Highlights
- Farmers are protesting in Punjab, Haryana and other states demanding a rollback of the three farm bills.
Last month, India's parliament passed three controversial farming bills aimed at the transformation of agriculture trade, which became enforceable by law after they were signed by President Ram Nath Kovind.
While the government says these new laws will help move towards a more flexible system, farmers groups argue that the 'government is throwing small farmers to big sharks' with the implementation of these bills.
- The central government of India says these reforms will help accelerate growth in the agriculture sector.
- Political parties, including Congress and Shiromani Akali Dal (SAD), oppose the agriculture reform bills.
Prime Minister Narendra Modi has also emphasized that farmers will benefit from these changes, as these legislations will allow farmers to trade their produce outside notified grain markets, empowering them to enter into farming agreements with private companies for sale of agricultural produce, prior to production.
Despite PM Modi's assurance that agriculture reforms are beneficial for farmers, protests have erupted in different parts of the country, including Punjab and Haryana.
Prime Minister Narendra Modi Source: AAP
Farmer unions and opposition parties claim that the new laws will not only phase out the MSP (minimum support price) and the traditional grain market system (APMC- Agricultural Produce Market Committee), but it will also crush down the small and marginal farmers.
What are the reformed farm bills?
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation), the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services and the Essential Commodities (Amendment) Act became laws after they were signed by President Ram Nath Kovind.
- The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) bill seeks to allow farmers to sell their produce outside APMC 'mandis' and enable food traders to buy farmers’ produce from any market.
- Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services bill will allow farmers to enter into a contract with agri-business firms or large retailers for the sale of future farming produce at a mutually pre-agreed price of their produce.
- The Essential Commodities (Amendment) Bill, 2020, seeks to remove commodities like cereals, pulses, oilseeds, edible oils, onion and potatoes from the list of essential commodities. However, the central government has retained the right to regulate them under extraordinary circumstances.
According to the central government of India, these reforms will help accelerate growth in the agriculture sector through the investment of private companies to build the infrastructure and supply chain in both national as well as global markets.
Speaking to SBS Punjabi, Mr Manjot Singh who runs a law firm in Melbourne and also teaches law , says he has read the new bills, and comparing them to the old legislation he believes this is a "great initiative" from the Indian government.
“I’ve read through all the bills and also looked at the previous legislations of the agriculture sector. This is one of the best initiatives taken by the government of India and the provisions will be beneficial to all: farmers, consumers and traders,”
Manjot Singh Source: Supplied
“Previously the mandi’s (market) that are connected to FCI (Food Corporation of India) were ruling the agriculture trade, but the new laws have presented an opportunity for farmers to grow and establish in the bigger markets,” he says
Why these reformed bills are angering the farmers?
According to a report, farmers are holding strong protests in Punjab, Haryana and other parts of India. Political parties, including Congress, Shiromani Akali Dal (SAD) and Bahujan Samaj Party (BSP), opposed the agriculture sector reform bills, saying they were against the interests of small and marginal farmers.
Farmer's unions have expressed their apprehension that by allowing farming agreements, the big players and companies will capture the farming industry which will harm the small and marginal farmers.
Bhartiya Kisan Union Ekta (Sidhupur) members raise slogans during a protest against farm bills Source: AAP
Bhartiya Kisan Union (BKU) Punjab Unit President Balbir Singh Rajewal told SBS Punjabi, “the government is trying to manipulate farmers by giving all the powers to the corporate sector and once the private grain markets are established, the traditional grain markets will become history. The farmers will have to depend on corporations and private firms,”
"Under the current APMC act, arhatiyas (traders/commission agents) have to get a licence to trade in a mandi (market). The arhatiyas have credibility, as their financial status is verified during the license approval process," said Mr Rajewal.
Bhartiya Kisan Union (BKU) Punjab Unit President Balbir Singh Rajewal Source: Supplied
“But, under the new laws the government has made it free for all, meaning any trader with a PAN card can buy the farmers’ produce. So how can a farmer trust these traders under the new law?”
What are the demands as far as dispute resolution is concerned?
Mr Rajewal told SBS Punjabi, “we are demanding a rollback of the three new acts promulgated by the central government,”
“The new bills are not only a threat to our agriculture sector but are also going to abolish our mandi system, snatching away the bread and butter and livelihoods of millions of labourers, commission agents, munims, loaders, transporters, sellers, etc” said Mr Rajewal.
Ajit Singh Chauhan, a community ambassador of the Indian community and a social worker in Melbourne, who is directly working with the farmer unions in India says the government has not issued a proper level of information for the local community or the farmers working on the ground level that they could understand the impact of these bills on the agriculture industry.
“As far as I know, the community of Punjab is not ready for such bills due to their lack of awareness. A lot of the farmers in India live below the poverty line and lack the understanding of the impact of these bills on the farming sector,”
Farmers demanding the rollback the three farm bills during a protest Source: Getty Images
Ajit Singh Chauhan, a community ambassador of Indian community and a social worker in Melbourne Source: Supplied
“The government should try to make the amendment to the bills according to the need and suggestions of the community.”
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