2020 Indian agriculture acts

Indian agriculture acts of 2020, often referred to as the Farm Bills,[1][2] are three acts initiated by the Parliament of India in September 2020. The Lok Sabha approved the bills on 17 September 2020 and the Rajya Sabha on 20 September 2020.[3] The President of India, Ram Nath Kovind gave his assent on 27 September 2020.[4]

The protests against the new acts gained momentum in September 2020. Several farmers outfits announced an intensified agitation against the acts and called for a 'Bharat bandh' on September 25 which was supported by as many as 10 central trade unions and 18 political parties.[5][6][7]

On 12 January 2021 the Supreme Court stayed the implementation of the farm laws.[8] The Supreme Court appointed a committee to look into the grievances related to the farm laws.[8][9] The committee has asked the public for suggestions related to the farm laws by 20 February 2021.[10]

Background of farm acts

In 2017, the central government had released a number of model farming acts. The Standing Committee on Agriculture (2018–19), however, noted that several reforms suggested in the model acts had not been implemented by the states. In particular, the Committee found that the laws that regulated Indian agricultural markets (such as those related to agricultural produce market committees or APMCs) were not being implemented fairly and honestly or serving their purpose. Centralization was thought to be reducing competition and (accordingly) participation, with undue commissions, market fees, and monopoly of associations damaging the agricultural sector.[11]

A committee consisting of seven Chief Ministers was set up in July 2019 to discuss implementation.[11] The committee is yet to submit its report.[12] The centre promulgated three ordinances in the first week of June 2020.[11]

The Farm acts

The three farm acts include:[11]

  1. The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 [3]
    • expands the scope of trade areas of farmers' produce from select areas to "any place of production, collection, aggregation".
    • allows electronic trading and e-commerce of scheduled farmers' produce.
    • prohibits state governments from levying any market fee, cess, or levy on farmers, traders, and electronic trading platforms for the trade of farmers' produce conducted in an 'outside trade area'.
  2. Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020
    • provides a legal framework for farmers to enter into pre-arranged contracts with buyers including mention of pricing.
    • defines a dispute resolution mechanism.
  3. Essential Commodities (Amendment) Act, 2020
    • removes foodstuff such as cereals, pulses, potato, onions, edible oilseeds, and oils, from the list of essential commodities, removing stockholding limits on agricultural items produced by Horticulture techniques except under "extraordinary circumstances"[13]
    • requires that imposition of any stock limit on agricultural produce only occur if there is a steep price rise.[11]

Reactions

Government response

On 20 September 2020, Prime Minister Narendra Modi referred to the bills as a watershed moment in the history of Indian agriculture and stated the bills will "ensure a complete transformation of the agriculture sector" and empower tens of millions of farmers.[14] In the Prime Minister's Mann ki Baat radio address on 29 November 2020, he said that "all political parties had been making promises to the farmers but now these promises had been fulfilled."[15][16]

Several Union Ministers urged farmers not to have misconceptions about the reforms.[17][18] Rejecting demands for the inclusion of Minimum Support Price (MSP) as a mandatory provision in the Farm Bills, Minister of Agriculture & Farmers' Welfare Narendra Singh Tomar said that, while the government was committed to MSP, it was "not a part of the law" earlier and "is not" today.[19]

Independent analysts

The Chief Economist of the International Monetary Fund, Gita Gopinath, said the "farm bills and labour bills are very important steps in the right direction". She also stressed that the implementation of these laws must be right.[20]

On 1 January 2021, 866 academics from several educational institutes signed an open letter, expressing their support for the three farm laws. The signatories were from "DU, JNU, Gorakhpur University, Rajasthan University, Gujarat University and others".[21][22][23]

Kaushik Basu, former chief economist of the World Bank and professor of Economics at Cornell University called the new farm bills are "flawed" and "detrimental to farmers".[24] On 3 February 2021, 413 academicians from across the country and several abroad universities said in a statement that the new farm bills pose a major threat to farming communities all over India and urged the government to abandon it. The signatories to the statement were from Jawaharlal Nehru University, IIT Kanpur, IIT Madras, IISc Bangalore, Indian Statistical Institute Kolkata, Delhi University, Panjab University, IIT Bombay, IIM Calcutta, London Film School, University of Johannesburg, University of Oslo, University of Massachusetts, University of Pittsburgh and others.[25]

On 4 February 2021, the US State Department expressed support for the laws stating that they would improve market efficiency and private investment, while encouraging dialogue between the government and those who oppose the laws.[26]

Response from farmers and opposition parties

On 31 December 2020, the Kerala legislative assembly passed a resolution against the farm reforms and seek their withdrawal.[27][28]

The acts have faced protests from farmers in various parts of India alleging that it will hurt their earnings.[29] The main reasons for opposition is the uncertainty regarding the implementation of the reforms,[30] controversy surrounding the minimum support prices (MSPs)[31] and low bargaining power of the farmers are some of the fears that have led to the opposition to the bills.[32]

Lack of statutory support in the bills for the MSP is a major point of concern, especially for farmers from Punjab and Haryana, where 65% of wheat (2019) is procured at MSP by the Food Corporation of India and state agencies.[33]

Various opposition parties alleged that the bills were passed “unconstitutionally” in “complete disregard” of parliamentary norms and are anti-farmer and corporate-friendly.[34]

The protesters pointed out that the deregulation of the sugar industry in 1998, which paved the way for private establishments, did not result in a significant improvement in farmers' productivity or incomes. A state-led attempt in Bihar to deregulate the APMCs in 2006 has not resulted in an increase in farmers' income or improved infrastructure.[33]

The Shetkari Sanghatana, a farmers union in Maharashtra supported the bills and wants the market to decide the prices of agricultural commodities. It claimed that the minimum support prices have actually weakened farmers, instead of empowering them.[35][36]

The Bharatiya Kisan Sangh (BKS), a farmers organization, has demanded that the government send the bills to the Parliamentary Standing Committee on Agriculture and questioned the government's haste to get the bills passed.[37]

Protests

Since the proposal of these laws, different protests have come underway in different states of India. These protests are the first large-scale farmer protests since the Narendra Modi government came into power in 2014. On 26 November 2020, farmers from Haryana were stopped from entering Delhi by Haryana police.[38][39] At the border near Ambala, protesters were struck with water cannons and tear gas shells by the police forces; protestors threw stones and tossed police barricades into the river.[40] In response, the police used water cannons. Media have reported that trenches were dug by the police on certain routes into Delhi; the Haryana BJP government dug the National Highway connecting Haryana and Delhi. Sand-filled trucks and bulldozers were also placed on the path of the march to Delhi. Earlier, the house of Haryana's Chief Minister was surrounded by farmers.[41]

References

  1. "Farm bills: Are India's new reforms a 'death warrant' for farmers?". BBC News. 23 September 2021. Retrieved 27 January 2021.
  2. "Farm Bills have potential to represent significant step forward for agriculture reforms in India: IMF". The Hindu. PTI. 15 January 2021. ISSN 0971-751X. Retrieved 27 January 2021.CS1 maint: others (link)
  3. "Parliament passes The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and The Farmers (Empowerment and Protection) Agreement and Farm Services Bill, 2020". pib.gov.in. Retrieved 21 December 2020.
  4. "President Kovind gives his assent for 3 farm bills passed by Parliament". mint. 27 September 2020. Retrieved 6 October 2020.
  5. "Farm Bills fallout | Over 250 farmer outfits call for a 'Bharat bandh' on September 25". The Hindu. Special Correspondent. 18 September 2020. ISSN 0971-751X. Retrieved 4 February 2021.CS1 maint: others (link)
  6. "10 central trade unions to support nation-wide farmers protest on September 25". The New Indian Express. Retrieved 4 February 2021.
  7. "Bharat Bandh: 18 political parties extend support to nationwide protest of farmers on September 25". Zee News. 24 September 2020. Retrieved 6 February 2021.
  8. "Supreme Court Stays Implementation of Farm Laws, Sets Up Committee for Talks". The Wire. 12 January 2021. Retrieved 9 February 2021.
  9. "Farm laws: SC irked over criticism of court-appointed committee members". Hindustan Times. 20 January 2021. Retrieved 9 February 2021.
  10. "Supreme Court-appointed farm laws committee invites views, suggestions before February 20". India Legal. 28 January 2021. Retrieved 9 February 2021.
  11. "The Essential Commodities (Amendment) Bill, 2020". PRSIndia. 14 September 2020. Retrieved 27 November 2020.
  12. Niti, Ayog. "Achievements In The Year 2019-20". Retrieved 21 December 2020.
  13. "WHAT ARE FARM BILLS". Business Standard India. Retrieved 7 December 2020.
  14. "PM Modi calls passage of farm bills 'watershed moment' for agricultural sector". Hindustan Times. 20 September 2020. Retrieved 7 October 2020.
  15. "Mann ki Baat | Agriculture reforms have given farmers new opportunities, says PM". The Hindu. PTI. 29 November 2020. ISSN 0971-751X. Retrieved 1 December 2020.CS1 maint: others (link)
  16. "PM's address in the 18th Episode of 'Mann Ki Baat 2.0'". www.pmindia.gov.in. Retrieved 1 December 2020.
  17. "Govt invites farmers for talks today; PM says they are being misinformed". Business Standard India. PTI. 1 December 2020. Retrieved 1 December 2020.
  18. "PM Modi says opposition is misleading farmers and 'playing tricks' on them". Deccan Chronicle. PTI. 1 December 2020. Retrieved 1 December 2020.CS1 maint: others (link)
  19. "Committed to MSP but it was never part of law: Agriculture Minister Narendra Singh Tomar". The Indian Express. 24 September 2020. Retrieved 3 December 2020.
  20. "Farm, labour bills are steps in right direction: Gita Gopinath, Chief Economist, IMF". The Economic Times. 16 October 2020. Retrieved 2 January 2021.
  21. "866 academics, including 7 VCs, back new farm laws". The Times of India. Retrieved 2 January 2021.
  22. "'Govt won't take food from plate' — academicians from DU, JNU, other varsities back farm laws". ThePrint. Retrieved 2 January 2021.
  23. "866 academics sign open letter to back farm laws". IndiaToday. Retrieved 2 January 2021.
  24. "India's new farm bills 'flawed', 'detrimental to farmers': Kaushik Basu". www.businesstoday.in. Retrieved 6 February 2021.
  25. "Academicians seek repeal of farm laws, say these pose major threat to farming communities". The Economic Times. Retrieved 6 February 2021.
  26. ""Will Improve Efficiency Of India Markets": US On Farm Laws Amid Protest". NDTV.com. Retrieved 4 February 2021.
  27. "Kerala Assembly passes resolution demanding withdrawal of farm laws passed by Parliament". Hindustan Times. 31 December 2021. Retrieved 31 December 2020.
  28. "Farmer Protest Live Updates: Kerala Passes Resolution Seeking Removal Of 3 Farm Laws". NDTV. 31 December 2020. Retrieved 31 December 2020.
  29. "Farmers across India protest against farm bills. In photos". Hindustan Times. 28 September 2020. Retrieved 6 February 2021.
  30. "Farm bills: Are India's new reforms a 'death warrant' for farmers?". BBC News. 23 September 2020. Retrieved 27 November 2020.
  31. "MSP for farmers: How is it fixed, and how binding is it?". The Indian Express. 30 November 2020. Retrieved 1 December 2020.
  32. "Quixplained: What are the 3 farm laws, and why are farmers protesting?". The Indian Express. 17 October 2020. Retrieved 27 November 2020.
  33. Mandal, Monika (2 December 2020). "Why Farmers Are Worried About New Laws; It's The History". www.indiaspend.com. Retrieved 3 December 2020.
  34. "President Kovind gives his nod to all 3 farm bills, government notifies them". Hindustan Times. 27 September 2020. Retrieved 6 February 2021.
  35. Jadhav, Radheshyam. "As Maharashtra farmers get more from trade, want MSP out". @businessline. Retrieved 8 December 2020.
  36. "Explained: Who are Shetkari Sanghatana, the group backing Govt on farm laws?". The Indian Express. 23 December 2020. Retrieved 4 February 2021.
  37. Anshuman, Kumar. "Govt must send farm bills to the parliamentary standing committee: Bhartiya Kisan Sangh". The Economic Times. Retrieved 1 December 2020.
  38. Ghazali, Mohammad (27 November 2020). Ghosh, Deepshikha (ed.). "Determined Haryana Cops Used This Tactic To Stop Farmers". NDTV. Retrieved 27 November 2020.
  39. "India farmers brave tear gas as they protest against 'black laws'". Al Jazeera. Retrieved 27 November 2020.
  40. "'Ready for Battle': Farmers Halt at Sonepat Post Day 1 of Protests". TheQuint. 26 November 2020. Retrieved 27 November 2020.
  41. Varma,Anuja, Gyan (26 November 2020). "Govt to meet protesting farmers on 3 Dec to discuss new laws". mint. Retrieved 27 November 2020.
  • Ajay Shah (7 February 2021). The Tragedy of Our Farm Bills (interview podcast). The Seen and the Unseen with Amit Verma. 58 minutes in. Episode 211. Retrieved 7 February 2021.
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