• The Farmers Produce Trade and Commerce (Promotion and Facilitation) Bill allows barrier-free intra and inter-state trade of farm produce but There was no restriction on farmers to sell elsewhere earlier too.
• Previously, farm produce was sold at notified wholesale markets or mandis which are run by the approximate 7000 Agricultural Produce Marketing Committees (APMCs).
• Each APMC had licensed middlemen who would buy from farmers at prices set by auction or at MSP price after that middlemen sell crops to institutional buyers like retailers and big traders.
• NEW SYSTEM – Farmers can eliminate middlemen and sell directly to institutional buyers at prices to be agreed between them.
• However, farmers’ groups are worried this exposes them to corporates who have more bargaining power and resources than small or marginal farmers.
• 85% of farmers own less than two hectares of land this means difficult for them to negotiate directly with large-scale buyers.
Alternate private ‘mandi’ will lead to ultimate closure of existing APMC ‘mandi’.
No tax on ‘private’ market
Removal of geographic restriction – small farmers may find it difficult to avail potentially better prices at markets further away because of constraints on travel and storage.
There was no restriction on farmers to sell elsewhere earlier too.
State Governments objections – If private buyers start purchasing directly from farmers, they will lose out on taxes that are charged at mandis. The potential scrapping of mandis, endangers the jobs of millions who work there.
Bill 2 – Contract Farming
• This law will allow farmers to enter into agreements with agri-firms, exporters or large buyers to produce a crop for a pre-agreed price or they also can sell after crops cutting.
• Farmers are worried and this means the MSP will be removed or no govt control over prices after 5 to 10 years of this bill.
• Farmers Demand – Link MSP to contract prices.
Bill 3 – Hoarding
• The Essential Commodities (Amendment) Bill proposes to allow economic agents to stock food articles freely without the fear of being prosecuted for hoarding.
• Unlimited stocking can lead to artificial price fluctuations and low prices for farmers after harvest.
Demands of Farmers Organization
The acts are more favourable towards the companies and not legally empowering the farmers.
Strengthen MSP – MSP to be made a legal right. Currently – Procurement is not done for all 20+ crops for which MSP is declared
APMC reforms are needed, not its removal.
The middleman will NOT go away as companies will also hire middlemen for buying crops from farmers.
Investment in Agriculture sector must be from GOVERNMENT, NOT PRIVATE sector.
Top 10 biggest problems for Indian farmers-
1. In India directly or indirectly total 52% population involve from agriculture sector but total GDP share of agriculture sector is only 16-17%.
2. According 2016 reports average income of farmers is only Rs6400/month and its yearly became 77000 Rupee only whereas 52% of which has an average average loan of 1.4 lakhs.
3. According to National crime Records bureau reports 2019 in the year 2019 more than 10000 farmer suicide due to non payment of bank loans.
4. According to international journal of science and research report ‘Indian farmers gets only 10-23% price of an average market value of any crop or agriculture product’.
5. According WTO’s trade statistics 2014 ‘ India’s total participation in agriculture products exports is only 2.5%.
6. ASER survey that in villages total 72% youth directly connected to agriculture but only 1% whom wants to be a farmer.
7. According to CSDS reports 2018 76% Indian farmers want to leave agriculture because of low source of income from agriculture.
8. PRS reports reveals that total 38% current Parliament members are connected to agriculture and farming then also condition of farmers in our country id very bad.
9. Now we need to see the difference between market price and farmer’s selling price
Wheat at sell by farmers at mandi by 20Rs/kg but on companies sells wheat flour at Rs35 to 60 /kg in market.
Bajra- farmers 17Rs/kg at departmental store- 80Rs/kg
10. Politicians or Businessmen never want the development of farmers or they get the right price for their crops. Otherwise they will lose the reason to get vote from farmers.
Each and every agricultural mandi in India has been ruled by the political parties, if they want development of farmers then the farmers would have benefited, but why did they want such good things for farmers. why does we forget that they are Indian politician they just born to make fool to farmers and poor.