Home > Finance > MSP will stay, farmers will get investment, technology: Govt on farm sector bills

MSP will stay, farmers will get investment, technology: Govt on farm sector bills


NEW DELHI: Defending its two bills on farm sector introduced in Lok Sabha, the government on Monday said they will help the farmers get a remunerative price for their produce as well as private investments and technology.

Agriculture Minister Narendra Singh Tomar, while introducing the bills to replace the ‘The Farmers’ Produce Trade And Commerce (Promotion And Facilitation) Ordinance, 2020 and ‘The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, said that almost 86 per cent of farmers have agricultural land of less than two hectares and they are often unable to benefit from minimum support price (MSPs).

The Minister, however, assured the House that the
MSP will stay.

The Congress and other parties have been opposing the legislations, alleging it will undermine the safety net provided to the farmers by the
MSP system and will lead to their exploitation by big companies.

The ordinances seek to provide barrier-free trade for farmers’ produce outside notified farm mandis, and empower farmers to enter into farming agreements with private players prior to the production for sale of agri-produce, according to the government.

Tomar said the bill will help the farmers as they are unable to invest much in their farm and do not attract investments from others.

He also rejected the criticism that it was beyond the remit of the union government to legislate on these issues, saying opposition members should trust the Centre.

The Opposition has alleged that the Centre brought in the legislations without consulting the states under whose domain ‘agriculture’ and ‘mandis’ come.

The minister asked the opposition members to study the content of the bills deeply before “running to oppose them”.

He stressed that farmers will get a lot of benefit from these laws as they can enter into an agreement with private traders for selling their produce.

These agreements will be about the produce and not the farmland, he asserted, rebutting suggestions that farmers may lose ownership of their land.

Opposing the two bill, the leader of the Congress in Lok Sabha Adhir Ranjan Chowdhury said constitutional provisions are very clear that agriculture is a subject on the State List.

“Such a law can only be brought by state governments…. Through this bill, the centre will nullify Agricultural Produce Market Committee (APMC) law enacted by various state governments,” Chowdhury said.

The central government is not competent to make such a law, he asserted, adding,”This is a case of legislative overreach and a direct attack on the federal structure of the Constitution.”

Chowdhury pointed out that farmers of Punjab and Haryana are protesting against these two bills.

TMC member Saugata Roy claimed that farming will move into the hands of capitalists due to these legislations.

Congress MP Shashi Tharoor said the bill violates the basic tenets of federalism enshrined in India’s Constitution.

“It is beyond the legislative competence of this house to enact any law on agriculture, which is a domain of the state governments,” Tharoor said

The bill endangers the right to food of the countrymen, he added.

The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020, bars state governments from imposing taxes on sale and purchase of farm produce undertaken outside the mandis and give farmers the freedom to sell their produce at remunerative prices.

Besides, any conflicts arising from the transactions will be dealt with exclusively by the Sub Division Magistrate (SDM) and District Collectorate within 30 days and not in the jurisdiction of civil courts.

At present, farmers are allowed to sell their agriculture produce at 6,900-odd APMC (Agriculture Produce Marketing Committees) mandis spread across the nation. There are restrictions for farmers in selling agri-produce outside the mandis.

The ordinances were promulgated on June 5, 2020. However, the Union Agriculture Ministry notified the two Ordinances on July 20.

The Ordinance also permits electronic trading of farmers’ produce in the specified trade area. Private players, farmer producer organisations or agricultural cooperative society can establish and operate such platforms.

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