22 October 2020

22 October 2020
 Dr. Mahipal Singh
Rathore

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mahipalrathore
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mahipalrathore (Telegram channel for PDF)
22 October 2020
 20 October – Special session of Punjab LA
• To nullify the possible impact of the three farm acts passed
by the Parliament, the Punjab government passed its own
bills on Tuesday.
• Punjab became the first State in the country to formally
reject the central government’s three agriculture sector
legislations.
• The Legislative assembly also rejected the laws by a
unanimous resolution.

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22 October 2020
 The CENTRAL farm laws
1. The Farmers Produce Trade and Commerce
(Promotion and Facilitation) Act , 2020
2. The Farmers (Empowerment and Protection)
Agreement on Price Assurance and Farm Services
Act, 2020
3. The Essential Commodities (Amendment) Act ,
2020.
22 October 2020
 The Farmers’ Produce Trade and Commerce
(Promotion and Facilitation)
(Special Provisions and Punjab Amendment) Bill, 2020
• Status quo in the state with regard to the APMC Act 2016
• A fee to be levied on traders, or electronic trading and
transaction platforms, for trade and commerce in a trade
area outside the APMC mandis.
• This will disable a key provision in the central laws that seeks
to allow farmers to sell their produce outside the mandis.

22 October 2020
• The Bill seeks to ensure that sale and purchase of wheat or
paddy is not allowed below MSP.

• If any person or company or corporate house compels or

exerts pressure on a farmer to enter into a contract at a price
below MSP, it shall be deemed as an offence punishable
with a prison term of not less than three years and a fine.

22 October 2020
 The Farmers’ (Empowerment and Protection)
Agreement on Price Assurance and Farm Services
(Special Provisions and Punjab Amendment) Bill,
2020
• The Bill makes it mandatory for those entering into contract
farming with farmers to pay the MSP or a price over the MSP.
• Violators face jail terms of three years.
• Sale of wheat and paddy shall be valid only if the seller pays a
price equal to or greater than the MSP.
• This Bill also allows the farmer to approach a civil court in case of
any differences with the buyer of his produce.
22 October 2020
 The Essential Commodities
(Special Provisions and Punjab Amendment) Bill,
2020

This Bill specifies that no punitive action shall be taken against

any person for violating provisions of the central Act, and all
notices issued by the central government under its
provisions shall be deemed suspended.

22 October 2020
 The Code of Civil Procedure (Punjab
Amendment) Bill, 2020
• The Bill provides relief to farmers against attachment
of land up to 2.5 acres.
• The properties of the farmers such as cattle, implements,
cowsheds, etc, would be exempt from attachment,
• The state Bills also provide for prevention of hoarding and
black-marketing of food grains.

22 October 2020
 Rationale
The Punjab government has claimed that the application of
central laws to the state is being changed to

“restore the agricultural safeguards for the farmers through

the regulatory framework of Punjab Agricultural Produce
Markets Act, 1961 to secure and protect the interests and
livelihoods of farmers and farm labourers as also all others
engaged in agriculture and related activities”.

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• All the three Bills underscore the importance of farmers
getting a level playing field in the form of a fair price
guarantee.

• The Bills also point out that agriculture, agricultural markets,

and land is the primary legislative domain of the state.

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 Can the state change the central law?
Entry 33 in the concurrent list

both the state and the Union government can legislate

regarding production, trade, supply and distribution of a
range of foodstuffs and agricultural raw materials.

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22 October 2020
• Under Article 254(2) of the Constitution, a state can make
changes to a central legislation on a subject on
the concurrent list provided its law gets Presidential assent.

• Hence, apart from the Governor, the Punjab government's

new farm Bills need the assent of the President since they
seek to amend laws passed by the central government.

22 October 2020
 Drawbacks of Punjab Farm Bills
• These bills (if they become acts) will discourage or block
private players completely from one of the largest
wheat/paddy producer regions of India.
• These bills cover only two crops.
• Only Politics ? Bound to be rejected by Governor or
President

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