Govt gives nod to two ordinances paving way towards transformation of agriculture sector

The Union Cabinet yesterday approved The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020.

The ordinance will create an ecosystem where the farmers and traders will enjoy freedom of choice of sale and purchase of agri-produce.  

The ordinance basically aims at creating additional trading opportunities outside the Agricultural Produce Market Committee-APMC market yards to help farmers get remunerative prices due to additional competition.

This will supplement the existing Minimum Support Price procurement system which is providing stable income to farmers. It will pave the way for creating One India, One Agriculture Market.

Addressing media after the Cabinet meeting, Agriculture Minister Narendra Singh Tomar said that this will promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislations.

He said, this is a historic-step in unlocking the vastly regulated agriculture markets in the country.

Mr Tomar said, the Ordinance will help open more choices for the farmer, reduce marketing costs for the farmers and help them in getting better prices.

Mr Tomar also said, the farmers will not be charged any cess or levy for sale



of their produce under this Act.

Further, there will be a separate dispute resolution mechanism for the farmers.

The Union Cabinet also approved The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020.

The ordinance will empower farmers for engaging with processors, aggregators, wholesalers, large retailers and  exporters on a level playing field without any fear of exploitation.

It will transfer the risk of market unpredictability from the farmer to the sponsor and also enable the farmer to access modern technology and better inputs.

It will reduce cost of marketing and improve income of farmers.  

Briefing media in New Delhi, Agriculture Minister Narendra Singh Tomar said, farmers have been provided adequate protection.

Sale, lease or mortgage of farmers’ land is totally prohibited and farmers’ land is also protected against any recovery.

Effective dispute resolution mechanism has been provided for with clear time lines for redressal.

       

This Ordinance will act as a catalyst to attract private sector investment for building supply chains for supply of Indian farm produce to global markets.