So after an unfortunate Bollywood actor's death, Chinese Border aggressions, Bihar elections, American Election Results, and Normalised Covid Scenario, we are witnessing a massive Law and order issue and agitation in the Punjab-Haryana-Delhi regions.
On September 20, the BJP-led NDA passed three agriculture ordinances in the upper house through a voice vote-amidst the opposition's cry. The way the ordinance was passed also led to rounds of debate while BJP has called it a 91' movement for Farmers.
What are these ordinances? And why have these ordinances led to the protests in a particular part of the country?
Let us start with the least controversial of the 3 agriculture ordinances and declutter the 'farmer' agitation-
Amendment to Essential Commodities Act (ECA)-
The ECA has its roots in World WarII when the colonialist powers use to apply a cap to the local reserves and restricted consumers and retailers to store the commodities. We all have heard the stories of Winston Churchill diverting the food supplies to his soldiers on the foreign lands from the Indian soil and let Indians suffering in the worst-ever famine!
It is the act that was inherited by our Indian governments from pre-Independence era that principally worked the same, but not on that scale. ECA restricted private players in investing and building robust supply-chains for the market just because of the ECA, the State and Central agencies were quick to pounce upon you even for the small violations.
The new ordinance amends Section 3 of the Essential Commodities Act, which is what gave governments, both state and central, the power to regulate these commodities.
Although, the government has also notified that the storage capacities will be under the regulatory lens if the country faces the conditions of war, famine, and a sudden spike in the prices: For vegetables, the figure is a 100 percent raise, while for lentils and cereals, it has to be 50 percent.
Therefore the narrative that the prices will overshoot and uncontrollable will not find the space as claimed by the opposition.
Important to note here is that the government is yet to notify which commodities will be regulated under section 3.
The idea behind this amendment is to (i) reduce the unpredictable and frequent interference in foodstuff markets, and (ii) protect intermediaries from stock limits, which hurt their ability to conduct business - 'THE PRINT' Media.
The Farmers (Empowerment and Protection) Agreement on Price assurance and Farm Service Bill, 2020
What used to happen till now-
So far, in most of the country, our farmer cannot directly sell his produce to consumers or food processing companies.
Farmers were forced to sell their yield to only the local designated Mandis and were permitted to few licensed traders in the market. Even if a farmer were to sell his product to a licensed trader he had to pay fees to the APMC.
Free market, eh?
How will this amendment initiate the changes-
Now, the farmer can enter into a contract with the consumer even before the harvest and lock-in the prices. It assures the farmer a fixed competitive price even without the harvest and allows the consumer segment to look actively into farming.
It further states that these contracts will not make farmers liable to submit any fee amount to APMC and all the APMC laws will be now restricted to their mandi lands.
The amendment helps to build competitive markets that were early highly under the monopoly. It does not do away with APMCs. However, from now on, they have to compete with other buyers to provide better services or prices.
Observing this amendment picture gets clearer who has more reasons to agitate and block the roads! ... Farmers?
The Farmer's produce, trade, and Commerce (Promotion and Facilitation) Bill,2020
1.The ordinance liberates our marginalized farmers and empowers them the power of choice to bypass APMC without any fees levied on them.
2. It allows private players to set up an online trading platform for trading in agriculture commodities.
3.Efficient/fast dispute-resolving without involving judicial systems and allowing a sub-divisional magistrate
It is this ordinance that has been at the center of Debate for all the agitators and the government. The rumors that the government will scrap and stop buying at the MSP(Minimum Support Price) is FAKE and not going to happen, nor is the central government focused to dismantle the existing APMC structure.
After understanding these amendments, it's logical to conclude, that it is not the farmers who are hit at the back but the middlemen network who have enjoyed the monopoly since the independence, and before.
Agitation-
Currently, in the country, we have the sowing season for the Rabi crops-which majorly comes from the Punjab-Haryana Belt. Protests at such times do not seem to be a usual thing -at the first place-for the farmers who have nothing to lose in all these amendments.
Although, Agitators speculate that these amendments will lead to the submission of the farming sector to private companies. They fear that the contract farming which has been legalized through these amendments may affect the farmers in the long-term, as they assume the exploiting nature of the profit-finding private companies. Rumors are making rounds that government will stop buying at the MSP and farmers wont even get the fixed MSP which they used to get earlier and MSP apart from being the Minimum support price would become the Maximum Support price in the market. BUT...
None of these three amendments bind the farmers into compulsions and forces him to get away from the existing architecture. The government of India has made it clear that it will be continuing the purchase at the MSP from the farmers, as it is, and have no plans to dismantle the existing APMC architecture. The only difference these amendments are going to create is a better, liberal, and open-competitive agriculture market in the country.
Punjab-Haryana dilemma-
Punjab-Haryana produces the crops which lie in the higher MSP ranges. Till now, this product was purchased by FCI from the state-mandis which resulted in massive revenue for the state governments of Punjab and Haryana. Now as farmers are no more under any restrictions and are eligible for intra-district, intra-state, and export trades - these state governments face the fear of loss of a large chunk of their state revenue.
Punjab has a congress led government who is staunchly heading these protests. At the same time, it was the same Congress party who had mentioned similar initiatives, if elected to power- this can be considered as an example of classic oppositionism. The current ruling party would also have done similar stunts if they were in the opposition.
Aam Admi Party which stood out in the support of the agitations, yesterday gave a green signal to the above mentioned 3rd amendment! :)
On the International level also the issue has got support from Canada which is quite strange as Justin Trudeau the PM of Canada has himself challenged India at WTO for our policies like MSP and agriculture subsidies -IRONY, isn't it!
Of course, Politics over the reforms will continue but not at the expense of our marginalized farmers who have already missed the '91 liberalization bus.
The Indian farmer has, for too long, been subjected to cruel and unusual laws. This ordinance is a step towards normalizing farming in India and allowing farmers to reap the benefits of freedom that other sectors in India take for granted.
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That's it from my side! Stay Safe!
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