As the movement continues to get strong, I thought it was a good idea to share it with the readers of LB. My ancestors were farmers, hence why this issue becomes personal. I wanted to try my best to do this issue justice with regards to explaining the bills in detail to those who may not be aware of why the “Farmers Protest” matters, and that too on this side of the world. It’s important to mention that you do not have to have any family connection to farmers, to acknowledge and understand the threat this bill poses to the livelihood of farmers, the very same people who continue to feed the world.
This series hopes to describe to our readers the largest protest in the world’s largest democracy, the significance for farming, and why it is a violation of rights. Laws are passed for the betterment of society. However, it is beneficial to contact and keep those individuals who are impacted in mind, in order to pass effective legislation. Yet common farmers had no part in the process of drafting and approving the legislation. The unity amid a pandemic and the resilience displayed by the farmers who left the comfort of their home to protest, is commendable to say the least. What Legislation is Being Opposed? In September 2020, amid a pandemic, the government passed 3 laws deregulating the agriculture sector. Bill #1 - Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 Eliminate all government subsidies for the farmers Currently, the government guarantees farmers a minimum support price for at least a few grain crops which range from 10 to 15 USD for 100 kilos of grain products. Currently, farmers trade their crops within a Mandi system, that allows them to trade in a market with minimum support pricing (MSP). Think of the Mandi as the middle man/ farmer’s market. With the passing of this bill, this law will eventually diminish within a year or two because of the lack of regulation that forces farmers to deal with the demands of big corporations. Going forward, the farmers will have to do contract farming with corporations on an agreed upon price and the corporation will dictate the specifications of products produced. Any excess product will not be purchased, and thus will go to waste. To explain it in comparable terms, it is the equivalent of eliminating a minimum wage or a price floor. The farmers now do not have any price stability and are at a greater risk of being taken advantage of. Bill #2 - The Farming Produce Trade and Commerce (Promotion and Facilitation) Bill If the farmer gets into a dispute with a private company, they cannot go to the courts. Under contract law, will these corporations choose to perform in good faith? In this situation, what are the repercussions if the corporations decide against that? There is a clear power imbalance that tips the scale in the favour of corporations. There is no legal recourse for 50-60% of India's population in cases where a big corporation takes part in exploitation. In the event a dispute occurs, an arbitration will happen but who will have the bargaining power? You guessed right - the corporation not the farmer. Such a bill gives the corporations even more power so that they continue winning every single time, leaving nothing up to the farmers. Bill #3 - The Essential Commodities (Amendment) Bill Any person or entity can hoard or store an unlimited quantity of any essential commodity or product. A large corporation has the capacity to use their financial resources to purchase and hoard agricultural products.. Unfortunately, farmers do not have the capital to invest in storage. This becomes an issue because these very same corporations will have the ability to buy crops in bulk at a lower price. This will undercut the market for these crops on which farmers gain their profits thus leaving them with significantly less to take home. By: Karen Randhawa and Sukhdeep Kullar Comments are closed.
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