New Delhi: In order to ensure that farmers get remunerative prices for their produce, raise their income and livelihood status, Parliament on Sunday evening passed the two landmark legislations -- The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020. The procurement at the minimum support price (MSP) will continue, which was the major bone of contention between the Centre and opposition parties.

Union Minister of Agriculture and Farmers’ Welfare Narendra Singh Tomar said that these two bills, which were passed by the Lok Sabha on September 17, are aimed at transforming agriculture in the country and raising farmers’ incomes, and will replace ordinances promulgated on June 5, 2020.

Tomar said that the Centre under Prime Minister Narendra Modi has taken several landmark decisions in the last six years to ensure that farmers get remunerative prices for their produce, and for raising farmers’ incomes and livelihood status. He clarified that the procurement at MSP will continue. He said that full protection has been ensured to farmers in these legislations.

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 intends to create an ecosystem where the farmers and traders will enjoy freedom of choice of sale and purchase of agricultural produce. It will also promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under the State Agricultural Produce Marketing legislation.

The farmers will not be charged any cess or levy for sale of their produce and will not have to bear transport costs. The Bill also proposes an electronic trading in transaction platform for ensuring a seamless trade electronically. In addition to mandis, freedom to do trading at farmgate, cold storage, warehouse, processing units, etc, farmers will be able to engage in direct marketing thereby eliminating intermediaries resulting in full realization of price.

The Centre has clarified in the clearest possible terms that the procurement at MSP will continue and farmers can sell their produce at MSP rates .The MSP for Rabi season will be announced next week. Mandis will not stop functioning and trading will continue as before. Under the new system, farmers will have the option to sell their produce at other places in addition to the mandis

The e-NAM trading system will also continue in the mandis. Trading in farm produce will increase on electronic platforms. It will result in greater transparency and time saving.

The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020, envisions to empower farmers for engaging with processors, wholesalers, aggregators, wholesalers, large retailers, exporters, etc, on a level playing field. It offers price assurance to farmers even before sowing of crops. In case of higher market price, farmers will be entitled to this price over and above the minimum price.

It will transfer the risk of market unpredictability from the farmer to the sponsor. Due to prior price determination, farmers will be shielded from the rise and fall of market prices. It will also enable the farmer to access modern technology, better seed and other inputs. It will reduce the cost of marketing and improve income of farmers. Effective dispute resolution mechanism has been provided for with clear timelines for the redressal.

The government has clarified that farmer will have full power in the contract to fix a sale price of their choice for the produce. They will receive payment within three days. 10,000 Farmer Producer Organizations (FPOs) are being formed throughout the country. These FPOs will bring together small farmers and work to ensure remunerative pricing for farm produce. After signing the contract, farmers will not have to seek out traders. The purchasing consumer will pick up the produce directly from the farm. In case of dispute, there will be no need to go to court repeatedly. There will be local dispute redressal mechanisms.

Prime Minister Modi hails Bills

Prime Minister Narendra Modi on Sunday described the passage of two farm sector bills as a ‘watershed moment’ in the history of Indian agriculture, asserting that they will ensure a complete transformation of the farm sector and empower crores of farmers. In a series of tweets after Rajya Sabha passed the bills by voice vote amid din created by protesting opposition members, Modi said these proposed laws will liberate farmers from numerous adversities as he noted that peasants were for decades bound by various constraints and bullied by middlemen.

Modi asserted, "I said it earlier and I say it once again: System of MSP will remain. Government procurement will continue... We are here to serve our farmers. We will do everything possible to support them and ensure a better life for their coming generations." These bills will add impetus to the efforts to double income of farmers and ensure greater prosperity for them, he said.

"Our agriculture sector is in desperate need of the latest technology that assists the industrious farmers. Now, with the passage of the bills, our farmers will have easier access to futuristic technology that will boost production and yield better results. This is a welcome step," said the Prime Minister said.

"A watershed moment in the history of Indian agriculture! Congratulations to our hardworking farmers on the passage of key bills in Parliament, which will ensure a complete transformation of the agriculture sector as well as empower crores of farmers," Modi added in another tweet.

Opposition cries foul

Opposition parties led by the Congress have criticised the farm bills tabled and passed by the Rajya Sabha on Sunday, saying they will not sign on the ‘death warrant’ of farmers. They have claimed that the two Bills are aimed at benefiting big corporate houses and ending the minimum price based procurement by the government.

KK Ragesh (CPI-M), Derek O'Brien (TMC), Trichi Siva (DMK) and K C Venugopal (Congress) moved resolutions for sending the two bills to a select committee of the House for consideration before they are taken up for passage.

Initiating the discussion on these two bills, Congress leader Partap Singh Bajwa, who hails from Punjab, described the proposed laws as “ill-conceived and ill-timed” and said his party “completely rejects” them. “We will not sign on death warrants of farmers,” he said.
TMC leader Derek O'Brien demanded that the Bills should be sent to a select committee. “These bills need to be debated in Parliament. You have the numbers to have your way and we have the right to have our say and to keep you on track of Parliamentary democracy. This is a very, very dangerous trend we are following. The Select committee is not a hand break...it is there to contribute. I am going to move the select committee,” he said.