Farmer Bill 2020

Farmer Bill 2020
03/11/2020 No Comments Uncategorized himanshu verma

Farmers Bills 2020


3 Bills in Monsoon Session

  1. Agri Market Reforms – Farmers Produce Trade, Commerce (Promotion and Facilitation) Bill 2020.
  2. Contract Farming – Farmer (Empowerment and Protection) Agreement of Price Assurance and Farm services Bill 2020.
  3. The Essential Commodities (Amendment) Bill 2020.



Agri Market Reforms


Freedom to Sell outside APMC (Agri Produce Market Committee)

State loose revenue

Promote barrier free trade

Commission Agents/ Ardhtiyas may be Marinalised

Reduce transportation Costs and better proces to Farmers

May end MSP (Min Support Price)

Facilitate electronic trading

Fate of e-NAM (electronic trading) in absence of physical mandis become uncertains




Contract Farming


Farmers contract sale of fulux Produce at pre agreed price

Farmers weaker party to negotiate

Aggregation Contracts


Risk from farmers – sponsors

Sponsors may not deal with multitude of marginal farmers

Modern Tech a better inputs


Cost of marketing and boost farmers in come

sponsors with large resources have advantage in disputes

directy marketing (w/ointermediate


Dispute resolution timelines


Bill Relating to Commodities



Removal of cereals pulses, oilseeds, onion and potatoes from essential commodities except extra ordinatory circumstances.

Price limit so high

FDI in farm sector by reducing regulatory interferance.

Big loss stocking manipulate market price

Farm infra investment in cold storage, food process + supply Chain

Ban on export onion → doubt on implementation

Price stability


Comptt wastages


Follow up of National Commission of Farmers 2006 MS Swaminathan govt increased MSP by 1.5 times x Production Cost.

  • BJP chief JP Nadda: MSP bill continues MSP for paddy increased by 2.4 times in last 5 years.
  • 113,000crore as MSP for wheat, paddy, oil seeds and pulses – 31% increase from previous years.
  • MSP for oil seeds and copra rose by 10 times in last fine years.
  • MSP for pulses increased by 73% – 5 years.
  • After Abrogation of Art 370 Purchase of apples from valley through Govt NAFED ( Mate Agree co-op Marketing Federation of India Ltd.
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