In his address to the nation yesterday, Prime Minister Narendra Modi announced that the three farm laws which were passed on September 27, last year will now be repealed in the upcoming winter session of the Parliament which commences on November 29. 

The three farm laws, namely,  – Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020; Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020; and Essential Commodities (Amendment) Act, 2020 were alleged by the protesting farm leaders to be anti-farmer. The legislation was also seen by the protesters as an attempt to corporatise the agricultural sector in the interest of the private corporations.

Here’s what the three farms laws entailed:

Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020

The first Act in the troika of farm laws entailed selling of the agricultural produce by the farmers outside the domain of the local agriculture produce marketing committee (APMC), popularly known as the mandi.  These farmer markets are regulated by the government. 

The law stated that all locations outside the mandi premises would be termed as a ‘trade area’ and traders would be able to buy the produce without paying the market fee or any cess which is otherwise paid inside the mandi premises.

The law, in essence, overrides the APMC acts of the state governments that regulate the sale of agricultural produce. Also, there is no mention of minimum support price (MSP) in the Act.

Protesting farmers, primarily from Punjab and Haryana, perceived the Act as an attempt to do away with the government-regulated mandi system and invite private players who could buy the produce at cheaper prices.

The cultivators also complained about the dispute resolution mechanism as specified in the Section 8 of the Act. 

“In case of any dispute arising out of a transaction between the farmer and a trader under section 4, the parties may seek a mutually acceptable solution through conciliation by filing an application to the Sub-Divisional Magistrate who shall refer such dispute to a Conciliation Board to be appointed by him for facilitating the binding settlement of the dispute,” the Act read.

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The protesters feared that it was practically not feasible for them to approach the SDM in a dispute with the trader and that the rich trader or a corporation will have an upper hand in the dispute resolution. 

The law also barred the jurisdiction of the civil court from entertaining any suit or proceedings in respect of any matter that could be dealt through the special mechanism provided in the law.

“No civil court shall have jurisdiction to entertain any suit or proceedings in respect of any matter, the cognizance of which can be taken and disposed of by any authority empowered by or under this Act or the rules made thereunder, stated the Section 15 of the Act.

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Interestingly, in December, last year, the Union government had offered to roll back the dispute resolution process as specified in the Act.

Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020

The second Act presented a framework for contract farming. It mentioned that the farmers could enter into contracts with the traders or private companies before sowing their field. This law also has no mention of MSP guarantee and farmer leaders like Rakesh Tikait alleged that it will do away with the MSP system.

“An Act to provide for a national framework on farming agreements that protects and empowers farmers to engage 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 and for matters connected therewith or incidental thereto,” read the Act. 

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Bhartiya Kisan Union stated that the Act also paves way for the exploitation of small and marginal farmers at the hands of private companies.

Essential Commodities (Amendment) Act, 2020

This Act, which was actually an amendment to the original Essential Commodities Act, 1955, was passed to nullify the Union government’s ability in restricting the limit of stockholding essential commodities except in times of emergencies.

“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;” stated the Act.

The Forum of Traders Organisations, a body of traders is of the opinion that amendment to the Act will allow big businessmen to hoard essential commodities such as cereals, pulses, edible oil, onion and potato leading to rise in prices.

Repealing the three farm laws

There are two ways to repeal an existing law in the Indian Constitution: by bringing an ordinance or by legislating another Act that nullifies the validity of the existing laws.  

1. If the government pursues the ordinance route, the laws will have to be replaced with another set of three laws within a period of six months. Also, it is noteworthy that if the ordinance lapses and the new laws are not passed in the specified period, the repealed laws can again be turned into valid laws.
2. If the government at the Centre takes the legislative route, a new Act will have to be passed and would involve all stages of the legislative process: debates in both the Houses of the Parliament and eventual assent by the President.