DH Deciphers | What was wrong with the farm laws? Why won't farmers end the protest?

Now that Modi has announced repealing the three farm laws, it's worth taking a quick look at why they had triggered vociferous protests

Now that Prime Minister Narendra Modi has announced repealing the three farm laws, it's worth taking a quick look at why the legislation had triggered such vociferous protests in the first place. And let's also understand why farmers aren't going to end their protests any time soon:

Which are the three farm laws that the government will repeal?

The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020; the Farmers' (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020, and the Essential Commodities (Amendment) Act, 2020. These were introduced first as ordinances in June 2020 and enacted by Parliament in September of the same year.

Described as much-awaited reforms by the Modi government, the laws allow farmers to sell their harvest directly to private players and enter into contract farming with private companies. Before the laws, farmers could sell their produce only at government-run Agricultural Produce Market Committee (APMC) markets through middlemen. The Essential Commodities (Amendment) Act, 2020, allows traders to stock essential food items, which was hitherto illegal.

Also read: How farmers, organized and well funded, faced down Modi

The laws appear to benefit farmers. Why were they upset then?

Farmers fear that the farm sector reforms could lead to the abolishment of the minimum support price (MSP) regime and end the APMC markets. Under the MSP regime, the government buys farm produce at a predetermined price. The MSP ensures that farmers are guaranteed a certain price, irrespective of the constraints of demand and supply. Farmers have been demanding a law to ensure the purchase of farm produce at the MSP. They also want the government to abolish the amendments to the Electricity Act.

Didn’t the new laws open new avenues for farmers to sell their produce?

They did but farmers feared that the new avenues could weaken demand in the traditional APMC markets and force them to sell at prices below the MSP.

Also read: Farm laws repealed: Change of heart or strategic withdrawal?

What was the problem with the contract farming law?

Farmers fear it would lead to the corporatisation of agriculture and eventually ease them out of farming. The sale of farm produce would be bound by contracts, thereby making the MSP regime ineffective, they argue. The law allowed farmers to enter into a direct agreement with the buyer before the sowing season and sell their produce at the price agreed at the time of signing the contract.

What about the amendments to the Essential Commodities Act?

Farmers fear that the removal of stock limits on food items would lead to indiscriminate stocking by big corporate houses which could eventually manipulate the markets.

Also read: After repeal of farm laws, farmers now demand legal cover for MSP; protests to continue

Why aren't farmers winding up their protests?

Farmers now want a law to ensure the purchase of farm produce at MSP, which they insist was an integral part of the current agitation. They also want the withdrawal of the penal clause to the law related to curbing the practice of stubble burning that causes air pollution in parts of North India, particularly the National Capital Region, during the winter.

How will the government repeal the laws?

The government will now have to move separate bills in the Lok Sabha to repeal the laws. It could just allow the repeal of the bills without any discussion. If the Opposition insists on a debate, the winter session will witness a round of government-bashing, which the treasury benches will have to bear as they have agreed to repeal the laws.

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