## Report on the Farm Laws Repeal Act, 2021
**1. Executive Summary:**
This report analyzes the Farm Laws Repeal Act, 2021, based solely on the provided government policy text. The Act repeals three key farm laws enacted in 2020: The Farmers Empowerment and Protection Agreement on Price Assurance and Farm Services Act, The Farmers' Produce Trade and Commerce Promotion and Facilitation Act, and The Essential Commodities Amendment Act. Additionally, it omits subsection 1A of section 3 of the Essential Commodities Act, 1955. The Act aims to address concerns raised by a group of farmers regarding the aforementioned laws, prioritizing inclusive growth and development. The repeal involves no direct expenditure from the Consolidated Fund of India.
**2. Introduction:**
This report provides an informative overview of the Farm Laws Repeal Act, 2021, based exclusively on the information contained within the provided government policy text. It aims to elucidate the Act's objectives, key provisions, and potential impact, providing context for stakeholders in the agricultural sector.
**3. Policy Overview:**
This is a repeal act, nullifying previous legislation. The core objective, as stated in the text, is to repeal the following Acts:
* The Farmers Empowerment and Protection Agreement on Price Assurance and Farm Services Act, 2020
* The Farmers' Produce Trade and Commerce Promotion and Facilitation Act, 2020
* The Essential Commodities Amendment Act, 2020
**4. Background and Rationale:**
The text indicates that the repealed farm laws were enacted to enable farmers to sell their produce at higher prices, benefit from technological improvements, and increase their income. These laws aimed to provide freedom to farmers in selling their produce, create an ecosystem for direct engagement between farmers and buyers, establish a framework for electronic trading, and provide a legal framework for farming contracts. Despite these objectives, a group of farmers protested these laws. The government, acknowledging these protests and aiming for inclusive growth, proposed the repeal. The text highlights that the decision was made despite efforts to sensitize farmers about the benefits of the Farm Laws.
**5. Key Provisions / Changes:**
This legislation primarily focuses on repealing existing laws. The key changes are:
* **Repeal of Three Farm Laws:** The core provision is the complete repeal of the three farm laws listed above. This effectively eliminates the provisions introduced by those Acts.
* **Amendment to Essential Commodities Act, 1955:** Specifically, it omits subsection 1A of section 3 of the Essential Commodities Act, 1955. While the text does not explicitly state the content of subsection 1A, its omission suggests a return to the pre-amendment status of that particular section.
The effect of these changes is a reversal of the policies enacted by the repealed laws. This means farmers will no longer be subject to the regulations or benefits outlined in those laws. The removal of subsection 1A from the Essential Commodities Act, 1955, implies a change in the regulatory framework for essential commodities, moving away from whatever changes were introduced by the 2020 amendment.
**6. Target Audience and Stakeholders:**
Based on the provided text, the primary target audience and stakeholders include:
* **Farmers:** Particularly small and marginal farmers who were intended to benefit from the now-repealed laws.
* **Agricultural sector:** Including processors, bulk buyers, organized retailers, and exporters.
* **Agricultural economists and experts:** Who were consulted during the formulation of the original laws.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The text does not explicitly name a responsible agency. However, the reference to Parliament enacting the repeal suggests that the legislative branch is primarily responsible. The Department of Agriculture likely plays a role in implementing the repeal.
* **Timelines/Procedures:** No specific timelines or procedures are detailed in the text beyond the date of introduction in Lok Sabha (November 29, 2021).
* **Specific to the Amendment:** The implementation aspects related specifically to the repeal involve removing the systems and frameworks established under the repealed acts. This may require reversing any regulations or policies enacted under those laws.
**8. Expected Outcomes / Impact of Changes:**
The intended outcome of the repeal, as implied by the text, is to address the concerns of protesting farmers and promote inclusive growth and development. The removal of the laws likely aims to restore the previous agricultural framework, addressing concerns regarding potential negative impacts on farmers' income and market access. The impact of omitting subsection 1A of the Essential Commodities Act, 1955, will depend on the content of that subsection, but the repeal suggests a move away from the policies introduced by the 2020 amendment.
**9. Conclusion:**
The Farm Laws Repeal Act, 2021, represents a significant shift in agricultural policy, reversing the changes introduced by the three farm laws enacted in 2020. The repeal reflects the government's response to farmer protests and its commitment to inclusive growth. The Act's significance lies in its potential to reshape the agricultural landscape and address the concerns of key stakeholders in the farming community.
Key Entities Referenced
Farm Laws Repeal Act, 2021: A bill to repeal three farm laws and amend the Essential Commodities Act, 1955.
Farmers Empowerment and Protection Agreement on Price Assurance and Farm Services Act, 2020: One of the three farm laws being repealed by the Farm Laws Repeal Act, 2021.
Farmers' Produce Trade and Commerce Promotion and Facilitation Act, 2020: One of the three farm laws being repealed by the Farm Laws Repeal Act, 2021.
Essential Commodities Amendment Act, 2020: One of the three farm laws being repealed by the Farm Laws Repeal Act, 2021. It also amends the Essential Commodities Act, 1955.
Essential Commodities Act, 1955: An act that is being amended by the Farm Laws Repeal Act, 2021.
Parliament: The legislative body enacting the Farm Laws Repeal Act, 2021.
India: The Republic of India, the nation where the act is being enacted.
Department of Agriculture: The government department whose budget allocation has increased.
Soil Health Card Scheme: A government scheme aimed at enhancing farm productivity by distributing soil health cards to farmers.
Central Sector Scheme for formation and promotion of ten thousand farmer producer organisations: A scheme aimed at increasing the bargaining power of small and marginal farmers.
Bima Yojana: A risk mitigation scheme for farmers.
Agriculture Infrastructure Fund: A fund to promote investment in farm gate post-harvest infrastructure.
National Agriculture Market: A pan-India virtual trading platform for transparent price discovery.
Oil Palm Mission: Farmers' welfare scheme and programme.
Pulses Mission: Farmers' welfare scheme and programme.
COVID-19: The pandemic during which reform measures were undertaken, including in agriculture.
Supreme Court of India: The court that stayed the operation of the Farm Laws.
Narendra Singh Tomar: The individual presenting the statement of objects and reasons, likely a minister.
Utpal Kumar Singh: Secretary General.
New Delhi: Location of statement by Narendra Singh Tomar
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LOK SABHA
————
The following Bill was introduced in Lok Sabha on 29th November, 2021:—
BILL NO. 143 OF 2021
A Bill to repeal the Farmers (Empowerment and Protection) Agreement on Price Assurance
and Farm Services Act, 2020, the Farmers' Produce Trade and Commerce (Promotion
and Facilitation) Act, 2020, the Essential Commodities (Amendment) Act, 2020 and
to amend the Essential Commodities Act, 1955.
BE it enacted by Parliament in the Seventy-second Year of the Republic of India as
follows:—
1. This Act may be called the Farm Laws Repeal Act, 2021. Short title.
2. The Farmers (Empowerment and Protection) Agreement on Price Assurance and Repeal of Acts
20 of 2020, 21
Farm Services Act, 2020, the Farmers' Produce Trade and Commerce (Promotion and Facilitation)
of 2020 and 22
Act, 2020 and the Essential Commodities (Amendment) Act, 2020 are hereby repealed.
of 2020.
3. In section 3 of the Essential Commodities Act, 1955, sub-section (1A) shall be Amendment
omitted. of Act 10 of
1955.2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
STATEMENT OF OBJECTS AND REASONS
Agriculture marketing plays an important role in providing necessary services to
producers and buyers. Majority of the farmers in India are small and marginal farmers with
less than two hectares of land. The Government has been making several interventions to
support farmers, including small and marginal farmers by providing quality seeds, credit,
insurance, procurement and market support and the like.
2. The Budget allocation for Department of Agriculture has been increased by more
than five times since 2014 and this year one lakh twenty-three thousand crore (1.23 lakh
crore) rupees are being spent on various schemes or programmes. Under the Soil Health
Card Scheme, approximately twenty-two crore cards have been distributed to farmers which
are aimed at enhancing farm productivity. Under another Scheme, one lakh sixty thousand
crore (1.60 lakh crore) rupees have been transferred directly to eleven crore farmers. To
increase the bargaining power of small and marginal farmers, a Central Sector Scheme for
formation and promotion of ten thousand farmer producer organisations with a budget of six
thousand eight hundred sixty-five crore rupees has been launched. Risk mitigation for
farmers has been ensured under the Bima Yojana. Since the launch of the said Yojana in 2016,
claims of over one lakh crore rupees have been settled benefitting approximately eight crore
eighty-three lakh claims of farmers. The Agriculture Infrastructure Fund of one lakh crore
rupees will promote investment in farm gate for post harvest infrastructure like warehouses,
cold storages and community assets and the like. The agricultural marketing infrastructure
has been modernised with the launch of National Agriculture Market, a pan-India virtual
trading platform for transparent price discovery. The flow of credit for crop loans has been
doubled since 2014 to sixteen lakh crore rupees. Allocation to Micro Irrigation has also been
doubled. Farmers' welfare schemes and programmes such as natural farming, organic farming,
Oil Palm Mission, Pulses Mission and Agriculture Mechanisation have been expanded. For
the first time Minimum Support Price has been fixed at least 1.5 times of the cost of production,
and procurement of oilseeds, pulses and cotton have also started, in addition to paddy and
wheat.
3. To enable the farmers to sell their produce at higher prices and benefit from
technological improvements, farmers have been provided access to agriculture markets which
will help them increase their income. With this objective three Farm Laws, namely, (i) the
Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services
Act, 2020 (20 of 2020); (ii) the Farmers' Produce Trade and Commerce (Promotion and
Facilitation) Act, 2020 (21 of 2020); and (iii) the Essential Commodities (Amendment) Act,
2020 (22 of 2020), were enacted, as a part of the Government's endeavour to improve the
condition of farmers including small and marginal farmers. These enactments—
(a) provided freedom to the farmers to sell their produce to any buyer at any
place of their choice to realise remunerative prices;
(b) created an ecosystem wherein processor, bulk buyers, organised retailers
and exporters and the like can directly engage with the farmers;
(c) created a facilitative framework for electronic trading to improve transparency
and price discovery; and
(d) provided a legal framework for farming contracts to protect the interest of the
farmers, economically empower them and assure the price for their produce in advance.
For years, this demand was constantly made by farmers, agricultural experts, agricultural
economists and farmer organisations across the country. During the COVID-19 pandemic,
reform measures have been undertaken in many sectors of the economy, including agriculture
and allied sectors.
4. These enactments were made for the overall socio-economic development of the
farmers and rural sector after extensive consultations with various stakeholders following
the felt need and demand of the farmers' organisations, suggestions and recommendationsSEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 3
of the experts, professionals, agricultural economists, expert committees over the years.
Various Governments during the last three decades have tried to initiate such reforms, but
not in a comprehensive way. Further, there has been technological advancement in recent
times.
5. Even though only a group of farmers are protesting against these laws, the
Government has tried hard to sensitise the farmers on the importance of the Farm Laws and
explain the merits through several meetings and other forums. Without taking away the
existing mechanisms available to farmers, new avenues were provided for trade of their
produce. Besides, farmers were free to select the avenues of their choice where they can get
more prices for their produce without any compulsion. However, the operation of the aforesaid
Farm laws has been stayed by the Hon'ble Supreme Court of India. During the COVID period,
the farmers have worked hard to increase production and fulfil the needs of the nation. As
we celebrate the 75th Year of Independence— "Azadi Ka Amrit Mahotsav", the need of the
hour is to take everyone together on the path of inclusive growth and development.
6. In view of the above, the aforesaid Farm Laws are proposed to be repealed. It is
also proposed to omit sub-section (1A) of section 3 of the Essential Commodities
Act, 1955 (10 of 1955) which was inserted vide the Essential Commodities (Amendment)
Act, 2020 (22 of 2020).
NARENDRA SINGH TOMAR.
NEW DELHI;
The 24th November, 2021.4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— SEC. 2]
FINANCIAL MEMORANDUM
The Farm Laws Repeal Bill, 2021 does not involve any expenditure either recurring or
non-recurring from and out of the Consolidated Fund of India.
————
UTPAL KUMAR SINGH
Secretary General.
UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.
MGIPMRND—1198GI—30-11-2021.