Thursday 13 August 2020

GOI three Ordinance for farmers is Good or Bad?

Govt three ordinance and farmer
A Farmer against Govt

GOI passed the three ordinances approved at a cabinet meeting which was held on June 3. This decision is after the COVID-19 situation in India and wants to boost the benefit of Indian farmers and transform the agricultural sector. 

This article will help to understand the problem of farmers and the central Govt Ordinance. How these ordinances will affect the farmer's income and why the farmers are against it. Govt thought for farmers to increase their income but the reality and its impact is different. 

So, let us see and talk about them.

1. The first ordinance, 2020 by GOI- The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) 

As per the GOI, this ordinance will create an environment where farmers and traders will have the ability of free choice of sale and purchase of agricultural products. It will also eliminate barriers to inter- and intra-state trade and commerce outside physical market premises, which are normally regulated by state government Agricultural Produce Market Committees (APMCs). The ordinance aims to create additional trading opportunities outside established APMC market yards to help farmers get more competitive prices due to additional competition.

How it Impact the Indian farmers?

This is a good thing to sell their agriculture product anywhere in India. Why do we think that a farmer is happy to sell their agriculture product from the outer state? A farmer is happy to sell their product at the village level or maximum block or district level. Because in India there more than 60 percent were small farmers and they do not have the budget to sell their products to another state. The second thing there is nothing mention the selling price of products like MSP. There should be clearly mentioned that a farmer's product should be bought at the MSP level. GOI wants to backfoot from the MSP point of view. 

In Bihar, the APMCs act was implemented in 2005-2006 where farmers have to freedom to sell directly to wholesalers. You thought it is good for farmers but the result was just the opposite because the wholesaler buys the product on its rate, not on the govt rate. The current situation of Bihar is that the MSP of Maize is 1850 and farmers have to force the sell the maize at Rs 600-1000 per quintal. And the farmers become labor in a few years.  There are so many reasons these are two of them.    

2nd Ordinance for Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services.

According to the GOI’s press release states that this ordinance will empower farmers to engage with processors, wholesalers, aggregators, wholesalers, large retailers, and exporters on a level playing field without any fear of exploitation. Also aims to and said that it transfers the risk of market unpredictability from the farmer to the sponsor. Also, enable the farmer to access modern technology and better inputs or promote the farmer with modern technology. It will reduce the cost of marketing and improve farmer incomes.

How this ordinance impacts farmers?

The Govt will promote the farmers according to them by meeting the farmers to different private sector industries to buy their product and assign an agreement for doing agriculture or produce. But they must understand that if a farmer assigns a contract farming or agreement with industry which is written in English and what about the terms and conditions of an Industry. Indian farmers is not well educated and they do not have enough source to take them in court for an issue. He is a very simple person and wants to sell his good at the nearest place at a good price to provide food to his family and complete their daily needs. Every company and industry have their own policy and rules. And everyone knows a businessman can not think for others' profit. Second thing if a farmer assigns a legal contract and provides his land on rent then he becomes labor which depends on others for a job. He can not fill his family needs by this method. 

In Gujrat, there is a farmer who grows the Potato for Pepsico company and the company puts a claim on farmers of more much amount than you think. I have seen one more contract by a company in which the company can take a loan on farmer land. Suppose if that company will not pay the loan than who will pay. 

3. The Essential Commodities (Amendment) Ordinance 2020

According to the GOI this ordinance, all the basic food items including cereals, pulses, oilseeds, edible oils, onions, and potatoes will be removed from the list of essential commodities. Which will help address private investors’ concerns of excessive regulatory interference in their business operations? This ordinance specifies that these commodities can only be regulated through stock limits under situations such as war, famine, extraordinary price fluctuations, or natural calamities. However, agricultural processors and exporters will remain exempted from stock limit impositions even under these “catastrophic” conditions.

How it Impact the farmers?

the first thing all the farmers do not have storage houses to store the produce because most of the farmers are small and marginal farmers. Only some big farmers can store the produce for some time. Do only traders have the ability to store the produce and govt want to remove the middle man how it is possible?. Second thing if the farmers have the ability to store the produce then why the farmers the so much KCC loan?  I have these two questions. This type of ordinance will get profit only to the middle man and traders, not to the actual person which is a farmer. 

Farmers want his crop good price at the right time. Only this is the main thing a generally farmers want from the govt and security of selling his crop. A farmer will agree to pass these ordinary if govt passes a rule that no one buys the crop produce below the MSP. If govt pass this rule with these above ordinances then we can say some benefits will get the farmers otherwise I can not see any benefits of these ordinances. At last, we just want to support the farmers to get some benefits and support from farmers otherwise after few years the value of farmers and numbers of farmers will decrease due to loans and loss in crops.

If govt passes these ordinance means that just govt want to close the Mandis and govt procurement where farmers have some expectations and security to sell his produce . If Govt thought again about the current situation of the farmer and understand the problem of farmers than we have some good expectations for Indian farmers otherwise no option to killing the farmers and need of farmers to the nation.

If you like this article please share before wasting time to support the farmers because the farmer is the backbone of our nation. And already we have seen in COVID 19 times where all the people were staying at home and farmers were producing food for the nation. In lockdown all no one is buying a car, bike, gold, silver, and property just buying food for his family. If the farmers stop producing the food then who will provide food for your next generation.

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