FARM BILL, KRISHI VIGYAN KENDRA, TAWANG

Need for Reform

Disparity between Agriculture & other sectors despite economic liberalisation.
Fragmented and insufficient markets with high market fees & charges.
Inadequate infrastructure and credit facilities.
Information asymmetry.
Restriction in licensing.
Farmer's Produce Trade and Commerce (Promotion and facilitation) Act, 2020.
Freedom of Choice of sale & purchase of farmers’ produce at remunerative prices.
Efficient transparent and barrier free inter and intra-state trade and commerce outside physical premises of APMCs.
APMCs will continue to function: Act provides farmers with additional marketing channels
No bearing on MSP.
Payment has to be made to farmers on the same day or within 3 working days where procedure so requires.
Permits online trading.

Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020

Legal framework for agreements between farmers and sponsors for purchase of farming produce and provision of farm services entered into before harvest.
Guidelines for model farming agreements by Central Government.
Price of the produce will be clearly mentioned in the contract.
Clearly specified dispute resolution mechanism: Protecting rights of both farmers and buyers

Essential Commodities (Amendment) Act, 2020.

Imposition of stock limits only be based on price rise and can only be imposed if there is 100% increase in retail price of horticultural produce and a 50% increase in the retail price of non-perishable produce

Benefits of Farm Reforms

Single unified market
Freedom for farmers to sell their produce to whom they want and where they want
End of APMC cartel monopoly
MSP continues to act as safety net for farmers
Legal framework protecting farmer rights
Reduction in market fees, taxes etc. and better price discovery
Development of infrastructure close to farm gate
Contract farming: Form of price assurance and boost linkages with food processing sector
Farming can become profitable even for small & marginal farmers

Benefits of Farm Reforms

Pangsau Pass 24 x 7