THE FARMER’S PRODUCE TRADE AND COMMERCE BILL, 2020
Two of the three agriculture-related legislation directed by the Narendra Modi
government, aimed at liberalizing the farm sector, were passed by the Rajya Sabha which are
Farmer’s Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and the
Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020, some of the provisions of the first bills were ,Farmers are free to sell their produce to
anybody, anywhere. Removes all barriers for intra and inter-state trade in agricultural produce.
It supports seamless electronic trade . It reduces transportation costs and help farmers in
getting better price.
The above bill which has passed created a havoc in the parliament since many
politicians were against it. Opposition parties felt the bills were the first step toward removing
the Minimum Support Price which will force the farmers to make distress sales to private
companies. These newly passed bills threatens the commission agents operating between
farmers and consumers as they fear that they might lose their commission. The question
aroused if the above Bills will contribute in farmers income, and will it lessen suicide amongst
farmers. Electronic trading like E-NAM uses physical ‘mandi’ structure. What will happen to e-
NAM if ‘mandis’ are destroyed in absence of trading. While the Bill supporters felt that the
newly passed agriculture bills in India will accelerate growth in the agricultural market through
investment from private sectors and supply of agro products in national as well as international
markets. The supporters even said that the bills would transform the agriculture sector. It
would also raise the farmers’ income, and said that the Bills will make the farmer independent
of government controlled markets and fetch them a better price for their produce.
The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm ServicesBill, 2020.
Rajya Sabha on Sunday passed two farm bills which have triggered protest by
farmers at several places and chaos by opposition party. The Provisions of the second bills were
Farmers could enter into a contract with agri-business firms, processors, wholesalers, exporters
or large retailers for sale of future farming produce at a pre-agreed price. Can transfer the risk of
market unpredictability from the farmer to the sponsor. Enables farmers to access to modern
technology and get better inputs. Also reduces cost of marketing and boost farmer’s income and
Provides Effective dispute resolution mechanism with redressal timelines.
The above bill has got number of upholders as well as few non supporters. The
government has repeatedly said that these bills will revolutionarise the lives of the farmers in
India, asserting that Minimum Supply Price will always continue. It has further asserted that
these bills will help the farmers to get connected to big traders and exporters, bringing profit to
agriculture in a fair and transparent manner. Supporters even mention how the farmers’ policy
has come after a long time As in 1991 when the country saw liberalisation, it missed bringing
agriculture reforms. While on the other hand non-supporters points out that sponsors may not
like to deal with a multitude of small marginals. Farmers in contract farming preparations
would be the weaker gamers in phrases of their capability to barter what they want. The non-
supporters even throws few light towards government how they are taking the farmers’ land to
benefit their capitalist friends, whether is the Land Acquisition Act, or in the industrial system
through weakening the labour courts by these bills. (one related to APMC and related to
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