The Modi government took a massive step in changing the traditional marketing system of our country by passing new agriculture bill 2020 through both the houses of the parliament. The move has been welcomed with various strikes across India. So, what are these agricultural bills really?
Three bills were passed by the parliament which on paper try to develop an image of free markets. The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 were passed. The Essential Commodities (Amendment) Bill was passed earlier in the week.
These bills allow the traders and farmers to do trade outside of their APMC markets, that is they can sell their goods in any APMC of any state. Also, the farmers will be allowed to stock their farm produce as per their wish. And lastly contract farming will be allowed, that is the famers can sign a contract with private firms prior to the farming season on what the price will be and the quantity to be produced.
Although the bills look strong on paper the farmers of the country are more worried about their implementation. There is fear amongst masses that MSP will be removed, even though the govt. assured they won’t do any such thing. The farmers also fear that as there are no obligations of licenses they will be exploited by the traders. As for the freedom for selling produce to far away markets, they asked the government. about who will pay for the costs incurred to transport goods there.
In all, the US and some of the European countries had tried the concept of free markets but they failed and what makes our govt. think it’ll work here is beyond my imagination.