Farm laws 2020 explained 2.02

Farm Laws 2020 Explained: Everything you
need to know about the new agriculture
reforms in India
The SC stayedthe implementationof the FarmActs 2020 and constitutedafour-membercommittee to
make recommendationswithintwomonths.The panel has notifiedadedicatedportal togetviewsof
farmersindividually.The Governmenthasproposedthatthe implementationof FarmLaws2020 should
be kepton holdfora periodof one to one and a half years,whichthe farmershave refused.
ArfaJavaid
CreatedOn:Jan 22, 2021 22:05 IST
ModifiedOn:Jan22, 2021 22:05 IST
Farm Laws 2020
In September 2020, President Ram Nath Kovind gave his assent to the three 'Agriculture Bills'
that were earlier passed by the Indian Parliament. These Farm Acts are as follows:
1- Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
2- Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services
Act, 2020
3- Essential Commodities (Amendment) Act, 2020
GK Quiz on Farm Laws 2020
Farmers (Empowerment and Protection) Agreement on
Price Assurance and Farm Services Act, 2020

Citation: Act No. 20 of 2020
Territorial extent: India
Lok Sabha: The Bill was introduced in Lok Sabha on 14 September 2020, passed in Lok
Sabha on 17 September 2020.
Rajya Sabha: It was passed in Rajya Sabha on 20 September 2020.
Presidential Assent: The Bill received Presidential Assent on 24 September 2020.
Introduced by: Minister of Agriculture and Farmers Welfare, Narendra Singh Tomar
1- Background: On 5 June 2020, The Farmers (Empowerment and Protection) Agreement on
Price Assurance and Farm Services Ordinance, 2020 was promulgated by the Union Cabinet.
2- Act: It creates a national framework for contract farming through an agreement between a
farmer and a buyer before the production or rearing of any farm produces.
3- Provisions:
(a) Farming Agreement: The Act provides for a farming agreement between a farmer and a
buyer prior to the production or rearing of any farm produce.
(b) Minimum Period of Farming Agreement: The minimum period of the farming agreement
shall be for one crop season or one production cycle of livestock.
(c) Maximum Period of Farming Agreement: The maximum period of the farming agreement
shall be five years. It also states that if the production cycle of any farming produce is longer and
may go beyond five years, the maximum period of farming agreement may be mutually decided
by the farmer and the buyer and explicitly mentioned in the farming agreement.
(d) Pricing of Farming Produce: The pricing of farming produce and the process of price
determination should be mentioned in the agreement. For prices subjected to variation, a
guaranteed price for the produce and a clear reference for any additional amount above the
guaranteed price must be specified in the agreement.
(e) Settlement of Dispute: The Act provides for a three-level dispute settlement mechanism--
Conciliation Board, Sub-Divisional Magistrate and Appellate Authority.

Farmers' Produce Trade and Commerce (Promotion and
Facilitation) Act, 2020
Presidential Assent: The Bill received Presidential Assent on 24 September 2020.
Introduced by: Minister of Agriculture and Farmers Welfare, Narendra Singh Tomar
1- Background: On 5 June 2020, the Farmers' Produce Trade and Commerce (Promotion and
Facilitation) Ordinance, 2020 was promulgated by the Union Cabinet.
2- Act: It permits intra and inter-state trade of farmers’ produce beyond the physical premises of
Agricultural Produce Market Committee (APMC) markets and other markets notified under the
state APMC Acts.
3- Provisions:
(a) Trade of Farmers' Produce: The Act allows the farmers to trade in outside trade area such
as farm gates, factory premises, cold storages, and so on. Previously, it could only be done in the
APMC yards or Mandis.
(b) Alternative Trading Channels: It facilitates lucrative prices for the farmers via alternative
trading channels to promote barrier-free intra-state and inter-state trade of agriculture produce.
(c) Electronic Trading: Additionally, it allows the electronic trading of scheduled farmers’
produce (agricultural produce regulated under any state APMC Act) in the specified trade area. It
will also facilitate direct and online buying and selling of the agricultural produce via electronic
devices and the internet.
(d) Market Fee Abolished: As per the Act, the State Governments are prohibited from levying
any market fee or cess on farmers, traders and electronic trading platforms for trading farmers’
produce in an 'outside trade area'.

Essential Commodities (Amendment) Act, 2020
Status: Amended
Presidential Assent: The amendment received Presidential Assent on 26 September
2020.
1- Background: On 5 June 2020, the Essential Commodities (Amendment) Ordinance, 2020
was promulgated by the Union Cabinet.
2- Act: It is an act of Indian Parliament which was enacted in 1955 to ensure the delivery of
certain commodities or products, the supply of which if obstructed owing to hoarding or black-
marketing would affect the normal life of the people. This includes foodstuff, drugs, fuel
(petroleum products) etc.
3- Powers of Central Government:
(a) The Government of India regulates the production, supply, and distribution of a whole host of
commodities it declares ‘essential’ in order to make them available to consumers at fair prices.
(b) The Government can also fix the MRP of any packaged product that it declares an 'essential
commodity'.
(c) The Centre can add commodities in this list when the need arises and can take them off the
list once the situation improves.
(d) If a certain commodity is in short supply and its price is spiking, the Government can notify
stock-holding limits on it for a specified period.
4- Powers of State Government: The respective State Governments can choose not to impose
any restrictions as notified by the Centre. However, if the restrictions are imposed, traders have
to immediately sell any stocks held beyond the mandated quantity into the market. This is done
to improve supplies and brings down prices.
5- Amendment: With the amendment in the Act, the Government of India will list certain
commodities as essential to regulate their supply and prices only in cases of war, famine,

extraordinary price rises, or natural calamities. The commodities that have been deregulated are
food items, including cereals, pulses, potato, onion, edible oilseeds, and oils.
6- Stock Limit: As per the amendment, the imposition of any stock limit on agricultural produce
will be based on price rise and can only be imposed if there's-- a 100% increase in the retail price
of horticultural produce and 50% increase in the retail price of non-perishable agricultural food
items.
7- Calculation: The increase will be calculated over the price prevailing immediately preceding
twelve months, or the average retail price of the last five years, whichever is lower.
It is to be noted that these restrictions will not be applied to stocks of food held for public
distribution in India.
Why are Indian farmers protesting?
Indian farmers are fearing that they might lose more than they could gain after the new Farms
Laws 2020 thereby taking the protest to the streets.
As quoted by ANI, Bhartiya Kisan Union leader RakeshTikait stated, " They (Central
Government) want amendment in them (Farm Laws 2020) but we want these laws to be repealed.
We don’t want changes. We will end our protest only when these laws are withdrawn. Like the
government brought the three bills, they should also bring a bill on the MSP."
ANI further quoted BKU leader Rakesh Tikait stating that they are ready to have future talks on
Farm Laws 2020 with the Government.
As reported by AlJazeera, 27-year-old Rashpinder Singh stated that the Indian Government has
left the farmers at the mercy of big corporations. It is preposterous to believe that farmers who
have small landholdings will have any bargaining power over private players.
As Farmers' agitation against three contentious Farm Laws entered day 34 (on 29 December
2020), the Farmer's Union on 29 December 2020 has accepted Centre's proposal to hold sixth
round of talks.
After agitating farmers accepted Centre's proposal to hold sixth round of talks, Centre sent an
invitation for talks on 30 December 2020 to 40 farmer representatives which have been accepted
by the farmers.
As per a letter by Union Agriculture Secretary Sanjay Agarwal, all the issues related to
farmers, including the three farm laws, MSP-based procurement, the Commission for the Air
Quality Management in National Capital Region and Adjoining Areas Ordinance, 2020, and the
Electricity Amendment Bill 2020 will be discussed in detail with the 40 representatives of farm
unions.

The talks scheduled on 30 December 2020 at 2 p.m. between the Centre and 40 farmer
representatives took place at Vigyan Bhawan, New Delhi.
The sixth rounds of talks between the Central Government and the farmer unions reached
to conclusions on the issues related to the environment and Electricity Acts, however, their
demand of repealing the three Farm Laws 2020 and legal guarantee for MSP (Minimum
Support Price) remained inconclusive. The seventh round of talks between the Centre and
the farmers took place on 4 January 2021 at Vigyan Bhawan and failed to reach a
breakthrough.
As reported by ANI, Sukhwinder S Sabra, Joint Secy, Kisan Mazdoor Sangharsh Committee
stated that if their demands aren't met on 4 January 2021, then, they'll hold tractor march on
January 6 and 26, 2021.
Speaking from the protest site in favour of tractor march, Yogendra Yadav stated, “We have
decided that on January 7, we will take out a tractor march at four borders of Delhi including
Eastern and Western peripheral. This will be a trailer for what lies ahead on January 26.”
As per farmers' leaders, around 3,000 tractors participated in the tractor march held on 7
January 2021 on Kundli-Manesar-Palwal or Western Peripheral expressway and at least
500 on the Kundli-Ghaziabad-Palwal or Eastern Peripheral expressway. It is important to
note that the two expressways (Eastern and Western Peripheral Expressway) form a ring
around the National Capital Delhi.
The eighth round of talks between the Centre and the farmers took place on 8 January 2021 at 2
p.m. at Vigyan Bhawan. Union Minister for Agriculture Narendra Singh Tomar, Union Minister
for Railways, Commerce and Industry and Consumer Affairs, Food and Public Distribution
Piyush Goyal and Union Minister of State for Commerce and Industry Som Prakash participated
with the representatives of 41 Farmers’ Unions.
Union Minister for Agriculture Narendra Singh Tomar stated that the Farm Laws 2020 have
been made keeping in mind the benefits of farmers throughout the country. The government is
concerned about farmers and wants the agitation to end but due to no solutions, forthcoming
issues could not be resolved. He further praised the farmers for keeping the agitation
disciplined.
The Farmers’ Unions have asked for a repeal of the Farm Laws 2020, however, the Central
Government again suggested amendments. The ninth round of talks took place on 15 January
2021.
The 10th round of talks was scheduled on 19 January 2021 which is postponed by a day to
20 January 2021. Ministry of Agriculture in a statement stated that the government's ministerial
meeting with farmers unions will be held on 20 January 2021 at 2 pm at Vigyan Bhawan, instead
of 19 January 2021.

On 20 January 2021, Minister of Agriculture Narendra Singh Tomar, Minister of Railways,
Commerce and Industry and Consumer Affairs, Food and Public Distribution Piyush Goyal and
Minister of State for Commerce and Industry Som Prakash participated in the 10th round of
talks with the representatives of 41 Farmers’ Unions at Vigyan Bhawan, New Delhi.
The Government has proposed to the farmers' union that the implementation of Farm Laws
2020 should be kept on hold for a period of one to one and a half years. Amid the said time
period, the representatives of farmers' Union and the Government can discuss the issues
related over the contentious Farm Acts 2020 to arrive on an appropriate solution.
The 11th round of talks between the Centre and the farmers' union was scheduled on 22
January 2021. The farmers refused to accept the Centre's proposal to put the controversial laws
on hold for a year-and-a-half.
It is to be noted that 11 rounds of talks have taken place so far between the Government and the
Farmers' representatives. However, no solution has been found to date.
Tractor March on 26 January 2021
Speaking from the protest site in favour of tractor march, Yogendra Yadav stated that a tractor
march will be carried out on 26 January 2021.
The Supreme Court stated that the proposed tractor rally on the Republic Day (26 January)
by protesting farmers is a 'law and order' matter and Delhi Police will decide who should be
allowed to enter Delhi.
Police and Kisan Unions reached an agreement for limited rally on three routes on the
peripherals of Delhi with certain restrictions like the rally will start after conclusion of Republic
day celebration around 12 AM and must conclude at the agitation site by 5 PM. Undertaking to
this effect was rendered by Union’s representatives.
Unfortunately rally was hijacked by unsocial elements where even union leaders deemed
to have colluded. Ultimately Delhi suffered at the hands of hooligans and brought disrepute to
the nation. What happened has become history for all Indians to be ashamed off. Has stretched
the democracy unimagined by constitution.
Two farmer unions on Wednesday withdrew from the ongoing agitation on Delhi's borders
against the three farm laws, a day after violence broke out in the national capital during the
tractor parade.
Meanwhile, the Delhi Police has detained 200 people in connection with the violence that
broke out in various parts of Delhi during the farmers' tractor rally on Tuesday. In a
statement, the Delhi Police on Wednesday said that the "detained persons will be arrested
soon."

Six Delhi Transport Corporation (DTC) buses and five police vehicles were damaged in the
violence that broke out at ITO during the farmers' tractor parade in the national capital on
Republic Day, according toan FIR registered in connection with the incident. It also claimed
that several police personnel were injured and 70 iron barricades damaged when over 10,000
protesting farmers on nearly 600 tractors stormed the area.
The tractor parade on Tuesday that was to highlight the demands of the farmer unions to
repeal three new agri laws dissolved into anarchy on the streets of the city as tens of
thousands of protesters broke through barriers, fought with police, overturned vehicles and
hoisted a religious flag from the ramparts of the iconic Red Fort.
Farmers, mostly from Punjab and Haryana, have camped outside New Delhi for over two
months to protest against three laws that open up India’s agriculture markets. Nine rounds of
talks with farmers’ unions have failed to end the protests, as farm leaders rejected the
government’s offer to delay the laws for 18 months, making a push for repeal instead.
The protesting farmers have also announced a foot march to Parliament on February 1,
when the annual Budget is presented, to press for their demands including a repeal of the
three new agriculture laws
Income Tax Raid on Arhtiyas
The Income Tax raids were conducted at the premises of big Arhtiyas of Punjab within
four days of issuing notices, without waiting for responses to the notices. Around 16 Arhtiyas
have been servedIncome Tax notices. There are around 28,000 licensed commission agents
in Punjab.
As per leaders of different unions, Arhtiyas are standing shoulder-to-shoulder with farmers
in their ongoing protest against the Farm Laws 2020 and the raids were an attempt to divide
the farmer and arhtiya unity to sabotage this movement.
Thus, Arhtiyas in the Indian State of Punjab have decided to shut down all the grain
markets in the state from 22-25 December 2020 to express resentment over the Income Tax
raids.
Why the Indian farmers rejected the Central Government's
proposal?

1- Central Government proposed that the respective State Governments can levy cess on
the private mandis.
The proposal was rejected by the farmers as they believe that the creation of private mandis
along with APMC will drive agriculture business towards private mandis, ending government
markets, intermediary systems and APMCs. As a result, big corporate houses will overtake
markets, thereby procuring farm produce at incidental rates. The farmers believe that the
Government may delay the procurement (as in the case of paddy), turning the public markets
inefficient and redundant.
2- Central Government proposed that they will give written assurance for the continuation
of the existing MSP system.
The proposal was rejected by the farmers as they believe that the new Farm Laws 2020 are
brought to dismantle APMCs. Thus, they are demanding a comprehensive Act on MSP pan India
and for all crops. They are of the view that a written assurance from the Union Government is
not a legal document and holds no guarantee.
3- Central Government proposed that they will direct the State Governments to register
traders in order to regulate them.
The proposal was rejected by the farmers as the new Farm Laws 2020 have no provision to
regulate the traders. As per new Laws, any PAN cardholder can procure grains from the markets
at wishful prices and hoard the farm produce. The farmers believe that the Central Government is
not ready to take responsibility for the ongoing issue as they want the State Governments to
regulate the traders.
4- Central Government proposed that under the contract farming law, farmers will have
the alternative to approach the court and their land will be safe as no loan will be given on
farmers’ land and their buildings by mortgaging it.
The proposal was rejected by the farmers as the history of contract farming has many examples
of non-payment by the companies making various excuses like substandard produce. For
example, in Sugarcane produce, payments were held for years; many cases of non-procurement
have been witnessed citing 'poor quality', driving the farmers into a debt trap. Thus, farmers do
not have money to repay the loans and have no option to sell/lose their lands.
Government's take on the farmers' protest
On 20 September 2020, Prime Minister Modi referred the Farm Bills 2020 as a watershed
moment in the history of Indian agriculture, empowering millions of farmers.
On 29 November 2020, PM Modi in his Mann Ki Baat radio address to the nation stated that
all the political parties had been making promises to the farmers but now these promises had
been fulfilled, citing an example of the Maharashtrian farmer whose payments for his corn crop
was kept pending by traders for four months.

He further stated that under new Farm Laws 2020, all the dues of the farmers must be cleared
within three days of procurement, failing which, the farmer can lodge a complaint.
On 30 November 2020, Prime Minister Modi stated that the farmers are being deceived on
these historic agriculture reform laws by the same people who have misled them for decades. He
added that the old system was not replaced rather new options were added under the Farm Laws
2020 for the farmers.
Prime Minister Modi stated, “The new agricultural laws have been brought in for benefit of
the farmers. We will see and experience the benefits of these new laws in the coming days.”
Union Minister of Agriculture and Farmer Welfare, Rural Development and Panchayat
Raj, Narendra Singh Tomar stated that the government is committed to MSP, however, it was
"not a part of the law" earlier and "is not" today.
Minister of Agriculture and Farmer Welfare, Rural Development and Panchayat Raj, Narendra
Singh Tomar in a Press Conference stated, "The Government is ready to consider with an open
mind any provision in the new laws where farmers have any issues and we want to clarify all
their apprehensions."
In an exlusive interviewtoDainikJagran, Haryana's Deputy CM and JJP ChiefDushyant SinghChautala
statedthat he will tenderhisresignation if he fails to ensure thata farmergetsMSPfor his crops.
On 27 December2020, Chief Ministerof Delhi, ArvindKejriwal visitedSinghuBorderandinteractedwith
the protestingfarmers.He furtherchallengedthatanyUnionMinistershoulddebate withthe protesting
farmersto make itclear whetherthe lawsare beneficial orharmful.
Supreme Court to hear plea on farmers' agitation
The Supreme Court will hear a plea seeking immediate removal of farmers from Delhi borders
on 11 January 2021 filed by law student Rishabh Sharma. A Bench of Chief Justice S A Bobde,
Justice A S Bopanna and Justice V Ramasubramanian will hear the petition.
The petition stated that the commuters are facing hardships due to blockades. Emergency and
medical services have been severely impacted due to the farmers' agitation. The petition further
stated that the farmers should be shifted to a fixed place allotted by the Government and claimed
that farmers were allowed to protest peacefully at Nirankari ground in Burari but they refused to
accept the offer and are still blocking the borders.
On 11 January 2021, the Supreme Court stayed the implementation of the three Farm Acts 2020
and constituted a four-member committee to make recommendations on the same. A bench
headed by Chief Justice of India S. A. Bobde gave the panel two months time to submit its report
for a 'fair, equitable and just solution'.
Members of the Committee

1- Bhupinder Singh Mann, the national president of the Bhartiya Kisan Union and All India
Kisan Coordination Committee. (disassociated himself from the SC formed panel).
2- Dr. Parmod Kumar Joshi, an agricultural economist who is also the Director for South Asia,
International Food Policy Research Institute.
3- Ashok Gulati, agricultural economist and former chairman of the Commission for
Agricultural Costs and Prices.
4- Anil Ghanwat, the chief of Shetkari Sanghatana.
On 19 January 2021, the farmers' unions have refused to attend the first meeting of the SC
appointed committee to resolve the ongoing agitation over the contentious Farm Acts 2020,
sticking to their demands of repealing the farm laws.
Spokesperson of Bhartiya Kisan Union, RakeshTikait stated, "We don't know, we're not
going (to the first meeting of SC-formed committee). Nobody from the agitation approached
Court. The government brought the Bill through Ordinance, it was tabled in the House. It'll go
back the same route it came from."
Dedicated Portal for farmers
SC appointed panel for deliberations on the three contentious Farm Acts 2020 has notified a
dedicated portal to get views of farmers individually. The panel has also decided to hear at
least 20 organizations on the first day of consultations, i.e., 21 January 2021.
December 8 Bharat Bandh called by Farmers' Union
Ahead of 'Bharat Bandh', Delhi's Chief Minister Arwind Kejriwal is on his way to Singhu
border. In addition to this, leaders of 11 parties including Congress president Sonia Gandhi,
DMK chief M K Stalin, NCP patriarch Sharad Pawar, Samajwadi Party chief Akhilesh Yadav
and Left Front’s Sitaram Yechury and D Raja stated that they will lend their 'whole-hearted'
support to the December 8 Bharat Bandh called by Farmers' Union, The Times of India
reported.
A day after the scheduled Bharat Bandh called by Farmers' Union, Union Agriculture
Minister, Narendra Singh Tomar has called a meeting on 9 December 2020 as the fifth round of
talks remained inconclusive with farmers' leaders.
Criticism
Farmers have called the new Farm Laws 2020 as 'corporate-friendly' and 'anti-farmer'.
(a) President of the Maharashtra Rajya Bazaar Samiti Sahakari Sangh, Dilip Mohite Patil
claimed that around 100-125 market committees in Vidarbha and Marathwada regions have

reported almost no business and are on the verge of closure after the announcement of the central
Ordinance.
(b) Food Processing Industries Minister, Harsimrat Kaur Badal of Shiromani Akali Dal resigned
from her post in protest against these Bills.
(c) Former Chief Minister of Punjab, Prakash Singh Badal returned his Padma Vibhushan to
protest 'the betrayal of farmers by the Government of India'.
(d) Canadian Prime Minister Justin Trudeau stated, "Let me remind you, Canada will always be
there to defend the rights of peaceful protesters. We believe in the process of dialogue. We’ve
reached out through multiple means to the Indian authorities to highlight our concerns. This is a
moment for all of us to pull together."
To this, the Indian Government reacted sharply stating that his remarks are “ill-informed” and
“unwarranted”.
The Ministry of External Affairs (MEA) official spokesperson stated, "We have seen some ill-
informed comments by Canadian leaders relating to farmers in India. Such comments are
unwarranted, especially when pertaining to the internal affairs of a democratic country. It is also
best that diplomatic conversations are not misrepresented for political purposes."
(e) As reported by PTI, social activist Anna Hazare has threatened to go on a hunger strike if his
demands on issues concerning farmers are not met by the Central Government by the end of
January 2020. He further stated that it would be his 'last protest'.
(f) Congress Communication Chief Randeep Surjewala while addressing a press conference
attacked Prime Minister Modi over three Farm Acts 2020 and stated that if he can’t repeal the
Fram Laws and has to depend on the Supreme Court to break the deadlock with farmers, he must
resign from the post of Prime Minister.
Congress Communication Chief, Randeep Surjewala stated, "This is the first government in the
past 73 years history of the country that is grossly abdicating its responsibility and telling the
farmers to approach the Supreme Court. These three controversial agriculture laws have not
been enacted by the Supreme Court but have been forcibly passed by the Modi government in
Parliament.”
He further added, “The Constitution has not given the responsibility of framing the laws to the
Supreme Court but to the Parliament of India. If this government is incapacitated to discharge
this responsibility, then the Modi government has no moral authority to remain in power even for
a minute."
Moot Questions
Some questions which comes to me as an outsider to law are as under

1.Can a bill passedby Parliament and assent given by President be repealed without
following parliamentary procedure ?Are we moving towards Laessez-faire ?Is it a new
experiment by our learned elites Netas and Party?Are we witnessing Lathi raj again?
2. Such demonstration in view of existing pandemic justified? What happens to already
slowed economy? How can law come to the rescue of the nation?How does Sec 2 of
Epedemic Diseases Act 1897 and DisasterManagement Act 2005 became tool in the hand of
Govt.
3.Shouldn’t law take is course to protect life and spread of disease?
4.Shouldn’t economic loss accrued due to closure of factory and allied extra cost be
recovered from demonstrators? Would it be infringement of Fundamental Rights?
5. Are all tractor owners farmers or present day Zamindars who in any case have been
contracting their land though un officially? If not how does law help executive to deal with
such demonstrations? Can Executive prevent misuse of mandir/Gurudwara corpus in
such demonstrations ?If so how?
6. Shouldn’t there be law setting target per acre that they can bring to Mandis to sell on
MSP?
7.Is it possible to set MSPfor all agriculture produce? If yes can we set MSPfor Gobi and
Cabbage? Why not?
8.Is legislating against central law by state assembly good for our nation?
9.Is it the right time for such ill conceived blockage when we are facing
Pakistan,China,Terroism,Naxalism,Khalistan movement,Pandemic and economic melt
down?
10 Finally is it right for judiciary to traverse and encroach upon Executive and Legislative
duties in spite of immense written and unwritten powers given by constitution? Case here is
rather than finding infirmity in Agri Bill ,it has been put under suspension?

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