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| Why Farmers Protest For New Farm Bill |
Why farmers in Punjab, Haryana protest on new Farm Bill. Let's understand what is this bill about what is advantage and disadvantage.
The protest is for the three farm bill passed in Rajya Sabha through voice vote. All three bill is waiting for the president sign to become Act.
Now, what is three-bill let's understand One by one?
- The Farmers Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020.
- The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020.
- Essential Commodities (Amendment) Bill, 2020.
First Bill.
According to the APMC Act, 1967 farmers sell farm produce at the local APMC market. With the help of licensed middlemen who would buy from farmers at prices set by the auction.
Then middlemen sell to institutional buyers like retailers or big traders in the market.
Middlemen have a storage facility in APMC, Labours, Accountant.
First Bill Changes
Farmers can drop middlemen and sell to institutional buyers at prices agreed between them.
Farmers can sell there crop any part of India without restriction. Consider if Tamil Nadu is not giving a good price for the crop and Karnataka is giving a good rate. Then farmer can sell their crop in Karnataka without any restriction.
Fear Of Farmers
Farmers worried because they have to bargain with large and corporate institutional buyers. Institutional buyers have more power and resources than small or marginal farmers.
About 85% of farmers own less than two hectares of land and they have difficulty in bargaining with large buyers.
This leads to the ultimate closure of APMC Mandi which again no tax for state government.
Labours and other employees will lose jobs, some of them do not know any other work other than this.
No Farmers go to another state to sell there crop as the cost of the transport will be more.
Second Bill.
This law will allow farmers to enter into agreements with large buyers to produce a crop for a pre-agreed price.
Fear Of Farmers
Before this Bill MSP was support to farmers from the government. Because the government will buy the crop at Minimum Support Price if crops price decreases. But after this bill Farmers worried about MSP will be removed.
PM has stated there will be no MSP removal but has it's not in the bill it has become a point of notice.
Large scale buyers are a businessman who can change according to time. This is common in business, in fact, they also have to see a profit to run the corporate section. Because of this farmers will be getting less price after some years.
Also SEE: The US Reports China Attacked Indian Satellite Communications.
Third Bill
Have you ever wondered what if any middle man accumulate only without selling? Yes, you start to get scarcity of that particular product and prices to go high.
To counter this Govt Brough Essential Commodities law and told middle or any buyers to limit the stockpile up.
This issue's price inflation in the market.
Now in this new bill proposes to allow economic agents to stock food articles without the fear of prosecuted for hoarding.
Fear Of Farmers
Unlimited stocking can lead to artificial price fluctuations and low prices for farmers after harvest.
The company can store the unlimited harvest of the first year and in the second year they may buy for a low price.
Conclusion
Hope our Government thinks about all these problems of farmers again and come out with other bills.
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