farmers

COVID 19Hot Off The PressNews

Live Updates to Follow

  • Focal Point: Agriculture
  • One lakh Crore for — Strengthening Farming Infrastructure; Cold Storage, Grain Storage, etc.; Funding Agriculture Infrastructure Projects at farm-gate & aggregate points.
  • Rs 10, 000 Crore for boosting local products for Global sale;Vocal for Local with Global outreach; Formalisation of Micro Food Enterprises
  • Rs 20,000 crores for Fishermen through Pradhan Mantri Sampada Yojana
  • 100% vaccination of livestock;National Animal Disease Control Programme launched
  • Animal  Husbandry infrastructure fund — Rs, 15,000 Crores
  • Rs 4000 Crores to promote herbal cultivation in India that aims to cover 10 lakh hectare under herbal cultivation in 2 years; Corridor of medical plants to come up across banks of Ganga
  • Rs 500 Crores for Beekeeping initiatives
  • 500 crore for improving supply chain of fruits, vegetables, etc.;Govt. extends Operation Greens from Tomatoes, Onion and Potatoes to all fruits and vegetables
  • Amendment to Essential Commodities Act
  • Farmers & Farmers getting adequate choice to sell their produce at attractive price: Central Law to be introduced;
  • Law to implement agriculture marketing reforms to provide marketing choices to farmers; law will provide adequate choices to farmer to sell produce attractive price

Refer to the past two days live updates below:

Read below the reliefs offered by the Finance Minister, with the focus being MSMEs:

LIVE UPDATES [14-05-2020] 

  • Focal point: Liquidity, Labour, Law and Land.
  • 6 Major steps for MSMEs
  • Collateral free Automatic Loans upto Rs 3 lakh Crores
  • 100 % credit guarantee
  • Additional Funds for MSME revival
  • Loans to be given till October 31st
  • Rupees 20 Crore for stressed MSMEs
  • 50,000 Crore equity to be infused for viable and potential MSMEs
  • New Definition of MSMEs — Investment can be upto 1 Cr and turnover upto 5 Crore
  • Global tender to be allowed upto Rs 20 Crores
  • Other interventions for MSMEs
  • Rs 2500 crores EPF support for businesses and Workers for 3 months
  • EPF contribution reduced for Business and Workers for 3 months — Rs 6750 Crores
  • Rs 30,000 crores liquidity facility for NBFC/HCs/MFIs
  • Rs 45,000 Crores Partial Credit Guarantee Scheme 2.0 for NBFC
  • Rs 90,000 CR liquidity injection for DISCOMs
  • Relief to contractors
  • Extension of registration and completion date of real estate projects under RERA; No individual applications needed; Suo Moto be done; Registered projects expiring on or after 25th March
  • Rs 50,000 crores Liquidity through TDS/TCS reductions till March 2021
  • Tax filing due date extended to 30th November, 2020
  • Pending refunds to charitable trusts and non-corporate businesses & professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately.
  • Due date of all income tax return for FY2019-20 extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October, 2020.
  • Date of Assessments getting barred on 30th September, 2020 extended to 31st December, 2020 and those getting barred on 31st March, 2021 will be extended to 30th September, 2021.
  • Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December, 2020

LIVE UPDATES [15-05-2020]:

  • FOCUS: Migrant Workers, Street vendors, Small Farmer, Self Employed, Traders, etc.
  • 9 Steps will be announced.
  • 14.62 crore person-days of work generated till 13th May 2020
  • 10,000 crore actual expenditure till date
  • National Floor Wage to be introduced
  • Re-skilling of workers
  • Universal minimum wages

Reliefs

  • Free food grain supply to all migrants for next 2 months [For non-card holders: 5 kgs of wheat or rice or 1 kg of chana]; State Governments to implement, Centre to borne costs
  • One Nation One Ration card to be implemented within 3 months
  • Affordable rented accommodation for migrants; Rental Housing Scheme;Migrant Workers / Urban Poor to have Affordable Rental Housing Complexes (ARHC): Government will launch a scheme under
  • Mudra Shishu Loans: Government of India will provide Interest subvention of 2% for prompt  MUDRA– Shishu Loans payees for a period of 12 months; Relief of Rs 1500 cr to MUDRA-Shishu loanees
  • Special Credit facility for Street Vendors: Easy access to credit; Rs 5000 cr Special Credit Facility
  • Middle Income Group with upto 6 to 18 lakh income group: Credit link subsidy scheme for housing to be extended till March 2021; 2.5 lakhs middle income families to benefit during 2020-21
  • To create job opportunities for Tribals /Adivasis-Plans worth Rs 6000 crores to be approved shortly under Compensatory Afforestation Management & Planning Authority (CAMPA) Funds
  • Rs 30,000 Crore additional emergency working capital fund through NABARD
  • Kisan Credit Card: 2 lakh Crore concessional credit for farmers; 2 lakh crore Concessional credit boost to 2.5 crore farmers through KisanCreditCards; Fishermen and Animal Husbandry farmers will also be included in this drive
Case BriefsSupreme Court

Supreme Court: Alarmed by the growing trend amongst seed companies of engaging in frivolous litigation with farmers, virtually defeating the purpose of speedy redressal envisaged the Consumer Protection Act, 1986, the bench of MM Shantanagoudar and R. Subhash Reddy, JJ has said that the summary redressal available to the farmer under the 1986 Act may go a small but crucial way to provide instant relief in a sector which is already facing stress on several counts.

The Court was hearing a case where a Seed Company was contesting the farmers’ claims before consumer fora on the preliminary point of maintainability right up to the Supreme Court, compelling small agriculturists such as the Respondents to spend unnecessarily on litigation in order to secure relief for themselves, amounting to a sum which probably exceeds even the quantum of relief claimed. Rebuking the company, the Court said,

“This tendency to resist even the smallest of claims on any ground possible, by exploiting the relatively greater capacity of seed companies to litigate for long periods of time, amounts to little more than harassment of agriculturists.”

Discussing the serious issue of Farmer suicides, the Court observed that most Indian farmers own only small landholdings, which require expensive inputs such as irrigation, electricity, seeds, fertilizer, and pesticide, but do not generate sufficient output to cover the costs of the same. It further said that when agriculturists with such small landholdings do enter into agreements to grow crops on terms dictated by seed companies, it is in the hope of earning some profit that would offset the cost of their inputs and generate some income for the household.

“the success or failure of the crop would make or break the income of the farmer for the entire season. This can result in situations where small and medium scale farmers find themselves trapped in contracts where they buy expensive seeds which turn out to be defective, resulting in a failed season and severe financial hardship. The problem of indebtedness further worsens the plight of the farmer, and, all too often, manifests in the tragedy of suicide.”

The Court, hence, said that though the farmers faced with grievances against seed companies, may, in suitable cases, opt for other remedies such as a civil suit, relief under the Seeds Act, 1966, but excluding such farmers from the purview of the 1986 Act would be a complete mockery of the object and purpose of the statute. The Court, hence, held that the respondent Farmer in the case at hand was a “consumer” under the 1986 Act.

[Nandan Biomatrix Ltd. S. Ambika Devi, 2020 SCC OnLine SC 309, decided on 06.03.2020]

Case BriefsTribunals/Commissions/Regulatory Bodies

National Consumer Disputes Redressal Commission (NCDRC): V.K Jain (Presiding Member), J. allowed a revision petition filed by a farmer seeking enhancement of compensation provided for loss of his crops.

Petitioners herein were farmers who had bought seeds from the respondent society. The resultant crops were not up to the mark even though the petitioners had followed proper instructions and procedures and had taken due care and precautions required for the said crop. Aggrieved from the financial loss incurred, the petitioners approached the District Forum but their complaints were dismissed by the forum. Consequently, they approached the State Commission which allowed their appeals and directed the respondents to pay compensation to the petitioners. However, since the petitioners were not satisfied with the quantum of the compensation awarded to them by the State Commission, they approached the Commission by way of these revision petitions. The petitioners also submitted applications seeking condonation of delay in filing the revision petitions.

The Court condoned the delay considering the fact that the petitioners were poor farmers who were not awarded even the minimum price of the crop while assessing the compensation for the loss of the crop.

The Court, calculating the compensation for the loss of the crop at Rs 17,000 per quintal, awarded the petitioner, Vinod Kumar, Rs 3,40,000 and the petitioner, Vijay Kumar, Rs 1,02,000 in addition to compensation for the mental harassment and the cost of litigation awarded by the State Commission. The balance payment to the complainants was to be made within eight weeks from the date of the judgment, failing which it would carry interest at 9 per cent per annum from the date of institution of the complaint.[Vijay Kumar v. IFFCO, 2019 SCC OnLine NCDRC 78, decided on 17-05-2019]

Cabinet DecisionsLegislation Updates

The Union Cabinet, chaired by the Prime Minister Narendra Modi approved a new Central Sector Scheme, a historic decision that will empower farmers across India. This is a path-breaking scheme that will provide pension cover to our industrious farmers who toil day and night to keep our nation fed. It is also for the first time since independence that such a pension coverage has been envisioned for farmers.

It is estimated that 5 crore small and marginal farmers will benefit in the first three years itself.  The Central Government would spend Rs. 10774.50 crore for a period of 3 years towards its contribution (matching share) for providing social security cover as envisaged under the scheme.

The salient features of this scheme are:

A voluntary and contributory pension scheme for all Small and Marginal Farmers (SMF) across the country.

Entry age of 18 to 40 years with a provision of minimum fixed pension of Rs 3,000 on attaining the age of 60 years.

For example, a beneficiary farmer is required to contribute Rs 100/ – per month at median entry age of 29 years.  The Central Government shall also contribute to the Pension Fund an equal amount as contributed by the eligible farmer.

After the subscriber’s death, while receiving pension, the spouse of the SMF beneficiary shall be entitled to receive 50% of the pension received by the beneficiary as family pension, provided he/she is not already an SMF beneficiary of the Scheme.  If, the death of the subscriber happens during the period of contribution, the spouse shall have the option of continuing the Scheme by paying regular contribution.

Synergy between schemes, prosperity for farmers:

An interesting feature of the Scheme is that the farmers can opt to allow his/her monthly contribution to the Scheme to be made from the benefits drawn from the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme directly. Alternatively, a farmer can pay his monthly contribution by registering through Common Service Centres (CSCs) under MeitY.

Fulfilling core promises, empowering the agriculture sector:

For seventy years after Independence, such coverage for farmers was never thought. It was in the run-up to the 2019 Parliamentary elections that PM Narendra Modi first mooted such an idea, which gradually found resonance across the length and breadth of India. Such a plan was mentioned in the BJP manifesto and in the first Cabinet meeting after the formation of a new Government, it has become a reality.

[Dated: 31-05-2019]

Cabinet

Case BriefsHigh Courts

Patna High Court: A Division Bench comprising of Mukesh R. Shah, CJ. and Ashutosh Kumar, J. while hearing a petition seeking mandamus against State for implementing organic farming policy, observed that efforts on the same were underway and dismissed the petition holding that the nature of petitioner’s prayers were that of a roving enquiry.

The instant public interest petition had been filed seeking a mandamus directing the respondent to encourage farmers of the State to opt for organic farming in order to save productivity of the earth and environment. Further, the petitioner also sought the details of the expenditure incurred for encouraging organic farming in the State as well as of the allocated subsidy amount for organic farming disbursed in various financial years since 2007-08.

The court noted that the averments in writ petition admitted that the State Government had taken a policy decision of encouraging farmers for undertaking organic farming, and for the aforesaid purpose, budgetary limits had been fixed and subsidies had been offered. The petitioners had not raised any allegation of siphoning of funds or embezzlement of public money. Thus, the prayers made in the writ petition were more in the nature of fishing and roving enquiry from the respondents, which is impermissible in public interest litigation.

The respondent’s submission before the court was that even though organic farming, being a labour-intensive exercise, is much more expensive owing to production cost being higher and less yield being produced per hectare; but still the State was using budgetary allocation to make the farmers aware of the advantages of using/ manufacturing vermi-compost and green manure. Setting up of gobar gas units was being encouraged by providing subsidy to the entrepreneurs for the said purpose.

Further, the State also submitted list programmes which had been initiated and the budgetary allocation as well as expenses incurred on “Organic Corridor Scheme” project launched in the year 2017-18. As a part of first phase, organic corridors had been developed in villages adjoining National/State highways running by the side of Ganga river. The process for certification of fields after elimination of chemical residue was afoot. Lastly, the State submitted that it was planning to implement the scheme at a larger scale by 2022; and the entire process of converting agricultural operations to organic method being a long drawn process, it would take a while before the results are visible.

Having regard to the detailed submissions made by the State and vague prayers in the petition, the High Court observed that the State was making efforts to achieve the objective of organic farming by 2022 and expecting results in such a short time would be chimerical. On that observation, the writ petition was dismissed. [Bihar Rajya Kishan Sabha v State of Bihar,2018 SCC OnLine Pat 1808, decided on 09-10-2018]

Case BriefsTribunals/Commissions/Regulatory Bodies

National Consumer Disputes Redressal Commission (NCDRC): A Division Bench comprising of R.K. Agrawal, J. and M. Shreesha, Member dismissed the revision petition filed against the order of Maharashtra State Consumer Disputes Redressal Commission confirming payment of compensation to the respondent/complainant – farmers for supply of inferior quality of seeds by the petitioner manufacturing company.

The respondent had purchased onion seeds from the petitioners and sown the same in their fields. When even after due care, the growth of crop was unsatisfactory, they informed about the same to the petitioner and lodged a formal complaint. An enquiry committee visited the fields of the respondent and made a detailed inspection report observing that the crop failure was on account of inferior quality of seeds. Despite sending a notice to the petitioner, the respondent received no response, constraining him to approach the District Forum seeking direction to for payment of expenses incurred towards the failure of crop along with compensation and costs. After appreciating the evidence on record, District Forum ordered payment of expenses along with compensation and costs. The said order was challenged by the petitioner in State Commission, which confirmed the order of District Forum. It is in this factual background, that the instant revision petition was filed by the petitioner.

Primary contention of revision petitioners was that the State Commission had erred in not appreciating that germination of seeds depends upon environmental factors and crop management practices such as climate, moisture content, temperature, usage of fertilizers and water supply; and that no samples of seeds were sent by the respondent for analysis as mandated by Section 13(1)(c) of the Consumer Protection Act, 1986.

The Commission relied on judgment of the Apex Court in National Seeds Cooperation Ltd. v M. Madhusudhan Reddy, (2012) 2 SCC 506 and Maharashtra Hybrid Seeds Co. Ltd. v Alavalapati Chandra Reddy, (1998) 6 SCC 738, to state that the onus to prove that the seeds manufactured are of good quality lies on the manufacturer as the farmers are not expected to store some of the seeds for future testing. Moreover, as per the Seeds Act, 1966 manufacturer is required to keep a small sample of each batch of seeds for a minimum period of time depending upon the nature of the seeds. Therefore, there was no reason for the petitioner to not have sent the seeds to a laboratory for testing as per Section 13(1)(c) of the Consumer Protection Act.

Apart from being devoid of merits, the revision petition was also held to be barred by limitation as the same was filed with a delay of 188 days and there was no explanation as to the reason for such delay. As such, the petition was dismissed on both delay as well as merits. [National Horticulture Research & Development Foundation v. Sahebrao Jibhau Deware, Revision Petition No. 279 of 2018, decided on 28-09-2018]

Case BriefsTribunals/Commissions/Regulatory Bodies

National Human Rights Commission: NHRC has taken suo motu cognizance of media reports that the Government of Maharashtra in the State Assembly has informed that 639 farmers committed suicide in the State between March and May, 2018. The reported reasons were crop failure, debt and inability to repay bank loans.

The Commission has issued notices to the Secretary, Union Ministry of Agriculture and the Chief Secretary, Government of Maharashtra calling for the detailed reports in the matter, specifically mentioning the status of implementation of the schemes for the farmers and relief to the aggrieved families. The response is expected within four weeks. The Union Government is expected to inform the Commission, if they have any specific plan or mechanism in their mind to effectively address the situation.

The Commission has observed that it is not for the first time that such news has come to its notice. It has been receiving complaints regarding the deaths of farmers across the country, including the State of Maharashtra. It has also taken suo motu cognizance of such matters. Committing suicide by the farmers in such a large number is a serious matter as it involves the right to life of the victims. Their families also come under tremendous pressure due to sudden demise of an earning member.

It has further observed that in spite of announcement of several schemes including crop insurance and loan waiver by the Central and State Governments, the forlorn story of poor farmers generally remains the same. The farmers are still choosing to end their lives, understandably, if not being able to cope up with the stress, financial crunch and social stigma due to crop failure. There is a need for the Central and State Governments to see that the schemes announced by them are implemented in true spirit, to achieve the target so that such tragic deaths of the farmers could be averted.

According to the media report, carried on 15th July, 2018, a total 639 farmers had committed suicide in Maharashtra between March 1 and May 31, 2018. The information had been provided by the State Revenue Minister in the State Assembly in response to the questions of the opposition members. They had, reportedly, alleged that all the schemes of the government, including the loan waiver, compensation to farmers in case of loss of crops and minimum support price (MSP) for agricultural goods, had failed, due to which the cases of suicide by the farmers have increased.

The news reports further say that as claimed by the opposition, in the last four years, as many as 13,000 farmers had ended life, of which 1500 committed suicide in the last one year alone. The Revenue Minister had reportedly stated that according to the parameters set by the State Government in October last year for declaration of drought, 8 talukas of Yavatmal, Washim and Jalgaon Districts were declared affected by medium intensity drought in April this year and the compensation along with other assistance has been provided to the affected farmers, accordingly.

It is further mentioned that on 29th May, 2018, the Union Government made amendments in the rules for declaration of drought-hit areas, based on the suggestions made by the states and accordingly the state revenue and forest departments have made the changes on 28.6.2018. The Chief Minister of the State has reportedly stated that appropriate action will be taken to recover the mortgaged lands of the farmers from the respective lenders.

National Human Rights Commission

Case BriefsTribunals/Commissions/Regulatory Bodies

National Consumer Disputes Redressal Commission (NCDRC): A Single Member Bench of NCDRC presided by V.K. Jain, J. upheld the order of State Commission of Haryana granting relief of about Rs two lakh from the Indian Farmers Fertilizers Cooperative Limited (IFFCO, the petitioner) for selling “adulterated” seeds to two farmers who suffered financial losses due to poor yield.

According to the complainant farmers, they were assured by the petitioner that the seeds would give proper yield of 8 to10 quintals per acre. On poor yield, they made complainants to the Agriculture Department which carried out an inspection and found the plants to be of different variety and about 60-70% of the plants with high growth without any fruits. The complainants approached the  District Forum concerned. Their claims were denied by the District Forum but were upheld by the State Commission on appeal. Aggrieved petitioner approached NCRDC.

The emphasis of the petitioner’s arguments was that that despite circular dated 03.01.2002, the Agriculture Department did not associate representative of the Seed Agency and the Scientists of KGK/KVK, HAU in the inspection and the report was prepared at the back of the petitioner without any notice to it.

Commission relied on its own decision in Reliance Life Sciences Pvt. Ltd. v. Umesh Singh Chandan Singh Saddiwal, 2016 SCC OnLine NCDRC 78 and Apex’s Court judgment in Maharashtra Hybrid Seeds Co. Ltd. v. Alavalapati Chandra Reddy, (1998) 6 SCC 738. The Commission held that the failure of the Seed Inspector or for that matter District Level Enquiry Committee to follow the procedure under Seed Act or Rules thereunder cannot be fatal to a complaint, filed under the provisions of the Consumer Protection Act. Hence, such failure cannot lead to dismissal of a Consumer Complaint, if the complainant is otherwise able to prove his case. Commission also noted that there is no way by which a farmer can compel the seed inspector or the committee to follow the said procedure. [IFFCO v. Vijay Kumar, Revision Petition No. 912 of 2018, order dated 14-06-2018]