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Farmers’ protest: Pros and cons of the Farmers Produce Trade and Commerce (Promotion and Facilitation) Act

The BJP government on their part are advocating the fact that these laws are actually for the benefit of the farmers.

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Farmers have been sitting on protest on Delhi borders from November 26.
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The farmers’ agitation all around the borders of National Capital Region of Delhi are showing no signs of slowing down. There are already calls for Bharat Bandh by the farmers’ leaders and multiple rounds of meeting between them and the Government have borne no fruitful solution.

After the inconclusive fifth round of meetings of Saturday (December 5), the next scheduled meeting is supposed to take place on Wednesday (December 9). The farmers are adamant that three laws – The Farmers Produce Trade and Commerce (Promotion and Facilitation) Act, 2020; The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020; and The Essential Commodities (Amendment) Act, 2020 – passed by the Parliament in September this year be repealed immediately.

The BJP government on their part are advocating the fact that these laws are actually for the benefit of the farmers. The government’s appeasement offer to amend these laws also been rejected by over 40 farmer union leaders, who are sitting on five different borders with a set of five major demands since November 26.

DNA tries to take a look at five pros and cons of the Farmers Produce Trade and Commerce (Promotion and Facilitation) Act, 2020…

 

Pros: 1. Farmers have now got a new avenue with a freedom to sell their produce outside the APMC (agricultural produce market committee) market and the government has assured that there will be no tax on such trade, which gives higher price to the farmers.

2. Farmers can sell their produce within the state or anywhere else in the country and there’s no restriction on this as well. As a result the farmers can get a higher price for their produce from merchants outside their state.

3. No need for any kind of license for traders to purchase agricultural produce in the trade area outside the APMC mandi. In addition to this, anyone holding a PAN card or any other document notified by the Central government can join this trade. This provides more selling options to the farmers.

4. In case of any dispute related to sale and purchase of these agricultural produce, the matter will be settled within 30 days by the Sub-Divisional Magistrate.

5. The Act also assures heavy penalty for violating rules and regulations prescribed in it.

 

Cons: 1. The farmers allege that the mandis operated under the APMC law will be abolished due to this Act. Once these mandis shut down, the farmers will be forced to sell the crop to corporate companies at a lesser price.

2. Once Mandi system is abolished, no one will buy farmers produce at MSP.

3. In the past, these products go from one state to another and the provisions of the new law are only for the benefit of the corporate entities, the famers claim

4. Farmers will be exposed to the risk of fraud due to the entry of people without license or registration.

5. The farmers also believe that they will be at a disadvantage when going up against corporate entities, with their rights under threat.

According to the farmers, The Essential Commodities (Amendment) Act, 2020 is also in favour of big buyers.

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