Modi government puts forward farming bills in Rajya Sabha

In an unprecedented move, the ruling government introduced three agriculture sector-related bills on Sunday while there was a severe resistance from the opposition parties.

The bills aim to ease trade regulations in agricultural commodities and were passed by the Lok Sabha.

First Bill – Farmer’s produce Trade and Commerce Bill, 2020

Provisions the bill offers

Creating an ecosystem which allows farmers and tradesmen to sell and buy farm produce outside their currently registered ‘mandis’ status with the states’ APMCs
Promoting no-barrier inter and intrastate trading of agricultural produce
Bring down marketing and transportation prices and ensure higher pricing for the farm’s produce
Create a sound framework for e-trading

Rebuttal by the Opposition

States would lose out on revenue as they will be unable to collect ‘mandi fees’ when farmer start selling their produce out of the range of registered APMC’s
In case of the entire farming produce being moved out of the mandis, what would be the future of states’ commission agents?
Might lead to an end in the MSP-based purchase system

Second Bill – Farmer Agreement of Price Assurance and Farm Services Bill, 2020

Provisions the bill offers

Farmers can now build contracts with agribusiness organizations, wholesale dealers, and retailers at a pre-fixed price
Small farmers, who own land less than five hectares, would gain through the contract
Lesser onus of market unpredictability by farmers and more towards sponsors
Ensuring better access to modern equipment for farmers
Bring down the marketing costs and enhance farmer’s income
Engaging in direct marketing by eliminating intermediaries
Better conflict resolution through redressal time measures

Rebuttal by the Opposition

Farmers in contract agreements would become the weak parties for their inability to negotiate what’s required
Sponsors might not be interested in dealing with a variety of small scale and marginal farmers
Sponsors might have the mighty hand as they are usually private organizations, wholesalers, and exporters

Third Bill – The Essential Commodities Bill, 2020

Provisions

Removal of commodities like pulses, onions, potatoes, and oilseeds from the list of essentials which would remove the stocking impositions apart from emergencies such as war
Helps attract FDI into the agriculture sector, which would help private investors fears of heightened regulatory interferences or conditions in business
Procuring investment for farm infrastructure, for example, cold storages and food supply chain
Ensuring price stability by helping consumers and farmers
Reduce farm produce waste

Rebuttal by the Opposition

Price limits too high that the ‘exceptional circumstances’ category might not be triggered
Puts more power in the hands of big companies to pile up on commodities, which will lead to dictating conditions to farmer leading to low prices

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