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DATE: 23 SEPTEMBER, 2020 || NEWS UPDATE

                             #KNOW THE FACT!

FARM BILL [AGRICULTURE BILL 2020]





 THE FARMERS PRODUCE TRADE AND COMMERCE [PROMOTION AND FACILITATION] BILL, 2020

It allows barriers free intra and inter state trade of farm produce means farmers from any state are not bound to sell their crops in that particular state from now onward they are free to sell anywhere in the country e.g farmers of West Bengal are not be able to sell their crops in Odisha in whatever situations because of barrier that has been imposed by state government. This Bill allows farmers to sell their crops and with no state government involvements. Farmers will not be charged any cess or levy for sale of their produce under this Act. 

PROS

It will disclose more options for farmers, marketing cost will be down and help them get better prices. It will also help farmers of regions with excess produce toget better prices and consumers in areas with shortages at lower prices. Previously farm produce was sold at notified  wholesale markets run by the ~7000 AGRICULTURE PRODUCE MARKETING COMMITTEES [APMCs]. Each APMCs has licensed middlemen who would buy from farmers -at prices set by auction before selling to institutional buyers like retailers and big traders. Farmers can sell there produce directly to the relevant institutional by just ignoring the middleman. 

CONS

States will lose revenue as they will not be able to collect 'mandi' fees if farmers sell their produce outside registered Agriculture Produce Market Committee(APMC) markets. Also, commission agents stand to lose if the entire farm trade moves out of 'mandis'. But, more importantly, farmers and opposition parties fear it may eventually lead to the end of the MINIMUM SUPPORT PRICE[MSP] based procurement system and may lead to exploitation by private companies. Under existing system, such charges in states like Punjab come to around 8.5%- a market fees of 3%, rural development charges of 3% and the arhatiyas commission of about 2.5% 

THE FARMERS [EMPOWERMENT AND PROTECTION] AGREEMENT ON PRICE ASSURANCE AND FARM SERVICES BILL, 2020

This law seeks to give farmers the rights to enter into agreement/contract with agri firms, exporters and large buyers to produce a crop for a pre-agreed price, it means that with the consent of both the price will be decided first for example they both agreed on 2000 Rs for some crop and when times arrived then the crop will be delivered on the agreed price irrespective of the market price whether it will be profitable or not.
  
PROS
 
Obviously there could be transfer of risk of market unpredictability from farmers to sponsors because no one knows what will be the market price in the near future of that crop. It will also boost up the farmers income by reducing the cost of marketing. 

CONS

Many relevant authority say the law is framed to suit " big corporate who seek to dominate the Indian food and agriculture business". It will weaken the bargaining power of farmers. Also this will only helpful for the farmers having large farming areas not for the small one they can't negotiate even they are not be that much successful for making the contract with large buyers, exporters etc. Main part is that the price in the contract is not under MSP, both the parties will decide on their own basis. Demand has been rise for including the contract price under MSP. Farmers are worried about that MSP will be removed/ no gov. control over prices. 

BILL THE ESSENTIAL COMMODITIES [AMENDMENT] BILL, 2020

This will completely end the fear of hoarding becuase according to this one government will not interfere in this matter we can store as much as we can without the fear of being prosecuted. This will end the imposition of stock holding limits except under extraordinary circumstances. 

PROS

It is aimed at attractive private investment./ FDI into the farm sector as well as bringing price stability in the market. 

CONS

Big companies, large buyers will have the freedom to stock commodities, helping them dictate terms to farmers. They will release when they will get the demandable price in the market this will lead to the  chaining the markets to big firms, companies. Ultimately no profit for the farmers. Unlimited stocking can lead to artificial price fluctuations and low prices for farmers after harvest. 

                                                                                                                                                                                                                                                                                                                                            

AGRICULTURE PRODUCE MARKETING COMMITTEES [APMCs]

An Agriculture Produce Market Committee is a marketing board established by a state government on India to ensure farmers are safeguards from exploitation by large retailers, as well as ensuring the farm to retail price spread does not reach excessively high levels. 

MINIMUM SUPPORT PRICE[MSP] 

The minimum support price  is an agricultural product price set by the Government of India to purchase directly from the farmer. This rate is to safeguard the farmer to a minimum profit for the harvest, if the open market has lesserr price than the cost incurred.


SOURCE - STUDYIQ, THE INDIAN EXPRESS, BUSSINESS TODAY

                                                                                                             DATE: 24 SEPTEMBER, 2020

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