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5 pros & cons of Farmer Bill 2020

FARMER BILL 2020

The 2020 Indian farmers' protest is an ongoing protest against the three farm acts which were passed by parliament of india in September 2020. The acts have been described as "anti-farmer laws" by many farmer unions, and farmer unions and politicians from the opposition also say it would leave farmers at the "mercy of corporates".



                                                                                                                                                                           Cons(reason for farmers protest):
  1. The Farm Bills destroys the monopoly of APMC (agricultural produce market committee) mandis, thereby allowing sale and purchase of crops outside these state government-regulated market yards or mandis.
  2. Famer bill can lead to the monopoly of private companies empowering them to control the market prices by controlling inflation .
  3. The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill does not give any statutory backing to MSP, there is not even a mention of either “MSP” or “Procurement” in the said bill
  4. The only crop where MSP(minimum support price) payment has some statutory implementation is sugarcane for which FRP is determined. This is due to its pricing being governed by the Sugarcane (Control) Order, 1966 issued under the Essential Commodities Act. 
  5. The new bills are placing farmers and traders at the mercy of civil servants(SDM,DM), rather than of the courts.

Pros:
  1. The farmers had moved towards a freer and more flexible system.
  2. Selling produces outside the physical territory of the mandis will be an additional marketing channel for the farmers.
  3. The new bill has not brought any major drastic changes, only a parallel system working with the existing system. Prior to these bills, farmers can sell their produce to the whole world, but via the e- NAM system.
  4. The amendment to the Essential Commodities Act which is one of the three bills under protest removes the fear of the farmers that traders who buy from farmers would be punished for holding stocks that are deemed excess and inflicting losses for the farmers.
  5. In the existing APMC system, it is mandatory for farmers to go through a trader (via Mandis) so as to sell their produce to consumers and companies and they receive Minimum Selling Prices for their produce. It was this very system that has influenced the rise to a cartel led by traders and uncompetitive markets due to which the farmers are paid MSP (a very low price) for their produces.

If the protesting farmer union leaders were to sit down at the negotiating table, the government can possibly get them to agree to drop the demand on repealing all the three laws. Their problem is essentially about the FPTC Act and its provisions that they see as weakening the APMC mandis. There is also disquiet on the dispute resolution mechanism for transactions outside the mandis. The Act proposes these to be referred to offices of the sub-divisional magistrate and district collector. “They aren’t independent courts and cannot deliver us justice, leave alone guarantee timely payment,” alleged the same farmer.

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