Pros and Cons of Farm Act - Atharva Ahire

 YP Buzz - 

                    1. Farmer's Produce Trade and Commerce(Promotion and Facilitation) Bill, 2020 is actually a bill on Agri market. So there are some certain provisions and contradictions. 

Benefits –

 # Farmers and traders have the freedom to sell and purchase farm products outside registered mandis under state Agricultural Produce Market Committee (APMCs). 

 # To promote efficient, transparent, and barrier free inter-state and intra-state trade of farmer’s produce.

 # To help farmers in getting better prices.

 # To provide a facilitative framework for electronic trading. 

Contradiction – 

# Will small farmers afford the transport charges while selling or buying farmer’s produce from one state to another? 

# States will lose revenue as they won't be able to collect 'mandi fees' if farmers sell their produce outside registered APMC markets. 

# What happens to 'commission agents' in states if the entire farm trade moves out of mandis? 

# It may eventually end the MSP-based procurement system. 

# Electronic trading like in e-NAM uses a physical 'mandi' structure. What will happen to e-NAM if 'mandis' are destroyed in absence of trading? 




                2. The Farmer (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020. This bill is on contract farming.

 Benefits –

# Farmers can enter into a contract with agribusiness firms, processors, wholesalers, exporters, or large retailers for the sale of future farming produces at a pre-agreed price. 

# Marginal and small farmers, with land less than five hectares, to gain via aggregation and contract (Marginal and small farmers account for 86% of total farmers in India) 

# To transfer the risk of market unpredictability from farmers to sponsors. 

# To enable farmers to access modern tech and get better inputs 

# To reduce the cost of marketing and boost a farmer's income. 

# Farmers can engage in direct marketing by eliminating intermediaries for full price realization 

# Effective dispute resolution mechanism with the redressal timelines.


# Farmers in contract farming arrangements will be the weaker players in terms of their ability to negotiate what they need. 

# The sponsors may not like to deal with a multitude of small and marginal farmers. 

# Being big private companies, exporters, wholesalers and processors, the sponsors will have an edge in disputes. 

# In this system farmer won’t get any Minimum support price as it is not mentioned in the bill. 





                      3. The Essential Commodities (Amendment) Bill, 2020. This bill relating to Commodities. Actually, this is an amendment to Essential Commodities Act of 1955. 

Benefits – 

# It is aimed at deregulating Commodities such as cereals, pulses, oilseeds, edible oil, onion, and potatoes from the list of Essential Commodities. Means govt. Can regulate it’s supply only under extraordinary circumstances such as war, famine, a natural calamity. 

# It will do away with the imposition of stock holding limits on such items except under "extraordinary circumstances" like war, famine, extraordinary price rise, and natural calamity of grave nature. 

# To bring investment for farm infrastructure like cold storages, and modernizing food supply chain. 

# To help both farmers and consumers by bringing at price stability by removing some farm products from essential Commodities list. 

# This provision will attract private sector/FDI into the farm sector as it will remove fears of private investors of excessive regulatory interference in business operations. 

# To cut wastage of farm produce.

Contradiction – 

# Big companies will have the freedom to stock commodities means they will dictate terms to farmers which may lead to fewer prices for the cultivators. 

# Recent decision on export ban on onion creates doubt on its implementation. 

# Price limits for "extraordinary circumstances" are so high that they are likely to be never triggered.

Blog by - Atharva Ahire

Thanks & Regards,

 YP Buzz

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  1. Farmers do not need any government schemes .. because 1- it does not reach the farmers ... if the farmers want it, it is a guaranteed price ..... I request you to add further information about it .... yours

  2. We thank you for thinking so much about farmers


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