Farm Bill 2020
India is an agrarian country with more than half of the population depends on agriculture sectors, Share of agriculture in country GDP is 16% of total and GDP From Agriculture in India decreased to 4546.58 INR Billion in the second quarter of 2020 from 5306.26 INR Billion in the first quarter of 2020. Farmers depend on rains for crops to grow as precipitation is less from the past few years. Govt of India has implemented many schemes to improve the margin of farmers by providing MSP for the crop and providing insurance to the crops and distributing seeds and fertilizers to them. Even doing so only some are benefiting from it. Recently in Parliament 3 farm bills have passed, they are
The three bills are
- Farmers Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020
- Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020
- Essential Commodities (Amendment) Bill, 2020
Highlights of Farm Bill 2020
1.Farmers Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020
- To build an ecosystem where farmers and traders enjoy the liberty to market and buy farm produce outside registered ‘mandis’ understates’ Agricultural Produce Market Committee (APMC).
- To support the inter-state and intra-state sale of farmers’ crop
- To lower the marketing and transportation costs and help the farmers in getting more favourable rates
- To implement methods for E-commerce
- Mandis which are registered under APMC markets under state government going to lose the revenue which is collected in the form fees from mandi
- Small and brokers in the mandi going to lose the jobs if implemented
- The MSP system may be going to eventually end if passed.
- e-NAM which uses physical ‘mandi’ going to be neglected as there is no trading.
2.Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020
- Farmers can make deals with exporters, wholesalers, retailers and agrotech to sell their crop before harvest at pre-agreed prices.
- Farmers who are having land less than 5 hectares are going to benefit from aggregation and contract as these farmers account to 86% of farmers in India.
- To shift the uncertainty of market from farmers to sponsors
- To facilitate farmers to reach modern technology and educate them
- To lessen the expense of marketing and hike the farmer’s earnings.
- Farmers can join straight in marketing by excluding agents for complete price.
- Farmers don’t have adequate knowledge of contracts and how to process, they may not be aware of terms and conditions.
- Farmers will be on the lower end when a dispute arises in the contract as he cannot afford the legal system
- Big companies may not want to do business with small and marginal farmers
3.Essential Commodities (Amendment) Bill, 2020
- Cereals, pulses, oilseeds, onion and potatoes were excluded from the list of essential commodities. The imposition on stockholding will be implemented only in national emergency likes War
- FDI and private sector investments in the farming sector is going to increase as it removes the inference of regulating bodies to do business
- Storage and modern supply systems can be improved by the grant obtained from the bill.
- price stability is obtained for both farmer and consumer
- It builds an aggressive market environment which reduces the wastage of farm produce.
- Prices of the commodities will be in the hands of big companies as they can manage the stocks
- Farmers are going to get less price if the produce is more in the markets as big companies dictate the price.
- The recent decision on export ban on onion builds doubt on its implementation.
How graduates can help farmers day to day challenges with innovation and technology
AgriBazaar As a full-stack agritech player, AgriBazaar has replicated the physical mandi (marketplace) to an e-mandi aggregator model
Crofarm Farm-to-retail agritech startup Crofarm recently launched its social commerce venture OTIPY, to revolutionise the supply chain of fresh produce in India.
Unnati is a new-age fintech company offering farming lifecycle support to farmers across the country. Driven by data, the brand helps convert farmers into entrepreneurs by handholding them through every stage of the farming cycle with services such as working capital, purchasing the right seeds, nutrients and pesticides for crops, harvesting, and selling the crops.
CropIn Full-stack agritech organisation CropIn Technology Solutions provides smart SaaS-based solutions to agribusinesses globally, to maximise productivity
Arya Collateral Delhi-based agri-tech startup Arya Collateral is among a few Indian startups whose business performance turned out to be positive amid the COVID-19 pandemic.
Govt schemes were available to farmers to encourage Agri Entrepreneurship
- Pradhan Mantri Kisan Samman Nidhi Yojana
- Pradhan Mantri Kisan Maandhan yojana
- Pradhan Mantri Fasal Bima Yojana (PMFBY)
- Kisan Credit Card (KCC) scheme
- Pashu Kisan Credit Card Scheme
- Paramparagat Krishi Vikas Yojana (PKVY)
- Pradhan Mantri Krishi Sinchai Yojana (PMKSY)
- National Agriculture Market (e-NAM)
- Dairy Entrepreneurship Development Scheme
- Rainfed Area Development Programme (RADP)
- Soil Health Card Scheme
- National Mission for Sustainable Agriculture (NMSA)
- Livestock insurance Scheme
- Gramin Bhandaran Yojna
The bills which are passed have both advantages and disadvantages, but can be overcome by creating awareness in the farmers on how to utilize the schemes provided by these bills to gain profits.