India’s farmer protests have made news around the world. They began last fall and have continued until now. Although the protests have faded from mainstream headlines, the systemic issues at hand that are affecting the livelihoods of millions cannot be ignored.
In September 2020, the Indian government passed three laws: The Farmers’ Produce Trade and Commerce Act, The Farmers Agreement On Price Assurance And Farm Services Act, and The Essential Commodities Act. Until now, farm produce was bought and sold primarily in government controlled markets. Only licensed traders could buy in these regulated markets. The laws allow for farmers to sell directly to the private sector outside of the government controlled markets (APMCs). They allow parties in the private sector to establish contracts with farmers and place orders in a tax free setting. They remove laws that previously made hoarding by the private sector illegal. The laws mandate that if there are problems farmers cannot go to court. Instead, they must go to a regional magistrate that will have the final say in the matter. Moreover, nobody can file a case about the specifications of the laws passed against any parties within the central or state government, including the regional magistrates farmers are instructed to approach in the case of the problem.
Farmers are protesting the details of these laws. The farmers are saying that if the private sector is allowed to open markets that may be sheltered from taxation, they will wipe out the government controlled markets. If these government controlled markets are effectively discontinued, then the private sector will have an effective monopoly to force the prices of goods down. Farmers need government controlled markets because they offer a minimum support price (MSP). MSP is offered primarily for staple crops to prevent farmers from taking severe losses if there is an oversupply of crops. When government controlled markets are discontinued, private sector markets will be under no obligation to offer the same economic support to farmers.
The government proposed allowing state governments to create laws to regulate the private sector in agriculture. Farmers have rejected this by arguing it simply places responsibility in another power without taking any meaningful change. The government has suggested civil courts may be used by farmers to take problems to a ruling authority, which was not accepted considering the bias with which the farming laws were created in the first place to benefit private markets. The government has agreed to consider a written assurance for MSP with broader eligibility than now, extending to all crops instead of just staple ones in all markets (both public and private). Farmers argue a written assurance is a get out of jail free card as it is not the same as a legal right that ensures protection if parties are wronged.
Until the full demands of the farmers are met, protests will continue.
I hope you all found this post informative and eye opening! Bye for now!
