Highlights

Union Minister of Agriculture & Farmers’ Welfare, Rural Development Narendra Singh Tomar was introduced the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 in Lok Sabha. The Farmers bill was passed in Lower House (Lok Sabha) of Parliament on 17 September 2020. The Farmers bill is aimed at transforming agriculture nationwide and raising farmers’ income. New Bill replaces the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Ordinance, 2020 promulgated on 5th June 2020.

Provisions of the Bill

  • It seeks to provide for a national framework on farming agreements.
  • It protects and empowers farmers to engage with agri-business firms, wholesalers, exporters, processors, large retailers for farm services.
  • It enables the farmers to sale their future farming produce at a mutually agreed price in a fair and transparent manner.
  • It provides for an effective dispute resolution mechanism transparent time lines for redressal.

Backdrop

Agriculture in India is highly fragmented because of its small holding sizes. It highly depends on Indian weather. There also exists production uncertainties and market unpredictability. Thus, agriculture is highly risky here and inefficient in input & output management. Thus, thisFamers bill has been introduced in order to transfer the risk of market unpredictability from the farmer to the sponsor.

Advantage

It will empower farmers to engage with processors, wholesalers, aggregators, wholesalers, large retailers, exporters. It will also create a level playing field without fear of exploitation. It will also reduce marketing costs and double the farmers income. The legislation will also act as a catalyst to attract private sector investment for building supply chains. As a result, Farmers will get access to technology and advice for high value agriculture.  Farmers will be engaged in direct marketing. Farmers Agreement of Price Assurance Bill 2020 Farmers Agreement of Price Assurance Bill 2020