Amidst much controversy, parliament today cleared the Farmer’s Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and the Framers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020.

Farmer in India were protesting against this Bill ever since it was tabled, as they are afraid of not being paid Minimum Support Price, of their produce/crops.

The Prime Minister and Agriculture Minister have assured that there will be no effect on MSP due to the alleged Bill. On September 17, 2020 the Rajya Sabha had already passed it and today the Lok Sabha has cleared it in spite of uproar and chaos. Although the law, this Bill seeks to enact is already in force by way of an ordinance.

The contesting issue of controversy is the Parliament is not authorized to make law on agriculture as it falls under the State List- Entry No.14 of the Schedule VII of the Indian Constitution.

It was strongly opposed being inclined to promote privatization of agriculture and black marketing, hoardings and profiteering.

Thus, it may cause damage to the interests of farmers and they may be easily become prey to profit making Corporates. Another argument put forth opposing the Bill is that it induces ‘sponsors’ as middle men for Contract Farming and hence, will not irradiate middle men in farming. It is alleged that  provisions contained in the said Bill are not competent enough to bring buyers in the market although it permits the farmers to trade all over the country. It only enables the farmers a window period of 30 days to file an appeal to the Appellate Authority, whereas, the companies are allotted 60 days for it. Replying to debate Agriculture Minister gave assurance that the legislations will benefit the farmers by boosting competition among traders and the farmers can bargain higher price for their produce. There will be a Registration Authority to provide e-registry and registration of farming agreements.

Provision of Farmer’s Produce Trade and promotion and facilitation Bill, 2020

  1. The bill allows the farmers for sale and purchase of their produce at remunerative prices through ‘Competitive alternative trading channels’ and will encourage interstate and intra state trade of farmers crops outside physical ambit of markets notified by different state legislations. It will be transparent, effective and free of obstacles.
  2. Companies, partnership firms, registered societies (having PAN), Farmer Produce Organisation, Agricultural Cooperative Society, are entitled to establish and operate and electronic and transaction platform. Electronic trading of scheduled farmer’s produce in specified areas will be permitted.
  3. The bill refrains State Governments from levying any market fees, cess or levy on farmer’s produce conducted in an outside trade area.

Farmer’s (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020

  1. The bill will empower farmers to engage with agri-business firms, processors, wholesalers, exporters or large retailers for farm services and sale of future farming produce at a mutually agreed ‘remunerative price’.
  2. The bill will provide national framework on farming agreements and empowers the farmers.
  3. Period of agreement will be one crop season or one production cycle of livestock.
  4. The bill has provision of registration authority for e-registry and registration of farming agreements and dispute settlement provisions, right to appeal to the Magistrate or Appellate authority and penalties on parties contravening the agreement.
This news has been reported and prepared by Ms. Urvi Yadav & reviewed by Ms. Samreen Ahmed, Research Assistant, Research & Innovation Department, MyLawman.