FARMER PROTEST: THREE ACTS OF FARM BILL, 2020

Hello everyone,

        Farmers and agriculture are the requisite factors for India and luckily we are recognized as an Agricultural Country. Farmers had contributed a lot to maintain the economy of our country and the Government had also prepared some acts and laws to benefit the farmers. Though, in recent times, we are witnessing a tremendous contradiction against the central government by the farmers of Punjab and Haryana. The protest has been going on for two months, which went partially unnoticed. But recently, the protest drew the attention of the whole country. We will be discussing the three laws and reasons for protests that are going on at the Delhi border.

The Three Laws:

1) The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020

Statement: The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 is an act of the Indian Government that permits intra-state and inter-state trade of farmers’ produce beyond the physical premises of Agricultural Produce Market Committee (APMC) market yards (mandis) and other markets notified under state APMC Acts. (Source: Wikipedia)

        Now, let’s understand what The Farmers’ Produce Trade and Commerce act states: It allows farmers to sell their crops or produce outside the APMC (Agricultural Produce Market Committee). The purpose of this act is to encourage farmers to sell their products to others like warehouses, cold storages, silos, and private players like big corporate companies. Also, the objective of this act is to enhance the engagement of farmers with private players without the government being involved. The role of government until now was like middlemen between farmers and corporates--- and this act aims to end the middle-manship from the government. The government were facilitating farmers with Minimum Support Price (MSP) in APMC.

What is the Minimum Support Price (MSP)?

        MSP is the price set by the Government of India for certain produce or crop to purchase directly from the farmers. This ensures farmers have minimum profit for their harvest. This is a safeguard for all the farmers.

Problem: Before discussing the issues with this act, let me tell you one fact. The benefit of MSP announced by the government is hardly availed to less than 10% of farmers. The farmers believe that the trade outside APMC will reduce the significance of APMCs. The farmers of Punjab and Haryana are afraid that MSP will end and APMC will become non-functional due to this act. The safeguard will end and the farmers won’t be benefitted by MSP through the government.

        This problem arose due to trust deficiency between the government and farmers. The government had not cleared anything about the continuation of MSP that’s why the farmers are protesting.

2) The Farmers (Empowerment and Protection) Agreement and Price Assurance and Farm Services Act, 2020

Statement: The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 is an act of the Indian Government that creates a national framework for ‘contract farming’ through an agreement between a farmer and a buyer before the production or rearing of any farm produce. (Source: Wikipedia)

This act has opened a way for contract farming. Let’s understand what Contract Farming is?

        Contract Farming is a deal between Corporate Companies and Farmers. Under this deal, the Corporate Company or investor will ask a farmer to grow a certain crop or produce in their fields. The price for that particular product will be decided at the same time while making the deal. The Corporate will also be responsible to provide technical assistance and seedlings to the farmers.

        As the produce gets ready, the company will buy the produce at a predefined price regardless of the increase or decrease in particular produce in an open market. If produce fails then Corporate Companies will get compensation from Insurance companies.

Problem: The same issue about MSP mentioned above repeats itself here. Also, one other issue farmers are really worried about is legal contract and deal-making. Poor or small farmers are not able to hire a lawyer if anything goes wrong during a contract. Even many farmers can’t even read but somehow manages to grow crops with hard work. They won’t stand a chance to fight against big companies and conversely, they will be sued.

        Although, there have been some arrangements made for the protection of farmers where they can go to the District Magistrate for any case. But, farmers are afraid that these arrangements are not enough and that’s why the farmers are protesting.

3) The Essential Commodities (Amendment) Act, 2020

Statement: The Essential Commodities Act (ECA) is an act of the Parliament of India that was established to ensure the delivery of certain commodities or products, the supply of which, if obstructed due to hoarding or black marketing would affect the normal life of the people. This includes foodstuff, drugs, fuel (petroleum products), etc. (Source: Wikipedia)
 

According to this ECA law, the government is permitting to store the essential commodities (cereals, pulses, oil, and foodstuff) beyond limits. The government settled a limit for storage and no storing of an essential commodity was allowed beyond certain limits.

What is an Essential Commodity?

The Essential Commodity refers to those products which are crucial for people and are used in daily life. It includes foodstuffs and grains, pulses, etc.

Problem: The issue for this act is that traders will benefit from not having any limit upon essential commodities--- which will encourage them to store the produce for a long time until the price goes up. As the price will go up traders will start selling it at the highest price. This will result in nothing but inflation and that’s why the farmers are protesting.

Conclusion: The laws are good enough for farmers’ benefit but also have large loopholes. These loopholes should be taken into consideration and should be solved to protect our farmers. Farmers want total cancellation of these acts--- which is nearly impossible. Although, there is a way by which both farmers and government can find a way. The settlement can be done by conversation and negotiations and not by tear cells and water cannons. Also, the farmers should protest peacefully and should not harm any public property.