{"id":71404,"date":"2020-12-01T11:24:38","date_gmt":"2020-12-01T05:54:38","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=71404"},"modified":"2021-05-08T17:25:57","modified_gmt":"2021-05-08T11:55:57","slug":"dilli-chalo-farmers-protest","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/dilli-chalo-farmers-protest\/","title":{"rendered":"Dilli chalo farmer\u2019s protest"},"content":{"rendered":"\n<p><strong>Context-\u00a0<\/strong>Farmers from all over the country are protesting seeking the repeal of the\u00a0new farm laws.<\/p>\n<p><strong>What is Farmers\u2019 Produce Trade and Commerce [FPTC] Act, 2020?<\/strong><\/p>\n<ul>\n<li><strong>Break the monopoly-<\/strong>\u00a0It allows intra-state and inter-state trade of farmers\u00a0produce beyond the physical premises of Agricultural Produce and Livestock Market Committee\u00a0(APMC) markets.<\/li>\n<li>State will be\u00a0now prohibited from levying any market fees\u00a0or cess outside APMC areas.<\/li>\n<\/ul>\n<p>However, a large proportion of Indian harvest is sold outside mandis, only 29% and 44% of the harvest is sold in a\u00a0mandi.<\/p>\n<p><strong>Farmer\u2019s fears<\/strong>\u2013 This could corporatize agriculture,\u00a0threaten the current mandi network and State revenues\u00a0and dilute the system of government procurement at guaranteed prices.<\/p>\n<h5><strong>What are the concerns of farmers?<\/strong><\/h5>\n<ol>\n<li><strong>They are farmers are forced to sell their harvest outside the mandis due to<\/strong><\/li>\n<\/ol>\n<ul>\n<li><strong>India still doesn\u2019t have enough mandis<\/strong>\u2013 Only 7,000 APMC markets operating across the country.<\/li>\n<li><strong>Transport costs-<\/strong>\u00a0Most small and marginal farmers, given their small marketable surplus, do not find it economical to bear the transport costs to take their harvests to\u00a0mandis.<\/li>\n<\/ul>\n<p>Therefore, the farmer ends up selling their harvest to a village\/local trader even if at a lower price. Even if private markets replace\u00a0mandis, small and marginal farmers will continue to sell to traders in the village itself.<\/p>\n<ol start=\"2\">\n<li>No assurance of receiving higher prices even if private market emerges.<\/li>\n<li><strong>Adverse impact on rural investments-\u00a0<\/strong>Mandi\u00a0taxes are reinvested by APMCs to improve market infrastructure. A fall in\u00a0mandi\u00a0taxes would reduce the surplus available with APMCs for such investment.<\/li>\n<\/ol>\n<h5><strong>What are the reasons for poor private investment in market?<\/strong><\/h5>\n<ul>\n<li><strong>High transection cost-\u00a0<\/strong>Private players have incurred considerable costs in opening collection centres and for salaries, grading, storage and transport.<\/li>\n<li>Corporate retail chains face additional costs in urban sales and storage, as well as the risk of perishability.<\/li>\n<\/ul>\n<p>Therefore, corporate retail chains prefer purchasing bulk quantities from\u00a0mandis\u00a0rather than directly from farmers.<\/p>\n<h5><strong>What is the farmer\u2019s fear with regard to MSP?<\/strong><\/h5>\n<p>Many policy signals point to a strategic design to weaken the MSPs<\/p>\n<ul>\n<li>MSPs are rising at a far slower rate over the past five to six years than in the past.<\/li>\n<li>The government has not yet agreed to fix MSPs at 50% above the C2 cost of production.<\/li>\n<li>Recommendation of CACP to stop open-ended procurement of food grains.<\/li>\n<\/ul>\n<h5><strong>What Steps needs to be taken?<\/strong><\/h5>\n<ul>\n<li>India needs an increase in the density of\u00a0mandis, expansion of investment in\u00a0mandi\u00a0infrastructure and a spread of the MSP system to more regions and crops.<\/li>\n<li>APMCs need internal reform to ease the entry of new players, reduce trader collusion and link them up with national e-trading platforms.<\/li>\n<li>The introduction of unified national licences for traders and a single point levy of market fees.<\/li>\n<\/ul>\n<h5><strong>Way forward-<\/strong><\/h5>\n<p>The Farm Acts were legislative measures that were passed without elaborate discussion with stakeholders. Thus, government has to take steps to address the genuine fears of farmers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Context-\u00a0Farmers from all over the country are protesting seeking the repeal of the\u00a0new farm laws. What is Farmers\u2019 Produce Trade and Commerce [FPTC] Act, 2020? Break the monopoly-\u00a0It allows intra-state and inter-state trade of farmers\u00a0produce beyond the physical premises of Agricultural Produce and Livestock Market Committee\u00a0(APMC) markets. State will be\u00a0now prohibited from levying any market&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/dilli-chalo-farmers-protest\/\">Continue reading <span class=\"screen-reader-text\">Dilli chalo farmer\u2019s protest<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":71705,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,1351,1310],"tags":[1275,1471],"class_list":["post-71404","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","category-daily-news","category-daily-news-updates","tag-agri_1","tag-farm_laws_related_issues","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/12\/Dilli-chalo-farmers-protest-1.jpg?fit=1280%2C720&ssl=1","views":{"total":0,"cached_at":"","cached_date":1704830347},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/71404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=71404"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/71404\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/71705"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=71404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=71404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=71404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}