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..
...they can collectively decide what price they will buy the product (because no msp).
(There are corruption that need to be weeded out in the old system but its a working system that provide farmers security and it needs to be worked on, not discarded)
3) Farmers bill prohibits states from collecting tax from buyers who do not buy from mandi therefore buyers will naturally not go to mandi when they have another option “what is the point of going to mandi is there is no buyers there?”
4) without revenue from the tax state government will have to pay MSP from the budget and not from the mandi revenue which is slowly lead to mandi system stoping and small farmers suffering under corporates and other huge farmers (reinstating feudal system).
This will push back millions of small farmers and expose them to cruel risk of land grabs, high interest loan traps, share cropping, coercion, exploitation and violence by the dominant caste farmers.
5) Also, there is no law asking for a written contract from corporate before getting in business with farmers, in case of any unfair practices poor farmers will have to fight corporates in court which is near to impossible.
6) 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.
other issues include
7) the electricity (amendment) bill 2020, this bill takes away the power of State Government to give subsidized electricity to farmers. As a result farmers will have to play the entire bill for their electricity upfront before the subsidy is send to them.
Here is a thread on why protest is largely concentrated in Punjab and Haryana.
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.
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.