New Delhi: Amid the on-going protests by the farmers of Punjab and Haryana and the opposition maintaining its stand on the agriculture bills claiming it as 'anti-farmer', the Central government has issued a clarification on the farm bills. This comes after SAD leader Harsimrat Kaur Badal resigned from the Union council of ministers saying that she stands with the farmers. The Central govt in its clarification stated that the bills are 'pro-farmers' and will free them from the clutches of middlemen. The three different bills are:
1.The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill
PROVISIONS
To create an ecosystem where farmers and traders enjoy the freedom to sell and purchase farm produce outside registered 'mandis' under states' APMCs.
To promote barrier-free inter-state and intra-state trade of farmers' produce
To reduce marketing/transportation costs and help farmers in getting better prices
DOUBTS:
Procurement at Minimum Support Price will stop
If farm produce is sold outside APMC mandis, these will stop functioning
What will be the future of government electronic trading portal like e-NAM
CLARIFICATION:
Procurement at Minimum Support Price will continue
Mandis and e-NAM will not stop functioning
Trading in farm produce will increase on electronic platforms
2.The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill
PROVISIONS
Farmers can enter into a contract with agribusiness firms and producers
Will transfer the risk of market unpredictability to the sponsor
Will enable the farmer to access modern technology
Will reduce the cost of marketing and improve the income of farmers
DOUBTS
Under contract farming, farmers will be under pressure and they will not be able to determine prices
How will small farmers be able to practice contract farming, sponsors will shy away from them
In case of dispute, big companies will be at an advantage
CLARIFICATION:
The farmer will have full power in the contract to fix the sale price of his choice
After signing the contract, the farmer will not have to seek out traders.
Farmer Produce Organisation will bring together small farmers
3.The Essential Commodities (Amendment) Bill, 2020
PROVISIONS
To remove commodities like cereals, pulses, oilseeds, onion from list of essential commodities
This provision will attract private sector/FDI into farm sector
To bring investment for farm infrastructure like cold storage
To create a competitive market environment and cut wastage
DOUBTS
Price limits for 'extraordinary circumstances' are very high that they are likely to be never triggered
Big companies will dominate the agricultural market
The recent decision on onion export ban doubts on its implementation
CLARIFICATION:
It will do away with the imposition of stock holding limits
It will help farmers and consumers by bringing in price stability
The bill will remove fears of private investors of excessive regulatory interference in business operations.
