Before talking about this topic, let us go back to the history of the Indian Agricultural System back in 1857s… The farmers’ didn’t have any proper market for selling their products and were largely dependent on traders and money lenders for selling their products who in turn exploited farmers. Farmers started dipping into perpetual loans. After the independence of India, the government then realized the torture farmers were facing and came out with a solution to built APMC i.e Agricultural Produce Market Committee set to limit the occurrence of distress scale by the farmers under the pressure and exploitation of creditors and other intermediaries. The regulation of trading practices was done by the government. Several trading centers known as APMCs were set up in many states of India. A Minimum Selling Price i.e MSP was set according to which traders cant buy products from farmers beyond the MSP and a concept of trading licenses was introduced in order for any trader to show up in these markets. This concept helped farmers to get rid of the various forms of exploitations and contributed greatly to the green revolution of India.
Now lets come back to September of 2020, the government has set up three ordinances according to which farmers can freely sell their products out of these APMCs and the traders won’t have to pay any taxes in this mandis as they used to pay in APMCs which naturally attracted many buyers to buy agricultural products outside APMCs. But the problem is in mandis outside APMCs, there is no MSP and other regulations set up which fears the farmers of getting into exploitations and loans as their predecessors faced back in 1950s.
Do check out the video below to know more :