Lok Sabha Question No. 3433 (UNSTARRED), answered on 2021-03-16
Subject: Changes under New Farm Laws
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Thalikkottai Rajuthevar Baalu

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 3433

TO BE ANSWERED ON THE 16 TH  MARCH, 2021

## CHANGES UNDER NEW FARM LAWS

3433.  SHRI T.R. BAALU:

Will the Minister of AGRICULTURE AND  FARMERS  WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether the new farm law allowing private mandis to be set up will actually lead  to  the  dismantling  of  the  Agricultural  Produce  Market  Committee  (APMC) structure itself, as APMC mandis will cost taxes and compliance on part of the buyer,  increasing  preference  for  private  mandis  and  deterioration  in  farmers' terms of trade in reality;
- (b) if so, the details thereof, and if not, the reasons therefor;
- (c) whether it is a fact that the new farm law also removes stocking limits for farm produce, intervening only if there is a 100 percent rise in horticultural produce or 50 percent rise in non-perishables, over preceding 12 months; and
- (d) if so, the remedial steps to be taken by the Government since this leaves food stocks vulnerable to hoarding and food prices susceptible to astronomical rises?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA SINGH TOMAR)

- (a) & (b): No Sir. Private mandis, licensed under respective State Agricultural Produce Market Committee (APMC) Acts, are not governed under the new farm law of 'The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act,  2020'.  These  aforesaid  private  mandis  alongwith  APMC  mandis  in  the States are subjected to taxes, fees and cess as per respective State laws.

New  Farm  laws  viz,  'The  Farmers'  Produce  Trade  and  Commerce (Promotion  and  Facilitation)  Act,  2020'  and  'The  Farmers  (Empowerment  and Protection) Agreement On Price Assurance and Farm Services Act, 2020'  are intended to provide an ecosystem, whereby the farmers can enjoy the freedom of choice relating to sale of farmers' produce through additional marketing opportunities in trade area outside the APMC market yards, private markets and deemed markets under State APMC Act, to help farmers get remunerative prices due to additional competition. The states with efficient services at APMC market premises will continue to attract farmers and generate revenue. Overall, the farm Acts  will  ensure  the  creation  of  a  competitive  marketing  opportunities  and improved market access for farmers.

Government  has  always  been  supporting  the  idea  of  strengthening  of Agricultural  Produce  Market  Committees  (APMCs)  markets  and  making  them more  competitive  and  efficient  through  improving  their  infrastructure/  supply chain  and  services  for  users.  Government  has  been  providing  assistance  to APMCs for infrastructure and value chain development through various schemes like Rashtriya Krishi Vikas Yojna - RAFTAAR, Agriculture Market Infrastructure (AMI), National Agriculture Market (e-NAM), Agri. Infrastructure Fund (AIF) and Agriculture Marketing Infrastructure Fund (AMIF), etc.

(c) & (d): 'The Essential Commodities (Amendment) Act, 2020 provides the conditions for imposition of stock limits on agricultural produce. It provides that any order for imposition  of  stock  limits  shall  be  based  on price  trigger which  is 100% increase in retail price of horticultural produce and 50% increase in retail price  of  non-perishable  agricultural  foodstuff  over  the  immediately  preceding twelve  months  or  average  retail  price  of  last  five  years,  whichever  is  lower. Further, stock limits provides for imposing restrictions in exigent situations such as war, famine, extraordinary price rise and natural calamity of grave nature.

The  Essential  Commodities  Act,  1955  empowers  the  Government  to regulate prices, production, supply, distribution etc. of essential commodities for maintaining or increasing their supplies and for securing their equitable distribution and availability at fair prices. Most of the powers under the Act have been delegated to the State Governments through orders issued during 1972 to 1978.  The  'Prevention  of  Black-marketing  and  Maintenance  of  Supplies  of Essential  Commodities  Act,  1980'  intends  to  prevent  unethical  trade  practices like hoarding and black-marketing of essential commodities.'

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