Essay on Farm Bill 2020 In 2100+ Words
Hello Friend’s Jai Hind, In This Post “Essay On Farm Bill 2020“. we will read step by step about the Farm Bill as an Essay with In-depth Analysis. this Essay On Farm Bill 2020 is an expected topic for all upcoming exams.
Note: In this Post, We will read Two “Essay on Farm Bill”, One Is 300+ Words And the second is 2100+ Words.
Essay On Farm Bill 2020 In 300 Words
India is an agricultural country more than 70% of India’s population is directly or indirectly involved in agriculture-related work.
Due to the hard work of these farmers, we are able to sit and eat in peace. These farmers sustain the entire country but it is a sad truth that they are struggling with starvation.
Recently, the central government has passed new agricultural bills for the benefit of farmers and the agricultural sector.
Farmers and some state governments are opposing these agricultural bills. farmers across the country have protested against these bills by taking to the streets.
The Farm bill 2020 or the agricultural bill 2020 is a combination of 3 bills recently passed by Parliament.
These bills have led to major structural changes in the agricultural sector.
These bills also encourage corporate investment in the agricultural ecosystem to make it more beneficial for farmers.
Farm bill 2020 provides an alternative platform for farmers to sell their produce in the open market. Now the farmer is free to sell his product to anyone else as their wishes.
Thus, they can earn a profit by selling crop products at a higher price. there will be no APMC market fee or Cess on transactions for such business areas.
The current MSP-based procurement of food grains in agriculture bill 2020 has not been removed.
The MSP based procurement system will continue and farmers can sell their crop products in the mandi at the existing MSP like before.
This Farm bill does not prescribe any mechanism for pricing. Thus, there is a fear among farmers that the agricultural system in the hands of private corporate houses may lead to the exploitation of farmers.
Essential commodities Ordinance removes pulses, oil, edible oils, onions, and potatoes from the essential list. Thus the modification uncontrolled the production, transport, storage, and distribution of these food items.
Conclusion (Essay On Farm Bill 2020 In 300 Words)
It is the responsibility of the government to take the opinions of farmers and also of the states before passing such bills to ensure the betterment of farmers and to eliminate the loopholes in them.
Note: Now, we will read “Essay On Farm Bill 2020 In 2100+ Words” From Basic To Advance with In-Depth Analysis… It’s helpful for all Competitives Exams.
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Essay on Farm Bill 2020 In 2100+ Words
In 1947, after getting Independence, the farmers used to sell their agricultural products directly to the consumer.
But due to the Zamindari system and other conditions, India’s maximum farmers had borrowed money from someone, On which moneylenders used to charge high-interest rates.
When the farmers were unable to pay this interest, then in such a situation Moneylenders used to buy farmers’ crops very cheaply.
So the next time the farmers needed a loan again to grow the crop, So it had become a cycle of ways in which the farmers were not able to get out, and their exploitation was happening.
To solve this problem of farmers’ exploitation, the government comes and brings the APMC act.
This act says that neither the farmers can sell their goods directly nor can any of them buy their goods directly.
All the sales will be through the mandi, which has been established through the APMC act. And the mandi will be run by State Government.
Let us now see that, which is the existing system of APMC, Which is the present model, how does this function work.
Every state government has its own APMC, The state divides it according to its area and each area has a special mandi market.
If a trader has to take goods from the mandi, he has to acquire the license of that specific mandi. Similarly, the farmer of that specific area can sell his goods only in that mandi
This system is required to sell or buy products in a specific mandi.
So if a trader has to buy goods from APMC, then before that, the license has to be acquired by APMC.
Let us now see how the goods are sold in the mandi, So there is auctioning for this. We divide the auction system into 2 parts,
The first is the MSP system. MSP means minimum selling price, The Government of India decides this MSP.
There is no MSP for all crops, there are only 22 such crops for which the Government of India gives the minimum selling price.
Finally, MSP means that it cannot be auctioned below it.
The MSP will be your starting level from where the auction starts, the goods cannot be sold below it.
And the other system, except those 22 crops which are all the other things, sells through the price discovery system.
That means how much demand is there in that market, how much is supplied, price discovery is done on its basis.
So the goods are sold through the auction system, we can say goods are sold through the supply chain.
That means, the farmers who are growing the produce and coming to that product to the end customer, there are a lot of middlemen in the middle.
Which is being tried to be removed by the new farm bill 2020.
So finally, we now understand the supply chain.
The farmers will take their produce to APMC, and the farmer will meet the commission agent there.
This commission agent will take forward this product to sell the goods to the trader, To discover its price.
This whole process is not transparent. After this, the Transaction Agent tells the farmers that your goods have been sold at this price.
Now this transaction agent, whoever farmer gets the value of his / her product, after that, takes at least 3% market fee from the farmers.
Now the final goods go to the trader, from the trader it goes to the wholesaler, to the retailer, and Many more vendors come, and finally, items come to the consumer.
By the time this production comes to the consumer, the difference in its cost is 50%. And at least 25% of the total product is spoiled.
If the consumer gets any goods in 50 rupees, then the actual farmer gets only 7-8 rupees, the rest of the money goes to the middle man. this is APMC’s existing system.
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In this, we see 2 flaws clearly.
The first drawback is who can become a trader,
Now the mandi which is in APMC’s control is under the control of the state government,
So many people say that the traders who are these are the same people who are close to the state government.
Only those who have a political connection can become traders.
And the second drawback is that there are so many middlemen between the farmer and the customer,
Due to which the consumer gets the final product at a much-inflated price, And the farmer has to sell his product at a very low price.
When the APMC act was enacted in 1963, its objective was to protect the farmers from exploitation.
But now, with the changing time, APMC’s own self has become the reason for exploitation. Because the APMC act talks about MSP.
But in a lot of situations, traders form a group and say that We will not buy goods from above MSP in a particular market.
Now think of the farmers, the products they produce are all raw material, If it is not sold in a limited time, it can be spoiled, Due to which its value decreases.
Finally, traders take advantage of this and they do not buy above the minimum support price, Due to which the farmers have to sell their goods at the minimum support price.
In order to increase the MSP, the farmers of different states did a lot of protests. There is no such thing as a regional MSP in our country.
Suppose, if we are growing rice in Gujarat then its farming cost will be different,
If we are growing rice in Punjab, then its farming cost will be different.
But the MSP for rice is the same in the whole country,
Meaning, Gujarat farmers can get a separate benefit for that, And Tamil Nadu farmers can get different benefits for that.
Therefore, in order to reform the existing structure of MSP, the farmers of different states made several protests.
Finally, the act of APMC has become the reason for exploitation and monopoly.
Even if we don’t think of bringing new farm bills Even then, there is a need for improvement in the APMC act over a period of time.
In 1991, when the policy of (LPG) Liberalisation, Privatisation and Globalisation has come.
At that time, the government had withdrawn its control from the maximum Indian industry, to create a free market and a free economy.
In the same manner, in the agriculture and farming industry, the government needs to reduce its control.
Definitely regulatory, a control mechanism is needed to ensure that the farmers are not exploited.
And this mechanism should be according to the needs of the 21st century.
For example… If the export is canceled then who will compensate for the cost, the farmer should not be exploited,
What if any trader buys goods under the MSP.
For example, this new system is coming through the new farm bill 2020, some state has already adopted, Like Karnataka, Bihar, Maharashtra.
So they have brought new laws in view of the flaw of these systems, Like if a trader buys goods below the MSP, So how plenty will it be, What will be the remuneration for the farmer.
Lastly, the government needs to reduce its control of the agriculture and farming industries.
Because the existing system is creating this monopoly, And monopoly is bad for any sector.
Because when there is a monopoly, there is no fair competition, Only a few people are able to take advantage of it, The Existing System talks about creating a monopoly.
Now, we will discuss whether the center had the power to make laws in this agriculture sector or not.
To understand it better, we will refer to the 7th Schedule.
There are 3 lists in the 7th schedule. List 1 is the center list in which law can be created by the center,
List 2 is the subject of the state, in which the state can form a law,
And List 3 is a concurrent list in which both center and state law can be made.
So agriculture comes in List 2, Entry 14 means that agriculture is part of the state list.
If we talk about strict division, then the power to make laws in the agricultural sector is only with the state and not with the center.
But this strict division has no meaning Because the article of Constitution 248 talks about the Residency Powers.
If there is any entry that is not present in these three lists, then this power will go to the center, it can make a law in that matter.
The second article is 249, which says that even if an entry is a part of the state list,
But if it comes to the national interest, then the center has the power that it can also make a law on the subject of the state list.
If you talk about entry 33 of the concurrent list, then it reduces the power to make law in the agricultural sector of the state.
Entry 33 says that in the case of agriculture the center can also make law.
Strictly speaking center has the power to make laws in terms of agriculture.
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Why Farmer’s Protesting (Essay On Farm Bill 2020 In 2100 Words)
Now we discuss why there are so many protests in some states against farm bills, why are they revolting so much, what is the reason.
After independence, every state has its own development rate, not everyone has the same rate of development.
Therefore some states are called rich states like Maharashtra, Gujarat, Karnataka, Tamil Nadu states.
Some of the states fall under the category of Poor State.
Every state government acquires some funds for its state, Some of the funds are given by the center.
Let’s take a common matrix. Suppose all state and union territories give hundreds of rupees to the center,
Now the center manages all these funds, But he also has to redistribute these funds.
At the time of redistribution, the center favors the poor state more for their better development, at the same time the rich state gets fewer funds.
If for example, if you look at the data of 2017 when Maharashtra gave the center a hundred rupees, then in return it received 13 rupees from the center, Which was the least.
And Kerala got 52 rupees in return, and Bihar got the most 219 rupees.
This division between rich states and poor states is not only in India but also in many countries.
For example, if we talk about the US when New Jersey gives 100 $, then it gets 60 $ instead.
But to get 13 rupees by giving 100 rupees in India, this difference is very much,
These funds can be used by the State Government in the development of their state, in the development of the farmer.
You understood the whole background, now we talk on the basis of the state.
If we take the example of Punjab, then the Punjab government has to develop for its state.
So he can depend on 2 funds on state funds and funds given by the center.
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We have seen that whenever Punjab gives 100 rupees, it gets fewer funds from the center instead.
So he has to acquire funds from nowhere or anywhere for the development of his state. Now the state government takes some taxes on all the APMC in entire India.
These taxes are as high as 1% -8.5%. The Punjab mandi is the highest tax,
So the APMC of Punjab Government is charged on Mandi Tax, Rural Development Tax is levied, By adding different taxes, Punjab Government collects 8% -8.5% tax as Mandi Tax.
And lastly, the entire tax has come to the state government, The government has the option that in-state development, it can use it with the purpose of rural development.
Now we understand the problem, Mandi tax was used by the APMC which is with the state government.
Which is our current system, now these new farm bills are coming, they are talking about the new ecosystem,
Talking about a parallel system. Wherever whatever tax was coming from APMC, it was going directly to the Punjab Government.
According to the data of the National Crime Report Bureau (NCRB) In 2018,
there were 134000 suicides in the country of which 7% were done by suicides farmers which is close to 10,000.
This shows that the farmer in the country is not happy.
Along with this, in 2015, Shanta Kumar Committee was formed to bring the reforms to the Food Corporation.
This committee brought out an amazing finding, they said that only 6% of the country’s farmers are those who are taking benefits of MSP And 94% of the farmers are those who are unable to take benefits of MSP.
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Conclusion (Essay On Farm Bill In 2100+ Words)
So, due to the entire discussion of the farm bill, if the attention of the country has come to Farmer Reform and Farmer Welfare,
Then this thing should not be stopped only to Farm Bills, Talk about education also because the farmer does not know about the MSP.
What is the government doing for farmer’s education? With this, these 3 bills that have come, these are new, there are so many old laws that act against the farmer’s interest, such as land acquisition act, etc.
There are many laws that are not beneficial for the farmer.
If you liked this Essay On Farm Bill 2020 You will definitely share this with your friends because there should be necessary to talk about the reform of the farmers in the country.
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