The three Farm Laws, enacted by the Indian Parliament in September 2020, aimed to reform the agricultural sector by introducing market-oriented changes. These laws, however, faced widespread protests and were subsequently repealed in December 2021.
The three laws were:
- 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
- The Essential Commodities (Amendment) Act, 2020
Details of the Farm Laws
Here's a breakdown of each law and its intended purpose:
1. The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
This law sought to create a system where farmers could sell their produce outside the regulated Agricultural Produce Market Committees (APMC) mandis (markets). Its primary goal was to promote barrier-free inter-state and intra-state trade and commerce of agricultural produce, aiming to provide farmers with more selling options and potentially better prices.
- Key Provision: It allowed for electronic trading and trade outside the traditional APMC market yards.
- Related Information: The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Rules, 2020, were published on October 20, 2020. A Hindi and English version of this Act was made available by February 25, 2021.
2. The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020
This act established a national framework for farming agreements between farmers and buyers. It aimed to empower and protect farmers by facilitating contract farming with agri-business firms, processors, wholesalers, exporters, or large retailers. The agreements would cover farm services and the sale of future farming produce at a mutually agreed remunerative price.
- Key Provision: Introduced a framework for contract farming, aiming to assure prices for farmers' produce.
- Related Information: A Hindi and English version of this Act was made available by February 25, 2021.
3. The Essential Commodities (Amendment) Act, 2020
This amendment brought changes to the existing Essential Commodities Act. It removed certain food items, including cereals, pulses, oilseeds, edible oils, onions, and potatoes, from the list of essential commodities. The intention was to deregulate the production, storage, movement, and distribution of these items, encouraging private sector investment in the agricultural supply chain and potentially reducing food wastage.
- Key Provision: Deregulated supply limits and stockholding for these specific food items, except in situations of extraordinary price rise, war, or severe natural calamity.
Repeal of the Farm Laws
After extensive protests by farmer organizations across the country, the Indian Parliament passed The Farm Laws Repeal Act, 2021 (Act No. 40 of 2021). This Act officially repealed all three contentious farm laws and was published on December 1, 2021, marking a significant policy change by the government.
For more information regarding agricultural acts and policies, you can refer to the official portal of the Ministry of Agriculture & Farmers Welfare, Government of India.
