Three agrarian reform Bills introduced by the Centre have evoked mixed reactions among experts in the State. While some are apprehensive about the possible impact of the proposed legislation on the State’s farm sector, others feel its implications will be minimal.
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020, the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020, and the Essential Commodities (Amendment) Bill were passed by the Lok Sabha earlier this week.
Apart from fears of an end to Minimum Support Price (MSP) and the Centre intruding into States jurisdiction, P. Indiradevi, Professor and Director of Research (Retired), Kerala Agricultural University, says the proposed laws are not in the best interest of farmers. The Bills are largely favourable to big buyers, corporates, exporters, traders, and processors who want to control the food and agriculture business.
The second Bill relates to contract farming, which until now is not practised in the State. The Bill seeks to provide a framework on farming agreements for the sale and purchase of farm produce. It is feared that contract farming will open up the State’s farm sector to multinational companies and corporates who look to buy the entire produce from large tracts of land.
“The so-called big people will lure farmers into an agreement to sell their produce by offering lucrative prices. This may lead to intensive farming using a lot of chemicals, fertilizers, and pesticides without considering land sustainability and environmental impact. There is also a chance of spread of monocropping,” says Ms. Indiradevi
While the impact of the first Bill will be more on States having Agricultural Produce Market Committee (APMC) mandis, experts say the implications will be felt in States such as Kerala where there is no APMC or APMC Act. This legislation should be considered along with the Essential Commodities Bill. While one Bill allows more choices for farmers to market their produce at higher remunerative prices, the other one facilitates bulk purchasing.
“In the future, there is a chance that the competition will become less and the so-called big buyers, who will be a few, can reach an understanding among them on the price and exploit farmers,” Ms. Indiradevi says.
Jacob Joseph, legal academic and an expert in agricultural laws, says the reforms will lead to buyers hoarding farm produce, causing inflation, and other consequences such as shortage of food items in the public market.
G.S. Unnikrishnan Nair, retired Additional Director of Agriculture, however, says the first Bill will open avenues for better prices for farm commodities. Kerala already has a free marketing system as far as commodities such as vegetables and paddy are concerned. Contract farming reforms will be more relevant in States with large per capita land possession and big farms.
“It is also a welcome measure that a framework will be formed and a guaranteed price will be assured by the contract farming agency to the farmer,” he says, adding that the removal of export restrictions should have been addressed in the Bill.
V. Mohandas, AITUC leader and secretary, Chithira Kayala Padashekara Samiti, termed the Bills pro-corporate that will only benefit speculative traders and promote stocking of produce.
