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

MAIN PROVISIONS

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.

DOUBT

Procurement at Minimum Support Price (MSP) will stop

REALITY

Procurement at Minimum Support Price will continue, farmers can sell their produce at MSP rates. MSP procurement is on for the 'kharif season'.

DOUBT

If farm produce is sold outside Agricultural Produce Marketing Committee (APMC) mandis, these will stop functioning

REALITY

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

DOUBT

What will be the future of government electronic trading portal like e-NAM

REALITY

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 saving

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