Farm laws: Farmer issues and resolutions
This blog-post is referring to current farmer agitation against the Central Government over newly passed Farms Laws. The sole aim and purpose of the article are to clear doubt and give some clarity over the farmer protest issue.
Update: Based on suggestion and feedback, wrote part-2 for FAQs on farm laws.
Link to next post : https://iamamitmurari.medium.com/part-2-of-farm-laws-faqs-a5623efd99dc
It permits Intra and Inter-state trade of farmers’ produce beyond the physical premises of Agricultural Produce Market Committee (APMC)(Mandi) markets and other markets notified under the state APMC Acts.
It creates a national framework for contract farming through an agreement between a farmer and a buyer before the production or rearing of any farm produces.
The Essential commodity Act 1955(Amendment 2020) { hereinafter ECA,1955}
An act to provide, in the interest of the general public, for the control of the production, supply and distribution of, and trade and commerce, in certain commodities.
Other related issues
Electricity Act 2003(Amendment2020) (hereinafter EA,2003)
An Act to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity, take measures conducive for development of the electricity sector, promote competition, protect Consumers interest, rationalize the electricity tariffs, establishment of Regulatory Authority and Tribunal, supply of electricity to all users.
An Ordinance provides for the constitution of a Commission for better coordination, research, identification, and resolution of problems related to air quality in the national capital region (NCR) and adjoining areas.
Farmer Issues and Government Answer
Issue 1: Farmers demand the repeal of the newly passed laws, stating them as anti-Farm law or black laws.
Government: Centre Government is ready to discuss laws- provision by provision.
Proposal/Resolution: Farmer rejected this proposal
Issue 2: The Farmer says that current laws are invalid as Agriculture is State Subject- (Schedule 7, List II and entry no 14 of the State List).
Government: Centre Government said the present laws don’t touch upon the state subjects, act promote Trade (Scheduled 7, List III and no. Entry 33 of the Concurrent List) provides Centre and the states powers to control production, supply and distribution of products of any industry(including agriculture), the Government said they acted as per the provision of the Constitution and further, the Supreme Court rulings on this subject, justifies the action of the Government.
Issue 3: No Taxes outside the Mandi(section 6 of Trade and commerce Act,2020) will hamper the APMCs i.e. Mandi
Government: Trades in Mandi forward taxes back to farmers, so the government accepted the contention and proposed alternatives.
Proposal: State government will regulate registration, taxation of private(NGOs, corporates) players outside of APMCs according to the concerned State’s APMC act.
Issue 4: Trade and Commerce,2020, allows any PAN cardholder(section 5) to enter into the market as traders. The farmers think that these traders might exploit the market.
Government: The basic motive was to ease the trade & tackle licensing Raj. {S.12 of Trade and Commerce Act, 2020}i.e. allows Central Government to issue order and direction to the State Government to take appropriate action.
Proposal- The State Government will be empowered for the registration of private traders, NGOs or private Mandi.
Issue 5: Why the dispute is referred to the SDM and it restricts them from approaching courts
Government: SDM officer is the closest magisterial level officer to farmers in villages. 86% of farmers in India are small and marginal. The government can direct the SDM (section 14(1)) for speedy disposal of disputes(30 days) Further, the government clarified that the courts are already overburdened with cases and the court cannot be compelled to decide the case within the specified time limit. Taking matters to the court can be an expensive affair.
Issue 6: If SDM doesn’t act reasonably and is under the trader pressure (Contract Farming Act, 2020)
Government: If the SDM decision is not fair. The farmers have the right to move to the court or the appellate authority {section 14(5)}.
Issue 7: Contract under {Contract Farming Act, 2020} should be registered i.e. written and regulated.
Government- Government also accepted the merits of this issue and proposed.
Proposal- The State Government will regulate the contract. Till the time concerned State Government does not make any such arrangements, such written agreement copy shall be submitted to the SDM within 30 days of signing the contract by both the parties. So, it comes under the Jurisdictional power of the Centre Government.
Issue 8: Private companies will take away Framer’s land under Contract Farming Act,2020
Government- The law(section 8) clearly states that under no circumstances or whatsoever be the situation the farmer doesn’t lose its ownership. The ownership remains with the farmer.
Issue 9: The farmer thinks that the new legislation will take way the MSP from the farmers.
Government: No Farm laws stop procurement of crops at MSP, the MSP will continue and procurement of Rabi and Kharif crops will continue at MSP at State APMCs.
Issue 10: The farmer raised the issue that the Contract Farming Act,2020 will force farmers to sell their produce outside the market i.e. to the private Mandi, NGOs and traders.
Government- Farm law doesn’t bind the farmers to sell their produce outside the market, there is no compulsion, rather the act provides an alternative for higher prices.
Issue 11: The new amendment in Electricity Act,2003 proposes for the provision of DBT(direct benefit transfer) into the consumers’ accounts. The farmer has to pay for the electricity subsidy and will be reimbursed. The farmers were sceptical about accepting this model due to previous bad experiences (LBG subsidies) regarding timely subsidy repayment.
Government- The government agreed to scrape up the newly inserted provision and assured that no further changes to the Electricity Act, 2003.
Issue 12: NCR Air Quality Ordinance, 2020 impose a high penalty on stubble burning (through section 14(1) 5 years jail and fine up to 1 crore). The farmer said stubble burning is not solely responsible for the pollution in the NCR.
Government: The government understands the gravity of the issue and is ready to ensure that there will be no such penalty on the farmers.
Issue 13: Why the stock limit of certain items removed from The Essential Commodity Act,1955
Government: Government did this move to attract private investment. The private sector has so far hesitated to invest in cold chains and storage because of the stock limit under. The Essential Commodity Act,1955( section 3(1)(1A)) and sudden high stock limit will attract more and more traders to procure more quantities of foodstuff from the farmers. Hence, benefitting the farmers.
Conclusion: Every Legislation has some flaws in it but the act should not be rejected upfront, the merits of the act should also be considered. Government through every act tries to create a balance between the different section of the society. Government through newly passed laws aims to empower the Farmers and double the farmer’s income.
Want to get more opinions from people, to get more understand and point of views of different people. Your suggestions are welcomed.
