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LATEST NEWS UPDATES | The (food) grain of Punjab's own farm Bills -Sukhpal Singh

The (food) grain of Punjab's own farm Bills -Sukhpal Singh

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published Published on Oct 21, 2020   modified Modified on Dec 14, 2020

-Business Standard

The MSP is declared for 23 crops. This means that farmers of other crops or those trying to diversify under contract farming would not have the MSP protection of the Bills

Much was made of the Punjab government’s plan to reject the three central laws on agri markets and provide its own protection to famers, especially on prices for their produce. But, the two Bills presented in the state legislature on the trade and commerce and contract farming Acts of the Union government as amendments to nullify some provisions of those Acts and provide its own mechanisms of protection are mainly about paddy and wheat prices and markets and the state government protecting its own revenue. This would be the state’s own roadblock to any crop diversification and would perpetuate the paddy-wheat cropping cycle and monoculture if it stands the test of legal scrutiny by the courts.

The Farmers’ Produce Trade and Commerce amendment Bill assumes that the Union Act (APMC Mandi Bypass Act, 2020) would nullify the Minimum support Price (MSP) mechanism and would expose farmers to vagaries of market forces so far as their price realisation for agricultural produce and fruits and vegetables is concerned. It also proposes to ensure a level playing field for proper protection of farmer interest. However, when it comes to MSP, it only says “No sale or purchase of wheat or paddy shall be valid unless the price paid for such agricultural produce is equal to, or greater than, the Minimum Support Price announced by the Central Government for that crop”. Therefore, famers producing other crops like cotton or oilseeds, or even maize for which there is an MSP provision from the Union government can’t expect a protection under this Bill. This, despite the fact that cotton has been selling at below MSP in the state during current season. The state again chooses to depend on the Union government and FCI for its wherewithal and does not care for other crop farmers who grow riskier and high value crops.

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Business Standard, 21 October, 2020, https://www.business-standard.com/article/economy-policy/the-food-grain-of-punjab-s-own-farm-bills-120102100202_1.html


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