Farmers are protesting in India: After the independence of India, farmers used to sell their agricultural products directly to the consumer but due to the zamindar system and many other situations, maximum farmers of India were under debt. On this money lenders used to put high-interest rates.
So whenever farmers were unable to pay that money, these money lenders used to buy their agricultural products at the very lowest price. Now to overcome this problem, the government brought APMC Act. According to this, there will be no direct exchange between farmer and consumer.
So now they have to move towards Mandi. The state divides Mandi’s according to their area. If any trader wants to purchase anything from Mandi Then he has to acquire the License of that specific Mandi. Similarly, a farmer can sell their products only in Mandi allocated in their area, and this was mandatory.
Now in this Mandi, traders buy products through Auctions. There are 23 Crops that have a Minimum Selling Price or MSP, it is starting price of those crops decided by the Government whereas other products’ prices are decided on-demand basis. But it’s not as simple as it looks.
This increases the number of middle man between farmer and consumer-like if a consumer buy products at 70Rs, farmers receive only 7Rs. Also, traders formed their union and forced farmers to sell their products in MSP. MSP is neither profitable nor a loss for farmers.
So many farmers started selling their products to unlicensed traders in their village at whatever price they say, as a result, many farmers forced to quit farming. So the government came up with Farm Bills, so let’s get back to the question, Why Protest?
This bill gives farmers an opportunity to directly deals with companies, this is called a contract deal. In this companies buy products at a decided price no matter whether its price increases or decreases at the time of delivery. This removes the middle man, this sounds good but may not be beneficial for small farmers.
Why big companies will deal with small farmers when their demand is huge? Also, companies will make contracts one-sided, this will increase the chances of farmers’ exploitation. Farmers need someone or educate themselves to understand this game played by huge companies.
Another thing is there are some essential items that have limits on their storage, if you store them beyond that limit then you might have to go to jail. But with this bill Government has removed these limits in some items. Now understand this.
Onion comes under essential items and there is a limit in storing them, but this bill removed these limits. So now any trader will store a large amount of onion when their price is low and will start selling it when their price will increase.
Another thing is the freedom to sell. Now farmers can go to any state and sell their products, they don’t need any Mandi. Also, there were taxes on selling products in Mandi. These taxes were collected by the state government.
These profits collected from Mandi can be used by the state government in development or for farmers. Whenever the farmers face loss, the government used to buy their products in MSP (minimum selling price). But by this bill, the state government will lose its profits from Mandi.
So now farmers fear, that after this bill Government will stop buying their products and they will face loss. So overall, there is a lot of confusion between farmers and the government. The government is not explaining what they are trying and farmers are influenced by others.
Hope You understood what’s Going on in our country. We hope everything thing get well soon, the government should hear what Farmers need and explain to them what they are trying to do, cause even if you are trying to do something good for farmers but they didn’t get that, so it’s of no use. It’s important for them to understand.