An Overview on Farm Bills, 2020

INTRODUCTION On 5 June, the Government of India promulgated three ordinances relating to agricultural marketing that represented a fundamental reorientation of the existing regulatory framework. These Bills were introduced by Mr. Narendra Singh Tomer, the Minister of Agriculture and Farmers Welfare. The bill was passed by lok sabha and then Raj Sabha on 20 sep, 2020. Accent was given by President Ram Nath Kovind on 24th Sept, 2020.[1]

These are 3 bills -

  • The farmers produce trade and commerce (promotion and facilitation) bill, 2020.[2]

  • The farmers (empowerment and protection) agreement on price assurance and farm service bill.[3]

  • The essential commodities (amendment) bill, 2020.[4]

1. The essential commodities (amendment) bill, 2020- In essential commodities amendment bill dealer can store staple (raw material) or crop consistent with their wish (excluded the condition of emergency or war). In 1955 to 2020 government policymakers make a law which nobody cannot be store any essential commodities and those who store will be prosecuted or otherwise the license should be cancelled but after these amendments the dealer or agents’ lawfully conserved the material till the price should at high in the market. When the demand is high and supply is less so the cost of raw material which is oblivious seeks high. It should be understood that farmer can't store their material in huge amount only few farmer have capable to store because staple or other material need proper care and large amount or money should be spent.[5 ]They have no space for store so the farmer transfer raw material to factory these Factories directly consulted to their respective agency. Agency of any essential commodities can store their material consistent with their wish No other action should be taken against this storage.[6]

2. The farmers (empowerment and protection) agreement on price assurance and farm service bill, 2020. This is one of the main features of this act. According to Sec3(1) of the act, the farming agreement may provide information relating to terms and conditions for supply of farming produce including the time of supply, quality, grade, standards, price and other matters. What is farmers (empowerment and protection) agreement on price assurance and farm service bill? In Contact farming, the Framer contract to industrialist before cultivated their crops. Price is fixed before farming. These acts have both boon and curse.[7] The farmers sell their raw material on the fixed rate which is pre deal between two parties. If the worth of fabric amount to twenty after a couple of months the worth tends to 15-16 then farmers need to bare losses in huge amount which is extremely unfortunate for the farmers, but the farmers pre deal before growing the group then despite from the particular rate of the market the company should need to pay that amount which is fixed irrespective the market rate.[8] But these act also required amend because what if rate of staple increase in market? If the Farmers sell the fabric directly in market without giving the material to the company then who will settle dispute between them. If the corporate (company) closed. Then who will buy the raw material from farmers? If the company intentionally not purchase staple from farmers or demanded the low price after harvest then the farmer suffer huge loss. If Agreement between two parties is misbalance then district magistrate solve these dispute but the company deal with the magistrate in the judgment should be given to high power party that is the company.

3. The farmers produce trade and commerce (promotion and facilitation) bill, 2020. In these bill the farmers can sold the merchandise to mandi (APMC) or any territory of India. NSSO give the report of employment also farmers which supply their staple to mandi. Consistent with NSSO all the agriculture but the farmers undergo only 6% in mandi. Rest 94% farmers visited small shop, road, or etc. By these bill farmers can sell material to outside but it seems that farmers already using these method. But yes these could also be beneficial to them via online mode. Consistent with government the center man can't be dominating against farmers.[9] After the independence the condition of farmers is worse they took money from the business man on high interest latter they do not have money to return them. Business man cut their crop went off with their crop, so farmer neither survive their family nor pay the loan amount after these conditions the government took out these matters and for the advantage of the farmers make agriculture produces marketing committee (APMC). Middle man (contractor, bepari) purchased the staple from farmers at 2.5% but actual market rate.[10]

MSP (minimum support price) applied by commission of agriculture cost and price (CACP) work under FCI. BJP government purchase quite 30times of MSP higher price than congress government National food security act 2013 in every ration card cost of wheat Rs. 2 and rice Rs 3 is fixed. Santa committee MSP is extra burden for our economic. If government Pardon the loan of 1.5 thousands lakhs of bank (Nirav modi) is that non performing act isn't burden of additional economic isn't? It's time to use modern technology for storage of grain.[11]


From 1950s to 2020 the income of farmers increase 21-22 times But the income of state employee increase 180times now we will understand suicide rate of farmers and how much they suffer. Why government shouldn't make law that nobody may purchase staple or crop on but Minimum Retail Price from the farmer and if someone want to get but minimum price should be punishable. In June, Haryana farmers 6rs of maize sale by the farmers but MSP fixed by government Rs18.5 it's show the Failure of state policy In 1950s the maize is sell by them at Rs 6/ kg is that very same scenario in 1950 and 2020? Then compare the salaries of state. Government should apply minimum rate price for farmers irrespective the very fact the government haven't any sufficient place for storage. FCI having a not huge space then its very government duties to supply space for storage. It isn't farmers fault in India large space is canopy for parliament, minster house etc. is that no space for the storage of staple.[12] MSP should be fixed and if anyone purchase low rate then it's should be punishable Government should have use technology name remote sensing satellite by using this they know which metal like gold, potassium, silver to monitoring which crop should be cultivated and one application should provide for the for all the farmers to understand the speed of crop at that area (i)price of crop at that area (ii) which crop should be better for that land and government should need to maintain a knowledge during which state the precise crop should more grow and make balance of quantity of crop in India. (iii) Climate the rain in this year is low, high or moderate.

References: -

1 The Hindu Explains | Who gains and who loses from the farm Bills? - The Hindu, , bills/article32705820.ece (last visited Feb 25, 2021).

2 Parliament passes The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020, , (last visited Feb 25, 2021).

3 THE FARMERS (EMPOWERMENT AND PROTECTION) AGREEMENTON PRICE ASSURANCEAND FARM SERVICES ACT, 2020, (2020), on-price-assurance-and-farm-services-act-2020/ (last visited Feb 25, 2021).

4 THE ESSENTIAL COMMODITIES (AMENDMENT) ORDINANCE, 2020 | Department of Consumer Affairs | Ministry of Consumer Affairs Food and Public Distribution | Government of India, , (last visited Feb 25, 2021).

5 Redefining essential items: Why it was needed, and who it will impact, , THE INDIAN EXPRESS (2020), (last visited Feb 25, 2021).

6 Parliament passes amendments to essential commodities law, THE HINDU, September 22, 2020, law/article32667141.ece (last visited Feb 25, 2021).

7 Agricultural reforms: Here’s a look at key measures in the legislation passed in Lok Sabha - Landmark agricultural reforms, , THE ECONOMIC TIMES , reforms-heres-a-look-at-key-measures-in-the-legislation-passed-in-lok-sabha/farmers-empowerment-protection- agreement-of-price-assurance-farm-services-bill/slideshow/78201770.cms (last visited Feb 25, 2021).

8 Devika Sharma, Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 | Will farming agreement help in eliminating intermediaries? Decoded, SCC BLOG (2020), assurance-and-farm-services-act-2020-will-farming-agreement-help-in-eliminating-intermediaries-decoded/ (last visited Feb 25, 2021).

9 The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 - Agricultural reforms: Here’s a look at key measures in the legislation passed in Lok Sabha | The Economic Times, measures-in-the-legislation-passed-in-lok-sabha/the-farmers-produce-trade-and-commerce-promotion-and- facilitation-bill-2020/slideshow/78201772.cms (last visited Feb 26, 2021).

10 Id.

11 The Farming Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 | RajRAS - Rajasthan RAS, , (last visited Feb 26, 2021).

12 Farm bill 2020: What is Farmers bill and and why farmers are protesting | India News - Times of India, , protesting/articleshow/79609234.cms (last visited Feb 26, 2021).

~ Priya Ranjan

3rd Semester

ICFAI Law college

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