“Is BHARATH BANDH worthful for farmers or Not"
Here is the KEY BRIEF POLICY analysis of 3 ORDINANCES ON FARMERS
1)THE FARMERSPRODUCE TRADE AND COMMERCE (PROMOTION AND FACILITATION).
2) THE FARMERS (EMPOWERMENT AND PROTECTION) AGREEMENT ON PRICE ASSURANCE AND FARM SERVICES ORDINACE.
3) THE ESSENTIAL COMMODITIES (AMMENDMENT) ORDINANCE .
The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020
Farming agreement: The Ordinance provides for a farming agreement between a farmer and a buyer prior to the production or rearing of any farm produce. The minimum period of an agreement will be one crop season, or one production cycle of livestock. The maximum period is five years, unless the production cycle is more than five years.
Pricing of farming produce: The price of farming produce should be mentioned in the agreement. For prices subjected to variation, a guaranteed price for the produce and a clear reference for any additional amount above the guaranteed price must be specified in the agreement. Further, the process of price determination must be mentiod.
From BJP GOVT END
The farmer's produce trade and commerce(promotion and facilitation) ordinance July 2020
HIGHLIGHTS: This bill allows intra- state and inter state trade of farmers produce beyond the physical premises of APMC markets. State government are prohibited from levying any market fee, cess or levy outside APMC areas.The Ordinances collectively seek to
(i) facilitate barrier-free trade of farmers’ produce outside the markets notified under the various state APMC laws,
(ii) define a framework for contract farming, and (iii) impose stock limits on agricultural produce only if there is a sharp increase in retail prices. The three Ordinances together aim to increase opportunities for farmers to enter long term sale contracts, increase availability of buyers, and permits buyers to purchase farm produce in bulk.
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020
Trade of farmers’ produce:
The Ordinance allows intra-state and inter-state trade of farmers’ produce outside:
(i) the physical premises of market yards run by market committees formed under the state APMC Acts and
(ii) other markets notified under the state APMC Acts. Such trade can be conducted in an ‘outside trade area’, i.e., any place of production, collection, and aggregation of farmers’ produce including:
(i) farm gates,
(ii) factory premises, (iii) warehouses,
(iv) silos, and
(v) cold storages.
2) electronic trading- An electronic trading and transaction platform may be set up to facilitate the direct and online buying and selling of such produce through electronic devices and internet. Market fee abolished: The Ordinance prohibits state governments from levying any market fee, cess or levy on farmers, traders, and electronic trading platforms for trade of farmers’ produce conducted in and outside trade area.The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020
Farming agreement: The Ordinance provides for a farming agreement between a farmer and a buyer prior to the production or rearing of any farm produce. The minimum period of an agreement will be one crop season, or one production cycle of livestock. The maximum period is five years, unless the production cycle is more than five years.
Pricing of farming produce: The price of farming produce should be mentioned in the agreement. For prices subjected to variation, a guaranteed price for the produce and a clear reference for any additional amount above the guaranteed price must be specified in the agreement. Further, the process of price determination must be mentioned in the agreement.
The Essential Commodities (Amendment) Ordinance, 2020
Regulation of food items: The Essential Commodities Act, 1955 empowers the central government to designate certain commodities (such as food items, fertilizers, and petroleum products) as essential commodities. The central government may regulate or prohibit the production, supply, distribution, trade, and commerce of such essential commodities. The Ordinance provides that the central government may regulate the supply of certain food items including cereals, pulses, potatoes, onions, edible oilseeds, and oils, only under extraordinary circumstances. These include: (i) war, (ii) famine, (iii) extraordinary price rise and (iv) natural calamity of grave nature.
Stock limit: The Ordinance requires that imposition of any stock limit on agricultural produce must be based on price rise. A stock limit may be imposed only if there is: (i) a 100% increase in retail price of horticultural produce; and (ii) a 50% increase in the retail price of non-perishable agricultural food items. The increase will be calculated over the price prevailing immediately preceding twelve months, or the average retail price of the last five years, which is very lower.
SWAMINATHAN COMMITTE REPORT:
Gramin Agriculture Markets: The Standing Committee was headed by ms swaminathan and noted that availability of a transparent, easily accessible, and efficient marketing platform is a pre-requisite to ensure remunerative prices for farmers.
1 Most farmers lack access to government procurement facilities and APMC markets.
Small and marginal
farmers (who hold 86% of the agricultural landholdings in the country) face various issues in selling their produce in APMC markets such as inadequate marketable surplus, long-distance to the nearest APMC markets, and lack of transportation facilities.
The average area served by an APMC market is 496 sq. km., much higher than the 80 sq. km. recommended by the National Commission on Farmers.
GOVT CASE STUDY IN BIHAR Bihar repealed its APMC Act with a similar objective to attract private investment in the sector and gave charge of the markets to the concerned sub-divisional officers in that area.This resulted in a lack of required marketing infrastructure as the existing infrastructure eroded over time due to poor upkeep. In unregulated markets, farmers faced issues such as high transaction charges and lack of information on prices and arrival of produce.The Committee of State Ministers, constituted in 2010 for agricultural marketing reforms, observed that complete deregulation of markets did not help in attracting any private investment. It noted that there is a need for an appropriate legal and institutional structure with a developmental type of regulation to ensure orderly functioning of markets and to attract investment for infrastructure development.
The Standing Committee on Agriculture (2018-19) recommended that the central government should create marketing infrastructure in states which do not have APMC markets (i.e. Bihar, Kerala, Manipur, and certain union territories).
the Ordinances do not repeal the existing APMC laws (as done by Bihar), but limit the regulation of APMCs to the physical boundaries of the markets under their control.
The Ordinances may result in increased competition, which may also make APMCs more efficient in providing cost-effective services for marketing.
Further, for farmers selling their produce outside the APMC markets, the prices prevailing in APMC markets can serve as a benchmark price, helping in a better price discovery for farmers.
WHAT FARMERS ARE DEMANDING
1) REPEAL 3 NEW FARM LAWS,
2) MAKE MSP STATE PROCUREMENT LEGAL RIGHT
3) IMPLEMENT SWAMINATHAN REPORT 4)STOP JAILING& PENALISING FARMERS FOR POLLUTION 5)SLASH DIESEL PRICES FOR AGRI USE BY 50%,
6) RELEASE JAILED RIGHTS ACTIVISTS.
WHAT FARMERS ARE CLAIMING MISTAKES FROM THE 3 ORDINANCES:
1) NEW FARM LAWS ARE ANTI - FARMER
2)GOVT MAY DISCONTINUE MINIMUM SUPPORT PRICE
3) LAWS A BID TO BENFIT BIG CORPORATES,
4) LAW CRUSHES SMALL FARMERS.
WHAT CENTRAL GOVT ARE SAYING
1) FARMERS CAN SELL CROP ANYWHERE
2) MSP WILL REMAIN AS IT IS
3) MANDI SYSTEM TO REMAIN SAME
4) FARMERS PROFIT MARGIN WILL GO UP
5) FARMERS TO BE EXPLOITATION FREE.
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