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FARM AMENDMENT BILL 2020 AND ITS PROS AND CONS.

BANKING FINANCE

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December 2020

There are three bills which are passed by Government. First one Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020.

- Rajeev Kumar

FARM AMENDMENT BILL 2020 AND ITS PROS AND CONS.

For better communication it is the best to refer to this Bill as the APMC Bypass Bill 2020 since that is the intent. The purpose of this bill is to create an ecosystem where farmers and traders enjoy the freedom to sell and purchase farm produce outside registered 'mandis' under states' APMCs.

Moreover this will promote barrier-free inter-state and intra-state trade of farmers' produce. Along with that this bill will reduce marketing/transportation costs and help farmers in getting better prices.

In addition to this, bill will provide a facilitative framework for electronic trading.

Contrary to these facilities State governments have the apprehensions to loose mandi fees as there is no compulsion for farmers to sell in mandi. Also they have anxiety about mandi agents who will loose their jobs. The apprehensions reached at the level of loosing MSP system. As they consider that MSP is possible till APMC (MANDI) exist. In this way the fate of E-NAM is also their concern. Of course E-NAM requires physical mandi structure but it will not be a particular one.

The Central government has decided to throw open the doors of national markets for farmers, allowing them to sell their produce ''wherever'' and to ''whoever'' without any restrictions on selling only to licensees in Agricultural Produce Market Committees (APMCs) or mandis.

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