Indian farm reforms 2020

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The Indian farm reforms in 2020 refer to three agricultural bills passed by Indian Parliament in September 2020. The bills collectively seek to provide farmers with multiple marketing channels, break the so-called monopolies including that of government regulated mandis (market yards), and provide a legal framework for farmers to enter into pre-arranged contracts among other things.[1][2] The bills are the Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, and the Essential Commodities (Amendment) Bill.[3][4] On 27 September 2020, they received approval from the President Ram Nath Kovind and became acts.[5]

Background[edit]

The Standing Committee on Agriculture (2018–19) found that the laws that regulated Indian agricultural markets (such as those related to Agricultural produce market committees) were not being implemented fairly and honestly or serving their purpose. Centralization was reducing competition and accordingly participation, undue commissions, market fees and monopoly of associations was damaging the agricultural sector.[2] In 2017 the centre had released model farming acts; however, the Standing Committee on Agriculture (2018–19) noted that a number of the reforms suggested in the model acts had not been implemented by the states. A committee consisting of seven Chief Ministers was set up in July 2019 to discuss implementation.[2] Accordingly, the centre promulgated three Ordinances in the first week of June 2020.[2]

Acts[edit]

The three acts include:

  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
Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
  • The act expands the scope of trade areas of farmers produce from select areas to "any place of production, collection, and aggregation".[2]
  • The act allows electronic trading and e-commerce of scheduled farmers' produce.[2]
  • State governments are prohibited from excessive market fees of any kind.[2]
Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020
  • The act provides a legal framework for farmers to enter into pre-arranged contracts with buyers including mention of pricing.[2]
  • The act provides for a dispute resolution mechanism.[2]
Essential Commodities (Amendment) Act, 2020
  • The act allows for the center to regulate food items through essential commodities.[2]
  • The act provides for a stock limit on agricultural produce based on price rise.[2]

Support[edit]

Prime Minister Narendra Modi referred to the bills as a watershed moment in the history of Indian agriculture that will empower crores of farmers.[6] The government maintains that these bills will make it effortless for farmers to sell their produce directly to big buyers.[7][8]

Criticism[edit]

Farmers called the bills corporate-friendly and anti-farmer.[9] The bills have faced strong protests from some farmers and opposition parties (including Indian National Congress, and Bahujan Samaj Party) and also a member party of the ruling National Democratic Alliance - the Shiromani Akali Dal;[10] alleging that it will hurt the farmers' earnings. The government however maintains that they will make it effortless for farmers to sell their produce directly to big buyers.[7][8][11] One of the main causes of the opposition is the uncertainty surrounding how the reforms "will play out in reality".[12] Controversy surrounding minimum support prices (MSPs), the affect on middlemen, loss of states' revenue and low bargaining power are some of the fears that have led to the opposition to the bills.[1]

Minimum Support Price (MSP)[edit]

The newly passed farm trade Bill has raised concerns that farmers may no longer be assured Minimum Support Price (MSP) for their crop. However, the MSP has always been devoid of any legal backing and is part of administrative decision making.[13]

2020 Indian Farmers Protest[edit]

Farmers from Haryana, Punjab were stopped from entering into Delhi by Haryana police on 26 November 2020.[14][15] At the [[Ambala|Shamb protestors threw stones at Police [16] A protester told IANS that "We will break all the barricades if we were not allowed to move ahead."[16] The police used batons, tear gas and water cannons,same some farmers try to attack on police.[14] Media reported showed trenches having being dug by the police on certain routes into Delhi.[14] The protest are the first large scale farmer protests since the Narendra Modi government came into power in 2014.[17]

References[edit]

  1. 1.0 1.1 "Quixplained: What are the 3 farm laws, and why are farmers protesting?". The Indian Express. 2020-10-17. Retrieved 2020-11-27.
  2. 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 "The Essential Commodities (Amendment) Bill, 2020". PRSIndia. 2020-09-14. Retrieved 2020-11-27.
  3. "Parliament passes amendments to essential commodities law". The Hindu. PTI. 2020-09-22. ISSN 0971-751X. Retrieved 2020-10-06.{{cite news}}: CS1 maint: others (link)
  4. "Farm bills: Are India's new reforms a 'death warrant' for farmers?". BBC News. 2020-09-23. Retrieved 2020-10-06.
  5. "President Kovind gives his assent for 3 farm bills passed by Parliament". mint. 2020-09-27. Retrieved 2020-10-06.
  6. "PM Modi calls passage of farm bills 'watershed moment' for agricultural sector". Hindustan Times. 2020-09-20. Retrieved 2020-10-07.
  7. 7.0 7.1 "PM Modi reaches out to farmers amid anger". Hindustan Times. 2020-09-28. Retrieved 2020-10-07.
  8. 8.0 8.1 Mathur, Swati. "Farm bills 2020: President Kovind gives assent to controversial farm bills, laws come into force immediately". The Times of India. Retrieved 2020-10-07.{{cite web}}: CS1 maint: url-status (link)
  9. "Congress asks party-ruled states to bring laws to negate Centre's agri legislations". The Indian Express. 2020-09-28. Retrieved 2020-10-07.
  10. India, Tribune (2020-09-26). "Youths go full throttle in protest against farm Bills". The Tribune. Retrieved 2020-10-12.
  11. "Farmers across India protest against farm bills. In photos". Hindustan Times. 2020-09-28. Retrieved 2020-10-07.
  12. "Farm bills: Are India's new reforms a 'death warrant' for farmers?". BBC News. 2020-09-23. Retrieved 2020-11-27.
  13. "MSP for farmers: How is it fixed, and how binding is it?". The Indian Express. 2020-11-30. Retrieved 2020-12-01.
  14. 14.0 14.1 14.2 Ghazali, Mohammad (27 November 2020). Ghosh, Deepshikha (ed.). "Determined Haryana Cops Used This Tactic To Stop Farmers". NDTV. Retrieved 2020-11-27.{{cite web}}: CS1 maint: url-status (link)
  15. "India farmers brave tear gas as they protest against 'black laws'". Al Jazeera. Retrieved 2020-11-27.{{cite web}}: CS1 maint: url-status (link)
  16. 16.0 16.1 "'Ready for Battle': Farmers Halt at Sonepat Post Day 1 of Protests". TheQuint. 2020-11-26. Retrieved 2020-11-27.{{cite web}}: CS1 maint: url-status (link)
  17. Varma,Anuja, Gyan (2020-11-26). "Govt to meet protesting farmers on 3 Dec to discuss new laws". mint. Retrieved 2020-11-27.