In India, we have seen farmers protest for many years. In the year 2020, the Union government passed a bill related to farmers and the farming sector. All the farmers are opposing the bill and demanding their rights. The farmers were very strong during the protest in 2020. The Union Bill called as FPTC Act 2020. This farm law has three main areas.
1. Farmers’ s produce trade and Commerce act:
This act allows e-commerce trading and electronic trading from any part of India. This prohibits the state government from imposing market fees and other fees for crops.
2. Famers’s agreement on price assurance and Farm Services Act:
This creates a detailed layout where the contract of farming is through an agreement between the farmer and the buyer. This contract can be done before production or during a type of farm. This is protected with a three-level dispute settlement mechanism. Which are the conciliation board, sub-divisional magistrate, and appellate authority.
3. Essential Commodities Act:
This act allows the collection and regulate certain types of food in times of war or droughts.
Know about 3 acts passed lead to farmers protest and APMC:
Lets get easy understand of the acts which are passed by government and why farmers are opposing them.
When a farmer cultivated a crop there are 3 stages before it reaches us, at first APMC buys the crops from farmers and sells them to wholesalers throughout the country. These wholesalers sell to retailers. Retailers where we normal people buy. APMC regulated controls the price of crops which eliminated the monopoly of any person. As we heard in British times they used to buy for less prices and less it for more prices. To control this APMC is established by Government to control the crop and prices. Only licensed buyers can purchase in APMC.
But there wasn’t any certain rules and regulations present in APMC. The MSP was just a guideline in APMC. Which makes the buyers can by at MSP over even at cheaper rates in APMC also. Even the groups of buyers formed and buying the crops for low prices. They were gambling the farmers as they could not sell it out of APMC. So they groups of buyers forcing them to sell it at loss.
This 1st act mentioned above which is the farmer’s Produce Trade and commerce act gives the famers to free hand to sell their crop in any place in India to anyone. And also the state governments where they sell have no right to impose taxes on the money.
Main problem arose here the 2nd act of the bill:
Lets get details of the 2nd act. As we know farmers in this India cannot estimate their crop price before they start producing them, the prices may change daily. Which sometime creats high investment in crops but at the time of selling the price may reduced which creates huge loss and debts. No government or person can set the price of the crop before its production started. But there is only one way who can give the price even before you start cultivating them. They are corporates.
Lets understand it deeply, lets consider a coffee-making company which needs rgular coffee seeds. This corporate company makes agreements with coffee farmers rather than dealers. These companies deals with the price even before they start the crop. These deals shows farmers the exact profit they get for the crop. The 2nd act Farmers Empowerment and protection agreement on Price Assurance and Farm Service Act stated.
The next bill made the storing of crop is illegal, as some of the farmers groups creates the artificial inflation and store the crops. They sell them when the market price gets even more higher. This make the consumer to suffer more. So the 3rd act is about this.
Hope you guys got the clarity regarding the bills on Union government. Know lets get into the points where the farmers and farmers unions are against these bills.
Some darks in corporate systems:
As we look into the 2nd bill where the farmers can make agreement with the corporate companies and sell their crops to them. They claim that in Initial days it may look fine but later on, what if the corporate companies forms as syndicate and again start regulating the prices of farmers. This again creates the huge mess and problems to farmers.
Some people claim that government is working for corporate companies to sell crops to them and make them into profits. But what ever it may be the farmers haven’t liked the bills. India is a free country to oppose any thing. They have made their voices strong opposed the bills and protested against the.
Supreme court involve in farmers protest:
All farmers have petitioned in The Supreme Court. As the petitions reached the Courts, even though the orders from the supreme courts hadn’t moved the farmers from the outside of Delhi. Famers have blocked the major roads of Delhi and settled there with temporary tents and equipment.
During 2020 the pandemic attack made the farmers leave Delhi and settle in their hometowns for a while. India reopened totally in 2021. Farmers petitioned the Supreme Court against the bill. In Jan of 2021, the Supreme Court upheld the farm laws, and they proposed a committee that must submit a confidential report to the Supreme Court regarding the law’s pros and cons. On the eve of Republic Day 26th January 2021 over 10,000 farmers held a parade towards the Red Fort and hoisted the farmer’s flag on red Fort and other religious flags.
But these protest are criticized by governments saying this are tricks by the Khalistans to make revolts, and disturb peace in India. But during those days the farmers protest has got much support from political parties and other opposition parties. In Nov 2021 due the protests of farmers the Union government decided to take back the passed bill from Lok Shabha and Rajya Sabha too. Through this act farmers unions very half satisfied, they have started demanding regarding the minimum support price from the government for crops.
Knowing about APMC and farmer demands during protest:
The story doesn’t ends here. As we first discussed APMC, when the bills gets cancelled the APMC comes into picture for buying the crops in traditional ways from many years which is going on. As I have mentioned that APMC doesn’t have certain main rules which helps farmers. A strict rule where farmers are not allowed to sell outside the APMC. But there is no certain strict rules to buyers regarding the price of the crops. As the government decides the MSP of a crop. But buying price is decided by the buyers. Which again creates the problems.
So the farmers and farmer unions are demanding MSP even after the bills were taken back. While the farmers withdrawing from Delhi they demanded MSP for them. As the government requested time to analysis the MSP. As we all know in 2021 the farmers protest were went back in calm mode.
How MSP calculated:
But till today which 2024 the Union government haven’t taken any action regarding the MSP demanded by Farmers. Lets get into deep regarding the MSP farmers demanding and why govt haven’t accepted yet. As the per the Swaminathan commission the formula to calcualate MSP is C2+50% of C2. This C2 involves each rupee they have spent on that crop like, man power, fertilizers, land lease cost and many more. Some of the crops in India have this rules. Only 26 commodities trade under this MSP rules. Most of these commodities are pulses, cereals and oil seeds. Most of these commodities are bought by govt for distribution of ration to BPL people.
The farmers are demanding make the MSP as legal right to them. This MSP helps farmer more, but the gowdowns to store the crops are not there in India. As we have 800 lakhs tons storage capacity. Every year we produce over 3000 lakhs tons. As government cannot buy them and store them.
And on the other hand when a buyer buys through the MSP as per government, the price of every crop increase than before, the buyer must process it (it applies for some crops) and sells to wholesaler and then to retailers and at last consumers. While coming to consumers the price gets into sky. As the MSP is increased about 7% every year the inflation for the consumers gets more higher.
Affect on government due to MSP:
To reduce the inflation created by MSP government need to pay money for the buyers who process the food or transport them, which reduces the prices of transportation, processing and other charges. This act reduces the price more 40% than we discussed before price.
If MSP is implemented the government gives it on vegetables also. As we get into the budget of Union government which is 44lakhs crores in this 2024-25. About 4lkahs crores allotted for farming in various sectors. Which included subsidies, Bhima, damage protection, fertilizers subsidies and many other things.
As we discussed above when the government decided to legalize the MSP there some issues. We also discussed that the government buy the crops in MSP for the PSD distribution. The people under this PSD are approx. 24 crores as per NITI Aayog. As government spends more than 2 lakhs crores for the people under BPL. When the legal of MSP comes into picture it is like government providing MSP for 150 crores people. As calculated with BPL, the estimated cost for 150 crores people is more than 15 lakh crores. And this estimated price is only for the 26 commodities which we have discussed.
When the MSP gets legal it will consider all vegetables. Then think of the money which government need to spend to provide subside and other benefits to the farmers and buyers. As an estimated cost government need to spend 30Lakh crores to implement this. At first I have mentioned the union budget 44 lakh crores. How can the government keep 80% of their budget to only one sector.
Export problems of crops:
And also exporting of the crops are difficult as the MSP is decided as per the situations present in India. But while entering the international market everything deals with those market. As we may high prices for a crop but in international markets may be less than we have. And also while transporting 30% of the commodities will be spoiled and no on gains money from those spoiled things. Most of the country and also economic gaint USA also haven’t provided MSP for farmers.
There is an idea for the problem which is Bhavantar Buhgtan Yojana:
Here comes the new idea PDP, as we have discussed initially regarding the APMC. In this law farmers traditionally goes to APMC. Her government sets an fixed price by comparing with other state crops. As an APMC quotes the highest rate for a crop according to the quality will be the fixed rate for that crop. But a buyer buys it less than that due to many reasons. So here again the loss occurs to farmer. In order to help farmer PDP came into picture. Example a crop is quoted 130 rupees. But farmers sold it for 90 rupees. The difference amount which farmer loss is 40 rupees. This 40 is on government.
Through this system the buyers gets it for low price which reduces inflation for the consumers. And also famers gets better price than buyer price. Through this government doesn’t have problem of storage and selling.
But I have seen something weird things in the new protest. Any political parties haven’t involved in this even though it the time of elections. And the protest dates seems wired. As government schemes amount was went into the accounts of farmers in 2023 November, but even then they raised the protest. When the Ram Mandir date has announced some farmer groups have started meetings to protest.
Something fishy behind the farmers protest 2024:
As per the information from intelligence of India, this time 25,000 famers with modifies tractors to stay in Delhi, and also the ration they brought is about 6 months sufficient. Which leads to many doubts. Any protester wants to solve the things as faster as they can. But why they have brought this huge setup and settled in Delhi.
As government claiming they are riots khalistans who demand separate country for them. What is your opinion on this. But these farmers got support from Global star Mia Khalifa.
As we are approaching with the elections know about the shocking details released by election commission regarding electoral bonds. And also know about ED( enforcement directorate) which is the most powerful investigative agency in India.
