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Question of Federalism on Farm Acts

Question of Federalism on Farm Acts
 

Context:

Recently, the President of India gave assent to the controversial farm Bills passed by Parliament. There are protests going on in the country against the bill.

Arguments in favour of the Bills:

  • According to the government, the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 liberates farmers by giving them the freedom to sell anywhere.
  • The government claims these Acts will transform Indian agriculture and attract private investment.
  • The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020, provides for contract farming, under which farmers will produce crops as per contracts with corporate investors for a mutually agreed remuneration.

Arguments against Farm Bills:

  • The farmers fear that powerful investors would bind them to unfavourable contracts drafted by big corporate law firms.
  • The liability clauses in the contract would be beyond the understanding of poor farmers in most cases.
  • The opposition believes that it would lead to the corporatisation of agriculture, with the market, along with the monsoon, becoming an unpredictable determinant of the destiny of farmers.

Question of Federalism on Farm Acts:

  • Federalism essentially means both the Centre and states have the freedom to operate in their allotted spheres of power, in coordination with each other.
  • As per the Union of India v H.S.Dhillon (1972), the constitutionality of parliamentary laws can be challenged only on two grounds i.e. the subject is in the State List or that it violates fundamental rights.
  • The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020, and The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 do not mention the constitutional provisions under which Parliament has the power to legislate on the subjects covered.

The Seventh Schedule of the Constitution:

  • It contains three lists that distribute power between the Centre and states:
    • There are 97 subjects in the Union List, on which Parliament has exclusive power to legislate (Article 246);
    • The State List has 66 items on which states alone can legislate;
    • The Concurrent List has 47 subjects on which both the Centre and states can legislate; and
    • In case of a conflict, the law made by Parliament prevails (Article 254).
    • The Parliament can legislate on an item in the State List under certain specific circumstances laid down in the Constitution.

Source: Indian Express