Modi govt's farm sector reforms: Congress opposes now but had such plans when in power

Modi government and Opposition, led by Congress, are engd in a bitter tug of war over three key bills that aim to reform agricultural sector that is plagued with many inefficiencies in its marketing, pricing, and distribution system. proposed laws have led to heated exchanges both in and outside Parliament and triggered protests in key farming states like Punjab, Haryana, and Uttar Presh.

Following pass of two such bills in Lok Sabha on Thursday, Union Minister and Akali Dal leer Harsimrat Kaur Bal resigned in protest which Congress called 'atrics'.

w, it is important to understand politics behind row. Let's begin:

This week, three bills were introduced in Lok Sabha by Union Agriculture Minister Narendra Singh Tomar to replace ordinances passed in June. bills are:

1. Farmers' Produce Tre and Commerce (Promotion and Facilitation) Bill, 2020 to promote barrier-free inter-state and intra-state tre in agriculture produce;
2. Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 to eng with processors, aggregators, wholesalers, large retailers, exporters;
3. Essential Commodities (Amendment) Bill, 2020 to liberalize regulatory environment for farmers

Congress and or like-minded parties have been vehemently opposing long-pending reforms. However, Congress’ actions w are totally opposite of ir actions in past regarding such reform.

Farmers' Produce Tre and Commerce (Promotion and Facilitation) Bill, 2020

This bill seeks to provide for creation of an ecosystem where farmers and trers enjoy  freedom of choice relating to sale and purchase of farmers' produce which facilitates remunerative prices through competitive alternative tring channels. This will promote efficient, transparent, and barrier-free inter-State and intra-State tre and commerce of farmers' produce outside physical premises of markets or deemed markets tified under various State agricultural produce market legislations. It also aims to provide a facilitative framework for electronic tring and for matters connected rewith or incidental reto.

Actions of Congress in past

Congress in its manifesto 2019 in sub-para 11 of para 7 mentioned that “Congress will repeal Agricultural Produce Market Committee’s Act and make tre in agriculture produce-including export and inter-state tre-free from all restrictions”.

As per media reports, Congress just before 2014 Lok Sabha elections publicly anunced that Congress-ruled states should de-tify fruits and vegetables from APMC Act. In pursuance, Congress-ruled states of Karnataka, Assam, Himachal Presh, Meghalaya, and Haryana de-tified fruits and vegetables.

Congress-led UPA government after coming into power in 2004 started persuasion with states to opt Model APMC Act 2003 to liberalize state agricultural marketing laws. UPA also formulated Model APMC Rules 2007 for implementation of Model APMC Act. government constituted ‘Committee of State Ministers, In-charge of Agriculture Marketing to Promote Reforms’ under chairmanship of Harshvardhan Patil, n Minister for Cooperation and Parliamentary Affairs, Govt. of Maharashtra. In its report in 2013, committee proposed Agricultural Produce Inter-State Tre and Commerce (Development & Regulation), Bill for barrier-free markets.

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Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020

This bill seeks to provide for a national framework on farming agreements that protects and empowers farmers to eng with agri-business firms, processors, wholesalers, exporters, or large retailers for farm services and sale of future farming produce at a mutually agreed remunerative price framework in a fair and transparent manner.

Actions of Congress in past

Contract farming has been in practice for many deces in India in various States. It provides a host of benefits for farmers including better marketing link, access to new techlogy, protection from market volatility as well as private investment in supply chain and overall agricultural sector including better quality products.

Contract farming has been recognized as a chief enabler in various reports of Planning Commission and has been implemented by many states under State APMC Acts. 11th Five Year Plan, 2007–12, which was released during tenure of UPA government, mentions: 

“Several States have amended Agricultural Produce Marketing Committee Acts to allow private markets to be set up in competition with existing mandis... Contract farming, which is being encourd by many States, also provides a mechanism for improving links between farmers and markets through active involvement of private sector, which can also serve as a supplier of key inputs and extension vice.”

Various states such as Andhra Presh, Assam, Chhattisgarh, Goa, Gujarat, Haryana (2007, INC), Himachal Presh, Jharkhand, Karnataka (2003, INC), Maharashtra (2006, INC-NCP), Mhya Presh (2003, INC), Mizoram, Nagaland, Odisha (2006, BJD), Rajasthan, Sikkim, Telangana, Tripura, and Uttarakhand have me provisions for contract farming under state APMC Act. Three states including Punjab (2013, S), Tamil Nu (2019, AIMK), Odisha (2020, BJD) have passed separate Contract Farming Acts.

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Essential Commodities (Amendment) Bill, 2020

This bill seeks to remove commodities like cereals, pulses, oilseeds, edible oils, onion, and potatoes from list of essential commodities. This will remove fears of private investors of excessive regulatory interference in ir business operations. freedom to produce, hold, move, distribute, and supply will le to harnessing of ecomies of scale and attract private sector/foreign direct investment into agriculture sector. It has been provided in Amendment, that in situations such as war, famine, extraordinary price rise, and natural calamity, such agricultural foodstuff can be regulated.

Actions of Congress in past

In 2019 Manifesto, Congress promised to replace Essential Commodities Act, 1955 by an enabling law that can be invoked only in case of emergencies.

In above-cited 2013 report, UPA era Committee said: “…Essential Commodities Act and plethora of Orders promulgated under this Act by Centre and States prevented development of free and competitive marketing system in country.”

Planning Commission in a 2011 report also mentioned about reduction of list of commodities from purview of Essential Commodities Act and recommended for imposition of tre and marketing restrictions only during emergency.