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Some Key Questions That Need to Be Answered About the Three Agriculture Ordinances -Nikhit Kumar Agrawal

-TheWire.in

The text of the ordinances raises some questions about their stated objective to ‘free up’ curbs on trade and help farmers get a remunerative price for their crop.

Recently, the Bharatiya Janata Party-led Central government introduced three ordinances to bring in far-reaching agricultural ‘reforms’ in the country. Taken together, these ordinances intend to liberalise the regulatory system in the agriculture sector, provide freedom to farmers and traders to trade in farm produce at a site of their choice such as farm gates, warehouses, etc., and to usher in legal contract farming in a uniform manner throughout the country.

While the stated objectives of these ordinances provide the appearance that these will ‘free up’ curbs on trade that had shackled farmers and their ability to get a remunerative price for their crop, the text of the three ordinances raises some questions.

The Essential Commodities (Amendment) Ordinance, 2020 allows for regulating the supply and stock limit of certain specified agricultural produce under extraordinary circumstances such as an extraordinary price rise and natural calamity of grave nature, etc. The price range fluctuation allowed in this ordinance is so narrow (100% increase in the retail price of horticultural produce and 50% increase in the retail price of non-perishable agricultural foodstuffs) that the government will be in a position to impose the stock limit multiple times in a year and thereby taking away the ordinance’s liberalising character.

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