PROS AND CONS

FARM LAWS
WHAT IS FARM BILL 2020?
▸ On 20th September 2020, Parliament passed three farm bills, which created protests in the
country.
▸ Three Farm Laws:
▸ Farmers Produce Trade and Commerce (Promotion and Facilitation) Act, 2020: It
is aimed at allowing trade in agricultural produce outside the existing APMC
(Agricultural Produce Market Committee) mandis.
▸ Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm
Services Act, 2020: It seeks to provide a framework for contract farming.
▸ Essential Commodities (Amendment) Act, 2020: It is aimed at removing commodities
such as cereals, pulses, oilseeds, edible oils, onion and potato from the list of essential
commodities.
 POSITIVES : WHAT DOES IT BRING TO THE TABLE?
▸ Farmers Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
▸ Promotes trade: It promotes barrier-free inter-state and intra-state trade and
commerce outside the physical premises of markets notified under State
APMCs.
▸ Better price: It will open more choices for the farmer, reduce marketing costs
for the farmers and help them in getting better prices
▸ One nation, one market: The Act will help create One India, One Agriculture
Market and will lay the foundation for ensuring golden harvests for our hard
working farmers.
▸ The Farmers (Empowerment and Protection) Agreement of Price Assurance and
Farm Services Act, 2020
▸ Level playing field: It will empower farmers for engaging with processors,
wholesalers, aggregators, wholesalers, large retailers, exporters etc., on a level
playing field without any fear of exploitation.
▸ Transfers the risk: It will transfer the risk of market unpredictability from the
farmer to the sponsor in addition to access modern technology and better
inputs.
▸ Attracts private sector: This legislation will act as a catalyst to attract private
sector investment for building supply chains.
▸ Eliminates intermediaries: Farmers will engage in direct marketing thereby
eliminating intermediaries resulting in full realization of price.
▸ Amendments to Essential Commodities Act (1955)
▸ The amendment would deregulate the commodities such as cereals, edible
oils, oilseeds, pulses, onions and potatoes. It will help to lessen the fears of
 NEGATIVES : WHAT DOES IT TAKE AWAY?
▸ The process of passing the bills is not democratic. Agriculture and trade are
state subjects, but the states are not consulted before passing the bills. The main
people for whom the bills are made – farmers were also not given the
opportunity to voice their concerns.

▸ APMCs are very helpful for small farmers not just to sell the produce but also
to know the prices & production choices The passing of farm bills 2020 may
weaken the APMC system and hence can become a disadvantage to small
farmers.

▸ There is no guarantee that the farmers’ income will be increased by these bills.
If we take the example of Bihar, when the state abolished APMCs in 2006,
farmers got lower prices for their produce than the Minimum Support Price
(MSP).

▸ One nation – one market may not be much useful to small farmers, because
transporting the produce requires more expenditure than selling them at the
nearest APMC.

▸ Contract farming may be detrimental to farmers

▸ Removing the restrictions on the storage of some foodgrains may lead to more
imports at cheaper prices affecting the domestic farmers. It might result in
hoarding and aftificial increase in prices as well

▸ Unless government intervenes, market will go into the hands of big businesses
VERDICT:
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