Priscilla
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, which were previously bills, became laws after receiving the President’s assent and being notified in the official gazette.
Many new changes have been introduced through these bills with the object and expectation that it would enhance the income of the farmers. The bills cannot be said to have been welcomed with delighted faces, as it is feared that the new changes would result in much worse situations, (which the lawmakers are convincing would never happen) provoking protests and riots. At the same time, the bills have been lauded as being ‘a watershed moment in history’ and being called as a beginning to ‘an unprecedented era towards the development of the agriculture sector’. Hence, as of now, only time will tell what results these laws will bring forth.
What changes do these laws bring ?
Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
The freedom of choice of the farmers to trade their produce anywhere within the territory of India, (intra-state and inter-state) beyond the physical premises of Agricultural Produce Market Committee (APMC) markets.
Prohibition of State Governments from levying any market fee, cess or levy outside APMC areas.
Reducing marketing/transportation costs thus helping farmers in getting better prices.
Providing a facilitative framework for electronic trading.
Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020
Farmers can enter into contracts with corporates, including agri-business firms, processors, wholesalers, exporters or large retailers by way of contract-farming, where the contract specifies the crops agreed upon to be grown and the remuneration for it.
Transferring the risk of market unpredictability from farmers to sponsors.
Enabling farmers to get access to modern tech and get better inputs.
Reducing the cost of marketing and boosting farmers’ incomes.
Farmers can engage in direct marketing and by way of eliminating intermediaries, realise the full price for their produce.
Effective dispute resolution mechanism with redressal timelines.
Marginal and small farmers, with land less than five hectare to gain via aggregation and contract (Marginal and small farmers account for 86% of total farmers in India)
Essential Commodities (Amendment) Act, 2020
Removal of commodities such as cereals, pulses, potatoes, onions, edible oilseeds, and oils from the list of essential commodities.
De-regulation of the Government’s power, by extending its control over the production, supply, distribution, trade and commerce of such foods, only under extraordinary circumstances and not otherwise.
Extraordinary circumstances include war, famine, extraordinary price rise (stock limits could be modified on 100% rise for horticulture products and 50% rise of non-perishable agricultural food items) and natural calamity of grave nature.
Bringing investment for farm infrastructure like cold storages and modernising the food supply chain.
Helping both farmers and consumers by bringing in price stability.
Creating competitive market environments thereby cutting wastage of farm produce.
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