From Farm Laws to Farmer Protest
First bill relaxes restrictions governing purchases and sale of farm produce, the second relaxes restrictions on stocking under the Essential Commodities Act (ECA), 1955, and third introduces a dedicated legislation to enable contract farming based on
written agreements.
Status of Agriculture in India
Agriculture in India is without a doubt, one of the most pertinent sectors of the Indian economy. Contribution of Agriculture and its allied activities in the Gross Domestic Product (GDP) has reduced a lot from more than 50% in 1950 to around 16% in 2019, but still it constitutes around 60% of the labour force, which is a skewed figure (see Fig:1).
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| Fig:1 India: Distribution of Gross Domestic Product (GDP) across economic sectors from 2009 to 2019. Source: Statista |
Impact of the Farm Laws
From low productivity to fragmented landholdings, lack of storage infrastructurre and high indebtedness, there are several reasons for persistent agrarian distress in India. These three new - somewhat controversial - laws are unlikely to be a panacea for farmers' troubles. Their goal, in essence, is to allow greater play of market forces in agriculture.One view is that this will improve farm incomes, attract investment and technology, and increase productivity. It will also free the farmer from the control of middle men who effectively run wholesale markets. Other view is that it will increase the corporatisation of agriculture. There are no easy answers. But experts agree that in a country where agriculture employs so many millions, leaving farmers' fates to the vagaries of the market cannot be the only answer.
History of Market Regulation Programme in India
The concept of a agriculture produce market regulation programme in India dates back to the British Raj: raw cotton was the first farm produce to attract the attention of the Government to make available the supplies of pure cotton at reasonable price to the textiles mills in Manchester (UK). Consequently, India's first regulated market (Karanja) was established in 1886 under the Hyderabad Residency Order, with the first legislation being the Berar Cotton and Grain Market Act of 1887. This Act later became the model for enactment in other parts of the country. The recommendation of the Royal Commission of Agriculture in 1928 is considered as an important landmark in the history of agriculture marketing.During the 1960s and 1970s, most of the states enacted and enforced Agriculture Produce Markets Regulation (APMR), Acts. All primary wholesale assembling markets were brought under the ambit of these Acts. An Agriculture Produce Market Committee (APMC) was constituted to frame the rules and enforce them. Thus, the organized agriculture marketing came into existence through regulated markets.
In 2015, the Union Budget proposed to create a United National Agriculture Market with the help of state governments and NITI Aayog. In 2017, the central government had released model farming acts. The Standing Committee on Agriculture (2018-19), however, noted that several reforms suggested in the model acts had not been implemented by the states. The committee also suggested Centralization, which was thought to be reducing competition and participation, with undue commissions, market fees, and monopoly of associations damaging the agriculture sector. Accordingly a committee of seven Chief Ministers was set up in July 2019 to discuss implemetation. Reforms have been formed by the Goverment in the form of three Acts in 2020.
The passing of these Acts led to the protest by farmers in India specially Punjab, Haryana and west parts of Uttar Pardesh.
Farmers' Protest
The current farmers' protest is an ongoing protest against three farm acts which was passed by the parliament and ratified by the President in September 2020. Indian farmers are fearing that they might lose more than they could gain after the new Farm Laws 2020 thereby taking the protest to the streets. Farmer unions and their representatives have demanded that the laws be repealed and will not accept anything short of it, they are also demanding a legal guarantee of minimum support price (MSP) for their crops.While the government projected that the three laws will remove middlemen and allows farrmers to sell their produce anywhere in the country. However, the protesting farmers have expressed their apprehension that the new laws would pave the way for eliminating the safety cushion of the MSP and do away with the 'Mandi' (wholesale marker) system, leaving them at the mercy of big corporates.
The protests have been the stongest in Punjab and neighbouring Haryana state, where the mandi system is strong and the productivity is high - so only the government has been able to buy that volume of produce at a set price.
Many rounds of talks between the Centre and farmers took place with neither of them retriving their foot. Centre is continuously saying that the Farm Laws 2020 have been made keeping in mind the benefits of farmers throughout the country, while the Farmers'
Unions and their respresentative asking to repeal the Farm Laws 2020 stating that it is corporate-friendly and anti-farmer. There have been many arrests, deaths and suicides during the protest.
Supreme Court's Intervention
The Supreme Court jumped in and pulled up the Centre for its handling of the farmers protest against the new farm laws saying that it is extremely disappointed with the way negotiations between them - Center and Farmers - were going and it will constitue a committee headed by a former Chief Justice of India to resolve the impasse. On 12th January, 2021 SC suspended the farm laws and formed a committee to look into the grievances of protesting farmers.While the negotiations between the Centre and Farmer Unions was still on, the government offered to put the three laws on hold for 12-18 months, which was outrightly denied by the farmers. This offer still holds open.
Farmers Republic Day Parade, 2021
On 26th January 2021, tens of thousands of farmers protesting agricultural reforms drove a convoy of tractors earlier than the alloted time to start the tractor rally (Kisan Gantantra Diwas Parade 2021 also Kisan Parade) into New Delhi. The farmers drove on the prohibited routes, and some section of tractor rally turned violent and protesting farmers clashed with the police. Some protestors reached the Red Fort and hoisted Nishan Sahib (Sikh religious flag) and farmer union flags on the mast on the rampart of the Red Fort.Current Situation
With the budget session going on in the Parliament, the opposition is demanding to end the matter peacefully and urgently.Internet services have been shutdown in the outskirts of Delhi, roads have been barricaded, nail on the roads have been put in place in view of thousands of farmers protesting against the farm laws.
With the protest continuing undeterred and some global personalities extending support to the movement, a clear line has been drawn by minitry of external affairs that it is an internal matter of india. Aso many celebrities responded with hastags - #IndiaTogether and #IndiaAgainstPropaganda, stating that external forces can be spectators but not participants.
Conclusion and Way Forward
The haste with which these three farm laws have been passed in the Lok Sabha and Rajya Sabha through a mere voice vote amidst pandemonium in the parliament is questionable. The bills weren't even sent to the Parliamentary committees. There was no open consulation and feedback, no stakeholder meetings were held to discuss these reforms and no concensus building was done to garner support for these farm. All these factors together did a disservice to the entire democratic process of lawmaking.The farrmers and farmers' unions were not informed about how the system replacing the APMC will be good for them in the long run. There is a fear that the entire APMC system and the existing MSP-based government procurement system could end.
It is going to be very difficult in the coming days as no one - the Centre as well as the farmers - is not receding from their stand on the bill. One of the solution to this problem is dialogue, the center is ready to have a clause-by-clause discussion with the farmers but the farmers are demanding to repeal the laws. Government is ready to put the these laws in abeyance for 12-18 months, but farmers saying that for what we are fighting for will not be achieved by merely putting the laws in abeyance for 12-18 months.
Other solution is that the government listen to the farmers' demand and repeal the laws, but it is very unlikely to happen, because since the inception of the laws the government is of the view that it is in the favour of the farmer so now it cannot change their stand atleast after this long.
What will be the outcome of this tussle between the government and farmers only the time will tell, but till then we have to be very vigilant about the coming scenerio.
Disclaimer: The views are personal and do not necessarily reflect the views of any other individual, institute or government body.
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