows farmers to enter in to a contract with agriculture business firms, processors, wholesalers, exporters or large retailers for sale of future farming production at a pre decided price. It seeks to transfer the rise of market unpredictability from farmers to sponsors. The idea behind this bill is to bring high investment flow from private sector to agriculture. It will boost farmer's income by giving them access to modern technology and better inputs.

Farmer's Produce Trade and Commerce (Production & Facilitation Bill)

This bill seeks to bypass APMCs (Agricultural Produce Market Committees). Currently farmers are bound to sell their produce only in APMCs. New legislative bill allows farmers to sell their produce anywhere even outside APMCs. Farmers will not be charged any cess. It aims to facilitate remunerative prices to farmers through competitive alternative trading channels. It will open choices for farmers and reduce marketing costs. Overall it's major benefit is better price realisation for farmers. Another advantage is that it will help farmers of regions with surplus to sell their produce in regions of shortage.

Opposition against Farm Bills

According to Shanta Kumar committee, only 6% farmers get access to MSP (Minimum Price Support) and majority of such farmers belong to states of Punjab and Haryana. That is why major protests were witnessed in these two states. Let us understand in detail the problems associated with each bill individually:

Farmer's  (Empowerment & Production) Agreement on Price Assurance and Farm Protection Services Bill allows contract farming at large scale. Though contract farming is already being done since 2012 but such contracts at large scale give opportunities to companies to take multiple villages for farming the agri produce of their choice. The terms of such agreement will be decided under mandi official (official of APMC). Instead of mandi official, if village headman were authorised to finalise terms of agreement then it could be more in favour of villagers or farmers. Apart from this, a predecided price though brings price assurance for farmers but due to inflation at the time of actual sale if price of crop increases then farmers would have to sell their produce at predecided price. It is a loss for farmers. Other major flaw in this bill is that if a company is not able to pay or does not pay intentionally then who will settle this dispute. MSP regime should also be applicable for private players.

Farmer's Produce Trade and Commerce Production and Facilitation Bill) gives freedom to farmers to sell their produce outside notified APMC market yard. But 94% farmers are already selling their produce outside APMCs. Opposition against this bill claims that in few years APMCs will get shut down because everyone would like to buy outside Mandis due to non imposition of any cess or tax.

Farm bills are being criticised and it is alleged that it is a ploy of government to get away from its traditional role of being guarantor of MSPs as MSPs work in the formally regulated mandis (APMCs) not in private deals.

Stand of Government

Government says that APMCs will not be shut down. It clarifies that MSP regime will be continued and it will not be taken away.

Conclusion

Farm bills brought in much needed reforms but the way of passing the bills raise questions. Bills were forced through the parliament and demands for discussion, division of votes or reference to a selection committee were not considered. Passing of bills by voice vote generated criticism. It demonstrates bulldozing of opposition which is undemocratic. Due to pandemic, parliamentary schedules have been shortened. If government uses this short time for pushing the bills forcibly without adequate discussions and deliberations,  parliament would become a mere clearing the house for bills. The role of parliament is to hold government accountable. This role should not be diluted. Efforts should mw made to settle down the differences and a  common ground should be forged. Farm bills do not merit fears. Only monopoly of APMCs need to be dismantled. Bills will duly put in place an enabling architecture for much needed reforms. Miskiddings of opposition and protesters need to be addressed. Clear communication is needed. Government should be willing to listen voices of opposition.

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