Everything you need to know about the Farm Bill 2020
Farm Bill 2020: Why farmers were protesting?
A bill is a proposal for a new law, or a proposal to change any of the existing laws which is presented before the parliament. Once the bill is put to vote and gets a majority in both the houses, it is sent to the president for his approval. After his approval, it becomes an act or a law.
Recently, both the houses have passed three different bills for the agriculture sector, which is under the limelight for now. Let us understand what are the functions of the three bills in detail:
Farmer’s Produce Trade and Commerce (Promotion and Facilitation) 2020
The central government has informed that the bill will allow the farmers to trade intra-state and inter-state of their produce beyond the physical premises of APMC markets and other markets notified under the APMC Act.
In simple words, the farmer can sell his products to whoever he wants to without any restrictions from the government at any cost. The centre said the bill will also allow online trading of scheduled farmers produce in specified trade areas.
Under this bill, the state will also be prohibited from levying any market fees or cess on farmers, traders, electronic trading platforms for a trade of farmers’ produce conducted in an ‘outside trade area’, the Centre has noted.
Read more: List of Speakers of Lok Sabha since 1947
Farmers Agreement on Price Assurance and Farm Services Bill, 2020
This particular is planning to make framework for the contract farming by an agreement between the farmer and a buyer before the purchase of the product. According to the government, the agreement must “provide for a conciliation board as well as a conciliation process for settlement of disputes”.
The central government has also mentioned that this settlement will have a three-level dispute settlement mechanism, the conciliation board, Sub-Divisional Magistrate and Appellate Authority.
Essential Commodities Ordinance, 2020 (Amendment)
The essential commodities ordinance will regulate the supply of certain food items only under extraordinary circumstances such as war or famine.
The stocks limits will be imposed on agricultural produce only if there is a steep price rise. The bill also says that imposition of any stock limit on agricultural produce will be based on price rise.
The above three bills are passed with an expectation of revolutionizing the farmer’s life in India. It will help the farmers get in touch with big traders and exporters, bringing more profit to the agriculture.
The bill proposes to create an ecosystem for the farmers that will help them sell their products outside the Mandis. It is also assumed that it will help the small and marginal farmers majorly, who own a land of less than five hectares.
Why are farmers protesting against this bill?
The farmers have been apprehensive about this Bill. They say that they are apprehensive about getting Minimum Support Price for their produce. They are also concerned about the upper hand of the agri-businesses and big retailers in negotiations.
Farmers across several states are protesting against this bill under the fear of dismantling the minimum support price and leaving them dependent on the big corporate houses. From their point of view, it will worsen the situation if the private companies don’t pay them an honest price for their produce.
These three bills are assumed to privatize the agriculture sector but farmers need some support from the government which will be there to manage the pricing structure of the products.
Punjab and Haryana are the two major states which are protesting against the farm bill 2020. Harsimrat Kaur Badal, minister of food processing industries, resigns from the Union Cabinet to protest against these three farm bills.
The Bills seek to deregulate the sale of agricultural produce to ensure better prices for the farmers. But many farm organisations and Opposition parties say they are a step towards dismantling the minimum support price (MSP) regime.
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