New Farm Acts Corporatise Agriculture, Usher in Unregulated, Exploitative Regime: RJD MP Moves SC Against 3 Agricultural Legislations

RJD MP Manoj Jha has petitioned the top court contending that The Farmers' (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020, The Farmers' Produce Trade And Commerce (Promotion and Facilitation) Act, 2020 and The Essential commodities (Amendment) Act, 2020, have been passed by the Parliamen in breach of the Parliamentary Rules and convention. "The impugned acts are unconstitutional on the ground that it is discriminatory and manifestly arbitrary and further violates the Basic Structure of the Constitution", it is alleged. These Acts have come into effect from September 27 after President Ram Nath Kovind gave his assent.

"The Impugned Acts encourages corporatization of India Agriculture which is the lifeline of the poor farmers and key to the survival of the nation's agriculture sector. The Impugned Acts primarily intends to sacrifice the interest of the farmers and leave them at the mercy of the Sponsors without any proper dispute resolution mechanism", avers the plea, adding that the Acts provide for "farming agreements" between the farmers (of whom 85% are marginal farmers owning up to 2 acres) and the Corporate entities. It is pointed out that the farmers by way of the impugned legislations are pitted against the Corporates with disproportionate bargaining powers.

"The price determination mechanism under the Impugned Acts is only through the agreements between the corporate entities and farmers and does not stipulate that the price should not be below the minimum selling price (MSP) and doesn't even guarantee the price given by the Agriculture Produce Market Committee (APMC)", the plea submits. Besides, it is advanced that instead of ensuring the MSP, the Act intends to corporatise peasant agriculture and erode the existing legal safeguards that prevent direct invasion of rural agriculture markets by the monopoly corporate forces.

"The Impugned Acts enables the Sponsors to deprive the Market Committees of their market fee on transactions within the specified Market Yards under the State Mandi Laws. This completely destroys the market regulatory environment under the State Market Laws and the revenue generated by the State in the form of mandi fee", it is urged. 

Moreover, the plea filed through Advocate Fauzia Shakil asserts that the farmers currently have the freedom to sell their farm produce to anyone anywhere. The freedom however is not real but is bereft of any safety or guarantees, to protect them against the superior bargaining force of the buyers.

"The dispute resolution mechanism under the act is inadequate. As per the Act the only way to resolve the dispute of payments, quality and specifications under the agreements, are conciliation and settlement by the local Authorities with appeal before the Collector. The entire scheme of dispute settlement is equally tilted likewise in favour of Sponsors", it is submitted.

It is stated that under the State Market Laws there were adequate supportive measures for the protection of the farmers and their produce. However the newly enacted impugned Acts do not have proper dispute resolution mechanism leaving the marginal farmers mostly exposed to the exploits of the Sponsors.

"The Impugned Acts have been passed in blatant breach of the principles of Federal structure of the Indian Constitution as 'agriculture' is a State subject under Entry 14 of List II which does not grant competence to the central government to legislate on the issues relating to 'agriculture'. Only the State Legislature has the legislative competence to pass laws dealing with the subject", it is pressed.

It is further asserted that the impugned Acts are also passed in violation of the Article 14 of the Indian Constitution as they fail to create an intelligible differentia as the basis for classification. The impugned Acts are also in breach of Article 23 as they expose the vulnerable in need of protection to the free market forces and likely exploitation by the corporate entities and farm traders.

"The Impugned legislations corporatize agriculture and ushers in an unregulated and exploitative regime. A farmer would not have the knowledge to negotiate the best terms with a private company. This leads to an unequal bargaining position in negotiating the farm agreement with corporates would lead to corporates monopolizing the agriculture sector", it is finally urged.