Part 2 of Farm Laws: FAQs
Some misconceptions about farm laws 2020
Link to previous post on farm laws: https://iamamitmurari.medium.com/farm-laws-farmer-issues-and-resolutions-bc1aa353dfa
Q 1: Why are the framers of the Punjab and Haryana primarily protesting against the farm laws?
In Punjab and Haryana, the agitation is higher because-
- Mandis are the central place of the transaction for the farmers.
- Government procures 80- 85 % of wheat and rice at MSP(Minimum Support Price).
- Paddy and wheat are the dominant crops in Punjab and Haryana in comparison to any other state.
Q 2: If the farmers were already trading with private players. What changes do these laws offer?
Before The Trade and Commerce Act, there was no legal mechanism to enforce time-bound payments. Section 4(3) of the Trade and Commerce Act makes it compulsory for traders to pay within the maximum of three working days. In case of dispute settlement, a magistrate act has to resolve the disputes within the 30 days.
Q 3: Why did the government of Bihar’s open market policy failed in 2006?
In 2006, the government of Bihar repealed the APMC Act(Agriculture Produce Marketing Committee. Agricultural markets are regulated by the state. APMCs were set up to ensure fair trade between buyers and sellers).
The government objective was-
- To encourage private investment in agriculture, cold storage, storehouse.
- To bring more lucrative prices for the farmers.
- To free up the market for the farmers to trade.
- The SDM handed the market charge.
The government of Bihar failed because they could not create competition in the market for farmers to trade for better prices.
Q 4: How is the current situation different from that of the Bihar Government in 2006?
The current laws do not repeal the existing APMC laws (as done by Bihar) but limit the regulation of APMCs to the physical boundaries of the markets. The central act aims to provide more freedom to trade outside the limits of the state APMCs. Through the new legislation created a competition in the market for better price realisation to the farmers.
Q 5: How the Contract Farming Act, 2020 is beneficial for the Farmers?
The farmers can engage in direct marketing, eliminating intermediaries.
- Sale, lease or mortgage of farmers’ land are prohibited (Section 8).
- The recovery any dues against the farmers’ lands are protected against any orders passed under section 14 of the act (Section 15).
- Effective dispute resolution mechanism provided with speedy redressal.
- Section 13- Constitution of conciliation board appointed by SDM
- Section 14- If the dispute continues, the party can approach SDM. SDM has to resolve the dispute within the 30 Days.
Q 6: How Dispute Mechanism work under farms laws?
Dispute Resolution Mechanism under farms laws-
Section 8(Board of Conciliation and dispute to SDM and appeal) of Trade and Commerce Act, 2020. Section 13( Board of Conciliation) and Section 14( Dispute to SDMs and Appeal) of Contract Farming Act, 2020.
- In case of any dispute, a Conciliation Board appointed by the Sub- Divisional Magistrate will settle the dispute. It says the settlement by the Conciliation Board will be binding on the parties. The Board will consist of a chairperson and two to four members as the SDM may deem fit.
- If the dispute is not settled, within 30 days of being brought to the board, the SDM will hear dispute acting as the Sub-Divisional Authority for settlement of a dispute. The Sub-Divisional Authority is empowered to pass.
- An appeal can be made against SDM order to an officer, not below the rank of collector or additional collector nominated by the collector.
Q 7: How is the Contract Farming Act is more beneficial for farmers than a private player?
Under Contract Farming Act, the farmer remains the owner of his land and produce. New laws allow farmers to freely move out of the contract any time if the market prices are higher than the contracted price without paying any penalty or dues. But the trader cannot escape the contract without paying the promised price even if the market price of the crops are low.
Q 8: The new legislation is a government attempt to abolish the Mandis and leave the Farmers and Mercy of private traders?
The new laws do not attempt to abolish the APMCs but, aim to create competition and make APMCs efficient in providing better services( good prices, cold storage, storehouses etc.) to farmers. The prices in APMC markets can serve as a benchmark for the farmers for better prices in the market.
Q 9: The amendment to the Essential Commodity Act, 1955 may be misused by the big corporations?
A stock limit imposed when retail prices increase sharply(section 3(1A)
(i) a 100% increase in horticultural produce;
(ii) a 50% increase in non-perishable items.
The increase calculated, the prices prevailing in the last twelve months, or the average retail price of the past five years, whichever is lower.
References:
- https://www.prsindia.org/billtrack/essential-commodities-amendment-bill-2020
- https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1655890
- https://www.thehindubusinessline.com/opinion/can-free-trade-and-corporate-farming-improve-farmer-income/article32745489.ece
- https://www.hindustantimes.com/india-news/in-a-first-farmer-sues-traders-under-new-law-gets-dues/story-ZC12X1nMl13Ssiby04Mx2M.html
- https://www.sundayguardianlive.com/news/kerala-farmers-not-protesting-farm-laws
- https://www.indiacode.nic.in/handle/123456789/15513?view_type=browse&sam_handle=123456789/1362
- https://www.indiacode.nic.in/handle/123456789/15511?view_type=browse&sam_handle=123456789/1362
