Hopes fears arising out of farm Bills

Sushil Manav

Tribune News Service

Chandigarh, September 22

Of the three controversial farm Bills passed by the Parliament, the Farmers Produce Trade and Commerce (Promotion and Facilitation) Bill has angered farmers the most as they apprehend that the minimum support price (MSP) regime would be dismantled once it is implemented.

Their apprehension about the Bill — the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill — is related to the MSP. They fear corporates will enter the market by virtue of this legislation and exploit them.

The third Bill — the Essential Commodities (Amendment) Bill — is hardly being talked about.

Inderjit Singh, vice-president of the Akhil Bharatiya Kisan Sabha, however, maintains the third Bill is equally damaging as it is aimed at benefitting corporate houses, but its “dangers” have been eclipsed by the other two Bills.

Agriculture experts say the Farmers Produce Trade and Commerce (Promotion and Facilitation) Bill nowhere states that the present system of the MSP would be discontinued after the implementation of the legislation.

“The Bill provides for an alternative platform where farmers can sell their produce outside the mandis notified under the state Agricultural Produce Marketing Committee (APMC) Act. The alternative platform could be any trade area such as a cold storage, a warehouse, a factory premises or even a farm. Selling produce in such trade areas will be exempted from market fees, which is levied on procurement in mandis. Having said that, nothing stops farmers from selling their produce in mandis,” an expert said.

The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill provides for a national network on farming agreements that empowers farmers to engage with agribusiness firms, processors, wholesalers, exporters and large retailers for farm services and sale of future produce at a mutually agreed remunerative price.

However, farmers, particularly in Haryana and Punjab, are not impressed. They say the present system has worked well for them over the years.

“A farmer with a meagre landholding cannot think of transporting his produce to other districts or states to get a better price. For him, the present system of receiving the MSP and of borrowing money from arhtiyas for seed, pesticides and other inputs works well,” Inderjit Singh said.

Arhtiyas, too, favour the present system as they get 2.5 per cent commission on the MSP. They will lose their commission if farmers decide to sell their produce outside the mandis.

As far as entry of corporates into the field is concerned, both farmers and arhtiyas are wary.

“The corporate houses won’t mind suffering initial losses to eliminate their competitors. They are likely to offer a handsome price to farmers, even higher than the MSP. Hence, arhtiyas will lose business and this will also provide the government an excuse to absolve itself of the responsibility of paying the MSP. Once this happens, the corporate will exploit farmers at their own will, as hapless farmers won’t have any alternative,” Inderjit Singh said.

from The Tribune https://ift.tt/3iWWjbx