Brief Analysis of Farm Bills, 2020
NAME: Nikhil Anand
DESIGNATION: Student, Amity Law School, Noida
Farmers' protests in the Indian capital also caused a stir around the world. But very few people know what farmers are protesting against. Here is an introduction / specific points on the bill.
Farmers from Punjab and Haryana have been besieging the capital since November 26. They are protesting against recently passed farm laws.
The bills require that farmers be allowed to sell their produce directly to companies.
Farmers feared this could be an excuse to pull the MSP's safety net from under their feet.
The 3 bills clepe as:
The Farmers Produce Trade And Commerce (Promotion And Facilitation) Bill, 2020.
The Farmers (Empowerment And Protection) Agreement On Price Assurance And Farm Service Bill, 2020.
The Essential Commodities (Amendment) Bill, 2020.
The bill authorizes barriers to free national and interstate trade in agricultural products, and agricultural products were previously sold through notified wholesale markets or the Mandi Agricultural Market Committee (APMC).
Each commodity market committee empowered middlemen who used to buy from farmers at auction prices before selling them to international buyers such as retailers and wholesalers. New system: the government has made changes and farmers now have the option to cut out the middlemen to whom farmers sell their products. You can eliminate international buyers and sell to them directly to close a deal between them.
Now farmer groups are protesting because farmer groups fear that businesses will be suspended and that those with more bargaining power may sell at higher prices and some have more resources than small farmers or small farmers. Small farmers. Because it benefits large farmers with land resources and bargaining power. Since 85% of farmers in India own less than two hectares, it will be very difficult for them to interact directly with mass buyers.
Moan by Farmers
Permanent closure of the existing APMC market due to an optional private market
When APMC closes, farmers will not be able to sell their products, so they will have to sell them on the private market.
There are no taxes in the private market, and since there is always a 3% tax on buying and selling in APMC, private companies will not pay taxes due to the lack of taxes in APMC's private market.
With the removal of geographic and small farmer restrictions, travel and storage restrictions can make it difficult to take advantage of potentially better prices in markets.
So far there have been no restrictions for farmers to sell elsewhere.
The second bill would allow farmers to produce cereals at a price previously agreed with an agreed company, exporter or bulk buyer.
Now farmers are concerned about this because they believe that the MSP (Minimum Support Price) is the price that the government will buy the harvest directly from the farmers and now the MSP is being phased out and there will be no government control about prices. Farmers ask to link the MSP to the contract prices.
The essential commodities (amendment) bill proposes to allow economic actors to store food freely without fear of being processed by storage. However, small farmers are not expected to sell their products and sell warehouses for storage.
With unlimited storage, farmers benefit from artificial price fluctuations and lower prices after harvest.
High Clamour from Farmer- The law is more business friendly than farmer friendly and the farmers demand that the bill be repealed.
Farmers want to empower the MSP, and this should become a legal right.
Currently 6% of farmers can benefit from the MSP as the crop is not purchased for all crops for which the government has declared MSP.
APMC needs some reforms, but none to eliminate them.
We must not withdraw from intermediaries.
Investments in agriculture must come from the government, not the private sector.
If, from the government's point of view, the farmers insist on another lawsuit, then the elephant in the area makes MSP a legal right. It would be impossible to respect even if the three agricultural laws were repealed.