Monday, December 21, 2020

FARM BILL 2020

In 2017, the central government had released model farming acts. The Standing Committee on Agriculture (2018-19), however, noted that a number of reforms suggested in the model acts had not been implemented by the states. In particular, the Committee found that the laws that regulated Indian agricultural markets (such as those related to Agricultural Produce Market Committees or APMCs) were not being implemented fairly and honestly or serving their purpose. Centralisation was thought to be reducing competition and (accordingly) participation, with undue commissions, market fees, and monopoly of associations damaging the agricultural sector.

There are three Acts introduced under Farm Bill 2020

The three acts include:

  1. Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
    • expands the scope of trade areas of farmers' produce from select areas to "any place of production, collection, aggregation".
    • allows electronic trading and e-commerce of scheduled farmers' produce.
    • prohibits state governments from levying any market fee, cess or levy on farmers, traders, and electronic trading platforms for trade of farmers' produce conducted in an 'outside trade area'.
  2. Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020
    • provides a legal framework for farmers to enter into pre-arranged contracts with buyers including mention of pricing.
    • defines a dispute resolution mechanism.
  3. Essential Commodities (Amendment) Act, 2020
    • removes foodstuff such as cereals, pulses, potato, onions, edible oilseeds and oils, from the list of essential commodities, removing stockholding limits on such items except under "extraordinary circumstances"
    • requires that imposition of any stock limit on agricultural produce be based on price rise

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