The Indian Government with the intention to open up, modernize and digitalize the farming scenario in India introduced the Farm Bills 2020. These three farm bills as per the government will further stabilize the farming environment of the country by facilitating global trends, investments and infrastructure.
Facts & Figures
What are the Three Bills?
1 The farmers produce trade and commerce Bill 2020 (Promotion & Facilitation
2 The farmers agreement on price assurance and farm services Bill 2020 (Empowerment and Protection)
3 The essential commodities Bill 2020 (Amendment)
These three farm bills were passed in the Lok Sabha on 17th Sept.20 and in Rajya Sabha on 20th Sept.2020.
The first bill proposes that farmers and traders can sell and buy the produce anywhere in India outside the registered mandis under state APMC’s. This will facilitate inter and intrastate trade and reduce promotion and transportation cost. Also farmers get better prices by facilitating digital framework of trading.
The second bill states that small and marginal farmers (around 85%) having less than 5 hectares of land will gain through contract and aggregation with agro firms, wholesalers, exporters, processers or large retailers at a pre agreed term and price. This will help them transfer their future market risk unpredictability to the sponsors and enable them to access modern technology and storage infrastructure. It facilitates better income by removing transportation cost, marketing overheads and intermediaries. There is timely redressal by facilitating a effective dispute resolution mechanism.
The third bill intends to remove onions, potatoes, cereals, pulses, oilseeds from essential commodities list to curb stockholding and black marketing except in times of war and calamity. It will create a conducive atmosphere for FDI and private sector to invest without fear of any excessive regulatory interference by authorities. This will induce Indian farming to modern global trends like cold storages, modern warehousing, supply chain, digital interfaces and cash rich crops and fruits. Idea is to create a stabilized market zone for farmers and consumers by facilitating a solid infrastructure and wastage reduced process of ecological farming.
Myths:
1 Bills not constitutional: Centre can very much legislate interstate trade and commerce integrations including agriculture.
2 Farmers land will be sold to industrialist and corporate: There is legal protection for any disputes adhered by timely deadlines and sale, lease or mortgage of farm land is illegal.
3 MSP (Minimum Support Price) will be abolished: MSP stays with the option for farmers to sell at a higher price to anyone anywhere.
4 Manipulated Contracts: There is no bullying in contract farming and it is already being done from more than two decades for sugarcane, coffee, tea, vegetables, rice, barley, cotton, sugar, pulses, vegetables etc. in many states like Punjab, Haryana, West Bengal, U.P & South etc. by renowned companies like HLL, Rallis, PepsiCo, ACC, SCB miller, Ugar etc.
5 APMC (Agriculture Produce Market Committee) Law to be eliminated: The APMC Act is not being touched but the trade happening outside is being addressed is being handled more professionally with legalized terms, Competitive prices and agreements.
6 Vulnerability to Market Forces: Farmers can get into direct contracts with private entities outside the APMC after sale of produce, price and delivery is decided and buyer will help in supply of tools, equipments, advice and look into responsibility of crop risks from natural calamities. Farmers cannot be punished in such a case scenario.
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