Farm Acts, 2020

Farm Acts, 2020: The Indian Parliament proposed three demonstrations in September 2020 that were referred to as the Indian Agribusiness Demonstrations of 2020, or the Homestead Bills. On September 27, 2020, Indian President Slam Nath Kovind conceded his endorsement. It would have permitted ranchers to sell straightforwardly to food processors by liberating an arrangement of government-run discount markets.

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India produces enough of every kind of food to feed itself. Despite extensive national charity programs in the field, malnutrition and hunger remain widespread problems in the nation. Other significant issues that have gone unsolved for decades include farmer suicides and farmer incomes. In 2017, the central government unveiled model farming acts, outlining various reforms. Despite the recommendations within these model acts, several states had not implemented the suggested reforms.

In a nationwide chorus, farmers’ concerns echo from Punjab to Haryana, with Kerala adding its legislative voice against the farm reforms. The Supreme Court, donning the role of mediator, has pressed pause on the Farm Acts 2020, summoning a four-member committee to compose recommendations within two months. It’s a temporary intermission, aiming for a harmonious resolution that aligns with the aspirations of the agricultural community.

Therefore, three laws were drafted to alter the nation’s practices for marketing, storing, and selling agricultural products. Their primary focus is on the forward connections to the agriculture industry.

The 3 old Farm Laws are as follows:

The Farmers’ Produce Trade and Commerce

The provision entails the establishment of a mechanism enabling farmers to vend their agricultural products beyond the confines of Agriculture Produce Market Committees (APMCs). Under this framework, any licensed trader possesses the authority to purchase the produce directly from farmers at prices mutually agreed upon. Notably, this trade of agricultural commodities operates without the imposition of mandi tax by state governments.

The Farmers Agreement of Price Assurance and Farm Services Act

1. The Agreement of Price Assurance and Farm Services Act opens the gateway for farmers to engage in contract farming and navigate the marketing of their agricultural yields with greater autonomy. Within the contours of this legislation, farmers have the liberty to enter into agreements with interested parties, outlining terms related to pricing and farm services.
2. This empowers farmers to make informed decisions about their produce, fostering a more dynamic and responsive agricultural market. The act essentially unshackles farmers, providing them the freedom to chart their own course in marketing their agricultural products.

The Essential Commodities Act

Act establishes a system that enables farmers to sell their agricultural products outside of Agriculture Produce Market Committees (APMCs). The farmers’ produce can be purchased by any license-holding trader at prices that are mutually agreed upon. The state governments’ mandi tax will not apply to this exchange of agricultural products.

The reaction to the laws are as follows:

Government Response

1. The government has asserted that the introduction of these new laws aims to fortify the foundational infrastructure of the agricultural sector by attracting increased private investments. Recognizing the perennial financial constraints faced by successive administrations in investing adequately in rural and farm infrastructure, the argument is grounded in the belief that leveraging the exponential growth of food markets in India will make agriculture more lucrative for farmers
2. In essence, the collaboration with private players is seen as a catalyst for transforming the agricultural landscape into a more economically sustainable and prosperous domain for those who till the soil.

Response from opposition parties

1. In help , The actions were supported by the Maharashtra ranchers association, Shetkari Sanghatana, which upheld for market influences to decide horticultural ware evaluating. It battled that as opposed to giving ranchers greater power, the base help costs had really made them more vulnerable.In opposition,on the last day of 2020, the Kerala regulative gathering joined the positions of states communicating dispute against the homestead changes, passing a goal encouraging their withdrawal.
2. This is undeniable the fifth state to take such a position, following the lead of Punjab, Chhattisgarh, Rajasthan, and Delhi. In this way, on January 28, 2021, the West Bengal gathering turned into the 6th state to advocate for the reevaluation of these horticultural reforms.The essential justification for resistance rotate around vulnerabilities encompassing the execution of the changes, the petulant idea of least help costs (MSPs), and worries about the ranchers’ lessened dealing power. These worries all in all add to the obstruction against the bills.

Protests

1. A number of farming organizations declared a heightened protest against the acts and demanded a “Bharat bandh” for September 25, 2020. Up to ten central trade unions and eighteen political parties endorsed this. In some Indian states, protests have taken place ever since these rules were proposed.
2. These demonstrations are the first significant farmer protests since the 2014 election of the Narendra Modi administration.Protesters at the border near Ambala were attacked by police with tear gas shells and water cannons; they also threw stones and police barricades into the river.[76] The cops responded by deploying water cannons. According to media reports, the police built trenches on several routes leading into Delhi; the Haryana government dug the National highway that links Delhi with Haryana.
3. Bulldozers and trucks loaded with sand were also positioned along the march’s route to Delhi. Farmers had earlier blocked the Chief Minister of Haryana’s residence.

Factual Legitimacy Inquiry

1. “Markets and fairs” is listed in entry 28 of the State List, and “agriculture” is listed in entry 14 according to Article 246 of the Constitution. However, the Center is authorized to control “inter-State trade and commerce” by entry 42 of the Union List. Trade and commerce “within the State” are covered by article 26 of the State List; but, they are also governed by entry 33 of the Concurrent List, which gives the Center the authority to establish laws that supersede those passed by the states.
2. Trade and commerce in “foodstuffs, including edible oilseeds and oils, fodder, cotton, and jute” are covered by Entry 33 of the Concurrent List. To put it another way, the Center has the authority to enact any legislation that supersedes current state APMC Acts and eliminates all barriers to farm produce commerce both within and between states.
3. That is exactly what the FPTC Act does.Some experts do, however, distinguish between “trade” and “marketing” in agriculture. Agriculture as a whole would include all of a farmer’s activities, from clearing and cultivating fields to selling their own produce. Just as much “agriculture” occurs in the farmer’s primary sale at a mandi as it does in the field. Only when the farmer has “marketed” the produce does “trade” start.
4. According to this interpretation, the Center has the right to draft legislation that prohibits stockholding and export limits and encourages the free flow of agricultural products both within and between states. However, this is only possible following the farmer’s sale. The states are responsible for “marketing” agricultural produce, which includes regulating its initial sale not the centre.The Judiciary will have to take a call on the constitutional validity of the farm acts, 2020.

Misconceptions regarding MSP

1. Contrary to the widely held belief that the current Minimum Support Price (MSP) system is being changed, an examination of the most recent laws reveals that these agricultural measures actually offered farmers more options.The government has stated unequivocally that MSP procurement will proceed, and the mandis will continue to operate.
2. In addition to the mandis, farmers will be able to sell their produce somewhere else under the new arrangement.It is noteworthy that, based on data from the National Sample Survey, the 2015 Shanta Kumar Committee report found that a mere 6% of farmers actually sell their products at MSP pricing. The MSP regime is not immediately impacted by any of the laws

Misconceptions regarding contract farming

There are worries that contract farming would result in small and marginal farmers losing their land to large corporations. To safeguard farmer interests, land ownership is sufficiently protected.It is expressly forbidden under the statute for any sponsor company to purchase, lease, or mortgage farmer land.It is important to remember that contract farming is entirely voluntary, and farmers cannot be coerced into signing a contract.

Inevitability of agricultural reforms

Forty percent of Indians are farmers, and an even larger proportion of the impoverished are among them. The data that is currently available indicates that farmers face extreme stress.The empowerment of our rural population and farmers is essential to the economic and social development of India.

Reforms in the agriculture sector are therefore desperately needed in order to replace the outmoded agricultural policies.The farm bills in India are consistent with global practice, as several developing nations have modified their agricultural policies since the 1990s to promote private sector participation, which would significantly boost the industry.The recent farm legislation have also received support from the International Monetary Fund, which sees them as a significant positive step.

The farm acts are a step in the right direction and there is the need to ensure the effective implementation of the same.

The following are the safety measures to be followed:

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020

1. Developing the market for cultivating produce is a positive step, and it’s basic to enhance this drive with measures that protect existing prosperity nets like MSP and public obtainment.
2. There is a requirement for proactive endeavors by the state to engage ranchers in exploring these negotiations.In expansion to showcase opportunity, the public authority ought to zero in on laying out vigorous framework that works with consistent and unlimited exchange of horticultural wares.
3. This comprehensive methodology guarantees that ranchers in addition to the fact that decisions yet in addition have the information and assets to settle on informed choices, eventually encouraging a stronger and engaged rural area.

Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020

1. It’s basic that the procedure for cost assurance, enveloping the surefire cost and any extra sums, is unequivocally illustrated as annexures in the arrangement. The public authority’s liability lies in consolidating powerful arrangements to protect against costs falling underneath the Base Help Value (MSP).
2. In examples where costs are dependent upon changes, the legally binding understanding ought to consolidate a got cost for the produce. This ought to be joined by a straightforward reference, be it winning business sector rates or some other relevant benchmark, for computing extra sums, for example, rewards or expenses over the surefire price.To guarantee a fair and productive framework, there ought to be a pledge to time-bound goal of complaints.
3. This maintains the honesty of the arrangements as well as gives ranchers a responsive and responsible system for tending to worries.

The demonstration tries to break the imposing business model of government-managed mandis and permit ranchers to sell straightforwardly to private purchasers by avoiding the APMCs. The new regulations give full independence to ranchers to sell their produce.

What is the new farm Act 2020?

The opportunity to buy and sell horticultural produce is conceded by the FPTC Act, which was passed by the public government. This opportunity expands both inside and beyond APMC mandis. The new regulation allows the foundation of an electronic stage for the deal and additionally acquisition of homestead produce with an end goal to support online business in the horticultural business.

What are 3 farm laws?

These laws are the Essential Commodities (Amendment) Act (ECA), 2020, the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020, and the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020.

Why farm laws were repealed?

 it was hazy from the guidelines on the off chance that the public authority would continue to ensure costs for a few essential harvests. Ranchers were worried that the regulation implied the public authority was leaving the framework where by far most of ranchers simply offered to business sectors supported by the public authority.

What is farm law amendment?

The Karnataka Horticultural Produce Showcasing (Guideline and Improvement) (Correction) Act, 2023, presented last week by Farming Promoting Clergyman Shivanand Patil, tries to return the state to a system where the offer of all rural produce should happen through the business sectors of the APMC.

What is the full form of MSP?

Minimum support price (MSP) is the base cost set by the public authority for specific rural items, at which the items would straightforwardly be purchased from the ranchers on the off chance that the open market costs are not exactly the expense caused

Who declares the MSP in India?

The base help costs are declared by the Public authority of India toward the start of the planting season for specific yields based on the suggestions of the Commission at Farming Expenses and Costs (CACP).

What is the full form of CCI in agricuture ?

Crop Commercialisation Index (CCI) for major crop activities.