'Farmer Friendly' laws being questioned! Why is that? (Series: 2/3)

This piece talks about one of the 3 laws which is at the core of the farmers agitation. 

However, before you read the article, it's my humble request to not share any content you see on web even react on it before you personally verifies the same. In the era of fake news, the core, in this case, the farmers faces the blunt.

CONTRACT FARMING

The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 also awaits the President’s nod after passing in both Houses. It provides a framework for contract farming.

Here’s how it works:

* Farmers can sign sale contracts with processors, aggregators, wholesalers, large retailers and exporters at mutually agreed crop prices

* This serves as a minimum price guarantee before sowing. So, buyer bears risk of planting

* Farmers able to plan ahead and invest in better implements, seeds and other inputs

* Buyer pays market rate if it is higher than the contract rate. Disputes to be resolved within fixed time frame

Why are farmers opposing it?

* Farmers say corporates will have upper hand in fixing prices and resolving disputes in courts

* They will not want to deal with small farmers

What’s the government’s take?

* Farmers have equal say in setting sale price. They can withdraw from the contract at any stage without penalty but corporate buyer will have to pay agreed price and penalty for breaching contract

* They will be paid within 3 days of signing contract

* 10,000 Farmer-Producer Organisations (FPOs) set up across country will enable small farmers to deal with corporates

* Local dispute resolution will be the norm, and recourse to courts the exception

How contract farming works at present?

* Current contract farming arrangements are mostly unwritten and confined to niche, high-value products like chips-grade potatoes, sugarcane, cotton, tea, coffee and floriculture for export

* Some states regulate contract farming under their existing agriculture laws

Refer the link to read about 'Free Market' i.e. "The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020"

Source: Time of India