"I apologize to the nation ...": Prime Minister Says 3 Farm Laws To Be Cancelled

Farm Laws To Be Cancelled, Says PM Modi.

Prime Minister Narendra Modi on Friday announced the repeal of three agricultural laws that have been at the center of fierce protests by farmers for the past 14 months. The U-turn comes a few months before the election in several states, including the agricultural region of Punjab and Uttar Pradesh.

“When I apologize to the nation, I want to say with an honest and pure heart that something may be lacking. , "Said the Prime Minister in his address to the nation.

So, what are the three farm laws? And why are they so controversial?

Law 1: Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act

This would allow "contract farming" or allow farmers to produce a specific crop at a pre-agreed price by contracting directly with agricultural companies, exporters or large buyers.

The government has said : The price of crops under this law will be determined by market forces - that is, farmers will be paid more to plant crops as needed.

The government prescribes a law (which allows unrestricted domestic and inter-state trade) so that farmers can sell their crops at the maximum price they need, thereby generating higher returns.

Another benefit, the government said, would be the elimination of agricultural intermediaries, as farmers would now be able to communicate directly with end-buyers - agribusinesses.

What the farmers said : Farmers were worried that the new law would remove the MSP - the guaranteed minimum price for their produce. They also feared the 'corporatization of agriculture' - a situation in which large corporations use their financial strength to impose unreasonably low prices on farmers.

Farmers were concerned that small and marginal landowners would be subject to such adverse agreements if the selling price was not regulated. Congress MP Chidambaram underlined the concern, calling for the clause to link the MSP with the lower prices offered by private buyers.

The law did not explicitly stop MSPs (and the Prime Minister did not insist on it) but farmers were concerned that allowing prices to settle outside regulated areas — that is, outside the mandi — would make it harder for the government to monitor and ensure every transaction. Reasonable prices.

Law 2: Farmers Produce Trade and Commerce (Promotion and Facilitation) Act

What the government said : The government said the law would allow farmers to trade in all domestic produce internally and interstate without restriction, which they could, in principle, sell at markets of their choice, even in other states. Farmers do not have to pay the tax levied by the government.

Currently farm products are conducted by declared Agricultural Marketing Committees or ABMCs in declared wholesale markets or mandis. Farmers take their produce to local markets, where licensed intermediaries sell it from them - at auction-fixed prices - to institutional buyers.

What the farmers said : However, farmers pointed out that due to restrictions on travel and storage and associated costs, it may be difficult for small and marginal farmers in practice to obtain better prices in more distant markets. That is why, they argued, some chose to sell in local wholesale markets, even though prices elsewhere were better.

Farmers were outraged by the wording of Section 8 of the Act, which stated that farmers could approach the Sub-Divisional Magistrate (SDM) for dispute resolution. They argued that they - especially small farmers - were not powerful enough or influential enough to approach the SDM office.

Law 3: Essential Commodities (Amendment) Act

The law was intended to remove the power of the government to control the stocks of essential food items, except in exceptional circumstances. It also removed some ingredients such as cooking oil and onions from that list.

This further helped the government to regulate the distribution of such items or to re-list them. The stock limit will be based on the price increase in the market.

There is no real difference of opinion between the farmers and the government in this law.

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