Daksh Jain
Jindal Global Law School
Introduction:
President Ram Nath Kovind gave his assent to the three agricultural bills aimed at liberalising the farm sector in September 2020. The bills are namely, The Farmers’ Produce Trade and Commerce Bill 2020, The Farmers Agreement of Price Assurance and Farm Services Bill 2020 and The Essential Commodities Bill 2020. These bills have faced severe opposition in the Parliament and have been vehemently opposed by several farmer organisations.[i]
The capital has been witnessing harsh protests which have drawn the Center to the negotiation table. As the protests build momentum, it is evident that much of it is with regard to some contentious provisions of the Farmers’ Produce Trade and Commerce Bill 2020.
The Essential Commodities Bill 2020 seeks to restrict the Centre’s power to impose stockholding limits on foodstuffs unless under extraordinary circumstances. This Bill does not concern the farmers and it potentially translates into a gain as it implies unlimited demand for their products.
The Farmers Agreement of Price Assurance and Farm Services Bill 2020, seeks to provide a regulatory framework for contract cultivation. This Bill primarily concerns the agreements entered into by the farmers and agri-business firms for supplying produce at minimum guaranteed prices. This not only provides assured buy-back of the produce but also provides external support to the farmers to achieve the desired quality produce.
It is the Farmers’ Produce Trade and Commerce Bill 2020 which has been the eye of the storm and forms the basis of the opposition, debate and proceeding controversy. The same shall be discussed in detail below.
The Need for the Farm Reform Bill:
The Farm Bill 2020 envisions a total restructuring of the agricultural sector. By privatisation, the Government seeks to eliminate the middlemen, attract investments and provide better realization to the farmers. The chain of wholesalers and retailers to consumers which was prevalent since the last 25 to 30 years has been placed under direct scrutiny and attack as due to these middlemen, millions of farmers have remained underpaid and oppressed. In addition to this, urban India paid higher prices owing to the subsequent increase in prices that was a result of the various stages of distribution by these middlemen.
With the introduction of these bills, the farmers shall experience the freedom to practise direct marketing and henceforth, realize higher prices for their produce. It would not only enable free inter-state and intra-state trade, but also cut down the transportation costs for the farmers.
The farmers have been under a consistent pressure owing to the forces of demand and supply. Lack of growth in the sector has affected millions of farmers over the years. The government seeks to revive the growth of this sector through liberalization policies and inviting private investments. In fact, private trade is not unknown in the agricultural sector of the country.
The farmers in some states already have tie-ups with certain Multi-national Companies to supply their produce. The Government, with the intention of providing a platform for the interaction of farmers and traders has introduced this new legislation. With the passing of the Farmers Bill 2020, the government can step into the shoes of a regulator and support the growth and trade of millions of farmers.
Farmer’s Outrage
The passing of a legislation and its successful implementation are two very different things. No matter how good something looks on paper, if it fails in practicality and reality, the end result could be a disaster for millions.
The farmers fear that the introduction of the bills will eventually lead to the abolition of the mandi markets and assured prices[ii] offered to them by the government. The farmers also contend that the involvement of these private buyers would expose them to open exploitation by the private corporations with greater bargaining power.
Although the government has given their assent to the continuance of the mandi system and minimum support price that is currently offered to the farmers, with such rapid and major changes in the sector, the farmers are unclear as to what it might turn out to be.
The Farmers demand no restrictions on the movement, export and stocking of their produce. The imposition of stock limits by the government has been vehemently opposed by the onion growers of Maharashtra.[iii]
In addition to this, the farmers of Haryana and Punjab are threatened by the ‘freedom’ that the bill seeks to provide to the farmers. They are not pleased with the fact that the implementation of these laws may result in dismantling their monopoly.
The already burdened farmers got further agitated following a political stir in the country as it is plain to see the political nuances in the protest, the protesting farmers being supported by various leaders of the opposition.
Therefore, it is submitted that it is imperative for the government to take the necessary steps with due precaution, as priceless lives of millions of farmers are on a string.
Impact on Democratic Process:
The Bills passed by the Modi Government highlight the unrestricted opportunity granted to the big corporate firms to enter and regulate the agricultural industry. The Centre is once again striving to assist the big corporates in the long-term corporate goal of maximizing profits.
The Farm Bills provide a platform to the big-corporates to enter as key players in the Agri-industry which would rob marginal farmers and consumers equally. Over the years, we have witnessed bills, legislations and orders being passed in the wake of nation-wide protests. The democratic process established by the Constitution has succumbed to a strong Centre.
The entire country is enduring an endless battle with COVID-19 and such destructive legislations and policies add to the humiliation of people. The Center with their policies should uphold the rights of already agitated farmers. The implementation of these bills would only be fruitful if the Government ensures the upliftment of the agricultural industry at the grass root level i.e. the farmers.
Therefore, it is imperative to understand the distress among the farmers and their supporting organizations and act in a manner that helps in achieving the true spirit of our democracy and constitutional goal.
Conclusion:
The Farm Bills 2020 have the potential to change the face of the Indian agricultural sector. In an economy where over 50% of the population is dependant on this sector, it is imperative that we initiate a change, in order to uplift the life of the rural poor engaged in this sector for years.
In order to boost the growth in this sector, the Centre has once again landed a legislation which paves the way for the future but is presently disturbing the masses. The proceedings of passing the bills in the Parliament has once again put the Centre under the scanner. Agitated with the arbitrary manner in which the agricultural reforms are being put in place, thousands of farmers from the north Indian states of Punjab and Haryana have blocked the National Capital.
Delhi is already reeling from the sudden rise of COVID-19 cases and this sudden burst of protestors not only exposes millions to a risk, but also imposes an exasperating pressure on the Central Government to act promptly. The Government on the other hand, has been making efforts to understand the grievances of the farmers and seems determined to provide a solution.
In a few years of it’s implementation, the Farm Bills could be a milestone in the Indian Agricultural sector. However, if it is not monitored with caution it could prove to be a disaster for millions of marginal farmers of the country.
REFERENCES:
[i] Explainer | Why are the Agriculture Bills being opposed, The Hindu (2020), https://www.thehindu.com/news/national/explainer-why-are-the-agriculture-bills-being-opposed/article32618641.ece (last visited Dec 7, 2020).
[ii] Centre imposes stock limit on onion retailers, wholesale traders to check price rise, India Today (2020), https://www.indiatoday.in/business/story/centre-imposes-stock-limit-on-onion-retailers-wholesale-traders-to-check-price-rise-1734543-2020-10-23 (last visited Dec 7, 2020).
[iii] Farmers’ protest explained: What are the big concerns, what can the government negotiate?, The Indian Express (2020), https://indianexpress.com/article/explained/farmers-big-concern-and-what-govt-could-negotiate-7073291/ (last visited Dec 7, 2020).
