NEW DELHI: Punjab chief minister Amarinder Singh on Monday wrote to Prime Minister Narendra Modi highlighting the need to review three farm sector-related ordinances cleared by the Union Cabinet this month. Singh has said the review should be made on the grounds of interests of farmers and in the ‘spirit’ of cooperative federalism where states and Centre have to work together for collective good of people.
The development is indicative of more push back that could come from state governments, particularly from opposition-ruled states, to review the ordinances which seek to create national market for farm produce to improve their incomes. Speaking about scope of lawmaking, Singh said agriculture is a state subject while trade and commerce is in the concurrent list.
“…it allows the exporters, processors or traders to hold large stocks of farm produce without limits, except in certain grave situations of war, natural calamity, famine, and extra-ordinary price rise. The amendment would allow the private players to buy the produce in harvest season, when prices are generally lower, and release it later when prices firm up,” Singh was quoted as saying in the letter according to a release by the Chief Minister’s Office. He added that in the absence of any regulation, states would also have no information about the availability of stocks of commodities.
Earlier this month, the union government had introduced a set of ordinances to create a national market for farm produce and allow contract farming to protect farmers from price risks with the aim of helping them improve earnings and boost investments in agriculture. Union cabinet had approved the ‘Farming Produce Trade and Commerce (Facilitation and Promotion) Ordinance, 2020’, which it said will pave the way for ‘One India, one agriculture market’.
In the letter, Singh added that the Agriculture Produce Marketing System in Punjab had ‘stood the test of time’ and has helped in ensuring food security as well as livelihoods for farmer and farm workers. He added that the ordinance has led to ‘widespread apprehension’ that the Centre was planning to withdraw from the assured procurement of food grains.
“There is another apprehension that the proposed barrier-free nation-wide markets for farmers would really come to mean a nation-wide market for traders, possibly to the detriment of the already debt-ridden and beleaguered farmers of the state. Coming as it does in the times of the unprecedented Covid-19 crisis, it will further exacerbate the socio-economic tensions among the farmers of the state,” Singh was quoted as saying in the letter according to the official release.
While Singh is one of the senior most chief ministers representing Congress party, other opposition parties, including Communist Party of India (Marxist) or CPM have already opposed the ordinances. CPM has said the ordinances will remove all regulations over the pricing and availability of key agricultural commodities essential for the country’s food security as well as lead to creation of artificial shortage.