It might seem baffling that the farmers are protesting against laws which offer an array of benefits, but the reasons are not far to seek, writes BIMAN MUKHERJI.
An eruption of farmers’ fury over the introduction of three new laws have held the Indian capital Delhi in a gridlock for about a month as talks with the government have failed to achieve a resolution.
The dispute has now landed before the Supreme Court, which has suggested that the central government could put the laws on hold while an independent panel looks into the issue — a proposal that appears to have not appealed to the policymakers.
It appears that the fear is that the legislations — which have been hailed by the ruling BJP as well as several experts as pathbreaking — could be put on hold indefinitely and setback the reform process that were meant to free farmers from the grip of middlemen.
For generations, the Indian farmer has suffered as such middlemen have cornered a majority of their profits. Growers had to sell their produce to such licensed traders at the nearest notified wholesale markets of Agriculture Produce Market Committee APMC, run essentially by traders via political nominations.
The aim of the new laws, namely Farmers Priduce Trade and Commerce (Promotion and Facilitation) as well as the Farmers Empowernent and Protection Agreement on Price Assurance and Farm Services 2020, was to usher in private competition to APMCs.
Also read: AGRO REFORMS IN INDIA: HOW CAN THEY BE GAME CHANGER FOR OUR FARMERS
Farmers would now have the right to sell their produce anywhere in the country, bypassing middlemen as well as enter into contracts with private companies that enabled them to sell their crops even at the time of sowing.
Additionally, stock limits imposed on sale of such farm produce to prevent any hoarding of essential commodities were removed barring any exceptional price spikes. The idea was to help farmers get the best price of their produce rather than sell everything soon after harvest that can push prices downwards.
It might seem baffling that the farmers are protesting against laws which offer an array of benefits, but the reasons are not far to seek.
First, the majority of protests have been spearheaded by northern Indian farmers who fear that the new laws will gradually end state-fixed Minimum Support Prices (MSP) that gives them assured returns.
Farmers gathered in the Indian capital city to protest against the Farm Acts, 2020 (Picture Courtesy: Getty Images)
Even though these apply to 22 crops, but the government procurement system has largely worked for two grains — rice and wheat — stemming from decades-old insecurity to prevent any shortage of staples during a national emergency.
This system has been the main reason why farmers in Punjab and Haryana have gravitated to wheat and rice production despite plunging water tables. However, their immediate worry is that large private companies will gradually take over procurement and push prices to rock bottom.
That is why the farmers are seeking a legal guarantee that MSP won’t be repealed. In short, there is a massive trust deficit that the new laws will benefit them. They are also not convinced that giving them freedom to sell anywhere would help as a majority of farmers are small and marginal and lack both storage capacity and means of transport.
Moreover, they fear removing stock limits would only push their produce in the hands of private companies who will then manipulate prices.
While few economists doubt the positive intent behind the new laws, greater outreach is surely needed to break the traditional mindset. Unless realization dawns that a new generation of farm entrepreneurs are the need of the hour who need to tap global markets with things like organic produce and exotic fruits, Indian agriculture will always remain in a logjam.
Farmer groups are now speaking in disparate voices since the agitation started. While a section is intent on repeal of the new laws, another says that all they want is better technology and modern inputs that enable them to compete on an even keel with global rivals.
Also read: AGRI BILL 2020: LIBERALISATION IN THE INDIAN FARM SECTOR OR THE POOR PEASANTS’ WOES?
There is no doubt that the latter group have raised valid concerns. Despite experts pleading time and again on the need for a robust storage and cold chain, little headway has been made.
They have correctly argued that private companies will likely subject their produce to the most stringent checks. Even global ambitions are likely to remain only on paper unless efforts are made to rid the system of poor-quality inputs such as seeds and pesticides.
It is not surprising that India’s farm productivity remains among the world’s lowest, so these issues can’t be ignored in the interest of genuine reforms. A sincere effort to address them would surely convince even the hardline groups who want reforms to be scrapped.
If the government buckles and repeals the laws, it will only hurt farmers in the long run. That said all stakeholders must unite in a spirit of genuine cooperation to realize the ultimate goal of a prosperous farmer.
BIMAN MUKHERJI is a consulting editor and writer with extensive experience in international and Indian media. He writes mainly on business on a variety of topics including resources, aviation and the corporate world. can be reached at mukherjibiman@gmail.com
Opinions expressed in this article are of the author’s and do not represent the policy of The Edition. The writers are solely responsible for any claim arising out of the contents of their articles.
Tags: #FarmBill2020 #APMC #FarmAct2020 #AgricultureInfrastructureFund #MSP #Farmer #NationalAgricultureMarketing #Mandis #FarmersProduceTradeandCommerce(PromotionandFacilitation)Act #FarmersEmpowermentandProtectionAgreementonPriceAssuranceandFirmServicesAct #ColdStorage #Pesticide
The Edition 