On Wednesday, the union cabinet cleared an ordinance to pave the way for the creation of an ecosystem where farmers & traders will have the freedom of choice in sale & purchase of agri-produce.
The Govt's intention to bring this significant reform in the agriculture marketing was announced by Finance Minister Nirmala Sitharaman last month when she gave details of the Rs 20 lakh crore economic package announced by PM Narendra Modi.
Giving details about 'The Farming Produce Trade & Commerce (Promotion & Facilitation) Ordinance, 2020', Agriculture Minister Narendra Singh Tomar said on Wednesday that the ordinance will create a convenient & free environment for farmers in which they will have the freedom to buy & sell agricultural products according to their convenience.
At a media briefing on cabinet decisions, Tomar said that "With this ordinance, direct marketing by farmers will eliminate the middlemen & the farmers will get the right price for their produce. The risk associated with the fluctuations in the price of the produce will be reduced".
An official release said the ordinance will create "an ecosystem where the farmers & traders will enjoy the freedom of choice in sale & purchase of agri-produce".
The release stated that "It will also promote barrier-free inter-state & intra-state trade & commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislations. This is a historic-step in unlocking the vastly regulated agriculture markets in the country".
It added that the ordinance will open more choices for the farmer, reduce marketing costs for the farmers & help them in getting better prices.
The release said the ordinance will also help farmers of regions with surplus produce to get better prices & consumers of regions with shortages get lower prices.
The ordinance also proposes electronic trading in transaction platform for ensuring a seamless trade electronically.
The farmers will not be charged any cess or levy for sale of their produce. There will be a separate dispute resolution mechanism for the farmers.
The release said that the ordinance will "certainly pave the way for creating One India, One Agriculture Market".
The ordinance aims at creating additional trading opportunities outside the Agricultural Produce Market Committee (APMC) market yards to help farmers get remunerative prices due to additional competition.
The release stated that "This will supplement the existing MSP procurement system which is providing stable income to farmers. It will certainly pave the way for creating One India, One Agriculture Market & will lay the foundation for ensuring golden harvests for our hard-working farmers".
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