Overriding the Constitution

Business Standard     22nd October 2020     Save    

Context:  Punjab Assembly had passed three farm bills to bypass the central farm laws.

Issues with the bills passed by Punjab’s Assembly

  • May fail the test of constitutionality : 
  • Parliament has overriding powers on Concurrent list subjects.
  • Though agriculture is on the State List of the Constitution, the production, control, supply, and distribution of foodstuff are on the Concurrent List
  • May fail to receive presidential assent to the bill: because these bills sought to override the Central laws in three key ways - 
  • The imposition of three-year jail term for anyone forcing farmers to sell wheat and paddy below the minimum support price (MSP).
  • Decree a state levy or tax on out-of-mandi transactions in the free trade area defined by the Central law
  • Extended remedies available to farmers to the civil courts rather than limiting their access to the Sub-Divisional Magistrate. (SDM)
  • Benefits large landed farmers instead of small farmers:  86.2% of the state’s farmers are small and marginal and rarely access the mandi system since they hardly produce surpluses
  • Focused on maximizing revenues rather than farmers welfare: Proposition to impose a levy on non-mandi transactions, instead of widening the ambit of market options for farmers, will constrain their freedom of choice.

Conclusion: These new state farm Bills appear to protect the age-old procurement mechanism, which primarily benefits large producers and distributors and protect the state’s revenues.