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This story is from October 22, 2020

‘Punjab bills could force out pvt players, hit diversified farmers’

Punjab farm bills, seeking to remove the state from the ambit of the newly enacted central laws, might have pleased protesting farmers in the state, but the Centre is unlikely to change its stand on the existing minimum support price (MSP) mechanism. Officials in the agriculture ministry feel that the state has simply played to the gallery by giving legal guarantee to the MSP.
‘Punjab bills could force out pvt players, hit diversified farmers’
File photo
NEW DELHI: Punjab farm bills, seeking to remove the state from the ambit of the newly enacted central laws, might have pleased protesting farmers in the state, but the Centre is unlikely to change its stand on the existing minimum support price (MSP) mechanism and will continue to focus on ongoing procurement during the current Kharif Marketing Season (KMS).
Officials in the agriculture ministry feel that the state has simply played to the gallery by giving legal guarantee to the MSP, but it would complicate the issue when private traders start leaving the state resulting in loss to the non-paddy and non-wheat farmers as the bills only covered these two crops.

Congress leaders have argued that the bills will protect farmers from predatory private players and ensure they do not under sell their produce. “Of course, these two are major crops. But, farmers there have also started switching over to other crops keeping in view better returns over production cost. Absence of private traders means no back up for farmers,” said an official.

He was referring to provisions in the state bill where the private traders will have to pay a fee for trade outside the APMC mandis, arguing that Punjab traders won’t do business in the state if they find it beneficial to purchase farm produce from UP and MP. Agriculture experts too have tried to decode it from the market angle.
“The course taken by the Punjab government is just to gain political mileage. It is very much clear that implementation of certain provisions of the state’s proposed legislation will be difficult in agri-commodity market since financial resources are provided by the Centre for purchase at MSP,” said Sudhir Panwar, farm expert and former member of the UP planning commission.
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