Rajya Sabha passed the Agricultural Trade and Trade Bill 2020 and the Farmers’ Agreement on Price Insurance and Agricultural Services Bill 2020 on Sunday.
Speaking on the bills, Tomar said that the government of Prime Minister Narendra Modi has made several landmark decisions over the past six years to ensure that farmers get remunerative prices for their products and to increase their income and standard of living. . He again clarified that the supply at the minimum support price will continue, assurance has been given by PM Modi himself, the rate of MSP has been significantly increased in 2014-2020 and the MSP for the next season Rabi will be announced next week.
Modi said in Hindi on Twitter: “We are here to serve our farmers. We will do all we can to help contributors and ensure better lives for their future generations.”
The Union Minister of Agriculture has declared that full protection is guaranteed to farmers in these laws.
The Agricultural Trade and Trade (Promotion and Facilitation) Bill, 2020
Main provisions
- The new legislation will create an ecosystem where farmers and traders enjoy the freedom to choose how to sell and buy derivatives.
- It will also promote barrier-free interstate and intrastate commerce and commerce outside the physical premises of markets notified under national laws on the marketing of agricultural products.
- Farmers will not be charged any tax or tax for the sale of their products and will not have to bear the cost of transportation.
- The bill also proposes an electronic trading platform in transactions to ensure transparent electronic commerce.
- In addition to mandis, the freedom to trade on the farm, cold storage, warehouse, processing units, etc.
- Farmers will be able to engage in direct marketing, thus eliminating middlemen, which will lead to full realization of the price.
Clarifications
- Minimum support price purchases will continue, farmers will be able to sell their produce at MSP tariffs, MSP for the Rabi season will be announced next week
- Mandis will not stop working, trading will continue here as before. Under the new system, farmers will have the opportunity to sell their products to other places in addition to the mandis
- The e-NAM trading system will also continue in the mandis
- Trade in agricultural products will increase on electronic platforms. This will result in greater transparency and a saving of time.
Agreement with Farmers (Empowerment and Protection) on Agricultural Price Insurance and Services Bill, 2020
Main provisions
- The new legislation will allow farmers to engage with processors, wholesalers, aggregators, wholesalers, large retailers, exporters, etc., on an equal footing. Price insurance for farmers even before sowing. In the event of a higher market price, farmers will be entitled to this price in addition to the minimum price.
- This will transfer the risk of unpredictability of the market from the farmer to the developer. Due to the prior determination of prices, farmers will be protected from rising and falling market prices.
- It will also allow the farmer to access modern technology, better seeds and other inputs.
- This will reduce marketing costs and improve farmers’ incomes.
- An effective dispute settlement mechanism has been provided with clear deadlines for redress.
- A boost to research and new technologies in the agricultural sector.
Clarification
- The farmer will have full power in the contract to set a selling price of his choice for the product. They will receive payment within a maximum of 3 days.
- 10,000 agricultural producer organizations are being set up across the country. These FPO will bring together small farmers and work to ensure remunerative prices for agricultural products
- After signing the contract, the farmer will not have to look for traders. The purchasing consumer will collect the products directly from the farm
- In the event of a dispute, it will not be necessary to go to court several times. There will be a local dispute resolution mechanism.
