In an unprecedented move, the state of Punjab has officially rejected three farm acts proposed by the Central government, making it the first state in the country to do so. The state assembly introduced its own set of three bills negating the Union laws. In addition, Punjab also turned down the proposed Electricity Amendment Bill and demanded their immediate annulment.
Overview of Punjab State Bills
The first bill introduced by the Punjab assembly is The Farmers Produce Trade and Commerce (Promotion and Facilitation) (Special Provisions and Punjab Amendment) Bill, 2020. It proposes that sales or purchases of wheat or paddy in Punjab should not go below the Minimum Support Price (MSP). Moreover, it incorporates punishments for those who harass farmers or offer them less than the fair price for their produce.
The second Bill, The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services (Special Provisions and Punjab Amendment Bill, 2020, mandates a minimum of three years imprisonment and fines for those who buy or sell wheat or paddy below the MSP under a farming agreement.
The third bill, The Essential Commodities (Special Provisions and Punjab Amendment) Bill, 2020, seeks to prevent hoarding and black marketing of agricultural produce. Moreover, the amendment assures that the implementation status quo of the Central Act, namely, ‘The Essential Commodities (Amendment) Act, 2020’ is maintained.
Unlike the Central laws which abolished market fees or licenses for private players outside the APMC’s (Agricultural Produce Market Committees), the Punjab bills reintroduce these charges. The fees collected would be used for the welfare of small and marginal farmers.
Additional Changes to Protect Farmer’s Interests
The Punjab Assembly also introduced the Code of Civil Procedure (Punjab Amendment) Bill, 2020. This bill aims to exempt agricultural land not exceeding 2.5 acres from Section 60 of The Code of Civil Procedure, 1908. This protects various properties – moveable and immovable – from attachment or execution of judgment. This includes farmer’s properties like cattle, implements, cowsheds, and more.
Rationale Behind the Bills
The main goal behind the central farm acts was to eliminate any government interference in agricultural trade by creating trading areas devoid of middlemen and external government taxes. However, farmers saw this as a bias towards corporate interests, neglecting farmers’ needs.
The absence of regulations in non-APMC mandis was viewed as a precursor to the revocation of MSP-based procurement. This resulted in increased apprehension among farmers. To rectify these concerns, the Punjab government modified the application of Central laws within the state.
Concerns Regarding Private Players & Market Conditions
However, this move has led to concerns that private players might be discouraged from buying at less than MSP rates. The Punjab government states that about 86.2% of farmers in the state are small and marginal and own less than two acres of land. Consequently, they have limited access to multiple markets and lack the negotiation power needed to operate in a private market.
Constitutional Matters
The three farm acts were initially passed by the Central government under Entry 33 of the Concurrent List. However, if foodstuffs equate to agriculture, this would render all the powers of states in respect of agriculture redundant as outlined in the Constitution. States cannot override legislations passed by the Centre except under Article 254(2). This allows a State government to pass a law contradicting a Central law, provided it gets the President’s assent.
Essentially, the Punjab government’s new farm bills would need the assent of the President since they aim to amend laws passed by the central government. If this does not happen, they will merely serve as a symbolic political statement against the Centre’s farm laws. The Governor also plays a crucial role in this process.