The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 has been passed by the Parliament and it replaces the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020.
The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 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 the 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 Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 will come into force from 5th June, 2020.
Why The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 has been formulated by the government?
APMC Acts
The States have enacted the Agricultural Produce Market Committee (APMC) Acts to develop market-yard as market place and to provide regulation on marketing practices of notified agricultural produce. However, the regulatory provisions hindered the freedom of choice-based marketing and also the inflow of investment in development of alternative markets and marketing infrastructure
The Government of India had circulated the Model APMC Act, 2003 and the Model Agricultural Produce and Livestock Marketing (Promotion and Facilitating) Act, 2017 to the States to reform their APMC Acts with a view to:
- increase competitiveness in agriculture supply chain,
- provide freedom to farmers to sell their produce through alternative marketing channels to get the fair prices through the market framework under the State legislations.
Importance of Agriculture:
Agriculture not only meets the food security requirements of the country, but also provides raw material to the agro-industry which culminates into job creation and earning of foreign exchange through export.
Directly linking the agro-industry with the farmers:
- shortens the supply chain,
- reduces the marketing cost and post-harvest losses and
- enhances farmers’ income.
To keep pace with the dynamically changing agri-economy, e-commerce and agri-exports and also to meet the rising expectations of farmers and consumers, the country needs an accessible and competitive trading system outside the physical space of the notified market-yards under the State APMC Acts.
Thus, the Central Legislation will provide a more competitive and hassle free eco-system where farmers and traders have the choice to sell their produce in an efficient, transparent and competitive environment to realise remunerative prices
What are the main provisions of The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020?
- 1) The new legislation will create an ecosystem where the farmers and traders will enjoy freedom of choice of sale and purchase of agri-produce.
- 2) 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.
- 3) The farmers will not be charged any cess or levy for sale of their produce and will not have to bear transport costs.
- 4) The Bill also proposes an electronic trading in transaction platform for ensuring a seamless trade electronically.
- 5) In addition to mandis, freedom to do trading at farmgate, cold storage, warehouse, processing units etc.
- 6) Farmers will be able to engage in direct marketing thereby eliminating intermediaries resulting in full realization of price.
What are the doubts people have with respect to The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020?
The doubts people have with respect to The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 are:
- 1) Minimum Support Price:
- 2) APMC mandis:
- If farm produce is sold outside APMC mandis, these will stop functioning.
- 3) e-NAM:
- What will be the future of government electronic trading portal like e-NAM?
Clarification provided by the government:
- 1) MSP will Continue:
- Procurement at Minimum Support Price will continue, farmers can sell their produce at MSP rates.
- 2) APMC Mandis will continue:
- 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.
- 3) e-NAM will continue:
- 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.
References:
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1656929
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1657056
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1656953
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