Part 1: Introduction
1.1 Overview of India's Agricultural Sector
India's agriculture sector is the backbone of its economy, contributing to nearly 18% of the GDP and employing more than half of the country's workforce. Despite its size and importance, the sector has long faced structural inefficiencies: fragmented markets, heavy reliance on middlemen, inadequate warehousing, price volatility, and outdated procurement mechanisms. These inefficiencies have historically led to poor price realization for farmers, stagnating income, and rising farmer distress.
1.2 Why Reforms Were Needed
The call for agricultural reforms isn’t new. Over the past two decades, several expert committees, including the Swaminathan Commission, and reports by NITI Aayog, have emphasized the need to liberalize agricultural markets, ensure better price discovery, and reduce the monopoly of state-run mandis (APMCs). The overarching vision was to double farmers' income by 2022, a target set by the Government of India in 2016.
1.3 The Existing System: APMC, MSP & Bottlenecks
The Agricultural Produce Market Committee (APMC) system was introduced to protect farmers from exploitation by intermediaries. However, over time, it became restrictive, giving rise to cartelization and lack of competition. Minimum Support Price (MSP), though well-intended, benefitted only a small portion of farmers. In states like Punjab and Haryana, more than 80% of produce is sold at MSP; in others like Bihar or Odisha, the figure drops below 10%.
Part 2: Laying the Foundation (2017–2019)
2.1 NITI Aayog’s 2017 Recommendations
In 2017, NITI Aayog released a series of position papers advocating reforms in agricultural marketing. The key recommendations included:
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Allowing private markets to coexist with APMC.
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Legalizing contract farming.
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Overhauling the Essential Commodities Act.
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Establishing a national market for agricultural produce.
2.2 Model APMC Act, 2017
The "Model Agricultural Produce and Livestock Marketing Act, 2017" was introduced to serve as a template for states. Its features included:
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Direct sale of produce outside APMC.
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Electronic trading platforms.
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Single-point levy of market fees.However, adoption by states was limited. Agriculture being a state subject under the Constitution, central reforms required state-level cooperation, which was lacking.
2.3 Model Contract Farming Act, 2018
The Government of India introduced the "Model Contract Farming and Services Act" in 2018. Key features included:
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Legal framework for farmer-buyer agreements.
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Quick dispute resolution mechanisms.
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Provisions for fair pricing and quality standards.
2.4 Think Tanks and Expert Inputs
Think tanks like ICRIER, and research from academic institutions, pushed for a market-oriented approach to boost farm productivity and price realization. Their data-driven assessments emphasized structural reforms, building consensus for change.
2.5 Political Developments
Simultaneously, the BJP-led central government positioned itself as pro-farmer and pro-reform. Political manifestos in 2019 explicitly promised modernization of agricultural laws, hinting at reforms to come.
Part 3: Legislation and Drafting of Farm Laws (2020)
3.1 Ordinance Route During Pandemic
In June 2020, amid the COVID-19 pandemic and nationwide lockdown, the Government promulgated three ordinances:
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The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Ordinance.
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The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance.
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The Essential Commodities (Amendment) Ordinance.The decision to use the ordinance route attracted criticism for bypassing legislative debate.
3.2 Details of the Three Laws
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Trade and Commerce Act: Allowed sale of produce outside APMC mandis without taxes.
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Contract Farming Act: Enabled pre-agreed pricing between farmers and buyers.
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ECA Amendment: Removed stock limits for cereals, pulses, onions, etc., under normal circumstances.
3.3 Passage in Parliament
In September 2020, the three bills were introduced in Parliament. Passed in the Lok Sabha amid support, they faced severe pushback in the Rajya Sabha. Opposition parties alleged undemocratic procedures as voice votes were used amid ruckus.
3.4 Reactions from States
Punjab, Chhattisgarh, and Rajasthan opposed the laws citing federal overreach. They argued that agriculture is a state subject and central intervention undermined state powers.
Part 4: The Farmers’ Protest (2020–2021)
4.1 Protest Begins
By November 2020, farmers, particularly from Punjab and Haryana, began marching toward Delhi. They were met with barricades, water cannons, and tear gas. Ultimately, they camped at Delhi’s borders: Singhu, Tikri, and Ghazipur.
4.2 Major Demands
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Repeal all three laws.
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Legal guarantee for MSP.
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Withdrawal of Electricity Amendment Bill.
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No punishment for stubble burning.
4.3 Role of Samyukta Kisan Morcha (SKM)
A united platform of over 40 farmer unions, SKM coordinated the movement, issued statements, and led negotiations. Leaders like Rakesh Tikait and Yogendra Yadav emerged as key voices.
4.4 International and Domestic Solidarity
The protests garnered international attention. Celebrities like Rihanna, Greta Thunberg, and global NGOs commented. Indian diaspora staged protests in Canada, UK, and the USA. Meanwhile, Indian civil society, students, and artists also expressed solidarity.
4.5 Republic Day Incident
On 26 January 2021, during a planned tractor rally, a section of protesters deviated from the route and entered Red Fort. Violence erupted, damaging property and injuring both protesters and police. This led to temporary loss of public support and strict police crackdowns.
4.6 Negotiations with the Government
Over 11 rounds of formal dialogue were held between farmers and the government, but no consensus emerged. The government offered to suspend the laws for 18 months, which farmers rejected.
Part 5: Political and Economic Impact
5.1 Impact on BJP and State Politics
The BJP faced setbacks in state elections, notably in West Bengal and bypolls in Haryana and Punjab. Its ally, Shiromani Akali Dal, exited NDA in protest. In Uttar Pradesh, farmer resentment influenced local politics.
5.2 Economic Fallout
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Trade disruptions at Delhi borders.
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Perishable crops wasted due to transport delays.
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Gradual shift of procurement to private players in some regions.
5.3 Media and Perception Battle
Mainstream media was polarized: some vilified the protesters as ‘Khalistani’, others portrayed them as democratically protesting farmers. Social media became a battleground of narratives.
5.4 Legal Challenges
Petitions were filed in Supreme Court challenging the laws. The court stayed implementation in January 2021 and appointed an expert committee to consult stakeholders.
Part 6: Repeal of the Laws
6.1 PM Modi’s Announcement
On 19 November 2021, Prime Minister Modi announced the repeal of the laws in a televised address, coinciding with Guru Nanak Jayanti. He said the government "failed to convince a section of farmers."
6.2 Parliamentary Repeal
On 29 November 2021, the Farm Laws Repeal Bill was passed in both Houses of Parliament without discussion.
6.3 Reactions
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Farmers celebrated but remained cautious.
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SKM demanded legal MSP and compensation for deceased protesters.
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Opposition parties claimed moral victory.
Part 7: Conclusion and The Road Ahead
7.1 What Went Wrong
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Lack of consultation with stakeholders.
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Poor communication strategy.
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Timing amid pandemic added to suspicion.
7.2 Lessons for Policymaking
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Reforms in democracy need broad consensus.
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Bypassing federal structure can backfire.
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Perception management is as important as policy design.
7.3 The Way Forward
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Engage in cooperative federalism.
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Reform APMC rather than bypass it.
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Legalize MSP selectively, pilot in key crops.
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