What are these controversial Farmer Laws?


In September 2020, during the Monsoon Session of the Indian Parliament, the BJP led NDA government passed three controversial bills-

  1. The Farmers`Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
    This bill was intended to stop the role of APMC Mandis in agriculture, thus enabling farmers to trade their produce anywhere and everywhere in the country. This will essentially reduce the role of middlemen in being a business facilitator. 

  2. The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020
    This bill will empower the farmers to engage with business and corporate houses to make legal contracts which will essentially be the basis for trade between both. It will enable the farmers negotiate with them on the price for their produce and their requirements. On complaints regarding non-compliance can be raised with Sub-District Magistrate. 

  3. The Essential Commodities (Amendment) Act, 2020
    This is bill which has the list of ‘Essential Commodities’ and now with its amendment, the cereals, pulses, oilseeds, edible oils, onion and potatoes are now removed from the list thus ending the restrictions and regulations on the same.  The government will still be able to control the prices during calamities and famine. This law will help government from refraining interfering in growing and sale of these crops. This will give rise to free market. 

These three bills after passing in both the houses, received President’s assent as well and came into effect.  

These three laws divided the entire community into two sides. The first one, those who support these laws and call it reformative, watershed moment, liberalizing, etc. while the second one who are against the laws, who claim that these will kill the Farming in India, which was already in a dying state. 

Modi Government in its manifesto had already promised doubling of farmer’s income by 2022 and the government believes that through these and entry of private players in this sector will enable farmers to earn more. Those who support these bills also believe that the farmers can now have more autonomy in deciding what they need to do with these crops, what all they can grow, and where to sell them. 

The critics of these bills believe that the private players will exploit small and marginal farmers for their profits and it is farmers who are always at loss. They also cite the examples of US and EU where free market isn’t working well for the farmers and how they provide large subsidies to farmers to sustain the farming sector. 

From September itself, Punjab and Haryana saw massive protests. These are the two states where APMCs are really strong. On November 25 they called for Delhi Chalo March where they wanted to head for Delhi to show their protest with the Government and also ask them to withdraw these laws. In addition to these laws, they have presented a detailed set of demands and have started talks with the government. Even today farmers are still protesting in Delhi and the situation is still under a deadlock. 

Suggested for further reading-   

Why are farmers protesting? What is the government response?


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Jairam R Prabhu 

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