A massive ‘Delhi Chalo’ protest
The TLDR: Tens of thousands of farmers are marching toward Delhi from Haryana and Punjab to stage a gargantuan protest against the new farming laws. The Union government is using every trick in its book to stop them. We explain why the farmers are angry, and the current state of this faceoff.
Who are these farmers?
The ‘Delhi Chalo’ march was launched by the Samyukt Kisan Morcha (SKM)—an alliance of 31 farmer and trade unions. The aim: to protest the new farming laws passed by the government in September. Most of them are marching from Punjab and Haryana. The plan: To enter Delhi and stage a protest at Jantar Mantar or the Ramlila Maidan.
What the government is worried about: The farmers plan to camp out in Delhi for a very long time. And they have good cause to worry. One farmer on a modified tractor told NDTV:
"We have enough ration for two and a half to three months… There is a 5,000 litre tank, gas stove, inverter, every facility you can think of. We have mattresses, quilts, enough vegetables."
Why are they angry?
They are convinced that the three new laws will destroy their livelihoods. Here’s the simplest explanation of these laws:
- Law #1: allows farmers to sell their harvest outside the government-authorised mandis without paying any State taxes or fees.
- Law #2: allows farmers to directly sell their produce to companies. Or, they can enter into contracts where they agree in advance to plant and harvest crops, and sell their produce at a preset price.
- Law #3: Removes all curbs on storing major foodstuffs, including cereals, pulses, edible oils and onion—except in the case of a major emergency.
Er, none of this sounds bad…
There is nothing wrong with laws on paper—and the government insists that it will benefit farmers who will get a better price for their harvest by removing middlemen. But to understand why farmers are very angry, you have to understand how it’s been working until now. Let’s walk through it quickly.
The farm: Upto 86% of all farmers have small or marginal plots of land. Their harvests are modest and they make very little money—estimated at Rs 6,426 per month in 2014. And their income is precarious—subject to bad weather, cost of seeds, fertilisers etc.
The mandi: They usually sell their harvest at these government-notified mandis—typically to middlemen who then sell the grains and veggies to wholesalers or retailers etc. Note: farmers even today are free to sell outside these mandis.
The price: This lies at the core of the confrontation. For 23 crops, there is something called a Minimum Support Price. If a farmer fails to sell his harvest to the middleman, then the government buys it from him at this price. Think of it as a safety net that ensures the farmer will at least recover his costs.
But as The Hindu notes, the government only purchases paddy, wheat and select pulses in large quantities, and only 6% of farmers actually sell their crops at MSP rates. OTOH, the government buys 85% of wheat and paddy grown in Punjab, and 75% in Haryana at MSP rates. And that explains why these farmers are so angry.
So the government is getting rid of MSP?
No. The government in fact insists that it will not touch MSP. And theoretically, eliminating middlemen and allowing farmers to directly sell to buyers will get them a better price. But here’s the nightmare scenario for these farmers:
- Big companies—think Reliance etc—flood the market and start striking direct deals with a number of farmers.
- Soon these government-run mandis become obsolete—and therefore the MSP will no longer apply.
- Since these farmers are overwhelmingly poor, they will not have the power to negotiate a fair deal with these companies—and will soon find themselves at their mercy.
- And there is some evidence that these worries are real. Due to the lockdown of mandis, many states allowed farmers to directly sell their harvest—but the price they received was 10-15% lower than the MSP.
- But in Haryana and Punjab—where the government is committed to buying the entire harvest from farmers—they were not dependent on direct buyers. And there was no effect on their revenue.
Point to note: The new system can work if the farmers can collectivise to increase their bargaining power. And the government has plans to support such efforts—but many experts argue that they will not be adequate. In any case, these farmers do not have the luxury of waiting for three-year plans to deliver. Since their incomes are so precarious, they are worried about losing their livelihood right now.
Also worried: State governments that make a hefty amount in mandi fees. Example: The Punjab government charges a 6% mandi tax plus a 2.5% fee from the central government—which adds up to an annual revenue of about Rs 35 billion. And naturally, the middlemen—who profit at the expense of farmers—are not happy at all (See: the case of pricey onions)
So what do they want?
Their core MSP demand: it should be made universal, within mandis and outside. All sales to buyers—government or private—cannot fall below this minimum rate. But right now, they insist that all the new laws should be rolled back—so they can go back to business as usual.
Ok, now tell me about the protests
The main confrontation unfolded on the Punjab-Haryana border—as the Haryana government moved to block the farmers from passing through the state to enter Delhi. But despite the use of tear gas and water cannons, more than 10,000 broke through the barricades at eight border points—and are now on the march again. They have also been joined by farmers within Haryana.
Here are five dramatic photos of the confrontation. Or watch this clip of water cannons being used:
Or the moment when the farmers broke through the barricades:
The bottomline: The government has invited the farmers for talks. But the preparations to keep the farmers out of Delhi resemble a military siege. See: the barricading of the border with barbed wire here. Or this insane clip of a national highway being dug up—like a moat against invaders.
Reading list
There’s been so much ink spilled on this subject, we decided to keep this list simple. Indian Express has the best on-ground reporting. The Telegraph has the best overview of the protests. There are multiple explainers on the farm laws. But we found The Hindu to be most useful. Also see: NewsLaundry’s funny video version. Scroll explains why we need to make a greater effort to collectivise farmers. Hindu Business Line has an eye opening report on how middlemen profited from the last great onion price hike.