Indian Farm Reforms 2020 Part – 2

Indian Farm Reforms 2020 Part – 2

Part – 1 मैं हमने Indian agricultural system, APMC aur MSP ke बारे में समझा l Iss article me ham दो cases को study करेंगे जहां हम farmers ke example देखेंगे और system ke बारे में और detail se समझेंगे l

Case 1

In 2010, Binod नाम का ek farmer 👨‍🌾 jisne aapne hard work से wheat 🌾 ko produce करता है l जहां some of his crops is destroyed due to heavy rain ⛈️. Let’s understand, he produced 150 quintal wheat and 15 quintal wheat is destroyed. His cost to produce wheat per quintal is 550. He went to APMC to sell his wheat. In APMC he saw MSP for wheat is 1,170 and he is happy because he got the price with profit that he deserves as per his efforts.
The situation in 2010 in the case of Binod: –
Cost per quintal = ₹550
Total Cost 🚜 = ₹550 * 165 quintals = ₹88,000
MSP per quintal = ₹1,170
Binod sold wheat on = ₹1,170 * 165 quintals = ₹1,93,050
APMC Tax 0.5% = 965
Net Profit of Binod = ₹1,93,050 – ₹88,000 – ₹965 = ₹1,04,085
And here Binod 👨‍🌾 is happy because he got his consideration as per his efforts.

Case 2

In 2023, Binod जो अपने hard work se 250 quintal wheat ko produce करता है But due to heavy rain ⛈️ in the state his crops 🌾 get destroyed and he successfully able to grow only 100 quintal of wheat. In 2020, the Government of India passed 3 bills that allow private sectors to buy agricultural commodities without tax as well as no assurance regarding MSP. Binod की wife ko Heart Cancer हो गया (due to using the traditional way of making food on ‘Chulha’) Issilye Binod ki financial condition काफी weak हो गई l Binod ko paiso ki urgent need थी so he went to the private buyer ‘Deshhit Mandi’.
Deshhit Mandi gets a chance to earn profit and offer 900 per quintal (APMC’s MSP is 1,150). Binod has no chance other than to sell it for 900 per quintal. Conclusion of this case is: –
MSP = ₹1150
The price offered by Dehshit Mandi = ₹900
Tax by government = 0%
Binod sold wheat on = ₹900 * 100 quintals = ₹90000
If Binod sold wheat at APMC = ₹1150 * 100 quintal = ₹115000

Here we saw, Binod is facing loss because the government allows outsiders (private entities) to buy agricultural commodities. In this law, the government doesn’t mention MSP for private entities which will increase the chances of exploitation of farmers like Binod.

-j₹k

Click here to Read – Indian Farm Reforms 2020 Part – 3