InvestorQ : What is the reason for the farmer agitation that is going on in Delhi for the last 15 days?
diksha shah made post

What is the reason for the farmer agitation that is going on in Delhi for the last 15 days?

Arti Chavan answered.
3 years ago

The farmer protests over the Farm Bill 2020 have been on since November 26 this year. In the cold winter, there are thousands of farmers from the states of Punjab and Haryana agitating on the outskirts of Delhi.

While the government wants the farmers to reconcile with the market reality, the farmers obviously have a point too. Here is what is triggering the farmer agitation leaving so many of the agriculturists in India totally upset. Here are some key reasons they are upset.

· To begin with, the protesting farmers are terribly upset because they believe that the Farm Bill could end being a virtual sell-out to large corporate interests. They fear that the corporate bigwigs could gradually come to dominate farming in India.

· Most farmers are also concerned that the Farm Bills would encourage farmers to directly sell to the private companies. To save tax, they may choose to keep the APMC mandis outside and prefer to sell directly.

· Now we come to the real worry. Farmers are worried that this will lead to the scrapping of the minimum support price (MSP) mechanism which assures farmers a lucrative price today. This may not happen immediately but eventually there will be no choice.

· Farmers are also concerned of the government moving scores of agri commodities out of Essential Commodities list. This could allow large corporates and wholesalers to stock pulses, grains and vegetables creating artificial shortages in the market.

· Bigger farmers also double up as “Adathiyas” or commission and auction agents and earn hefty commissions and interest on loans. That may actually come to nought for the large farmers, spurring protests.

· Lastly, the governments are also worried about loss of revenues. The mandi tax accounts for 9% of the state revenues in Punjab and Haryana, which is why the state governments are concerned. In other states it is less than 1% of revenues.

So it is a combination of farmer interests, agent interests and government interests here.