The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020.
The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020.
Essential Commodities (Amendment) Act, 2020.
The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
Freedom to the Agricultural Marketing: The Act provides the farmers the freedom of choice related to sale and purchase of produce.
No Cess for Farmers: It prohibits state governments from levying any market fee, cess, or levy on farmers, traders, and electronic trading platforms
for the trade of farmers’ produce conducted in an ‘outside trade area’.
Promotes trade outside Market : It promotes barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets
notified under State APMCs.
The act seeks to break the monopoly of government-regulated mandis and allow farmers to sell directly to private buyers.
Better price Expected for Farmers: It will open more choices for the farmer, reduce marketing costs for the farmers and help them in getting better prices.
One nation, one market: The Act will help create One India, One Agriculture Market and will lay the foundation for ensuring better income for the farmers.
The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020
The act aims to provide for a national framework on contract farming and farming agreements that protects and empowers farmers to engage with
agri-business firms, processors, wholesalers, exporters or large retailers for farm services.
The written farming agreement, entered into prior to the production or rearing of any farm produce, lists the terms and conditions for supply, quality,
grade, standards and price of farm produce and services.
No Market Risk on Farmers: It will transfer the risk of market unpredictability from the farmer to the sponsor and also enable the farmer to access modern
technology and better inputs.
Private Sector into Agriculture: This legislation permits private sector investment for building supply chains for supply of Indian farm produce to national
and global markets, and in agricultural infrastructure.
Eliminates intermediaries: Farmers will engage in direct marketing thereby eliminating intermediaries resulting in full realization of price.
It defines a dispute resolution mechanism. The Act provides for a three-level dispute settlement mechanism– Conciliation Board, Sub-Divisional
Magistrate and Appellate Authority.
Amendments to Essential Commodities Act (1955)
The imposition of the restrictions on stocking of farm produce and regulation of the prices of commodities, etc. under Essential Commodities Act (ECA)
are responsible for less entrepreneurial spirit and thus less investment in the farm sector.
It removes cereals, pulses, oilseeds, edible oils, onions and potatoes from the list of essential commodities. It will deregulate the production, storage,
movement and distribution of these food commodities.
It will also remove stockholding limits on such items except under “extraordinary circumstances”. The central government is allowed regulation of supply
during war, famine, extraordinary price rise and natural calamity of grave nature and annual retail price rise exceeding 100% in horticultural produce (basically onions and potatoes) and 50% for non-perishables (cereals, pulses and edible oils), while providing exemptions for exporters and processors at such times as well.
It will allow agribusinesses to stock food articles and remove the government’s ability to impose restrictions arbitrarily. The freedom to produce, hold, move,
distribute and supply will attract private sector/foreign direct investment into the agriculture sector.
It will help drive up investment in cold storages and modernization of the food supply chain.
It will also create a competitive market environment and also prevent wastage of agri-produce that happens due to lack of storage facilities.
It is considered as a step towards transformation of agriculture and raising farmers’ income.