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Tuesday, September 22, 2020

What are the new agriculture bills and one among them is contract farming , why it is being opposed all over the country ?

What are the new 

agriculture bills 

and one among them 

is contract farming Bill, 

why it is being opposed 

all over the country?

                          What is the new agriculture bill and why it is being opposed all over the country ?

   One of the three new laws 

related to agriculture

speaks of the law.

  In the form of contract 

farming, this corporate

method of farming will be 

beneficial for the farmers or,

   It will be harmful but only

 time will tell but it is 

important to analyze some 

important questions.


All you want to know about 

 Farming deal

    Farmers are agitated in

 many states of North India

 regarding new laws related 

to agriculture.

The immediate concern of 

the farmers is that mandis 

will end in the future.

And they will not get a 

fair price for their 

produced crops.

But farm farming is a 

big concern for farmers' 

organizations and 

agricultural experts.

To get legal permission.

They say that to hand 

over the agricultural

 sector to corporates 

through contract farming.

    The effort is being done.

    At the same time, the

 government argues that

 this will increase investment 

in agriculture, the income

of farmers and Productivity

of land will increase.

  This issue has just cropped

up by making Contract 

farming legal.

    But the debate on this has

 been going on for a long


   The history of contract 

farming in the country is 

old when under the rule of 

East India Company

   Indigo and opium was

 cultivated in Bengal.

 Later in around 1920

    Company contracts with 

Andhra Pradesh farmers to 

produce Virginia tobacco.

    Seed companies emerged

 in 1960 and in 1990

 for tomato cultivation in


    Pepsico contracted with


  In the last decade after 

reforming the Agricultural 

Produce Market 

Committee, many states have

contested  Legal recognition

 was also given to farming. 

Many companies in the 

country do this kind of job

 is coming.

Need to learn from foreign 

countries, focus on 


1.Productivity is not related

 to the size of the land.

     It is often said (while this 

is not true) that smaller 

farms than large 

agricultural lands are less


   Therefore contract farming

is a better way to organize

the farming of the country.

    There is ample evidence

that small farm resources

 are better utilized are far 

more productive.

    However, agriculture is

 not seen as compared to 

the production industry,

 as the production is

 large cost reduced.

It is not applicable in 


It is not related to the size

of the farm.

   Rather, the issue is access

 to resources. 

Small farmers have access

 to technology

    There is not enough

proofs that How

 successful was contract

 farming in two disciplines?

    It would be appropriate

 to analyze it.

  Corporate farming was

 unsuccessful in countries

 like Iran due to 


    Examples of many 

developed countries like

 America etc. in the case

 of contract farming. 

    It is said that this may

 prove to be a big tragedy.

 Where productivity is

 large, then government

 intervention is behind it

    There is a huge


    It is true that productivity

 has increased with


   But it has benefited big

 corporate farmers.

    Not small farmers.

 According to a study by the

 US Department of

 Agriculture, the number of

 small farmers has reduced

 over the years. 

 At the same time, the

 number of big farmers

 has increased. 

 What will be the impact of

 3 contract farming on

 unemployment ?

   And how much effect will

 there be?

  Large farms now dominate

 the agricultural sector in


   Despite huge subsidies 

(Rs 44 lakhs on average

 in the US), agricultural

 credit is continuously


    Currently, this debt is

 around Rs 30 lakh crore.

    Since 2013, more than

 half of the farmers in

 America are losing their 


  Contract farming can

 drastically reduce the

 number of laborers and 

farmers on farms.

  This unemployment can

 boost economic growth.

 According to US statistics,

 only 9.44 servants have

 been found after the 

dismantling of 27.97.

    Farms in China are small,

 but production and

 productivity is high.

   The average size of farms

 in China is 0.6 hectares.

    But compared to India,

 farms in China

Productivity is far higher.

   The main reason for 

this is the huge public

 investment in agriculture.

 China increases

 productivity without 

expanding agricultural

 land has done the work


  There is also a government

 investment in agriculture

 in china.

   In contrast, in the 1980s

 in India in the 

agricultural sector

   Contribution of 2.43 to

 GDP despite public

 investment coming from

 the mid-1990s, it should

 be 0.59 percent gone .

 However in the year 2000,

 it increased marginally and

 it 1.28%, but still 



IIM Study: beneficial 

for  Westland Corporate farming

   Professor of IIM Ahmedabad


  Did a study on corporate

 farming in India.

  Accordingly, this farming

 is non-productive and can

 be effective for waste land.

 Westland Atlas of the

 Ministry of Rural 


     According to the country,

 55 million 76 million hectare

 place is Westland.

    Government's intervention

 in this type of farming is 

new Technology, 

sustainable productivity with

 farm productivity must be


    According to the study,

 small farmers in contract

 farming have control over

 the land, so the chances of

Loss to the environment, 

is very less.

    There are other important 

facts/questions that need

 to be paid attention on.   

 Productivity is Acceptable but Not at the 

cost of  Land Degradation.

    Increase crop production

 after leasing the fields made

 by companies for increasing

 production, like the use of 

excessive chemicals.

  Use of all these chemicals

 affect soil fertility.

  It can be harmful in the

 long run.

       Many Legal issues

 have happened in the

 past ? Now Who will

  take care of these?

 The dual side of contract

 farming came out in

 2019, When Pepsico 

cultivates potatoes in


Pepsico filed a case,

against farmers.

    Violation of Intellectual

 copyright of seed on farmers

 Had filed a case .

 The company said that the

 potatoes used in making,

chips has been registered

 in India for Pepsico

trademark potato variety .

  Farmers without

permission cannot

use these type 

of potatoes

    However, the case was

 later withdrawn

Some Contradiction when Companies  

retract from there Wordings

    Supreme Court has

 circulated an order in

 favor of Ambika Devi

 ,one of its decisions in 

Kerala state . 

    The farmer ruled in favor

 of  Ambika Devi. 

   Hyderabad-based company 

 Nandan Biometrics will 

provide seeds  to Ambika 

Devi to grow Musli crop.   

     With the promise that she

 would buy the crop yield.

    But later the company 

refused to buy the crop yield



New agriculture bills and what are the Pros and Coins in it? and why it is being opposed all over the country

"Modern Grower Generate Operate and Do Business (Approval and Overview)"


Bill 2020, Farmers 

(Empowerment and 


Price Assurance and

Agricultural Services

The Contract Bill, 2020, and 

Essential Commodities 

(Amendment) Bill, 2020.

Have passed

    There is huge opposition 

across the country.

So let's discuss about them.

    What are the Farmers 

Produce Trade and 

Commerce (Promotion 

and Simplification) 

Bill 2020 ?

    The basic objective of this 

bill is to reduce government 

control over trade in 

agricultural products.

    In this, such provisions 

have been made so that 

now farmers 

will not need agricultural 

mandis to sell their 


    Also, now the farmer can 

sell his crop anywhere.

And can sell with other state 


    It also includes online 

trading and online Platforms.

Also, he will not have to pay 

any tax on selling the crop.

    What is Farmers (Empowerment 

and Protection) Price Assurance and Agricultural Services Agreement 
Bill ?

The purpose of this bill is to

provide competitive prices to 

the farmers.

    With this help, contract 

farming will be planned.

     Farmers will be able to sell 

their crops before farming,

and the risk factor will 


    With this help, the 

middleman system will end.

    A time limit has also been 

set for dispute settlement.

What are the Essential 

Commodities (Amendment) 

Bill, 2020?

 Before the enactment of this bill, cereals, pulses, 

pulses, oil, potatoes and onions were on the list of such essential items as per the Essential commodities Bill.

    Those which could not be 


    With the help of this bill, 

they have now been removed 

from this list.

    Why is there a protest?

These bills are expected to 

end agricultural produce 


Minimum Support Price has 

not been mentioned in this 


     So the farmers fear that 

the MSP will not buy and 

the hoarders will get a 


   These notes will be useful 

in the preparation of 

competitive examinations, 

information about 

whatever questions are 

made from this issue has 

been provided in this