Farmer’s Protest: Raison D’être / Why?

Reasons Behind the Farmer’s Protest in India :

1. The Bill does not allow the farmer to approach the Court. If there is a dispute, SDM will decide. If the decision is not acceptable then the farmer must approach the Joint Secretary of central govt.
   a. Imagine a 2-acre farmer putting a fight with Corporations with legal departments in front of SDM, OR by traveling to Delhi to approach Joint Secretary.
2. Buyer will draw a contract and if a farmer cannot meet the agreement then SDM can impose fines up to Rs. 500,000.
   a. Imagine farmer reading/negotiating Airtel or Jio contracts.
   b. Who would be successful in getting these service providers a promised speed?
   c. Chips maker had a contract with potato farmers in Punjab and later it rejected potatoes on the ground that potatoes are not of the same shape or size. Remember potatoes grow in soil and are not manufactured in the cast.
3. The Bill waives tax (Punjab 8.5 and Haryana 6%) collected by Mandi boards from private buyers.
   a. This removes competition for private players from Mandi Boards.
   b. This revenue is collected from central agencies to build rural area infrastructure. Who will now fill that tax hole?
4. Bill does not guarantee MSP or even mentions it.
   a. Allows private players to buy farm produce at a lower price.
5. The Bill removes the Essential Commodity Act.
   a. Allows hoardings and raises prices for food items.
6. The Bill supporters claim that it removes the middleman (Arthiya).
   a. But the Bill introduces now bigger sharks removing small fish.
   b. Arthiya works on a 1-2% service fee, who facilitates purchase from buyer bases on service fee like any other dealership or service provider.
   c. There is no mark up in the purchase price.
7. The crop being a 6-month cycle, Arthiya is like ATM to farmers providing credit for 6 months for purchases of inputs.
   a. Now with Arthiya being removed, who will provide credit?
   b. Where does the farmer go for money to buy farm inputs and his daily needs?
   c. The Bill or govt has not created an alternative for this.
8. Why protests are limited to Punjab and Haryana:
   a. Farming is a state subject. States like Bihar had removed APMC in 2006 leaving only private players.
   b. Punjab and Haryana have developed a Mandi system over the years where any produce brought into Mandis cannot be purchased below MSP.
   c. Crops as Rice, are sold in states like Bihar at price below the MSP.
   d. Farmers from neighboring states sell their produce at MSP in Punjab or Haryana as these states have a better Mandi system which offers MSP.
   e. The Haryana BJP govt has stopped farmers from other states to sell their crops in Haryana which itself stands opposite to Central Govt’s new Bills.