8.30 am: What are the farm laws?
The Parliament had passed three ordinances – Farmers Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020, The Farmers (Empowerment & Protection) Assurance and Farm Service Ordinance 2020 and The Essential Commodities (Amendment) Ordinance 2020 – in September. They were signed into laws by President Ram Nath Kovind on September 27.
Taken together, the three legislations loosen regulations on the sale, pricing and storage of agricultural produce. They allow farmers to sell outside mandis notified by the Agricultural Produce Market Committee. They enable contract farming through deals with private sector companies. They take food items like cereals and pulses off the list of essential commodities, lifting stock limits on such produce.
Farmers and traders have alleged that the government wants to discontinue the minimum support price regime in the name of reforms. They fear that the laws will leave them at the mercy of corporate powers. The government has maintained that farm laws will bring farmers better opportunities and usher in new technologies in agriculture.
The government claims the new laws would give farmers the freedom to sell in the open market. But farmers say the laws will weaken the minimum support price mechanism under which the government buys agricultural produce, leave farmers to the mercy of market forces and threaten food security.
Most Opposition parties and farmers’ organisations across the country have strongly opposed the bills. The Shiromani Akali Dal, one of the Bharatiya Janata Party’s oldest allies, pulled out of the National Democratic Alliance in protest against these bills.