What are the three agricultural laws that farmers are protesting against

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Updated: 04-04-2024

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In September 2020, President Ram Nath Kovind signed three 'Agriculture Bills' enacted by the Indian Parliament, which became Acts. The Farm Acts are as follows:

· Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act of 2020

· Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020.

· Essential Commodities (Amendment) Act, 2020

Here is an explanation of the three Farm Acts:

The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act of 2020: It aims to enable farmers the freedom to sell their produce outside of notified APMC market yards (mandis). This is intended to promote remunerative prices through competitive alternative trading channels. Farmers shall not be charged a cess or levy for selling their produce under this Act. The government stated that the move would provide farmers with more options, lower marketing expenses, and help them achieve better pricing. It will also help farmers in excess produce regions obtain better pricing, as well as customers in shortage areas get lower prices.
Farmers' Opposition: States will lose money since they will be unable to collect fees if farmers sell products outside of registered Agricultural Products Market Committee (APMC) marketplaces. Furthermore, commission agents stand to lose if the entire farm trade moves out of mandis. Farmers are concerned that it would eventually result in the collapse of the Minimum Support Price (MSP)-based procurement system, as well as exploitation by private enterprises.
The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act of 2020: This legislation aims to enable farmers the right to enter into a contract with agricultural companies, processors, wholesalers, exporters, or major retailers for the sale of future farm produce at a set price. The Centre stated that it tries to shift the risk of market volatility from farmers to sponsors. In addition to providing farmers with access to new technology and better inputs, it aims to increase farmer revenue by lowering marketing costs. Farmers' Opposition: Farmer organizations believe that the law is intended to assist "big corporates who seek to dominate the Indian food and agriculture business" while weakening farmers' negotiating power. Additionally, large private enterprises, exporters, wholesalers, and processors may gain an advantage.
The Essential Commodities (Amendment) Act, 2020: The law seeks to remove cereals, pulses, oilseeds, onions, and potatoes from the list of essential commodities, as well as the imposition of stock holding limits on such items, except in 'extraordinary circumstances' such as war, famine, extraordinary price increases, and natural disasters. The Union government stated that it aims to promote private investment/FDI into the farm sector while also ensuring price stability. Farmers' Opposition: Farmer organizations claim the bill is designed to benefit "big Farmers' Opposition: Large corporations will have the flexibility to stock commodities, allowing them to dictate terms to farmers.

What are the demands of protesting farmers?

The earlier protests were in response to the government's three agricultural laws, which guaranteed farmers remunerative prices by tying them to free markets, to double farmers' incomes. The protesting farmer, on the other hand, criticized the new legislation, arguing it would place them at the whim of private enterprises.

The main demand this time, which was previously included in almost a dozen requests other than the repeal of agricultural legislation during previous rallies, is a legislative guarantee of minimum support prices (MSP) for all commodities. The government sets the MSP for roughly two dozen commodities twice a year by the Commission on Agricultural Costs and Prices' recommendations. The majority of crops purchased under MSP come from Punjab and Haryana, and it primarily consists of wheat and rice, which supports the government's public distribution system. Farmers demand a law that ensures MSP for all crops. However, the government is concerned about several aspects of the desire for a legislative guarantee, including worldwide prices, pressure on the government for procurement, export competitiveness, and central expenditure.

Another key demand is the implementation of the MS Swaminathan agriculture committee's recommendations. Swaminathan, an agro-scientist renowned as the architect of the Green Revolution, was recently honored with the Bharat Ratna.

Other requests include higher sugar cane prices, a monthly pension of Rs 10,000 for every farmer over the age of 60, harsher action against the accused in the Lakhimpur Kheri event, and the provision of land in Delhi for a memorial to the "martyrs" of the previous farmers' protest.

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