The new draft of the agriculture law being proposed by the Government of India has raised concerns that it could be even more damaging to farmers than the three controversial farm laws it seeks to replace. While the previous farm laws led to widespread protests across the country, the new draft is feared to be more insidious in its impact, offering no real benefit to farmers while potentially accelerating the corporatization of agriculture, reducing farmers’ autonomy, and undermining food security.
The Context: A History of Controversy
In 2020, the Government of India introduced three major farm laws: the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, and the Essential Commodities (Amendment) Act. These laws were met with massive protests by farmers, particularly from Punjab, Haryana, and Uttar Pradesh, who feared that the laws would lead to the dismantling of the Minimum Support Price (MSP) system and the eventual corporatization of the agricultural sector.
After a prolonged standoff, the government repealed these laws in late 2021. However, the new draft agriculture law is seen as a replacement that might be even more dangerous in certain respects.
Lack of Real Protection for Farmers
The new draft law, which has been presented with the government’s claims of improving the agricultural sector, still does not address the core issues faced by Indian farmers. Chief among these issues is the lack of guaranteed prices for their produce, a problem that has plagued Indian agriculture for decades. The Minimum Support Price (MSP) system, which ensures a guaranteed price for certain crops, has been weakly enforced, leaving many farmers at the mercy of market fluctuations. While the draft law doesn’t explicitly dismantle MSP, critics argue that it doesn’t offer any new framework to ensure that farmers get fair compensation for their crops.
Instead, the new law might push farmers further into the hands of large corporations. The law appears to encourage contract farming and the rise of private traders, which could marginalize smaller farmers. Contract farming has been criticized for leaving farmers vulnerable to exploitation, as they often lack the bargaining power to secure favorable terms.
More Corporate Control
One of the most contentious aspects of the previous laws was the fear that they would lead to greater control of agriculture by big corporations. The new draft law doesn’t alleviate these concerns. In fact, it could worsen the situation. By encouraging deregulated markets, the law could result in corporate monopolies controlling the supply chain from farm to market, leaving farmers without a fair price for their goods.
The involvement of private players in the agriculture sector could also mean the loss of public procurement systems, which have historically provided a lifeline to small-scale farmers. Large corporations could dictate the terms of trade, pushing farmers into low-paying contracts with little recourse.
Environmental and Social Concerns
Another issue with the new draft agriculture law is its potential environmental impact. By pushing farmers to adopt more commercialized and corporate-driven practices, the law could encourage the overuse of chemical fertilizers and pesticides, leading to environmental degradation. This shift could also exacerbate water scarcity issues, as commercial crops often require large amounts of water, further straining India’s already depleted water resources.
The social consequences could be just as severe. The law risks exacerbating the growing gap between rich and poor farmers. While large agricultural businesses could benefit from the new provisions, small and marginalized farmers could be left behind. This could lead to increased rural poverty and more landless laborers, creating greater inequality in Indian society.
No Clarity on MSP and Procurement
One of the most pressing concerns about the new draft law is the lack of clarity on the MSP system. Farmers had hoped that the government would come up with a concrete law ensuring MSP and procurement for all crops. However, the new draft law offers no such assurances. Without a clear guarantee for MSP and a robust procurement system, farmers are likely to remain at the mercy of market forces.
Moreover, the draft law allows for more unregulated private markets, which means that farmers may have even fewer options to sell their produce at a fair price. Without an official mechanism to ensure that farmers are paid fairly for their crops, the government risks plunging the agricultural sector further into crisis.
The Need for Genuine Reform
The introduction of the new draft agriculture law represents an opportunity for the government to address the serious challenges facing Indian farmers. However, the current draft falls short of delivering meaningful reform. It seems more focused on corporate interests than on the welfare of farmers.
What is needed is a comprehensive agricultural policy that includes guaranteed prices for crops, strong support for smallholder farmers, investments in rural infrastructure, and measures to make farming more sustainable. Instead of pushing for privatization and deregulation, the government should focus on building a system that is equitable, sustainable, and transparent.
Conclusion
In its current form, the new draft agriculture law is unlikely to bring any real benefit to the farmers of India. Far from empowering them, the law may deepen the challenges they already face, from low prices and poor market access to increasing corporate control over agriculture. Without a genuine commitment to farmer welfare and food security, the law risks exacerbating the struggles of India’s agricultural community.
If the government is serious about improving the agricultural sector, it must engage with farmers, address their concerns, and ensure that the policy reforms are truly in their best interest. Until then, the draft agriculture law might prove to be more dangerous than the laws it seeks to replace.