The farmers (empowerment and protection) agreement on price assurance and farm services act,2020

Question 1

What is basic objective that can be drawn from name of law?

Answer 1

Protecting farmers interest through legal agreement

Question 2

What can be inferred from price assurance?give example.

Answer 2

Creates dispute settlement mechanism if there is any issue in farmer and business owner.

Ex:Business owner & farmer decide a deal that 100kg of rice will be bought by businessman at some price.Business owner claims later that 50 kg of rice is not of good quality and decreases the amount -> such cases will be settled through mechanism set by this act.

Question 3

What is meaning of wording Farm Services in this act?

Answer 3

• Farmer will be seen as service provider,where quality of the agriculture produce that industrialist wants is already finalized
• Delivery to the buyer’s premises

Question 4

What is primary & secondary purpose of this act?

Answer 4

1.Contract farming

2.Providing nation wide legal framework where farmers will produce products as per contracts with corporate investors for a mutually agreed renumeration.
{NATION WIDE LEGLAL FRAMEWORK}

Question 5

Positive?Negative?

Answer 5

• Positive-> Will increase the private investment
• Negative->private enterprises are better equipped in legal matters than farmers -> hence there is a chance of farmers being exploited using legal loopholes.

Question 6

Update?April 1

Answer 6

On January 12, the Supreme Court suspended the implementation of the three laws and appointed a four-member committee of experts “to listen to the grievances of the farmers

Question 7

what do these new farm laws do?(All 3)

Answer 7

• make it easier for farmers to bypass government-regulated markets (known locally as mandis) and sell produce directly to private buyers.
• Farmers can enter into contracts with private companies(i.e.contract farming) & sell across state borders.
• allow traders to stockpile food

Question 8

Concerns of farmers?

Answer 8

86% India’s smallholder farmers i.e. less than 2 hectares

• Small farmers fear that they can’t negotiate with larger companies.
• new laws also do not make written contracts mandatory.
• The new rules do not guarantee any minimum price for any product, and farmers worry that the existing MSP will be abolished at some point.