Haanji,
As we all know that farmers are one who plays an important role in our life. Farmers are the one who works day and night in their farm to feed us and provide crops and livestock. Farmers are the backbone of the agriculture sector which earns nearly 15% of the GDP of our nation. But in recent times the farmers are fighting for their rights, what problems are they facing? Why Farmers are protesting? I am sure that most of you don’t have any idea what’s going on. So before we start, Let’s have a look in History for some basic kick start. GREEN REVOLUTION: It is a term used in the agriculture sector during the 1960s and it was first introduced by M.S. Swaminathan as a developmental program for agriculture in Punjab, India. At this time traditional methods of agriculture were converted to an industrial system by using some modern technology. The motive of the Green Revolution was to increase crop production by using some of the high-yielding and dwarf seeds. This revolution leads to many improvements in the agriculture sector like an increase in agricultural production and productivity, farming changes from traditional methods to modern methods, and there was an increase in farmer's income. An increase in farmer's income leads to more savings which can be used for the development of the country.
But this revolution was not so insignificant in some regions but it made a remarkable impact in states like Punjab, Tamil Nadu, Maharashtra, Haryana, and so on. At this time India was one of the nations that were self-sufficient in terms of the production of crops. And at this time the allocation of Minimum Support Price (MSP) and other subsidy services for various crops was started.
But this revolution also brought the economic difference between rich and poor farmers. As rich farmers were investing money in fertilizers and adapting modern technologies and growing more crops whereas poor farmers were stuck at traditional farming as they were lack of money and resources so the quality of the crops was not so good and they used to get less money for that crop or they used to get only MSP. As a result, they have to take loans and owe money from other rich farmers or landlords if they don’t pay then they have to lose their land and some of them were give-up on their life (from here farmer suicide was the serious emerging problem).
Then, what makes them come on roads for protesting? what is the reason that farmers from other states are joining protests too, which was only initiated by the farmers of Punjab and Haryana? Do Farm Bills contain any Loopholes? Let’s see what is the reason:
On 14 September 2020, Three Farm Bills were introduced in Lok Sabha by Minister of Agriculture and Farmers Welfare, Narendra Singh Tomar.
Here two bills (Act No. 20 of 2020 and Act No. 21 of 2020) were newly form and one bill was renewed (Act No. 10 of 1995). And these bills were passed by the Indian Parliament on 24 September 2020 & 26 September 2020. Now the question is what are that bills about, that make Farmers so Furious?
The Farm Bills are as follow:
1- Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020.
2- Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020.
3- Essential Commodities (Amendment) Act, 2020.
The above Farm Bills are based on the current market system:
CURRENT MARKET SYSTEM: the current market system is consist of 3 main types :
A) Local Markets.
B) APMC.
C) MSP ( origin mentioned in the green revolution).
A) LOCAL MARKETS:- The Market in which farmers can take their crops and vegetables for sale directly to the consumer there is no middleman in the local markets there is only hand to hand trade and farmer decide the price of the grains and vegetables.
B) APMC:- (Agriculture Produce Market Committee) is the market board committee established by the state government of India to make sure that farmers are safeguarded from exploitation by large retailers and ensure that the retail price of a particular price does not exceed a high level. APMCs are also called are Regulated Market or Sarkari Mandi.
C) MSP (Minimum Support Price):- If farmers fail to sell their crops to the local markets as well as the APMC due to the bad quality of the crops or grains then the government(FCI- FOOD CORPORATION OF INDIA) purchase that grains directly from the farmers to provide them the minimum profit of harvest. The MSP is fixed by Commission for Agricultural Costs and Prices (CACP). Further, the MSP sells these grains to poor people at less price (Control).
So let us discuss in depth what is in the above Farm Bills Acts:
1. Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020:
Before the new farm bills, the farmers have to go to the APMC, if they fail to sell their grains in the local market. In APMC traders used to purchase the grains from the farmers at a monitored price by the APMC Committee. Depending upon the quality of the grains. But there is the confirmation that traders will not exploit the farmers because APMC ensures the process.
But according to the new bill the farmers can sell their grains or goods outside the APMCs where there is no government control and for now, farmers get good value for their grains because there is no trader and APMCs (so there is no tax). So directly it benefits the farmers, then why Farmers don’t agree on the bill?
The reason is that the private market will initially pay more and all the farmers will sell their goods in the private market, then APMCs will don’t have any farmers to make a trade. So if APMCs will don’t have any trade in the future, the APMCs will possibly shutdown.
Now at this point, the private market can exploit the farmers easily and the government will not interfere in the private market and later sometimes private market won’t give a good amount to farmers for their grains.
So this is the reason that farmers are not ready to agree on the first farm bill.
2. Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020:
This bill permits that now farmers can sign an agreement with wholesalers, food industries, and different institutional buyers. In which farmers and buyers can make a contract in advance and one expected price is setup up, due to this a farmer benefited when there will be fall in price in future.
Now, this act is nearly perfect for the farmers they have a 50-50 win-win chance of profit and loss. Then why farmers don’t accept this Farm Bill.
Because this act contains loopholes. Everyone knows that big industries and wholesalers have their unethical ways and advantages and they may also have some legal teams that can manipulate contracts day by day and most of the farmers are not well educated. So they may face some legal issues and then the upper hand will be addressed by the big industries and farmers will lose the deal, also it may lead farmers to face many problems.
3.Essential Commodities (Amendment) Act, 2020:
In 1955 the parliament of India enacted Essential Commodities Act. This act gives power to the central government to control the production, supply, trade, and distribution of certain commodities. The essentials commodities contain Food Items, Petroleum, Fertilizers, and Drugs.
According to the old Essentials Commodities act the trader can purchase the limited grains to avoid illegal activities such as Artificial Price Hike, if any trader stored grains exceeding the limit which is set by the Central Government then the government will take legal actions on that Traders.
But according to the renewed Essential Commodities (Amendment) Act, 2020, The limit of purchase has been eliminated the trader can Purchase and Hoard as many grains as he wants to. So it may lead to the artificial price rise and black marketing. And the stock limit may be imposed only if there is a 100% increase in the retail price of Horticulture products and a 50% increase in the retail price of Non-Perishable agricultural food items.
The central government may regulate the supply of food items including Cereals, Pulses, potatoes, Onion, Edible Oilseed, and Oils are an ordinance provides only under extraordinary situations during War, Famine, Price Rise, Natural Calamity.
If the above Farms Bills have so many loopholes then, why the government is applying them to Indian farmers? What is the view of government?
Let's see the Government's point of view:-
Ending APMC Monopoly:
- The proposed Central Legislation, which would encourage farmers to sell to someone outside the APMC yard, could lead to greater competition between buyers, lower the Mandi Fee and the Commission of agents and minimize other stoppages imposed by several states governments on APMC markets.
- Moreover, the elimination of governmental barriers would allow the farmers to trade in the surplus region to raise prices and customers are offering agri-products at lower prices in regions with shortfalls.
- So, India will have a single shared market for agri-products, allowing an effective supply chain.
Making Contract Farming Legal:
- Contract Farming would provide farmers with a price guarantee at the time of sowing.
- This will help them settle on crop prices depending on transportation costs.
- Likewise, the new procedure will reduce their market risks and may solve the situation of scarcity.
Amendment of ECA:
- The decommissioning of such ECA controls would increase India's agri-exports and encourage private investment in supply chains.
- This will make it possible for private investments in the food processing sectors to improve the agricultural-to-fork chain and support farmers and customers alike.
But according to the farmers, in the future above benefits may turn into drawbacks that will gradually lead to the exploitation of small-scale farmers.
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Picture credit- @AswinToon
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Conclusion: Indian farmers suffer more in marketing their products than during the production process.
According to Farmers they are protesting for the following reasons (in short) :
- Nobody would purchase APMC goods at the beginning and in the private sector, there's no tax so, it will benefit the farmer.
- But in the long term, the APMC may be inefficient and could be phased out until the exploitation of small-scale farmers starts.
- All three bills address nothing about MSP, so the government could be eliminated the MSP structure in the future.
- Because every year FCI ( Food Corporation Of India) purchases grains from farmers on MSP, but due to insufficient storage facilities it goes bad.
So then what farmers want?
- Farmers don’t want to eliminate APMCs in the future.
- They want a guarantee of MSP in the bills. (as there is no clear mention in the Farm Bills)
- They want assurance, that in Private Mandi’s farmers will not receive a price less than the MSP.
- Or they want to remove all three bills.
And now this is the whole scenario of FARMER PROTEST.
So what do you think about it?
Do government wants to get rid of this agricultural sector in the future?
comment down your thoughts.
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