Thread by @MaverickInsight

New Agriculture Bills: Bone Of Contention
-Propelling turmoil or a boon for poor farmers..

Three Bills on agriculture reforms were introduced in the Parliament to replace the ordinances issued during the lockdown ..

The Farmers’ Produce Trade &Commerce Bill, 2020
•The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020
•The Essential Commodities (Amendment) Bill, 2020
The Farmers’ Produce Trade & Commerce Bill has following provisions ---

•Opens up agricultural sale &marketing outside the notified APMC-mandis for farmers
•Removes barriers to inter-State trade
•Provides a framework for electronic trading
•Prohibits State governments from collecting market fee, cess or levy for trade outside the APMC .

The Farmers Agreement of Price Assurance & Farm Services Bill relates to contract farming. It has following provisions-----
•Provides framework on trade agreements for the sale and purchase of farm produce.
•The mutually agreed remunerative price framework envisaged .

The written farming agreement, entered into prior to the production or rearing of any farm produce, lists the terms and conditions for supply, quality, grade, standards and price of farm produce and services.
The Essential Commodities (Amendment) Bill-----

• Removes cereals, pulses, oilseeds, edible oils, onion &potatoes from the list of essential commodities. It will deregulate the production, storage, movement &distribution.
• Central is allowed regulation of supply during war,famine,extraordinary price rise& natural calamity.

•Imposition of any stock limit on agricultural produce must be based on price rise. A stock limit may be imposed only if there is a 100% increase in retail price of horticultural produce; and a 50% increase in the retail price of non-perishable agricultural food items

Opposing Arguments:
1.Against the Spirit of Cooperative federalism
-Since agriculture&markets are in List II–the ordinances are being seen as a direct intrusion in the state-ambit.
-The Centre,however,argues that trade & commerce in food items is part of the concurrent list.

2.End of MSP
-Critics view the dismantling of the monopoly of the APMCs as a sign of ending the assured procurement of food grains at MSP.
-To the Centre’s ‘one nation, one market’ call,critics have sought ‘one nation, one MSP’.

3. No mechanism for price fixation
-The Price Assurance Bill, while offering protection against price exploitation,does not prescribe the mechanism for price fixation.
-There is apprehension that the free hand given to private corporate houses could lead to farmer exploitation.

-Critics are apprehensive about formal contractual obligations owing to the unorganised nature of the farm sector and lack of resources for a legal battle with private corporate entities.

4. Food security undermined

-Easing of regulation of food items would lead to exporters,processors& traders hoarding farm produce during the harvest season.
-This could undermine food security since the States would have no information about the availability of stocks.
-Chances of black marketing.

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