The Farm Laws Repeal Bill, 2021 |The LexSphere Library

SECTION Section 1

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•1

•THE FARM LAWS REPEAL BILL, 2021

•A

•BILL

•to repeal the Farmers (Empowerment and Protection) Agreement on Price Assurance and

•Farm Services Act, 2020, the Farmers' Produce Trade and Commerce (Promotion and

•Facilitation) Act, 2020, the Essential Commodities (Amendment) Act, 2020 and to

•amend the Essential Commodities Act, 1955.

•BE it enacted by Parliament in the Seventy-second Year of the Republic of India as

•follows:—

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6.In view of the above, the aforesaid Farm Laws are proposed to be repealed. It is

•also proposed to omit sub-section ( 1A) of section 3 of the Essential Commodities

•Act, 1955 (10 of 1955) which was inserted vide the Essential Commodities (Amendment)

•Act, 2020 (22 of 2020).

•NARENDRA SINGH TOMAR.

•N

•EW DELHI;

•The 24th November, 2021.

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•FINANCIAL MEMORANDUM

•The Farm Laws Repeal Bill, 2021 does not involve any expenditure either recurring or

•non-recurring from and out of the Consolidated Fund of India.

•4

•ANNEXURE

•EXTRACT FROM THE ESSENTIAL COMMODITIES ACT, 1955

•(10 OF 1955)

•*****

3.(1) * * * * *

•(1A) Notwithstanding anything contained in sub-section ( 1),—

(a)the supply of such foodstuffs, including cereals, pulses, potato, onions,

•edible oilseeds and oils, as the Central Government may, by notification in the Official

•Gazette, specify, may be regulated only under extraordinary circumstances which may

•include war, famine, extraordinary price rise and natural calamity of grave nature;

(b)any action on imposing stock limit shall be based on price rise and an order

•for regulating stock limit of any agricultural produce may be issued under this Act only

•if there is—

(i)hundred per cent. increase in the retail price of horticultural produce; or

•(ii) fifty per cent. increase in the retail price of non-perishable agricultural

•foodstuffs,

•over the price prevailing immediately preceding twelve months, or average retail price

•of last five years, whichever is lower:

•Provided that such order for regulating stock limit shall not apply to a processor or

•value chain participant of any agricultural produce, if the stock limit of such person does not

•exceed the overall ceiling of installed capacity of processing, or the demand for export in case

•of an exporter:

•Provided further that nothing contained in this sub-section shall apply to any order,

•relating to the Public Distribution System or the Targeted Public Distribution System, made

•by the Government under this Act or under any other law for the time being in force.

Explanation.—The expression "value chain participant", in relating to any agricultural

•product, means and includes a set of participants, from production of any agricultural produce

•in the field to final consumption, involving processing, packaging, storage, transport and

•distribution, where at each stage value is added to the product.

•*****

•Powers to

•control

•production,

•supply,

•distribution,

etc., of

•essential

commodities.

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•LOK SABHA

•————

•A

•BILL

•to repeal the Farmers (Empowerment and Protection) Agreement on Price Assurance and

•Farm Services Act, 2020, the Farmers' Produce Trade and Commerce (Promotion and

•Facilitation) Act, 2020, the Essential Commodities (Amendment) Act, 2020 and to amend

•the Essential Commodities Act, 1955.

•————

•(Shri Narendra Singh Tomar, Minister of Agriculture and Farmers' Welfare)

•MGIPMRND—1149LS(S3)—25-11-2021.

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1.This Act may be called the Farm Laws Repeal Act, 2021.

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2.The Farmers (Empowerment and Protection) Agreement on Price Assurance and

•Farm Services Act, 2020, the Farmers' Produce Trade and Commerce (Promotion and Facilitation)

•Act, 2020 and the Essential Commodities (Amendment) Act, 2020 are hereby repealed.

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3.In section 3 of the Essential Commodities Act, 1955, sub-section ( 1A) shall be

omitted.

•Short title.

•Repeal of Acts

•20 of 2020, 21

•of 2020 and 22

•of 2020.

•Amendment

•of Act 10 of

SECTION Section 5

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1955.

•Bill No. 143 of 2021

•5

•AS INTRODUCED IN LOK SABHA

•STATEMENT OF OBJECTS AND REASONS

•Agriculture marketing plays an important role in providing necessary services to

•producers and buyers. Majority of the farmers in India are small and marginal farmers with

•less than two hectares of land. The Government has been making several interventions to

•support farmers, including small and marginal farmers by providing quality seeds, credit,

•insurance, procurement and market support and the like.

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2.The Budget allocation for Department of Agriculture has been increased by more

•than five times since 2014 and this year one hundred twenty three lakh crore rupees are being

•spent on various schemes or programmes. Under the Soil Health Card Scheme, approximately

•twenty-two crore cards have been distributed to farmers which are aimed at enhancing farm

productivity.Under another Scheme, one hundred six lakh crore rupees have been transferred

•directly to eleven crore farmers. To increase the bargaining power of small and marginal

•farmers, a Central Sector Scheme for formation and promotion of ten thousand farmer producer

•organisations with a budget of six thousand eight hundred sixty-five crore rupees has been

launched.Risk mitigation for farmers has been ensured under the Bima Yojana. Since the

•launch of the said Yojana in 2016, claims of over one lakh crore rupees have been settled

•benefitting approximately eight crore eighty-three lakh claims of farmers. The Agriculture

•Infrastructure Fund of one lakh crore rupees will promote investment in farm gate for post

•harvest infrastructure like warehouses, cold storages and community assets and the like.

•The agricultural marketing infrastructure has been modernised with the launch of National

•Agriculture Market, a pan-India virtual trading platform for transparent price discovery. The

•flow of credit for crop loans has been doubled since 2014 to sixteen lakh crore rupees.

•Allocation to Micro Irrigation has also been doubled. Farmers' welfare schemes and

•programmes such as natural farming, organic farming, Oil Palm Mission, Pulses Mission and

•Agriculture Mechanisation have been expanded. For the first time Minimum Sale Price has

•been fixed atleast 1.5 times of the cost of production, and procurement of oilseeds, pulses

•and cotton have also started, in addition to paddy and wheat.

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3.To enable the farmers to sell their produce at higher prices and benefit from

•technological improvements, farmers have been provided access to agriculture markets which

•will help them increase their income. With this objective three Farm Laws, namely, (i) the

•Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services

•Act, 2020 (20 of 2020); ( ii) the Farmers' Produce Trade and Commerce (Promotion and

•Facilitation) Act, 2020 (21 of 2020); and (iii) the Essential Commodities (Amendment) Act,

•2020 (22 of 2020), were enacted, as a part of the Government's endeavour to improve the

•condition of farmers including small and marginal farmers. These enactments—

(a)provided freedom to the farmers to sell their produce to any buyer at any

•place of their choice to realise remunerative prices;

(b)created an ecosystem wherein processor, bulk buyers, organised retailers

•and exporters and the like can directly engage with the farmers;

(c)created a facilitative framework for electronic trading to improve transparency

•and price discovery; and

(d)provided a legal framework for farming contracts to protect the interest of the

•farmers, economically empower them and assure the price for their produce in advance.

•For years, this demand was constantly made by farmers, agricultural experts, agricultural

•economists and farmer organisations across the country. During the COVID-19 pandemic,

•reform measures have been undertaken in many sectors of the economy, including agriculture

•and allied sectors.

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4.These enactments were made for the overall socio-economic development of the

•farmers and rural sector after extensive consultations with various stakeholders following

•the felt need and demand of the farmers' organisations, suggestions and recommendations

•of the experts, professionals, agricultural economists, expert committees over the years.

•Various Governments during the last three decades have tried to initiate such reforms, but

•not in a comprehensive way. Further, there has been technological advancement in recent

times.

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5.Even though only a group of farmers are protesting against these laws, the

•Government has tried hard to sensitise the farmers on the importance of the Farm Laws and

•explain the merits through several meetings and other forums. Without taking away the

•existing mechanisms available to farmers, new avenues were provided for trade of their

produce.Besides, farmers were free to select the avenues of their choice where they can get

•more prices for their produce without any compulsion. However, the operation of the aforesaid

•Farm laws has been stayed by the Hon'ble Supreme Court of India. During the COVID period,

•the farmers have worked hard to increase production and fulfil the needs of the nation. As

•we celebrate the 75th Year of Independence— "Azadi Ka Amrit Mahotsav", the need of the

•hour is to take everyone together on the path of inclusive growth and development.