Speed Post News Network
New Delhi : Parliament on September 20, 2020, passed two bills aimed at transforming agriculture in the country and raising farmers’ income. 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 September 17, 2020, were passed by the Rajya Sabha also on September 20, 2020.
The Bills were introduced in Lok Sabha on September 14, 2020, by Union Agriculture & Farmers’ Welfare, Rural Development & Panchayati Raj Minister Narendra Singh Tomar, to replace ordinances promulgated on June 5, 2020.
Speaking about the Bills, Tomar said that the Government under Prime Minister Narendra Modi has taken several landmark decisions in last six years to ensure that farmers get remunerative prices for their produce, and for raising farmers’ incoms and livelihood status. He again clarified that the procurement at Minimum Support Price (MSP) will continue, assurance for this has been given by Prime Minister himself, rate of MSP has been increased considerably during 2014-2020 and MSP for coming Rabi season will be announced in coming week. He said that full protection has been ensured to farmers in these legislations.
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 : Main provisions –
- 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 realisation of price.
The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 – Main provisions –
- The new legislation will empower farmers for engaging with processors, wholesalers, aggregators, large retailers, exporters etc., on a level playing field. Price assurance to farmers even before sowing of crops. In case of higher market price, farmers will be entitled to this price over and above the minimum price.
- It will transfer the risk of market unpredictability from the farmer to the sponsor. Due to prior price determination, farmers will be shielded from the rise and fall of market prices.
- It will also enable the farmer to access modern technology, better seed and other inputs.
- It will reduce cost of marketing and improve income of farmers.
- Effective dispute resolution mechanism has been provided for with clear time lines for redressal.
- Impetus to research and new technology in agriculture sector.