{"id":21073,"date":"2020-12-04T14:30:38","date_gmt":"2020-12-04T09:00:38","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=21073"},"modified":"2024-07-02T15:58:13","modified_gmt":"2024-07-02T10:28:13","slug":"farm-bill-2020-is-it-really-shattering-the-belief-and-hopes-of-the-farmers","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/farm-bill-2020-is-it-really-shattering-the-belief-and-hopes-of-the-farmers\/","title":{"rendered":"Farm Bill 2020: Is it really Shattering the Belief and Hopes of the Farmers?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Right now our country is\nfacing is the heat of the farmer\u2019s protest against the three reforms- Farmers\n(Empowerment and Protection) Agreement on Price Assurance, Farm Services Act,\nFarmers\u2019 Produce Trade and Commerce (Promotion and Facilitation) Act, and the\nEssential Commodities (Amendment) Act. These reforms are combinly known as Farm\nBill 2020. On 27\/Sep\/2020, the Indian President gave the green signal to the\nthree farms bills. In this write-up we would look into the ground reality of\nthese reforms.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/farm-bill-2020-is-it-really-shattering-the-belief-and-hopes-of-the-farmers\/#Aims_of_Three_New_Reforms_under_Farm_Bill_2020\" >Aims of Three New Reforms under\nFarm Bill 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/farm-bill-2020-is-it-really-shattering-the-belief-and-hopes-of-the-farmers\/#Understanding_the_Notion_of_the_Farm_Bill_2020\" >Understanding the Notion of\nthe Farm Bill 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/farm-bill-2020-is-it-really-shattering-the-belief-and-hopes-of-the-farmers\/#Why_Farm_Bill_2020_is_widely_Protested\" >Why Farm Bill 2020 is widely\nProtested?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/farm-bill-2020-is-it-really-shattering-the-belief-and-hopes-of-the-farmers\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Aims_of_Three_New_Reforms_under_Farm_Bill_2020\"><\/span>Aims of Three New Reforms under\nFarm Bill 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>Farmers (Empowerment and Protection) Agreement on Price\nAssurance and Farm Services Act would render the legal platform to the contract\nfarming.<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Farmers\u2019 Produce Trade and Commerce (Promotion and Facilitation)\nAct enables the farmers to sell their agro produce outside the mandis that\noperate under the canopy of the APMC of State government.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Essential Commodities (Amendment) Act aims to dismantle the\ncurrent provisions for the production and supply of non-perishable food items\nsuch as onions, pulses, edible oil seeds, cereals, etc.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding_the_Notion_of_the_Farm_Bill_2020\"><\/span>Understanding the Notion of\nthe Farm Bill 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The primary bill i.e.\nFarmers\u2019 Produce Trade and Commerce (Promotion and Facilitation) Act is meant\nto get rid of the inter-state barrier; allowing farmers to sell their produce\nfreely in any state. The Act primarily broadens the scope of trading by\nnarrowing the gap between corporate giants and farmers. This significantly\nimproves the financial standing of the farmers. The Farm Bill 202o overcomes\nthe widespread limitation of selling agro produce at one destination by\nemploying an open market system.&nbsp;<\/p>\n\n\n\n<p>The second bill i.e.\nFarmers (Empowerment and Protection) Agreement on Price Assurance and Farm\nServices Act intends to overcome the limitation of contact farming by\nincorporating a national-level framework for the same. With this Act in place,\nfarmers will be able to enter into the contract with private companies,\nretailers, and processing firms to sell their agro produce at a predetermined\nprice before harvesting.&nbsp;<\/p>\n\n\n\n<p>The third bill i.e.\nEssential Commodities (Amendment) Act excludes the Non-perishable food items\nfrom the list of essential commodities. This will get rid of the limitation\nimposed on string limits of Non-perishable food items allowing private sectors\nto operate more freely. The Act objectively oversees the hoarding of\nNon-perishable food items so that traders would not be able to disrupt the\nsupply chain mechanism by taking undue benefit. The current reform will place\nNon-perishable food items outside the canopy of the Act other than the\nstressful situation like war and famine. The Act further imposed the limitation\non stocking of these items in case of price rise i.e. 50% in case of\nNon-perishable food items and 100% in the case of horticultural produce.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Farm_Bill_2020_is_widely_Protested\"><\/span>Why Farm Bill 2020 is widely\nProtested?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Despite being packed with ample benefits, the Farm bill 2020 has some serious oddities from the farmer\u2019s viewpoint, which are as follow:&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Prominent-Issues-with-Farm-Bill-2020-1024x768.png\" alt=\"Issue with Farm Bill 2020\" class=\"wp-image-21075\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Prominent-Issues-with-Farm-Bill-2020-1024x768.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Prominent-Issues-with-Farm-Bill-2020-300x225.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Prominent-Issues-with-Farm-Bill-2020-768x576.png 768w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Prominent-Issues-with-Farm-Bill-2020.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">Erosion of Minimum Support\nPrice&nbsp;(MSP)<\/h3>\n\n\n\n<p>This is one of the huge concerns of the farmers as they strongly believe that the Farm bill 2020 would erode the concept of <strong>minimum support price (MSP).<\/strong> With the bill allowing more and more corporate to join the agro sector, market monopolization is very much on the card, which eventually narrowed the scope of trading.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Triggers Monopolization of\nthe Private Parties&nbsp;<\/h3>\n\n\n\n<p>Farmers are not assured\nthat the bigger companies would maintain the integrity of the contract and\ncould possibly reduce the mutually-agreed price of the contract system. They\nalso fear that the Farm bill 2020 might empower the companies to take control\nof farmers and dismantle their right to get any support from the Government.\nThis could further translate into the dissolution of the farmer\u2019s rights on\naccount of harvesting or sale price. Moreover, the farmer also believes that\nthe Government would no longer intervene in any matters, including insurance of\ncrops as soon as they enter into contact with the private parties.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Dissolution of Bargain Power&nbsp;<\/h3>\n\n\n\n<p>The farmers have a strong\nreason to believe that the Farm bill 2020 will diminish their bargaining power\nand resources. The Farm bill 2020 may dilute their right to get the best\nbargain for their produces due to the furious monopolization of the corporate\nand the absence of the mandi system. At present, there are more than 7500\nregulated agro markets in the country functioning under state-level Acts\ncovering a wide category of notified agricultural produce.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Triggers Job Loss&nbsp;<\/h3>\n\n\n\n<p>An individual working in\nthe post-harvest services is more likely to get affected by the current bill.\nSome APMC officials claim that these reforms would increase the extent of\nunemployment in the agriculture sector by removing the self-employed\nmediators.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Loss of Revenue for the State\nGovernment<\/h3>\n\n\n\n<p>After abolishing the mandi\nsystem, the state government will not be in a position to collect the mandi\ntax, which acts as a viable source of revenue for them. The farmers of Haryana\nand Punjab are prominent victims of these reforms. The ongoing protest also\nincludes this agenda, forcing the Government to sort out an amicable solution\nfor the same.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Eroding Mandi System<\/h3>\n\n\n\n<p>While the Mandy system in\nour country is submerged in corruption, the farmers have now established a\nstrong bonding with the commission agents. These agents offer credit to the\nfarmers in advance, even in the absence of any security. The agents and traders\nwere collectively opposing these reforms as they feel that the advent of\nprivate players will gradually erode this old system and triggers insecurity\namong them.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Creating Vacuum in the\nFarming Industry&nbsp;<\/h3>\n\n\n\n<p>Most of the farmers in our\ncountry face a scarcity of resources in terms of transportation and storage. In\nthe absence of the MSP, they would opt to remain ideal until the market goes\nup. This may trigger a sense of uncertainty among the farmers, leaving them at\nthe mercy of private players. This could also enforce them to look into other\nforms of employment, which could possibly create a vacuum in the farming\nindustry.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Hoarding of Non-Perishable\nFood Items&nbsp;<\/h3>\n\n\n\n<p>Farmers also disagreeing with the government\u2019s decision of excluding non-perishable food items from the list of essential commodities as it could lead to unlawful accumulation of these commodities. In addition to that, the prices of these commodities may be skyrocketed by creating artificial scarcity. It is also expected that the government is more likely to open the farm sector for <a href=\"https:\/\/corpbiz.io\/learning\/growth-and-quality-of-fdi\/\"><strong>FDI to stimulate growth<\/strong><\/a>. The experts believe this would be a massive blow to the economy and increase the rate of unemployment in the agriculture sector.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-text-align-left\">Farm bill 2020 has been collectively opposed by the farmers because of its obvious discrepancies. Majority of the farmer believes that it and likely to erode their financial standing gradually. However, the Government has a different thought on this, as they strongly believe that this reform will impart more transparency and accelerates the growth of the sector. Therefore, we can conclude by saying that the Government has to come with amicable solutions to fill up the gap.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/farmer-bill-2020-highlights-benefits-and-limitations\/\">\nFarmer Bill, 2020 \u2013 Highlights, Benefits, and Limitations\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Right now our country is facing is the heat of the farmer\u2019s protest against the three reforms- Farmers (Empowerment and Protection) Agreement on Price Assurance, Farm Services Act, Farmers\u2019 Produce Trade and Commerce (Promotion and Facilitation) Act, and the Essential Commodities (Amendment) Act. These reforms are combinly known as Farm Bill 2020. On 27\/Sep\/2020, the [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":21078,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153],"tags":[1280],"acf":{"service_id":"62"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":8311,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21073"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=21073"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21073\/revisions"}],"predecessor-version":[{"id":65090,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21073\/revisions\/65090"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/21078"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=21073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=21073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=21073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}