Two New Farm Bill Introduced

Why in News?

Two New Farm Bill Introduced aimed at transforming agriculture in the country and raising farmers’ income were passed by Lok Sabha.

• The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020
• The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 

Two New Farm Bill Introduced

Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020

• This Bill replaces the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020.
• Provide for the creation of an ecosystem where the farmers and traders enjoy the freedom of choice relating to sale and purchase of farmers’ produce.
• Facilitates remunerative prices through competitive alternative trading channels to promote efficient, transparent and barrier-free inter-State and intra-State trade.
• To provide a facilitative framework for electronic trading and for matters connected therewith or incidental thereto.
• Trade of farmers produce
  • Intra-state and inter-state trade of farmers’ produce outside
    • Physical premises of market yards run by market committees formed under the state APMC Acts
    • Other markets notified under the state APMC Acts.
• Electronic trading
  • Permits the electronic trading of scheduled farmers’ produce in the specified trade area.
  • An electronic trading and transaction platform may be set up to facilitate the direct and online buying and selling of such produce through electronic devices and internet.
  • Following entities may establish : 
    • Companies, partnership firms, or registered societies.
    • Farmer producer organisation or agricultural cooperative society.
• Market fee abolished 
  • • Prohibits state governments from levying any market fee, cess or levy on farmers, traders, and electronic trading platforms for trade of farmers produce.
• How it benefit ?
  • Promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislation.
  • This is a historic-step in unlocking the vastly regulated agriculture markets in the country.
  • More choices for the farmer, reduce marketing costs for the farmers and help them in getting better prices
  • Help farmers of regions with surplus produce to get better prices and consumers of regions with shortages, lower prices.
  • Electronic trading in transaction platform for ensuring a seamless trade electronically.
  • No cess or levy for sale of their produce under this Act. 

Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020

• To provide for a national framework on farming agreements that protects and empowers farmers to engage with agri-business firms, processors, wholesalers, exporters or large retailers for farm services
• Sale of future farming produce at a mutually agreed remunerative price framework in a fair and transparent manner and for matters connected therewith or incidental thereto.
• Farming agreement
  • The Ordinance provides for a farming agreement between a farmer and a buyer prior to the production or rearing of any farm produce.
  • Duration of Agreement
    • The minimum period of an agreement will be one crop season, or one production cycle of livestock.
    • The maximum period is five years, unless the production cycle is more than five years.
• Pricing of farming produce
  • The price of farming produce should be mentioned in the agreement.
  • For prices subjected to variation, a guaranteed price for the produce and a clear reference for any additional amount above the guaranteed price must be specified in the agreement.
  • The process of price determination must be mentioned in the agreement.
• Dispute Settlement
  • A farming agreement must provide for a conciliation board as well as a conciliation process for settlement of disputes.
    • The Board should have a fair and balanced representation of parties to the agreement.
    • All disputes must be referred to the board for resolution.
      • If the dispute remains unresolved by the Board after thirty days, parties may approach the Sub-divisional Magistrate for resolution.
      • Appeal to an Appellate Authority against decisions of the Magistrate.
      • Required to dispose of a dispute within thirty days from the receipt of application.
• How it benefit ?
  • Empower farmers for engaging with processors, wholesalers, aggregators, wholesalers, large retailers, exporters etc. without any fear of exploitation.
  • Transfer the risk of market unpredictability from the farmer to the sponsor.
  • There will be a separate dispute resolution mechanism for the farmers.

What happens to Agricultural Produce Marketing Committee (APMC) Act ?

• These bills do not affect the State APMC Act.
• APMC will be in the state but there will be inter-state trade outside its periphery.
• The farmers will be able to sell their produce from their field, home and any place after the legislation comes into existence.

What are the concerns ?

• Concern that the Centre will end the current system of open-ended FCI procurement.
  • Farmers in Punjab think that the Food Corporation of India (FCI) and other central agencies will shut down annual wheat and rice purchases from the states
  • Thus leaving them at the mercy of traders predatory practices.
• The repeated assurances that the MSP will continue are being called deceptive by various farmers collectives.
• A shift towards further corporatisation of the farming industry since this sector shown an improvement during the nation wide lock down.

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Source : PIB

Topic

GS II : Government policies and interventions for development in various sectors and issues arising out of their design and implementation

GS III : Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing

Current Affairs Compilation : 18 September 2020