The Futuristic Life of Farm

The central Union Minister Harsimrat Kaur Badal, an MP of the Shiromani Akali Dal(SAD), resigned from the Narendra Modi Cabinet, in protest against the bills passed in both the Parliament, with major opposition from opposite parties.

This bill, so called the farm bill also evoked a significant protest in various states of India and the Bills. 

At this mean time, we have to understand what is the bill is about. Why does it's such a major opposition from some people? Let's examine one by one.

Farm bill 2020

A decision of reforming three farm bills has been sanctioned by the President for its execution in our day-to-day life. 

The reformation of farm bills is as follows.

Farmers Produce Trade and Commerce (promotion and facilitation) Bill 2020 

It states that, intra-state and inter-state trade of farmers' produce beyond the physical premises of Agricultural Produce Market Committee(APMC) are allowed and State governments won't charge any market fee, cess or levy outside APMC area. 

The Bill seeks to eliminate restrictions in many state laws to mandate agricultural trade only through APMCs with the aim of supporting farmers from exploitation and to form sure fair prices for the produces. 

Benefits 

The law provides farmers, an alternate platform to sell quite factory premise, processing plant, produce collection centre, cold storage, warehouse, silo or even the farmgate. 

Drawbacks 

• The dilution of APMC systems and thus the deregulation of food items may cause global corporate entities exploiting small and marginal farmer. 
• It may be an alternate platform but the vast spread and superior power of the private sector, it leads to eradication of APMC markets in society. 
• One nation – one market may not be much useful to small farmers, because transporting the produce requires more expenditure than selling them at the nearest APMC. 

The Farmers (Empowerment and Protection) Agreement on Price Assurances

It seeks to provide for a "national framework on farming agreements that empowers farmers to interact with agri-business firms, processors, wholesalers, exporters or large retailers for farm services and sale of future farming produce at a mutually guaranteed 'remunerative price'. 

Farming agreement: 

A farming agreement before the assembly or rearing of any farm produce, aimed toward facilitating farmers in selling farm produces to sponsors. 

The agreement contains mutually agreed terms and conditions for supply, quality, standards and price of farming produce also as terms related to supply of farm services. 

These terms and conditions could even be subjected to monitoring and certification during the tactic of cultivation or rearing, or at time of delivery. 

Duration of agreement: 

The minimum period of an agreement is getting to be one crop season, or one production cycle of livestock and thus the utmost period are going to be five years.

But the period of agreement is to be mutually decided by the farmer and thus the sponsor.

Exemptions from present laws:

Farming produce under a farming agreement are getting to be exempted from all state Acts aimed toward regulating sale and buy of farming produce. 

These produce are getting to be exempted from provisions of the Essential Commodities Act, 1955 and will not have any stock limit obligations.

Pricing of farming produce:

The payment for the farming produce is to be mentioned within the agreement. 

In case of costs subjected to variations, the agreement must include: 

(i) a guaranteed price to be purchased. 

(ii) a transparent reference for any additional amount over and above the guaranteed price, including bonus or premium. 

Delivery and payment: 

The Ordinance provides that the sponsor is getting to be responsible for all preparations for the timely acceptance of deliveries and will take delivery within the agreed time. 

In case of seed production, the sponsor pays a minimum of two-third of the guaranteed amount at the time of delivery. 

The remaining amount is frequently paid after due certification within 30 days from the date of delivery. 

For all other cases, the absolute agreed amount must be paid at the time of delivery and a receipt slip must be issued with the tiny print of sales proceeds. 

The government will prescribe the payment modes. 

Dispute Settlement:

The Ordinance requires a farming agreement to provide for a conciliation board also as a conciliation process for settlement of disputes. The Board should have an honest and balanced representation of parties to the agreement.

At first, all disputes must be referred to the board for resolution. If the dispute remains unresolved by the Board after thirty days, parties may approach the Sub-divisional Magistrate for resolution. 

Parties will have a right to appeal to an Appellate Authority (presided by the collector or additional collector) against decisions of the Magistrate.

Both Magistrate and Appellate Authority are getting to be required to dispose a dispute within thirty days from the receipt of application. 

The Magistrate or the Appellate Authority may impose certain penalties on the party contravening the agreement.

However, no action is often taken against the agricultural land of the farmer for recovery of any dues.

Benefits 

• It will empower farmers to interact with processors, wholesalers, aggregators, wholesalers, large retailers, exporters. 
• It will equally create A level playing field without fear of exploitation.
• It'll also reduce marketing costs and double the farmers income. 
• The legislation also will act as a catalyst to attract private-sector investment for building supply chains.
• As a result, Farmers will gain access to technology and advice for top value agriculture. 
• Farmers can easily engage in marketing. 

Drawbacks 

• Lack of assurance about Minimum Support Price(MSP) within the contract-farming bills as there is no clause within the Bills that stipulates that the "price shall not be but the MSP."Contract farming may turn farmers into slaves.
• Contract farming may turn farmers into slaves.

Essential Commodities(Amendment) Bill 2020

The objective of restricting the conditions on which the govt. can impose stock limit on agricultural produces i.e. the supply of certain foodstuffs — including cereals, pulses, oilseeds, edible oils, potato — are often regulated only under extraordinary circumstances, which include a unprecedented price rise, war, famine and natural calamity of a severe nature. 

It equally takes this stuff out from the purview of Section 3(1) , which provides powers to central government to “control production, supply, distribution, etc., of essential commodities.”

The Bill also illustrate that the imposition of any stock limit on agricultural produce must be supported during price rise alone. 

Otherwise, the government has the power to manage the assembly, supply, distribution etc. of such food items even "for securing their equitable distribution and availability at fair prices."

Benefits 

• It eliminates fears of excessive regulatory interference from the minds of private players. 
• Private players will put in additional money in bettering cold storage, supply chains, etc. and thereby it brings down the costs of the produce.
• It'll also help in creating competitive market environment and cut wastage of farm produce. 

Drawbacks 

• The bill also remains ambiguous on who would define "exceptional circumstances''.
• Big companies will have the freedom to stock commodities and will, in turn, dictate terms to farmers.
• Removing the restrictions on the storage of some foodgrains may lead to more imports at cheaper prices affecting the domestic farmers. And big businesses may store the foodgrains to increase the prices artificially.

Farmers are the backbone of India, an move for or against the then, would have major impact on indian economy. 

We should stand with farmers in any circumstances and enlight our future.