The three controversial farm laws announced by the Modi Government have agitated a section of farmers, especially from Punjab who are opposing the ‘contract farm legislations’ even though the rich agricultural State had enacted the same in 2013.
As per a report submitted to the Ministry of Agriculture to convince the protesting farmers to call off their strike, the Punjab Government’s contract farming has given employment to thousands and benefitted them after a world popular cola drink maker, PepsiCo was one of the first companies to make the soft drinks after reaping under contract farming and is still engaged in contract farming in the state.
The cola manufacturer is not the only company engaged in contract farming, but there are many companies such as LT Food, EBRO Food, and Sun Star Overseas that have been doing contract farming in Punjab.
The government has repeatedly claimed that the contract farming law is going to change the fortunes of the farmers, but opposition parties and farmer organizations claim that this farm law will make the corporates dominate the farming and farmers will end up becoming just laborers.
“If the contract farming was so bad, why would telecom giant Bharti Airtel’s ‘Fieldfresh’ and other companies like ITC, Patanjali, Dabur, Godrej Agrovet including have grown in the agriculture sector. Contrary to farmers’ fears and beliefs, in reality, not a single company of Mukesh Ambani’s Reliance Group is directly or indirectly has got in contract farming,” explained a senior Agriculture Ministry official about the report.
Contract farming has been in India for the past 30 years and is being cultivated in millions of hectares including in Gujarat, Maharashtra, and many southern Indian states. And factually, not a single farmer in the country has lost his land to any corporate or private company, instead, the income of farmers who went for contract farming has augmented.
One of the greatest benefits of contract farming is the corporates or private companies cover the losses over risks like poor rain or any other issues which are likely to benefit small farmers more.
“The government has agreed to include suggestions of farmers in the new farm laws and if possible, will also amend the laws if at all needed to benefit the country’s farmers. Now, the government is working on a mechanism to connect small farmers to contract farming so that their risks are absorbed by corporates under contract farming,” said the report.