Union Cabinet on June 3, 2020 approved ‘The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020’.
- The ordinance basically aims at creating additional trading opportunities outside the APMC market yards to help farmers get remunerative prices due to additional competition. This will supplement the existing MSP procurement system which is providing stable income to farmers.
- The Ordinance will create an ecosystem where the farmers and traders will enjoy freedom of choice of sale and purchase of agri-produce.
- It will also promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislations.
- It will open more choices for the farmer, reduce marketing costs for the farmers and help them in getting better prices.
- It will also help farmers of regions with surplus produce to get better prices and consumers of regions with shortages, lower prices.
- The ordinance also proposes an electronic trading in transaction platform for ensuring a seamless trade electronically.
- 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.
Reasons
- Farmers in India today suffer from various restrictions in marketing their produce.
- There are restrictions for farmers in selling agri-produce outside the notified APMC market yards.
- The farmers are also restricted to sell the produce only to registered licensees of the State Governments.Further, Barriers exist in free flow of agriculture produce between various States owing to the prevalence of various APMC legislations enacted by the State Governments.
