The Indian Agriculture Acts of 2020 Transformative Reforms Amid Controversy
In September 2020, the Indian Parliament introduced three major agriculture acts, collectively known as the Farm Acts, designed to transform the agricultural sector. These acts, approved by both the Lok Sabha and the Rajya Sabha, received presidential assent on September 27, 2020. However, the path to these reforms was fraught with intense protests and significant political debate, culminating in their repeal in November 2021.
Background and Genesis
According to Schedule 7 of the Indian Constitution, agriculture has long required improvements in terms of efficiency and productivity.In 2017, the central government proposed model farming acts as an initial step towards these reforms. Unfortunately, these suggestions saw limited implementation at the state level. As a result, in June 2020, the central government issued three ordinances, which were subsequently formalized into acts by September 2020. These acts included:
- The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act of 2020
- The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020
- The Essential Commodities (Amendment) Act, 2020
Salient Provisions of the Acts;
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020:
- Aimed to create an ecosystem where farmers and traders could freely choose where to sell and purchase farm produce.
- Enabled barrier-free trade of farm produce outside the physical premises of markets notified under state agricultural produce market laws.
The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020:
- Provided a framework for contract farming through agreements between farmers and buyers before the production or rearing of farm produce.
- Provided crucial protections for farmers' interests, including effective dispute resolution mechanisms.
The Essential Commodities (Amendment) Act, 2020:
- Removed items such as cereals, pulses, oilseeds, edible oils, onions, and potatoes from the list of essential commodities, eliminating stock limits on these items except under extraordinary circumstances.
Reasons in support of the Farm Acts
Supporters praised the Farm Acts as transformative reforms expected to benefit all stakeholders—farmers, industry, and consumers. Key arguments included:
- Empowerment of Small and Marginal Farmers: With 86% of Indian farmers being small and marginal, the acts promised better bargaining power and access to technology, potentially enhancing productivity.
- Integrated Market Creation: The acts aimed to establish a more integrated market, foster competition, and improve marketing efficiency.
- Consumer Benefits: By streamlining the agricultural market, consumers could expect better quality produce at competitive prices.
Opposition and protests
Despite these advantages, there was a lot of hostility toward the activities. Opponents contended that the changes were seen as:
- Corporate-Friendly: Some farmer organizations and opposition parties claimed the acts favored corporate interests, potentially undermining farmers' livelihoods.
- Anti-Farmer: Concerns were raised that dismantling state-regulated markets could lead to the exploitation of farmers by large corporations.
- State Opposition: States like Punjab, Haryana, and Kerala passed resolutions against the reforms, with the Kerala legislative assembly seeking their withdrawal.
The Repeal
In response to relentless protests, particularly from farmers in Punjab and Haryana, the Supreme Court stayed the implementation of the Farm Acts in early 2021 and formed a four-member committee to review them. Eventually, in November 2021, the Prime Minister announced the repeal of the Farm Acts. The government committed to introducing a single bill in Parliament to nullify the three acts and cease the operations of all boards and offices constituted under these laws.
Conclusion
The Indian Agriculture Acts of 2020 represent a significant yet contentious chapter in the history of Indian agricultural policy. While the intended reforms aimed to modernize and liberalize the agricultural sector, the widespread protests and political pushback underscored the complex interplay of stakeholders' interests. The repeal of these acts underscores the critical necessity of inclusive and consultative approaches to policymaking in such a vital sector as agriculture.