In September 20202, the Indian government passed three agricultural bills, which are – Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bil, 2020, Farmers (Empowerment and Protection) Agreement of Price Assurance, Farm Services Bill, 2020, and the Essential Commodities (Amendment) Bill, 2020.
Amid the chaos by opposition party leaders and farmer groups, the controversial bills were passed by the Indian Parliament. Along with rigid opposition, some voices have also come out in support of these bills.
Here is this article you have the farmers’ bill 2020 explained that will help you understand every cons and pros of it. So, let’s begin!
What is the Farmer’s Bill?
Since the time of three controversial new farmers’ bills got passed without much debate in Parliament, people all over the country are protesting energetically against these. Regardless of concrete fights by farmers and opposition political parties across the country, President Ram Nath Kovind gave his assent for these three farmers bill India. Now, let’s see what this bill is all about.
The new farmers’ bill allows the farmers to sell their products directly to private buyers breaking the monopoly of man is regulated by the government. The people get empowered to get into a legal deal with the companies and produce agro-products for them. The farmers’ bill India also allows stocking of food articles by the agri-businesses removing the ability of the government to impose arbitrarily.
Here’s all you need to know about new agriculture reform bill and facts about MSP
Pros of Farmers Bill 2020 Explained
According to the government, the recently passed bills for farmers will help in transforming the agriculture sector as these are believed to increase the farmer’s income. The Centre believes that the people engaged in farming will become independent and can get better prices for their products.
A new system where the farmers and traders can do business outside the Mandis can be created as per the bill. The intra-state business also gets encouraged here along with the reduction of transportation cost.
The people also get the provision for entering into a legal framework with the companies, exporters, retailers who are interested to buy their products. This will also give the farmers access to modern technology thus improving their production.
As per the government, this bill can also prove to be beneficial for farmers of small and marginal range with the land of fewer than five hectares. The bill also aims at attracting FDI as it removes pulses and cereals from the essential commodities list.
Cons of Farmers Bill 2020 Explained
The bill passed for farmers to allow trade of crops outside the government regulated mandis or markets thus hampering the monopoly of the agricultural produce market committee.
MSP for crops is declared by the government but in the Promotion and Facilitation Bill 2020, there is no statutory backing to MSP. There is no mention of this in the entire bill and this is what concerns the people the most as they do not have anything to do with the legal system but MSP matters to them. Read more on MSP in agriculture to know what is MSP in agriculture?
Due to the pricing of sugarcane being governed under the Essential Commodities Act, the Sugarcane (Control) Order, 1966, this crop has statutory MSP implementation.
Things that are Bothering the Farmers
The agriculture 2020 bills have triggered strong protests all over the country. Let’s have a look at the issues that are triggering so many protests across the nation.
- Middlemen will be affected.
- These new farmers’ bills might end MSP or minimum support prices and this bothers the farmers.
- Another concern is the lack of bargaining capability with big companies. The people involved in farming might get the freedom to deal with the biggest of the companies but due to the lack of knowledge, he/ she might not be able to negotiate the best possible terms.
- Outside the mandis or government-regulated markets, there is hardly any regulation, and grievance redressal system is also not present there.
- The new farmers’ bill may weaken the APMC system which is considered to be very helpful for small farmers.
- As per the suggestions of agricultural economists, the focus should be given on strengthening APMCs rather than transferring everything to private entities.
- Many are fearing that the people involved in agriculture might be turned into slaves due to contractual farming.
- Due to the removal of restrictions on food storage, big companies may store agro products in huge quantities and create artificial hikes in price.
The farmers’ bill 2020 has been creating a storm of protest all over the nation. While some are supporting the bills as they believe that these will eventually modernize the Indian agricultural sector, some are fearing the worst situation that these bills can lead to.
As an aspirant of the UPSC IAS exam, you should hold a strong opinion on this topic as there is a high probability that you may get questions from this topic. So, now when you know everything about the bill, what is your take on it? Share your thoughts with us by commenting in the below section.