The document discusses recent farm laws passed by the Indian government. It summarizes that previously, farmers were exploited by money lenders and middlemen who would buy crops cheaply and sell at inflated prices. To address this, state-run markets (mandis) were established but middlemen still exploited loopholes. The new farm bills aim to eliminate middlemen and allow farmers to sell directly to private companies through transparent contracts. However, the bills may not increase minimum support prices for crops, so farmers may see limited benefits.
The document discusses recent farm laws passed by the Indian government. It summarizes that previously, farmers were exploited by money lenders and middlemen who would buy crops cheaply and sell at inflated prices. To address this, state-run markets (mandis) were established but middlemen still exploited loopholes. The new farm bills aim to eliminate middlemen and allow farmers to sell directly to private companies through transparent contracts. However, the bills may not increase minimum support prices for crops, so farmers may see limited benefits.
The document discusses recent farm laws passed by the Indian government. It summarizes that previously, farmers were exploited by money lenders and middlemen who would buy crops cheaply and sell at inflated prices. To address this, state-run markets (mandis) were established but middlemen still exploited loopholes. The new farm bills aim to eliminate middlemen and allow farmers to sell directly to private companies through transparent contracts. However, the bills may not increase minimum support prices for crops, so farmers may see limited benefits.
Before independence in 1947, the farmers are exploited by money lenders.
Then to protect them from such activities of money lenders government of India introduces various regulations. Similarly in 2003 there was Agriculture Produce Market Committee (APMC) introduced to provide farmers a platform for selling their farm produce to traders at government authorized Mandis at various locations in state. Agriculture is a state matter, therefore state government is the most benefitted through these mandis by collecting taxes. By here also middleman (example: traders) start exploiting farmers by finding loop holes in the system. For example if a farmer is selling his farm produce at 10rs. per kg to mandi dealers. Traders then buy them from mandis and then pass to distributers and so on. During this process due to inflation price increased to 20 to 30rs. per kg for the same farm produce. And these traders start controlling market rate of various items by hoarding. Therefore government of India introduced three farm bills which are filling up all these loop holes of old APMC. Earlier in 2003 when APMC was introduced, it was good but for current scenario it if not good for farmers. Second thing is about Minimum support price (MSP) of various crops. There are only 22 crops which comes under MSP, according to a committee report only 6% of farmers are benefitted from MSP and 81% of farmers are unaware of MSP. This shows concern of MSP is not a big issue for farmers. What matters is why MSP is low for defined crops, it should be increased. New farm bills are trying to eliminate middle men from the system who are exploiting the farmers of our country. It allows farmers to increase their area for selling their crops and to any private company in the market. These farm bills allow farmers to sign a transparent contract with private company where the interest of farmers is protected. So overall these three bill are good to consumers because it prevent the increment in the price of different crops. But if we talk about farmers, they are less benefitted from these three bills because then minimum price of the crops is not going to increase.