After receiving the assent of the Lok Sabha, the Rajya Sabha today (September 20) passed 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.
The two bills are aimed at transforming agriculture in the country and raising farmers’ incomes.
Both the bills were introduced in Lok Sabha on 14th September 2020 by Union Minister of Agriculture & Farmers’ Welfare, Rural Development & Panchayati Raj, Shri Narendra Singh Tomar, to replace ordinances that were promulgated on 5th June 2020. Here are the salient features of both the bills:
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020
This bill is aimed at creating 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.
In addition to mandis, freedom to do trading at farmgate, cold storage, warehouse, processing units etc.
The Bill also proposes an electronic trading in transaction platform for ensuring a seamless trade electronically.
Farmers will be able to engage in direct marketing thereby eliminating intermediaries resulting in full realization of price.
The government has clarified that Procurement at Minimum Support Price will continue and farmers can sell their produce at MSP rate. The MSP for Rabi season will be announced next week.
Mandis will continue to function and trading will continue as before. Under the new system, farmers will have the option to sell their produce at other places in addition to the mandis.
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.
The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020
This bill will encourage farmers to engage with processors, wholesalers, aggregators, wholesalers, large retailers, exporters etc., on a level playing field. Price will be assured 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 also enable the farmer to access modern technology, better seed and other inputs.
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.
Effective dispute resolution mechanism has been provided for with clear time lines for redressal.
Impetus will be given to do research and implement new technology in agriculture sector.
The farmer will have full power in the contract to fix a sale price of his choice for the produce. They will receive payment within maximum 3 days.
10000 Farmer Producer organizations are being formed throughout the country. These FPOs will bring together small farmers and work to ensure remunerative pricing for farm produce
After signing contract, farmer will not have seek out traders. The purchasing consumer will pick up the produce directly from the farm
In case of dispute, there will be no need to go to court repeatedly. There will be local dispute redressal mechanism.
The two bills will now be sent for President’s assent to become an Act.