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FARMERS PROTEST IN INDIA
(SEP 20 – CURRENT)
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OVERVIEW
Dates
Caused by
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INTRO
Under the Agriculture Produce Marketing Committee (APMC) Act passed in 1964, it was
compulsory for farmers to sell their produce at government-regulated markets, or mandis,
where middlemen helped growers sell harvests to either the state-run company or private
players
PM Narendra Modi in his election campaign promised reforms for the farmers and
Agriculture Industry
After the success in elections, he was under constant pressure to bring on the promised
reforms
On 27 Sep 20 President Ram Nath Kovind passed The Indian Farm Reforms
The bills collectively seek to provide farmers with multiple marketing channels and provide
a legal framework for farmers
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ACTS
Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
– Expands the scope of trade areas of farmers' produce from sel areas to "any place of production,
collection, aggregation"
– Allows electronic trading and e-commerce of farmers' produce
– Prohibits state govts from levying any market fee or levy on farmers & traders
Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020
– Provides a legal framework for farmers to enter into pre-arng contracts with buyers
– Defines a dispute resolution mechanism
Essential Commodities (Amendment) Act, 2020
– Removes foodstuff such as cereals, pulses, potato, onions, edible oilseeds and oils, from the list of
essential commodities, removing stockholding limits on such items except under "extraordinary
circumstances
– Reqs that imposition of any stock limit on agricultural produce be based on price rise
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STANCE OF GOVT
The new laws will :-
Bring an ecosystem that will give farmers the freedom of choice to sell and purchase
their produce inter-state and intra-state
Be beneficial to not only farmers but also traders and consumers
Allow farmers to engage in direct marketing of their crops
Monopoly of APMC mandis will end but Mandis will not be shut down
Minimum Support Price (MSP) - the price at which the government buys farm produce - will
not be scrapped
The new laws give farmers addl choices to sell their produce anywhere in the country, in
contrast to the earlier situation where inter-state trade was not allowed
State governments, which earn an income through transactions at mandis, stand to lose
out on tax revenues as trade moves out of state or into the domain of pte deals
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WHAT DO FARMERS FEAR
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PROVISIONS UNDER THE NEW LAW
Farmers will be to enter into a contract with processors, wholesalers, aggregators, large
retailers and exporters directly so as to realize the full price of the produce
Farmers be assured of the price of their produce even before sowing of crops
Farmers will not be charged any tpt cost at the time of sale
Farmers will get access to modern tech, better seed and other inputs that enable better
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DEMANDS OF FARMERS
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PREVAILING ENVMT
With the Centre-farmer talks ending in a stalemate, thousands of farmers are staying put at
Farmer leaders rejected the government’s offer to amend new farm laws and said they
would settle for nothing less than the scrapping of the legislations
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THANK YOU
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