Farmers Movement Archive

PACS in Bihar may become redundant

PATNA: Even as the farmers of Punjab, Haryana and western Uttar Pradesh have launched a tirade against three controversial farm laws enacted by the Centre, the central ministers continue to refer to the Nitish Kumar-led NDA government in Bihar which had “freed” the farmers from the hold of the market committees 14 years ago. It was in 2006 when the Nitish government abolished the Agriculture Produce Market Committee (APMC) Act. In sync with the same, the central ministers have been citing one of the three Acts – the Farmers Produce Trade and Commerce (Protection and Facilitation) Act, 2020 or the FPTC(P&F) Act – pointing out that it will free the farmers from the middlemen as has happened in Bihar. Incidentally, farmers agitating under the banner of the All India Kisan Sangharsh Samiti (AIKSS) have been saying that the three farm laws passed by the Centre would destroy the farmers. After abolishing the APMC Act in 2006, the Bihar government had put in place Primary Agricultural Credit Societies (PACS) as an agency designated for the procurement of paddy, besides strengthening it to run agricultural equipment bank or have its own storage facility. The Centre, however, has introduced the FPTC (P&F) Act by not creating any agency like PACS. It has instead introduced contract farming to be done by willing big companies on the basis of the provisions in the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020. Implicitly, the company concerned would provide farmers farming services and also purchase their produce at the market rate as per the agreement. Further, under the Essential Commodities (Amendment) Act, 2020, the companies would be free to stock the produce without any restriction, which, in effect, will make the PACS in Bihar redundant. The middle, big and well-off farmers in Bihar used to sell their produce at the mandis and bajaar samitis at the MSP rates before 2006 by paying 1% tax to the samitis. D N Diwakar, who is associated with A N Sinha Institute of Social Studies, said those who sold their produce at the bazaar samitis constituted only around 6% of the total number of farmers. The remaining 94% of small and marginal farmers, as well as bataidars (sharecroppers) used to sell in the open market at prices drastically less than the MSP rates, which has continued till date. “As many as 94% of the farmers sell their produce at the farm harvest price (FHP) rates even today or resort to distress sales. The FHP is always less than the MSP and wholesale rates. The returns these farmers get on their produce are abysmally low,” Diwakar added.

The Times of India

2020-12-08

Patna