Explained: Point-by-point, why farmers still oppose the

Centre’s proposals on farm laws

indianexpress.com/article/explained/government-farmer-talks-deadlock-explained-7106698

January 30, 2021

At the protest Singhu border where farmers are protesting against the farm laws, in New
Delhi on Tuesday. (Express Photo: Abhinav Saha)
Farmer unions lost no time in rejecting the amendments proposed by the Union
government to the current farm laws. BKU (Dakuanda) general secretary Jagmohan Singh
Patiala explains point-by-point why farmers are objecting to Centre’s offer.

Centre’s proposal: State governments can impose fee/cess on the private mandis

Farmers’ objection: “Creation of private mandis along with the state-run Agriculture
Produce Market Committees (APMC) will push all agriculture businesses towards private
markets. The result will be the end of government markets and intermediary (commission
agent) systems as well as APMC systems. After that only big traders and giant companies
will operate in the markets and procure farm produce at incidental prices. The
government has proposed that there will be uniform policy of taxes, fee, and cess both for
government and private markets. But the governments would deliberately delay
procurement as in case of paddy and turn the public markets inefficient and redundant.”

Centre’s proposal: Written assurance from government for the continuation of the
existing MSP system

Farmers’ objection: “We are not only apprehensive but fully convinced that the new
agricultural Acts are brought to dismantle APMCs. Therefore, we are demanding that the
Union government should employ a comprehensive Act on MSP for the whole country
and for all crops. But the government is dragging its feet to bring legislation on this issue
and only talking for a written assurance, which is not a legal document and has no
guarantee. That’s why farmers have rejected the government proposal of written
assurance and insisted on repeal of these anti-farmers Acts.”

Centre’s proposal: State governments can register traders to regulate them

Farmers’ objection: “The present farm laws have no provision to regulate the traders.
These Acts give permission to any PAN cardholder to procure grains from the markets at
wishful prices and indulge in hoarding. Instead of making provisions of registration to
regulate the traders, the Central is trying to pass the buck to state governments to regulate
the traders. So, the Centre is not ready to take any responsibility on this issue. This is also
being proposed under the pressures of farmer organisations.”

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Centre’s proposal: Under the contract farming law, farmers will have the alternative to
approach the court and their land will be safe as no loan will be given on farmers’ land
and their buildings by mortgaging it.

Farmers’ objection: “Farm outfits are apprehensive about grabbing the farmers’ land
by the large corporations under the contract farming. The Union government has put a
proposal to allay the fears of farmers by saying that there will be no sale, lease, and
transfer of land during the period of contract agreement. But the history of contract
farming has many examples of non-payment by the companies making various excuses
like substandard produce. It has happened in the case of sugarcane where payments were
held for many years or cases of non-procurement making excuses of poor quality. It has
pushed the farmers into a debt trap. In such cases farmers are unable to repay the loans
and have no option other than to sell/lose their lands. The contract farming has resulted
in displacing and destroying the farmers all over the world. Even in the USA, where huge

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subsidies are given for the agriculture sector the farmers are forced to commit suicides.”
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Centre’s proposal: Power Bill 2020 is only a draft open for discussion

Farmers’ objection: “The Union government wants to control the power sector by
taking it from the jurisdiction of states. It wants to discontinue the subsidies to farmers.
The WTO has given repeated instructions to Indian government to discontinue the
subsidies. Therefore the Modi government wants to bring the power sector under the
central control. The farmers are opposing this move. The government is proposing to
exclude subsidies from this Bill and saying that power subsidy will be transferred to
farmers in cash, which is practically not possible when there are a majority of small and
marginal farmers who cannot pay their power bills first and then to avail subsidy.”

Centre’s proposal: Willing to amend law on controlling NCR pollution

Farmers’ objection: “Union government thinks that stubble burning of paddy is

responsible for pollution in Delhi and so they have enacted a legislation of stringent
punishments and heavy fines up to Rs 1 crore for the alleged violators. Now under the
pressure of farmer organisations the government is proposing for amendments. This law
is just to harass the poor and small farmers.

The proposed amendments have nothing to offer and farmer organisations are
determined to continue the united struggle till the repeal of these Acts.”

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