In a historic rejig, the government has enacted a new set of laws that seek to liberalize agricultural trade, give farmers freedom to sell their products outside of regulated mandis, and enter into contracts with buyers at a previously agreed price, in the hope of Los Markets will help producers receive better prices. For more than a month, farmers in Punjab and Haryana have vehemently protested these new laws, fearing they will weaken the existing minimum price support (MSP) regime and leave them to market forces.
But what do farmers outside of Punjab and Haryana think about the new laws? mint spoke with five farmers from different states, ahead of nationwide protests scheduled for Sept. 25. Here is what they had to say:
Durjan Singh Patel, Jabalpur, Madhya Pradesh
The government says the new laws will give us the freedom to sell anywhere. I am not sure what I can do with this freedom. If the mandi system collapses, where will we sell our crops? I cannot understand why the big private companies will pay us more than what we are getting now. Instead of this freedom, our Prime Minister should have ensured that Minimum Support Prices (MSP) are not just on paper. Every year the MSP increases, but does not buy. What good is advertising MSP? Now I have to sell my corn; the market price is 800-900 rupees per quintal, less than half the MSP (1,850 rupees per quintal), and the prices of diesel and fertilizers have risen dramatically. As a small farmer, I am also concerned that (after the changes in the Essential Commodities Law) there will be hoarding by traders and I will have to spend more on food that I do not grow.
Deepak Pagar, Nashik, Maharashtra
Bharosa toot gaya (My confidence is broken). In June, when the ordinances were introduced to free us from the shackles of local merchants, I celebrated by distributing sweets. Three months later, the government suddenly imposed a ban on the export of onions. For months during the shutdown, we sold onions at a loss, and just as prices were improving, exports were banned. It was as if the government removed our handcuffs (promising unrestricted access to the market) and then put shackles on our feet.
Kannaiyan Subramaniam, Chamarajanagar, Karnataka
Currently, we only sell 30-40% of our products in APMC’s regulated markets. We need more APMC markets closer to the farm gate and more buyers in these markets and more transparency in transactions. We do not ask the government for freedom. This freedom is for large corporate buyers to buy in bulk, bypassing the mandi system. I have the experience of selling my perishable products to corporate buyers. They do not pay one rupee more than the prevailing market rate. The new system will replace the large number of intermediaries (in the agricultural supply chain) with some big players. I can fight and argue with local merchants, these corporate buyers don’t even pick up their phones. Initially, start-ups will enter, which have received many investments, and then they will be acquired by large companies. It is sad that the state is withdrawing from its regulatory role and has even given up its powers under the Essential Products Act (to impose stock limits on commerce during the rise in retail prices). This will also hurt consumers.
Father Chendil Kumar, Cuddalore, Tamil Nadu
In principle, I believe that the laws are beneficial to farmers. But the government should have discussed it in detail within Parliament. In my state we are free to sell our products outside the mandis. So the farmers don’t protest here. Rice producers here generally receive prices close to the MSP. But the prices of fruits and vegetables are very volatile. Sometimes we can’t even recover the cost of transporting the product. I’m not sure the new laws can solve this problem.
Ranjit Singh Raju, Sri Karanpur, Rajasthan
We have decided to protest against the new laws with all our might. The government leaves us in the hands of big business and backs down on its MSP promise. Our crops of moong, cotton, bajra and corn are ready to hit the markets, but all crops are sold at prices below support. Today, due to low crop prices and higher input costs, we are getting into debt. By making trade duty and tax free, the government is paving the way for one nation-two markets. Farmers can’t negotiate prices now, but at least we have the mandis to turn to. New bills will lead to chaos. Nobody will know what prices are offered abroad. This is not freedom for farmers. This is setting the stage for our chutti (freedom of agriculture).
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