The President of India on June 5, 2020 promulgated ‘The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance” with an aim of giving a boost to rural economy and to help farmers. The ordinance has amended the six-decade-old Essential Commodities Act.
Provisions of Ordinance
1. Any farmer or trader shall have a freedom to carry on inter-state or intra-state trade and commerce in farmers’ produce in a trade area.
2. A commercial buyer of farm produce will only need a permanent account number or PAN and no licence or other documentation to enter into a transaction.
3. A buyer will have to pay a farmer within three days and in the meantime give the farmer a revenue stamped money receipt.
4. Such transaction will not be subject to any taxes or levy at the point of sale.
5. In case of any dispute, the parties (farmer or trader) can directly approach to Sub-Divisional Magistrate who shall refer such dispute to a conciliation board to be appointed by him.
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