Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 replaces the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020.
Key Dates
– Introduced in Lok Sabha on 14 September, 2020.
– Passed by Lok Sabha on 14 September, 2020.
– Passed by Rajya Sabha on 20 September, 2020.
– President’s Ascent is still pending.
– After receiving assent of the President, the proposed act shall be deemed to have come into force on 5 June, 2020.
Highlights of the Bill
» The new legislation will let farmers and traders enjoy freedom of choice of sale and purchase of agri-produce.
» It will also promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislations.
» The Bill also proposes an electronic trading platform for ensuring a seamless trade electronically.
» The farmers will not be charged any cess or levy for sale of their produce under this Act.
» There will be a separate dispute resolution mechanism for the farmers.
» Farmers will be able to engage in direct marketing thereby eliminating intermediaries resulting in full realization of price.
Background
» Farmers in India suffered from various restrictions in marketing their produce. There were restrictions for farmers in selling agri-produce outside the notified APMC market yards.
» The farmers were also restricted to sell the produce only to registered licensees of the State Governments.
» Further, barriers existed in free flow of agriculture produce between various States owing to the prevalence of various APMC legislations enacted by the State Governments.
One India, One Agriculture Market
The Bill basically aims at creating additional trading opportunities outside the APMC market yards to help farmers get remunerative prices through competitive alternative trading channels. This will supplement the existing MSP procurement system which is providing stable income to farmers. It will certainly pave the way for creating One India, One Agriculture Market and will lay the foundation for ensuring golden harvests for our hard working farmers.
Benefits
» Enabling ecosystem: The new legislations would create an ecosystem where farmers and traders would enjoy the freedom of choice in the sale and purchase of agri-produce.
» Barrier free trade: It would also promote barrier-free interstate or intrastate trade and commerce outside the physical premises of markets notified under the state agricultural produce marketing legislations.
» More options for farmers: The bill would also open up more choices for farmers, reduce marketing costs and help them in getting better prices. In addition to mandis, the farmers will have the freedom to do trading at farmgate, cold storage, warehouse, processing units etc.
» Better prices & consumers: It will also help farmers of regions with surplus produce to get better prices in regions with shortages.
» Electronic trading platform: The bill has also proposed an Electronic Trading Transaction Platform to ensure seamless electronic trade.
» No fees to be levied by states: The Bill prohibits the state governments and APMCs from levying any market fee, cess, or any other charge on the trade of scheduled farmers’ produce outside the APMC notified markets.
» Dispute resolution mechanism: There will be a separate dispute resolution mechanism for the farmers.
The new laws are not shutting down APMC mandis, nor are they implying that MSPs will not be functional. Mandis will not stop functioning, trading will continue there as before. Under the new system, farmers will have the option to sell their produce at other places in addition to the mandis.
