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Monday, February 8, 2021

Why did the three Central Farm Laws of India Enacted in 2020 Become Controversial?

First let us find out what exactly are these three controversial farm laws of India enacted in 2020. 

Essentially, these three laws comprise of the following two new central laws and an existing law amended. 

The two new acts that got passed by the Indian Parliament and became laws are the following:

1. The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act 2020. ( Click Here to Read it in the e-gazette!)

2. Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act 2020. (Click Here to Read Online!)

Concurrently the existing Essential Commodities Act got amended to make the laws consistent with the existing laws by promulgating an Ordinance as below:

Essential Commodities (Amendment) Ordinance 2020. (Click Here to Read it Online!)

I am not going to the details of the clauses of these laws and amendments. 

Essentially what these new laws achieve is de-regulation of essential food items grown by farmers all over the country. So far, farm produces were regulated by various laws and rules. Free movement, storage or trading of farm produces have been under various government controls.

With the above said laws in actual operation across India, the existing practices would become a thing of the past! Both farmers and traders get freed of government regulations! 

In a way it's good for everyone when viewed in an innocent manner.

But things won't go that simple when greedy merchants and business houses get a free hand to operate unregulated. There are all chances that such forces would now get ample opportunities to work out things in their favor and the sufferers would be the original farm producers and the consuming public!

Unscrupulous traders and business people with their money power can create situations in which farmers are forced to sell their produces at throw away prices during harvest season and hoard those produces indefinitely to create shortages and price rise, exploiting the consumers too. In effect a few large business groups with the ability to mobilize large funds would be in a position to make huge profits!

Both the farmers and the consuming public are going to suffer while a few would get opportunities to make extreme profits with no effective regulations in force!

If one examine carefully, it can be found that the existing provisions in the Indian Constitution and the laws had been to safeguard against such an undesirable situation getting developed in the country!

Obviously, these laws can only do good when the business community in India, doing businesses in farm produces, is essentially good and non-greedy. Unfortunately, that's not the case! A few unscrupulously greedy businessmen or corporates can make a small percentage of people getting richer while a larger percentage of people struggling for existence!

That means grave consequences for the common people of India in the time to come when these laws become fully operational. Farmers might not get reasonable prices for their efforts while the consuming public might face rising prices year after year in essential commodities including food items such as grains, cereals, vegetables, fruits, oils etc. And the governments in the country cannot interfere as they used to do so far!

The haste in which the present government of India enacted these laws bypassing some constitutional provisions creates suspicion in the mind of any unbiased citizen capable of understanding these laws and the Indian economy.

Now only some farmers from a few states surrounding New Delhi are protesting in an uncompromising manner as they seem to be the first ones who are directly affected by these laws. They're demanding withdrawal of these laws immediately!

Many citizens like me wonder why the government is rigid on this! There's no sense or logic for any well meaning government to go this far against a long, massive people's agitation of such a magnitude!

Only time will tell what's going to happen in India with the new farm laws of India enforced!

What's perplexing than these laws or the agitations, is the blind support the government of India is getting now from sections of the society on account of political polarizations!






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