What’s Wrong With The Farm Bills?
AIITEU Member, Hyderabad
In the past few weeks there has been a lot of talk about the Agricultural Reform Bills. More importantly, farmers across various states have taken to the streets to protest against them on a large scale. In this article we will go through the different ordinances and unravel the malaise that has driven the country to protest.
The BJP government’s recent moves to ‘reform’ the agricultural sector has met with severe resistance from farmers across the country. The three new Bills — which were passed by the Lok Sabha in an unconstitutional and undemocratic fashion were not created in consultation with any of the State governments or farmer organisations in the country.
Farmers Produce Trade and Commerce (Production & Facilitation Ordinance), 2020
This ordinance essentially reconsiders the “Trade Area” by enabling consumers to purchase products outside local markets. If farmers sell their greens or goods outside APMC (Agricultural Produce Market Committee) markets, the Mandi Tax will be lost which ranges from 1.5% — 2% to even 4% in states like Punjab and Haryana. Effectively, brokers or commissionery agents are taken out of the picture for states which have a robust Arhatiya System.
Clause 2(m): Many states have passed laws for trades to be mandated only through APMCs for controlling farmers exploitation and ensuring best price for their produce. But the redefined trade area according to the Clause 2(m) of the Bill completely ignores local markets managed and run by APMC and private market yards managed by persons holding licenses or any warehouse under APMC Act in India. The state’s revenue or Mandi Tax will be at stake as a result of this clause.
Clause 3 & 4: This bill allows farmers to indulge in inter-state ot intra-state selling of produce outside APMC mandis.
Farmers (Empowerment & Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020
This ordinance essentially enables ‘Contract Farming’, which is when contracts can be made between farmers and consumers directly. If big farmers involve them in a contract farming arrangement, they would not be able to negotiate for the best prices if they are pitted against MBA graduates representing sponsors, who will naturally have an advantage. Contract farmers will be ripe for exploitation as their sponsors will have an edge over them in disputes.
Essential Commodities (Amendment) Ordinance, 2020
This ordinance essentially decontrols production, storage and sale of geens and goods. This effectively legalizes hoarding, price inflation and the phenomenon of artificial scarcity may occur as a result. Under the new rules, the Government will interfere in the stockpiling limits only if there is 50% rise on previous year’s price in case of non-perishable items and 100% rise on previous year’s perishable items. Here too,farmers will be weak as large corporates are better funded and equipped to hoard and stockpile. The price limits set are too inflated to be triggered, if at all.
The Modi government has labeled these Bills as Price Assurance (APMC Bill) and Income Assurance (Contract Farming Bill); promoting ‘Atmanirbharta’ and creating ‘Suraksha Kavach’ for farmers. In reality Mandis will be dominated by Private Corporations, farmers will be enslaved through Contract Farming and their land will be mortgaged to private lenders. These laws intensify the so-called ‘liberalization’ of government facilities which will lead to higher indebtedness and farmer suicides. The creation of new trade areas without appropriate government regulation and price intelligence is the government effectively abdicating its responsibility. Through these Bills the government has also launched an all-out attack on India’s food security as all cereals, pulses, oilseeds, potatoes and onions have been removed from being regulated items under Essential Commodities Act. More than 75 crore PDS beneficiaries will be now forced to buy from corporations in the open market at uncertain rates.
These bills herald an era of the complete subordination of Indian agriculture to imperial and corporate interests. Increasingly, these interests are represented by large technology companies whose interests are contradictory to that of peasants and agricultural workers. As technology workers, we must deplore this subordination and reject the monopolisation and corporatisation of agriculture. The agricultural sector needs an overhaul, but not in this manner — not in the interests of large corporations both Indian and foreign, which are opposed to the interests of the peasantry as a whole.
