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ORDINANCES TO BOOST RURAL INDIA AND AGRICULTURE

Focus: GS-II Social Justice GS-III Agriculture

Why in news?

The President of India has promulgated the following Ordinances with the aim of giving a boost to rural India for farmers engaged in agriculture and allied activities;

  1. The Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020
  2. The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance 2020

The Prevalent System

Model Agriculture Produce and Livestock Marketing (APLM) Act 2017, and the Model Agriculture Produce and Livestock Contract Farming Act of 2018, are drafted and circulated by Central Government for adoption by the states.

Why are the ordinances required?

  • There is a need for the farmer to sell agriculture produce at a place of his choice at a better price by increasing the number of prospective buyers.
  • There is a need a national legal facilitative ecosystem to improve intra-state and interstate trade of agriculture produce.
  • A facilitative framework is also necessary for farming agreements.

The Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020

  • This Ordinance will provide for the creation of an ecosystem where the farmers and traders enjoy the freedom of choice relating to sale and purchase of farmers’ produce which facilitates remunerative prices through competitive alternative trading channels.
  • It will promote efficient, transparent and barrier-free inter–State and intra-State trade and commerce of farmers’ produce outside the physical premises of markets or deemed markets notified under various State agricultural produce market legislations.
  • It will also provide a facilitative framework for electronic trading and matters connected with it.

The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance 2020

  • This ordinance will provide for a national framework on farming agreements that protects and empowers farmers to engage with agri- business firms, processors, wholesalers, exporters or large retailers for farm services and sale of future farming produce at a mutually agreed remunerative price framework in a fair and transparent manner and for related matters.

Agricultural Produce and Livestock Marketing (promotion and facilitation) Act, 2017 (APLMA, 2017

  • The model Agriculture Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017 was presented in 2017 seeking to replace APMC act 2003.
  • It is seen as a major agriculture marketing reform to help farmers directly connect with the different buyers and enable them to discover optimum price for their commodities.
  • The purpose is to create a single agriculture market with a single license wherein agriculture produce as well as livestock could be traded.
  • Only some States have adopted the APLMA Act fully, hence, lack of coverage is one of the main hindrances in addressing the issues of agri marketing.
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September 2022
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