RURAL AND AGRICULTURAL

MARKETING

NAME : R.V.GOKULKUMAR

REGISTRATION NO : P03HB22M015209

SPECIALISATION : MARKETING

BATCH: 2022-2024

SEMESTER: 3rd

ASSIGNMENT ON: FARMER PROTEST 2024

SUBMITTED ON: 04/03/2024

SUBMITTED TO: DR . RAJINI GUPTA

 THE SIMMERING FIELDS: A LOOK AT THE ONGOING
FARMER PROTEST IN DELHI

Overview of the Ongoing Farmer Protest in Delhi

The ongoing farmer protest in Delhi has emerged as a significant movement, drawing national
and international attention due to its profound impact on Indian agriculture and society. At the
heart of the protest are the concerns surrounding recent agricultural reforms, specifically the
contentious farm laws implemented by the Indian government in 2020.

BACKGROUND

India has a history of farmer protests rooted in issues such as inadequate support mechanisms,
low crop prices, and overall agrarian distress. However, the current agitation gained momentum
with the introduction of three pivotal agricultural laws: the Farmers' Produce Trade and
Commerce (Promotion and Facilitation) Act, the Farmers (Empowerment and Protection)
Agreement on Price Assurance and Farm Services Act, and the Essential Commodities
(Amendment) Act.

INTRODUCTION

The Indian agricultural landscape is currently witnessing a renewed wave of farmer protests
centered in Delhi. This agitation, though not the first of its kind, holds immense significance
for the nation's food security, economic stability, and social fabric. This ten-page overview
delves into the history of farmer movements, the current protest's causes, the controversial farm
laws, the stakeholders involved, and potential solutions.

A LEGACY OF DISCONTENT
Historical Context:

Farmer protests in India have a long history, with grievances rooted in issues like inadequate
Minimum Support Price (MSP), rising input costs, and mounting debt. Key events like the
Green Revolution of the 1960s, which brought temporary prosperity, also led to environmental
degradation and regional imbalances. Policy decisions like the National Policy on Agriculture
(2000) attempted reforms but failed to address core issues. The passing of the three farm laws
in 2020 became the tipping point for the current agitation.

ROOTS OF THE CURRENT DISCONTENT

The Ongoing Farmer Protest Is Fueled By A Multitude Of Factors:

• Farm Laws: The three farm acts - The Farmers' Produce Trade and Commerce
(Promotion and Facilitation) Act, 2020; The Farmers (Empowerment and Protection)
Agreement on Price Assurance and Farm Services Act, 2020; and The Essential
Commodities (Amendment) Act, 2020 - aimed to liberalize the agricultural sector.
However, farmers fear these reforms will weaken the existing MSP system, lead to
corporate exploitation, and dismantle the mandi system (regulated markets).
• Economic Challenges: Declining crop prices, rising input costs due to factors like
fuel price hikes, and mounting farm debt have squeezed farmer incomes, pushing them
towards desperation.
• Sociopolitical Dynamics: The protest has also gained momentum due to concerns
about the future of small and marginal farmers, potential job losses in the agricultural
sector, and a perceived lack of government support for their livelihoods.
THE CONTENTIOUS FARM LAWS: A TWO-SIDED COIN

The Farm Laws, Designed To Improve Market Access And Efficiency, Had
These Intended Benefits:

• Freer Market: Eliminating restrictions on inter-state and intra-state trade in

agricultural produce was expected to create a more competitive market with potentially
higher prices for farmers.
• Direct Contracts: The laws allowed for contract farming agreements with private
companies, offering farmers the potential for better returns.
• Reduced Regulation: Deregulation of essential commodities like cereals, pulses, and
edible oils aimed to create a more efficient market by allowing private players to hold
stocks freely.

However, farmers have strong counter-arguments:

 • Weakened MSP: They fear the government will eventually withdraw from MSP
procurement, leaving them vulnerable to price fluctuations in a deregulated market.
• Corporate Monopoly: Farmers perceive the laws as favoring large corporations who
might dictate prices and exploit their bargaining power.
• Erosion of Mandi System: The existing mandi system provides a safety net with
assured MSP. Farmers worry the new laws will lead to the decline of mandis, leaving
them with fewer options.
STAKEHOLDERS IN THE AGITATION: A WEB OF INTERESTS
• Farmers: Standing at the forefront, they demand the repeal of the farm laws, legal
guarantee of MSP, loan waivers, and better social security.
• Government: The government maintains the reforms are beneficial and aims to find a
middle ground through negotiations.
• Agricultural Experts: Some experts support the reforms' potential for market
efficiency, while others advocate for amendments to address farmer concerns.
• Political Parties: Opposition parties support the farmers' movement, hoping to gain
political mileage, while the ruling party seeks to quell the protests.
• General Public: The public largely empathizes with farmers' plight but may also be
concerned about potential food price inflation due to the protests.
TACTICS AND STRATEGIES: RAISING THEIR VOICE

Farmers have employed various peaceful tactics to press their demands:

• Sit-in Protests: Setting up camps at Delhi borders for months, symbolizing their
unwavering commitment.
• Demonstrations and Rallies: Organizing large-scale marches and demonstrations to
garner public attention.
• Hunger Strikes: Some farmers have resorted to hunger strikes to highlight the
severity of their situation.
• Negotiations: Farmer unions have engaged in talks with the government, seeking a
resolution.
POTENTIAL IMPLICATIONS: A MULTIFACETED IMPACT

The farmer protest can have far-reaching consequences:

 • Policy Reforms: The government may be forced to amend the farm laws or introduce
new policies to address farmer anxieties.
• Public Opinion: Sustained protests can erode public trust in the government and
influence future elections.
• Economic Impact: The agitation can disrupt food supply chains and impact inflation
rates.
• International Perceptions: The protest may raise
A LOOK AT THE ONGOING FARMER PROTEST IN DELHI: KEY
EVENTS LEADING TO THE CURRENT AGITATION

Indian agriculture has a long history of discontent, with farmer movements emerging
periodically to address various grievances. Understanding these key events provides context
for the current agitation in Delhi. Here's a breakdown of some crucial developments:

• Pre-Independence Era: Exploitation by colonial rulers, unfair land revenue policies,

and indebtedness plagued farmers. Early farmer movements focused on land reforms
and better prices.
• Green Revolution (1960s): Introduction of high-yielding varieties and irrigation
boosted production but also led to environmental concerns, regional imbalances, and
increased dependence on chemical fertilizers and pesticides.
• National Policy on Agriculture (2000): This policy aimed to promote
diversification, support for agribusiness, and investment in rural infrastructure.
However, issues like MSP implementation and credit availability remained.
• Farmer Protests of the 2000s: Discontent continued due to inadequate MSP, rising
input costs, and debt burden. Movements like the Shetkari Sanghatana in Maharashtra
and the Bharatiya Kisan Union (BKU) protests across India highlighted these issues.
• Passage of Farm Laws (2020): The central government passed three farm acts aimed
at liberalizing the agricultural sector. These reforms sparked widespread apprehension
among farmers, triggering the current wave of protests.
UNDERLYING CAUSES OF THE LATEST FARMER PROTEST

The current farmer protest in Delhi is a culmination of several long-standing issues plaguing
Indian agriculture. These underlying causes can be broadly categorized as:

1. Concerns around the Farm Laws:

 • Weakened MSP System: Farmers fear the new laws will dismantle the existing
Minimum Support Price (MSP) system, leaving them vulnerable to price fluctuations
in a deregulated market. They believe the government will eventually withdraw from
MSP procurement, jeopardizing their income security.
• Corporate Monopoly: The laws allow for contract farming agreements with private
companies. Farmers perceive this as giving corporations undue power to dictate prices
and exploit their weak bargaining position. They worry about potential unfair contract
terms and a lack of transparency.
• Erosion of Mandi System: The existing mandi system (regulated markets) provides a
safety net with assured MSP for certain crops. Farmers are apprehensive that the new
laws will lead to the decline of mandis, leaving them with fewer options and potentially
lower prices for their produce.
2. Economic Challenges:
• Declining Crop Prices: Farmers are facing a persistent problem of low and volatile
agricultural commodity prices. This makes it difficult for them to cover their production
costs and earn a decent livelihood.
• Rising Input Costs: The cost of fertilizers, pesticides, seeds, and fuel has been
steadily increasing, squeezing farmer profits further. This is due to factors like import
dependence and rising global energy prices.
• Mounting Farm Debt: Many farmers are trapped in a cycle of debt due to factors
like crop failures, low incomes, and high-interest rates on loans. This debt burden
makes them even more vulnerable to price fluctuations and economic shocks.
3. Sociopolitical Dynamics:
• Future of Small and Marginal Farmers: The protest reflects concerns about the
future of small and marginal farmers, who constitute a significant portion of the
agricultural workforce. They fear the reforms might benefit larger farmers and
agribusinesses more, leaving them further marginalized.
• Potential Job Losses: There are anxieties about potential job losses in allied sectors
like agricultural marketing and processing due to the new market structure envisioned
by the farm laws.
• Lack of Government Support: Farmers feel the government is not doing enough to
address their core issues and lacks a comprehensive strategy to improve their socio-
economic conditions.
 IMPLICATIONS OF THE FARMER PROTEST

The ongoing farmer protest in Delhi has the potential to trigger a cascade of effects across
various aspects of Indian society. Here's a breakdown of some key implications:

1. Policy Reforms:
• Amendments or Repeal: The sustained nature of the protest could force the
government to amend the farm laws to address farmer concerns. In the most extreme
scenario, the government may even consider repealing the laws altogether.
• Shifting Policy Focus: The protest might lead to a shift in government policy focus
towards prioritizing farmer welfare and rural development. This could involve
increased budgetary allocations and targeted support programs.
2. Public Opinion and Political Landscape:
• Erosion of Public Trust: A prolonged protest can erode public trust in the
government, especially if it is perceived as insensitive to farmer grievances. This could
have implications for the ruling party in future elections.
• Opposition Parties Gaining Traction: The opposition parties may capitalize on the
farmers' discontent to gain political mileage. This could intensify political polarization
in the country.
3. Economic Impact:
• Disruption of Supply Chains: Continued protests can disrupt agricultural supply
chains, leading to shortages of essential commodities and potential food price inflation.
This could affect consumers and various industries dependent on agricultural produce.
• Impact on Investment Climate: The uncertainty surrounding the protest might deter
investments in the agricultural sector, hindering its overall growth and modernization.
4. International Perceptions:
• Negative Publicity: The international community might view the protest as a sign of
instability and social unrest in India. This could potentially affect foreign investments
and trade relations.
• Scrutiny of Agricultural Policies: The protest might draw international attention to
the challenges faced by Indian agriculture, leading to scrutiny of the government's
policies and their impact on farmers.
5. Social and Environmental Impact:
 • Rural Distress: The protest highlights the underlying problems of rural distress,
including poverty, debt, and lack of opportunities. Addressing these issues is crucial for
long-term social stability.
• Environmental Concerns: The focus on increasing agricultural productivity in the
reforms might be overshadowed by the protest. This could lead to a delay in
implementing sustainable farming practices, impacting the environment in the long run.

PERCEIVED BENEFITS AND CRITICISMS OF THE FARM LAWS

The three farm laws passed by the Indian government in 2020 aimed to liberalize the
agricultural sector and improve market efficiency. However, these reforms have been met with
strong reactions from farmers, leading to the ongoing protests. Let's delve into the perceived
benefits and criticisms associated with these laws.

PERCEIVED BENEFITS:
• Improved Market Access: The laws aim to eliminate restrictions on inter-state and
intra-state trade in agricultural produce. This could create a more competitive market
with potentially higher prices for farmers by connecting them with a wider buyer base.
• Increased Investment: The reforms are expected to attract private investment in
agriculture, leading to better infrastructure, storage facilities, and processing units. This
could benefit farmers in the long run through improved post-harvest management and
value addition.
• Contract Farming Opportunities: The laws allow for contract farming agreements
between farmers and private companies. This could provide farmers with assured
markets and potentially better prices for their produce, especially for high-value crops.
• Reduced Market Regulation: Deregulation of essential commodities like cereals,
pulses, and edible oils aims to create a more efficient market by allowing private players
to hold stocks freely. This could potentially reduce price volatility and stabilize the
market.
CRITICISMS AND CONCERNS:
• Weakened MSP System: Farmers fear the government will eventually withdraw
from MSP procurement, leaving them vulnerable to price fluctuations in a deregulated
market. They believe a guaranteed MSP system is essential for their income security.
 • Corporate Exploitation: Farmers are apprehensive about the potential dominance of
large corporations in the new market structure. They fear corporations might dictate
prices and exploit their weak bargaining power in contract farming agreements.
• Erosion of Mandi System: The existing mandi system provides a safety net with
assured MSP for certain crops. Farmers worry that the new laws will lead to the decline
of mandis, leaving them with fewer options and potentially lower prices.
• Lack of Transparency and Contract Regulations: Concerns exist about the
potential for unfair contract terms and a lack of transparency in agreements between
farmers and private companies. Farmers may not have the legal or financial resources
to negotiate effectively or seek redressal in case of disputes.
• Impact on Small and Marginal Farmers: There are fears that small and marginal
farmers might not be able to benefit from these reforms and could be further
marginalized due to a lack of resources and bargaining power compared to larger
players.
CONCLUSION: A PATH FORWARD

The ongoing farmer protest in Delhi has exposed deep fissures in the Indian agricultural sector.
While the government aims to modernize the system and improve market efficiency, the
reforms have ignited anxieties among farmers who fear for their livelihoods. Addressing this
complex issue requires a multi-pronged approach:

• Meaningful Dialogue: Open and transparent communication between the

government and farmer unions is essential. Addressing core concerns like MSP, price
stability, and debt relief should be prioritized.
• Revision of Farm Laws: The government might consider amending the farm laws to
address specific anxieties. This could involve providing clear legal guarantees for MSP,
ensuring a level playing field for farmers in contracts with private companies, and
strengthening the mandi system.
• Focus on Small and Marginal Farmers: Specific policies and support mechanisms
are needed to ensure small and marginal farmers benefit from reforms. This could
include financial assistance, access to technology, and market linkages.
• Investment in Rural Infrastructure: Improving rural infrastructure, including
irrigation facilities, storage capacity, and transportation networks, is crucial to reduce
input costs and improve market access for farmers.
 • Promoting Sustainable Practices: The government should incentivize sustainable
agricultural practices to protect the environment and ensure long-term food security.
SOURCES
https://pib.gov.in/Pressreleaseshare.aspx?PRID=1778908