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Privatization Over Farmer’s

Privatization Over Farmer’s

Contents  hide 

1 FARMER BILL ACT 2020

1.1 Government Taken a initiatives for the farmers

2 Farms bills right or wrong

2.1 APMC

2.2 APMC market

3 The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020,

3.1 Positive aspects :

3.2 Negative aspect :

3.3 Solution:

4 The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020

5 Why Farmer protest problem and solution

6 Opposition

7 The Essential Commodities (Amendment) Bill, 2020,

7.1 Positive aspect :

8 Conclusion:

9 Related

FARMER BILL ACT 2020

The government has passed a bill for the farmer. But question of it is, for the farmer or against the farmer. Government said it is for the betterment or beneficiary. But it is from the outer look, deep down the farmers are the one who will suffer from this government privatization. In addition to the farmer is the backbone of our society even 70 percent. For farmer contributes of the Indian economy. That is the maximum of all but still farmer is deprived of every luxury of society.

We are not saying that government is against the farmer or farmer against the government. But matter of the fact is that we shall resolve this problem. And find the appropriate solution and choose what is most reliable to both. We have seen the condition of farmers. In India it is critical situation have been occurred we are always hearing the suicide cases of the farmers even week or month. Problem is that they are not having so much money to living a good life since the middle men get most of money, so farmer gets nothing.

Government Taken a initiatives for the farmers

In order to says that for the farmer, government also takes a good initiatives or provide a privileges to the farmer and government also has exempts all the loan moreover government pay the pension of Rs.6000 to them furthermore government provides the reservation to their children. At last, farming is a profession which hard labor and efforts. We seen in the today scenario most the Indian farmer started protesting against the government specially in Haryana or Punjab or all over country so firstly, we need to understand why they are protesting against the Government or Bills and what things or criteria government should require to change in the Bills.

The reason for the protests is by introducing the three new bills i.e. “The Farmer’s Produce Trade and Commerce (Promotion and facilitation) Bill, 2020”, “The Farmer’s (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bills, 2020” and ‘The Essential commodities (Amendment) Bill 2020. The Indian parliament passed three bills in September this year to reform the way agricultural produce is marketed. These 3 bills were made into acts with the President’s permission in September 27, 2020. PM Modi called these acts as a watershed moment in Indian agriculture. The introduction of the bill is based on the concept of

‘One India, One Agricultural Market’.

Farms bills right or wrong

“If the farmer is rich then so as the nation”

APMC

 Farmers are only a price taker not maker because of the middle men but right now they have a liberty to make a price taker, even more farmers decide the price of the product there are no more interference of (APMC) Agricultures produce market committee (Mandis).APMC had started to regulating farm produce except nobody has allowed to buy produce from the farmer and it also decided APMC and it would give a license to the trader and space to trader to buyer because mandi has a different traders who negotiate with the farmer and together there in arrive at mutually acceptable price. The farmer have not decided the price of produce its all decided by the only trader even today, the farmer is a price taker not a price maker. This mandi system is not a perfect.

According to research there are just over 7000 mandis all over India. the one of the state is Magahlaya has a mandi covering area 11,215sq km the national committee of farmers said for mandi system to be successful when there should be a mandi at every 5km distance, As a result the largest portion of marketable surplus of agriculture produce in India is sold outside the registered market yard  space and, NASSO data reflect this only around 40 percent or less than goes to mandis even though small famers cant not efforts transports costs to mandis these farmer sell their produce to un licensed trader in their village Whatever the price decided by the traders.

As a result India Deeping farmer crisis 76 percent farmers want to gives up farming because the market needs a goods buyer to pay fair price. The Bills which aim to change the way agricultural produce is marketed, sold and stored.

APMC market

Lets talk about Government Aspects firstly, government want to make an open market system and this system should be organized on online market base and it is very easy to famer to access there product on higher prices and, government want to remove a APMC market because there are several reason for that. The first reason is, the farmer sell only their product through the APMC market or paid a levied taxes on this and, also pay a minimum Prices to the middle men. Government also removes the geographical indication which is important for the farmer to sell their product outside the area without any permission of the APMC market.  

However , the whole analysis is that farmer does not demand to removed or dropout this bill they only demand to change some points or aspect under this act and also involve AMPC market or MSP ( minimum support price) system. They do not want corporate or private interference in it. They also demand regulation or judiciary intervention. Farmer also has a fear if APMC market has been removed the whole of the farming system converted in to the privatization or corporatization.

Example:  Jio and other companies VS. BSNL, Government university VS private university its means whole Government system become private system and in that case every things is going to more and more expensive and its create the monopoly in the market. 

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020,

Positive aspects :

This Bills specially focus on the 3 aspects, promotion, trade and commerce, promoter facilitation. This Act allows the farmers to sell their produce outside the Agricultural Produce Market Committee (APMC) regulated markets. The APMCs are government-controlled marketing yards or mandis. So, the farmers clearly have more choice on who they want to sell. The government’s logic is that the Agricultural Produce Marketing Committee (APMC) is an obsolete institution from an age of scarcity, meant to protect the farmer but has now become his oppressor, a monopoly cartel fixing low prices for the farmers’ produce, forcing distress sales.

In this bill the government also facilitates to the farmer online trading system , interstate system, even there is no tax  fee or cess regulate to sell their produce in other state and it also provide redressal for dispute resolution settlement through the SDM or Collector except no interference court or judiciary. The reason of noninterference of judiciary because government want to avoid un necessarily litigation expenses .even no trade barrier it will facilitate interstate  trading promotion the concept of one nation one market and this concept also increased the competiveness in the market area

Negative aspect :

The negative aspect by the farmer is that they demand the involvement t of judiciary or court system because sometimes the SDM or other officer being quite biased and that is biggest negative effect of that process in that case farmer have no right or opportunity to speaks our self for own benefit.

Farmer want to APMC market because there are lot of benefit first its help in bidding there commodities or in APMC market all of the produce or commodities sell under the MSP prices, so in short MSP system is need to regulates as Minimum Wages act under Minimum wages act 1948,at least they should have minimum support price system.

The one of the negative aspect is to create monopoly or oligopoly, cartelization problems in the market or it become to create exploitation between he farmers or markets level.

Solution:

Government shall be make a set of rates or prices in the produce or commodities rates like in the share markets or encourage the FPO (farmer produce organization) for the farmer it will make easy to get MSP prices on the produce. The farmer can also came together and start farmer producer organization where farmer can pool and collect their produce like example   Amul  it got together lakh of farmer on one platform and paid them a fair price for their milk. In India their FPO (farmer produce organization) exist already. They help farmer for need the right price of their produce FPO farmer can make collective for better bargaining FPO need to funding and education support from center or state.

Government also change the rederssal platform and allow the involvement of court or judiciary or also approach the conciliation or mediation process as well that would remove the biasedness between farmer or authority.

The government shall include the MSP system that protect the farmer from the exploitation and safeguard from the privatization or monopoly as well.

,Bhartiya Kisan Union leader Rakesh Tikait stated, ” They (Central Government) want amendment in them (Farm Laws 2020) but we want these laws to be repealed. We don’t want changes. We will end our protest only when these laws are withdrawn. Like the government brought the three bills, they should also bring a bill on the MSP.”

The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020

This Act makes provisions for the setting up of a framework for contract farming. The farmer and an ordained buyer can strike a deal before the production happens.

According to PRS India, a “Standing Committee on Agriculture (2018-19)” observed the APMC laws needed reforms as cartelization had begun to crystallise due to a limited no. of traders in APMC mandis. Therefore the following law was passed in September 2020. In this act basically work on contract farming it help to enter into direct or commercials agreement with the company or in this agreement the companies shall give the price assurance to the farmer. This will eliminate the fear of exploration and ensuring access to the global market. This act will help to initiate the modern farming system by the new technology

After the terms of the contract are decide the buyer will provide the means to yield a good crop. The contract will only be for agricultural produce and not for the agricultural land. The farmer will be the owner and can avail loan and credit facilities from financial institutions if the need be. Crops under the agreement shall be exempted from the rules and laws relating to the sale of agricultural produce and the provisions of the Essential Commodities In this act central government shall provide the model contract or guild line on the prescribed format.

Why Farmer protest problem and solution

 Indian farmers fear that they might lose more than they could gain. After the new Farms Laws 2020 thereby taking the protest to the streets.

Secondly, famers demand a court system. Because in this act the civil court not allowed to the interference they demand for tribunal system or conciliation process.

Third reason fo the protest to fix the Minimum rate price or flexibility in the prices for the contractual base farming system

 Fourth reason of this protect to central government shall remove the may and adopt the shall for Model contract system or made a definite form for contractual farming

 Fifth reason of this protest to change the registration system. And make proper regulation and avoid pan card system. Because in pan card system there are so many risk to misuse this

Opposition

The corporates and traders will have an upper hand and will be smart players. As the farmers have weak negotiation skills to grab a fruitful deal for themselves. The small and marginal farmers may be deprive of sponsors. In case of disputes, the exporters, corporates, or any other sponsor will have an edge. It gives independence to corporate and not to farmers as there is no mention of MSP. In the bill and the same is the reason for protest by the farmers.

The Essential Commodities (Amendment) Bill, 2020,

In this bill the freedom to stock commodities will lead to exploitation as the big companies will charge exorbitant prices. The price limit set for extra ordinary circumstance is so high that they are likely to be never trigger. Basically this will removed the storage limit. That will be so wrong because every farmer not capable to stock a product because they are not so rich. As compare the corporates or private house. After this unlimited storage situation going to take drastic change  or it create exploitation. Because farmer does not get even minimum support price because every farmer in the country. Not so rich the lowest level of farmer going to die. And  the suicide cases of farmer will increased day by day. And this bill create menology  cartelization and private sector

 Positive aspect :

Its Enables private investment in the agricultural sector. This will help to provide a pool of funds to the farmers to facilitate the production of crops. And it Help both farmer and consumer to bring price stability Removal of cereals, pulses, oilseeds, onion, and potatoes. From the essential commodities to do away with the imposition of stock holding limits. It allows the government to take back control. If there are extreme situations like extraordinary price rise, war, famine, or natural calamities of severe nature. It will encourage private sector investment in cold storage and pave ways for modernizing. The supply chain and Removal of stock limits. Ensuring a larger market for farmers attracting investments in infrastructure and transportation due to fewer government restrictions. This bill gives farmer freedom to sell their produce anywhere in India.

Conclusion:

The whole analysis is those farmers are the soul of the nation and their growth. And uplifting is the foremost duty to taken acre by the government. The passing of these bill change the life of farmer but there are so much correction require. In this bill by the government because farmer whole income depend on farming. So its government responsibility at least provide the mini support price.

The passing of this bill; is a step in the right direction providing a bigger platform to the framer. To get desire price their agriculture product. So in that case government shall change some provision. Somehow, in private sector involve in this it create monopoly or cartelization. That is very drastic for farmer we do not say to take drawn back this bill but in this bill. There are so many  change require we know this reform will accelerate agriculture growth. Through, private sector investment in constructing agriculture infra-structure.  And supply chain for Indian farm produce in national global market. It also generate the opportunity  and strength in economy but in right or proper way. Because it will empower the farmers and foster their growth and development in the country reshaping the Indian economy.

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