Radio Feature on Farm Bills 2020
Uploaded by
Gauri GargRadio Feature on Farm Bills 2020
Uploaded by
Gauri Garg- Introduction to the Bills
- Opposition to the Bills
- Farmer Concerns
- Conclusion
Common questions
Powered by AIArticle 246 of the Indian Constitution adopts a threefold distribution of legislative powers between the Union and the states across the Union List, State List, and Concurrent List in the Seventh Schedule. Agriculture appears in the State List, granting states the primary legislative power. The 2020 farm bills issued by the central government are contentious as they intrude on this state authority, raising concerns about a central overreach and disruption of state powers over agriculture as outlined in the constitution .
Farmers express concerns about MSP because the farm bills do not explicitly offer any legal guarantee or mechanism to ensure Minimum Support Prices for their produce. There is apprehension that without such guarantees, private corporations could exploit farmers by dictating lower prices, thereby leading to potential financial insecurity for farmers .
The farm bills could alter negotiation dynamics by giving an upper hand to large agribusinesses due to their financial might and organizational capacity. Without a mandated minimum price, small farmers may have weaker bargaining positions, potentially leading to less favorable terms in contracts, reduced engagements with sponsors, and diminished benefits from the proposed agricultural reforms .
The farm bills challenge the principles of cooperative federalism because agriculture and markets fall under the State List as per entries 14 and 28 of List II. The central government's introduction of these ordinances is perceived to encroach upon the states' authority, disrupting the balance of power outlined in the constitution and thus are viewed as against the spirit of cooperative federalism enshrined in the Constitution .
The provisions for electronic trading could enhance market accessibility for farmers, enabling them to reach a broader customer base beyond local markets. This can lead to better price discovery, reduce dependency on middlemen, and improve profit margins by permitting direct sales, thus potentially raising farmers' income and market efficiency .
The absence of a price fixation mechanism could result in price exploitation by corporate entities, leading to volatility in income for farmers who lack negotiating power. This could discourage them from investing in agriculture, potentially reducing agricultural productivity and economic stability. Moreover, parity in prices across different regions might worsen, affecting the sustainability of small-holder agriculture .
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 opens up agricultural sale and marketing outside the notified Agricultural Produce Market Committee (APMC) mandis for farmers, removes barriers to inter-State trade, and provides a framework for electronic trading of agricultural produce. These changes are intended to create more freedom for farmers to sell their produce outside the traditional, often monopolistic mandis, thereby aiming to increase competitiveness and better prices through wider market access .
The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 provides a framework for trade agreements concerning the sale and purchase of farm produce, listing terms and conditions for supply, quality, grade, standards, and price of farm produce and services in a written farming agreement. However, potential issues such as lack of a price fixation mechanism and the risk of exploitation due to the dominance of private corporations are concerns, as they may not guarantee fair pricing to farmers .
Deregulating food commodities like cereals, pulses, oilseeds, edible oils, onions, and potatoes could encourage hoarding by exporters, processors, and traders, particularly during harvest seasons when prices are low. They might release these commodities when prices are higher, which can undermine food security by causing irrational price volatility and increasing black marketing, while states would lack information on stock availability, which could further destabilize the market .
In addition to the 2020 farm bills, farmers are demanding legally guaranteed remunerative prices, maximum procurement commitments by the government tied with local food schemes, the state's market intervention, agri-credit reforms focusing on small and marginal holders, neglected regional needs, and improvements in crop insurance and disaster compensation .
