By: Dheeraj Upadhyay
NewDelhi: BJP and their staunch supporters are trying their best to defend the Central government decision to repeal the three farm laws, as Modi’s Masterstroke rather than relent or defeat. Though the decision was more of a political compulsion to save the political capital in polls bound states, especially in UP and Punjab where farmers wield significant influence rather than moving ahead with bold agriculture reforms.
The repeal of farm laws is the biggest political retreat by the BJP since it assumed power in 2014. It also vindicates the fact that BJP lacks legislative acumen and certainly missing political managers like Arun Jaitely. This decision has dented the pro reform image of Modi globally. Though this is not new, earlier in his first tenure Modi govt failed to implement the crucial land acquisition law and now the party succumbed to resilient farmers on the contentious farm laws.
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However like several economist and analyst, Supreme Court-appointed farm panel associate Anil Ghanwat termed ‘this as the most regressive step by PM Modi, as he chose politics over agriculture reform and farmers’ betterment”.
Amid Covid-19 pandemic, in September 2020, the government, with an intent to reform India’s agriculture, brought legislation of three farm laws— the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020; Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020, and the Essential Commodities (Amendment) Act, 2020 under the farm bill.
The first Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 brought with an aim to facilitate barrier-free trade of farm produce outside the markets notified under the various state APMC rules.
Meanwhile, the APMC regulations require farmers to only sell to licensed middlemen in notified markets, mostly in areas where farmers live, instead of an open market. This restricts the farmers to sell their produce outside their local APMC markets.
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The APMC mandis/markets were first set up in the 1960s, with primary aim to check distress sale of harvest and ensure better price discovery for the farmers produce by creating necessary infrastructure. However, over the years, these APMC markets have become harbinger of cartelisation of registered middlemen and acted as barriers for farmers to get fair price of the produce.
But farmers will not relent easily, now they are seeking MSP guarantee bill. Since, there are more than 100 crops in India but MSP covers only 23 listed crops. MSP procurement happens, only in three-four states for maximum two three crops, out of which 85 per cent are farmers from Punjab and Haryana. Since MSP is not ensured in most states, the farmers feel cheated at the time of bumper crop. As per the OECD-ICRIER report, farmers across India have suffered a loss of around Rs 45 lakh crore between 2001- 2017 as a result of low payment than their input cost dues.
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BJP’s myopic political gain is evident through the repeal of these three farm laws in poll bound states of UP and Punjab, but the big-bold reform image of India and Modi has got severe dent.