Since March, 2020, there has been a consistent rise in the number of COVID-19 cases in India.  As of May 18, 2020, there were 96,169 confirmed cases of the infectious disease, of which 3,029 persons died.  To contain the spread of COVID-19 in India, the central government imposed a nation-wide lockdown on March 24 till April 14, now extended till May 31.  To ensure continued supply of agriculture produce during the lockdown and control the spread of the disease, some states have amended their respective Agriculture Produce Marketing Committee (APMC) laws.  This blog explains the manner in which agriculture marketing is regulated in India, steps taken by the centre for the agriculture sector during the COVID-19 crisis, and the recent amendments in the APMC laws that are being announced by various states. 

How is agriculture marketing regulated in India?

Agriculture falls under the State List of the Constitution.  Agriculture marketing in most states is regulated by APMCs established by state governments under the respective APMC Acts.  The APMCs provide infrastructure for marketing of agricultural produce, regulate sale of such produce and collect market fees from such sale, and regulate competition in agricultural marketing.  In 2017, the central government released the model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017 to provide states with a template to enact new legislation and bring comprehensive market reforms in the agriculture sector.  The 2017 model Act aims to allow free competition, promote transparency, unify fragmented markets and facilitate flow of commodities, and encourage operation of multiple marketing channels.  In November 2019, the 15th Finance Commission (Chair: Mr N. K. Singh) in its report provided that states which enact and implement all features of this Model Act will be eligible for certain financial incentives.

What steps were taken by the central government in light of COVID-19?

On April 2, the Ministry of Agriculture and Farmers’ Welfare launched new features of the electronic-National Agriculture Market (e-NAM) platform to strengthen agriculture marketing by reducing the need of farmers to physically come to wholesale mandis for selling their harvested produce.  The e-NAM platform provides for contactless remote bidding and mobile-based any time payment for which traders do not need to either visit mandis or banks.  This helps in ensuring social distancing and safety in the APMC markets to prevent the spread of COVID-19.  

On April 4, 2020, the Ministry of Agriculture and Farmers’ Welfare issued an advisory to states for limiting the regulation under their APMC Acts.  The advisory called for facilitating direct marketing of agricultural produce, enabling direct purchase of the produce from farmers, farmer producer organisations, cooperatives by bulk buyers, big retailers, and processors. 

On May 15, 2020 the Union Finance Minister announced certain reforms for the agriculture sector of the country to reduce the impact of COVID-19 and the lockdown.  Some of the major reforms include: (i) formulating a central law to ensure adequate choices to farmers to sell agricultural produce at attractive prices, barrier free inter-state trade, and framework for e-trading of agricultural produce, (ii) amending the Essential Commodities Act, 1955 to enable better price realisation for agricultural produce such as all cereals, pulses, oilseeds, onions, and potatoes, and (iii) creating a facilitative legal framework for contract farming, to enable farmers to engage directly with processors, large retailers, and exporters.

Which states have made changes to agriculture marketing laws?

The Uttar Pradesh Cabinet has approved an ordinance, and Madhya PradeshGujarat, and Karnataka have promulgated ordinances, to relax regulatory aspects of their APMC laws.  These Ordinances are summarised below:

Madhya Pradesh 

On May 1, 2020, the Madhya Pradesh government promulgated the Madhya Pradesh Krishi Upaj Mandi (Amendment) Ordinance, 2020.  The Ordinance amends the Madhya Pradesh Krishi Upaj Mandi Act, 1972.  The 1972 Act regulates the establishment of an agricultural market and marketing of notified agricultural produce.  The following amendments have been made under the Ordinance:

  • Market yards:   The 1972 Act provides that in every market area, there should be a market yard, with one or more sub-market yards, for conducting all marketing activities such as assembling, grading, storage, sale, and purchase of the produce.  The Ordinance removes this provision and specifies that in the state, there may be: (i) a principal market yard and sub-market yard managed by the APMC, (ii) a private market yard managed by a person holding a license (granted by the Director of Agriculture Marketing), and (iii) electronic trading platforms (where trading of notified produce is done electronically through internet).  

  • Director of Agricultural Marketing: The Ordinance provides for the appointment of the Director of Agricultural Marketing by the state government.  The Director will be responsible for regulating: (i) trading and connected activities for the notified agricultural produce, (ii) private market yards, and (iii) electronic trading platforms.   He may also grant licenses for these activities.  

  • Market fee: The Ordinance also provides that market fee for trading under licenses granted by the Director of Agricultural Marketing will be levied as prescribed by the state government.

Gujarat

On May 6, 2020, the Gujarat government promulgated the Gujarat Agricultural Produce Markets (Amendment) Ordinance, 2020.  The Ordinance amends the Gujarat Agricultural Produce Markets Act, 1963.  The amended Act is called the Gujarat Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 1963.  Key amendments made under the Ordinance are as follows:

  • Regulation of livestock market:   The Ordinance brings the regulation of marketing of livestock such as cow, buffalo, bullock, bull, and fish under the ambit of this Act. 

  • Unified market area:   The Ordinance provides that the state government may declare the whole state as one unified market area through a notification.  This can be done with the purpose of regulation of marketing of notified agricultural produce.

  • Unified single licence:  The Ordinance provides for the grant of a single unified trading license.  The license will be valid across the state in any market area.  Existing trade licenses must be converted into the single unified licenses within six months from the date of commencement of the Ordinance.  

  • Markets for conducting trading:  The Ordinance allows the state government to notify any place in the market area as the principal market yard, sub-market yard, market sub-yard, or farmer consumer market yard for the regulation of marketing of notified agricultural produce.  Certain places in the market area can also be declared a private market yard, a private market sub-yard, or a private farmer-consumer market yard.  The Ordinance adds that the notified agricultural produce may also be sold at other places to a licence holder, if especially permitted by a market committee.

  • Market sub-yards:   The Ordinance provides that a market area should have market-sub yards (warehouse, storage towers, cold storage enclosure buildings or such other structure or place or locality).  Further, it also provides that the owner of a warehouse, silo, cold storage or such other structure or place notified as market sub-yard, may collect a market fee on notified agricultural produce.  He may also collect user charge on de-notified agricultural produce transacted at the market sub-yard.  The rate of the fees should not exceed the rates notified by the state government.  However, no market fee shall be collected from farmers.

  • E-trading:  The Ordinance provides for the establishment and promotion of electronic trading (e-trading) platforms.  It provides that a license granted by the Director of Agricultural Marketing is necessary to establish an e-trading platform.   Further, it provides that applications on the e-trading platform shall be inter-operable with other e-platforms as per specifications and standards laid down by the Director.  This has been done to evolve a unified National Agricultural Market and integrate various e-platforms.

Karnataka

On May 16, the Karnataka government promulgated the Karnataka Agricultural Produce Marketing (Regulation and Development) (Amendment) Ordinance, 2020.  The Ordinance amends the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966.  The 1966 Act regulates the buying and selling and the establishment of markets for agricultural produce throughout the state.  Key amendments made under the Ordinance are as follows:

  • Markets for agricultural produce:  The 1966 Act provides that no place except the market yard, market sub-yard, sub-market yard, private market yard, or farmer - consumer market yard shall be used for the trade of notified agricultural produce.  The Ordinance substitutes this to provide that the market committee shall regulate the marketing of notified agricultural produce in the market yards, market sub-yards and submarket yards.  Thus, the Act no longer bars any place for the trade of notified agricultural produce.

  • Penalty:  The 1966 Act provides that whoever uses any place for purchase or sale of notified agricultural produce can be punished with imprisonment of up to six months, or a fine of up to Rs 5,000, or both.  The Ordinance removes this penalty provision from the Act.

Uttar Pradesh

On May 6, the Uttar Pradesh Cabinet approved the Uttar Pradesh Krishi Utpadan Mandi (Amendment) Ordinance, 2020.  According to the state’s press release, the Uttar Pradesh government has decided to remove 46 fruits and vegetables from the ambit of the Uttar Pradesh Krishi Utpadan Mandi Act, 1964.   The 1964 Act provides for the regulation of sale and purchase of notified agricultural produce and for the establishment and control of agricultural markets in Uttar Pradesh.  

  • Certain fruits and vegetables exempted from the provisions of the Act:  These fruits and vegetables include mango, apple, carrot, banana, and ladies’ finger.  The proposed amendment aims to facilitate the purchase of these products directly from farmers from their farms.  Farmers will be allowed to sell these products at the APMC mandis as well, where they will not be charged the mandi fee.  Only the user charge will be levied as prescribed by the state government.   As per the state government, this will entail a loss of revenue of approximately Rs 125 crore per year to the APMCs.

  • License:   Specific licenses can be procured to carry on trade at places other than APMC markets.  This will encourage the treatment of warehouses, silos, and cold storages as mandis.  The owners or managers of such establishments can charge the user fee for managing the mandi.   Further, unified license can be used to trade at village level.  

Parliament sessions are usually held thrice a year: once in February for the Budget Session, once around July or August for the Monsoon Session, and once in November for the Winter Session.  This year, the government is yet to announce the dates for the Winter Session.  While there has been uncertainty around whether Parliament will meet, ministers in the government have indicated that the Session will be held soon.[1]

The practice of allowing the government to convene Parliament differs from those followed in other countries.  Some of these countries have a limited role for the government in summoning the legislature, because in a parliamentary democracy the executive is accountable to Parliament.  Allowing the government to call the Parliament to meet could be in conflict with this principle.  While we wait for the government to announce the dates for the Winter Session, this post looks at the relationship between Parliament and the government, recommendations made over the years on improving some parliamentary customs, and discusses certain practices followed by other countries.

What is the role of Parliament in a democracy?

The Constitution provides for the legislature to make laws, the government to implement laws, and the courts to interpret and enforce these laws.  While the judiciary is independent from the other two branches, the government is formed with the support of a majority of members in the legislature.  Therefore, the government is collectively responsible to Parliament for its actions.  This implies that Parliament (i.e. Lok Sabha and Rajya Sabha) can hold the government accountable for its decisions, and scrutinise its functioning.  This may be done using various methods including, during debates on Bills or issues on the floor of Parliament, by posing questions to ministers during Question Hour, and in parliamentary committees.

Who convenes Parliament?

Parliament must be convened by the President at least once in every six months.  Since the President acts on the advice of the central government, the duration of the session is decided by the government.

Given the legislature’s role in keeping the executive accountable for its actions, one argument is that the government should not have the power to convene Parliament.  Instead, Parliament should convene itself, if a certain number of MPs agree, so that it can effectively exercise its oversight functions and address issues without delay.  Some countries such as the United Kingdom and Australia release an annual calendar with the sitting dates at the beginning of the year.

How regularly has Parliament been meeting over the years?

Over the years, there has been a decline in the sitting days of Parliament.  While Lok Sabha met for an average of 130 days in a year during the 1950s, these sittings came down to 70 days in the 2000s.  Lesser number of sittings indicates that Parliament was able to transact less business compared to previous years.  To address this, the National Commission to Review the Working of the Constitution has recommended that Lok Sabha should have at least 120 sittings in a year, while Rajya Sabha should have 100 sittings.[2] Sitting days of Parliament

The Constituent Assembly, while drafting the Constitution had debated the power that should be given to Parliament with regard to convening itself.  Mr. K. T. Shah, a member of the Assembly, had suggested that in case the President or the Prime Minister are unable or unwilling to call for a Parliament session, the power to convene the Houses should be given to the presiding officers of those Houses (i.e., the Chairman of Rajya Sabha and the Speaker of Lok Sabha).  In addition, he had also suggested that Parliament should itself regulate its procedure, sittings and timings.[3]

How does Parliament hold the government accountable?

One of the forums of holding the government accountable for its actions is the Question Hour.  During Question Hour, MPs may pose questions to ministers related to the implementation of laws and policies by the government.questions answered

In the 16th Lok Sabha, question hour has functioned in Lok Sabha for 77% of the scheduled time, while in Rajya Sabha it has functioned for 47%.  A lower rate of functioning reflects time lost due to disruptions which reduces the number of questions that may be answered orally.  While Parliament may sit for extra hours to transact other business, time lost during Question Hour is not made up.  Consequently, this time lost indicates a lost opportunity to hold the government accountable for its actions.

Further, there is no mechanism currently for answering questions which require inter-ministerial expertise or relate to broader government policy.  Since the Prime Minister does not answer questions other than the ones pertaining to his ministries, such questions may either not get adequately addressed or remain unanswered.  In countries such as the UK, the Prime Minister’s Question Time is conducted on a weekly basis.  During the 30 minutes the Prime Minister answers questions posed by various MPs.  These questions relate to broader government policies, engagements, and issues affecting the country.[4]

How is public opinion reflected in Parliament?

MPs may raise issues of public importance in Parliament, and examine the government’s response to problems being faced by citizens through: (i) a debate, which entails a reply by the concerned minister, or (ii) a motion which entails a vote.  The time allocated for discussing some of these debates or Bills is determined by the Business Advisory Committee of the House, consisting of members from both the ruling and opposition parties.

Using these methods, MPs may discuss important matters, policies, and topical issues.  The concerned minister while replying to the debate may make assurances to the House regarding steps that will be taken to address the situation.  As of August 2017, 50% of the assurances made in the 16th Lok Sabha have been implemented.[5] Motions

Alternatively, MPs may move a motion for: (i) discussing important issues (such as inflation, drought, and corruption), (ii) adjournment of business in a House in order to express displeasure over a government policy, or (iii) expressing no confidence in the government leading to its resignation.  The 16thLok Sabha has only discussed one adjournment motion so far.

To improve government accountability in Parliament, the opposition in some countries such as the UK, Canada, and Australia forms a shadow cabinet.[6],[7]  Under such a system, opposition MPs track a certain portfolio, scrutinise its performance and suggest alternate programs.  This allows for detailed tracking and scrutiny of ministries, and assists MPs in making constructive suggestions.  Some of these countries also provide for days when the opposition parties decide the agenda for Parliament.

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[1] Sonia Gandhi accuses of Modi govt ‘sabotaging’ Parliament Winter session, Arun Jaitley rejects charge’, The Indian Express, November 20, 2017, http://indianexpress.com/article/india/jaitley-refutes-sonia-gandhis-charge-of-sabotaging-parliament-session-says-congress-too-had-delayed-sitting-4946482/; ‘Congress also rescheduled Parliament sessions: Arun Jaitley hits back at Sonia Gandhi’, The Times of India, November 20, 2017, https://timesofindia.indiatimes.com/india/congress-also-rescheduled-parliament-sessions-arun-jaitley-hits-back-at-sonia-gandhi/articleshow/61726787.cms.

[2]  Parliament and State Legislatures, Chapter 5, National Commission to Review the Working of the Constitution, March 31, 2002, http://lawmin.nic.in/ncrwc/finalreport/v1ch5.htm.

[3] Constituent Assembly Debates, May 18, 1949.

[4]  Prime Minister’s Question Time, Parliament of the United Kingdom, http://www.parliament.uk/about/how/business/questions/.

[5]  Lok Sabha and Session Wise Report of Assurances in Lok Sabha, Ministry of Parliamentary Affairs, http://www.mpa.gov.in/mpa/print_summary_lses_ls.aspx.

[6]  Her Majesty’s Official Opposition, Parliament of the United Kingdom, http://www.parliament.uk/mps-lords-and-offices/government-and-opposition1/opposition-holding/.

[7]  Current Shadow Ministry List, Parliament of Australia, http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/Parliam