Why the 3 farm laws are bad for India. Let's keep our focus sharp on this issue and not let the government, the godi media and bhakt trolls divert attention from the 3 laws repeal demand.
A presentation of facts is below;
1. Law does not allow the farmer to approach the court. If there is a dispute, SDM will decide. If the decision is not acceptable then the farmer must approach the Joint Secretary of central govt.
a. Imagine 2-acre farmer putting a fight with Corporations with legal departments in front of SDM OR traveling to Delhi to approach Joint Secretary
2. Buyer will draw a contract and if a farmer cannot meet the agreement then SDM can impose fine up to 5 lacs.
a. Imagine farmer reading/negotiating Airtel or Jio contracts.
b. How many of us were successful in getting these service providers a promised speed?
c. Chips maker had a contract with potato farmers in Punjab and later it rejected potatoes on the ground that potatoes are not of same shape or size. Remember potatoes grow in soil and are not manufactured in the cast.
3. Law waives tax (Punjab 8.5 and Haryana 6%) collected by Mandi boards from private buyers.
a. This removes competition for private players from Mandi boards.
b. This revenue is collected from central agencies to build rural area infrastructure. Who will now fill that tax hole?
4. Law does not guarantee MSP or mentions it
a. Allows private players to buy farm produce at lower price
5. Law removes essential commodity act
a. Allow hoardings and raise price for food items.
6. Law supporters claim that it removes the middleman (Arthiya).
a. But Law introduces now bigger sharks removing small fish.
b. Arthiya works on a 1-2% service fee
c. He facilitates purchase from buyer bases on service fee like any other dealership or service provider.
d. There is no mark up in the purchase price
7. The crop being a 6-month cycle, Arthiya is like atm to farmer providing credit for 6 months cycle for purchases of inputs.
a. Now with Arthiya being removed who will provide credit
b. Where does farmer go for money to buy farm inputs and his daily needs
c. Law or Government has not created alternative for this
8. Why protests are limited to Punjab and Haryana
a. Farming is a state subject. States like Bihar had removed APMC in 2006 leaving only private players.
b. Punjab and Haryana have developed Mandi system over the years where any produce brought into Mandis cannot be purchased below MSP.
c. Crops like Rice are sold in states like Bihar at price below the MSP.
d. Farmers from neighbouring states sell their produce at MSP in Punjab or Haryana as these states have better Mandi system which offer MSP
e. On ground Haryana BJP govt has stopped farmers from other states to sell their crops in Haryana which itself is stand opposite to Central Govts new Bills
Corporates had an eye on massive food grain market of India.They had few problems:
Problem 1 :
States had different rules ®ulations to buy food grains frm farmers. It was difficult for corporates to handle so many states with so many different regulations & taxes.
Modi Solution:
Took control from states and made 1 act for whole country. Corporates happy now.
Problem 2:
Corporates will buy crops and store them. But Essential Commodity act will stop them for storing crops for long time, as it increase prices in market.
Modi Solution:
Food crops will not come under Essential Commodity act and can be stored for longer period. Corporates again happy.
Problem 3
It was hard to determine that what type of crop will be grown by farmers.
Modi Solution:
Contract farming for farmers where they will be told by corporates to grow what kind of crop. Corporates again happy.
Problem 4 :
How Corporates will handle court cases if anything goes wrong against farmers.
Modi Solution:
Farmers can not go to courts. They will go to SDM and DC.
Corporates again happy.
They say laws are in favor of farmers.
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