Farmers’ Produce Trade and Commerce (Promotion and Facilitation), bill 2020
Parliament passed two bills aimed at transforming agriculture in the country and raising farmers’ incomes. The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 which were passed by Lok Sabha on 17th September 2020, were passed by the Rajya Sabha.
Main provisions of the bill:
- The new legislation will create an ecosystem where the farmers and traders will 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 farmers will not be charged any cess or levy for sale of their produce and will not have to bear transport costs.
- The Bill also proposes an electronic trading in transaction platform for ensuring a seamless trade electronically.
- In addition to mandis, freedom to do trading at farmgate, cold storage, warehouse, processing units etc.
- Farmers will be able to engage in direct marketing thereby eliminating intermediaries resulting in full realization of price.
Issues:
- Procurement at Minimum Support Price will stop.
- If farm produce is sold outside APMC mandis, these will stop functioning.
- What will be the future of government electronic trading portal like e-NAM.
Clarification:
- Procurement at Minimum Support Price will continue, farmers can sell their produce at MSP rates, the MSP for Rabi season will be announced next week.
- Mandis will not stop functioning, trading will continue here as before. Under the new system, farmers will have the option to sell their produce at other places in addition to the mandis.
- The e-NAM trading system will also continue in the mandis.
- Trading in farm produce will increase on electronic platforms. It will result in greater transparency and time saving.
