The document discusses recent agriculture bills passed by the Indian government that deregulate agricultural markets. Farmers are protesting the bills due to concerns that they will no longer be guaranteed minimum support prices for their crops and will lose bargaining power against private companies. The bills aim to give farmers more freedom to sell crops outside of market yards and enter contracts with private buyers, but farmers fear this will undermine the existing government-supported market system and leave them vulnerable to corporate control of prices. Implementing the new laws will be challenging due to lack of trust from farmers who were not properly consulted.

1. CASE STUDY COMPETITION
Presented By -
Arham Bothra
MBA 3TH SEMESTER
1

2. AGRICULTURE BILL
2020
WHY FARMERS
ARE NOT HAPPY
WITH THE BILL ?

3. BACKGROUND
 Farmers in India suffered from various restrictions in marketing their produce.
 There were restrictions for farmers in selling agri-produce outside the notified APMC market yards.
 The farmers were also restricted to sell the produce only to registered licensees of the State
Governments.
 Further, barriers existed in free flow of agriculture produce between various States owing to the
prevalence of various APMC legislations enacted by the State Governments.

4. WHAT ARE THEY FOR?
 The government has said these reforms will accelerate growth in the sector through private
sector investment in building infrastructure and supply chains for farm produce in national and
global markets.
 They are intended to help small farmers who don’t have means to either bargain for their
produce to get a better price or invest in technology to improve the productivity of farms.
 The bill on Agri market seeks to allow farmers to sell their produce outside AP ..

5. WHAT ARE THE THREE BILLS?
 The Centre passed three Bills —
The Farmers’ Produce Trade and Commerce (Promotion and
Facilitation) Bill,
Farmers (Empowerment and Protection)
Agreement on Price Assurance and Farm Services Bill and
Essential Commodities (Amendment) Bill.

6. WHAT DOES THE GOVERNMENT SAY
ABOUT THE BILLS?
The government
claims the
legislations will
transform the
sector and raise
farmers’ income.
The Centre had
promised to
double farmers’
income by 2022.
It says the Bills
will make
farmers
independent of
government-
controlled
markets and
fetch them a
better price for
their produce.

7. WHAT ARE THE NEW PROVISIONS IN
THE THREE BILLS?
 The Bills propose to create a system where farmers and traders can sell and purchase products
outside ‘mandis’.
 They also encourage intra-state trade and propose to reduce transportation cost.
 The Bills formulate a framework on agreements that enables farmers to engage with agri-business
companies, exporters and retailers for services and sale of produce while giving the farmer access
to modern technology.
 They provide benefits for small and marginal farmers with less than five hectares of land. The
Bills also provide for removal of items such as cereals and pulses from the list of essential
commodities and attract FDI.

8. WHO IS PROTESTING?
 Farmers in Punjab have organised a three-day protest against the bills.
 Badal, too, tendered her resignation after the Bills were passed.
 Opposition parties, including TMC, Congress, DMK and BSP, opposed
the agriculture sector reform bills, saying they were against the interests
of small and marginal farmers.
 Congress upped its ante against the Modi government, terming the move a
conspiracy to defeat the Green Revolution.Slamming the government,
Congress le ..

9. WHAT ARE THE FARMERS’
CONCERNS?
 Farmers are apprehensive about getting Minimum
Support Price for their produce.
 Other concerns include the upper hand of agri-businesses
and big retailers in negotiations, thus putting farmers at a
disadvantage.
 The benefits for small farmers from companies are likely
to reduce the engagement of sponsors with them.
 The farmers also fear that the companies may dictate
prices of the commodities.

10.  Farmers fear they will no longer get paid at MSP, they want profitable sales in the form of
minimum support prices (MSPs) to be a legal right.
 The farmers demand a separate ordinance to provide a clear provision that if any agency buys
the crop of the farmer below the MSP, then legal action will be taken against it
 Commission agents are concerned that they will lose their commissions in mandis and
influential agents do not want to lose grip over the farmers.
 According to a Punjab Agricultural University study, there are over 12 lakh farming families
in Punjab and 28,000 registered commission agents. A large part of the state’s economy rests
on funds infused by central procurement agencies such as the Food Corporation of India
(FCI).
 Now, protesters fear the FCI will no longer be able to procure
from the state mandis, which will rob the middleman/commission
agent/arhatiya of his 2.5 per cent commission. The state itself will
lose the 6 per cent commission it used to charge on the procurement
agency.
 Farmers believe that the bills are designed to help big corporate
houses at the cost of their income.
 Farmers say that the legislation is going to lead to a replication of
old structures outside mandis and create two market spaces with
completely different sets of rules.

11. 5 THINGS YOU MUST KNOW ABOUT THE
FARM BILL 2020
The Farm Bill envisages providing farmers an alternative platform to sell. Since it will be outside the APMC Mandi, the transactions
in such “trade areas” will not be charged APMC market fee or cess.
The APMCs will not stop functioning but will now have to compete with these alternate platforms since farmers will have a
choice. It is like allowing private competition in banking, insurance or telecom.
The Farm Bill does not envisage discontinuation of the current MSP-based procurement of food grains. The modalities of
how the mandi purchase will coexist with alternate platforms remains to be seen.
This bill gives the farmer the power to sell directly to the corporate or exporter buying in bulk from the farm gate and can enter
into forward contracts too. Even the barriers on inter-state sale are removed.
In 2019-20, government agencies procured 201 lakh tons of wheat and 227 lakh tons of paddy at MSP from Punjab and Haryana
worth Rs80,300cr through commission agents (Arhatiyas). These Arhatiyas will lose their 2.5% commission and interest on loans

14. CHALLENGES
• There is a mistrust in farmers on the government for passing the bills without debate. Implementing
the laws in these circumstances will be a challenge
• As the restrictions on storing some products are removed, imports of those products may increase.
So, protecting domestic farmers from such imports will also be a challenge.

15. CONCLUSION
 The way the bills are passed created mistrust in farmers on government sidelining the positive sides of the
bills such as the opportunity to modernize the Indian agricultural sector. It is the responsibility of the
government to take the opinions of farmers and also of the states before passing such bills.
 Moreover, the main thing to do to ensure the betterment of farmers is strengthening the government market
spaces – APMCs and to eliminate the loopholes in them.