Farmers have been actively protesting at New Delhi since 26th November. The farmers have been protesting against two Farm Bills that the Rajya Sabha recently passed – the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020, and the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020.
There are many questions that arise, why is this agitation happening? What can the government do? Is negotiation possible? All these queries will be addressed in this article.
What are these laws?
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 allows the farmers to sell their produce outside the Agricultural Produce Market Committee (APMC) regulated markets. The APMCs are government-controlled marketing yards or mandis.
Under this law, farmers are allowed to sell their produce to cold storages, warehouses, processing plants or even directly to the end consumer. The state government is not allowed from levying any market fee, cess or any other levy in these other market places (or trade areas). The Bill allows intra-state trade and inter-state trade.
The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020 makes provisions for the setting up of a framework for contract farming. The farmer and an ordained buyer can strike a deal before the production happens. This is essentially to create a framework for contract farming. This needs an agreement between the farmer and a buyer, before the production happens.
Why are the farmers protesting?
Farmers from the state of Punjab, Haryana and Uttar Pradesh are said to be in the forefront of this agitation. The area of major concern for the farmers is the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020. The issue is the vagueness of the law; farmers apprehend that implementation of these laws would result in demolition of Minimum Support Price (MSP).
The center’s control over the produce before its sold, is another issue. As Farmers would want no restrictions on the movement, stocking and export of their produce. This bill would keep a check on the monopoly of APMC Mandis and that exactly is the issue because the farmers of Punjab and Haryana, aren’t very convinced about the “freedom of choice to sell to anyone and anywhere” argument.
Most of government procurement at minimum support prices (MSP) of various kinds of produce like- paddy, wheat and increasingly pulses, cotton, groundnut and mustard — happens in APMC mandis. In a scenario where more and more trading moves out of the APMCs, these regulated market yards will lose revenues.
But this is just the supply side, but the government on the demand side, sells the rice and wheat thus procured at heavily subsidized prices under the aegis of the Food Security Act, through lakhs of ration shops under the public distribution system. So, while the big farmers of Punjab and Haryana might feel that the government will do away with procurement and MSP, it is not possible at one go.
Is negotiation possible?
There have been meetings going on between the Centre and farmer unions. Farmers have been demanding a repeal of the laws and withdrawal of the Electricity Amendment Bill, 2020 but it did not yield any positive result another meeting was scheduled for 3 December.
Farmers for the most part fear the future of these laws. This might lead to corporate farming or contract based farming. And also the demolition of MSP, which if not guaranteed might result to monopoly and exploitation of small farmers.
Way Forward
There is no other option than to gain confidence of the farmers and negotiate. Dialogue between the two parties will negate the vagueness of the bill and help both the parties understand the on ground situation and apprehensions.
Farmers are the backbone of Indian economy, hence, safeguarding their rights must be a priority for the government. There are questions for which answers will become clearer in the days to come.
