New Farm Policy: the future for food, farming and environment
Author: ANKITH KUMAR and RAGHUNANDAN K.S
Designation: 5th Year BA.LL.B (School of Law, Christ University)
Contact: +91-70107*****; 97381*****
In the late dispatched acclaimed Farm Bill 2020, three bills have been passed by the Indian Parliament targeting presenting changes in the rural division. The significance of changes must be perceived subsequent to thinking about that over 60% of the populace works in the agribusiness business. This segment additionally adds to about 18% of the nation's GDP. These bills right now face outrageous complaint by the resistance in both the houses. The bills have likewise prompted escalating fights by ranchers in states like Punjab, Haryana, and Madhya Pradesh notwithstanding COVID-19.
The least difficult arrangement against the dissent of the ranchers concerning the homestead bills can be including legal support to the base selling costs and acquisition in the new bill to kill the dread of the ranchers.
Giving ranchers the decision to sell without the assistance of agents will be of incredible utilize just if there are streets that connect towns to business sectors, atmosphere controlled storerooms, the power flexibly is made dependable and accessible to control those offices, and food preparing organizations who contend to purchase their produce.
The Rajya Sabha passed 3 new farmers bills were in these farm bills have been ushered in by the government to bring in the much needed agriculture reforms mainly. The first one is the farmers produce trade and Commerce (promotion and facilitation) bill of 2020, this bill basically seeks to give freedom to farmers to sell their produce outside of the notified APMC market yards or the Mandis as they’re known and the aim is to basically facilitate numerated prices through competitive alternative trading channels also the farmers will not be charged any cess or levy for sale of their produce under this act when the farmers sell through a APMC’s they also have two pair cess or levy which is levied by the APMC so there will be some benefits for the farmers it will open more choices for the farmers reduce the marketing cost and help them to get better prices
The second bill is the farmer’s empowerment and protection agreement of price assurance and farm services bill 2020, this bill basically seeks to give farmers the right to enter into a contract with Agriculture business firm’s processors wholesalers exporters or large retailers for the sale of future farming produce at a pre agreed price. Wherein this is basically enabling contract farming seeks to transfer the risk of market unpredictability from farmers to sponsors and it will also allow farmers access to modern technology and better inputs and boost farmer income by reducing the cost of marketing the
Third bill is the essential commodities amendment bill 2020 And this bill clearly seeks to remove commodities like cereals pulses oilseeds onions and potatoes from the list of essential commodities and it will also do away with the imposition of stockholding limits on such items except under extraordinary circumstances like war, famine and extraordinary price increase that is like in the case of natural calamities and this is aimed at attracting private investment or FDI into the farm sector as well as bringing price stability.
The first bill which is the farmers produce trade and Commerce (promotion and facilitation) bill 2020 and what the bill mainly aims on focusing on, is it bypass the APMC’s which are having a stranglehold over the agriculture produced marketing but having said that it is clear and justifiable to say that the Central government has clarified the varied doubts of the people regarding the bill, that this bill will not lead to shutting down of the APMC’s but what it will do is that, it will expand farmers choices where to sell his produce right now the farmer is tide down to the APMC’s but after this bill becomes an act the farmer will have all the freedom to sell his produce wherever he wants.
The second bill is the farmers empowerment and protection agreement on price assurance and farm services bill 2020 and this bill is basically creating a framework for contract farming and the idea of the government is that it will clearly lead to more investment from the private sector coming into the Agriculture sector, which will pave the way to better remuneration for the farmers which is the core concern of these aforesaid bills.
The third bill is the essential commodities amendment bill 2020, which mainly gives freedom of food stocking, with respect to the two bills that have been passed by Rajya Sabha on 20th of September are 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 and the basic game behind these bills is to liberalize the farm markets in the hope that it will make the system more efficient and allow for better price realization for farmers but then having said that, it is true to say that there have been widespread opposition to these farm bills and the opponents are hellhound on the point that this bill is employed by the comment to get away from its traditional role of being guaranteed of minimum support prices as MSP’s work in the formerly regulated APMC Mandi only and not in private deals, this is the greatest concern and also the biggest reason for fuelling these protests especially in the MSP dependent states of Punjab and Haryana, though the government has clearly clarified that the MSP regime will continue as usual and it will not be taken away.
Further, it can be clearly pointed out that the three farm bills mainly look forward in order to break the monopoly of government regulated Mandis and allow farmers to sell directly to private buyers providing legal framework for farmers to enter into contracts with companies and produce for them, which will also allow Agriculture businesses to stock food articles and remove the government’s ability to impose restrictions arbitrarily, which shall lead to fear that the agriculture Mandis bringing revenue for state governments, this will diminish their relevance of the middle men which was one of the tormenting concerns of the farmers which was leading to fear’s among them, will come to an end, the minimum support prices regime, the lack of bargaining power with big companies is one of the concern, also one of the positive points is that the fears that a farmer will have the freedom to choose.
Then, again the main issue or the crux of the fear is that where he wants to sell is clear but does not have the knowledge to negotiate the best terms with a private company. Brings the concerns to light where there is hardly any regulation outside the Mandis and no grievance redressal mechanism yet.
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