India’s president on Sunday approved three controversial agricultural bills amid nationwide protests by farmers who say the new laws will stunt their bargaining power and instead allow large retailers to have control over pricing.
Farmers’ organizations say one of the three laws could lead to the government stopping buying grain at guaranteed prices, a move that would disrupt wholesale markets which have so far ensured fair and timely payments to farmers.
President Ram Nath Kovind’s approval is likely to further stir protests, leading farmers’ organizations said.
Prime Minister Narendra Modi has already lost a key political ally from the northern Indian state of Punjab, one of India’s two bread basket states, where farmers form an influential voting bloc.
The country’s main opposition Congress party has also backed the protests.
Under the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill — one of the laws already approved by parliament — growers can directly sell their produce to institutional buyers such as big traders and retailers.
Nearly 85% of India’s poor farmers own less than 2 hectares (5 acres) of land and they find it difficult to directly negotiate with large buyers.
Modi’s administration has clarified that the wholesale markets will operate as usual, and the government only aims to empower farmers to sell directly to buyers.Bharatiya Kisan Union (BKU) and other farmers’ organisations took to the streets Thursday near Haryana’s Kurukshetra, protesting against three ordinances notified as a follow-up to the reforms announced in the ‘Atmanirbhar Bharat’ package by the Modi government in June.
The protests turned violent after police allegedly lathi-charged the agitating farmers when they tried to move to the rally venue — Pipli Mandi — by breaking down barricades. While the Superintendent of Police Astha Modi denied the allegations of lathi-charge, the BKU said that members of their union have suffered injuries.
“They used the coronavirus outbreak as an excuse to stop the rally. It’s a murder of democracy,” BKU state unit chief Gurnam Singh told ThePrint.
The farmers organisations were protesting against three ordinances announced on 5 June — the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020, and an amendment in the Essential Commodities Act, 1955 — which they believe are “anti-farmers”.
While the government stated that these ordinances will help move towards a freer and more flexible system for both parties involved (farmers and sponsors that can be individuals, partnership firms, companies, limited liability groups and societies), the farmers argued that in the garb of these ordinances the government is trying to do away with the Minimum Support Price (MSP) regime.
Their demands include — firstly, a roll back of all three ordinances, secondly the mandi system to remain in place, thirdly, their loans be cleared, and fourthly — in line with the 2006 Swaminathan report by The National Commission on Farmers — a law should be made for MSP to be at least 50 per cent more than the weighted average cost of production and if the MSP is not paid, it should be a punishable crime.
