The President of India to reform agriculture sector and boost rural farmers engaged in agriculture and allied activities passed two ordinance namely ‘The Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020 and ‘The Farmers’ (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance 2020. The Ordinances are passed in view of Union Government’s decision for reform in the agriculture sector for raising the income of the farmers as part of Aatmanirbhar Bharat Abhiyan.
The Farmer’s Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020: It will allow the creation of an ecosystem in which farmers and traders can enjoy the freedom to sell and buy agricultural products, thereby facilitating remuneration prices through competitive alternative trading channels. It will promote efficient, transparent and accessible interstate and intra-state trade in agricultural products by farmers produce outside the establishment of markets or deemed markets under various state market regulations. The regulations will also provide a framework for electronic commerce related to agriculture.
The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance 2020: It will provide a national framework on farming agreements which protect and empower farmers who are involved in agri-business firms, processors, wholesales etc. for farm services and sale of produce at a mutual price framework which will be done in fair and transparent manner.
The Ordinances are passed with a view to provide farmers an opportunity to sell their agricultural produce at a place of their choice at a better price by increasing the number of prospective buyers. To prevent the mala-fide development of marketing of agricultural, the Central Government drafted and circulated Model Agriculture Produce and Livestock Marketing (APLM) Act 2017 and Model Agriculture Produce and Livestock Contract Farming Act of 2018, for adoption by the states.
The COVID-19 crisis made Central Government to realize the need to improve agriculture produce trade in both intra-state and interstate. The Ordinance is likely to improve the state of farmers in the country and boost their income. Agriculture sectors indeed play a significant contribution in economy and it is must for economic development of any country.
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