And more than half of all government procurement of wheat and paddy in the last five years has taken place in Punjab and Haryana.
according to Agriculture Ministry data. More than 85% of wheat and paddy grown in Punjab and 75% percent in Haryana, is bought by the government at MSP rates.
Punjab government earns an annual revenue of about 3500 crore from these purchases.
Among other things, most prominent reason for the #FarmerProtest is MSP or minimum support price, which is threatened by these laws.
1) MSP is one of the things farmers are protesting for, now let me explain why MSP not mentioned in the act is an issue.
Since its not mentioned its not legal so there is nothing thats stopping them from stopping MSP, farmers won’t be able engage in legal battles.
2) Right now in mandi system when an auction is held its the seller’s market farmers decides the price, the more buyers the bigger price farmers get.
But with this bill buyers don’t have to go to mandi, they can purchase it directly this will become a buyers market..
For the people who still don’t understand “why farmers are protesting the bill?”.
Here are the reasons. 1) MSP is not mentioned in the bill, they are only verbally saying its there, we all know how that works. #DelhiChalo#FarmersProtest
Without MSP (or minimum support price) specifically mentioned in the bill private companies can stop purchasing crops at MSP anytime they want and small time farmers can hardly go into legal battles with big corps.
2) removal of stock limit and allowing of bulk purchase and storage through the change in the Essential Commodities Act could bring large corporate players into the agriculture space. they could also skew the playing field, with small farmers can’t match them in bargaining power.