A simple way to understand why the Farm Bill was passed is to go through this thread.
Important Number first :-
India's annual GDP from farming sector is around 20,000 crore.
Remember we are still a agricultural economy and not an industrial economy like China.
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Important Number first :-
India's annual GDP from farming sector is around 20,000 crore.
Remember we are still a agricultural economy and not an industrial economy like China.
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This farming sector is mostly run and organised by farmers and government.
Now the corporates want a share of this.
Because there is a lot of money and profit to make.
But it's not easy.
There are some problems and many protection for farmers put in place over many years
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Now the corporates want a share of this.
Because there is a lot of money and profit to make.
But it's not easy.
There are some problems and many protection for farmers put in place over many years
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The biggest problem is that different States have different laws for farmers.
To prevent the farmers from being exploited government has put in place MSP (Minimum Support Price) where support is the keyword. Remember it's not for profit it's support.
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To prevent the farmers from being exploited government has put in place MSP (Minimum Support Price) where support is the keyword. Remember it's not for profit it's support.
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Next protection is that farmers are allowed to grow what they want. Remember the background for this that during British rule the farmers were forced to grow Indigo for Britishers instead of food crops.
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Also hoarding and black marketing
Of crops is not allowed because the customer suffer.
Imagine yourself paying 5 times or 10 the for rice and atta.
To stop this previous government had put many laws in places.
Now let's look at what's changing.
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Of crops is not allowed because the customer suffer.
Imagine yourself paying 5 times or 10 the for rice and atta.
To stop this previous government had put many laws in places.
Now let's look at what's changing.
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To help corporates tackle problem of different laws in different state Central govt made law. So one set of laws makes it easy for Corporates.
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Bcoz Corporates have huge financial strength they can easily buy crops and store them.
But Essential Commodity act stop them for storing crops for long time, as it increase prices in market.
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But Essential Commodity act stop them for storing crops for long time, as it increase prices in market.
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Modi govt removed Food crops from Essential Commodity act and they can be stored for longer period.
Basically, we as consumer will face it and have to pay for it.
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Basically, we as consumer will face it and have to pay for it.
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Remember indigo famers revolt against Britishers. That farmers had to grow what Britishers asked.
Meaning they will grow commercial crops but no food crops.
Leading to shortage of food crops
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Meaning they will grow commercial crops but no food crops.
Leading to shortage of food crops
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Modi govt has now Legalized Contract farming for farmers where they will be told by corporates what kind of crops to grow
Also contracts may have clauses where farmers may loose land if they fail to produce enough grains
That wud lead to another problem, corporate farming
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Also contracts may have clauses where farmers may loose land if they fail to produce enough grains
That wud lead to another problem, corporate farming
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If things go wrong then farmers could have gone to court and there would have been court battles where justice would prevail
Modi govt passed the law that protected them from court battles and will force then to go to SDM and DC who could be bribed
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Modi govt passed the law that protected them from court battles and will force then to go to SDM and DC who could be bribed
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Now tell me how is this law pro farmer and pro-people because in the long run both with suffer while corporate houses will gain profit.
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