The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
It will promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets
Passed by the Lok Sabha on September 17, 2020.
Passed by the Rajya Sabha on September 20, 2020.
Received Presidential Assent on September 24, 2020
The new law will create an ecosystem where the farmers and traders will enjoy freedom of choice of sale and purchase of agri-produce.
It will also promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislations.
The farmers will not be charged any cess or levy for sale of their produce and will not have to bear transport costs.
The law also proposes an electronic trading in transaction platform for ensuring a seamless trade electronically.
In addition to mandis, freedom to do trading at farmgate, cold storage, warehouse, processing units etc.
Farmers will be able to engage in direct marketing thereby eliminating intermediaries resulting in full realization of price.
Procurement at Minimum Support Price (MSP) will stop
Procurement at Minimum Support Price will continue, farmers can sell their produce at MSP rates. MSP procurement is on for the 'kharif season'.
If farm produce is sold outside Agricultural Produce Marketing Committee (APMC) mandis, these will stop functioning
Even if farm produce is sold outside APMC mandis, these will not stop functioning and trading will continue here as before. Under the new system, farmers will have the option to sell their produce at other places in addition to the mandis
What will be the future of government electronic trading portal like e-NAM
Government electronic trading portal like e-NAM will also continue at the APMC mandis. Trading in farm produce will increase on electronic platforms. It will result in greater transparency and time savingClick here for The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020