• These bills seek to replace the ordinances promulgated in June 2020 under Atmanirbhar Bharat Abhiyaan to provide a boost to those engaged in agriculture and allied activities.
Major highlights of the bills related to agriculture reforms:
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020:
• It aims to open up agricultural marketing outside APMC market yards for farmers, and also remove barriers to inter-State trade.
• It proposes an electronic trading in transaction platform.
The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020:
• It aims at facilitating contract farming, where a private buyer contracts to purchase a crop at a certain price at the beginning of a season, transferring the risk of market unpredictability from the farmer to the corporate sponsor.
• It will empower farmers for engaging with processors, aggregators, wholesalers, large retailers and exporters on a level playing field without any fear of exploitation.
• It will reduce cost of marketing and improve income of farmers.
The Essential Commodities (Amendment) Bill, 2020:
• It aims to deregulate agricultural commodities like cereals, pulses, oilseeds, onions and potatoes.
• It will help harnessing of economies of scale and attract private sector/foreign direct investment into agriculture sector helping modernization of food supply chain.
• It will help both farmers and consumers while bringing in price stability.
Mains Paper 3: Economy
Prelims level: The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, The Essential Commodities (Amendment) Bill
Mains level: Details about the bills related to agricultural market reform