Krishi Bill 2020, the reason of Farmer's protest in India

Krishi Bill 2020

With the announcement of Agriculture Bill (Krishi Bill) 2020, an agitation is raised in the midst of Indian Parliament. The Modi government says commercial liberalization of agricultural products is being done in these three bills. Then why the opposition is resisting so much. Exactly what is said in this bill?

The Narendra Modi government, on 14 September 2020, introduced three agriculture-related bills in the Lok Sabha amid strong opposition from several opposition parties. Three bills were passed in the Rajya Sabha on 20 September 2020. The government claims that the goal of these three bills is to liberalize the trade in agricultural products. However, The Bill received Presidential Assent on 27 September 2020 and was introduced by Narendra Singh Tomar, Minister of Agriculture and Farmers Welfare. But why are opposition parties opposing these three bills? What exactly are in these bills? Let's find out –

1. Farmer Production Business and Trade (Promotion and Facilities) Bill, 2020

Provision –

The first bill relates to the agricultural market. The bill would create an ecosystem where farmers and traders would have the freedom to buy and sell farm produce outside the agricultural markets registered under the State Agricultural Commodities Market Committee.

Trade in agricultural products inside and outside the state will be unhindered.

Marketing and transportation costs will be reduced, which will enable farmers to get better prices for their produce.

The bill will also provide a convenient infrastructure for farmers for e-commerce.

Opposition parties object –

The parties heading opposition have stated they will not run in the by-elections. This is because the state will not get a 'mandi fee' if farmers start selling their produce outside the registered mandis.

Besides, they have raised the question, what will happen to the 'commission agents' appointed by the state if the entire agribusiness goes out of the market?

At the same time, the bill will eventually end the MSP (Minimum Support Price)-based procurement system set by the government.

Electronic commerce companies use the infrastructure of agricultural markets, such as e-NAM, the government's online platform for selling agricultural products. Opponents have also questioned the future of the platforms if the markets themselves are destroyed in the absence of trade.

2. Farmers (Empowerment and Protection) Price Assurance and Farm Services Contract Bill, 2020

Provision –

This bill deals with contract farming. It said farmers would be able to enter into pre-agreed prices with agribusiness companies, processing companies, wholesalers, wholesalers, exporters or large-scale retailers for the sale of future agricultural products.

Marginal and small farmers owning less than five hectares of land will benefit from this agreement (7% of the total farmers in India are marginal and small farmers).

This will shift the unexpected market risk from the shoulders of farmers to the shoulders of their sponsoring agencies.

Using modern technology will enable farmers to get better information.

Increase farmers' income by reducing marketing costs.

By avoiding intermediaries, farmers can get the full price themselves by being directly involved in marketing.

Effective process for resolving various disputes will be created by setting a time limit for redressal.

Opposition parties object –

The management of contract farming will be to the detriment of the farmers. Because they are not as skilled at bargaining as the other party to the contract, they cannot meet their needs.

Sponsors will probably not like to deal with a large number of small and marginal farmers in pieces.

Whether they are big private companies or exporters, wholesalers or processors, they will definitely get more benefits from small farmers in resolving disputes on various issues.

3. Essential Products (Amendment) Bill, 2020

Provision –

This bill is product related. The bill said food grains, pulses, oilseeds, onions and potatoes would be removed from the list of essential commodities. Except for any 'unusual situation' like war, there will be no limit on stocks of such products.

This provision will eliminate the risk of additional regulatory interference in the business activities of private investors. As a result, private sector / foreign investors will be attracted to agriculture.

By doing so, investment will come in modernizing agricultural infrastructure and food supply chains such as cold storage.

Both farmers and consumers will be assisted by bringing price stability.

Waste of agricultural products will be stopped by creating competitive market environment.

Opposition parties object –

The extreme situation that the government has given as an example of the 'abnormal situation' that the opposition has said will probably never happen.

Gaining the freedom to stockpile large companies means they will have the opportunity to impose conditions on farmers. As a result, farmers can get lower prices for agricultural products.

This provision has created an atmosphere of skepticism about the implementation of the recent decision to impose a ban on onion exports.

(A) Answer the following questions from the text above. 5×2 =10

1. How many Bills were introduced in Agriculture Bill 2020?

2. Who is Narendra Singh Tomar?

3. What is MSP?

4. When was the Agriculture Bill (Krishi Bill) 2020 introduced first in the Indian Parliament?

5. What opinion do you have about the present norm of Agriculture Bill (Krishi Bill) 2020?

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