The New Reform Bills are a Death Warrant to Indian Farmers
- frontpageinitiative
- Aug 14, 2021
- 2 min read
The Indian Government has passed three new reform bills that Indian farmers believe are “Anti-Farmer”. Under the guise of promoting “direct marketing” (eliminating the middle-man), and intra-state trading outside of the Agriculture Markets (services involving bringing the product from farmers to consumers), the government is blatantly privatizing the farmers’ market.
These three new bills push farmers into the hands of corporations, incentivizing them to the
private sector.
The problems with the NEW FARMER BILLS:
First Law, relating to trade in farm produce
There is no guarantee for a Minimum Support Price (MSP); the price set by the government of India to purchase directly from the farmer. The rate is to safeguard the farmer to a minimum profit for the harvest, if the open market has a lower price than the cost incurred. As you can see, eliminating the procurement of MSP makes Indian farmers vulnerable and easy to take advantage of.
For example: traders can cheat farmers and default on payments to farmers
Second Law, relating to Contract Farming
Farmers will not be able to determine the price of their goods.
Small farmers are being suppressed, since those who do not yield high rates of profits will not attract sponsors, thereby preventing them from practicing contract farming.
Things like large-scale stockpiling allows corporations to set and regulate their own rates, which may even be lower than the farmers, putting them at a disadvantage among customers.
Third Law, relating to the amended Essential Commodities Act
Removes commodities such as cereals, pulses, oilseeds, edible oils, onions, and potatoes from the list of essential commodities, leaving big corporations to freely control and monopolize these commodities.
These bills also deny the government from accountability in regulating prices, leaving
everything in the hands of the corporations, making the agricultural sector vulnerable to mass privatization. These corporations will have control over farmers' produce and will become the new market forces, leaving the farmers of India stranded.
Sources:
Published February 5, 2021
Written by Kalyan Madoori ~ Edited by Deeba Mehr ~ Graphics created by Samridhi Verma
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