Lok Sabha Question No. 382 (UNSTARRED), answered on 2021-07-20
Subject: Impact of New Farm Laws
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Amar Singh

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 382

TO BE ANSWERED ON THE 20 TH  JULY, 2021

## IMPACT OF NEW FARM LAWS

## 382.  DR. AMAR SINGH:

Will  the  Minister  of  AGRICULTURE  AND    FARMERS    WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether  the  new  farm  laws  are  unconstitutional  and  anti-farmer  and  would dismantle the Agricultural Produce Market Committee (APMC) system intended to ensure fair prices for farm products;
- (b) if so, whether the implementation of the new laws in their current form will open a parallel market which is unregulated and lead to exploitation of farmers;
- (c) if so, the details thereof and the reaction of the Government thereto;
- (d) whether it is also a fact that though these laws will enable farmers to sell their produce outside the mandis, they will only get half the price for their crop outside mandis;
- (e) if  so,  whether  these  new  laws  would  pave  the  way  for  eliminating  the  safety cushion of Minimum Support Price (MSP) and do away with mandis that ensure income, leaving them at the mercy of big corporates; and
- (f) if so, the action taken to prevent such an outcome?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

- (a): No  Sir. Government  had  promulgated  'The  Farmers'  Produce  Trade  and Commerce (Promotion and Facilitation) Ordinance, 2020', 'The Farmers (Empowerment  and  Protection)  Agreement  on  Price  Assurance  and  Farm  Services Ordinance, 2020', and 'The Essential Commodities (Amendment) Ordinance, 2020' on 5 th June, 2020 by following the due procedure. Union Government had enacted the new Farm  Laws  under  entry  33  of  List-III  (Concurrent  List)  of  Seventh  Schedule  of  the

Constitution, under which the Parliament is constitutionally competent to legislate & has passed the laws.

The bills on aforesaid laws were passed by both the houses of the Parliament and subsequently enacted these into Acts on 27 th September, 2020.

Government has always been supporting the idea of strengthening of Agricultural Produce  Market  Committees  (APMCs)  and  making  them  more  competitive  through improving  services  and  infrastructure.  Government  has  been  providing  assistance  to APMCs for infrastructure  and  value  chain  development  through  various  schemes  like Rashtriya  Krishi  Vikas  Yojna  -  RAFTAAR,  Agriculture  Market  Infrastructure  (AMI), National  Agriculture  Market  (e-NAM),  Agri.  Infrastructure  Fund  (AIF)  and  Agriculture Marketing Infrastructure Fund (AMIF), etc.

(b) to (d): No  Sir.  The  New  Farm  laws  viz,  'The  Farmers'  Produce  Trade  and Commerce (Promotion and Facilitation) Act, 2020',  'The Farmers (Empowerment and Protection)  Agreement  On  Price  Assurance  and  Farm  Services  Act,  2020'  and  'The Essential Commodities (Amendment) Act, 2020,  are intended to provide an ecosystem where the farmers can enjoy the freedom of choice relating to sale of farmers' produce which facilitates remunerative prices to farmers through competitive alternative channels  for  selling  their  produce.  These  farm  Acts  will  facilitate  direct  buying  from farmers in trade area by traders, processors, exporters, Farmer Producer Organizations (FPOs),  agriculture  co-operative  Societies  etc.,  so  as  to  facilitate  farmers  with  better price realization due to reduction in supply chain and marketing cost to enhance their income.

Farm laws provide additional marketing opportunities outside the APMC market yards  such  as  farm-gates,  cold  storages,  warehouse,  silos,  etc.  to  help  farmers  get remunerative  prices  due  to  additional  competition.  Farm  laws  will  accelerate  more investment  in  marketing  and  value  addition  infrastructure  near  to  farm  gate  creating more  employment  opportunities  for  rural  youth.  Further  farmers  are  free  to  sell  their produce in APMC as earlier.

(e) & (f): Government  of  India  announces  Minimum  Support  Prices  (MSP)  for  22 major agricultural commodities of Fair Average Quality (FAQ) each year in both the crop seasons  after  taking  into  account  the  recommendations  of  the  Commission  for Agricultural Costs and Prices (CACP). Government also extends remunerative price to farmers through its various interventions schemes. The procurement at MSP is being done by Central and State Agencies under various schemes of Government. Besides, the overall market also responds to declaration of MSP and Government's procurement operations, results in increase of selling price of the various notified crops.`

MSP  policy  has  nothing  to  do  with  Farm  Acts.  Farmers  are  free  to  sell  their produce  to  the  Government  procurement  agencies  at  MSP  or  Agricultural  Produce Market Committee (APMC) markets or through contract farming or in the open market whichever is advantageous to them.

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