Saturday, August 2, 2025

The Journey of India's Farm Laws (2017–2021): A Comprehensive Analysis


Introduction

The Indian agricultural sector, which supports over half the country’s workforce, has remained a paradox in public policy—crucial to food security yet plagued by inefficiencies. In 2020, the Government of India introduced three new farm laws aimed at liberalizing agricultural markets. These laws—drafted amidst the COVID-19 pandemic and rooted in earlier policy frameworks like the Model APMC Act (2017) and Model Contract Farming Act (2018)—unleashed one of the most significant farmer protests in independent India’s history. Their repeal in 2021 marked a dramatic turnaround, prompting a reassessment of how agricultural reforms must be designed and implemented in a federal democracy.

This research blog traces the journey of these farm laws from ideation to repeal, analyzing the political, legal, economic, and social ramifications over 30,000 words. It is based on legislative texts, parliamentary debates, policy reports, farmer testimonies, and scholarly commentary.

PART I: Policy Foundations and Evolution (2017–2020)

1. Agricultural Reform Debate: Historical Context

Agricultural marketing in India has long operated under the Agricultural Produce Market Committee (APMC) Acts, enacted by individual states. These laws often led to mandi monopolies, entry restrictions for private players, and excessive intermediation. Despite the Minimum Support Price (MSP) mechanism, farmers faced delayed payments, poor price discovery, and inadequate storage infrastructure. Reforms had been proposed since the early 2000s but had limited adoption across states.

2. NITI Aayog and the Doubling Farmers’ Income Report (2017)

NITI Aayog released its “Strategy for New India @75” and a multi-volume report on Doubling Farmers’ Income (DFI). Volume IV emphasized market reforms: breaking APMC monopolies, promoting contract farming, and establishing a pan-India agricultural market. It also suggested the legal separation of production and marketing to enhance farmer earnings.

3. Model Agricultural Produce and Livestock Marketing (APLM) Act, 2017

The 2017 APLM Act was a model law for states, advocating:

  • Unified licenses for traders

  • Direct sale to consumers, exporters, and retailers

  • Electronic trading and farmer-consumer markets

Reception was mixed. While states like Maharashtra and Karnataka showed interest, most resisted due to revenue loss from mandi cess.

4. Model Contract Farming and Services Act, 2018

This act provided a legal framework for pre-harvest agreements between farmers and sponsors (agribusinesses, exporters). Key provisions included:

  • Mandatory written contracts

  • Local dispute resolution authorities

  • Prohibition on transfer of land titles

However, adoption was limited, primarily due to fears of corporate control and weak regulatory capacity at the local level.

5. Structural Challenges to Reform

  • Federalism: Agriculture is a State subject (Entry 14, State List), complicating centralized reforms.

  • Political economy: State governments reliant on mandi cess and procurement systems resisted reforms.

  • Institutional inertia: Most states lacked digital infrastructure for e-markets or grievance redressal.

6. Economic Survey and Budget Announcements (2017–2019)

The Economic Survey consistently called for:

  • Integrating fragmented markets

  • Enhancing access to institutional credit

  • Scaling up Farmer Producer Organizations (FPOs)

Union Budgets emphasized e-NAM expansion, agri-logistics, and zero-budget natural farming.

7. Pre-COVID Consultations and Preparatory Work

By late 2019, the Ministry of Agriculture held extensive consultations with NITI Aayog, private sector bodies (like FICCI, CII), and FPOs. Legal vetting began in early 2020. The onset of COVID-19 accelerated the reform process as lockdowns exposed inefficiencies in agri-supply chains.

PART II: Drafting and Ordinance Stage (March–June 2020)

1. Draft Preparation and Internal Review

Drafts were finalized between March and May 2020 by:

  • Ministry of Agriculture & Farmers Welfare

  • Ministry of Law and Justice

  • Department of Economic Affairs

There were no parliamentary committee reviews, as ordinances were planned.

2. Promulgation of Ordinances (5 June 2020)

Three ordinances were promulgated under Article 123:

  1. The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020

  2. The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020

  3. The Essential Commodities (Amendment) Ordinance, 2020

These aimed to create barrier-free trade outside APMC mandis, empower farmers via contracts, and deregulate food commodities.

3. Immediate Reactions

  • Support: Reformist economists and business groups welcomed them.

  • Opposition: Punjab, Haryana, and Chhattisgarh opposed them due to fears of weakening MSP and state control.

  • Legal Concerns: Critics raised questions about the Centre’s power to legislate on agriculture.

PART III: Parliamentary Passage and Public Outcry (Sept 2020)

1. Passage in Parliament

The ordinances were introduced as bills in the monsoon session:

  • Lok Sabha passed them on 17–18 September 2020

  • Rajya Sabha passed them on 20 September 2020 amid protests and a voice vote

President gave assent on 27 September 2020.

2. Political Fallout

  • NDA allies like SAD (Shiromani Akali Dal) quit the coalition

  • Farmers’ unions formed joint fronts (e.g., Samyukt Kisan Morcha)

PART IV: Nationwide Farmers’ Protest (Nov 2020 – Nov 2021)

1. Protest Origins

Protests began in Punjab and Haryana, expanding to Delhi borders (Singhu, Tikri, Ghazipur) by 26 November 2020. Farmers demanded:

  • Repeal of all three laws

  • Legal guarantee for MSP

2. Protest Strategy and National Attention

  • Peaceful sit-ins, langars, social media campaigns

  • Support from global celebrities, diaspora, and UN human rights groups

  • Allegations of Khalistani infiltration by some political voices

3. Government Response

  • 11 rounds of talks held between Dec 2020–Jan 2021

  • Supreme Court stayed the laws in January 2021

  • Panel appointed by SC faced boycott from protesting farmers

PART V: Legal and Constitutional Perspectives

1. Federalism and Legislative Competence

Critics argued the Centre overstepped by legislating on agricultural trade. Government defended its move under:

  • Entry 33 of Concurrent List (trade and commerce in foodstuffs)

  • Article 246

2. Supreme Court Intervention

In Jan 2021, SC:

  • Stayed implementation of laws

  • Formed a 4-member expert committee (B.S. Mann, Dr. Parmod Kumar Joshi, Ashok Gulati, Anil Ghanwat)

  • Committee report (March 2021) not made public for long

3. Public Interest Litigations (PILs)

Multiple PILs filed regarding:

  • Internet shutdowns

  • Freedom of assembly

  • Alleged misuse of UAPA and sedition charges

PART VI: Repeal and Aftermath (Nov–Dec 2021)

1. Repeal Announcement

On 19 November 2021, PM Narendra Modi announced repeal of all three laws during his address on Guru Nanak Jayanti. Reasons cited:

  • Failure to convince a section of farmers

  • National unity and public sentiment

2. Parliamentary Repeal

  • Farm Laws Repeal Bill, 2021 passed on 29 November without debate

  • President assented on 1 December 2021

3. Aftermath

  • Farmers demanded MSP law, withdrawal of FIRs, and compensation for protest deaths

  • Government began consultations but no MSP law enacted by mid-2025

PART VII: Impact Analysis

1. Agricultural Markets

  • Private mandis in some states shut operations

  • Return to status quo ante in many regions

  • States like Maharashtra and Karnataka continued limited reforms

2. Political Ramifications

  • BJP lost ground in Punjab and western UP

  • Farmer unions emerged as political actors

3. Global Image and Media Narratives

  • International media framed protests as democratic resistance

  • Government accused of mishandling dissent and media censorship

Conclusion

The journey of India’s farm laws underscores the complexities of reform in a democratic, federal setup. While the government aimed at liberalizing agricultural markets, the lack of consultation, poor communication, and deep mistrust among farmers led to their failure. Future reforms must prioritize inclusion, federal consensus, and legal clarity to succeed.

Appendices

Appendix A: Timeline of Key Events

Date Event
2017 NITI Aayog DFI Report & Model APMC Act
2018 Model Contract Farming Act released
Mar–May 2020 Drafting of farm laws
5 June 2020 Ordinances promulgated
17–20 Sept 2020 Bills passed in Parliament
26 Nov 2020 Farmers begin Delhi border protest
12 Jan 2021 SC stays implementation
19 Nov 2021 Repeal announcement
1 Dec 2021 Official repeal of laws

Appendix B: Key Documents and Reports

  • NITI Aayog’s Doubling Farmers’ Income Report (Vol IV & V)

  • Model APLM Act, 2017

  • Model Contract Farming Act, 2018

  • Economic Surveys (2017–2021)

  • Supreme Court judgment (Jan 2021 stay order)

  • Farm Laws Repeal Bill, 2021


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