Let positions not harden

Context:  Wide differences between the government and the agitating farmers on the anticipated outcome of the new Farm laws

Farmers’ concerns about the new Farm laws:

• Involvement of Big players in trade of agricultural commodities:
  • By amending the Essential Commodities Act 1955- the removal of ceiling on stock holdings is regarded as a step to attract corporate players.
  • Withdrawal of public procurement through Food Corporation of India (FCI)- (recommended by Shanta Kumar Committee).
  • Corporates are representatives of crony capitalism, and their track record in contract farming is poor. E.g. Sugar mills did not pay the farmers for 3-5 years.
• Political interference in Dispute resolution: The Farmers (Empowerment and Protection) Agreement Act transferred the dispute resolution from the purview of courts to the SDM (sub-divisional magistrate) and the DC(district collector).
• Traders may lure farmers and cheat them: The Farmers Produce Trade and Commerce (Promotion and Facilitation) Act allows any trader with a PAN card to trade in agricultural commodities.
• Adverse impact on rural development and market infrastructure: due to discontinuations of cess or fee charged under the Agriculture Produce Market Committee (APMC) Act,

Government’s Arguments supporting the new Farm laws:

• Bigger market and profit for farmers: as they can sell anywhere in the country to get maximum prices.
• Better prices than Minimum support price (MSP): Since contract farming will provide pre-determined prices to farmers.
• Abolition of intermediaries: will enhance the profits of farmers.

Counter Arguments to the government:

• Experience of some states: Abolition of APMC markets and middlemen in Bihar did not lead to better prices for farmers
• Most farmers in India cannot access the bigger markets: Because 86% of farmers in India are small and marginal who can sell in only local markets.

Conclusion: The government should accommodate the farmers and dispel their fears over MSP and market clearance.