Farmers’ protests that are witnessed in parts of the country against the three Central ordinances that seek to augment and liberalise the agricultural trade are ill-informed.

Farmers’ outfits are of the view that the ordinances, particularly ‘The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020 or the FPTC Ordinance’ that allows sale and purchase of crops outside the premises of APMC (agricultural produce market committee) mandis, will end the minimum support price (MSP)-based Government procurement.

But the actual fact is it was introduced in order to annihilate monopoly of the Agricultural Produce Market Committees (APMCs). And that the farmers’ outfits are actually sounding paranoid about it.

The truth remains that the ordinance which is to be ratified in the current session of parliament, merely provides an additional marketing avenue. The choice now is left with the farmers, whether to sell directly to processors, retailers or exporters.

 But nowhere are they denied taking their produce to mandis or APMCs. Not only that, the Government agencies can still continue with the procurement from the marketplaces regulated by the State.

One noticeable thing about the current famers’ protests is that they are mainly taking place in Haryana and Punjab, the States which have a concrete and efficient system of mandis or APMCs where MSP-based wheat and paddy procurement is in vogue which is worth around Rs 80,000-90,000 crore per annum.

The beneficiaries of this lucrative system are not confined to the farmers but include a mighty lobby of commission agents, who function in multiple ways right from facilitating procurement at the mandis to extending crop loans.

So, obviously any change in the status quo of things, which is considered beneficial to such powerful lobby, is destined to face resistance. And for the very similar reasons, it is not surprising to see the resistance to these agro reform laws finding solidarity among farmers in other States, which are similarly situated as regards public procurement system in agriculture.

The Essential Commodities Act was amended to end the restrictions on stocking food produce and The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020 or FAPAFS was promulgated to legalise contract farming which will enable big businesses and companies to cultivate vast lands on contract and allows farmers to enter into contracts to produce crops. 

And the ordinance on APMCs or the FPTC Ordinance 2020 legitimises the sale of crops without a prior contract. Besides, it enhances the ability and freedom of the farmers to perform inter-State and intra-State transactions without any curbs.

Further, private parties can now establish online trading forums for trading in agricultural commodities doesn’t matter whether inter-State or intra-State, but this shall be subject to Government guidelines; and now, a dispute-resolution system is available for both buyers and farmers at the end of the sub-divisional magistrate/executive magistrates.

The problem that writs large is when the farmer embarks upon the process of   sowing crops, the buyer is unknown; and only after the harvest is over, he traipses for locating a buyer and these legislations bring a perfect solution to this problem.

Therefore, under the present circumstances, the Government should elaborately clarify and assure that it is not in the intent of the legislation to affect MSP-based procurement operations. And on the contrary, these laws shall facilitate intra- and inter-State movement, end restrictions on stocking and storing agricultural produce, enable farmers to enter into contracts for supplying their produce directly to organised agri businesses and other private parties, promote free trade, fair competition and free participation. 

However, to get the best results of these legislations, it is necessary to come up with facilities to cater to the post-harvest needs like food processing clusters in rural areas, requisite endeavour to connect the farmer with the market nationally and globally, ensuring reliable power supply, relating to agro-processing plants, and necessary steps be taken to uplift and augment the power sector and end all kinds of patronisation of theft in power.

(The writer is a legal and public policy expert and a Distinguished Adjunct Professor of Law & Media Studies at School of Mass Communication at KIIT University. He can be reached at sjyotiranjan3@gmail.com)