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Farmers form the economic backbone of India and generate a major contribution toward securing food, development of villages, and the overall steadiness of the economy.Farmers feed over one billion people by producing food grains, vegetables, and fruits. Beyond cultivation, the role of farmers is significant in maintaining traditional farming and biodiversity. Despite their importance, farmers generally face problems like debt, poor infrastructure, and lack of predictability in weather conditions. The contribution from the farmers must be recognized to ensure national prosperity and sustained growth in India.
This blog tries to cover in depth all the laws governing the farmer in India and aims at bringing forth their significance, reforms, and challenges and encourages a debate in building an inclusive, sustainable, and farmer-friendly legal framework for agriculture in India that adapts to its needs.
Under colonial rule, British policies shaped agrarian laws to maximize revenue rather than support farmers. The Permanent Settlement Act of 1793 formalized the Zamindari system, where landlords collected taxes from farmers, often under exploitative terms. Similarly, the Ryotwari System directly taxed farmers based on land revenue assessments, leaving them vulnerable to droughts and market volatility. The Watan Act of 1827 institutionalized hereditary village servants, many of whom controlled agrarian resources unjustifiably. Although laws like the Tenancy Protection Acts aimed to protect the tenant farmer, these initiatives were restricted in impact. These oppressive systems impoverished the farmer and prepared the ground for reform after independence.
Freedom for India brought an overhaul in agricultural policies toward making them equitable and farmer-friendly.The Zamindari Abolition Acts in all the states abolished the exploitative landlord system, giving rights to tillers to own land. The Tenancy Acts aimed to control rents, give tenure security, and safeguard tenant farmers against eviction. The Land Ceiling Acts put ceilings on holding to distribute surplus land to the landless. It had uneven implementation with problems of bureaucratic delays and landowner evasions. Despite their limitations, these reforms did significantly alter the land ownership patterns and improve the socio-economic conditions of farmers.
The APMC Acts, enacted by various states to regulate trade in notified markets called mandis in agricultural produce. The idea behind creating them was that of preventing the exploitation of farmers with fair prices and middleman elimination. Mandis were assigned the exclusive right to compel farmers to sell their produce solely in designated mandis with state-run market boards for governance.
The Maharashtra Agricultural Produce Marketing (Development and Regulation) Act is from 1963 and prescribes the establishment as well as regulation of agricultural produce market committees in the state of Maharashtra. During 2017, under this Act, amendments empowered the farmers to sell produce anywhere outside the APMC Mandis, thereby offering numerous chances for direct trade minus intermediaries. It promised the betterment of earnings by farmers through better transparent pricing.
It regulates production, supply, and distribution of essential commodities such as food grains, pulses and edible oils so that at least these are available throughout at reasonable prices. The Act gives the government authority to declare certain items “essential” and impose restrictions on such items, including limits on stock, price, or movement controls, to provide fair distribution and affordability to consumers.
The Seeds Act, 1966 regulates production, certification, and the distribution of seeds to all farmers in India for sale, with an aim towards agricultural productivity. The national Act is the same with The Maharashtra Seeds Act, 1988, that deals primarily with seed certification, control of seed dealers, and penalties for the sale of inferior quality seeds. The Maharashtra Seeds (Amendment) Act, 2023 introduced stricter quality control measures, mandatory digital registration for dealers, promotion of indigenous seed varieties, and expanded seed testing facilities. It also increased penalties for non-compliance, aiming to improve seed quality and transparency, benefiting both farmers and the agricultural sector.
It set up APEDA for the promotion and regulation of agricultural and processed food products from India. It has as its key focus setting standards for quality, certification, financial and technical assistance to exporters, and market research.
It established NAFED to promote cooperative marketing of agricultural products and ensure fair prices for farmers. NAFED helps in procurement, storage, and marketing of agricultural produce and provides a platform for farmers to sell their goods.
The three controversial farmers’ laws introduced in 2020 aimed at reforming the agricultural sector but met with strong opposition. It includes as follows:
It gave the right to farmers to sell their produce outside APMC mandis so that they could reach a much larger market. The main intention was to establish a national market, remove the middlemen, and bring direct transactions with private buyers. Competition would increase, and farmers’ pricing would improve. But critics said that this will weaken the MSP system and it will be exploited by the corporate houses.
The act was enacted on contract farming wherein the farmers had an option to enter contracts with the companies for sales of their produce at certain pre-agreed prices and ensure price assurance and decreased risks. The law seemed to benefit big corporations but disadvantage small farmers, forcing them into unfair contracts owing to limited bargaining power.
It removed stock limits upon all these commodities except, as usual, in exigent circumstances like war, or famine. The amendment is going to help farmers in achieving better price realization while helping the sector of agriculture be competitive and develop infrastructure. Its objective was to promote private investment in agriculture and build a more vibrant market. The law empowered traders to stock goods without any inhibition unless there is a national emergency. The fear is that it will lead to hoarding and price manipulation, reducing availability of essential goods for the consumer.
The objectives and benefits of these reforms included the following:
1. Improved Market Access for Farmers: The acts sought to end the monopoly of APMC and gave farmers the right to sell their produce directly to the buyer outside the regulated market of APMC.Farmers could reach the buyers in the entire nation and conduct trade beyond their mandis, thus promoting an integrated national market.
2. Promotion of Private Investment: With the aim to attract private investment into an agricultural supply chain, this reform would reduce the level of restrictions on trade and storage on warehousing, logistics, and cold storage.This was expected to reduce post-harvest losses and improve infrastructure for farmers.
3. Ensured Price Assurance through Contract Farming:It fostered contract farming. Under contract farming, farmers can tie up with private companies where the price for their produce is pre-determined.This is aimed at minimizing risks in farming activities, especially in the wake of price fluctuations. A stable income would also be achieved.
4. Reduction of Middlemen: In an attempt to minimize intermediaries, it allowed farmers to negotiate prices directly with the buyers; thus, it ensured a larger share of the final price to farmers.
5. Greater Trade Freedom: Farmers were granted the liberty to sell freely without the geographical constraint, electronic platforms for trading also encouraged enhancing transparency and competition in the agricultural markets.
6. Modernization of the Agricultural Sector: Deregulation of some commodities and promotion of private sector participation in the agricultural sector was sought to be done through the laws, so that agricultural practices become more market-driven and efficient.
Farmers felt that this would leave them vulnerable to exploitation by large corporations, which was one of the reasons why the MSP system was scrapped and the laws were repealed.
The farm laws of 2020 faced severe opposition as they raised legal and constitutional issues. Agriculture is essentially a State subject under the Indian Constitution, and hence the states have the power to enact laws regarding it. However, the central government enacted these laws by invoking its powers under the Concurrent List, which gives both the Centre and the states the power to enact laws on matters of trade. It had its share of tensions with this, as many were of the opinion that laws infringed on state power by bypassing APMCs and fostering private markets. A key issue was the dispute resolution system. The laws replaced courts with local government officials to resolve disputes between farmers and buyers, which critics argue denies farmers fair access to justice. Moreover, the haste with which the laws were passed in Parliament without adequate discussion has only added to the controversy. These legal concerns coupled with widespread farmer protests led to the laws being repealed in 2021.
The farmers’ protests against the 2020 farm laws became the turning point in Indian politics and deeply reflected concerns over agricultural reform.
Overview: A protest started in late 2020 when farmers majorly from Punjab, Haryana, and Uttar Pradesh marched to Delhi to obtain the revocation of three controversial farm laws. This led thousands of farmers who camped at the border of Delhi, thus taking months of standoffs by the government.
Key Reasons for Resistance
1. Dismantling of MSP (Minimum Support Price): Farmers felt that the new law would somehow break the MSP system which provides them with a minimum support price for specific crops. They were worried that private players would no longer give them a fair price and would, instead, take advantage of them.
2. Privatization of Agriculture: The concern was that these laws would open up agriculture to unregulated corporate control, reducing government support and increasing dependence on large corporations.
3. No Safeguards: The laws did not provide enough safeguards for farmers from exploitation by private buyers and companies.
Role of Farmers’ Unions and Political Dynamics: Farmers’ unions spearheaded the movement, putting it together, and it united farmers of all sections. Political parties, specially opposition parties, supported protests, using the protests for the purpose of opposing government. The movement was high on media mileage and publicity and support by the civil society.
The Farm Laws Repeal Act, 2021 repealed these laws as it had widespread protests by the farmers and concerns regarding its impact on the Minimum Support Price (MSP) system and the empowerment of large corporations over small farmers.
The withdrawal of the 2020 farm laws has brought out the need to balance reforms with the interests of farmers and ensure a consultative approach. Meaningful and sustainable agricultural transformation can be achieved through the following steps:
– Enforce a legal provision to establish MSP that ensures safety valves for farmers.
– Make MSP available on a diversified range of crops and different regions so that equalization benefits can be given out.
-Invest in upgrading APMCs with modern infrastructure and digital tools for better price discovery and efficient trade.
– Foster interlinkages between mandis and private markets into a hybrid model that favors all parties involved.
– Engage state governments in planning and implementing agricultural policies by giving due importance to the federal structure.
– Implement reforms based on regional issues facing agriculture in the specific regions.
– In contract farming agreements, ensure legal protections to prevent exploitation. This should be made stronger.
– Support the development of farmer cooperatives to improve bargaining power against corporate houses.
– Provide training on modern techniques of farming, financial literacy, and access to markets
– Provide credit and insurance support to the farmers.
-Establish continuous channels for consultation with farmers’ organizations to address their concerns and build trust.
These kinds of reforms can make the policy more inclusive for its success while safeguarding agriculture along with growth.
Legal reforms with an all-inclusive dimension for farmers are important measures in dealing with the above issues. Policymaking must involve collaboration between politicians, farmers, and professionals in making laws that guard the interests of farmers on the one hand and push sustainable and inclusive growth in agriculture, on the other. The reforms should empower farmers by better access to resources, technology, and financial support to enable them to compete better in the market.
So reforms must strengthen the agricultural sector, enhance livelihoods, and improve India’s overall economic growth.
Adv. Abdul Mulla (Mob. No. 937 007 2022) is a seasoned legal professional with over 18 years of experience in advocacy, specializing in diverse areas of law, including Real Estate and Property Law, Matrimonial and Divorce Matters, Litigation and Dispute Resolution, and Will and Succession Planning. read more….
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