PROVISIONS OF NEW Farm ACTS 2020


 PROVISIONS OF NEW Farm ACTS 2020

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill 2020 or the Market Place Law: According to the new market place law, farmers can sell their produce anywhere not just in the APMC approved mandis or market places but literally anywhere i.e., they can sell inside the state, outside the state, or if they wish they can also sell it online. Which means according to union government this law is been brought in to give freedom of choice to farmers for which they will have a variety of marketplaces. The government says, this is actually going to do well to them because they can choose from several options.

The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill 2020 or the Contract Farming Law: Farmers can enter into ‘written agreements’ with anyone, including a company, and sell them their produce for a set period of time, as per the contract. In other words, companies can now have contracts with farmers for buying their produce. They can set the price for the produce depending on the standards and qualities and other legalities that can be mentioned beforehand. The Union government says that this facility will protect and empower farmers to sell to anyone—a whole seller, a retail giant or an exporter. They will have written contracts which will protect the farmer in case the buyer tries to cheat them. And they can also sell their future produce through contract–even today, according to the government.

The Essential Commodities (Amendment) Bill 2020 or Essential Commodities Amendment: Essential Commodities Act was first brought in decades back in 1955. The Act basically controls the production, supply and the distribution of certain commodities that are known to be essential. So if an item comes under this Act, for instance, a food item or an important drug, then companies and supermarkets cannot hoard these items when there is a shortage, they also cannot artificially increase the prices, etc. The list of essential commodities as per the original act includes: Drugs (medicines); Fertilizers (inorganic, organic, mixed); Foodstuff (including edible oilseeds and oils); hank yarn made wholly from cotton; Petroleum and petroleum products; Raw jute and jute textiles; Seeds (food crops, fruits and vegetables, cattle fodder and jute seeds).

The new amendment has removed food stuff such as Potato, Cereals, Pulses, edible oilseeds and oils, from the list of essential commodities which means unless there is a dire circumstances like a war or famine or an extraordinary price rise, these commodities will not be considered under the essential commodities list. Further, the government cannot impose a stock limit i.e. it cannot stop a supermarket chain or a retailer from hoarding unless there is a 100% (percent) increase in price of perishable goods or 50% (percent) increase in price of non-perishable goods. All items removed from essential commodities act are: Rice, Wheat, Potatoes, Onions, and Oil.

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