Sow Farm Law Benefits More Carefully

Context: Rashtriya Kisan Mahasangh (RKM) has sought state governments to oppose the three farm laws recently ratified by the President; however, the laws hold their validity in improving choices of the farmers.

Demands of the Farmers: RKM has following demands -

• Sought state governments to take up the matter with the Supreme Court, charging the Centre of having usurped the states’ rights to make laws on agricultural issues.
• Demanded a legal guarantee to Minimum Support Price (MSP) for farm produce.

Arguments in favour of the recent farm laws:

• Addresses the historical exploitation of farmers: Due to the presence of inefficient and imperfect markets; According to Reserve Bank of India study -
  • The producer share in consumer rupee terms has been abysmally low in major crops,
  • The percentage of monthly per capita consumer expenditure on food is falling, benefiting consumers while producers are under clutches of the middleman.
  • About 67% of farmers were aware of market prices before selling, and 50% of farmers said that their source is from other farmers and traders.
• Constitutional Provisions:
  • Article 249 of the Constitution is used to legislate on matters in the state list that is of ‘national interest’. There is also a parliamentary provision for this in Article 252.
  • Entry 33 of the Concurrent list enables Parliament to pass laws relating to trade, commerce, production, supply and distribution of any product.
• Expands the choices for farmers: The new laws only address how farmers can sell their produce, enabling them freedom and liberty to benefit from competition.
• The existing provisions of MSP and associated procurement continue to exist while now attracting competition.

Way Forward:

• Diversification of crops: The agitation is mostly from Punjab where paddy cultivation has overexploited groundwater, however, Karnataka farmers have benefitted from diversification.
  • Using only a third of the groundwater that farmers in Punjab do, farmers in Karnataka realise higher gross returns of Rs15 lakh per farm.
• Create congenial ambience for discussion: including exposure visits for farmers and state leaders, so as to convincing them of the benefits of the new farm laws.