Govt draft proposal provides necessary clarifications on new farm laws; check details

The government sent a draft proposal to provide all necessary clarifications on the new farm laws to the agitating farmers.

Image courtesy: ANI

New Delhi: As thousands of farmers continue to protest at various borders demanding the repeal of new farm laws, the government sent a draft proposal to provide all necessary clarifications on the Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 and Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020.

It has proposed to make necessary amendments on key issues.

1. Issue - It is feared that Mandis formed by the Mandi Committees will be weak and the farmer will be caught in the clutches of private mandis.

- New provisions provide more options to sell the crop, keeping the old option open. The farmers will now be able to sell their crop outside the mandi from any warehouse, cold storage or even from their fields.

-There will be more competition in buying the crop of the farmer as new traders will also be able to buy the crop, which will allow the farmer to get more value.

- All the inter-state barriers of trade and within the state will be removed.

- The farmer will have the option to sell in the market as before and also have the option to sell at the government procurement center on the support price.

Proposal: By amending the Act, it can be provided that the state government can implement the system of registration of private mandis. The state government should also be able to determine the cess/fee up to the rate of cess/fee applicable in APMC mandis.

2. Issue - By not arranging the registration of the trader, the system is only on the basis of a PAN card for crop purchase from the farmer, who is likely to be cheated.

- With a view to providing more options of marketing to the farmer in the new Acts, there is a system of doing business to the merchant on the basis of PAN card.

- The law empowers the Central government to make rules in relation to the registration of merchants, the manner of trade, and the arrangement of payment.

- There is a provision to implement a registration system on the basis of documents other than PAN cards.

Proposal: The state governments would be empowered to formulate rules for such registration in order to address the doubts raised so that they can make rules in the interest of farmers as per local conditions.

3. Issue - The farmer does not have the option to go to the civil court for resolution of the dispute, thereby, would be deprived of justice.

-Provision has been made to enable the farmers to get justice at a quick, easy, and low cost at the local level within 30 days.

- The arrangement in both the Acts is to resolve the dispute on the basis of the mutual agreement through the Conciliation Board.

Proposal: In addition to the provision provided in the new laws for resolving disputes, the option of going to civil court can also be given.

4. Issue - There is no system of registration of agricultural contracts.

- Under the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020, there is a provision to make arrangements for registration of agreements by the state government.

- The state government also has the right to establish registration authority.

Proposal: Till the state governments make a system of registration, suitable arrangements will be made to provide a copy of all written agreements to the concerned SDM office within 30 days of the signing of the agreement.

5. Issue - Big industrialists will occupy the land of the farmer. The farmer will be deprived of land.

- There can be no agreement on the sale, lease, and mortgage of agricultural land under the Agricultural Agreements Act.

- There is a provision that no structure can be constructed on the farmer's land, and if constructed, it will be removed by the crop buyer at the end of the contract period.

- If the structure is not removed, it will be owned by the farmer.

Proposal: The provision is already clear, yet it will be made clear that no loan can be availed by the buyer (sponsor) on the structure to be built on the land of the farmer and neither such structure can be taken by him.

6. Issue - Farmer's land will be attached 

- It is a clear provision under Section 15 of the Agricultural Agreement Act that attachment can not be made for any recovery against the farmer's land.

- Under this act, no penalty can be imposed on the farmer while the buyer trader can be fined 150 percent of the outstanding amount.

- The trader is bound to buy the crop at a full price under the agreement, there is no restriction on the farmer.

Proposal: The provision is clear, yet clarification will be issued if there is any requirement.

7. Issue - The farmers will lose the option to sell their produce through the government agency on the support price and trade of all agricultural produce will go in private hands.

- In the new Acts, there is no interference in the support price and government procurement.

- State governments have the right to establish centers of support price and are free to establish these centers in mandis.

- The Central government has continuously strengthened the procurement system, and the example can be seen in this year's bumper purchases of rabi and Kharif crops.

Proposal: Central government will give a written assurance regarding the procurement arrangements of MSP.

8. Issue - The Electricity Amendment Bill, 2020 should be abolished.

- Electricity Amendment Bill has been put up for discussion.

- Regarding DBT, it is proposed that the state government will deposit the subsidy payment in advance directly to the consumer's account.

Proposal: There will be no change in the present system of payment of electricity bills by the electricity distribution company from the farmers.

9. Issue - Air Quality Management of NCR Ordinance, 2020 should be abolished.

- Under the present provision, the burning of stubble can lead to fines and criminal action.

Proposal: The objections of farmers will be appropriately addressed under the provision of the Air Quality Management of NCR Ordinance, 2020.

10. Issue - Repeal of agriculture reform laws.

Proposal: The government is ready to consider the provisions of the law, which the farmers have objected, with an open mind.