Farm Bill 2020 : Centre introduced three farm bills

The Monsoon session of Lok Sabha passed the three agriculture bills which replaced the ordinances promulgated on 5th June 2020 –

1. The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020

2. The Farmers’ (Empowerment and Protection) Agreement of Price Assurance and Farm Service Bill, 2020

3. The Essential Commodities (Amendment) Bill, 2020

Union Minister of Agriculture & Farmers’ Welfare, Rural Development & Panchayati Raj, Shri Narendra Singh Tomar introduced “The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020” and “The Farmers’ (Empowerment and Protection) Agreement of Price Assurance and Farm Service Bill, 2020”, while Minister of State for Consumer Affairs, Food & Public Distribution, Shri Raosaheb Patil Danve introduced “The Essential Commodities (Amendment) Bill, 2020” in the Lok Sabha.

1. The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020

-> This bill based on Agri market.

-> Develop ecosystem where the farmers and traders enjoy their freedom of choice to sale and purchase of farm produce outside of state APMC Mandis.

-> Further to develop barrier-free inter-State and intra-State trade

-> It will reduce marketing costs for the farmers and help them to receive better prices.

-> It also proposes to develop an electronic trading platform.

-> The farmer will not be imposed any cess or levy for sale of their produce goods.

Objection: States will lose their revenue which generated through “mandis fees” if farmers sell their produce outside registered APMC markets. This impact on commission agents of states, MSP-based procurement system. Electronic trading system like “e-Nam” uses physical “mandi” system. What will happen to e-Nam if ‘mandis’ are demolished in absence of trading.

2. The Farmers’ (Empowerment and Protection) Agreement of Price Assurance and Farm Service Bill, 2020

-> This bill said about contract farming.

-> This will help to the farmer to enter into agreement with agri-business firms, processors, wholesalers, exporters or large retailers for sale of future farming produce at a pre-agreed price.

-> It will transfer the risk of market unpredictability from the farmer to the sponsor

-> The farmer can access modern technology and better inputs.

-> It will also reduce cost of marketing and improve income of farmers.

-> It will attract private sector financing for building supply chain and agriculture infrastructure.

-> Farmer will engage in direct marketing thereby eliminating intermediaries resulting in full realization of price.

Objection: Farmer who enters in contract farming will be the weaker players in terms of their ability to negotiate what they need. The Sponsor will not be deal with small and marginal farmers.

3.   The Essential Commodities (Amendment) Bill, 2020

-> It seeks to remove commodities like cereals, pulses, oilseeds, edible oils, onion and potatoes from the list of essential commodities.

-> It will attract private/FDI sector to enter into agriculture sector and also remove excessive regulatory interferences in their operations.

-> It will bring investment in agriculture infrastructure which is lack like cold storage, warehouse, processing and exports, and modernization of food supply chain.

-> It will bring price stability for both farmers and consumers.

-> It will develop competitive market atmosphere and cut wastage of farm produce.

Objection : Private companies will have the freedom to stock commodities which leads the farmer will get less price.  

Source :- Times of India, PIB

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