FARMER Cabinet has promulgated three ordinances to reform the agricultural sector.
This reform process is a part of the Government’s economic package announced by the Finance Minister earlier.
“Farmers have been freed from the constraints of the Agriculture Produce Marketing Committee (APMC),” said, Union minister, Prakash Javedkar.
In a move to raise farmer’s income and promote investments in this sector, the cabinet of the central government introduced a set of ordinances on the 03rd of June 2020. This aimed at creating a single market nationwide for farmers and as well allow contract farming so that harvesters could be protected from FARMER price fluctuations. It is seen as a part of government determination to double the annual data’s income by the year 2022. This will also be helpful in creating a market irrespective of state boundaries.
The cabinet has given its approval to the ‘Farming Produce Trade and Commerce (Facilitation and Promotion) Ordinance, 2020,’ which the ministers claimed that will lead to the creation of ‘One India, one agriculture market’. Once the ordinance is made operative, cultivators can transact their produce FARMER intrastate or inter-state without any restrictions to the buyer of their choice on either physical or digital platforms.
Presently, it is coercive for farmers to sell their harvest “at state-regulated market yards, also known as Agriculture Produce Market Committees (APMCs).” The prices of the produce at this mandis are determined by the traders aka middlemen who most often underpay the cultivators. These restrictions FARMER also creates a barrier in the free flow of products between various states. Under the new modus operandi, farmers are freed from the clutches of this state markets and have the liberty to transact with the buyer of their choice. Narendra Tomar, Agriculture minister, said, “There will be no tax on such trade and buyers will not require a license (a PAN card will suffice).
” ‘The Farmer’s (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020,’ was also authorized by the cabinet to push contract farming so that the weight of risk could be passed from small farmers to larger corporations or entities. “In a situation where the contracted price is lower than the market price during delivery of produce, the ordinance will ensure that farmers receive a share of the higher prices,” said the agriculture minister. But these ordinances largely remain on State’s discretion as the Constitution of India places APMC under the state list. Previously, states have imposed restrictions on agricultural trade keeping in mind the interests of consumers, particularly during lean seasons.