Explaining the farmers’ angst and why the farm laws are inequitable

Agriculture is not only an agency of food production for the nation, it is also a means of employment for over 50% of our countrymen. 50% of cultivable land is owned by 10% of the people (farming families), while the rest are low holding farmers or landless labourers. The latter do contract farming through informal agreements of theka or batai of big farmers and absentee farmers.

The harshest problem for farmers has been low prices to their produce. Swaminathan Committee in 2006 recommended that the minimum support price (MSP), announced by the central government, be 50% above the cost (labour plus inputs) incurred. But the MSP for most crops has been only 10-20% higher than the cost. Many crops, including vegetables, are outside MSP’s purview. The worst part is that the MSP is not implemented (even) in the Mandi; farmers get 10-20% less than the MSP for their produce.

Lockdown accentuated farmers’ grief further. Its imposition coincided with the onset of harvesting for Rabi crop. Low holding farmers sell their produce soon after harvesting so that they can pay the cost of harvesting and other debts. But Mandis (markets) were closed.

The government opened procurement only after six weeks, that too requiring online registration and approval from Tehsil (rendered inaccessible due to closure of transport). As a consequence, half the farmers had to sell wheat at Rs. 16 or 17 per kg (against the MSP of Rs. 19.25 per kg) to private traders from cities. In Mandis or APMC, farmers could have got a slightly better deal. The prices of fruits and vegetables crashed bringing heavy losses to farmers.

The three agriculture related bills introduced by the government in parliament and passed with unprecedented disregard for rules and reasoning, turn a blind eye to these grievances and give free hand to traders and corporations.

The Amendment of Essential Commodities Act removes all restrictions from hoarding food produce (that were introduced to curb artificial scarcity created to raise prices once produce comes out from the farmers) and trade barriers.

The Farmers’ Produce Trade and Commerce (FPTC) Act, allows traders to purchase and sell agricultural produce bypassing APMC, eventually making APMC ineffective and farmers vulnerable to dictates of traders.

The Farmers Agreement on Price Assurance and Farm Services (FAPAFS) Act legalizes contract farming, so that big businesses and companies can cultivate vast swaths of land on contract. The act would render crores of bataidarsjobless as big and absentee landlords would be tempted to contract lands to companies.

Farmers’ awakening on this issue is a positive sign. It must grow and political parties must support them.

(Professor VK Tripathi, a retired Professor from IIT, Delhi, is a Gandhian and building public awareness is his mission)