February 2021

Muga Silk or Moonga Silk – The GI War

Muga Silk is a type of silk, autochthonous to the state of Assam, depicting their culture and heritage. Mekhela Chador, the traditional attire of Assam, even worn by the Bihu Dancers is made from Muga Silk. Owning this traditional attire made of Muga Silk is considered a matter of pride for people in Assam. The use and existence of Muga silk were mentioned in Kautilya’s Arthashastra. The GI law restricts the registered indication to the authorised users of a particular territorial area. The unique natural golden yellow wild silk of Assam was protected under GI since 2006 owning to its importance in the state and its mention as one of the finest silks. But has this protection been sufficient to protect against counterfeit products or fulfil the very purpose of GI?

The Geographical Indications of Goods (Registration and Protection) Act, 1999 provides the authorised user exclusive right to use the product for which the GI is registered[1]. Any other entity beyond the authorised user, using the same will result in infringement of law. Muga silk often faces tough competition from a type of silk known as Moonga Silk, sold in the markets of Delhi, Bihar, Jharkhand and UP. Moonga silk is further advertised using pictures of Muga Silk[2] and misguides the target audience in believing Muga Silk is synonymous to Moonga Silk. Many people are not aware about the characteristic natural golden yellow colour of Muga Silk and thus continue to buy Moonga silk considering it to be Muga Silk. The Silk Board of India has confirmed that Moonga Silk does not exist still it continues to be sold in the market synonymous to Muga Silk and no infringement action is taken against it. Even if infringement action is taken in the future, the burden of proof will lie on the users of Muga Silk to prove that sale of Moonga silk synonymous to Muga silk has diluted its image and that they have incurred substantial monetary losses and loss of reputation. The defendants of Moonga silk can easily defend by stating that Moonga is substantially different from Muga and there is no infringement of passion of the GI.

Muga vs Moonga is just one of the many instances where GI laws fail to adequately protect the registered GI products. Other textile products like Banarasi Silk sarees face tough competition from the synthetic fibre from China or states continue to fight over GI as in the case of Rasgulla GI war between West Bengal and Orissa. In India, rather than protecting the GI and obtaining a premium price for registered GI by the authorised users and benefitting the users and others who have a stake in the GI, emphasis is more on which states have a greater number of registered GI products. Hardly any GI infringement suits are filed against the infringer. The lack of awareness about GI laws, strategies and measures post-registration, no proper enforcement measures by the regulatory authorities and lack of brand building and advertising the GI further exacerbates the problem. It is time the authorities step up and take conclusive steps to deal with such infringing unlawful activities. In the present instance, the authorised users of Muga silk should take proactive steps and measures against infringers of registered Muga Silk GI and keep it intact as the registered GI of Assam.

[1] Section 21

[2] https://www.exportersindia.com/m-r-handloom-fabrics/moonga-silk-fabric-1322041.htm

Healthcare for Prisoners in India: An Overview

Individuals accept that prisoners are shipped off jail as a punishment, and not for punishment. This infers that the deficiency of a people right to freedom is implemented by regulation in a close environment. In this way keeping the person in the care of the state, ought not, in any case, deleteriously affect him. Be that as it may, this is, shockingly, the situation somewhat or another in a large number of the universes prison facilities. Is it conceivable at that point to characterize what is healthy environment in a jail? Not to mention, discussing a prisoner’s right to wellbeing administrations that are to be given to him by the jail specialists?

The response to this inquiry is that detainees have unalienable rights presented upon them by International treaties and covenants; they reserve a privilege to medical care, and assuredly have a privilege not to contract illnesses in jail. Jail statute perceives that detainees ought not to lose every one of their privileges due to detainment. However, there is a deficiency of rights inside custodial establishments, which keep on happening. Detainees are frequently failed to remember in this condition. They are in consistent contact with a wide range of individuals who come all through jail each day. This steady development all through jail makes it even more imperative to control any infectious sickness inside the jail with the goal that it doesn’t spread into the outside community.

In India, stuffing has disturbed the issue of cleanliness. In numerous prisons, conditions are shocking. At the tehsil level facilities, even simple comforts are not given. Detainees in India are not tried for explicit irresistible illnesses, albeit all detainees go through a clinical assessment when they start carrying out their punishment. No investigations of the pervasiveness of viral diseases among jail detainees have been done at a public level. India’s jail manuals accommodate isolation of detainees associated with having infectious illnesses. A couple of correctional facilities have set up casual contacts with clinical and social associations for advising of detainees to forestall the spread of contaminations.

Rights of prisoners granted by Constitution

Constitution of India does not expressly provide the provisions related to the prisoners’ rights but the Articles 14, 19 and 21 are available to the prisoners as well as freemen. Prison walls do not keep out fundamental rights.

Article 14 of the Constitution of India says that the State shall not deny to any person equality before law or the equal protection of laws within the territory of India. Thus Article 14 contemplated that like should be treated alike, and also provided the concept of reasonable classification. This article is very useful guide and basis for the prison authorities to determine various categories of prisoners and their classifications with the object of reformation.

Article 19 of the Constitution of India guarantees six freedoms to the all citizens of India. Among these freedoms certain freedoms cannot enjoyed by the prisoners because of the very nature of these freedoms. But the “freedom of speech and expression” and “freedom to become member of an association”

Article 21 of the Constitution of India[1] says that No person shall be deprived of his life or personal liberty except according to procedure established by law. This Article stipulates two concepts i.e., right to life and principle of liberty. By Article 21 of the Indian Constitution it is clear that it is available not only for free people but also to those people behind the prison. Following are the rights of prisoners which are implicitly provided under the Article 21 of the Constitution of India:-

Right of inmates of protective homes,
Right to free legal aid,
Right to speedy trial,
Right against cruel and unusual punishment,
Right to fair trial,
Right against custodial violence and death in police lock-ups or encounters,
Right to live with human dignity,

Apart from these rights of prisoners Constitution of India also provides following rights to the prisoners:-

Right to meet friends and consult lawyer,
Rights against solitary confinement, handcuffing & bar fetters and protection from torture,
Right to reasonable wages in prison.

Both prison change and penal change are significant components if the numerous issues influencing the Indian prisons are to be settled. Lessening the general jail populace will permit upgrades of the physical and working states of the detainment facilities, and help to guarantee the security of all people in care.

Hence, it tends to be said that the prisoners are likewise qualified for all his Constitutional rights while they are behind the prisons. Indian Constitution doesn’t explicitly accommodate the prisoners’ privileges yet Articles 14, 19 and 21 verifiably ensured the detainees’ privileges and the arrangements of the Prisons Act, 1894 contains the arrangements for the government assistance and assurance of detainees. The Court has decided that it can intercede with jail organization when protected rights or legal remedies are violated to the injury of the detainee. And much of the time, it is held that detainee is an individual, a characteristic individual and furthermore a legitimate individual.

ANKITH KUMAR

B.A. L.L.B – 5th Year

CHRIST (Deemed to be University) Bengaluru

[1] The Constitution of India, 1949

THE (UN) LAWFUL DISSENT

Introduction

There has been a constant scuffle between Intellectual Property Law and Competition Law. Competition Law focuses on creating and maintaining a healthy Competition in the Market by preventing and disallowing anti-competitive activities. Intellectual Property Law provides for protection and exclusive rights to the Proprietor of Intellectual Property, thus creating a dominance or monopoly in the market. Though, there exists a contradiction between these Laws, one must apply the Doctrine of Harmonized Construction to achieve the maximum level of Consistency and avoid the construction leading to inconsistency.

Objective of the Legislations

The aim of the Competition Law is to promote healthy and fair Competition in the market. The Act seeks to achieve its objectives by prohibiting anti-competitive agreements, preventing abuse of dominance and creating awareness by imparting training. Intellectual Property Laws are drafted to grant protection to the people who take steps to create invention, innovation and new techniques. It provides protection and exclusive rights to the Proprietor. However both legislations have common objective to facilitate Consumer welfare and protection and to provide opportunities for Competition, Growth and Innovation.

Statutory Analysis

Section 3 of Competition Act talks about Anti Competitive Agreements. It prohibits all the agreements which have or likely to have adverse effects of Competition in the market.
But Section 3(5) provides that nothing in Section 3 shall apply to Patents, Trademarks, Copyright, Design, etc. protection granted under Intellectual Property Law.
Section 4 of Competition Act talks about Abuse of Dominance by some market players. However at the same time, Competition Law does not prohibit the Dominance but Abuse of it by exploitative ways.
On the other hand, when it comes to IP Law, TRIPS Agreement provides for prevention of Abuse of dominant position by the IP Holders in the market. Article 31 of the TRIPS Agreement talks about Compulsory Licensing by Government. Compulsory Licensing prevents anti-competitive agreements, thus complementing the provisions of Competition Law in the interest of the public at large.

Judicial Analysis

Case: Aamir Khan Productions Pvt. Ltd v. Union of India[1]

Facts: UPDF (United Producers/Distributors Forum) and others formed a market Cartel in Films against Multiplex Owners. Since Multiplex Owners are totally dependent on the Films, this cartel came under Anti-competitive agreement. Thus CCI directed an enquiry into the matter, followed by which CCI also concluded the existence of abuse of dominance on behalf of UPDF, which was reported as a Cartel. CCI issued a show-cause notice to UPDF. But instead of replying to the same UPDF went to the High Court contending that the Films possess copyright protection and thus the Copyright Board has the jurisdiction in the respective matter.

The Court ruled that, Section 3 does not restrict the protection for infringement of IPR and hence CCI has the jurisdiction in all the matters which come under the jurisdiction of Copyright Board. Thus CCI has the power to deal with IPR matters.

Conclusion

Thus, Intellectual Property Law and Competition Law are not conflicting in nature but prove to be remedial and compatible for each other. Both legislations are complimentary and must be interpreted in a harmonized fashion. To minimize the contradiction further following steps can be taken –

1. Guidance to interpret Legislative provisions.

2. Intervention of Laws whenever necessary (Abuse of Dominance by Patent Holder- Compulsory Licensing)

3. Parallel understanding to secure a middle way in order to fulfill the objectives of both the Legislations.

POOJA PATIL

B.A. L.L.B

ILS LAW COLLEGE, PUNE

[1] The High Court of Bombay- Writ petition no. 358 along with 526 of 2010

IPR in Sports: Part-2

When we talk about Personality Rights which are also associated with sports industry because now a day’s big sports teams or companies take big movie stars in their branding and marketing strategies and it leads to various forms of image creation, brand endorsement and revenue generation. It is important that federations, organizers, team owners and sports gear manufacturers must go for registration of their team names, logos, venues, captions and taglines, slogans in the globalized world.

When we talk about Domain Names in the field of sports, Indian courts for the most part place domain name under the of Trademark as it were. It assumes an essential function in assurance of IP rights related with sports. A few data are being imparted and games are being communicated through web, which has not just gotten colossal pieces of the overall industry in making of brand esteem, yet additionally has given numerous events to the digital vagrants for carrying out a wrongdoing, just by exploiting the vulnerability which might be responsible exclusively to domain names. Through site, publicizing just as making brands have gotten very simple. To make brand acknowledgment, many support organizations are occupied with selling of tickets of a game occasion on the web, web-based shopping sites for selling marked product, and so on, so as make the experience of a client agreeable and better. As we as a whole know about the way that web is an effective method to spread mindfulness about the groups, players and the game. Enrolment of various area names has gotten essential to ensure the internet gamers, fans, stock buyer, and so forth from submitting any errors which would eventually prompt the snare of digital vagrants. It is consistently fitting to be ensured against the brand abuse and brand name weakening by enrolling the domain names with mainstream gTLDs, for example, .com., gov., .org, and so on.

So, we can definitely say that IPR plays great role in the field of sports and now time has come where Indian Judiciary should also recognize these rights.

Then coming down to Ambush Marketing in the field of sports, and this is where IP Laws of the country plays a great role. Ambush Marketing refers to a marketing strategy wherein companies try to free ride over the privileges obtained by the company who are official sponsors of a particular sport event. In other words, Ambush Marketing means attacking from a hidden position. The Ambusher promotes its merchandise brand by relating it to the players, teams, tournament or event without even paying for the benefits. The Ambusher is not an official sponsor of the sporting event; still, it spends money on advertising its Company. In the famous case of National Hockey League (NHL) vs. Pepsi-Cola Canada Ltd.^[1] in the year 1990. In the present case, NHL, through an agreement, made Coca Cola its official sponsor for the sporting event. Coca Cola eventually obtained the right to use NHL’s symbols for its promotional programme in Canada & USA but did not obtain any broadcasting rights on television. NHL has already sold this right to a company named Pepsi-Cola, which was business rival of Coca Cola. The controversy arose between Coca Cola and Pepsi-Cola when Pepsi-Cola broadcasted an advertisement on television showing well-known celebrity conveying a message that Pepsi is the official drink of the tournament. Coca-Cola did not succeed in its claim for passing off against Pepsi-Cola.

Conclusion:

So, the commercial sports always trigger core Intellectual Property Rights related to issues such as Trademark, Copyright etc. These IP rights must be protected in every aspect of the sport as mentioned above. So, the simple way to protect these rights a contractual agreement should be drafted which will protect all forms of IP rights associated with any sporting event. And sports industry generates so much revenue in different ways and it also enables employment in the country. So, it is very important for Indian Government to protect this industry and IP rights involved in it.

[1] (1995), 56 B.C.A.C. 1 (CA).

Ethics and Morality in Legal Profession

Attorneys all through the world are specific particular experts who place the interests of their customers over their own, and attempt to acquire the regard for the Rule of Law. They need to join a consistent update on lawful improvements with administration to their customers, regard for the courts, and the authentic goal and yearning to keep a sensible way of life”, as referenced in the International Bar Association’s International Principles on Conduct for the Legal Profession.

The couple of lines pleasantly summarizes the significant job that the legal advisors play in our general public and all the obligations they have. The word ‘morals’ is derived from the Greek word ‘ethos’ which fundamentally implies character. Morals in way of thinking include the good and bad conduct. Morals and Legal Profession go connected at the hip. Lawful Ethics includes the specific guidelines of good or a proper direct inside the lawful calling.

What actually are Professional Ethics?

Ethics means human conduct to settle on choices between what is honest and what isn’t. Proficient ethics are those set code or good rules that oversee an individual’s conduct in an expert working environment or work life. In the legitimate calling, a supporter should submit to proficient codes for reasonable managing the customer and keep up and maintain the restraint.

Importance of Ethics for Advocates

The set of principles in any profession is significant, and maybe the most squeezing in the legitimate profession where legal advisors are especially seen with doubt. Necessary direct is subsequently fundamental in guaranteeing the trustworthiness of representatives and the general set of laws all in all.

Attorneys and other lawful specialists are regularly faced with clashing interests from the customers they address, locally for bigger and more autonomous purposes. Legitimate standards are consequently significant in assisting a lawyer with exploring the basic equilibrium of these interests and work for the best advancement.

The implicit rules likewise secure the interests of the harmed clients and guarantees that they get the assistance without separation. On the off chance that backers don’t follow, and advance, the standards of equity, reasonableness and uniformity, the actual law will be abused and public trust in the law will be subverted, consequently forestalling admittance to equity. Accordingly, the lawful profession has an extraordinary duty to the local area as backers of the standard of law, just as safeguards of individual rights in the battle against maltreatment of force.

Need For Professional Ethics

The American Bar Association Committee has very much clarified the need of the code of legitimate morals. It is obvious that the legitimate calling is really the cornerstone of the curve of Government. On the off chance that it is powerless, at that point it is permitted to be the subject of debasement again the damaging impact of those, who are constrained by craftsmanship, insatiability or benefit or in any case wrong rationale, eventually the curve should implode.

The fate of the nation relies upon the support of the sanctuary of equity, which is perfect and which can’t be opened by legal counsellors. It can’t be kept up thus, except if the activity and thought processes of legal individuals work are the thing that they contend to be. In this way, it turns into an undeniable and basic errand of promoters to practice their impact in each legitimate manner to help and shape the Bar it must be. Further proceeding to the rules mentioned in chapter II of part IV of the rules of bar council of India where the advocate is under an obligation to follow these:

Act in a dignified manner
Respect the court’s mandate
Refuse to act in an illegal manner towards the opposition
Appear in proper dress code
To not stand as a surety for client
Not communicate in private
Should not supress material or evidence

Conclusion

Proficient Ethics are critical to guaranteeing that an individual is free, skilful, effective and responsive lawful work. Where there are wide standards of direct or morals, they ought to guarantee that the backers are needed to follow customer care strategies, doing their best the premium of the customer, and to satisfy their obligations as promoters. Morals may keep on impressive standards biasedness, trustworthiness and honesty in the manner in which attorneys carry on and fortify public trust in the organization of equity.

The principle motivation behind legal conduct is to keep up the honour and poise of the lawful calling, to secure the soul of agreeable collaboration, to set up conscious and unprejudiced co-activity with his customer, rival and witness, to set up a feeling of fellowship in the actual Bar; and guaranteeing that promoters play out their obligations to the overall population. The legal profession is the backbone of government. Lawful work isn’t a business however a calling, made by the public authority for the betterment of the citizens.

ANKITH KUMAR

B.A. L.L.B – 5th Year

CHRIST (Deemed to be University) Bengaluru

PROTECTION OF PLANTS AS INTELLECTUAL PROPERTY

Introduction

Systematic breeding of crop varieties and plants started in the 18th century when humans selected and kept seeds or plants of certain species, ensuring food security. Over time, breeding of these plants began to grow with innovations done by the farmers. In the 20th century, the rediscovery of Mendel’s laws contributed to establishing the scientific basis of plant breeding and genetics. It takes around 3 to 10 years continuously to develop a variety of a crop or a plant. However, once it arrives on the market, it can be reproduced much faster and easier. It might lead to the exploitation of the breeders and the variety for commercial benefits. This situation deprives the actual breeder to benefit adequately for the investment and tireless efforts he/she had made in the development of the variety. Therefore, it is crucial to devise an effective system to protect these plant varieties and protect the breeders’ interests.

Global Organisations for Protection of Plant Varieties

International Union for the Protection of New Plant Varieties (UPOV)

The International Union for the Protection of New Plant Varieties with headquarters at Geneva, Switzerland, also known as the UPOV, was established at the first International Convention for the Protection of New Plant Varieties, held in 1961 in Paris, France. Later, the convention was revised in Geneva in 1972, 1978, and 1991 respectively. The mission is to provide and promote an effective plant variety protection system to encourage new varieties of plants to benefit the society. The UPOV Convention acts as a support system to promote plant breeding by granting an intellectual property right to new plant varieties (also called breeder’s right). In the breeder’s right protected variety, the breeder’s authorization is mandatory to propagate the variety for commercial purposes. The individual UPOV members grant the breeder’s right. Only the breeder of the variety concerned has the authority to protect new plant variety. There are no such limitations on who can be considered a breeder. He/she might be an individual, a farmer, a researcher, a public institute, a private company, etc.

2. Community Plant Varieties Office (CPVO)

The Community Plant Varieties Office was established in Angers, France (1994). It is a European agency responsible for granting various rights and managing various rights systems in 27 Member States in Europe. Till present, it has received over 53,000 applications, and it has granted over 41,000 titles to protect the plant variety. This office’s primary goal is to deliver and promote an efficient IPR system that supports creating new plant varieties for society’s welfare.

3. International Association of Breeders of Asexually Reproduced Ornamental and Fruit Varieties (CIOPORA)

The International Association of Breeders of Asexually Reproduced Ornamental and Fruit Varieties (CIOPORA) in Geneva, Switzerland, is an NGO with several members of private breeders and companies. This organization’s main objective is to make the members aware of the problems concerning protecting their developed varieties’ rights and improving their knowledge.

The organizations mentioned above are just a few examples of the various organizations, NGOs established in several countries and states for the Protection of Plant Varieties as Intellectual Property of the breeders.

Protection of Plant Varieties as Intellectual Property in India

After India became a signatory to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) in 1994, it was essential to formulate legislation as per Article 27.3(b) of this agreement. It also required the member countries to protect plant varieties either by patents or by an effective sui generis system. India opted to make new legislation unique of its kind for this purpose. Even though India had passed the Indian Patent Act in 1970 itself, agriculture and horticulture were excluded from this Act. Hence, India’s Government passed legislation known as ‘Protection of Plant Varieties and Farmers’ Rights Act, 2001′. This Act was developed by integrating the rights of breeders, farmers, village communities, and equitable sharing of benefits. This Act includes all the categories of crops, including field crops, horticultural crops, etc. A farmer has the right under this Act to save, use, sow, re-sow, exchange, share or sell his farm produce, including seed of his protected variety. Researchers may have access to the protected varieties for bonafide research purposes. This Act is currently functional in India with satisfactory results. It has successfully protected many plant varieties and has protected the breeders’ intellectual property rights and these varieties’ farmers.

CO-AUTHORED BY

NEERAJ SINGH NEGI

PhD-3rd Year

Indian Agricultural Research Institute, New Delhi

A Critical Analysis on Animal Welfare

Animal welfare as a science highlights the significant emphasis on how animals denote the standard of life that is experienced by them and the way they are handling their conditions and surroundings. It refers to the link between the human being and animals. From ancient times, man is known for domesticating animals. In India animals are not only used for the purpose of husbandry or agriculture but also treated as a deity and worshiped them as God. In this Article I am going to express the challenges faced by animal shelters and how we need to propose a solution for the betterment of animals. Firstly there is lack of public Awareness, Secondly funding’s are hard to come by and lastly there is over population of pets who needs to be adopted and proper care has to be taken for future purpose.

Animal Welfare assistance alludes to the personal satisfaction experienced by an animal and incorporates how well the animal is adapting to their present circumstances and environmental factors. World Animal Protection accepts that Animal Welfare assistance is influenced by the connection that individuals have with creatures and it is our obligation to guarantee that all animals are dealt with sympathetically, dependably, and with deference. This incorporates for all parts of creature prosperity, for example, the Five Domains. Animal Welfare assistance ought to be at the bleeding edge of each human activity including animals.

Apart from that the problems laid down above there are certain negative externalities where the concept has not been solved significantly and the government of each state is taking this matter as an utmost importance in order to give proper justice to the animals. Many accidents of animal cruelty occur in a daily basis but in most cases they’re not reported to cut back. The cases of animal cruelty and for the explanation of making social awareness, and in order to regulate measures, there is a need of strict legislations and active participation of all individuals and can only reduce this situation.

Animal welfare refers to the connection between the human and animal. It also prescribes certain duties for human towards animals. Animal welfare isn’t a replacement phenomenon; it existed since the amount of domestication, which is sort of about a minimum 10,000 years old, right from the Neolithic times. The connection between human and animal led to their domestication, animal agriculture, so this includes all aspect of Animal welfare. Here are the 5 probable solutions in order to solve the problem of animals suffering and should ensure that they get peaceful and healthy environment:

Nutrition: freedom from thirst and hunger.
Environment: freedom from discomfort by providing appropriate shelter.
Health: freedom from injury and disease by providing proper treatment.
Behavior: In order to express their own feelings by providing proper amenities to the animals.
Mental State: Where animals can enjoy freely without any mental suffering.

Animal Protection Laws in India: Constitutional Provisions

Part IV of the constitution states The Directive Principles of State Policy, under which Article 48 states, organization of agriculture and animal husbandry, which empowers the state to organize agriculture and animal husbandry on modern and scientific lines and shall also preserve the breeds and prohibit the slaughtering of cows and calves and other draught animals.
Article 48A declares Protection and improvement of environment and safeguarding of forest and wild life, and states that the state shall make effort in protecting and safeguarding the environment the forest and the wild life.
Part IVA of the Constitution declares Fundamental Duties of every citizen of India, which imposes a duty on the citizens under Article 51A (g) to protect and improve the natural environment[1].
The Constitution of India also imposes a power on the parliament and the legislatures of states under Article 246 read with Seventh Schedule of the Constitution to make laws for the prevention of cruelty to animals and for the protection of wild animals and birds
Under Article 243G read with Eleventh Schedule of the Constitution empowers the Panchayat to make laws on Animal husbandry, dairying and poultry

Given that the problem of Animal Welfare is not being solved by any significant research, and these are also not based on any views or values which our culture or religion has it then how can we proceed further by creating social programs and policies in order to ensure high standards of animal welfare. I think the most straightforward message is that, the activities intended to improve animal welfare assistance are not prone to accomplish far reaching support except if they assess the various originations of animal assistance to probably some degree. Animal producers are not liable to persuade their faultfinders that high-wellbeing imprisonment frameworks are useful for animal welfare assistance if these frameworks cause dissatisfaction and keep animals from doing a large portion of their regular conduct.

ANKITH KUMAR

B.A. L.L.B – 5th Year

CHRIST (Deemed to be University) Bengaluru

[1] The Constitution of India, 1949

FARMERS’ AGITATION AGAINST THE NEW FARM LAW REFORMS: A battle to legalize the Minimum Support Price (MSP)

Last year, the Indian Government enacted three major farm law reforms, namely, the Farmers Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 which allows farmers to sell their produce to anyone outside of the Agriculture Produce Marketing Committee (APMC) approved mandis, both at the intra-state and inter-state level and the state governments are prohibited from levying any market fee, cess or levy on such a sale; the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 which allows farmers to enter into a contract farming agreement with a buyer prior to sowing or harvesting of any farm produce which must guaranty farmers a minimum price and to buyers an assured supply, and sets up a three-level dispute resolution mechanism comprising of a Conciliation Board, Sub-Divisional Magistrate and an Appellate Authority; and the Essential Commodities (Amendment) Act, 2020 which de-classifies some commodities like onions, pulses, potatoes, edible oilseeds and oil as essential items in normal circumstances but at the same time empowers the government to impose stock limits on them in case of a war or famine.

Since the enactment of new farm laws last September, a major section of the farmer community from the northern states of Punjab and Haryana has been demanding a total ban and repeal of these laws. Thousands of farmers are agitating relentlessly, day and night protesting at the Singhu border of the national capital, New Delhi. Although the new farm laws have nothing to do with setting up of a Minimum Support Price (MSP) but they have garnered strong opposition from the farmers mainly residing in these states in this regard. MSP is a minimum price which is fixed by the government for procuring selective crops’ produce from the farmers in the APMC approved mandis. Although it acts as a catalyst to bolster the farmers’ income in times of uneven market prices of essential crops like wheat, paddy etc. but it does not have a legal basis in India. In other words, there is no statutory framework in India that empowers the government to mandatorily set up MSP.

Then why are the farmers, particularly from the states of Punjab & Haryana protesting against the new laws? To answer this, first we need to trace the origin of the concept of MSP. MSP’s origin can be traced back to the 1960’s when our country was facing acute food shortage, at that time MSP was conceived as a policy incentive under the aegis of the Green Revolution drive to boost the growth of agricultural produce in India wherein the then government decided to procure food grains, mainly wheat, from the farmers in the government approved mandis at a pre-determined rate or MSP. As a result, farmers started investing heavily in irrigation machinery, fertilizers and pesticides because of the assurance that the government would buy their produce once it was harvested, at a rate which is not less than the MSP from anyone. The major states to benefit from this scheme were Punjab and Haryana.

However, since then it became a customary practice to set up MSP every year by the successive governments which came into power due to their vested interests of vote bank politics and gradually the scope of crops also expanded on which the MSP would apply. At

present, MSP is fixed for 24 crops by the government twice a year on the recommendations of the Commission for Agricultural Costs and Prices (CACP), which is a statutory body.

According to the Shanta Kumar Committee Report, 2015 – while farmers in India do enjoy some sort of a safety net under the MSP regime but in reality only 6 per cent of farmers actually succeed in selling their crops at MSP. Hence, a majority of Indian farmers have never really benefitted from the MSP system. The MSP regime is also plagued by intermediaries and middlemen who block access to the APMC mandis for small and marginal farmers as well as new traders. According to a report submitted by the Standing Committee on Agriculture to the Lok Sabha in 2019, it was found that most APMCs in India have a limited number of traders operating, which has resulted in cartelization and reduction of competition (in terms of buyers in these mandis) and that undue commissions and market fees were being charged therein¹.

In order to overcome the failures of the APMC regime, the government has enacted the new farm laws. While the Government claims that the new laws aim towards bringing farmers more close to buyers outside the APMC approved mandis, leading them to practically sell their produce freely to anyone in the market, however, the new laws are silent upon setting up of MSP by the government in the areas outside of the APMC approved mandis. And this is the reason why farmers majorly from the states of Punjab and Haryana are protesting today, because they fear that having no MSP fixed for their produce outside such mandis can jeopardise their livelihood and also put them in an uneven bargaining position with the big private entities who may enter the market as proposed buyers under the new contract farming regime.

Due to the perishable nature of crops, every year tonnes of farm produce goes to waste as it is kept lying to rot in warehouses that are ill-equipped to handle such vast measure of produce. The usher of new farm laws is indeed a stepping stone to welcome private players or big entities which are equipped with advanced infrastructure and storage facilities to aid in the protection and safety of the farm produce from going to absolute waste. However, the plight of farmers’ and their right to freely access the market must not be neglected. Especially, leaving small and marginal farmers in an unequal bargaining position with the big conglomerates, in the absence of a minimum support price outside of the government approved mandis under the new contract farming regime will put them at a greater risk and on the mercy of bigger private enterprises.

While hearing several petitions filed before the Apex Court challenging the constitutional validity of the new farm laws, the honourable Supreme Court of India has recently directed the Central Government to put a stay on the implementation of all the three farming laws and has also ordered to set up a four member committee to hear the plight of agitating farmers and all the stakeholders involved, and to amicably reach at a settlement.² However, the government must step up and act in a proactive way to strike a balance between the farmers’ interests as well as the privatization of the Indian agricultural sector which is the need of the hour.

¹ See Report No. 8, Standing Committee on Agriculture (2019-20): Action taken by the government on the report ‘Agriculture Marketing and Role of Weekly Gramin Haats’, Lok Sabha, (2019), available at: https://www.prsindia.org/billtrack/farmers-empowerment-and-protection-agreement-price-assurance-and-farm-services- bill-2020#_edn2

² Read the Court Order here: https://images.assettype.com/barandbench/2021-01/1df8a71d-e777-426e-ba24- f21525fe987b/farm_laws.pdf