Farmers' Bill 2020

The day was 27th September 2020 when 3 farm bills were passed by the Indian parliament under the rule BJP party. These bills were introduced by Narendra Singh Tomar, the minister of agriculture and farmer welfare on 17th september 2020 to bring reform in the Indian Farms.

The name of 3 farm bills are as follows:-

1. The farmers' produce trade & commerce(promotion and facilitation) bill 2020.
2. Farmers (empowerment and protection) agreement on price assurance and farm services bill 2020.
3. Essential commodities (amendment) bill 2020

So, you have got a basic idea about the farm bills, now let us explore about all the farm bills in detail.

1. The farmers' produce trade & commerce(promotion and facilitation) bill 2020:-

This bill allows a barrier-free intra & inter-state trade of farm produce. It means that whatever the farm products produced that can be sell in any part of the country by the farmer. This facilitated the farmers to sell their agricultural produce outside the Agricultural Produce Market Committee (APMC). This APMC or 'Mandi' are set up and are control by the government. Now, let us understand about APMC or Mandi in detail.

Agricultural Produce Market Committe(APMC)

An Agricultural Produce Market Committee (APMC) or Mandi is a marketing board established by state governments in India to ensure farmers are safeguarded from exploitation by large salesclerk, as well as ensuring the farm to retail price spread does not reach excessively high levels. APMCs are regulated by states through their adoption of a Agriculture Produce Marketing Regulation (APMR) Act.
Until 2020, the first sale of agriculture produce could occur only at the market yards (mandis) of APMC is said by the government , however, there is is no such rules exists. However, the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, which came into effect in 2020, allowed farmers to sell outside APMC mandis as well as different state in India as claimed by government. In India their are 2,477 APMC or Mandis over different states.

This bill will become more clear from the following example of Om :-

 Om is a small farmer in Odisha, who has harvested 20 quintal wheat in Rabi season this year. He wanted to sell these harvested wheat in good price and the mandis or APMCs of Odisha declared that they will buy wheat at 15/- per Kg. But, in the other state like Chattisgarh, the mandis or APMCs of Chattisgarh declared to buy wheat at 20/- per Kg. So, now Om can sell his produce in Chattisgarh rather than Odisha to make a good profit without any type of restrictions. 

2. Farmers (empowerment and protection) agreement on price assurance and farm services bill 2020:-

This bill is all about the Contract Farming, which will bring a good relationship between the large industrialists, buyer, exporters or businessman with the farmers.

According to this bill, the farmers will be given contract by the large businessman, industrialists etc. Both farmers & industrialists have to sign an agreement. In short, this bill will create a national framework for contract farming through an agreement between a farmer and a buyer before the production or rearing of any farm produces. Also, this bill will provide National Framework for the farming agreement and protect & empower the farmers to deal with the agri-business, wholesale, exporter & sale of future farming product.

This bill will become more the following example of Bishamber:-

Bishamber is a middle-class farmer in a small village of Chattisgarh. And, he have 5 acres of land where he do his farming procedures. A company named, SUN FRYMS manufacture potato chips wants a large amount of potato for the production of potato chips in the upcoming year. And, they need a piece of farming land for the production of potato. So, for that purpose the employees of the company visits to the village of Bishamber. And then they search for the farmer who is ready for the contract. They found that, Bishamber is ready for the contract. They asked, Bishamber to grow potato in his 5 acre land and Bishamber agreed with them. Now, they both sign an agreement and in that agreement it is mentioned that the company will buy potato at 35/- per Kg after the harvest season at any circumstances. So, It seems that Bishamber, would be assured of the price of potato as agreed upon, even if their is any decrease in market price at any given point of time. But, one negative side may be that what would be the price Bishamber to get if their is a price rise in the market in between.

3. Essential Commodities(amendment) Bill 2020:-

This bill allow the Central Government to regulate the supply of some of the food items only under the extraordinary situation like- war, famine etc. 

The impose of stock limits on agricultural produce only if there is a very high increase in prices. Stock limit may be imposed when their is a 100% price increase of the horticulture produce and 50% price increase of non-perishable agricultural food items. Some provisions like to remove commodities like cereals, pulses, onion & potatoes from the list of essential commodities. Another provision, to imposition of Stockholding limits on such items except "extraordinary circumstances like war & famine" and also this will bring investment for farms such as cold storages.

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