Why Farmers were Protesting over New Farm Bills?

Hello everyone you all might know about three new farm bills passed by the union government on 14th September namely 'The essential commodities (amendment) bill, the farmers (Empowerment and Protection) bill. The farmers produce trade and commerce bill '. Since these bills have been passed by the government including the opposition party farmers were opposing the bills. The farmers from different states have started the protest. So in this blog we will study why farmers were protesting.

Highlights:

* How the Delhi Chalo Protest was started?

* Only Punjab farmers were protesting: Reality

 *About farm bills: Provisions, weakness and doubts over the bills and possible solutions  

How the Delhi Chalo Protest was started?

From the September month only the agitation and protest were conducted against these laws in different states. As I mentioned earlier talk with farmers were held and the farmers have requested to the government to rethink about these bills but the talks were not successful .Even Bharat bandh was also called by the farmers. But the government response was not much. So after that farmers from different state with their farmers union have decided to protest in country capital to draw the attention of the government.

(image credit :zeenews.india.com)

Only Punjab farmers were protesting?

Many news channels were arguing that the protest was politically motivated and other things but many reginal and other media channels have reported that the Delhi Chalo protested was called by the All India Kisan Sangarsh Samithi, Kisan Mukthi Morcha and other many other farmer union and accordingly farmers from different states have stared the their journey but many of them were stopped at border of UP, Delhi and other routes from entering the Delhi. Punjab farmers have started their journey towards Delhi from 25th November and succeeded in reaching the Delhi borders. UP, Haryana farmers have also joined the protest. As we Know that majority of the Indian farmers were small holders are they were less aware of the farm bills. When it comes to MSP and procurement Paddy and Wheat holds the major portion and Punjab, Haryana and some part of U.P were major states to grow these crops and doubt over the MSP defiantly hit out these farmers .So these state farmers have took the lead in protest.

On 14th September the three farm bills were introduced by the union agriculture minister in the parliament. We gone look at the important provisions, the doubts and weakness in the bills and possible solutions.

1. The Essential Commodities (Amendment bill), 2020

(image credit :livemint.com)

Important provisions:

* The supply of food stuffs, edible oils and other essential commodities may be regulated by the government under war, famine, extraordinary price rise and natural calamity conditions.

* There will be freedom to produce, hold, move, distribute and supply will lead to harnessing of economies of scale and attract private sectors /FDI into agriculture sector. Overall this bill aims to remove fears of private investors of excessive regulatory interference in their business operations.

Doubts/ Weakness in the bill:

* Removing many commodities from essential commodities list may have adverse impact of public Distribution system (PDS).

*Government will not regulate the supply of these commodities means chance of hoarding by the traders by creating artificial shortage of supply which have direct effect on consumers. Due to bulk procurement by the large traders or hoarders the price of these commodities will jump at farm level.

Possible Solutions:

* Instead of removing many commodities from the list of essential commodities suddenly  government should have done it in the phased manner by seeing the impact.

* Instead of liberalizing the stock limit and other regulations to attract private entities government should have worked on PPP model in Public distribution system and in case of storage and distribution system.

2. The Farmers (Empowerment and Protection) bill, 2020

(image credit :newsclick.in)

Important provisions:

*There will be farming agreement for the minimum of one crop season or one production cycle of livestock and maximum period shall be of five years.

*Farming agreements may be linked with insurance or credit instrument under state or central govt. schemes or any financial providers to ensure risk mitigation and flow of credit to farmer or sponsor or both. Sponsors were prohibited from acquiring ownership rights or making permanent modification on farmers land.

* For any dispute settlement parties may approach Sub-divisional magistrate who has the authority in resolving the disputes.

Doubts / Weakness in the bill:

* There will be no action against the SDM or other authority in case of dispute settlement under this law. As many farmers were illiterate they don’t want to fall under these matters.

* As we know that contract farming is not that much popular in India and many contract MNC companies have cheated the farming community. Farmers don’t have faith in the companies.

Possible solutions:

* On paper the act was very promising and looking strong but the proper implementation and execution of the act is challenging.

* Government authorities, FPOs (Farmer Producing Organization) and other agencies should encourage the farmers to adopt contract farming through awareness programmes and other means by informing them about the benefits out of contract farming system.  

3. The Farmers Produce Trade and Commerce bill, 2020:

The most important and debated bill among three bills.

(image credit :India mart.com)

Important provisions:

* Under this bill farmers can sale and purchase the produce anywhere and this act will also promote barrier free inter and intra state trade outside the APMCs.

*Farmers will not be charged any cess or levy for sale of their produce.

* No suit, prosecution or other legal proceedings shall lie against the central or state govt. or any officer of state or central government.

* There is also propose of an electronic trading in transaction platform for ensuring seamless trading.

Doubts/Weakness in the bill:

* If farmers choice to sell their produce outside the APMC yard there is questioning on performance of the APMC mandies. This bill will directly affect the APMCs and their functioning.

* There is uncertainty over continuation of MSP even though government orally assuring that MSP will be continuing but in written form and in this law the things were not mentioned.

* We know that the e-NAM is online trading platform started by the government which is yet become more popular among the farmers there mention of starting of new   electronic trading platform. There is uncertainty over functioning of e-NAM.

* There is mention of no cess/ levy on farmer sale then who will bear these charges .There no clarification regarding these charges.

  Possible solutions:

* Government should  focus on the improvement in the APMC act and on upgrading the present APMCs with better infrastructure with modern storage facilities.

* Government  need to continue the MSP process and if at all government wanted to change anything in MSP it should be done only after detailed discussion with farmers and the experts.

* Government should work on the growth and popularity of e-NAM trading platform.

* The new private e-trading platforms will have adverse effect on e-NAM and the APMC mandies and other government regulated mandies will not be able to compete with private entities in long-term.   

 




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