Updated: October 21, 2020 11:09:15 am
Punjab CM Captain Amarinder Singh, along with the MLAs, is meeting Tuesday with Vice President of Governor Singh Badnore, to seek his consent to the agricultural bills passed by the Assembly. (Photo: Twitter / @capt_amarinder)
After more than a month of protests by farmers against the three agricultural laws enacted by the central government, a special session of the Punjab Assembly on Tuesday (October 20) not only rejected the laws by unanimous resolution but also passed three agricultural amendment bills remove Punjab from the purview of central laws.
What is the justification given by the state for amending the three core farm laws?
In each of the three bills, the government of Punjab has stated that the application of central laws to the state is being modified to “restore agricultural safeguards for farmers through the regulatory framework of the Agricultural Products Markets Act. Punjab of 1961 to secure and protect the interests and livelihoods of farmers and agricultural workers, as well as all others engaged in agriculture and related activities.
All three bills mention the 2015-16 agricultural census to underscore that 86.2 percent of farmers in the state are small and marginal, and most own less than two acres of land. Consequently, they have limited access to multiple markets and lack the necessary bargaining power to operate in a private market.
What the bills really mean
In addition to the governor, the Punjab government’s new agricultural bills need the consent of the president as they seek to amend the laws passed by the central government. Otherwise, at best they can serve as a symbolic political statement against the Center’s agricultural laws.
All three bills underline the importance of farmers getting a level playing field in the form of a fair price guarantee.
The bills also make agriculture, agricultural markets and land the primary legislative domain of the state.
So what are the key features of the Farmers Agreement (Empowerment and Protection) on Price Guarantee and Agricultural Services (Special Provisions and Punjab Amendment), 2020?
The bill seeks to address the fears of state farmers of being forced to sell their produce for less than minimum support price (MSP) with an amendment whereby the sale of wheat and rice will be valid only if the seller pays a price equal to or greater than the MSP announced by the central government.
It establishes that any person or company or corporate house will be punished with a prison sentence of no less than three years and a fine if they sign a contract in which the farmer is obliged to sell his production at a price lower than the MSP.
This bill also allows the farmer to go to civil court, in addition to seeking the remedies available under the central law in case of differences with the buyer of his product.
The push towards wheat and rice can only be explained by the dominance of these two crops in the state. According to the Punjab Mandi Board, Punjab contributes 32% of these two food grains to the central pool despite its relatively small acreage.
What do the experts say about the modifications?
The amendments received a mixed response from state agronomists.
Dr Sucha Singh Gill, former Director General of the Center for Research in Rural and Industrial Development (CRRID) said: “This has been done to meet the demands of farmers and will discourage private actors from buying at prices below the market price. MSP “.
However, he asked: “Why have you only covered two crops? They must cover the entire range of crops; we have marketable surpluses of cotton, corn, some legumes and even milk, for which the state decides the MSP ”.
However, Dr. SS Johl, former Vice Chancellor of Punjab Agricultural University and National Professor of Agricultural Economics at the Agricultural Research Council of India, called the bill part of “vote bank policy” and He said the amendments will block private actors from the state.
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Besides MSP, what is the other big change made under the amended bills?
While the core law abolished any market fees or licenses for private players outside of the APMC, Punjab bills have reintroduced it.
The bills say the state government can notify a fee that will be charged to private traders or e-commerce platforms for trading and trading outside of the mandis established under the Punjab Agricultural Products Markets Act of 1961 .
These fees will go to a fund for the welfare of small and marginal farmers.
Farmers block a railway line with their tractors during a protest in Punjab. (Express photo: Jaipal Singh)
And what are the amendments in the Special Provisions for Agricultural Products and Trade (Promotion and Facilitation) and the Draft Punjab Amendment Bill 2020?
By stating that one of the direct consequences of the Central Law will be the annulment of the MSP mechanism, this bill also provides a punishment for sellers who buy wheat or rice at a price lower than the MSP.
Declares the status quo in the state regarding the APMC Act 2016. Dr. PS Rangi, former consultant to the Punjab State Farmers Commission, said that by bringing the entire state under its purview, the bill ensures that private actors will also be regulated by the rules of the mandi government. They will have to obtain licenses and pay market fees to buy products from the state.
The bill also states that no punitive measures will be taken against anyone for violating the provisions of the central law.
Lastly, what are the amendments to the Essential Commodities (Special Provisions and Amendment) Bill 2020?
This bill, the state says, is intended to protect consumers from hoarding and black marketing of agricultural products. Underlining that the production, supply and distribution of goods is also a state issue, the bill affirms that the Central Law seeks to grant unlimited power to store essential products to merchants.
Under this bill, the state of Punjab will have the power to order, regulate or prohibit production, supply, distribution, and impose stock limits in extraordinary circumstances, which may include famine, price increases, natural calamities or any other situation.
Also in Explained | How the Mandis of Punjab get more rice than the state produces; the UP-Bihar link
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