New Policy for Farmers and why there is agitation in Punjab and Haryana?


New Policy for Farmers


§ New scheme for the farmers in India in easy terms can be called “One India, one agriculture market”.

§ Union Cabinet leads by Prime Minister Of India Shri. Narendra Modi has sanctioned “The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020”; The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020; and The Essential Commodities (Amendment) Ordinance, 2020.

“The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020”


§ The main aim of this initiative is to create such an environment where farmers and traders both have the freedom of choice to sale and purchase of farm produce.

§ This will open up various options for the farmers and help them get a better price for their farm produce.

§ The most important benefit of this ordinance is that it will encourage barrier-free inter-state and intrastate and commerce outside the physical premises of markets notified under State agricultural produce marketing legislations.

§ Generally, there are restrictions on farmers in selling their farm goods outside the notified APMC (Agricultural Produce Market Committee).

§ But now, this ordinance will adjust the existing MSP (Minimum Support Price) procurement system and this will help to allow the stable income to farmers.

§ It will also offer an electronic trading platform for the transaction which will ensure a seamless trade electronically.

§ Small farmers can join hands to one another to create a producer’s group or FPO kind of organization.

The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020

§ Earlier agriculture was risky and inefficient for both input and output management. This agreement authorizes the farmers for engaging with exporters, wholesalers, large retailers, partnership firms, companies, etc.

§ This ordinance will grant an effective dispute resolution mechanism with clear timelines for redressal.

§ It will also reduce the cost of marketing of farmers by giving access to modern technology and better inputs.

§ The minimum duration for the agreement will be of one year for one seasonal crop or one production cycle of livestock. And the maximum will be of five years.

§ The agreement can be signed between a farmer and a sponsor; a farmer, sponsor, and a third party.

The Essential Commodities (Amendment) Ordinance, 2020.

§ This amendment allows the central government of India to modulate of definite food items only under remarkable circumstances such as war, famine, natural calamity, and extraordinary price rise.

§ This ordinance must be imposed on any stock limit must be based on price rise and order for regulating the stock limit of any agricultural produce may be issued under this act only if:

i. There is a hundred percent increase in the retail price of horticultural produce.

ii. There is a fifty percent increase in the retail price of non-perishable agricultural foodstuffs.

§ This increase over the price prevailing immediately preceding twelve months or average retail price of the last five years, whichever is lower.

This “One India, One Agriculture Market” policy is considered as an innovative step towards the new transformation in the field of agriculture and raising the farmer's income.

Why there is agitation in Punjab and Haryana?

· At the proverbial battleground Kurukshetra in Haryana on Thursday 10th September 2020, about a thousand farmers stood facing the establishment. An eyeball to eyeball confrontation which quickly turned kinetic.

· The farmers of Punjab and Haryana have been protesting against these three ordinances mentioned above.

· As the angry farmers marched towards the grain market wanting to gather there for a rally the police reigned lotties on them for defying administrative orders in the midst of a raging COVID crisis. For the two hours, the protest continued blocking the national highway 44.

· The reason behind this protest is that the farmers have a fear that these ordinances may disturb the mandi system of marketing and also hold back the selling products at minimum selling.

· The leader of BKU ( Bharatiya Kissan Union) stated, that the farmers believed that these three schemes will lead the way to the destruction of these agricultural laborers and this will expose them to the urge of the market forces.

· The farmers alleged that in the name of reform the government is reformed to disrupt the MSP regime.

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