Lok Sabha Passes Farmers Bills For Inter-State Trade, Contract Farming [Read Bills]

The Lok Sabha on Thursday passed the Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020, by voice vote. These Bills, already in force as Ordinances, seek to facilitate intra-state and inter-state trade of farmers' produce and execution of agreements between farmers and buyers, prior to the production/ rearing of any farm produce. Parliamentary Debate The Bill was widely opposed in the Lower House for its potential abuse by the private sector, leading to further exploitation of the farmers. Some of the key issues raised during the debate are listed thus: Parliament is not competent to enact a legislation on the subject of Agriculture since it falls under the State List at Entry No. 14 under Schedule VII of the Indian Constitution.Bills have the effect of privatizing the agricultural sector which will be detrimental to the farmers' interest in the long run; privatization invites black marketing, hoarding and profiteering.Farmers have minimal bargaining power and there's a massive potential for exploitation by powerful, profit-oriented private sector companies.By de-regularizing the agricultural sector, the Bill diminishes state control which not only affects the state Government's revenue but also renders them incapable to regulate in case the private sector resorts to unscrupulous practices.The Dispute Resolution mechanism proposed by the Bills is very complicated for the farmers.Farmers are not trained electronic trading and thus, they shall be highly prone to frauds. With respect to 'Contract Farming' as proposed by the latter Bill, the Members apprehended that the Private sector may 'bulldoze' the farmers into entering unfair contracts, for prices below MSP. It was further highlighted that whereas farmers need to be protected by market fluctuations induced by natural calamities such as epidemic, floods, drought, earthquake, etc., they shall not be able to seek aid from the Private Sector as they shall be exempted from any liability under the Force Majuere clause under Contract law. It was also stated that in case of non-performance of Contract by the private sector, farmers shall be susceptible to prolonged litigation against big corporates, having deep pockets. Responding to the debate, Agriculture Minister Narendra Singh Tomar firstly clarified that these bills would not have any impact on the Minimum Support Price (MSP) mechanism which would continue. He then assured that the legislations will benefit the farmers by increasing competition among traders, thereby enabling them to bargain at a higher price. Further, the farmers shall have an elaborate market as they will be able to trade freely anywhere in the country. On involvement of private sector in agriculture, the Minister said that it shall enhance farming as farmers will gain access to better infrastructure and modernised services. He said that the bill will ensure that many services will reach small farmers. "Contract will not lead to taking over of land. If the corporates build some infrastructure, it will only benefit the farmer in the end," he added. So far as the Dispute Resolution mechanism is concerned, he explained that the Sub-Divisional Magistrate will ask both the parties in dispute to appoint two panch each who try to reach a solution. However, in case the dispute is not resolved. The SDM will resolve the issue himself. He further said that in case the matter goes to the court and an unfavourable order is passed against the farmer, then he shall be liable to pay only the actual disputed amount and that his land/ property shall not be attached. Tomar also added that the contracts signed under this law will also have a provision that if prices at time of sale are more than what was agreed to at the time of contract, then the farmers will get a certain percentage of the additional profit. Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 This Bill permits sale and purchase of farmers' produce at remunerative prices through 'competitive alternative trading channels' to promote efficient, transparent and barrier-free inter-State and intra-State trade of farmers' produce outside physical premises of markets notified under various State legislations. Trade of farmers' produce It permits trade of farmers' produce outside: physical premises of market yards under the state APMC (Agriculture Produce Marketing Committee) Actsother markets notified under the state APMC Acts. Such trade can be conducted in an 'outside trade area', i.e., any place of production, collection, and aggregation of farmers' produce including: (i) farm gates, (ii) factory premises, (iii) warehouses, (iv) silos, and (v) cold storages. Electronic trading It permits electronic...

Lok Sabha Passes Farmers Bills For Inter-State Trade, Contract Farming [Read Bills]

LIVELAW NEWS NETWORK

Tags