The document summarizes the Indian farmers' protest against three farm laws introduced by the government in 2020. It provides background on the laws and key issues raised by farmers, including threats to small farmers from corporatization, lack of dispute resolution mechanisms, and potential decline of APMC mandis. The document also discusses the social and economic impacts of over a year of protests, and reasons for the protest's withdrawal, including the government agreeing to repeal the laws and drop all cases against farmers.
3. The 3 Agri-Legislations
1. The Farmers’ Produce Trade and Commerce (Promotion and Facilitation)
Act, 2020: It seeks to give freedom to farmers to sell their produce outside
the notified APMC market yards (mandis). This is aimed at facilitating
prices through competitive alternative trading channels. Farmers will not
any cess or levy for sale of their produce under this Act. The government
this will open more choices for farmers, reduce marketing costs, and help
better prices. It will also help farmers of regions with surplus produce to
prices and consumers in areas with shortages at lower prices.
4. 2. The Farmers (Empowerment and Protection) Agreement of Price Assurance
and Farm Services Act, 2020: This legislation seeks to give farmers the right to
enter into a contract with agribusiness firms, processors, wholesalers, exporters,
retailers for the sale of future farming produce at a pre-agreed price.
3. The Essential Commodities (Amendment) Act, 2020: The law seeks to remove
commodities like cereals, pulses, oilseeds, onion, and potatoes from the list of
commodities and will do away with the imposition of stock holding limits on
except under ‘extraordinary circumstances’ like war, famine, extraordinary price
natural calamity. The Union government said it is aimed at attracting private
into the farm sector as well as bringing price stability.
5. Farm trade process in India
Time for the patience and hard work to pay off
The ongoing farm trade in India
The disparity in many states
The new concept of farm trade in farm laws
The Bihar example
The US example
Closing of many mandis in some states due to new laws
The voids to be filled
6. Why were
farmers
protesting?
• Corporatization of agriculture is against the
farmers’ welfare:
• The global experience across agricultural markets
demonstrates that corporatization of agriculture
without a concomitant security net in the form of an
assured payment guarantee to the farmers results
in the exploitation of farmers at the hands of big
business.
• Threat for small and marginal farmers:
• This poses a significant challenge to Small and
Marginal Farmers which constitute 86% of our
agricultural class. The present laws alter the
bargaining landscape in favor of the corporate
players.
7. Why were
farmers
protesting?
Dispute resolution mechanism:
The new farm laws expressly exclude the jurisdiction of the civil court, leaving the farmers remediless and with no
independent medium of dispute redressal mechanism.
The farmers shall be given the right to take their stand to the court.
Gradual decline of APMC mandis:
The farm laws open the field to an alternate set of markets/private yards, where the buyer will have no statutory
obligation to pay the MSP.
Since the markets/private yards will not be charged any market fee/levy and the agricultural sector will see the
gradual shifting of trade from the APMC mandis to these private yards.
Agriculture is a state subject:
The Union Government has by-passed the federal structure by legislating on subjects that exclusively fall within
the domain of the state government under the state list of the Seventh Schedule of the Constitution.
8. Pros Of Farm Laws
Farmers wont be exploited anymore by middlemen.
They can directly sell their produce to the buyer negotiating at the
price they want to sell.
Every trade will be done digitally thus educating the farmers about
using technology.
It will not only help farmers to increase their sale but also help
customers to buy fresh produce which will boost the health of people.
9. Drawbacks (as per the farmers):-
The process of passing the bills was not democratic.
APMCs are very helpful for small farmers
There is no guarantee that the farmers’ income will be increased
transporting the produce requires more expenditure than selling
them at the nearest APMC.
Contract farming may turn farmers into slaves.
may lead to more imports at cheaper prices affecting the
domestic farmers.
the market will go into the hands of big businesses.
11. Social Impact
The strength of Indian democracy , the protests finally ended in the favor of
farmers . This may boost the sense of democracy among people.
Some events led to poor image of farmers in the eyes of people creating
negative impact .
All the protests led to loss of about 600 farmers and many police and army
men which has affected the lives of their families
12. Economic Impact
Massive trade loss -According to General Secretary of
(CAIT) Parveen Khandelwal, the protests have
incurred a cost of roughly Rs 60,000 crores.
The agitations also severely disrupted the
supply chain. two-thirds of consignments in
transit took 50% extra time to reach their
destinations in Punjab, Haryana, Rajasthan and
Delhi-NCR due to the protests. logistics costs
hiked by up to 8-10%
Affected economic recovery.
13. Reasons for Withdrawal
The Three farm acts -The Farmers Produce Trade and
Commerce (Promotion and Facilitation) Act, 2020; The
Farmers (Empowerment and Protection) Agreement on Price
Assurance and Farm Services Act, 2020; and The Essential
Commodities (Amendment) Act, 2020 The union government,
however, maintains that the laws will make it effortless for
farmers to sell their produce directly to big buyers, and stated
that the protests are based on misinformation.
Expands the scope of trade areas to "any place of production,
collection, and aggregation.
Allows electronic trading and e-commerce.
The three acts provide for the creation of an ecosystem for
farmers and traders, for a national framework on farming
agreements.
Provides for a three-level dispute settlement mechanism: the
conciliation board sub-divisional magistrate and Appellate
Authority.'
To regulate certain food items in the course of extraordinary
situations like war or famine.
14. Conclusion
Farmers who have been protesting for over 15 months against the (now
scrapped) farm laws and other issues including a legal guarantee of Minimum
Support Price (MSP) have announced that they will end their protest on
Saturday, December 11, and return to their homes.
The Centre had sent a written draft proposal to the SKM's five-member
committee following a November 21 letter from the SKM to PM Modi listing six
demands. Farmers had pointed out that repeal of the contentious laws was only
one of the several concerns they had raised, and refused to leave after PM Modi
announced the cancelling of the laws and requested them to go back.
The Centre has also agreed to drop all police cases against farmers - this
includes stubble burning complaints and those filed by Haryana and Uttar
Pradesh in connection with violent clashes with security forces over the past
several months
15. It has assured the farmers that all cases against them relating to the protests
will be immediately withdrawn and has appealed to all states to do the
same. Haryana and Uttar Pradesh have given in-principle agreement to
compensation for farmers who lost their lives, and Punjab has already made an
announcement, the Centre's letter says.
The Bill on electricity will also be introduced only after consulting all
stakeholders, including SKM, regarding the sections that affect farmers. The
protesting farmers have been suspicious of the government's intent and had
asserted that they would leave after all cases registered against them during
the protests, and also those relating to stubble burning were cancelled.
Referring to the 2016 Jat agitation for reservation, they said that the
government has failed to withdraw legal cases even after assurances.
After nearly 14 months, the farmers’ movement took a turn in their favor.
Without a question, it is the farmers’ relentless spirit that made it possible, and
more so, their strategic planning and timing did the job. No matter how
powerful the opposition is, the side which has the most unity will win the battle
and this is what happened.
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