Author: Geethika Katakam, student of Alliance School of Law, Bangalore
ABSTRACT
We all had witnessed the farmers protest in 2020-2021; the farmers were protesting against the three farm laws that were passed by the parliament for the welfare and benefit of the farmers in India, it was passed on 27th September, 2020.
The parliament had passed the laws for the benefit of the framers then why are the farmers protesting against the laws? What is that the farmers felt wrong in the farm laws? What had happened with farm laws after the farmers protest? What is the Constitutional validity of the farm laws?
The answer to all the above questions are discussed in this Article named The Constitutional Validity of the Farm Laws Passed by the Indian Parliament.
Key words: Farmers protest, Farm laws, Constitutional validity of the Farm laws.
Introduction
What are the three Farm Laws?
Following the President of India’s approval of the Farm Bills, the Indian parliament approved three farm legislation. September 27, 2020, saw the passage of these agriculture laws.
1. Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act.
2. Farmers’ (Empowerment and Protection) Agreement on Price Assurance Act.
3. Essential Commodities (Amendment) Act.
What are the Farm laws? Why were the farmers protesting against it?
The Farmers’ (Empowerment and Protection) Agreement on Price Assurance Act: What is it?
Through a contract between a farmer and a buyer before any agricultural goods are produced or raised, it creates a national framework for contract farming.
Provisions:
a. Farming Agreement.
b. Minimum Period of Farming Agreement.
c. Maximum Period of Farming Agreement.
d. Pricing of Farming Produce.
e. Settlement of Dispute.
What is the purpose of the Price Assurance Act of the Farmers’ (Empowerment and Protection) Agreement?
It makes it easier for farmers to exchange their produce both inside and between states, in addition to the actual grounds of Agricultural Produce Market Committee (APMC) marketplaces and other markets notified under state APMC Acts.
Provisions:
a. Trade of Farmers’ Produce.
b. Alternative Trading Channels.
c. Electronic Trading.
d. Market Fee Scrapped.
What does the Essential Commodities (Amendment) Act do?
It is a law passed by the Indian Parliament in 1955 to guarantee the delivery of specific goods or commodities, the supply of which, if hindered by hoarding or black marketing, would have an impact on peoples’ daily lives. This includes fuel (petroleum products), food, medicine, and other things.
Powers of the Central Government:
In order to make a variety of goods readily available to customers at reasonable rates, the Government of India will control the production, supply, and distribution of these goods.
Any packaged good that the government declares to be a “essential commodity” may also have its maximum retail price (MRP) set by the government.
Depending on the scenario, the Centre may add goods to this list and remove them when things get better.
The government has the authority to announce stock-holding restrictions on a commodity for a given time period if there is a shortage of it and its price is rising.
Powers of the State Government:
a. Amendment.
b. Stock Limit.
c. Calculation.
Reasons behind the Protest by Farmers:
The Farmer Unions claim the Acts will weaken the Minimum Support Price Mechanism and predict that corporations will eventually control crop prices, meaning farmers will get much less for their produce than the existing MSPs.
Farmers fear there will be a lot of uncertainty about the guaranteed prices of their crops as a result of the virtual extinction of the “Mandi” system.
It has also been observed that the Acts do not expressly refer to a “Minimum Support Price”; instead, they only specify that the contract will be at a “pre-agreed price,” which concerns farmers who feel that there is no guarantee that it will be carried out in a realistic manner and that they will be compelled to accept any rates that are presented to them. This desire for an MSP Bill is shared by the farmers and their unions.
The erratic past of contract farming is another issue. With contract farming, it is also possible for private firms to refuse to pay farmers for the goods they have supplied, often using evasive justifications like “substandard produce quality.” A sizable number of farm produce non-purchases have been reported in the past with the justification of “substandard quality,” which eventually drove farmers into a debt trap. Farmers are compelled to sell their land as a result.
How legitimate are the farm laws that the Parliament passed under the Constitution?
1. The aforementioned advantages would help to corporatize agriculture in accordance with the Act. Since the Act makes no mention of a set MSP, there may not be enough demand from nearby farmers for its goods.
2. Most farmers are small-scale landowners who lack the resources to transport their goods over long distances. In the end, their products will be offered for sale in the neighbourhood market for less than the MSP.
3. The negotiation strength of the parties involved is the fundamental issue with contract farming. Farmers may not receive a fair price for their produce from corporations or wealthy sponsors because they are unable to engage in fair negotiations or afford any form of long-term agreements.
4. Agro-ecological variety in the nation will suffer greatly if the entire farming sector ultimately falls into the hands of capitalists who will use the land and the farmers for their own personal gain.
5. The regulation of stock limitations has undergone adjustments in order to leverage private and foreign direct investment in the agriculture industry. The value chain participants in agricultural agreements will also be exempt from the Stock Limit Regulation if their stock limits stay within their installed capacity. As the government lacks knowledge of the ownership and whereabouts of stocks, this would also legitimise hoarding.
7. The existing law will create a parallel market that will circumvent the demands of the current APMC, for which completely different standards apply. A licence and a certain amount of tax are required of the dealers in APMCs. Similar to how the state government will lose its ability to regulate the trade in products with the advent of private sponsors. Additionally, the mandis will collapse as a result of this.
8. The farmers, who are the real stakeholders, were not properly consulted when these Acts were being created. Farmers are not given guaranteed prices (MSPs) under the control of private players. In a similar vein, market regulation by the state government is not made possible by transactions and prices.
Case law:
A significant case concerning the constitutional validity of the 2020 Farm Laws is Rakesh Vaishnav & Ors. v. Union of India & Ors. In this case, the Supreme Court of India addressed challenges to the three farm laws: Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020. Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020. Essential Commodities (Amendment) Act, 2020. On January 12, 2021, the Supreme Court ordered an interim stay on the implementation of these laws and appointed a committee to facilitate discussions between the government and the protesting farmers. This case is pivotal in understanding the legal challenges and judicial scrutiny related to the farm laws enacted in 2020.
Conclusion
In either the old or the new system, the farmer is never allowed to control the price of his agricultural products. The pricing is always established by a third party and is susceptible to wide variations. It is immediately necessary to apprehend the parties involved and reevaluate the current policies. Corporatization of agriculture may worsen farmers’ depression, according to experience from other countries.
References
https://www.legalserviceindia.com.
https://indianexpress.com/article/explained/an-expert-explains-farm-acts-and-federalism.
https://www.niti.gov.in/sites/default/files/2020-11/NewFarmActs2020.pdf
https://prsindia.org/billtrack/the-farm-laws-repeal-bill-2021
FAQS
What were the three Farm Laws?
They were laws aimed at reforming agricultural trade, price agreements, and stock limits.
Why were farmers protesting?
Farmers feared losing MSP, exploitation by corporations, and the collapse of the mandi system.
What does the Farmers’ Produce Trade and Commerce Act do?
It allows farmers to sell produce outside APMC markets and promotes interstate and online trade.
What is the concern with contract farming under these laws?
Farmers worry about unfair contracts, rejection of produce, and losing control over pricing.
How did these laws affect state governments?
They reduced state control over agricultural trade, creating a parallel market system.
