Full Detail About Farm Bill 2020|Why Farmers are protesting..?

Full Detail About Farm Bill 2020: In the as of late Launched most debated Farm Bill 2020; three bills have been passed by the Indian Parliament targeting presenting changes in the agricultural sector. The significance of changes must be perceived subsequent to thinking about; that more than 60% of the populace works in the agriculture industry. This area additionally adds to about 18% of the nation’s GDP. These bills right now face extraordinary objection by the opposition in both the houses. The bills have likewise prompted increasing fights by farmers in states like Punjab, Haryana, and Madhya Pradesh notwithstanding COVID-19.

Full Detail About Farm Bill 2020

A statewide bandh was forced on Monday because of fights. In any case, aren’t changes positive changes or upgrades executed? Then why have these protests erupted? Why Farmers are protesting..? Today we attempt to comprehend these Bills; its potential consequences for Farmers to comprehend why they are restricted all through the country.

How has public procurement fared under the Modi government?

Since, the acquisition of wheat from farmers by the Modi government, for Rabi 2020; touched a record-breaking high record figure of 382 lakh metric tons (LMT). During a similar period, 119 lakh MT paddy was additionally obtained; by the public authority offices through 13,606 buy centres.

Full Detail About Farm Bill 2020

Therefore, All over India, 42 lakh farmers were paid Rs 73,500 crore towards least help value (MSP) for wheat alone; in the flow Rabi season. This year Madhya Pradesh turned into the biggest supporter of the Central pool; with 129 LMT wheat, outperforming Punjab which secured 127 LMT. Haryana, Uttar Pradesh and Rajasthan likewise made critical commitments to the public acquirement of wheat.

The encouraging thing to note is; there was an increment in the obtainment from the eastern and northeastern districts as well; this year, rather than prior patterns. In the Kharif season this year; acquirement from these areas has been to the tune of 89.5 LMT profiting in excess of 18 lakh farmers.

The 3 Bills that were introduced in Farm Bill 2020

Since, The three bills passed by the Indian Parliament aiming at introducing reforms in the agricultural sector in Farm Bill 2020 are:

  • ‘Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill‘, 2020 
  • ‘Farmers’ (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill‘, 2020
  • ‘Essential Commodities (Amendment) Bill‘, 2020

The laws claim to bring farmers closer to the market by changing where they can sell, the ability to store produce, and whether they can enter into contracts.

It may be surprising that the farmers were restricted to the following terms to date. Let us further explore why these laws were introduced and why these restrictions were present in the first place.

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020:

This Bill permits the Farmers to sell their produce outside the Agricultural Produce Market Committee (APMC) controlled business sectors. The APMCs are government-controlled promoting yards or mandis. Thus, the farmers plainly have more decision on who they need to sell. The government’s logic, economic expert Gurcharan Das writes in TOI, is that the; Agricultural Produce Marketing Committee (APMC) is an outdated organization from a time of shortage; intended to secure the rancher yet has now become his oppressor, an imposing business model cartel fixing low costs for the ranchers’ produce, constraining misery deals.

Full Detail About Farm Bill 2020

The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020:

This Bill makes arrangements for the setting up of a structure for contract cultivating. The farmers and an appointed purchaser can strike an arrangement before the creation occurs.

As per PRS India, a “Standing Committee on Agriculture (2018-19)” noticed the APMC laws required changes as cartelization had solidified because of a restricted no. of dealers in APMC mandis. In this manner the accompanying law was passed in September 2020.

The Essential Commodities (Amendment) Bill 2020:

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020 permits intra-state and between state exchange of ranchers’ produce past the actual premises of APMC markets. State governments are prohibited from levying any market fee, cess or levy outside APMC areas.

Full Detail About Farm Bill 2020

Why are “Farmers” protesting, if the Bills are indeed pro-farmer?

All things considered, let the believe it or not – while a few pockets of farmers in a couple of States are in reality protesting, it is certainly not a pan-India movement. Moreover, it isn’t essentially farmers, however wily APMC commission specialists and rich landowners with profound political interface, who have prospered under the imperfect APMC system, who are harmed.

APMCs was to protect farmers from greedy middlemen, ensuring competitive practices and optimizing farm incomes. Observational proof proposes that APMCs have, nonetheless, fallen prey to the very indecencies they should patch and this made for a solid case for agrarian changes.

Truth be told, Prime Minister Narendra Modi should be cheered for acquiring the Farm Bills and in one fell range, managing a body hit to regulated debasement, in the horticulture sector. No pioneer other than Modi might have made a particularly intense move to get rid of torpidity from a swelled framework, that for quite a long time was hostile to Farmers but had no responsibility.

You may have already noticed that although there have been differing views across the country, protests are concentrated to the states of Punjab, Haryana, M.P. This is because it is in these states that farmers rely on MSP and have strong market systems based on APMC’s. In fact, Bihar, Kerala, and Manipur do not follow the APMC system at all. In India, the state governments have the power to regulate agricultural markets and fairs. Hence different states have different approaches towards this. Full Detail About Farm Bill 2020.

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The farmers of Punjab and Haryana:

According to specific reports, almost 89 percent of the rice delivered; by the farmers in Punjab is acquired by the public authority. In Haryana, it is 85%. ranchers in Punjab and Haryana face no value danger and value hazard; and are truth be told boosted to develop paddy and wheat. Yet, the country has been confronting a lack of heartbeats; and the wheat and rice rather have been an excess in FCI’s godowns.

Additionally, rice is a water-concentrated yield and ranchers from territories with water deficiency; also develop it as there is a MSP guaranteed eventually. Constant reception of rice-wheat editing framework in North-Western fields of Punjab, Haryana and West Uttar Pradesh; has brought about exhaustion of groundwater and disintegration of soil quality, representing a genuine danger to its maintainability,” says an administration study.

Likewise, these Farm Bills are urging farmers to hit manages huge corporates, and ranchers don’t trust corporates. In the interim, the fighting Kisan associations have declared to notice Bharat Bandh on December 8 against the Center’s new rural laws. They have taken steps to obstruct all the section focuses at Delhi borders and involve all the thruway doors. Full Detail About Farm Bill 2020.

Have APMCs delivered?

Well,State APMC Acts enable State governments to separate their geological locale into different ‘told market regions’, headed by a Market Committee (MC); for each Market Area. Over the long run these boards of trustees got dictator; prompting a monopolistic construction, contradictory to the reason for ranch government assistance. State APMC Acts normally announce the buy, deal, stockpiling; and preparing of farming produce outside the yard set up by the “Market Committee”, unlawful.

These Farm Bills, in any case, have made it legitimate and lawful from this time forward, to bargain outside the “Yard Areas”. Fundamentally, APMCs will currently confront rivalry from merchants who “Exchange Areas”, that will be outside the purview of “Yard Areas”.APMCs delighted in gigantic clout and worked with no opposition. The new Bills change that business as usual and henceforth some APMCs are protesting. Full Detail About Farm Bill 2020.

Clearly, the Farm Bills will weaken the general syndication of large APMC Mandis like say,the Vashi Mandi in Navi Mumbai and; the Azadpur Sabji Mandi in New Delhi. With the force of Mandis getting weakened, little and negligible ranchers as additionally retail clients – the two gatherings of individuals in the whole evolved way of life, remain to benefit,as by and large costs will descend fundamentally.


In the medium term, the Farm Bills will compel different partners in the natural pecking order; to straighten out and recalibrate themselves. For instance, the APMC Mandi Boards or Marketing Committees (MCs); as they are generally known, will be compelled to become sans efficient, corruption and serious and; will presently don’t have the advantage of bringing in apathetic cash; absolutely by excellence old enough old laws that have been vigorously disproportionate in support of themselves; for quite a long time together.

Till now, these MCs had a free run and would frequently enjoy acts of neglect, to stash strong charges and commissions; while the hapless rancher would be left with only 15-20%, of the last purchaser value that you or I pay; for ranch items. So if say, one follows through on a retail cost of Rs 100 for every kg for a vegetable, the rancher in the current framework gets just Rs 15 or Rs 20, best case scenario. Be that as it may, with new Farm Bills, ranchers will make a better grade up, as the new Bills would destroy delegates from the condition, placing more cash in the possession of the cultivating local area.

Farmers Bill 2020 (Empowerment & Protection)

This Bill replaces the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Ordinance, 2020. Therefore please refer to our legislative brief on the Agriculture Ordinances, 2020.

Main provisions –

  • The new legislation will empower farmers for engaging with processors, wholesalers, aggregators, wholesalers, large retailers, exporters etc., on a level playing field. Price assurance to farmers even before sowing of crops. In case of higher market price, farmers will be entitled to this price over and above the minimum price.
  • It will transfer the risk of market unpredictability from the farmer to the sponsor. Due to prior price determination, farmers will be shielded from the rise and fall of market prices.
  • It will also enable the farmer to access modern technology, better seed, and other inputs.
  • It will reduce the cost of marketing and improve the income of farmers.
  • An effective dispute resolution mechanism has been provided with clear timelines for redressal.
  • The impetus to research and new technology in the agriculture sector.

Key Features

The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020

  • Farming agreement: The Ordinance provides for a farming agreement between a farmer and a buyer prior to the production or rearing of any farm produce.  The minimum period of an agreement will be one crop season or one production cycle of livestock.  The maximum period is five years unless the production cycle is more than five years.
  • Pricing of farming produces: The price of farming produce should be mentioned in the agreement.  For prices subjected to variation, a guaranteed price for the product, and a clear reference for any additional amount above the guaranteed price must be specified in the agreement.  Further, the process of price determination must be mentioned in the agreement.
  • Dispute Settlement: A farming agreement must provide for a conciliation board as well as a conciliation process for settlement of disputes.  The Board should have a fair and balanced representation of parties to the agreement.  At first, all disputes must be referred to the board for resolution.  If the dispute remains unresolved by the Board after thirty days, parties may approach the Sub-divisional Magistrate for resolution.  Parties will have a right to appeal to an Appellate Authority (presided by collector or additional collector) against decisions of the Magistrate.  Both the Magistrate and Appellate Authority will be required to dispose of a dispute within thirty days from the receipt of the application.  The Magistrate or the Appellate Authority may impose certain penalties on the party contravening the agreement.  However, no action can be taken against the agricultural land of the farmer for recovery of any dues.

Doubts –

  • Under contract farming, farmers will be under pressure and they will not be able to determine prices
  • How will small farmers be able to practice contract farming, sponsors will shy away from them
  • The new system will be a problem for farmers
  • In case of dispute, big companies will be at an advantage

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