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The Three Farm Bills

ThreeFarm Bills
ThreeFarm Bills

What are three farm bills that created a disharmony, here is everything you need to know about farm bills.

On June 5, 2020, amid growing worries of a worsening economy in India and a large pandemic like covid 19, the Government of India tried to approve three ordinances related to Karshi.

To do this, the central government demonstrated a willingness to pursue the path of the ordinance through unilateral reforms between major epidemics such as Covid-19 without the approval of the state government.

By 14 September 2020 these ordinances were brought to Parliament as a legislative bill for discussion and since then all farmers have been agitated and on 27 September 2020, the bills received the President’s approval and were notified in the Gazette.

So here we will talk about the days that the Central Government has notified in the State Papers.

Whether these bills is in the interest of farmers or not?

three farm bills Bills

Bill NO.1

The Farmers Produce Trade & Commerce (Promotion & Facilitation) BILL,2020

In this law, the government has said that the farmer can sell his crop anywhere in All India instead of selling it in the mandi, but the government has its own organization under the NSSO and NSSO said that the crops produced by the farmers in India are Only 6% of the crop is sold in the market and 94% is sold to the outside market or businessman. When India became independent, farmers used to sell their crop to big moneylenders and then took the government from the moneylender. The APMCs was then built by the Government of India.


The farmer can sell his crop by contacting a big company instead of selling it directly to the broker. MSP in price or more. So farmers have an advantage in this because big companies buy crops at a higher price than MSP.

But according to research in India, 86.2% of farmers are small farmers. Small farmers mean people with less than 2 hectares of land.

So the big company, they need more quantity of grain, which the small farmer cannot afford. And also cannot sell in APMC.

Therefore, this bill on paper is correct, but in the coming days, it may come to light that crops of small farmers should not be purchased at Government Price (MSP).

For example, the MSP value of wheat in 2020 was Rs 1925. So those who are big farmers, ie 13.8% will contact the big company and sell the value of MSP in 1925 or more, but small farmers will have to sell their crop to a broker or a merchant because the seller is weak here and the buyer is powerful.


When the farmers who have more yield will start selling their crop directly to the big company, then the market will be closed because when no one comes to sell the crop in the market. the government will not be able to afford the maintenance of APMCs, Therefore, farmers have to sell their crop to a broker or trader in compulsion.

BILL 2:- Contract Farming

The farmers (empowerment & protection) agreement on price assurance and farm services bill.

The big company in it will contract the price of their crop with the farmer. Means that the price of his crop will be fixed even before the farmer starts farming. Which is good for farmers that they will not have to go to mandi and get good price from MSP.

But the big company will give good price to the farmers as long as it has big funding, but when the company funding is low then they will buy the crop from the farmers at the desired rate because there is no government restriction like MSP, although Modi ji said that he will not remove the MSP but when the crop starts selling to the companies, the APMCs will be closed automatically.

For Example: –

In February 2012 When Amazon came to India, Amazon had more funding, so they initially free delivery on books. If the offer for free delivery was made then the funding was reduced. Then the minimum charge was 499/-, if you take the product of minimum 499/- then there will be free delivery. Then after that comes Prime, then if you get Prime Membership then there will be free delivery on products. Then gave a free delivery at a minimum of 499 on Prime Membership.


Link MSP to Contract Farming. That the minimum amount that the government is paying will have to be given to the minimum companies. But the government will not do it because it has become APMCs in some way. Then the government will not benefit from private market.

Bill 3: Hoarding

The essential Commodities (Amendment) Bill,2020

Hoarding means illegally stocking lots of material.

Earlier it was the law till 1950 that traders can stock and sell any crop or material whenever they want. But this law was removed when India became independent. Now this law is being brought back. So there may be loss of farmers in this, so farmers are opposing it.

This was the law of storage till 1955. But this law was removed in 1955 after India became independent. After removing this law, some rules were made that if you store

  • Your license will be canceled
  • You may be jailed
  • Or you have to pay a fine of lakhs of rupees.

So now this farmer movement is doing this because the government has brought this law back.

Now you can store the contents, but you cannot just store it in two cases.

  • WAR


They will buy the stock cheaply in one season and then buy the stock, when the demand for the crop will increase in the market and the price will increase. Will then sell for expensive Rates.


  • The farmers complain that all three laws are in support of the companies. Instead of farmers
  • The contract farming should add MSP. Whichever company will contract, it will pay the minimum MSP price. But farmers say that Farmers do not get a chance to sell crops on MSP. According to (NSSO) Only 6% know the benefits of MSP, the rest of the farmers either sell their crops to a market or a businessman. So farmers demand that MSP be a legal right. Every farmer should have the right to sell crops on MSP.
  • APMCs needs improvement. Not to be removed.
  • The government is saying that we will remove the middleman. So the middleman is not going to go anywhere, because when they can get brokerage by taking government license, they will do it in the private market also.
  • Farmers say that there is no need to call the private sector. There is a need to improve things in the government Farming sector. Because the private sector is forced. If the market forces can do its own arbitrariness, then the government’s protection will be over.

:- So the government should improve the agriculture sector. Do not hand it over to the private sector. Because it is not a small sector. Farming is the primary source of 58% of India’s life.

Then people say that the farmer commits suicide. When the demand of the farmer is not fulfilled, he will not get the price of his crop right. If the farmer who fills the nation’s stomach and his family will not be fed, then it is a simple matter that a helpless farmer will not commit suicide, what will he do?



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