INTERSECTION OF FARM LAWS AND FARMERS: BALANCING REFORMS, RESISTANCE AND SUSTAINABILITY
Shristi Meel
Kuruva Balaramudu
Kajal Bhati
International Institute of Sustainable Development Goals and Public Policy Research
February 24, 2025
ABSTRACT
This study explores the impact of India’s 2020 farm laws on farmers, examining the reforms, resistance sparked, and their broader implications for agricultural sustainability. These laws aim to modernize the sector by increasing market freedom and reducing government control. Supporters believed it would empower farmers by providing more selling options, while critics feared it would favor big corporations and undermine Minimum Support Price (MSP) protection. Massive protests led to the laws being repealed in 2021, highlighting farmer concerns.
Using a mix of data analysis and real-world case studies, this research reveals a divided response—some farmers welcomed the reforms, hoping for better opportunities, while many others opposed them, fearing financial instability. A comparison with European agricultural policies shows that while India leaned towards market-driven reforms, the EU took a more balanced approach, supporting farmers while ensuring environmental sustainability.
Future agriculture suggests that reforms should engage farmers, ensure legal protections, foster trust, and require long-term research on economic impacts.
Key words: farm laws, minimum support price, Farmers’ protests, trust and communication, long-term research.
INTRODUCTION
Agriculture has been the heart of India’s economy for generations, supporting millions of livelihoods. Yet, despite its importance, the sector has struggled with low productivity, unstable incomes, and outdated market structures. In 2020, the Indian government introduced three farm laws aimed at reforming the agricultural sector by giving farmers more freedom to sell their produce outside government-regulated markets, encouraging contract farming, and easing restrictions on food storage and trade.
While some saw these reforms as a step toward modernizing Indian agriculture, many farmers—especially small and marginal ones—feared they would lose the safety net of Minimum Support Price (MSP) and become vulnerable to corporate exploitation. The concerns sparked massive protests, particularly in Punjab, Haryana, and Uttar Pradesh, eventually leading to the repeal of the laws in 2021 highlighting the economic and social insecurities within India’s farming community.
Objective of the study:
This paper explores the farm laws from multiple perspectives—why they were introduced, why they faced resistance, and what their long-term implications could have been. By analyzing real-world data, case studies, and global agricultural policies—especially the European Union’s Common Agricultural Policy (CAP)—this research aims to provide a balanced view of agricultural reform. It also identifies key gaps in understanding the long-term impact of such policies, particularly on small farmers’ incomes, employment opportunities, and climate resilience. Ultimately, this study underscores the need for reforms that not only boost efficiency but also safeguard the livelihoods of those who depend on agriculture the most.
LITERATURE REVIEW
The intersection of farm laws with farmers’ interests has been a subject of extensive debate, particularly in the context of reforms, resistance, and sustainability. The new laws got implemented when the Shankarlal Guru Committee first advocated for a more liberal agricultural marketing structure. The earlier laws created structural problems and led to market distortions which are now finally being addressed. The government may genuinely have the farmers’ interest in its heart, but this needs to be communicated to the farmers who are the main beneficiaries of these reforms.
Agricultural Reforms critics
The introduction of the three farm laws in 2020 aimed to liberalize India’s agricultural sector by reducing restrictions on the sale, pricing, and storage of farm produce. Proponents argued that these reforms would enhance market efficiency and provide farmers with greater autonomy over their produce. However, critics contended that the laws favored corporate interests and could undermine the livelihoods of small and marginal farmers.
In 2021, Modi repealed a set of agricultural laws that the protesting farmers said would hurt their incomes. The withdrawal of the laws was seen as a major retreat by the government, which was shocked in January when 10,000 farmers stormed the historic Red Fort in New Delhi. After withdrawing the laws, the government said it would set up a panel of farmers. Multiple meetings since then have made no progress.
Resistance from farmers
1) Hundreds of farmers taking part in a march to New Delhi to demand guaranteed crop prices in a repeat of 2021 protests. Clashes broke out near Shambhu where multiple entry points into the capital have been sealed with metal barricades and barbed wire.
2) The protest known , “Delhi Chalo” was started to put pressure on the BJP-led Centre for farmers’ demands, including a law on MSP for crops and loan waivers. The Centre had made it clear that a guaranteed MSP won’t be possible.
3) Legal Ambiguities: Lack of legal protections for small-scale farmers in contract farming agreements.
Comparative Analysis with Existing Literature
1) India vs. EU Agricultural Policies: While India’s policies focus on deregulation, the EU’s Common Agricultural Policy (Smith, 2018) balances market support with environmental concerns.
2) Livelihood Transitions and Economic Stability!
Over the past two decades, India has experienced a major employment shift out of agriculture. The ILO showed, agricultural sector employment dropped from 250 million jobs in 2004 to 215 million jobs in 2016. Calculations also showed the number of jobs lost in agriculture over the same period was even higher, at around 40 million.
3) Studies by Devinder Sharma (2021) and Vijaya Gupta (2022) highlight the economic strain on farmers due to policy changes. However, limited research tells long-term livelihood shifts, including rural-urban migration and income diversification.
Fig. 1. Employment in agriculture as a percentage of total employment.
Gaps in the literature
1) Policies to improve the allocation and efficiency of land and water are essential if these critical resources are to be conserved..
2) Reports of agricultural distress have been widespread, with low agrarian productivity, farmer’s indebtedness, crop failure, and overall precarity as the main drivers
3) Politics is even present in the agrarian sector. The big capitalist farmers act as clear beneficiaries of the laws. The difference in accessing facilities by different levels of farmers is yet to be addressed.
4) Doubling of income of farmers, as they complain that costs of cultivation have jumped over the years while incomes have remained stagnant.
Fig.2. Total monetary value of agricultural output
CASE STUDY
INDIA’S NEW FARM LAWS(2020) : REFORM, RESISTANCE, AND THE ROAD TO RECONCILIATION
Introduction
The Indian agriculture acts of 2020, are three acts initiated by the Parliament of India in September 2020. After having been approved by the Lok Sabha and the Rajya Sabha, the President of India gave his assent to the bills on 27 September 2020.The laws have been met with much resistance, eliciting protests from farmers who have marched to New Delhi from the states surrounding the nation’s capital. In November 2021, the Prime Minister in an address to the nation announced that the three farm laws would be repealed in the wake of the unending protests by some of the farmers. All boards and offices that were constituted for implementing the provisions of the laws would also cease operations and any decision made by the boards would be null and void.
Farm Acts, 2020 Background
Agriculture comes under the state list of Schedule 7 of the Indian Constitution and to initiate reforms in the agricultural sector, in 2017, the central government had released model farming acts. However, several reforms suggested in the model acts had not been implemented by the states. The centre promulgated three ordinances in the first week of June 2020. In September 2020, the President gave assent to the three farm acts. There have been protests against the acts by farmers in Punjab, Haryana and other states. The Kerala legislative assembly passed a resolution against the farm reforms and sought their withdrawal. The Supreme Court stayed the implementation of the Farm Acts 2020 and constituted a four-member committee to make recommendations within two months.
The Supreme Court upheld farmers’ rights to protest (though it made it clear that it did not mean they can block highways) and stayed the implementation of the farm laws. It set up a four-member committee to hear the farmers and submit a report.
Arguments In Favour Of The Farm Acts
1)The acts are being hailed as a watershed moment in the history of Indian agriculture that could initiate a complete transformation of agriculture.The new farm acts are expected to benefit all the stakeholders — farmers, industry and consumers.
2)The new farm acts would help the small and marginal farmers (86% of total farmers) who don’t have the means to either bargain for their produce to get a better price or invest in technology to improve the productivity of farms.
3)The new acts will help In establishing a much more integrated market, creating competition, and enhancing efficiency and effectiveness of the marketing domain of the agricultural sector.
Arguments Against The Farm Acts
Some of the farmer organizations and others have called the acts corporate-friendly and anti-farmer and have expressed the fear that the new acts may hurt the farmers’ interests. The bills have faced strong protests mainly from Punjab farmers and from opposition parties.
Way Ahead For India
The farm acts are a step in the right direction and there is the need to ensure the effective implementation of the same. The following measures could help address some of the concerns regarding the farm laws.
1)Striking the ‘Perfect Balance’ :The present scale of subsidies provided by the Government of India pose a high fiscal burden on it. High agricultural input subsidies lead to inefficient resource allocation, lower agricultural productivity and crowding out of public sector investment.
2)Need to address misconceptions:
2(a) Misconceptions regarding MSP : An analysis of the recent laws makes it clear that as against the prevalent misconception that the prevailing system of Minimum Support Price (MSP) is being replaced, rather new options were being put forward for the farmers through these farm bills. The government has made it clear that procurement at MSP will continue and also that the mandis will not stop functioning. Only 6% of farmers actually sell their crops at MSP rates, according to the 2015 Shanta Kumar Committee’s report using National Sample Survey data.
2(b) Misconceptions regarding contract farming: There are fears that contract farming leads to land loss of the small and marginal farmers to big corporations. However, adequate protection of land ownership is in place to protect farmer interests. The act explicitly prohibits any sponsor firm from acquiring the land of farmers – whether through purchase, lease or mortgage.
The Reforms
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 facilitates barrier free inter-state trade while also providing a framework for e-trading of agricultural produce.
The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020 facilitates contract farming and direct marketing.
The Essential Commodities (ECA) (Amendment) Bill, 2020 deregulates the production, storage, movement, and sale of several major foodstuffs, except in the case of extraordinary circumstances.
RESEARCH METHODOLOGY
This research adopted a mixed-methods approach, merging qualitative and quantitative analysis to study the convergence of farm laws and farmers’ opinions.
1. Quantitative Analysis:
(a)Agricultural employment trends data (Fig. 1) show a consistent drop in workforce participation, reflecting structural changes in the industry.
(b)Agricultural Gross Value Added (GVA) statistics (Fig. 2) are employed to assess the economic effect of reforms, indicating variations in output, with a steep rise after 2019-20 followed by a fall.
(c)Survey Analysis (Fig. 3) indicates farmer opinion on the 2020 Farm Laws, with 52% against, 35% in favor, and 13% undecided, providing insight into resistance and acceptance of reforms.
2. Qualitative Analysis:
(a)The case study “India’s New Farm Laws (2020): Reform, Resistance, and the Road to Reconciliation” is an important qualitative source, giving an in-depth view of policy influence, farmer grievances, and government reactions.
(b)Policy reports, government documents, and expert analysis are analyzed to gauge the long-term viability of reforms in reconciling economic efficiency with farmers’ welfare.
By combining statistical information with on-ground case studies, this research provides a well-rounded assessment of the farm laws, presenting an evidence-based vision of reform, resistance, and sustainability.
ANALYSIS
Summary and Findings
The aim of the formulation of the three farm laws in 2020 which are:
1.The Farmers (Empowerment and Protection) Agreement on Price Assurance And Farm Services Act 2020
2.The Farming Produce Trade and commerce (Promotion and Facilitation) Act 2020
3.The Essential Commodities (Amendment) Act 2020
was to liberalize the Indian agriculture sector by bringing various reforms like enabling the farmers to sell their products outside the designated Agricultural Produce Market Committees ( APMCs), contract farming boost farmer’s income eliminating the role of the middlemen etc. The advocates of these laws argued that it will make the markets more efficient and give framers greater freedom. Nonetheless, critics apprehend the dilution of Minimum Support Price (MSP) and exploitation from corporate players. The government’s 2021 repeal of these legislations highlighted the entrenched fears of the farming community.
Interpretation of Data
Empirical data suggests a complex acceptance of the farm laws by the farmers. A survey found that 52% of farmers were against the reforms, mainly fearing the dilution of Minimum Support Price due to open market, while 35% were in favour of them, expecting greater freedom to sell produce anywhere in the country. Marginal and small farmers showed greater support for the laws . This contrast implies that although the reforms were intended to empower farmers, many of them were doubtful about their benefits.
Comparison with existing research
The Government of India’s strategy was directed towards deregulation in order to induce private sector investment and market led growth. By contrast, the European Union’s Common Agricultural Policy (CAP) prioritizes balance between environmental protection and support to the market, with direct payments to farmers combined with compliance with environmental rules. This illustrates different approaches: India’s market led reforms v/s the EU’s holistic strategy blending economic and ecological priorities.
Implications
The rollback of the farm laws indicates the importance of inclusive policy making that actually looks upon the farmer’s concern. The initial failure of through stakeholder consultation resulted in distrust and pushback. Reforms in future need to provide open communication, strong legal protection, and infrastructural facilities to meet farmers needs efficiently.
Knowledge limitations
Although previous research has shed light on the short- term responses to the farm laws, there is a lack of longitudinal studies that explore the long term effects of such reforms on small and marginal farmers, especially in terms of income diversification and climate resilience. More empirical research is needed to comprehend the wide socio-economic and environmental implications of agricultural policy reforms in various regional settings.
CONCLUSION
The farm laws aimed to bring agricultural reforms by allowing farmers to sell their produce beyond mandis, promoting contract farming, and removing stock holding limits. However, they faced strong opposition from farmers, leading to widespread protests. Concerns about corporate exploitation, loss of MSP (Minimum Support Price), and lack of consultation led to their repeal in 2021. The episode highlighted the need for balanced reforms that consider both farmer welfare and economic growth.
Reforms to be Implemented
1. Inclusive Policy Making – Future agricultural reforms should involve stakeholders, including farmers, state governments, and experts, to ensure acceptance and effectiveness.
2. Improving Market Infrastructure – Strengthening APMC mandis and promoting fair competition in private markets can enhance farmer benefits.
3. Support for Small Farmers – Targeted subsidies, better credit access, and technology adoption support can help small and marginal farmers improve productivity.
4. Sustainable Agriculture – Policies should encourage climate-resilient farming, water conservation, and reduced dependency on chemical inputs.
Recommendations for Future
1) Legal Guarantee for MSP
Introduce a legally backed Minimum Support Price (MSP) for key crops to provide income security. Implement a price stabilization fund to support farmers during market fluctuations
2)Contract Farming with Strong Safeguards
Develop a farmer-friendly contract farming framework that ensures fair agreements and prevents exploitation by corporations.
Agriculture remains a critical sector for India’s economy, and future policies should focus on holistic, farmer-centric, and sustainable growth.
REFERENCES
1.https://www.epw.in/journal/2020/11/special-articles/reforming-indian-agriculture.html
2.https://apnews.com/article/india-farmer-protests-police-clashes-b5fe5127c4b2336082f814dd6404d4c1
3.https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://scholar.google.co.in/scholar_url%3Furl%3Dhttps://www.mdpi.com/2071-1050/14/9/5069%26hl%3Den%26sa%3DX%26ei%3DxbO5Z_HUCNq16rQP3bDmmQ4%26scisig%3DAFWwaeZUpMCFxHFbQRNOCmOd1EOf%26oi%3Dscholarr&ved=2ahUKEwiKoby6ldeLAxVDRmwGHePIBGoQgAN6BAgdEAE&usg=AOvVaw2GTxOyXJ1GouneuV6fc1Ac
4.https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://scholar.google.co.in/scholar_url%3Furl%3Dhttps://papers.ssrn.com/sol3/Delivery.cfm%253Fabstractid%253D4298723%26hl%3Den%26sa%3DX%26ei%3DCbS5Z42nJZqU6rQPv_ftkQw%26scisig%3DAFWwaeaXgqCMY5BKllNknyEQNeeI%26oi%3Dscholarr&ved=2ahUKEwjZ95HbldeLAxUcS2wGHd97JeEQgAN6BAgUEAE&usg=AOvVaw3ExuLKnJDh1mn5pjfGIxkK
5.https://timesofindia.indiatimes.com/
6.https://www.researchgate.net/publication/349077227_Comparative_Analysis_of_Agricultural_Domestic_and_Trade_Policies_in_India_and_in_the_European_Union
7.https://www.downtoearth.org.in/governance/farm-laws-effect-farmers-protests-in-india-increased-38-in-2020-after-3-years-of-decline-79407
8.https://frontline.thehindu.com/the-nation/how-new-farm-laws-2020-dont-help-impact-farmers/article33436593.ece
9.https://ijalr.in/volume-4-issue-3/farm-laws-and-farmers-rights-in-india-a-legal-analysis-neha-yadav-manish-tiwari/
10.https://www.legalserviceindia.com/legal/article-54
11.https://www.springerprofessional.de/structural-reforms-and-governance-issues-in-indian-agriculture/20218780
12.https://mises.org/mises-wire/corporatism-influential-farmers-india-oppose-profreedom-agricultural-reforms
13.https://www.theigc.org/blogs/conundrum-around-indias-new-agricultural-reforms-where-do-farmers-stand
14.https://www.oecd.org/en/publications/2011/10/evaluation-of-agricultural-policy-reforms-in-the-european-union_g1g13506.html
15.https://www.oecd.org/en/publications/evaluation-of-agricultural-policy-reforms-in-the-european-union_9789264112124-en.html
16.https://agriwelfare.gov.in/en/ActsAgriMkt
17.https://sustainableagriculture.net/our-work/campaigns/fbcampaign/what-is-the-farm-bill/
18.Sharma, K. (2020, December). India’s new farm laws: Reform, resistance, and the road to reconciliation. The Diplomat. Retrieved February 22, 2025, from https://thediplomat.com/2020/12/indias-new-farm-laws-reform-resistance-and-the-road-to-reconciliation/
19.BYJU’S. (n.d.). Farm Acts 2020 – Overview, Key Features, Concerns, Way Forward. BYJU’S Exam Prep. Retrieved February 22, 2025, from https://byjus.com/free-ias-prep/farm-acts-2020/
20.Rashtriya Samajwadi Research Review. (2021, May 8). A comparative inquiry into farm laws: Valuable lessons to be learnt. RSRR. Retrieved February 22, 2025, from https://www.rsrr.in/post/a-comparative-inquiry-into-farm-laws-valuable-lessons-to-be-
learnt
