AGRICULTURAL LAWS

An Interpretation of Unawarely Sidetracked

Laws in Various States of India

By

Author
Prasad Pramod Jichkar
[B.A.LL.B. Third Year]

Mob- 9834351383/ 7218757673

June 2020
ABSTRACT
Whenever we come across this word Agriculture, everyone picturized a
different scenario. Most of the people among us directly or indirectly engaged
in discussion or debate regarding this sector on various issues related to Crops,
Minimum Support Price and Political Pessimism for Agriculture but people &
farmers never talks about Agriculture Laws or Unaware about these laws. In the
country where more than 65% of People directly depends on Agriculture and
more than 80% are indirectly depends on agriculture. Only negligible number
of people are aware about Agricultural Laws and Farmers Rights. Here in this
article we are prominently going to discuss about some unenlightened but
important agricultural laws framed by Central Government as Seeds Act,
Insecticides Act, Plant Varieties and Farmers Rights, Agricultural Produce
Grading and Marking etc. Further in this article we are going to study some
important Agri-Laws in few agriculturally dominant states in India as per their
Agri-Geography. Agricultural laws have always been sidetracked by people and
unawareness regarding these laws is the prominent cause for this, Hence the
primary focus of this article is to highlight some very important laws enacted by
central government and respective state government.

INTRODUCTION
In this sector of Agriculture, Productivity plays very important role to conclude
the net income of farmers. Where Agricultural Inputs like Land, Seeds,
Fertilizers, Water etc. needs cash flow. And here the real issue arises as due to
the Unawareness of Agri-Laws farmer choked in Financial & Legal
complication. Every state has their respective agricultural laws based on their
Agri-Geography. Here in this sub-topic of article we are going to discuss some
notable Agri-Laws in Agriculturally dominant states in India.
CENTRAL ACTS
There are some Acts regarding agricultural inputs which are formed by Central
Government hence irrespective of states these acts are applicable to all states in
the country. Very negligible amounts of farmers are known about the laws
regarding insecticides. The risk to the human beings or animal involved and the
safety measures necessary to prevent such risks are written down in
(Insecticides Act 1968). The Manufacture, sale, Storage, Transport and
Distribution of Insecticides with a view to ensure safety to human being or
animals.[1] The committee advice Central Government on the manufacture of
insecticides under Industries (Development and Regulation) Act 1951. Specify
the uses of the classification of the insecticides on the basis of their Toxicity 1
also advise tolerance limits for insecticides residues and establishment of the
minimum intervals between the applications of insecticides and harvest in
respect of different commodities. Insecticide act specify the shell life of
insecticides and suggest colourisation, including colouring matter which may
be mixed with the concentrates of insecticides, particularly those of highly toxic
nature. A high level advisory board ‘Central Insecticide Board’ with 28
members drawn from various fields having expert knowledge of the subject and
Central Laboratory working under the guidelines of this committee.[1] This
laboratory analyze the samples of insecticides and send the report it to any
officer or authority authorized by the Central or State Governments after
determining the efficacy and toxicity of insecticide. Insecticides can be applied
for registration; RC allots a registration number within a period of 12
months[1]. Rules and regulation regarding export and import of insecticides
also elaborated in act. Every pesticides has some expiry date and there are
1
Toxicity- It is the degree to which chemical substances can damage an organism.
provisions for all such stocks then shall be disposed of in an environment
friendly manner as may be specified from time to time by the Central
Government in consultation with the Central Insecticides Board and also after
being segregated and stamped as ‘not for sale’ or ‘not for use’. No person shall
manufacture, storage, or expose for sale or permit the sale or storage of any
insecticide in the same building where any articles consumable by human
beings. All persons who are engaged in the work of handling, dealing, or
otherwise coming in contact with the insecticides during manufacture and
formulation of insecticides or being engaged during spraying operation shall be
examined medically before their employment. Insecticides being an prominent
agricultural input plays very crucial role. Hence this act regarding Insecticides
is very important and notable in the context of Agricultural Laws Farmers work
very hard in their land to boost their income and since a long time farmers were
working in the field of Plant Varieties and Agricultural Research. Now a days
along with the increasing research in plant varieties Central Government has
formed the uniform legislation regarding the Plant Varieties by introducing
Protection of Plant Varieties And Farmers Rights Act,2001. Plant variety
protection provides legal protection of a plant variety to a breeder in the in the
form of Plant Breeder’s rights. Plant Breeder’s Rights are intellectual property
to a breeder of the registered variety.[2] a sui generis system[3], is an attempt
by the Indian Government to recognize and protect the rights of both
commercial plant breeders and farmers in respect of their contribution made in
conserving, improving and making available plant genetic resources for
development of new plant varieties and to encourage the development of new
plant varieties and to encourage the development of new varieties of new plants
varieties. Protection of the plant varieties under the Act accelerates agricultural
development and stimulates investment for research and development for the
development of new plant varieties which in turn facilities the growth of the
seed industry and ensures the availability of high quality seeds and plant in
material to the farmers. But many people thinks about the necessity of
protection for plants varieties so the prominent reason is the Agreement on
TRIPS [4] requires WTO members to introduce an “effective system” for the
protection of plant varieties. Article 27(3) of the TRIPS agreements says
member of countries may exclude Plants and Animals other than micro-
organisms and essentially biological processes for the production of plants and
animals other than non-biological and microbiological processes. However,
Members shall provide for the protection of plant varieties either by Patents or
by an effective sui generis system or by any combination thereof [5]. There are
prominently four types of plant varieties which can be registered under the act.
First is New Varieties, which is not in public domain in India earlier than one
year before the date of filling or outside India, in the case of trees or vines
earlier than six years or in any other case earlier than four years. Another is
Extant Variety which is notified under Seeds Act,1966 or a variety about which
there is common knowledge or a farmer’s variety or any other variety which is
in public domain is considered as an Extant Variety. Next is Farmer’s Variety
which has been traditionally cultivated and evolved by the farmers in their
fields or a variety which is a wild relatives or land race of a variety about which
farmers possess common knowledge. All among these varieties the most
important is Essentially Derived Variety (EDV) which shall be said to be
essentially derived from such initial variety when it is predominantly derived
from such initial variety or from a variety that itself is predominantly derived
from such initial variety while retaining the expression of the essential
characteristics that result from the genotype or combination of genotype of such
initial variety. An EDV conforms to such initial variety that result from the
genotype or combination of genotype of such initial variety. So foe the
registration of any plant variety among all these any person claiming to be the
breeder of the variety; or any successor of the breeder of the variety or any
person being the Assignee or the breeder of the variety in respect of the right to
make such application or any farmer or group of farmers claiming to the
breeder of the variety or any person authorized to make application on behalf of
farmers or university or publicity funded agricultural institution claiming to the
breeder of the variety. The owner of the protected variety has the rights to
produce, sell, market, distribute, import and to export the variety. However, if
breeders variety is essentially derived from a farmers variety, the breeder
cannot give any authorization without the consent of the farmers.

This act also provides following the rights to farmers.

 Right to save, sow, re-sow, exchange, share or sell his farm produce
including seed in the same manner as he was entitled earlier (Seeds for
sale should not be branded).
 Full disclosure of the expected performance of the Seeds or planting
material by the plant breeder. Where they fail to perform in the manner
claimed by the breeder, the farmer may claim compensation from the
plant breeder.
 Reward the farmer “who is engaged in the conservation and prevention
of genetic resources of land races and wild relatives of economic plants
and their improvement through selection and presentation [2].

There is another important law regarding agricultural produce about which

most of the Agripreneurs2 are not aware. This act is related to Grading and

2
Agripreneur- An entrepreneur whose main business is agriculture or agriculture related. (An
Agricultural Entrepreneur)
Marking of agricultural produce. This act has stated guidelines related to
Grading and Marking of the agricultural produce, this includes all the produce
of agriculture or horticulture and all the articles of food or drinks wholly or
partly manufactured from any such produce and fleeces and the skins of
animals [6]. The formal prescription of the grade designation is to fixing the
grade designation to indicate the quality of the respected produce and defining
the quality indicated by every grade designation. After that specifying the grade
designation marks to represent particular grade designation. A person or a body
of persons can mark with a grade designation mark to respected produce in
respect of which such mark has been prescribed or any covering containing or
label attached to any such produce specifying the conditions in respect of any
produce conditions as to the manner of marketing the manner in which the
produce shall be packed also the type of covering to be used and the quantity by
weight, number or otherwise to be included in each covering[6]. Also for the
payment of any expenses incurred in connection with the manufacture or use of
any implement necessary for the reproduction of a grade designation mark or
with the manufacture use of any covering, label marked with a grade
designation mark, with measures for the control of the quality of articles
marked with grade designation marks including testing of samples and
inspection of agricultural produce, with any publicity work carried out to
promote the sale of any class. The confiscation and disposal of produce marked
otherwise than in accordance with the prescribed conditions with a grade
designation mark. This act further gone under amendment in 1986 and that
amended act have some added changes as per the changing of agricultural
circumstances. The prominent provisions were added to the legislation
regarding the Agmark. Agmark is a certification mark that assures conformity
to set of standards approved by Government agency Directorate of Marketing
and Inspection. The present Agmark standards cover quality guidelines for 205
different commodities spanning variety of cereals, pulses, vegetable oils,
essential oils, fruits & vegetables, and semi-processed products like vermicelli
[7]. The term agmark was coined by joining the words ‘Ag’ to mean agriculture
and ‘mark’ for certification mark. This term was introduced originally in bill
presented in Parliament for the Agricultural Produce (Grading and Marking)
Act. In terms of quality inspective grading, this act plays very important role in
the agriculture related business and provide assurance in terms of quality
grading and marking. As India being an agriculture dominant economy and the
agricultural production can directly affect the economy in terms of finance and
employment. So to boost up the agricultural production quality seeds plays very
vital role and the maximum germination of these seeds is important in terms of
production. Hence the need of appropriate legislation related to the Seeds is
fulfilled by Seeds Act. The parliament had passed the Seeds Act 1966 to
provide legal framework around seed certification and make good quality seeds
available to the cultivators. Under this act Seed rules were framed and
systematic Seed Certification started in India. This act provided for
establishment of a Central Seed Committee to advise the states in seed related
matters. It also provided for establishment of Seed Certification Agencies in the
states; Seed certification Boards and State Seed Testing Laboratories. This
seeds legislation has various clauses and this is one of those central agricultural
acts about which the Farmer and Agricultural producer throughout the country
should know to get known to their rights related to seed based problems like
defected seeds, low germinated seeds and many more. It includes seeds of food
crops, oil crops, cotton seeds, seeds of cattle fodder and all types of vegetative
propagating material. Also lays down the rules for establishment of a Central
Seed Committee comprising eight members to advise the Central and State
Governments on matters arising out of the administration and carry out other
functions assigned. It also has provisions for establishing a Central Seed
Laboratory as well as State Seed Laboratory to carry out seed analysis of
notified variety. It empowers the Central Seed Committee to notify any variety
found suitable and empowers the committee to fix the minimum limits of
germination and purity of seed for a variety to be notified as well as for
marking or labelling a seed lot to be sold commercially [8]. Regulation of sale
of seeds of notified varieties by compulsory truthful labeling revealing the true
identity of the variety, germination as well as purity [8]. Penalty or punishment
or both for those who do not comply with the provisions of the act. There are
Punishments for offences committed by companies or anybody corporate. All
who was in charge of, when the time the offence was committed and was
responsible to the company shall be deemed to be guilty of the offence and
punished as per the rules of respected act. But To meet with the current
requirements, the bill needed to be amended. A new bill was introduced in 2004
as Seed Bill 2004 but so far that bill has not seen the light of the day. Hence
Government plans to change existing law to ensure availability of quality seeds
to farmers with a proposed Bill to replace The Seeds Act, 1966 and 2004
amendment. And the revised seeds bill was draft in 2019 as Seeds Bill,2019.
The Bill is aimed at ensuring supply of modern, high quality, cutting edge
seed technologies to the farmers which will help them in enhancing their
productivity and profitability [9]. It is evident that the seed industry has
been at the Centre of the significant advances made in agriculture  in the
last four decades and will continue to do in the years to come. The new
Seeds Bill, 2019 provides for compulsory registration of any kind or variety of
seeds that are sought to be sold and no seed of any kind or variety shall for the
purpose of sowing or planting by any person, be sold unless such kind or
variety is registered. In other words, even hybrids varieties of private
companies will need to be registered, and their seeds would have to meet the
minimum prescribed standards relating to germination, physical and genetic
purity, etc. Breeders would be required to disclose the expected performance of
their registered varieties under given conditions [9]. If the seed of such
registered kind or variety fails to provide the expected performance under such
given conditions, the farmer may claim compensation from the producer,
dealer, distributor or vendor [10].

INTERPRETATION SOME UNENLIGHTENED

LAWS IN AGRICULTURALLY DOMINANT
STATES IN INDIA
ANDHRA PRADESH

Andhra Pradesh being a one the agriculturally dominant state, there are many
legislation are there along with various rules and sanction. In terms of
agricultural produce Cotton is the largest producing crop throughout the state.
Hence the Cotton producing farmers should know the related legislation to
know their rights regarding the farm produce. Like the cotton seed standards in
respect of physical purity, germination, genetic purity and seed health
prescribed in Indian minimum seed certification [11] and standards of BT
protein prescribed by Central Government. The mark or label to indicate that
cotton seed confirms to the minimum limits of physical purity, germination,
genetic purity, seed health and BT protein specified and expected performance
of the seed in given conditions, applicable terms and conditions of Genetic
Engineering Approval Committee for commercial release and other particulars
as may be prescribed with such mark or label as may contain and as claimed by
the seed producer[12]. The person whose name appears on the mark or label
shall be responsible for the accuracy of the information required to appear on
the mark or label so long as the seed is contained in an unopened original
container and within the validity period of germination. In case of genetically
modified organisms or transgenic cotton varieties, in addition to the declaration
required, the label shall contain contents as prescribed by Genetic Engineering
Approval Committee for commercial release[12]. The mark or label containing
the particulars shall appear on each container of cotton seed or on a tag or mark
or label attached to the container in a conspicuous place and on every non-
transparent covering in which that container is packed and shall be legible. The
mark or label shall not contain any statement, claim, design, device, fancy name
or abbreviation which is false or misleading in any particular concerning the
seed contained in the container [12]. Another important agricultural law in the
state is related to Conversion of Agri Land for the Non-Agricultural purpose.
No agricultural land in the State shall be put to non-agricultural purposes,
without the prior payment of conversion tax to government. If the conversion
fee so paid is found to be less than the fee prescribed then a notice shall be
issued by the competent to the applicant within 30 days of the receipt of
application intimating him the deficit amount. The applicant shall pay the
deficit amount indicated in the fifteen days of the receipt of such notice. In case
no intimation is received by the applicant within 30 days about the deficit
payment of conversion fees, it shall be deemed that the amount paid is
sufficient for the purpose. The authority conversion permission requested for
shall either be issued, rejected in full or part by the competent authority within
sixty days after such request is received in the office of the competent authority
or within thirty days after the receipt of the deficit amount as the case may be,
provided that such requests are rejected, the reasons for such rejection shall be
recorded in writing and communicated to the applicant With effect on every
owner or occupier of agriculture land shall have to pay a conversion fee for
non-agricultural purposes, at the rate of 3% the basic value of the land in areas
as may be notified by the Government from time to time.  If any agricultural
land has been put to non-agricultural purpose without payment of conversion
tax, the land shall be deemed to have been converted into non-agricultural
purpose.[13]

HARYANA
In the state of Haryana most of the farmers are marginal land holdings. Hence
the needed cash flow for Hectares of land is important. So most of the farmers
takes debt from various financial institution under crop loans. Every debt,
together with any interest payable thereon, by an agricultural laborer, a rural
artisan, or a marginal farmer [14], whose annual household income does not
exceed two thousand and four hundred rupees, shall be deemed to be wholly
discharged. Debt owed to any person by an agricultural laborer, a rural artisan
or a marginal farmer[14], whose annual household income exceeds two
thousand and four hundred rupees and a small farmer also shall be wholly
discharged only if he in the discharge of his debt, paid a sum exceeding or
equivalent to double the amount of the debt at any time and he in the discharge
of his debt, pays, a sum which, together with any sum already paid in the
discharge of such debt, is equivalent to double the amount of the debt and every
property pledged or mortgaged by a debtor whose debt is deemed to be
discharged, shall stand released in his favor when such debt is deemed to be
discharged and the creditor shall, return the same to the debtor. Here the interest
payable on the debt shall be calculated at the rate applicable to debt under the
law, custom, contract or at a rate of 6% per annum whichever is less than credit
shall be given for all sums paid or credited first towards outstanding interest
and the balance, if any, shall be credited towards repayment of the principal.
The amount of principal and the interest outstanding will be considered as the
net outstanding debt [14].

MADHYA PRADESH

Being a central state in the country MP’s Agricultural Sector is very developed
in terms of productivity. Hence there are many Agricultural laws to lay down
the legal rules and guidelines. For the development of any state, their Financial
Institution plays very vital role, hence to boost up the cash flow and for easing
the cash availability, the state brought the legal rules for Sahakari Krishi and
Gramin Vikas Bank regarding Debentures, Bonds, Loans, Deposits, Donations
and Grants [15]. There are some rules for debenture and state development
bank, here with permission of the State Government and the trustee the State
Development Bank may issue debenture of one or more denominations for
particular period and at such rates of interest as it may deem expedient against
one or more securities held or partly held or partly to be acquired or other assets
taken by it and other assets and securities of District Development Bank
transferred[15]. The purpose of providing loans to a company or any other body
corporate established, registered or constituted and approved for that purpose
by the State Government on the strength of such government guarantee and
with or without other securities and other assets, for such periods as it may
deem the State Development Bank and District Development Banks to advance
loans for the various purposes agricultural and rural development and such
other purposes for which refinance facilities are available from the National
Bank. For the purpose of this section ‘Agricultural and Rural Development
purposes’ means any work, construction and activity which aids agricultural
and rural development and in particular includes the following construction and
repair of wells including tube wells, borewells and dug-cum-borewells, tanks
and other works for storage, supply or distribution of water for the purpose of
agriculture or for use of men and cattle employed in agriculture. Also, for
bunding and similar improvements, reclamation, clearance and enclosure or
permanent improvement of land for agricultural purposes like horticulture,
pisciculture, poultry, animal husbandry and dairy farming, sheep, goat rearing,
piggery. Purchase of plough-bullock, purchase and repair of oil engines,
pumping sets, and electrical motors for any of the purposes mentioned in the
respective law of sahakari Krishi and Gramin Vikas Bank Abhiyan.

MAHARASHTRA

Maharashtra is economically strongest state in the country and contributed the

highest share in GDP of the Country. Being the economically strongest state
Maharashtra has developed agriculture sector and throughout the developing
process, the Market Committees plays very important role at ground level.
There is most important act related to Maharashtra agricultural produce
marketing, in this act there are various guidelines and rules were stated and
every farmer should know them. There are provisions for the Establishment of
National Integrated Produce Market. Marketing fruits and vegetables in respect
of Mumbai and its surrounding area in the State, a National Integrated Produce
Market owned and managed as an autonomous entity by the National Dairy
Development Board or any other recognized body corporate, Government
Corporation, Company or through any organization set up by it or in
conjunction with farmer’s association establish a National Integrated Produce
Market of fruits and vegetables in any area. Also set up by itself or finance,
assist or support farmers and farmers association to set up collection Centre’s
by whatever name called at various places in the State whether within or
outside the area aforesaid to collect, assemble, sort, grade, process, pack, store
or transport, fruits and vegetables and to provide, market information and to
carry out such other activities[16]. Further any person can establish their private
or farmer-consumer markets, here any person, who agrees or undertakes to
develop the prescribed infrastructure, for establishing farmer-consumer market.
Any person who desires to purchase agricultural produce directly from the
agriculturist or to establish a private market or farmer-consumer market, in one
or more than one market area can establish the markets with prior application to
director of Market Committee. If any person wants to start the E-trading for the
sale of Agri-produce the avail the platform. Any person desirous of establishing
an E-trading platform can apply. The E-trading platform managed and operated
by a person or the State Government or the Government Agencies, shall
provide all infrastructures and service connected to E-trading. As being a apex
body Market Committee have some power like the Market Committee in this
behalf can use any place in the market area for the marketing of the declared
agricultural produce, or operate in the market area or in any market therein as a
trader, commission agent, broker, processor, weighman, measurer, surveyor,
warehouseman or in any other capacity in relation to the marketing of the
declared agricultural produce[16]. For every market area, there shall be
established by the State Government Market Committee consisting of the
Chairman, a Vice-Chairman and other members and different Market
Committees may be established for regulating the marketing of different kinds
of agricultural produce for the same market area [16].

PUNJAB

Punjab is most developed and prosperous state in the sector of agriculture and
the prominent reason behind this agricultural prosperity is the well planned
Irrigation system throughout the state. Hence there is one very old law related
to Minor Canals exists in the state. Any natural channel, lake or other collection
of water, no person shall, without permission previously obtained can construct
a canal intended to be fed from any such channel, lake or other collection of
water [17]. Person desiring to construct a canal intended may apply, in writing,
to the Collector, for the permission prescribed. When a source of supply has
been notified by the Government that the construction of a canal to be fed
therefrom will be advantageous.

KERALA

Many changes have taken place recently in the tax laws of the agricultural
sector. Here we make an attempt to assess the impact of these changes on the
performance of agricultural taxes in Kerala. The most important change was the
introduction of compounding in the Agricultural Income tax. Agricultural
Income Tax Act 1991 permitted the cultivators to opt for compounding for the
purpose of Agricultural Income Tax. In that case tax liability of the cultivators
would be assessed on the basis of the size of holding and crop cultivated.
Assesse3 is defined to be a person by whom any tax or any other sum of money
is payable. Any person who holds landed property within the state extending to
not more than twenty hectares and deriving agricultural income will be
permitted to compound the agricultural income and pay tax as per the given
rates. The permission once granted will be in force for 3 years unless opted
otherwise by the assesse [17]. No tax is payable by any crop on the first 3
hectares of cultivation. No tax payable on the replanted area till the plants in

3
Assessee- A person or group that is being assessed, especially in order to decide how much
tax they must pay.
this area starts yielding. When there is change in the extent of land during the
previous year the maximum extent of land held for not less than 180 days
during the previous year shall be deemed to be the extent of land held during
the previous year. Agricultural Income Tax Officer has to satisfy himself and
then permit the application for deductions. People who were compounding their
income can re-opt to the income based tax system under certain conditions[17].
REFERENCES

1. Insecticides Act, 1968.

2. Protection Of Plant Varieties And Farmer’s Rights Act, 2001.
3. www.insightonindia.com.
4. www.wikipedia.org.
5. www.wto.org
6. Agricultural Produce (Grading and Marking) Act, 1937.
7. Agricultural Produce (Grading and Marking) Act, 1937 Amendment
1986.
8. Seeds Act, 1966.
9. Seeds Act (Amendment to 2004) Act, 2019.
10. The Consumer Protection Act, 1986.
11. Sec 6 (a) Seeds Act, 1966.
12. Andhra Pradesh Cotton Seeds Act, 2007.
13. Andhra Pradesh Land (Conversion for Non-Agricultural Purposes) Act,
2005.
14. Haryana Relief of Agricultural Indebtness Act, 1976.
15. Madhya Pradesh Sahakari Aur Gramin Vikas Bank Abhiyan, 1999.
16. Maharashtra Agricultural Produce Marketing (Development And
Regulation) Act, 1963.
17. Johnson Thomas “Agricultural Taxation In Kerala”:- A Study Of The
Performance And Cost Effectiveness.