Sakshi Education
By Srirangam Sriram, Sriram's IAS, New Delhi.
Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 and Essential Commodities (Amendment) Act, 2020 are a paradigm shift in the agricultural landscape in the country.
They are necessary 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 Act.
It has become necessary to enact Central legislation to provide a more competitive and hassle-free eco-system where farmers and traders have the choice to sell their products in an efficient, transparent and competitive environment to realise remunerative prices.
The new laws are expected to bring in big investment into agriculture by way of cold storage and other logistics.
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 provides for freedom of choice to the farmer or trader to conduct trade and commerce while any trader having a permanent account number (PAN) is allowed to buy directly from farmers in a trade area.
The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 allows farmers to get a share of post-contract price surge after they sign agreements of contract farming with private players. Also, they will have the cover of the minimum guaranteed price if open market/mandi rates fall drastically. Contract farming helps diversify into high value crops by using best practices.
The Essential Commodities (Amendment) Act, 2020 made changes to the Essential Commodities Act removing cereals, edible oil, oilseeds, pulses, onions and potato from its purview. The reforms are expected to help evacuate the surpluses from production zones to demand zones seamlessly, to the advantage of farmer-producers and players across the agriculture value chain, who have also been promised solid support by way of schemes and outlays to build infrastructure and logistical chains from farm-gate to the retail trade, and even exports.
The laws help the investor, trader, farmer and the consumer and the sector will achieve higher productivity and food wastage will be drastically reduced.
They are necessary 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 Act.
It has become necessary to enact Central legislation to provide a more competitive and hassle-free eco-system where farmers and traders have the choice to sell their products in an efficient, transparent and competitive environment to realise remunerative prices.
The new laws are expected to bring in big investment into agriculture by way of cold storage and other logistics.
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 provides for freedom of choice to the farmer or trader to conduct trade and commerce while any trader having a permanent account number (PAN) is allowed to buy directly from farmers in a trade area.
The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 allows farmers to get a share of post-contract price surge after they sign agreements of contract farming with private players. Also, they will have the cover of the minimum guaranteed price if open market/mandi rates fall drastically. Contract farming helps diversify into high value crops by using best practices.
The Essential Commodities (Amendment) Act, 2020 made changes to the Essential Commodities Act removing cereals, edible oil, oilseeds, pulses, onions and potato from its purview. The reforms are expected to help evacuate the surpluses from production zones to demand zones seamlessly, to the advantage of farmer-producers and players across the agriculture value chain, who have also been promised solid support by way of schemes and outlays to build infrastructure and logistical chains from farm-gate to the retail trade, and even exports.
The laws help the investor, trader, farmer and the consumer and the sector will achieve higher productivity and food wastage will be drastically reduced.Published date : 12 Dec 2020 05:56PM
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