Farm Laws 2020 Withdrawn: What PM Modi said, What were Farm Laws

Farm Laws Withdrawn 19th Nov | November 2022: The withdrawal of the legislation will be finalised within a month, according to the constitutional process. Their administration is dedicated to the well-being of farmers, particularly small-scale farmers. We are devoted to providing them with the best possible service. We enacted agriculture legislation with the best of intentions.

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Farm laws Withdrawn: What PM Modi said?

According to Prime Minister Narendra Modi (PM Modi) , three farm regulations were introduced last year to liberalise India’s agricultural markets, who called on demonstrators to return to their homes. Modi also urged protesters to return to their homes.

The three rules, implemented in September 2020, permitted farmers to sell their goods directly to large purchasers outside of government-regulated wholesale marketplaces rather than through wholesale markets. According to the administration, this would free farmers from their shackles and obtain higher prices.

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Since then, farmers have camped out on critical roads leading to Delhi in what has become India’s longest-running farmer’s protest against the government, demonstrating their opposition to the rules.

Farmers’ Protests will mark the end of its one-year anniversary on November 26 | This year, on November 26, the farmers’ demonstrations would have commemorated the first anniversary of their non-stop agitation against the Centre’s three agricultural legislations. For this reason, the Samyukt Kisan Morcha (SKM) has planned to host statewide protests on November 26 to commemorate the milestone.

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A general body meeting of the SKM had requested that farmers from Punjab, Rajasthan, Haryana, and Uttar Pradesh congregate in huge numbers on the day in question near the boundaries of the national capital.

“Three farm laws were brought in specially to support small farmers. So that the get more options and better price for their produce. Every farmer in the country, kisan organisations welcomed farm laws, I thank all of them today. We are all in for supporting small farmers, for their progress our intent was pure, but we could not convicne some farmers.

We tried our best to explain these laws to these farmers. we spoke, we discussed, we tried to convince them. Govt was even ready to re-work these farm laws. Lots happened in two years. Today i apologise with if some farmers did not understand what we wanted to do through farm laws.”

Narendra Modi, PM (India)
Farm Bills passed in 2020: Press Release 

What were Farm Law: Key highlights

Farm Bill 1

Farmer’s Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
This legislation permits farmers to trade their agricultural goods outside the physical marketplaces designated under various state Agricultural Produce Marketing Committee laws (APMC acts) (APMC acts). Also known as the ‘APMC Bypass Bill’, it will overrule all the state-level APMC acts.

  • Promotes barrier-free intra-state and inter-state commerce of farmer’s products.
  • Proposes an electronic trading platform for direct and online trade of produce. Entities that can develop such platforms include businesses, partnership firms, or organisations.
  • Allows farmers the ability to trade anyplace outside state-notified APMC marketplaces, which includes enabling trading at farm gates, warehouses, cold storages, etc.
  • Prohibits state governments or APMCs from levying taxes, cess, or any other charge on agricultural output.

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Farm Bill 2

Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020

  • The legislation intends to offer farmers a framework to engage in contract farming, where producers can enter into a direct arrangement with a buyer (before sowing season) to sell the output to them at pre-determined pricing.
  • Entities that may establish agreements with farmers to acquire agricultural goods are described as “sponsors” and might include individuals, businesses, partnership firms, limited liability organisations, and societies.
  • The statute permits for setting up agricultural agreements between farmers and sponsors. Any other parties participating in the transaction (such aggregators) will be disclosed in the contract. State governments can create registration authority to provide for electronic register of farming agreements.
  • Agreements can encompass mutually negotiated agreements between farmers and sponsors, and the terms can address supply, quality, standards, pricing, and farm services. These include delivery of seeds, feed, fodder, agrochemicals, machinery and technology, non-chemical agro-inputs, and other farming inputs.
  • Agreements must have a minimum term of one agricultural season or one production cycle of livestock. The maximum time might be five years. For production cycles exceeding five years, the agreement length can be mutually chosen by the farmer and sponsor.
  • The purchase price of the farmed produce—including the techniques of establishing price—may be mentioned in the agreement. If the price is susceptible to adjustments, the agreement must specify an actual cost to be paid, and explicit references for any additional sums the farmer may earn, such as bonus or premium.
  • There is no mention of minimum support price (MSP) that purchasers need to provide to farmers.
  • Either party may do delivery of farmers’ produce within the specified time range. Sponsors are required to examine the quality of products as per the agreement. Otherwise, they will be assumed to have inspected the product and accepted the delivery within the given period.
  • In the case of seed production, sponsors are expected to pay at least two-thirds of the agreed sum at the time of delivery. The remaining balance is payable 30 days after delivery. In all other circumstances, a sales receipt must be given. The total price is due at delivery.
  • Any state laws intended at controlling the sale and purchase of farming produce do not apply to output created under farming agreements. Hence there is no opportunity for states to impose MSPs on such goods.
  • Essential Commodities Act 1955 stock-limit obligations are also exempted by such agreements. Stock limits can prevent agricultural produce hoarding.
  • The Conciliation board, magistrate, and appellate authority are all included in the three-tiered conflict resolution procedure.

Farm Bill 3

Essential Commodities (Amendment) Act, 2020

  • Acting as a supplement to the Essential Commodities Act of 1955, this legislation limits federal authority over certain vital commodities.
  • Cereals, legumes, oilseeds, edible oils, onions, and potatoes are no longer considered essential commodities due to the legislation.
  • Only in extreme situations can the government impose stock holding restrictions and regulate the pricing of the goods as mentioned above under the Essential Commodities, 1955. Some of the most devastating natural disasters are war, starvation, and a price increase out of this world.
  • Farming produces stock restrictions will be depending on the growth in market prices. If the retail price of horticulture produce rises by 100% and the retail price of non-perishable agricultural food goods rise by 50%, they may be imposed. Whether the price has increased in the last twelve months or the last five years, it must be compared to the previous year’s average retail price.
  • The legislation attempts to alleviate private investors’ concerns about the government’s impact on their businesses.
  • The private sector and foreign direct investment in agricultural infrastructure can be encouraged by allowing farmers to produce, store and distribute their goods.

Farm laws: What was triggering the farmers’ discontent?

Fearing that these Bills will serve as a platform for the government (at the Center) to replace or abolish the otherwise stable support system in their states, farmers in Uttar Pradesh, Punjab, and Haryana are angered by their substance.

They fear that the MSP guarantee, which has been their safety net since the Green Revolution of the 1960s, would be snatched away from them under the pretence of providing farmers with a more significant playing ground and better platforms for their businesses.

State-run agriculture in certain regions has resulted in high-quality procurement infrastructure. Farmer productivity is boosted when food is purchased from the Food Corporation of India at the MSP guaranteed to them before each harvest.

More than twenty-three agricultural products are eligible for MSPs. Governments, on the other hand, usually buy rice and wheat.

Agricultural producers are concerned about the latest law because they feel it would destroy the government procurement process and the MSP. Because Punjab and Haryana are home to the majority of protesters. They are the primary beneficiaries of this safety net since they are the most vulnerable.