Daily Happenings Blog

Thursday Brief

Now a days if you open any news channel or news paper, one news is making the headlines, which is farmers protest against new farm bills. Broadly, farmers aren’t happy with the newly introduced legislation, namely, the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, the Farmers Produce Trade and Commerce (Promotion and Facilitation) Act and the Essential Commodities (Amendment) Act.

While the govt claims that the laws would help the small and marginal farmers, opposition parties and farmers’ union are touting them as anti farmer. There are many rounds of negotiations already happened between the leaders  of farmers’ unions and central govt. The farmers have presented six key demands which may be too much to ask for. The demands are as follows:

1 Make Minimum Support Price (MSP) And State Procurement Of All Crops A Legal Right– The Commission on Agricultural Cost and Prices (CACP), in its report to govt in 2018 had mentioned the need to make MSP and state procurement of all crops a legal rights to farmers. This was after govt hiked the MSP of several crops. This demand can have two fold effects. Primarily, the storage capacity with govt ca not hold huge amounts of crops. Any legal rights will increase such problem. Secondly with this demand private players may refrain from buying Indian crops in such instances and thus the farmers will fail to get the maximum benefit.

This is not because private players will want to loot farmers. It would be because MSP compulsion would bring legal consequences and it is difficult to prove if the farmer consented to sell on a lower price or not. The farmer may be selling his produce at less cost due to desperate needs, because when he finds govt has no intention of buying because of shortage of godown space, the big player may not be able to prove consent, they will land up in legal soup. This will definitely affect the farmers.

2 Accept Recommendations Of The Swaminathan Committee On MSP– The commission report states that the govt should raise the MSP to at least 50% more than the weighted average of cost of production. It is also known as C2+50% formula. Govt had agree to implement about 200 recommendations of committee including this one in Dec 2019, including this on MSP. The govt agreed on formula for only 22 crops for now and may be later, after adequate consideration, it may extend to other crops.

3 Repeal Commission On Air Quality Management in NCR And The Adjoining Ordinance 2020- This commission was set up Nov 2020. It aims to curb the problem of air pollution in the NCR. As we are all aware that Delhi gets engulfed by a thick blanket of smog every year in winters, which leads to health risks. Thee major contributor to this smog in winters is the burning of stubble. The law provides for a fine up to Rs 1 Cr or jail up to 5 years or both. The farmers who burn stubble, are conscious of going to jail, if they continue to burn stubble. This demand is utterly saddening.

4 Slash Diesel Price For Agricultural Use BY 50%- Before this, we may know the list of certain existing subsidies and benefits available to farmers

  • Exemption from income tax.
  • Fertiliser and power subsidies
  • Agricultural equipment, seed and irrigation subsidies.
  • Credit and export subsidies.
  • Agricultural infrastructure subsidies.

With all these subsidies in place and other welfare schemes for farmers, it certainly wrong to ask for subsidies on diesel. There are taxpayers in the country which is miniscule  as compared to population, and they do not get any benefits out of their payment. Keeping this and current economic state of country, this demand is totally justified.

5 Withdrawal Of Cases Against Farmer Leaders All over India. Poets, Intellectuals, Lawyers, Writers And Human & Democratic Right Activist, Those Who Have been Jailed in False Cases Should Be Released—- The demand looks like very ambitious for  the farmers’ movement, that is being run for the benefit of farmers. The duty and power of granting bail, adjudicating and discharging the accused lies with judiciary, which is constitutionally separate from Parliament.

The Central govt can not to anything to withdraw cases. However, the manhandling of public property and public servants can not be condoned as it is matter of national security.

6  Repeal The Three Laws- This demand has been the forefront and farmers’ union says this is non negotiable. The farmers are demanding this because the legislation does not necessitate a written contract. Also, in case of dispute, the farmers can not approach the court. They can only approach only the Sub divisional Magistrate. Though they can approach, the court as  a consumer according to Supreme Court judgement, there is hidden feeling of distrust among farmers.

Additionally, the farmers are also apprehensive that the new laws will do away with MSP soon and the agricultural sector will fall in hands of private players where they will have minimum says. The issue of doing away with the Agriculture Produce Marketing Committee (APMC) is also there.

The govt has assured they will not get rid of MSP and APMC. Further amendment to the legislation are offered by  the govt to farmers. However leaders have outright denied any new amendments. While it may be true that the law may be problematic, there are several redressal mechanism apart from repealing the law. The govt is keen on amending the law, which should be ideal course of action considering that any new law can not make everyone happy.

Thus wide scope of redressal mechanisms does not warrant a demand of repealing of law.

The actual fact is most of the union leaders are themselves not farmers but they are middlemen. As this law will render middlemen jobless, and they are afraid of losing their clout on farmers, and secondly most of the union leaders have political ambition and political connection, therefore many political parties are backing farmers’ protest. Everyone knows how the mandis and APMCs are functioning in Punjab and Haryana, so these are 2 main states which are in forefront of  this protest.

Lastly stand sill for the states of Delhi, UP, Haryana. Rajasthan and Punjab will not be economically fruitful in these crucial times when nation is going through pandemic. It is very important that this row to end at the earliest to make everyone happy.

Waiting for your comments/views/feed backs.

Anil Malik

Mumbai, India

10th December 2020

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