Three bills aimed at transformation of agriculture and raising farmers

• 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.

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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

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