WHAT IS THE FARM BILL FUSS ALL ABOUT?
On 27th September, 2020 His Excellency the Hon’ble President of India gave his assent to the three ‘Agriculture Bills’ that were earlier passed by the Indian Parliament: 1> Farmers’ Produce Trade and Commerce (Promotion and Facilitation Act), 2> Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020, and 3) Essential Commodities Amendment Act, 2020. In short, FPTCPFA provides for intra and inter-state trade of farm produce beyond APMC; FEPAPA is about Contract Farming; and, the amendments to the ECA is for delisting some food items, during exigencies. During the Corona pandemic period, the Govt of India came up with an Ordinance to make necessary amendments to the Essential commodities Act. The name of the Ordinance ”The Famers Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020”. Two other legislation one by the name “the Farmers (Empowerment and Protection Agreement on Price Assurance and Farm Services Ordinance, 2020” and another by the name the Essential Commodities (Amendment) Ordinance, 2020 was passed during the monsoon session of the Parliament. Collectively the three of these called the Farm Bill 2020.
WHY WAS IT NECESSARY TO BRING AN AMENDMENT TO ESSENTIAL COMMODITIES ACT
AND THAT TOO BY WAY OF AN ORDINANCE?
Ordinances are bad. Ordinance is detrimental to the legislative framework as it by passes the legislature. A bill in order to become a law is introduces in the parliament (read Lok Sabha and the Rajya Sabha) and then it is scrutinised and discussed in the house. Questions are answered and concerns are addressed. Ordinances by-passes all these. The Supreme Court in its various judgments has condemned and discouraged the practice of coming up with ordinances as it is more autocratic.
SO, WHY DID THE CENTRAL GOVERNMENT HAS TO COME UP WITH AN ORDINANCE
THAT TO AN IMPORTANT ONE RELATED TO AN ESSENTIAL COMMODITIES ACT?
The answer is, because it was important. At the time of passing of the ordinance the entire country was under self imposed lockdown. The corona pandemic brought unprecedented challenges and it could not be expected that the people’s representatives could be complacent and attend a parliament session during such tough and challenging times. Therefore, it was absolutely necessary to bring an ordinance. The Ordinance was subsequently notified as Law.
WHY AN AMENDMENT TO THE ESSENTIAL COMMODITIES ACT WAS REQUIRES?
The Essential Commodities Act is a colonial price of legislation which restricts the hoarding of goods for proper public distribution. It is of no surprise that Cement used to be once under the purview of the Essential Commodities Act. Contemporaneously, is it only stapled food, pulses, and cereals that still fall within the schedule of the Essential Commodities Act. Everything else which once was the part of the list has gradually been de-listed. During the lockdown period, the Government observed that there is scarcity of necessary goods in different pockets of the country because of the restrictions imposed by the Essential Commodities Act. Bringing the transit network to a halt during lockdown, further added to the woos. It was then realized that even readily available commodities were still languishing in the schedule of The Essential Commodities Act and therefore, its adequate supply and storage was not feasible uniformly across the Country. It was in such scenario the Central Govt. was prudent enough to bring a determinant change to the colonial legislation and bring negative restrictions regarding the applicability of the Act. Simply put, the Act was amended to an extent that allowed the storage of commodities except in the case of war, disaster and pandemic. This is a welcome decision, not only momentarily but also as a long term impact. It is a well known fact that unrestricted movements have always bettered the condition rather than control.
WHAT WAS THE NECESSITY TO INTRODUCE CONTRACT FARMING?
If Contract Farming is a problem, then how have farmers from Punjab and Haryana earning so much where contract farming is prevalent from the late 80s.
There is no law in India that prohibited contract farming before the impugned Act. Contract farming was always there and was mostly unabated and unrestricted. This Act simply puts a framework behind an already existing practise. What the farmers were otherwise doing without any controlled mechanism is now part of the legislation for their betterment. The Act by providing govt. Sanction to such contract has ensured no foul play against the destitute farmers. Otherwise, the parties are free to enter into an agreement as there always were even before the impugned legislation came into effect. It is beyond understanding how putting a regulatory framework upon all future contingent agreements in the nature of an improvement from the nonexistent regulatory regime may be subjected to condemnation.
WHAT IS MSP, APMC AND BAZAR SAMITY AND WHAT ARE THE FARMERS
APPREHENSIVE ABOUT?
MSP is a Minimum per quintal Support Price that the Government guarantees to buy the agriculture produce at, twice a year during the Rabi and the Kharif season. The new Act does not take away the MSP or the minimum guarantee. It simply adds an additional option to produce to sell the agriculture produce outside the APMC and Bazaar Samity. APMC and Bazar Samity are the purchase point where the agriculture produce is purchased from the farmers. Only the 17% of the farmers go to APMC and Bazar Samity to sell their produce on MSP. 83% of the farmers any which way never go to the APMC and Bazar Samity and sell their produce directly in the market. Therefore, a legislation that legitimises an existing practice already inherent in 83% of the farmers, by selling their produce outside APMC at a rate of their choice cannot be bad at law. The Govt. has already reassured and reiterated that the MSP system is going to stay and any such apprehension is purely speculative. Therefore, there is no fault in these legislation and the farmers should not be denied of an additional opportunities of sale. It’s like you can sell from the local store and online, where it makes more monies.
But politics is all about issues and no political party can afford to be issueless. Whose side the voters in general and the farmers in particular vote for is an outcome of the result in the assembly election. But none of the political parties, at this point can lower their gun on hot political issue that directly touches the farmers. Although, agriculture contributes 16% to the GDP, 63% of our population is directly impacted by any legislation around agriculture and agriculturist. This is a big fat vote bank and political parties can hardly afford to let it go.
The opposition parties are not ever remotely bothered or connected with the destitute farmers. Since independence, the income of the farmers has multiplied at around 16 times. Whereas, just as a comparison, the salary of central govt. employees has multiplied by around 23 times. The Modi Govt. is committed towards doubling the income of the farmers by 2022 and the farm bill 2020 is the most vital link to it. It is an irony that those who couldn’t do anything remarkable for the agriculturists are cring foul when the MIDDLEMENS are turning irrelevant.
THEN WHY FARMERS FROM PUNJAB ARE PROTESTING?
Soybean farmers in Maharashtra have benefited to get more out of APMC deals. In the last three months, MahaFPC, the umbrella body of farmer producing companies (FPC) in Maharashtra, estimates that since the laws were enacted in September, FPCs in four districts have made worth Rs 10 crore from trade outside mandis.
Farmers shouldn’t be on roads and away from home when it’s chilling. It is a fact and a matter of concern that Farmers from Punjab are protesting. Framers from other states like UP and MP (Rank 1 and 2 in farm produce and way ahead of Punjab) are not protesting. Farmers in Maharashtra and Tamil Nadu have welcomed the Farm Bill. So, why are the farmers of Punjab who cough out a 2.5% commission for every transaction or 3,330 Crores per year just for Wheat and Paddy every year to Arthiya (also known as Ardhali = Middlemen) are protesting?
Some answers are better not spoken but needs to be figured out.
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