Post-independence Green revolution brought huge spike in agriculture produce especially in North India(Punjab,Haryana and UP).But the problem of farmer exploitation by traders still prevailed. In response to this, State govt came out with APMC(Mandi System) Act to provide the platform for the farmers to sell their produce.
License system for commission agents(Artihyas) and traders which build the confidence of farmers in System. It ensures the payment of farmer produce.
Issues with APMCs:
· Commission Agents rather then facilitating the farmers, Helps the traders to buy the produce at lower price by pointing out the defects.
· High Margin of Commission Agents.
· Debt trap(High interest money landing for input cost)
Government Solution by Farmers Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020
· It will allow the traders(PAN Card Holder) and farmers to trade the produce outside the APMC.
Analysis:
· It will weaken the APMC System.
· Huge blow to Farmer converted Aartihyas(Agents).
· Reduce the govt revenue from market fee.
· Payment security risk of farmers.
· Due to huge supply of produce at time of harvest and low demand, prices of crop will fall drastically
o MSP must be stand to rescue farmer.
o Storage house should be build by govt for farmer produce.
o If above things implemented then only farmer can get advantage of bill otherwise it is only going to help the Reliance and Adani groups which are building the Agriculture logistics houses.
The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020 is introduced to facilitate the Contract Farming(A contract will be signed between trader/exporter/food processer and farmer before the crop sowing).
Analysis:o It is going to help only those farmers which has large chunk of land with them.
o Small farmers by associating with panchayat must form cooperative societies so that they can contract with the party and have negotiation in their favour.
The Essential Commodities (Amendment) Ordinance, 2020 will allow the farmers, traders and other entities to store the produce without any cap.
Why farmers only from Haryana ,Punjab and Western UP are protesting:
o Only 6% farmers in India are able to sell their produce at MSP(Mostly from these states).
o All states have organised APMCs.
o Bhariya Kisan Sangh and Congress are strong in this region.
o Mostly Aarithis(Commission Agents) are converted farmers who now engaged in APMCs
All these bills are not outrightly against the farmers but government needs to bring awareness and assurance of MSP.As the bills passed from the both houses let’s see whether these will bring same changes as in 1991 LPG reforms.
