Farm Laws Rollback: Neither Victory Nor Defeat

YOUTUBE

The entire farm law controversy has spread bitterness all around. In my view, it was possible for avoiding this entire controversy, especially the showdown with farmers. Before promulgating the three ordinances, the government could have gained the farmers’ trust through discussions on the various aspects of the intended farm laws. Any suspicions regarding the role of big corporate houses in usurping farmlands or monopolising farming could have been removed by offering convincing guarantees. Unfortunately, these genuine fears were not taken seriously and the farm laws were sought to be rammed down the farming community’s throats through brute majority in the parliament. Not every legislation – however legally correct – may be acceptable to the concerned stakeholders. Democracy is not about parliamentary law-making but participative decision-making. Our elected representatives are supposed to represent our aspirations in the temple of democracy, and not behave as our mai baap.

The Corporatisation of Agriculture

PM Modi had hoped to take corporatisation of agriculture to the next level with the help of the three laws that succeeded the following three ordinances:

1.  “The Farmers Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020” apparently seeks to provide the farmer with more options for selling his stuff and thus strengthen his bargaining power.

2.  “The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020” was supposed to aim at preventing glut in the market and enabling a more even spread of the supply throughout the year.

3.  “The Essential Commodities (Amendment) Ordinance, 2020” aimed at providing for a proforma contract between the farmer and the buyer of his produce to put all the terms and conditions of the deal in black and white. This would apparently do away with the farmer’s dependence on the commission agent.

But the farmers suspected that, despite the positive spin, the government intended to give big corporate buyers a free hand to dictate terms to the farmers in the absence of a legislated minimum support price regime. Their demand for MSP was rejected by the government. Even now the government is reluctant to accede to this demand, thus forcing the farmers to continue with their peaceful protests.

So, how will it affect the overall agricultural scenario in the country? Corporatisation should not be the primary motive of agricultural reforms. There is a need for fashioning procurement and distribution models in different states according to the ground realities in each state. Provision for minimum support prices for different farm products should be made by law in each state respectively to ensure better management of demand and supply. The private sector needs to play a facilitating role and not that of a master. The Centre should have minimal say in such matters.

Economic Factors

The announcement to roll back the three farm laws has placed the Samyukta Kisan Morcha – the umbrella organisation of various farmers unions agitating against the three farm laws – in a strong position to bargain for legislating of minimum support price for major, if not all, farm products. There is certainly a need for an improved regimen of farm production and distribution, market regulation procedures need to be re-calibrated. It may not be possible to do away with farm subsidies altogether. Whether these are inputs like power supply, irrigation, fertilisers and insecticides or issues related to pricing, storage and distribution of farm produce, the farmers will demand a better deal. A more responsive regime will have to be far superior to what the FCI had and Agriculture Mandi Boards have been offering.

Having said this, let us be very clear that the rural economy will remain the bedrock of our national economic development. There is a need to focus on improving the lot of village dwellers – be they farmers, artisans or farm workers etc.

Political Factors

The three ordinances were promulgated when the country was caught in the COVID 19 crisis. It was perhaps hoped that not much attention would be paid to the ordinances. The government spin doctors and the obliging media were already presenting the fait accompli as an unadulterated blessing for the farmers. Moreover, given the seemingly unbridgeable divisions among various farmers unions in the country, the government had hoped for a tepid protest at best. Initially, this appeared to be the case. But soon major and minor farmers union leaders from Western UP, Punjab and Haryana closed ranks and posed a formidable challenge to the government. There were some minor hiccups and some serious setbacks like the Republic Day Flag fiasco, or the murder of a Dalit Sikh by Nihangs. But thanks to the farmers’ leadership epitomised by Rakesh Tikait, the protesters remained steadfast in their resolve.

With elections in Punjab and UP approaching the BJP started worrying about the consequences of this stalemate. Worse, the Sikh peasantry – that had contributed to the defeat of the Khalistan movement – appeared to be getting alienated from the mainstream, thanks to some hugely stupid remarks by the BJP propaganda machine. Calling the protesters Khalistanis, agents of China and Pakistan etc irritated the non-Sikh protesters in equal measure. They pointed out that the three regions were major contributors of manpower to the Indian Armed Forces, and they would not tolerate any slur on their patriotism.

It was time for some quick decision making before the nascent controversy snowballs into a major national issue. PM Modi announced the rollback of the three laws. This will not in any manner diminish or refurbish the PM’s image as a leader, but it certainly takes major pressure off him during election eve campaigning in UP. But in Punjab, at best, the BJP can hope to have informal tie-ups with Shiromani Akali Dal and Captain Amarinder Singh to stave off challenges from AAP and Congress. After The Sidhu episode and Amarinder’s exit, the Congress party will find it tough to retain its position in Punjab, and AAP may be the unwitting beneficiary.

It goes without saying that if the farmers continue with their protests the BJP’s prospects in UP will dip spectacularly, given Yogi Adityanath’s rising unpopularity in the state. One may well see the Samajwadi Party back in the saddle.

However, in the national political context – two factors have emerged. The farm lobby is going to become stronger and will seek a greater role in agriculture-related decision making. There is every chance of an increased assertion in the formation of governments in the cow belt at least; however, the snowballing effect cannot be ruled out in other states as well.

Governments in the states, as well as the centre, need to be more careful while legislating any law. Modi’s rollback should be taken as a lesson. No legislation will be successful without support from the related stakeholders. Today it is farmers, tomorrow it may be factory workers. Muscular governance just does not work in the 21^st century. Participative democracy is the name of the game.