Maarg Manthan · Topic 16.1

The Three Farm Laws and Their Repeal (2020–21)

Current Affairs & Government Schemes › Recently Enacted Acts, Bills and Amendments · Topic 16.1

The three farm laws of 2020 were the Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020, and the Essential Commodities (Amendment) Act, 2020, administered by the Ministry of Agriculture and Farmers Welfare. They replaced ordinances of 5 June 2020, were passed by Parliament in September 2020 and received assent on 27 September 2020. After a year of farmer protests, the Prime Minister announced repeal on 19 November 2021, and Parliament passed the Farm Laws Repeal Act, 2021 on 29 November 2021, with assent dated 30 November 2021. None of the three laws is in force.

6 min read · UPSC Prelims · Current Affairs & Government Schemes · Recently Enacted Acts, Bills and Amendments

At a Glance

Laws Three acts of 2020, from ordinances of 5 June 2020
Assent 27 September 2020
Stay Supreme Court, 12 January 2021
Repeal announced 19 November 2021
Repeal Act passed 29 November 2021, assent 30 November 2021
Status Repealed, not in force
Exam link UPSC Prelims, Current Affairs and Government Schemes: Recently Enacted Acts, Bills and Amendments

Where Does It Fit?

This is the first topic of the macro on recently enacted acts. It shows how a law can be repealed after wide protest, and it links to the agriculture schemes covered earlier. Previous topic: Assistance to Disabled Persons Scheme (ADIP). Next topic: The Digital Personal Data Protection Act, 2023.

What Did the Three Farm Laws Provide?

Law	Main provisions
Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020	Allowed farmers to sell outside the physical market yards of the Agricultural Produce Market Committees, in a trade area outside APMC mandis, with no state market fee, and allowed electronic trading
Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020	Created a national framework for contract farming, with written agreements, a minimum duration of one crop season, no sale of farm land, and dispute resolution at the sub-divisional level
Essential Commodities (Amendment) Act, 2020	Removed cereals, pulses, oilseeds, edible oils, onion and potato from regular stock limits, which could apply only in extraordinary price rise, such as a 100 per cent rise for horticulture and 50 per cent for non-perishables
Constitutional route	The Centre relied on Entry 33 of the Concurrent List for trade and commerce in foodstuffs, even though agriculture and markets are largely State subjects
Parliamentary passage	The Bills were passed in the Lok Sabha and, in the Rajya Sabha, by voice vote on 20 September 2020, amid protest
Government case	Free choice of buyer, more competition, private investment in storage and marketing, and better price discovery

Why Did Farmers Protest and How Did the Repeal Happen?

Fear on MSP: farmers feared that mandis and procurement at minimum support price would fade, as the law did not guarantee MSP
Fear on corporate power: contract farming raised worries about unequal bargaining with large buyers and weak dispute settlement
Fear on mandi system: states would lose market fee and arhtiya commission income, and the fee-free outside trade could weaken APMC mandis
Stock limits: removal of stock limits was feared to help hoarding
Protest: the protest began mainly from Punjab, Haryana and western Uttar Pradesh, with camps at Delhi borders from late November 2020 for about a year
Supreme Court: on 12 January 2021 the Supreme Court stayed implementation and set up a four-member expert committee, whose report of March 2021 was made public in March 2022, as reported
Repeal: the Prime Minister announced repeal on 19 November 2021, and the Farm Laws Repeal Act, 2021 was passed on 29 November 2021 without a debate and received assent on 30 November 2021
Commitment on MSP: a committee on MSP, natural farming and crop diversification was announced, and was reported constituted in July 2022, but a legal guarantee of MSP has not been enacted, as reported

What Else Should You Remember?

Why repeal and not amend: the government said it could not convince a section of farmers despite efforts, and withdrew the laws
Effect of repeal: the position before the 2020 laws was restored, so the old Essential Commodities Act rules and APMC systems continue
State action: some states had passed their own laws, such as Punjab amendments to protect farmers from the Union laws, which shows the Union-state tension
MSP basics: MSP is announced for 22 mandated crops, and legal status is a long-standing demand, as in Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)
Market reform: e-NAM, the digital market linking mandis, continues, as in e-NAM (National Agriculture Market)
Farmer producer groups: collective models to improve bargaining power are promoted, as in Formation of 10,000 Farmer Producer Organisations (FPOs)
Income support: direct income support is given under PM-KISAN, as in PM-KISAN (Pradhan Mantri Kisan Samman Nidhi)
Later steps: a draft National Policy Framework on Agricultural Marketing was released for comment in November 2024, as reported, and the Centre says marketing reform needs state consensus
Constitutional lesson: a strong view arose that laws on agricultural markets need consultation with states and stakeholders before passage
Criticism of process: the Bills were moved as ordinances, passed with limited debate and sent to no committee, which weakened consensus

Why Does It Matter for the Exam?

Names and dates: three acts, ordinances on 5 June 2020, assent on 27 September 2020
Repeal: announced 19 November 2021; Repeal Act passed 29 November 2021; assent 30 November
Court action: stay on 12 January 2021 and expert committee
Concurrent List: Entry 33 relied on by the Centre
Common errors: saying the laws amended the Constitution or that the Court struck them down

As an analytical point, the episode shows that a reform with good intent can fail if it ignores fears on prices, state revenue and process. Durable agricultural reform needs consultation, committee scrutiny and clear price safeguards.

Why Is This Topic Important?

Prelims Names, dates and provisions
Mains Agricultural marketing and federal consultation
Linkage Joins MSP, mandi reform and Union-state powers

What Came Next?

The next topic covers the law on personal data protection. Next topic: The Digital Personal Data Protection Act, 2023.

Key People and Terms

APMC Agricultural Produce Market Committee
MSP Minimum Support Price
Contract farming Farming under a written agreement
Stock limit Cap on holding of goods
Entry 33 Concurrent List entry on trade in foodstuffs
Arhtiya Commission agent in mandi

Exam Corner

Points to Remember

Three acts of 2020 from ordinances of 5 June 2020.
Repeal announced 19 November 2021; passed 29 November 2021.
Supreme Court stay: 12 January 2021.
Centre used Entry 33 of the Concurrent List.
No law guarantees MSP, as reported.

Do Not Confuse With

Farm Laws Repeal Act and Farm Laws The 2021 repeal law versus the three 2020 acts
APMC and e-NAM Physical mandis under state law versus a digital trading platform
MSP and procurement Announced price versus actual government buying

Memory Hook

Three acts, one year of protest, one repeal: mandi, contract, stock.

Mains Angle

Questions ask about the reasons for protest and the lessons. These points give a balanced frame.

Aim Market freedom and investment
Concerns MSP, mandis and process
Way forward Consultation, MSP clarity and e-markets

A Question You May Face

An original practice question, not a past paper question.

“The repeal of the three farm laws raises questions about how agricultural reform should be designed. Discuss.”

How to Answer

Intro Summarise the laws and repeal dates.
Concerns MSP, mandis, contract farming, process.
Lessons Consultation and state role.
Way Marketing framework, FPOs, e-NAM.

GS Relevance

Prelims: names, provisions, dates, repeal. GS Paper 2: Union-state powers, legislative process; GS Paper 3: agricultural marketing, MSP, contract farming.

Frequently Asked Questions

What were the three farm laws of 2020?

They were the Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, and the Essential Commodities (Amendment) Act, all of 2020. They covered trade outside mandis, contract farming and stock limits.

When were the farm laws repealed?

The Prime Minister announced repeal on 19 November 2021, and Parliament passed the Farm Laws Repeal Act, 2021 on 29 November 2021. The official gazette shows assent on 30 November 2021, although some press reports dated it 1 December. All three laws stand repealed.

Why did farmers protest against the farm laws?

Farmers feared the end of procurement at minimum support price, weakening of mandis, unequal contract terms with large buyers and hoarding after removal of stock limits. The laws did not guarantee MSP, and states lost market fee income. The protest ran from late 2020 to late 2021.

What did the Supreme Court do on the farm laws?

On 12 January 2021 the Supreme Court stayed implementation of the three laws and set up a four-member expert committee to hear stakeholders. The committee reported in March 2021, and the report was made public in March 2022, as reported, but the laws were later repealed by Parliament.

What is the latest status of MSP after the repeal?

A committee on MSP, natural farming and crop diversification was announced and reported constituted in 2022, but no law guarantees MSP, as reported. The farm laws are not in force, and MSP continues as an administrative announcement for 22 mandated crops, with procurement concentrated in some states.

PYQ Practice — Statement Analysis

1 The three farm laws were repealed by an Act of Parliament in 2021.

True

The Farm Laws Repeal Act, 2021 was passed on 29 November 2021.

2 The Supreme Court struck down the farm laws.

False

It stayed them and Parliament repealed them.

3 The Centre relied on Entry 33 of the Concurrent List.