"Lok Sabha Passed Two Farm Reform Bills "

 

The Bill seeks to provide for the creation of an ecosystem where the farmers and traders can sell and purchase of farmers' produce which facilitates remunerative prices through competitive alternative trading channels.

Lok Sabha passed the Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020. The Bills were aimed to transform agriculture in the country and raising farmers’ income. The Bills were introduced in Lok Sabha by Union Minister of Agriculture & Farmers’ Welfare, Rural Development & Panchayati Raj Narendra Singh Tomar on 14th September 2020. The Bills will replace ordinances promulgated on 5th June 2020.

Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020:
♦ The Bill seeks to provide for the creation of an ecosystem where the farmers and traders can sell and purchase of farmers' produce which facilitates remunerative prices through competitive alternative trading channels.
♦ The Bill will promote efficient, transparent and barrier-free inter-State and intra-State trade and commerce of farmers' produce outside physical premises of markets or deemed markets notified under various State agricultural produce market legislations.
♦ The Bill also provides a facilitative framework for electronic trading and for matters connected therewith or incidental thereto.
♦ The Bill open more opportunities for the farmer, reduce marketing costs for the farmers and help them in getting better prices. 
♦ The Bill will help farmers of regions with surplus produce to get better prices and consumers of regions with shortages, lower prices. 
♦ It also proposed an electronic trading in transaction platform for ensuring a seamless trade electronically.

Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020
♦ The Bill aims 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.
♦ The Bill will transfer the risk of market unpredictability from the farmer to the sponsor. This will enable the farmers to access modern technology and better inputs. 
♦ It seeks to reduce the cost of marketing and improve income of farmers.