THE INDIAN POLITY AND GOVERNANCE

1. THE FREEDOM OF RELIGION AND ATTIRE

THE CONTEXT: The controversy surrounding the wearing of ‘hijab’ in a college in Karnataka’s Udupi district has spread to more colleges in the state, causing concerns within the Education department as well as parents and students.

THE EXPLANATION:

The amid Karnataka school’s denial of entry to six girls in hijab throws the spotlight on freedom of religion. The issue throws up legal questions on reading the freedom of religion and whether the right to wear a hijab is constitutionally protected.

How is religious freedom protected under the Constitution?

• Article 25(1) of the Constitution guarantees the “freedom of conscience and the right freely to profess, practice and propagate religion”. It is a right that guarantees a negative liberty — which means that the state shall ensure that there is no interference or obstacle to exercise this freedom.
• However, like all fundamental rights, the state can restrict the right for grounds of public order, decency, morality, health and other state interests.
• Over the years, the Supreme Court has evolved a practical test of sorts to determine what religious practices can be constitutionally protected and what can be ignored.
• In 1954, the Supreme Court held in the Shirur Mutt case that the term ‘religion’ will cover all rituals and practices ‘integral’ to a religion. The test to determine what is integral is termed the ‘essential religious practices’ test.

What is Essential Practice of Religion?

• It was held that a practice is considered essential to a religion if it is essential to the community following the religion. Furthermore, Article 25(1) and 26(b) offers protection to religious practices. Affairs which are purely secular may be regulated by statute without infringing the aforesaid articles.
• In order that the practices in question should be treated as a part of religion they must be regarded by the said religion as its essential and integral part; otherwise even purely secular practices which are not an essential or an integral part of religion are apt to be clothed with a religious form and may make a claim for being treated as religious practices within the meaning of Article 26.

2. THE STATUS OF CRIMINAL PROCEEDINGS AGAINST LEGISLATORS

THE CONTEXT: According to the Supreme Court, a total of 4,984 criminal cases against former and sitting Members of Parliament (MPs) and Members of Legislative Assembly (MLAs) are awaiting trial before various sessions and magistrate courts across the country.

THE EXPLANATION:

This marks an increase of 862 such cases in the last three years – up from 4,122 in December 2018 to 4,984 in December 2021.

According to the report, “Even after disposal of 2,775 cases after 04.12.2018, the cases against MPs/MLAs have increased from 4,122 to 4,984. This shows that more and more persons with criminal antecedents are occupying the seats in the Parliament and the State Legislative Assemblies,” adding that “it is of utmost necessity that urgent and stringent steps are taken for expeditious disposal of pending criminal cases”.

Reasons for delayed trial:

• Stays granted by various high courts,
• Insufficient special courts to exclusively try cases against MPs/MLAs,
• Shortage of prosecutors and latches in prosecution,
• Delayed investigation.

CRIMINALIZATION OF POLITICS

The criminalization of politics means the participation of criminals in politics. Means that persons with criminal background contest in the election and get selected as a member of parliament or state legislature. It is said that the politics had reached a stage where the lawmakers became the lawbreakers. In a democratic country like India, the increasing nexus between criminals and politics threatens the survival of true democracy.

The increasing percentage of members of parliament who have a criminal background:

• 2004- 24%
• 2009-30%
• 2014-34%
• 2019-43%

The law commission in its 179th report recommended an amendment to the Representation of people act 1951. It suggested the people with criminal backgrounds should be disqualified for five years or until acquittal. It also recommended that the person who wants to contest the election must furnish details regarding any pending case, with the copy of the FIR/complaint, and also furnish details of all assets. But no action was taken on the recommendation by the government due to a lack of consensus amongst the political parties.

Suggested measures:

• There should be an amendment in the RP act to debar those persons from contesting elections against whom any serious Nature of crimes is pending.
• A kind of awareness program should be started for voters to make them aware of their right to know the criminal background of the person to whom they are going to cast their votes.
• The election commission should be given more rights to prevent the criminalization of politics. A penalty should be inflicted on those political parties who give tickets to those persons who have a criminal background.

THE ENVIRONMENT AND ECOLOGY

3. ASSAM’S FIRST LEOPARD CENSUS

THE CONTEXT: A forest division in Assam has initiated the State’s first leopard census to map the habitat and routes of the spotted cat and establish standards to be followed for urban planning.

THE EXPLANATION:

• According to the forest officials, mapping the leopard’s territories was necessary in view of the increasing man-animal conflicts due to rapid infrastructure development. The division covers urban, semi-urban and rural areas on the northern bank of the Brahmaputra river facing Guwahati, once a leopard domain.
• “Leopards have been the most neglected of the greater cats in Assam. The census will help understand their habitat and occupancy area leading to better management in an area which is a mosaic of suburban, rural and forest areas.
• Leopards prefer the fringe areas of jungles and often raid human settlements for food. The objective of this exercise was to map their population, habitat and movement routes for better planning of human settlements.
• In 2014, a national census of leopards around tiger habitats was carried out in India except the northeast. 7,910 individuals were estimated in surveyed areas and a national total of 12,000-14,000 speculated

About Leopard:

• Scientific Name- Panthera pardus.
• The Indian leopard is a leopard subspecies widely distributed on the Indian subcontinent.
• Nine subspecies of the leopard have been recognized, and they are distributed across Africa and Asia.

Habitat & Protection: In India, the leopard is found in all forest types, from tropical rain forests to temperate deciduous and alpine coniferous forests. It is also found in dry scrubs and grasslands, the only exception being desert and the mangroves of Sundarbans.

Threats: Hunting & Poaching, Human-Leopard Conflict.

Protection Status:

• Listed in Schedule I of the Indian Wildlife (Protection) Act, 1972.
• Included in Appendix I of CITES.
• Listed as vulnerable on the IUCN Red List.

4. ASSAM VILLAGERS OPPOSE SANCTUARY TAG FOR GOLDEN LANGUR HABITAT

THE CONTEXT: Villagers staying adjacent to Kakoijana reserve forest in Assam’s Bongaigaon district have opposed the state government’s decision to earmark the area as a wildlife sanctuary as they believe it will take away their rights.

THE EXPLANATION:

• The forest is home to the golden langur (Trachypithecus geei), characterised by its striking golden orange pelage and found only in Assam and Bhutan,which is listed in the “world’s 25 most-endangered primates”.
• The Assam forest department had recently issued a preliminary notification for 19.85 sq km Kakoijana Bamuni Hill Wildlife Sanctuary under Aie Valley Division.
• A total of 34 villages with a population of around 2,000 households stay adjacent to the reserve forest. The people are mostly from Koch Rajbongshi, Boro, Garo, Rabha and Gorkha communities.
• According to the villagers the imposition of rigid laws under Wildlife Protection Act, 1972 by upgrading the Kakoijana reserve forest as a wildlife sanctuary would tinker with the customary and traditional practices, and consequently result in them losing the community ownership over the forest.
• The villagers pointed out that the conservation efforts of the locals had helped the authorities concerned to restore the forest canopy from less than 5% to more than 70%, and the golden langur population from less than 100 to more than 600 over almost three decades.

ABOUT GOLDEN LANGUR

 

• The golden langur (Trachypithecus geei), characterised by its striking golden orange pelage and found only in Assam and Bhutan, is found in the forest reserve area.
• Golden langur is an endangered primate, endemic to the semi-evergreen and mixed-deciduous forests along India-Bhutan border.
• It was found in 1953 by naturalist E.P. Gee. Kakoijana is one of the prime habitats of the golden langur. It has already been listed as an endangered species in the IUCN Red List and is in the Schedule-I species of the Wildlife Protection Act (1972) and it was Listed in Appendix I of CITES.

THE PRELIMS PRACTICE QUESTIONS

QUESTION OF THE DAY 5^th FEBRUARY 2022

Q. Consider the following statements about Golden langur:

1. It is endemic to India.
2. It is found only in state of Assam in India.
3. It is an endangered species.

Which of the above given statements is/are correct?

a) 1 and 2 only

b) 2 and 3 only

c) 3 only

d) 1, 2 and 3

ANSWER FOR 4^th FEB 2022

Answer: c)

Explanation:

Statement 1 is incorrect: The State of Forest Report was published by every two years.

Statement 2 is incorrect: According to the report, Northeastern states shows decreased in the forest cover.

THE BUDGET PARLIAMENTARY PROCEEDINGS 2022

1. DEFINITION UNDER THE STATE OF FOREST REPORT

THE CONTEXT: In January 2022, the Environment & Forest Ministry released India State Forest Report 2021 (ISFR-2021), the forest cover figures are divided as ‘Inside Recorded Forest Area’ and ‘Outside Recorded Forest Area.’

THE EXPLANATION:

As per decision 19/Conference of Parties (CP) 9-Kyoto Protocol, the forest can be defined by any country depending upon the capacities and capabilities of the country as follows:-

Forest- Forest is defined structurally on the basis of

• Crown cover percentage: Tree crown cover- 10 to 30% (India 10%)
• Minimum area of stand: area between 0.05 and 1 hectare (India 1.0 hectare) and
• Minimum height of trees: Potential to reach a minimum height at maturity in situ of 2 to 5 m (India 2m).

India’s definition of forest has been taken on the basis of above three criteria only and  accepted by United Nations Framework Convention on Climate Change (UNFCCC) and Food and Agriculture Organization (FAO) for their reporting/communications.

The forest cover is defined as ‘all land, more than one hectare in area, with a tree canopy density of more than 10 percent irrespective of ownership and legal status.Such land may not necessarily be a recorded forest area. It also includes orchards, bamboo and palm’. The definition of forest cover has clearly been defined in all the India State of Forest Report (ISFR) and in all the International communications of India.

The Interpretation of satellite data for classifying Very Dense Forest (VDF) is also supported by the ancillary data like field inventory data of FSI, ground truthing data and high resolution satellite imagery wherever required.

2. CHANDRAYAAN-3 IS SCHEDULED FOR LAUNCH IN AUGUST 2022

THE CONTEXT: According to the Budget Parliamentary proceedings of 2022, Minister for Science and Technology informed in the parliament that India plans to execute the Chandrayaan-3 mission by August 2022.

THE EXPLANATION:

• The Chandrayaan-3 mission is a follow-up of Chandrayaan-2 of July 2019, which aimed to land a rover on the lunar South Pole. It was sent aboard the country’s most powerful geosynchronous launch vehicle, the GSLV-Mk 3.
• However, lander Vikram, instead of a controlled landing, ended up crash-landing on September 7, 2019, and prevented rover Pragyaan from successfully travelling on the surface of the moon. Had the mission been successful, it would have been the first time a country landed its rover on the moon in its maiden attempt.
• The ISRO has planned 19 missions until December consisting of eight launch vehicle missions, seven spacecraft missions and four technology demonstrator missions.
• The ISRO has been allotted ₹13,700 crore for this financial year, nearly ₹1,000 crore more than it spent last year. Despite the several missions planned this year, the budgeted outlay this year is less than the ₹13,949 crore allotted in the year 2021.

Decoding Chandrayaan-3

• Chandrayaan-3 is a lander-and rover-specific mission, which will demonstrate India’s capability of soft landing on a celestial body, with the rover then communicating with Earth via the existing orbiter from Chandrayaan-2 and taking images 100 km from Moon’s orbit. The orbiter has an estimated lifespan of seven years.
• The unique exploration of Chandrayaan-3 aims at studying not just one area of the Moon but all the areas combining the exosphere, the surface as well as the sub-surface in a single mission.
• With Chandrayaan-1, ISRO achieved immense success as the ‘Moon Impact Probe’ by Chandrayaan-1 lunar remote sensing orbiter detected water in vapor form in trace amounts. The discovery was done along with JPL-Brown University payload Moon Mineralogy Mapper (M3) that confirmed that the formation of Hydroxyl ions and water molecules on the lunar surface is an ongoing process.
• With Chandrayaan-3, India aims to further the study of the lunar surface, focusing on the dark side of the Moon that has not seen sunlight in billions of years, which is believed to have ice and vast mineral reserves.

3. KHADI PRAKRITIK PAINT

THE CONTEXT: Kumarappa National Handmade Paper Institute (KNHPI), Jaipur, a unit of Khadi and Village Industries Commission (KVIC), under the administrative control of the Ministry of MSME, developed Khadi Prakratik Paint has been developed from cow dung.

THE EXPLANATION:

• It is envisaged that manufacture of Khadi Prakritik Paint will promote local manufacturing, create sustainable employment and generate additional revenue for farmers and cow shelter homes and will also generate employment in the rural areas, which will improve the rural economy and help in controlling the migration from rural to urban areas, in the country.
• Cow dung is a major constituent used in the manufacture of Prakritik Paint. 100 kgs. of cow dung is utilized for making 500 liters of paint. Therefore, setting up of paint units would be helpful in utilization of cow dung and thereby help in cleaning the environment.
• KNHPI imparts training in manufacture of Khadi Prakritik Paint. Prakritik Paint manufacturing units are being set up under Prime Minister’s Employment Generation Programme (PMEGP) scheme of Ministry of MSME.

4. NATIONAL ADAPTATION FUND FOR CLIMATE CHANGE (NAFCC)

THE CONTEXT: According to the Ministry of Environment, Forest and climate change, the National Adaptation Fund for Climate Change (NAFCC) was established to support adaptation activities in the States and Union Territories (UTs) of India that are vulnerable to the adverse effects of climate change. NAFCC is implemented in project mode and till date, 30 projects are sanctioned in 27 States and UTs.

THE EXPLANATION:  

The Ministry has demarcated the Hazard Line for the entire mainland coast of India under its Integrated Coastal Zone Management (ICZM) project. Further, Coastal Regulation Zone Notification 2019 has been notified to conserve and protect the unique environment of coastal stretches and marine areas to promote sustainable development.

The NAFCC projects implemented in the states of Kerala, Tamil Nadu and Andhra Pradesh include activities relating to coastal areas and these projects are-

• Promotion of integrated farming system of Kaipad in coastal wetlands of North Kerala
• Management and rehabilitation of coastal habitats and biodiversity for climate Change Adaptation and Sustainable Livelihood in Gulf of Mannar, Tamil Nadu and
• Climate Resilient interventions in Dairy Sector in coastal and Arid areas in Andhra Pradesh. Till date, a sum of Rs. 6,35,68,108/- has been released to the State of Andhra Pradesh under NAFCC

Definition of Integrated Coastal Zone Management:

• Integrated Coastal Zone Management (ICZM) is a resource management system following an integrative, holistic approach and an interactive planning process in addressing the complex management issues in the coastal area
• The concept of Integrated Coastal Zone Management was borne in 1992 during the Earth Summit of Rio de Janeiro. The policy regarding ICZM is set out in the proceedings of the summit within Agenda 21.

 5. HELI BORNE SURVEY TECHNOLOGY

THE CONTEXT: Central Ground Water Board (CGWB) has taken up Heli-borne survey for generation of aquifer related information and its management in certain Arid/Semi-Arid areas of Rajasthan, Gujarat and Haryana.

THE EXPLANATION:

Under Ground Water Management & Regulation scheme, a Central Sector Scheme, with an estimated cost of Rs 54.00 Cr and likely date of completion as 31 March 2022.

Heli Survey Technology

• The state-of-the-art technology, Heli Survey Technology, will be used to map the groundwater sources in arid regions. Survey will help in utilizing groundwater for drinking purposes.
• Heli-borne geophysical mapping technique will provide high-resolution 3D image for sub-surface up to a depth of 500 meters below the ground level.

Aim of the project

This project has been developed with the aim of mapping potential groundwater sources and its management in providing safe drinking water to people in the water scarce arid regions of India.

Two Phases of the project

The mega project worth Rs. 150 crores will be implemented in two phases. To implement the project, CSIR has collaborated with the Ministry of Jal Shakti under the “National Aquifer Mapping Project”.  This project will bring high visibility to CSIR to implement the Jal Jeevan Mission project.

Significance of the technology

Water technologies of CSIR from source finding to water treatment will positively contribute towards “Har Ghar Hal se Jal” scheme as well as “doubling farmer’s income goals”.

Arid areas in India

Arid areas in northwestern India are spread across the States of Rajasthan, Haryana, Gujarat and Punjab. The area covers about 12% of the total geographical area in India and is home to about 8 crore people. Annual rainfall in arid areas is in the range of 100 to 400 mm. Thus, there is an acute shortage of water throughout the year.

THE SCIENCE AND TECHNOLOGY

6. NASA’S RETIREMENT PLAN FROM SPACE STATION

THE CONTEXT: According to a NASA’s press release, NASA plans to retire the International Space Station at the end of 2030 and crash it into the Pacific Ocean in an area called Point Nemo.

THE EXPLANATION:

For over two decades, the International Space Station (ISS) has been orbiting Earth at a speed of about eight kilometres per second, while an international crew of astronauts and cosmonauts onboard conducted ground-breaking scientific investigations that have thrown open the doors for deep space exploration.

What is International Space Station?

• The International Space Station is a large spacecraft in orbit around Earth. It serves as a home where crews of astronauts and cosmonauts live. The space station is also a unique science laboratory. Several nations worked together to build and use the space station. The space station is made of parts that were assembled in space by astronauts.
• It orbits Earth at an average altitude of approximately 250 miles. It travels at 17,500 mph. This means it orbits Earth every 90 minutes. NASA is using the space station to learn more about living and working in space. These lessons will make it possible to send humans farther into space than ever before.

What’s next for the ISS?

According to NASA, once it retires, the ISS will be replaced by “one or more commercially-owned and -operated” space platforms. “The private sector is technically and financially capable of developing and operating commercial low-Earth orbit destinations, with NASA’s assistance.

What about India’s Space Station?

According to the ISRO, India will launch its first indigenously made space station by 2030, just a few years after the ‘Gaganyaan’ mission which will kick off starting 2022.

THE PRELIMS PRACTICE QUESTIONS

QUESTION OF THE DAY 4^th FEBRUARY 2022

Q. Consider the following statements about the recently published India State Forest Report 2021.

1. India’s forest and tree cover published every year by the Forest Survey of India under the Ministry of Environment, Forests and Climate Change.
2. According to the report, Northeastern states shows consistently increased in the forest cover.
3. For the first time, the report assessed forest cover in tiger reserves, tiger corridors and the Gir forest which houses the Asiatic lion.

Which of the given statements is/are correct?

a) 1 and 2 only

b)2 and 3 only

c) 3 only

d) 1, 2 and 3

ANSWER FOR 3^rd FEB 2022

Answer: c

Explanation:

• Statement 1 is incorrect: Contracting Parties are expected (but not mandated) to manage their Ramsar Sites so as to maintain their ecological character and retain their essential functions and values for future generations.
• Statement 2 is correct: The convention specifies that “Contracting Parties shall (not may) formulate and implement their planning so as to promote the conservation of the wetlands included in the List”.

Statement 3 is incorrect: Many important wetlands extend as one ecologically coherent whole across national borders. In these cases, COP can agree to establish Ramsar Sites on their territory as parts of a bigger Trans boundary Ramsar Site.

THE CONTEXT: Recently the Government of India has passed three farm bills that are being widely criticized by many farmer organizations. The farm bills are criticized for being pro-market reforms that have the potential of harming farmers’ interests in the long run.

HISTORICAL BACKGROUND

• Since 1991, economic liberalization and reforms by successive governments across the political spectrum – except during the lost decade of 2004-14 – have enabled a return to these core economic principles.
• That these timeless principles – advocated in as disparate Indian literature as the Arthashastra and the Thirukural – work is seen in the enormous prosperity well-regulated markets have delivered since 1991. Even the Chinese economic miracle is testimony to the role of markets in enabling economic prosperity for citizens.

WHAT IS FARM BILL 2020?

• In September 2020, the Indian government passed three agricultural bills, which are – Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bil, 2020, Farmers (Empowerment and Protection) Agreement of Price Assurance, Farm Services Bill, 2020, and the Essential Commodities (Amendment) Bill, 2020.
• The new farmers’ bill allows the farmers to sell their products directly to private buyers breaking the monopoly of man is regulated by the government. The people get empowered to get into a legal deal with the companies and produce agro-products for them. The farmers’ bill India also allows stocking of food articles by the agri-businesses removing the ability of the government to impose arbitrarily.

The three farm acts:

1. Farmer’s Produce Trade and Commerce (Promotion and Facilitation) Act, 2020

• This act allows farmers to engage in trade of their agricultural produce outside the physical markets notified under various state Agricultural Produce Marketing Committee laws (APMC acts). Also known as the ‘APMC Bypass Bill’, it will override all the state-level APMC acts.
• Promotes barrier-free intra-state and inter-state trade of farmer’s produce.
• Proposes an electronic trading platform for direct and online trading of produce. Entities that can establish such platforms include companies, partnership firms, or societies.
• Allows farmers the freedom to trade anywhere outside state-notified APMC markets, and this includes allowing trade at farm gates, warehouses, cold storages, and so on.
• Prohibits state governments or APMCs from levying fees, cess, or any other charge on farmer’s produce.
• The three farm acts are likely to have a significant impact on farmers and agriculture in the country.

2. Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020

• The act seeks to provide farmers with a framework to engage in contract farming, where farmers can enter into a direct agreement with a buyer (before sowing season) to sell the product to them at pre-determined prices.
• Entities that may strike agreements with farmers to buy agricultural produce are defined as “sponsors’’ and can include individuals, companies, partnership firms, limited liability groups, and societies.
• The act provides for setting up farming agreements between farmers and sponsors. Any third parties involved in the transaction (like aggregators) will have to be explicitly mentioned in the agreement. Registration authorities can be established by state governments to provide for an electronic registry of farming agreements.
• Agreements can cover mutually agreed terms between farmers and sponsors, and the terms can cover supply, quality, standards, price, as well as farm services. These include supply of seeds, feed, fodder, Agrochemicals, machinery and technology, non-chemical agro-inputs, and other farming inputs.
• Agreements must have a minimum duration of one cropping season or one production cycle of livestock. The maximum duration can be five years. For production cycles beyond five years, the period of agreement can be mutually decided by the farmer and sponsor.
• The purchase price of the farming produce—including the methods of determining the price—may be added to the agreement. In case the price is subject to variations, the agreement must include a guaranteed price to be paid as well as clear references for any additional amounts the farmer may receive, like bonus or premium.
• There is no mention of minimum support price (MSP) that buyers need to offer to farmers.
• Delivery of farmers’ produce may be undertaken by either party within the agreed time frame. Sponsors are liable to inspect the quality of products as per the agreement, otherwise, they will be deemed to have inspected the product and have to accept the delivery within the agreed time frame.
• In the case of seed production, sponsors are required to pay at least two-thirds of the agreed amount at the time of delivery, and the remaining amount is to be paid after due certification within 30 days of the date of delivery. Regarding all other cases, the entire amount must be paid at the time of delivery, and a receipt, the slip must be issued with the details of the sale.
• Produce generated under farming agreements are exempt from any state acts aimed at regulating the sale and purchase of farming produce, therefore leaving no room for states to impose MSPs on such produce. Such agreements also exempt the sponsor from any stock-limit obligations applicable under the Essential Commodities Act, 1955. Stock limits are a method of preventing hoarding of agricultural produce.
• Provides for a three-level dispute settlement mechanism: the conciliation board—comprising representatives of parties to the agreement, the sub-divisional magistrate, and appellate authority.

2. Essential Commodities (Amendment) Act, 2020

• An amendment to the Essential Commodities Act, 1955, this act seeks to restrict the powers of the government with respect to the production, supply, and distribution of certain key commodities.
• The act removes cereals, pulses, oilseeds, edible oils, onion, and potatoes from the list of essential commodities.
• Government can impose stock holding limits and regulate the prices for the above commodities—under the Essential Commodities, 1955—only under exceptional circumstances. These include war, famine, extraordinary price rise, and the natural calamity of grave nature.
• Stock limits on farming produce to be based on price rise in the market.  They may be imposed only if there is: (i) a 100 percent increase in the retail price of horticultural produce, and (ii) a 50 percent increase in the retail price of non-perishable agricultural food items. The increase is to be calculated over the price prevailing during the preceding twelve months, or the average retail price over the last five years, whichever is lower.
• The act aims at removing fears of private investors of regulatory influence in their business operations.
• Gives freedom to produce, hold, move, distribute, and supply products, leading to harnessing private sector/foreign direct investment in agricultural infrastructure.

ARGUMENTS SUPPORTING THE FARM LAWS

The purpose of the new farm laws is to end the historic exploitation of farmers at the APMC markets and free them from the clutches of the middlemen. Farmers who sell their produce to mandi merchants, or ‘arhatiyas’, at agricultural produce market committee (APMC) markets still receive informal white slips with the transaction amount scribbled on them, making the record non-transparent. The purpose of the new farm laws is to end the historic exploitation of farmers at the APMC markets and free them from the clutches of the middlemen.

Economic history of exploitation at mandis:

• Fifty-five years since the APMCs were introduced, the country’s farmers are still receiving a low share of the consumer’s rupee as indicated by a Reserve Bank of India study covering mandis in 16 states, 16 food crops, and 9,400 farmers, traders, retailers.
• The farmers’ shares were 28 percent for potato, 33 percent for onion, 49 percent for rice, a crop with minimum support price (MSP) guarantee.
• The provision of MSP alone will not ensure farmers draw a greater share of the consumer’s rupee because supply is greater than demand.
• The demand is also influenced by schemes such as the national food security mission, where food grains are offered free or at low prices. When rice and wheat are offered virtually free of cost, why will the consumer buy Ragi, Jowar, Bajra at a higher price?
• Injecting competition by widening farm markets will benefit farmers, which the three farm laws aim at.

Inefficiencies in APMCs:

• The APMCs still don’t issue formal receipts which are supposed to mention the price, quantity, or quality of the produce.
• Further, due to interlocked markets, farmers are forced to sell to those middlemen who they have borrowed money from, starting off a vicious circle of exploitation in times of distress sales.
• Buyers make a large income from informal lending. Such illegal paired with unfair deductions, undercover sales, cartels, and collusions at APMCs have continued denying remunerative prices to the farmers.

Widened markets benefit farmers:

• Due to green revolution technologies, supply has increased but is limited to APMCs for handling. This causes the prices to be capped at a lower value. Permission to buy or sell outside APMCs will benefit farmers by creating new supply or value chains.
• The nominal protection coefficient (domestic price divided by international price) for agriculture is 0.87. This implies that farmers can get at least 13 percent higher prices in international markets by exporting.

Infringement of rights: 

• Farmers’ right to sell their produce to whomever, wherever, whenever, and in whichever quantity cannot be infringed upon. The elasticity of price transmission between that at APMCs and farmgate price (market value minus selling cost) is impressive. Thus, buyers outside APMC will have to compete with APMC prices and vice versa to attract farmers’ produce.

No interference with the state:

• Entry 26 of the state list enables states to regulate trade in agricultural commodities within their boundary. But this is subject to entry 33 in the concurrent list, which allows both the Centre and the states to frame these regulations.
• Such market reforms can double farmer incomes. Also, with Article 249, the Centre can enact the law in the national interest of saving farmers from exploitation by middlemen.

Multiple markets and competition:

• Allowing buyers outside APMC mandis promotes competition and halts exploitation. At present, while consumers are paying a higher price, farmers are still receiving lower returns due to inefficiencies and imperfections. Thus, setting the markets right is crucial through the new laws.
• Unified market platform (UMP) in Karnataka resulted in an increase of prices by 38 percent. This implies that current market prices are depressed by 38 percent due to a lack of adequate competition. Opening up the markets can push the APMCs to offer competitive prices.
• Competition in procurement and distribution costs can also reduce from 30 percent to 15 percent.

Bihar’s impressive performance:

• Economic reforms in Bihar in 2005 that removed the APMC act resulted in impressive agricultural and overall performance.
• Before 2005, Bihar’s economy grew at a rate of 5.3 percent while India’s economy grew at 6.8 percent. After the reforms, Bihar’s economy grew at 11.7 percent with a 4.7 percent agriculture boost, while India’s economy grew at 8.3 percent with agricultural growth at 3.6 percent.
• Between the pre and post-reform period, the average wholesale price of paddy increased by 126 percent, maize by 81 percent, and wheat by 66 percent.
• Considering the impact of reforms on crop output, in the pre-reforms (2000 to 2007) and post-reforms (2008 to 2015) period, the growth rates of the output of field crops (1.53 percent, 4.29 percent) were higher than that of horticulture crops (-3.51 percent, 2.85 percent), with an impressive growth rate of the overall output of agriculture and allied sectors (2.57 percent, 4.66 percent).

Contract farming:

• Contract farming enabled farmers to offer products at a predetermined price. When the market price is above the contractual price, farmers have the liberty to sell at a higher price.
• Small farmers have benefitted more than large farmers in contract farming as income derived per acre was the highest for small farmers.

Agriculture markets starved of 3Cs: 

• Agricultural markets are starved of capital, competition, and commitment. Capital injection postpones the operation of the law of diminishing marginal returns.
• The gross private capital formation in agriculture is 75 percent. Investment in marketing infrastructure, processing, logistics benefits society, where the private sector has potential. For these, political will is crucial and hence, the Union government should not repeal the three laws.
• New provisions of the Essential Commodities Act enable scale economies in agricultural marketing to attract private sector investment.

National overseeing authority: 

• Farmers cannot be left to the free will of competitive markets due to skewed asset distribution. A national body, a national agricultural marketing board similar to TRAI and SEBI, needs to be created to enhance the bargaining power of farmers and protect them, along with purchasers, sellers, and consumers from possibilities of exploitation.

WHY ARE THE FARMERS PROTESTING AGAINST THE FARM BILLS?

• More than half of all government procurement of wheat and paddy in the last five years has taken place in Punjab and Haryana, according to Agriculture Ministry data. More than 85% of wheat and paddy are grown in Punjab, and 75% in Haryana, is bought by the government at MSP rates. Farmers in these States fear that without MSPs, market prices will fall.
• These States are also most invested in the APMC system, with a strong mandi network, a well-oiled system of arthritis or commission agents facilitating procurement, and link roads connecting most villages to the notified markets and allowing farmers to easily bring their produce for procurement. The Punjab government charges a 6% mandi tax (along with a 2.5% fee for handling central procurement) and earns annual revenue of about ₹3,500 crores from these charges.
• The very right of the Centre to enact legislation on agricultural marketing. Article 246 of the Constitution places “agriculture” in entry 14 and “markets and fairs” in entry 28 of the State List. But entry 42 of the Union List empowers the Centre to regulate “inter-State trade and commerce”. While trade and commerce “within the State” are under entry 26 of the State List, it is subject to the provisions of entry 33 of the Concurrent List – under which the Centre can make laws that would prevail over those enacted by the states.
• Entry 33 of the Concurrent List covers trade and commerce in “foodstuffs, including edible oilseeds and oils”, fodder, cotton and jute. The Centre, in other words, can very pass any law that removes all impediments to both inter-and intra-state trade in farm produce, while also overriding the existing state APMC Acts.

ISSUE REGARDING THE BILL

• Yes, there were many flaws in the decades-old APMC Act, but critics believe that the need was to plug the loopholes instead of introducing a new system altogether. A similar system has already been introduced in America and some European countries where it has failed miserably, we can only hope this does not happen in India and government will not repeat those mistakes.
• From the attitude of the government, the stand of the government is very clear that it is not going to change anything because already it has been termed as Masterstroke. Right now, it is just an Act both are results are possible; farmers income becomes double as said by the government, or their conditions worsen as feared by farmers. History is the best judge. While the intent of the Government is laudable, we will be able to see the results of these new Acts after a few years only. Right now, everything is just speculation.
• The bill has triggered strong protests all over the country. Let’s have a look at the issues that are triggering so many protests across the nation.
• These new farmers’ bills might end MSP or minimum support prices and this bothers the farmers.
• Another concern is the lack of bargaining capability with big companies. The people involved in farming might get the freedom to deal with the biggest of the companies but due to the lack of knowledge, he/ she might not be able to negotiate the best possible terms.
• Outside the mandis or government-regulated markets, there is hardly any regulation, and a grievance redressal system is also not present there.
• The new farmers’ bill may weaken the APMC system which is considered to be very helpful for small farmers.
• As per the suggestions of agricultural economists, the focus should be given to strengthening APMCs rather than transferring everything to private entities.
• Many are fearing that the people involved in agriculture might be turned into slaves due to contractual farming.
• Due to the removal of restrictions on food storage, big companies may store agro products in huge quantities and create artificial hikes in price.

WAY FORWARD

Three fundamental reforms are necessary to make India’s growth more just and more inclusive.

• The first is, policymakers must listen to the less powerful people in markets. Therefore, institutions that represent small people — associations and unions of farmers, informal workers and small enterprises — must be strengthened, not repressed. When reforms are supposedly in their interests, they have a right to be heard.
• The second is the formation of cooperatives of producers and workers. By aggregating the small into larger-scale enterprises owned by themselves, not only do the producers have more power in negotiations with their buyers, suppliers, and with government, they are also able to retain a larger part of the value they generate and increase their own incomes and wealth. Government regulations must encourage the formation of strong cooperatives, and improve their ease of doing business.
• The third is, market reformers must clean up their ideological lenses and see the reality of where power lies in markets. As Barbara Harriss-White, a scholar of India’s agricultural markets once observed, “deregulated imperfect markets may become more, not less, imperfect than regulated imperfect markets.”

CONCLUSION:

• Farmers are debt-ridden, starved of funding and of assured price mechanism. The three legislations if taken together accentuate the crisis even further. In the absence of a guaranteed support price mechanism, the legislations even fail to mention very strong support for the MSP as a benchmark price as a fundamental condition for open agriculture trade and winding up of mandis. For years farmers have demanded statutory support prices for their produce from the government.
• There is a need to restore the shaken confidence of the agrarian sector. In order for that to happen the government of India needs to give an iron-clad guarantee on holding the price line 100% over and above the inflation-linked cost of production to the primary producer and not allowing any players to offer a price below that line to them. Only such a guarantee will ensure the confidence of the farmers in the system.
• We need to understand that if the country has to come out of its grave economic crisis, the answer does not lie in the economies of the urban or of the extractive economies of the capital. The answer decisively lies in the revival of the rural with dignity and respect. The country, it must be understood, cannot survive if the rural falls and chances of such an event happening today can only be averted with a considered policy response initiated with empathy and care.