The Farmer protests against the three new agriculture-related laws are
Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020′
Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020′ and
Essential Commodities (Amendment) Bill 2020.
The government says these laws will “liberate” farmers from the tyranny of middlemen.
They make it easier for farmers to bypass government-regulated markets (known locally as mandis) and sell produce directly to private buyers.
They can now enter into contracts with private companies and sell across state borders.
This practice is known in India as contract farming,
The new regulations also allow traders to stockpile food.
It could make it easier for traders to take advantage of rising prices, such as during a pandemic.
Such practices were criminal offences under the old rules.
Concerns of farmers
More than 86 percent of India’s cultivated farmland is controlled by smallholder farmers who own less than two hectares (five acres) of land each.
Small farmers fear that they just do not have enough bargaining power to get the kinds of prices when they negotiate to sell their produce to larger companies.
The new laws also do not make written contracts mandatory.
The new rules do not guarantee any minimum price for any product.
The farmers worry that the existing MSP will be abolished at some point.