Farm law 2020: Merits And It’s Demerits

There is a dispute arise between famers and BJP government. Farmer believes that if this three farm law (The Farmers Produce Trade and Commerce (Promotion and Facilitation) Act, 2020; The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020; and The Essential Commodities (Amendment) Act, 2020) implement then their livelihood will be jeopardizes. It’s been a  116 days of struggles but there is no outcome. Government believes that it will give freedom to farmers to get their goods anywhere without any tax but government did not give any guarantee regarding MSP (Minimum Support Price).

Demerits of Farm Law: Famers view points

  1. Famers slogan was “Mandi bachao Kishan bachao” because Mandi system was introduce to help the small farmers, uneducated farmers who have been easily exploited by the traders (Middle man or Agent). If this Mandi System lose its importance then farmers will stuck in legal compliance process.


  1. Mandi System helps the farmers to secure MSP (Minimum Support Price). Agent wants farmers goods in a low rate price and start hoardings. When price rise due to scarcity of food grains in a market then agent start selling goods in high rate. APMC (Agricultural Produce Market Committee) buy goods from farmers if it is not sold in mandi market by outside traders. Farmers transport cost reduces due to sell in msp of unsold food grains in mandi system.


  1. New farm laws remove all restrictions to hoardings. Farmers did not have enough money to build a proper storage for food grains. So, they have no other option but to sell goods in a cheap rate as it is perishable goods.


  1. If mandi system is abolish eventually due to tax implied on traders. Trader prefer to trade outside the mandi. There will not track record of trader and farmers become easy target of fraudster.


Merits of Farm Law: Government view points

  1. Government proposed that Mandi System created monopoly market for the farmers. Some traders joint hand together to create a syndicate in order to exploit the commodity market. By giving permission trade outside the mandi sytem create perfect competition market for the farmers.


  1. In case of any dispute arising in such business, the matter will be settled within 30 days by the Sub-Divisional Magistrate.


  1. APMC (Agricultural Produce Market Committee) imposed rule to submit pan card for trader in order to enter in mandi system. Some of the trader didn’t have pan card or any other document notified by the Central government to join this trade, so this law helps to increase the trades outside the mandi system.


  1. They will be no plenty imposed if trades choose to buy commodities outside the mandi system. Farmers can choose whether to sell commodity in mandi system or outside market, there will be no restriction.

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