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Farmers Protest at New Delhi
December 8 , 2020
1372 days
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- 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.
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