On September 20, 2020, Rajya Sabha passed two controversial agricultural laws amid the uproar among opposition members. The bills have sparked protests from farmers in several places. The two land reform laws – the Price Insurance Agreement and the Agricultural Services (Empowerment and Protection) Bill 2020 and the Agricultural Trade and Commerce (Promotion and Facilitation) Bill 2020 – were approved by a vote in Parliament, although the opposition protested and stormed the House well to a select committee. These bills will now be sent to President Ram Nath Kovind for approval. Since the farmer`s highest appeal body against a private body was the appeal authority, the farmer is effectively prevented from transferring the Court of Justice. For example, opposition parties claim that the law was heavily distorted in favor of private settlement because individual farmers did not have the resources available to private companies. [11] Shri Narendra Singh Tomar said on the bills that prime minister Shri Narendra Modi`s government has taken several historic decisions over the past six years to ensure farmers receive rewarding prices for their produce and to increase farmers` incomes and livelihoods. He again clarified that the supply would continue at the minimum support price, the assurance of this was given by the Honourable Prime Minister himself, the MSP rate was significantly increased in 2014-2020 and the MSP for the next Rabi season will be announced next week. The EU Minister of Agriculture said that farmers were guaranteed full protection in this legislation.
Essential Products (Amendment) Ordinance 2020 The provisions of this Act apply despite all conflicting provisions of any applicable law or instrument of the State Government. If, before the entry into force of this Act, an agricultural agreement or contract has been concluded in accordance with a law of the Land Government, the agreement shall remain valid for the period specified in the agreement or contract. Agricultural agreements may include “trade agreements” or “production agreements”, or a combination of both. In a commercial and commercial contract, ownership of the goods remains in the hands of the farmer during production and the farmer receives the price of the product on delivery in accordance with the terms agreed with the promoter. In production agreements, the promoter undertakes to provide agricultural services in whole or in part and to bear the production risk, and also undertakes to make payments to the farmer for the services provided by the farmer. Agricultural services include the provision of seeds, feed, feed, chemicals, machinery and technology, advice, non-chemical inputs and other agricultural inputs. These bills could have an impact similar to that of the new economic policy of 1991. However, this depends on several independent actors and their motivations. Availability of buyers of agricultural products and infrastructure [9]. “PM chairs Cabinet Meeting to give historic boost to Rural India,” Press Information Office, Ministry of Agriculture and Farmers Welfare, 3 June 2020. The Farmers Produce Trade and Commerce Bill breaks the monopolistic situation granted to the APMC-FCI structure.
The amendment to the Essential Goods Act of 1955 changes restrictions on inventories and allows staple foods to become commercial. By loosening the grip of the APMC, the government risks that farmers will receive prices below the Minimum Support Price (MSP). A similar law was passed in Bihar in 2006, when the state abolished APMCs. A recent study by the National Council for Applied Economic Research reported increased volatility in grain prices. Agriculture is included in the list of states under the Constitution of India. However, the existence of entry 33 in the concurrent list gives both the Centre and States the power to control the production, supply and distribution of products in trade and industry related to agriculture. As many state governments disagree with the bills, it is likely that they would undermine the bills by exercising their power. When the development push took this turn, he also left the agricultural sector, which had to deal with outdated laws and systems. The Farmers` Agreement on Price Insurance and the Agricultural Services Bill create opportunities for farmers to engage in contract farming, sell their products outside the CMPA and expand their market access. Invoices also create a sudden power vacuum in the market, creating uncertainty in the production market. In the event of a gradual collapse of the APMC systems, the government has not yet considered an alternative pricing mechanism.
It must also reassure farmers that the bills are not an attempt to phase out public procurement. Overall, bills require significant changes before the vision can become a reality. Except as otherwise provided in this Act, a supplier of agricultural services may become a party to the Agricultural Agreement. In this case, the role and services of the provider are expressly mentioned in the contract. Who is a “farmer” within the meaning of this law? What is an “agricultural agreement”? The Trade and Commerce Regulations provide buyers with the freedom to purchase agricultural products outside of CMPA markets without having a licence or paying fees to the CMPA. The Contract Cultivation Ordinance provides buyers and farmers with a framework for concluding a contract (before the start of a harvest season) that guarantees farmers a minimum price and buyers a secure supply. The third regulation amends the Basic Materials Act so that stock limits for agricultural products can only be imposed in the event of a sharp increase in retail prices and exempts participants and exporters in the value chain from any stock limits. All three regulations aim to increase buyers` availability for farmers` products by allowing them to act freely without licensing or stock restrictions, so that increased competition between them leads to better prices for farmers. [9] Although the regulations are intended to liberalize trade and increase the number of buyers, this may not be enough to attract more buyers. Parliament today passed two bills aimed at reshaping agriculture in the country and increasing farmers` incomes.
The Agricultural Trade and Trade (Promotion and Facilitation) Bill 2020 and the Farmers` Price Insurance and Agricultural Services Agreement (Empowerment and Protection) Bill 2020, passed by the Lok Sabha on 17 September 2020, were also passed today by the Rajya Sabha. .
