Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020

The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 is an act of the Indian Government [1] that permits intra-state and inter-state trade of farmers’ produce beyond the physical premises of Agricultural Produce Market Committee (APMC) market yards (mandis) and other markets notified under state APMC Acts.[2][3]

Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
Parliament of India
CitationAct No. 21 of 2020
Territorial extentIndia
Considered byParliament of India
Enacted byLok Sabha
EnactedSeptember 17, 2020 (2020-09-17)
Enacted byRajya Sabha
EnactedSeptember 20, 2020 (2020-09-20)
Signed27 September 2020
Signed byRam Nath Kovind
President of India
Legislative history
Bill introduced in the Lok SabhaFarmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020
Bill citationBill No. 113 of 2020
Bill published onSeptember 17, 2020 (2020-09-17)
Introduced byNarendra Singh Tomar
Minister of Agriculture and Farmers Welfare
Status: Halted

The Act was collectively passed as part of the 2020 Farm Bills.

Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act

This Act, along with the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, was promulgated by the Union Cabinet on 5 June 2020. The Lok Sabha approved the bills on 17 September 2020,[4] and Rajya Sabha on 20 September 2020.[5]

Provisions

Prior to the 2020 legislation, agricultural trade in India could only be conducted in APMC market yards (mandis). This Act, however, allows trading in "outside trade areas"—such as farm gates, factory premises, warehouses, silos, and cold storages—and prohibits state governments from levying any market fee or cess on farmers, traders, and electronic-trading platforms for trading the produce of farmers in such areas.[6]

The Act seeks to facilitate lucrative prices for farmers through competitive alternative trading channels to promote barrier-free inter-state and intra-state trade of agriculture goods.[7] It also permits the electronic trading of farmers' produce in the specified trade area, facilitating direct and online buying & selling of such products through electronic devices and internet.

Criticism

The Act bypasses the Agricultural Produce Market Committee altogether, creating a separate structure of trading. Before the Act, state governments levied taxes for agricultural produce that was bought outside the designated APMC mandi; this Act prohibits this and creates an incentive for buyers to purchase products outside the regulated APMC mandi.

The new Bills give the impression that farmers had unnecessary restrictions to trade freely for agricultural products, and mandis were the designated space for all transactions.[8] Accordingly, the amendment of the APMC Act, and the ensuing political uproar, are mostly significant for farmers in Punjab and Haryana, where mandis are the central place of transaction.[8] In contrast, NSSO data from a 2012–13 "situation assessment survey" of farmers reveals that most households in India sell off their crops through private traders or input dealers, rather than mandis or cooperatives.

Dilip Mohite Patil, who is the president of the Maharashtra Rajya Bazaar Samiti Sahakari Sangh, a federation of Maharashtra's 306 APMCs, claimed that around 100-125 market committees in the Vidarbha and Marathwada regions have reported almost no business and are on the verge of closure after the central ordinance was announced.[9]

Food Processing Industries Minister Harsimrat Kaur Badal of Shiromani Akali Dal resigned from her post in protest against the bills.[10] Farmers all over the country have held protests against the bills.[6][11]

See also

References
  1. Parliament, Indian. "Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020" (PDF). egazette.nic.in. Retrieved 26 December 2020.
  2. "India Approves Ordinance To Allow Farmers To Freely Sell Produce". BloombergQuint.
  3. "Explained: What are the three new agri sector bills and how will they benefit the farmers | All you need to know". Jagran English. 18 September 2020.
  4. "Lok Sabha passes two agriculture sector bills amid protests". Zee News. 17 September 2020. Retrieved 25 September 2020.
  5. "2 farm bills clear Rajya Sabha hurdle amid protests". Hindustan Times. 20 September 2020. Retrieved 25 September 2020.
  6. "The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020". PRSIndia. 14 September 2020.
  7. Bhandari, Shashwat (17 September 2020). "What are the 3 new farm Bills: Benefits for farmers, all you need to know". www.indiatvnews.com.
  8. Mazumdar, Monojit Bhattacharya / Mainak. "Can free-trade and corporate farming improve farmer income?". @businessline. Retrieved 4 December 2020.
  9. "Central law removing mandi tax: Traders, mandi operators spar, call for bandh". The Financial Express. 21 August 2020. Retrieved 28 November 2020.
  10. "President accepts Harsimrat Kaur Badal's resignation". The Hindu. 18 September 2020.
  11. "Farmers protest against farm Bills in many States". The Hindu BusinessLine. 25 September 2020.
  12. Ministry of, Agriculture. "Farmer's Produce Trade and Commerce Promotion and Facilitation Act , 2020 Rules" (PDF). agricoop.nic.in. Retrieved 26 December 2020.
  • Ajay Shah (7 February 2021). The Tragedy of Our Farm Bills (interview podcast). The Seen and the Unseen with Amit Verma. 58 minutes in. Episode 211. Retrieved 7 February 2021.
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