Thursday , October 21 2021

Good news, farmers will now get the right price for their produce, ordinances issued

Delhi: One Country, One Market: The Narendra Modi (Narendra Modi) government at the Center notified two ordinances related to agricultural reform on Friday. These ordinances are related to helping farmers in free trade and to get a better price for their produce. According to an official statement, ” The President of India has approved these ordinances for the goal of advancing farmers and rural India engaged in agriculture and allied activities .” The government notified the ‘Farmer Produce Trade and Commerce (Promotion and Facilitation) Ordinance 2020’. Its goal is to allow farmers to sell agricultural produce within the state and in other states in the market of their choice.

Farmers will be able to tie up with processing units, wholesalers, big retail companies and exporters
At the same time, another ordinance ‘ Farmer’s (Empowerment and Security) Agreement on Price Assurance and Agricultural Services Ordinance-2020’ will give relaxation to farmers on pre-fixed prices with processing units, wholesalers, large retail companies and exporters. Agriculture Minister Narendra Singh Tomar wrote a letter to all Chief Ministers asking them to cooperate in implementing these reforms successfully. He stressed the need for continuous support in the development and growth of the agriculture sector in the environment of new reforms. The central government stressed that by giving farmers the option of selling products in the market of their choice with better prices, the number of potential buyers will also increase.

Traders are not allowed to trade without PAN number or other fixed documents
Barring agricultural produce organizations (FPOs) or agricultural cooperatives, no trader will be able to trade in any listed agricultural produce without PAN number or other fixed documents. The merchant doing business with the farmer will have to pay the farmer on the same day or within a maximum of three working days. A businessman who violates this provision will be fined a minimum of Rs 25,000 and a maximum of Rs five lakh. If the violation continues, there will be a provision for a fine of Rs 5,000 per day. The ordinance proposes to create an electronic business platform. Any PAN cardholder or government-held document or FPO and cooperative organization can create such a platform. This platform can facilitate trade within the state of farmers produce fixed in one trade area or in other states. For this, there will be rules related to proper business procedures.

Violation of the provisions of the e-business platform, a maximum fine of Rs 10 lakh
If any person or organization violates the provisions of the e-business platform, he will be fined a minimum of Rs 50,000 and a maximum of Rs 10 lakh. If the violation continues, then a fine of Rs 10,000 per day will be imposed. The ordinance also provides for the process of dispute settlement. Such disputes will be settled before the Sub-Divisional Magistrate and District Collector. They are excluded from civil courts. According to the ordinance, central or state government employees can also suspend an e-business platform for violating fair trade procedures. Any kind of deals outside the corporate markets is exempted from all charges. The Farmers (Empowerment and Security) Agreement Ordinance -2020 on ‘Price Assurance and Agricultural Services’ allows farmers to enter into a written agreement for the supply of agricultural produce at a pre-determined price, but to be made by any farmer No agricultural agreement will disrespect the rights of the sharecroppers. This agreement must be of at least one crop season or one production cycle. This agreement can be for a maximum period of five years.

The Central Government will issue guidelines for the Model Agricultural Agreement for this so that farmers can help in making written agreements. The agreement should clearly specify the amount to be given to the farmer for his produce. Also, any other amount above the fixed price should also be mentioned. The ordinance states that the sponsor will be responsible for the supply of agricultural produce under the agreement, which he must do from the farmer’s field within a set time. The sponsor will check the quality of agricultural products according to the agreement. This agreement will be exempt from any law of the states made for the regulation of the purchase and sale of produce.

No farmer will be allowed to transfer, sell, lease, or pledge the land and convert it for construction on the land. Farmer agreements can be linked to insurance and loan facilities under any scheme of central or state governments. The agreement can be terminated or changed by mutual consent. State governments can provide any registration authority or e-registry system for this. The ordinance provides for the formation of a reconciliation board for settlement of disputes, but no amount will be recovered in the name of the farmer or his land. These agreements have also been kept out of the purview of civil courts.

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