The year 2020 had brought misery to entire humanity due to pandemics. People of India suffered from a double whammy when during the pandemic the government brought out so-called labour and agricultural reforms. On 6th June 2020, 6 new laws were cleared by the cabinet and later on hurriedly passed in parliament during the monsoon session. The whole process of passing the bills rattled the world’s second-largest democracy. It was conveyed to the public that out of 6 law’s, 3 are related to the labour ministry, whereas the other three are Agricultural laws. Actually out of three agricultural law’s only two are from the agricultural ministry, whereas one law relates to Consumer Affairs and Food Distribution Ministry. The farmers have been protesting at various levels since the bills were passed and have been sitting at Delhi borders for the last 7 months, more than 600 farmers died during the protest but the government seems in no mood to find a solution to the problem. The major surprising situation is that farmers though not directly affected by this law of Essential Commodity Act (ECA) 2020, but will be affected when he becomes a consumer. Actual consumers who will be affected by this seems to be nowhere, in the farmer’s protest or protested elsewhere.
Let us now understand what is there in ECA law and how it will affect the consumers. As per this law now any individual either alone or company can purchase all the food grains, pulses, vegetables, fruits etc. and can store them in any quantity and for any period. It will give legal protection to allow hoarding, where the government is propagating its stand that it will give farmers free hand to store their produce for as long as he wants to keep. The fact government is ignoring that 85% of our farmers are small or medium, not having the financial capacity to store their food grains for 2 to 4 months. It is said that in India 85% of farmers are in the category of small and medium landholdings. How can we expect him to store his produce at home or in a commercial store by paying charges? Whereas the fact is that he has already taken a loan and the moment crop comes, he needs to sell it in order to clear the loan and save on interest. Then how can we think he is being benefitted from this act. Rather this act will give an opportunity to corporates or big traders to hoard. To date this act has been put on hold by the honourable Supreme Court, still, we can feel the pinch of inflation especially of food items, even when we have record production. The government by introducing these laws has handed over their power to corporates. Actually, corporate-sponsored intellectuals propagate that these laws will help to increase farmers income whereas these laws are framed to have a monopoly of corporates on essential commodities. Monopoly is neither in the interest of producer nor consumer.
The act further says that the price of perishable food items like fruits vegetables can be increased 100% from last year’s average retail price and that of non-perishable food grains like wheat rice etc can go up by 50% of last year average retail price. Let’s take an example of cauliflower or tomatoes which was sold for Rs 2 to 5 per kg in the wholesale market, but was not sold less than Rs 20 in retail to end consumers. So next year the price of cauliflower can be increased to Rs 40 per kg without any hassle. Taking a note of what happened last year with the onion crop, it was anticipated that crop production will be on the lower side reason, was untimely rain. But even with an anticipated shortage when a new crop reached the market, the price of onion just increased from Rs2 to Rs4 to 5 Per Kg for farmers. The crop stored by corporates or big traders can be sold between the price range of 100 to 150 because the retail price in the previous year ranged from 50 to75. The government even if it desire to intervene cannot do so because the above increase in price is legal. Similarly, if wheat flour is been sold at Rs 30 per kg may go up to Rs 45 per kg next year and Rs 67 per kg year later. In a span of 3 years the wheat flour can witness the price rise up to Rs 100 per kg. This is not the story of onion or wheat flour rather every food item will witness the same. During the financial year 2020-21 the prices of pulses and mustard oil were touching the sky and mustard oil witness an increase of Rs 100 per litre (from Rs 100 per litre to Rs 200 per litre) in a span of few months the inflation is not making a hole in the pocket of consumers but eating away the pocket itself. Now, this act will be used as a tool to legally rob people of the movement it got legal clearance. The hoarding has already started last year as the prices of pulses and oilseeds increased in spite of increased production. The reason being few corporates purchased the whole commodity. The mustard crop was purchased at Rs 5500 to Rs 6000 per quintal and suddenly when the crop was over its price increased to 7000 per quintal. This happened with the apple also which is now in the stores of few corporates and they are selling the fruit purchased for Rs 6 to Rs 25 per Kg from Kashmir markets and now selling the same at the price of Rs 200 to Rs 250 per kg in retail markets throughout country. The corporates are buying food items to store with people money through bank loans and in turn selling the stored items to the consumers at exorbitant prices.
The question arises will banks give loans to farmers at such a low rate of interest as given to corporates to buy and store food crops. Today every Government or industrial unit is either under the hammer or its private partnership has increased. In this situation how long will the government be able to survive on countries capital or buy selling profitable units if government department working is not in order than whose responsibility it is! Government should own the responsibility as authority and responsibility move side by side.
Few corporates have almost created a mere monopoly on business in almost every sector. Now they are eyeing agriculture, going deep inside one realizes that they are not targeting agriculture or farmers only but virtually snatching the meals from the common man. But the common man whose strength is about 124 crore in the country seems to be unconcerned because the media has propagated this act too as agriculture act concerned with farmers (to whom urbanites consider as illiterate) but they are one who has understood this act and is making hue and cries to get the act repealed. In other words, 14 crore farmers are agitating for 124 crore people.
Dr Amanpreet Singh Brar
9653790000