The Story behind the Farmer’s Fear of Losing MSP under New Farm Laws in India

Abstract

According to the farm bills the farmers have the freedom to sell their products wherever, and to whomever, they interested; which ultimately help them to rectify the restrictive trade and marketing policies followed so far. All producers work on the signals that prices convey and, to the extent the ECA (Essential Commodities Act) interferes with price-signalling, it hurts investment decisions. The passing of farm bills in both the houses of Parliament has led to a major controversy in the country. The government claims that it is a historic step taken in the interest of farmers, giving them freedom to sell their produce anywhere and to whomsoever they want in the country. But the opposition parties say it is a ‘black day’ as it will destroy the existing system of minimum support price (MSP) and APMC (Agricultural Produce Market Committee) markets, and leave the farmers at the mercy of big corporations.