Two contentious agriculture bills – The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill and The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, which were passed in the Lok Sabha yesterday, has caused quite a ruckus. Prime Minister Narendra Modi has described these two bills as a ‘protection shield’ for farmers. He said these laws will unshackle farmers by allowing them to sell their produce anywhere by negotiating a better price.
Modi added that the government purchase of farm produce will remain, and the mechanism of minimum support price will continue in the same way it always has. He said his government is committed to providing farmers appropriate price through the MSP, and also asserted that no government has done as much for the farming community as the BJP-led National Democratic Alliance in its six years in power.
What are the Bills?
Reports state that the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill 2020 is meant for a national framework on farming agreements that protects and empowers farmers to engage with agri-business firms, processors, wholesalers, exporters or large retailers for farm services and sale of future farming produce at a mutually agreed remunerative price framework in a transparent manner.
In regards to the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill 2020, the government says this will bring about an ecosystem where the farmers and traders can enjoy the freedom of choice relating to sale and purchase of produce through competitive alternative trading channels. The Bill will allow farmers to sell their produce outside physical premises of markets (mandis) or deemed markets. This will open unfold more choices for the farmer, reduce marketing costs and help them in getting better prices. Moreover, it will also help farmers with surplus produce to get better prices and consumers of regions with shortages and lower prices.
For the Betterment and Empowerment of Farmers
Union Agriculture Minister Narendra Singh Tomar explained that the Bills were for the overall benefit of farmers as they would now be able to sell their produce in an unrestricted manner, both within and outside their respective states. He assured the House that the Bill which was meant for empowering farmers to engage with private investors would be for selling their produce and bringing new technologies to their farms. It would not affect the farmers’ rights over land, Tomar said. It would only be for farm produce on pre-agreed minimum price.
The minister said the new legislations will bring about revolutionary transformation and transparency in the agriculture sector, electronic trading will increase, there will be accelerated agricultural growth as private investment will be attracted in building supply chains and agricultural infrastructure, new employment opportunities will be created and rural economy will get a boost, and this in turn will help strengthen the national economy.
