The Opposition is staging protests against the recent farm reforms though the measures contained in the three Acts will enable barrier-free trade in agricultural produce and empower farmers to engage with investors of their choice. These Acts, which are a bid by the Centre to empower growers and double their income by 2022, will free them from unnecessary legislation, bring fundamental changes, give impetus to investment and increase employment in the agriculture sector, which in turn will strengthen the economy of the country. The promotion of contract farming will help farmers reach an agreement with food processing units/exporters on an individual or organised basis. It will also enable them to reduce the input of fertilisers and seeds, reduce other costs and use modern techniques to maximise products and get a better market as they will have the opportunity to work according to national-international demands.

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act seeks to create an ecosystem where the farmers and traders enjoy the freedom of choice relating to sale and purchase of produce. This facilitates remunerative prices through competitive alternative trading channels to promote efficient, transparent and barrier-free inter and intra-State trade. This was proposed because there were restrictions to selling agri-produce outside the notified Agricultural Produce Market Committee (APMC). And growers could sell the produce only to registered licensees of the State Governments. This legislation will open more choices for farmers, reduce marketing costs and get them better prices. It will also help growers of regions with surplus produce to get better prices and consumers of regions with shortages, lower prices. The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act seeks to provide for a national framework on agreements that empowers growers to engage with agri-business firms, processors, wholesalers, exporters or large retailers for services and sale of future produce at a mutually agreed remunerative price framework, in a fair and transparent manner.

This has been done because agriculture is characterised by fragmentation due to small holding sizes in India and has certain weaknesses such as weather dependence, production uncertainties and market unpredictability. This makes it risky and inefficient in respect of both, input and output management. Now the risk of market unpredictability will be transferred from the grower to the sponsor. Farmers have been given adequate protection and an effective dispute resolution mechanism has been provided with clear redressal timelines.

The Essential Commodities (Amendment) Act seeks to remove commodities like cereals, pulses, oilseeds, edible oils, onion and potatoes from the list of essential commodities. This will remove fears of private investors of excessive regulatory interference in their business operations. The freedom to produce, hold, move, distribute and supply will lead to harnessing of economies of scale and attract private sector/Foreign Direct Investment. Farmers suffer huge losses when there are bumper harvests, especially of perishable commodities and this Act will help drive up investment in cold storages and modernisation of the food supply chain.

The Opposition parties have Governments in different States and they should show what they have done for the farming community. Take the case of Uttar Pradesh (UP) which is striving hard to double the income of farmers. During the lockdown, the Yogi Adityanath Government exempted 45 items of fruits and vegetables from mandi fee, which benefited growers who are now free to sell their produce anywhere in UP. They also have the option to sell their goods in the mandis where only one per cent user charge is taken from traders. Besides, all 119 sugar mills of UP ran at full capacity and produced 126.36 MT of sugar after crushing 1,118 lakh tonnes of sugarcane. As a bumper kharif crop is expected, the Mandi Parishad and the State Warehousing Corporation are building warehouses of 5,000 MT capacity each in 37 mandis. Farmers can keep their produce here free of charge for 30 days, after which they will get 30 per cent rebate on the rent, so that they can sell their products when they get the best price. The UP Government has ensured that the produce will be recognised as a guarantee for the farmers to get bank loans. 

UP is developing 27 modern Kisan Mandis and in 24 of these, cold chamber and ripening facilities for preservation of fruits and vegetables are being made. This project will have a ripening chamber of 20 MT capacity and a cold chamber of 10 MT capacity. It is expected to be completed by 2020-21. Also, during the lockdown, 35.77 lakh tonnes of wheat was purchased, as were pulses and oilseed and it was ensured that the market price should be at least at par or above the Minimum Support Price. Now efforts are afoot to purchase paddy, pulses and oilseeds at the MSP in order to benefit farmers.

(The writer is a member, Legislative Council of Uttar Pradesh and vice-president of UP BJP)

The Opposition is staging protests against the recent farm reforms though the measures contained in the three Acts will enable barrier-free trade in agricultural produce and empower farmers to engage with investors of their choice. These Acts, which are a bid by the Centre to empower growers and double their income by 2022, will free them from unnecessary legislation, bring fundamental changes, give impetus to investment and increase employment in the agriculture sector, which in turn will strengthen the economy of the country. The promotion of contract farming will help farmers reach an agreement with food processing units/exporters on an individual or organised basis. It will also enable them to reduce the input of fertilisers and seeds, reduce other costs and use modern techniques to maximise products and get a better market as they will have the opportunity to work according to national-international demands.

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act seeks to create an ecosystem where the farmers and traders enjoy the freedom of choice relating to sale and purchase of produce. This facilitates remunerative prices through competitive alternative trading channels to promote efficient, transparent and barrier-free inter and intra-State trade. This was proposed because there were restrictions to selling agri-produce outside the notified Agricultural Produce Market Committee (APMC). And growers could sell the produce only to registered licensees of the State Governments. This legislation will open more choices for farmers, reduce marketing costs and get them better prices. It will also help growers of regions with surplus produce to get better prices and consumers of regions with shortages, lower prices. The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act seeks to provide for a national framework on agreements that empowers growers to engage with agri-business firms, processors, wholesalers, exporters or large retailers for services and sale of future produce at a mutually agreed remunerative price framework, in a fair and transparent manner.

This has been done because agriculture is characterised by fragmentation due to small holding sizes in India and has certain weaknesses such as weather dependence, production uncertainties and market unpredictability. This makes it risky and inefficient in respect of both, input and output management. Now the risk of market unpredictability will be transferred from the grower to the sponsor. Farmers have been given adequate protection and an effective dispute resolution mechanism has been provided with clear redressal timelines.

The Essential Commodities (Amendment) Act seeks to remove commodities like cereals, pulses, oilseeds, edible oils, onion and potatoes from the list of essential commodities. This will remove fears of private investors of excessive regulatory interference in their business operations. The freedom to produce, hold, move, distribute and supply will lead to harnessing of economies of scale and attract private sector/Foreign Direct Investment. Farmers suffer huge losses when there are bumper harvests, especially of perishable commodities and this Act will help drive up investment in cold storages and modernisation of the food supply chain.

The Opposition parties have Governments in different States and they should show what they have done for the farming community. Take the case of Uttar Pradesh (UP) which is striving hard to double the income of farmers. During the lockdown, the Yogi Adityanath Government exempted 45 items of fruits and vegetables from mandi fee, which benefited growers who are now free to sell their produce anywhere in UP. They also have the option to sell their goods in the mandis where only one per cent user charge is taken from traders. Besides, all 119 sugar mills of UP ran at full capacity and produced 126.36 MT of sugar after crushing 1,118 lakh tonnes of sugarcane. As a bumper kharif crop is expected, the Mandi Parishad and the State Warehousing Corporation are building warehouses of 5,000 MT capacity each in 37 mandis. Farmers can keep their produce here free of charge for 30 days, after which they will get 30 per cent rebate on the rent, so that they can sell their products when they get the best price. The UP Government has ensured that the produce will be recognised as a guarantee for the farmers to get bank loans. 

UP is developing 27 modern Kisan Mandis and in 24 of these, cold chamber and ripening facilities for preservation of fruits and vegetables are being made. This project will have a ripening chamber of 20 MT capacity and a cold chamber of 10 MT capacity. It is expected to be completed by 2020-21. Also, during the lockdown, 35.77 lakh tonnes of wheat was purchased, as were pulses and oilseed and it was ensured that the market price should be at least at par or above the Minimum Support Price. Now efforts are afoot to purchase paddy, pulses and oilseeds at the MSP in order to benefit farmers.

(The writer is a member, Legislative Council of Uttar Pradesh and vice-president of UP BJP)