Recent news reports have highlighted the interest of many states in using the provisions of Article 254(2) of the Constitution, with the aim to counteract the enforcement of the three Farm Acts passed by the Central government. The Farm Acts fall under Entry 33 of the Concurrent List which pertains to trade and commerce, production, supply, distribution of domestic and imported products of an industry, foodstuffs, such as oilseeds and oils, cattle fodder, raw cotton and jute.
The Potential of Article 254(2)
Article 254(2) gives a state government the power to pass a law that may contradict a Central law on any subject included in the Concurrent List, but it requires the President’s assent. For instance, in 2014, the Rajasthan government used Article 254(2) to adjust central labour laws like the Factories Act, the Industrial Disputes act, and the Contract Labour Act. These changes received the President’s assent. However, Parliament can enact a law at any time relating to the same matter, even if it alters or repeals the law made by the State Legislature.
A Closer Look at the Recent Farm Acts
The three recently passed Farm Acts are: Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020; Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 and Essential Commodities (Amendment) Act, 2020. In essence, these Acts aim to reduce government interference in agricultural trade and remove restrictions on private stock holding of agricultural produce. They propose to create free-trading areas outside of the structure of Agricultural Produce Market Committees (APMCs) which are presently evident, without middlemen or government taxes.
Distribution of Legislative Subjects Article 246
Article 246 outlines a threefold distribution of legislative power between the Union and the states which is detailed in three lists of the Seventh Schedule of the Constitution: Union List, State List and Concurrent List.
Understanding the Union List
The Union List, where Parliament has exclusive powers to make laws, includes national subjects that require uniform legislation. There are currently 98 such subjects including defence, banking, foreign affairs, currency and more.
The State List Explained
The State List, on which state legislatures have exclusive rights to pass laws (except during emergencies), includes matters of regional and local concerns which permit diversity of interest. It covers 59 subjects such as public order, police, public health and sanitation, agriculture, prisons, local government, fisheries, markets, theaters, gambling and so on.
Delving into the Concurrent List
The Concurrent List allows both Parliament and state legislatures to pass laws on subjects where uniform legislation is desirable but not essential. State legislation operates unless it conflicts with Central legislation. The current list includes 52 subjects after five were transferred from the State List by the 42nd Amendment Act of 1976.
Additional Legislative Features
Other features of the legislative framework include Parliament’s power to make laws about residuary subjects, which are those not itemised on any of the three lists. Parliament can also legislate for parts of the territory of India not included in a state, even on matters enumerated in the State List. These provisions apply to Union Territories or Acquired Territories.
