Lok Sabha passes two bills aiming to promote farmers’ welfare
Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and The
Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm
Services Bill, 2020 were introduced in Lok Sabha on 14th September 2020 by
Union Minister of Agriculture & Farmers’ Welfare, Rural Development &
Panchayati Raj, Shri Narendra Singh Tomar, to replace ordinances promulgated on
5th June 2020.
Replying to the
discussion on the Bills before they were passed by the Lok Sabha today, Shri
Narendra Singh reassured emphatically that while farmers will now be freed from
the restrictions of having to sell their produce at designated places only, the
procurement at Minimum Support Price will continue and mandis established under
State laws will also continue to operate.
The Farmers' Produce Trade and Commerce (Promotion and Facilitation)
Bill, 2020 provides to the farmers freedom of choice relating to sale and
purchase of farmers' produce
Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 seeks to
provide for the creation of an ecosystem where the farmers and traders enjoy
the freedom of choice relating to sale and purchase of farmers' produce which
facilitates remunerative prices through competitive alternative trading
channels to promote efficient, transparent and barrier-free inter-State and
intra-State trade and commerce of farmers' produce outside physical premises of
markets or deemed markets notified under various State agricultural produce
market legislations; to provide a facilitative framework for electronic trading
and for matters connected therewith or incidental thereto.
The Bill also
proposes an electronic trading in transaction platform for ensuring a seamless
Farmers will not be charged any cess or levy for sale
The farmers will
not be charged any cess or levy for sale of their produce under this Act.
Further there will be a separate dispute resolution mechanism for the farmers.
One India, One Agriculture Market
The Bill basically
aims at creating additional trading opportunities outside the APMC market yards
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
The Farmers (Empowerment and Protection) Agreement of Price Assurance
and Farm Services Bill, 2020 provides a national framework on farming
(Empowerment and Protection) Agreement of Price Assurance and Farm Services
Bill, 2020 seeks to provide for a national framework on farming agreements that
protects and empowers farmers to engage with agri-business firms, processors,
wholesalers, exporters or large retailers for farm services and sale of future
farming produce at a mutually agreed remunerative price framework in a fair and
transparent manner and for matters connected therewith or incidental thereto.
This legislation will act as a catalyst to attract private sector
will act as a catalyst to attract private sector investment for building supply
chains for supply of Indian farm produce to national and global markets, and in
agricultural infrastructure. Farmers will get access to technology and advice
for high value agriculture and get ready market for such produce.
engage in direct marketing thereby eliminating intermediaries resulting in full
realization of price. Farmers have been provided adequate protection. Sale,
lease or mortgage of farmers’ land is totally prohibited and farmers’ land is
also protected against any recovery. Effective dispute resolution mechanism has
been provided for with clear time lines for redressal.