Today the proposed Farm Bills have been placed in Rajya Sabha amidst protests by farmers against these bills in various states ... there is so much confusion as to why farmers are opposing these bills and what’s happening really... my little effort to explain this...1/n

First Bill-Farmers Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020..
this bill allows intra-state n inter-state trade of farmers produce beyond physical premises of Agricultural Produce Market Committee markets n other markets notified under APMC Acts2/n

This bill also permits “electronic trading of agricultural produce regulated under any state APMC Act in the specified trade area” Under this bill, the state govts will be prohibited from levying any market fee, cess or levy on farmers, traders n electronic trading platforms3/n

Second Bill-Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill,2020,talks about creating a framework for contract farming through an agreement between a farmer and a buyer before the production or rearing of any farm produce4/n

Any disputes that arise because of agreements under Contract farming provide for three-level dispute settlement mechanism and conciliation process under the conciliation board, Sub-Divisional Magistrate and Appellate Authority5/n

Third Bill-Essential Commodities (Amendment)Ordinance,2020
will allow Centre to regulate supply of certain food items only under extraordinary circumstances of war n famine.Govt says stocks limits may be imposed on agricultural produce only if there is a steep price rise6/n

Accordingly,this third legislation mandates imposition of stock limit on agricultural produce if there is a 100 per cent increase in retail price of horticultural produce and 50 per cent increase in retail price of non-perishable agricultural food items 7/n

That’s about these 3 bills.. now why Opposition to these bills? Major problems r with First Bill-as per Sec2(m) of this bill “Trade areas”include Farming gates, Factory premises,Warehouses, Silos,Cold storages or any other place where farmers can trade their produce in India 8/n

This definition of trade area doesn’t include market yards n sub market yards managed n run by the market committees formed under each State APMC Act, it even excludes private market yards,direct marketing collection centres too 9/n

In effect, existing mandis established under APMC Acts have been excluded from the definition of trade area under the new legislation.This is the real problem, as APMC mandi system has been developed over years n each mandi caters to 200-300 villages10/n

Now without such organised trade areas how will farmers locate new trade areas as proposed in bill? Govt has said new n additional trade area outside of mandis will provide farmers freedom of choice to conduct trade of their produce without showing where they exist 11/n

Secondly the definition of “trader” Section 2(n) of first ordinance defines a “trader” as “a person who buys farmers produce for self or on behalf of one or more persons for the purpose of wholesale trade or any trader with a PAN card can buy farmers produce in trade area.12/n

Earlier in APMC mandis licensed agents were their whose financial status was known to farmers and legal mechanisms were there to trade but now the farmers are thrown to unknown traders ..this uncertainty is at root of protests 13/n

Protests are major in agrarian States like Punjab n Haryana because arhatiyas the commission agents in mandis to whom farmers sell their produce are well known to farmers, they even get high percentage in trading n States also levies tax on such transactions..14/n

So with introduction of these bills farmers loose their trusted agents to sell n agents their commission n States their taxes...the effect is cascading n thus the protests... everyone is talking about removal of middlemen but not about uncertainty the farmers are exposed to15/n

Everyone is clapping that farmers will be removed from the clutches of middlemen but only to be handed over to unknown and loosely defined traders n trade areas under the first Ordinance and enter into Contract farming with big companies in second Ordinance 16/n

Indian agriculture is basically subsistence n majority farmers r small n marginal with meagre landholdings of one acre to 2.5 acres .. mostly illiterate.. how will they enter into Contracts? Who will facilitate such Contracts? How will they trade into unknown area?17/n

In case of disputes they can go upto SDM n not even to civil courts.. with the kind of meagre landholdings how can they afford legal battles?? These are the “UN ANSWERED” questions of these Ordinances18/n

Another major question is Government is saying MSP will continue but for whom?? When farmers are entering at pre-determined rate in proposed Contract farming how n where does MSP come into picture ?19/n

Third Ordinance says Govt will impose stock restrictions only under extraordinary conditions like war n famine... thereby giving free hand for private hoarding and consequent disasters of creating artificial deficit in supply chain n increase in inflation on food produce 20/n

With Govt slowly moving away from procurement in the name of reforms n failures in management of FCI godowns...future is bleak regarding food security too..rather than finding scientific solutions to eliminate problems due to middlemen Govt is paving way for new problems21/n

These Ordinances r blow to Cooperative federalism too insofar Agriculture n Markets are in State list.. Trade n Commerce on food items are in Concurrent list so Centre has chosen this way of Ordinances n forcing States 22/n

States r already facing problems with sharing of GST revenues they now loose taxes on Agriculture too.. it’s high time Government review the provisions n work on frame work for proposed bills or else they too end up in hazardous failures like demonetisation, GST n lockdown

Let Government take steps to clear these loopholes on these Farm bills and not get the tag of anti- farmers Government #AgricultureBill #KisanPolitics #KisanVirodhiNarendraModi