Lok Sabha Question No. 228 (UNSTARRED), answered on 2021-02-02
Subject: Features of New Farm Bill
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: V. Kalanidhi, Andimuthu Raja

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

## LOK  SABHA UNSTARRED QUESTION NO.228

TO BE ANSWERED ON THE  2 ND  FEBRUARY, 2021

## FEATURES OF NEW FARM BILL

228. DR. KALANIDHI VEERASWAMY: SHRI A. RAJA:

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

- (a) the features of new farm bill;
- (b) whether the Government has removed/withdrawn Minimum Support Price(MSP) under this new bill, if so, the reasons therefor;
- (c) whether the Government has included the corporate sector under this new bill and if so, the reasons therefor; and
- (d) whether the Government is aware that this new bill is a death warrant for small and marginal  farmers  and  leaves  them  at  the  mercy  of  corporate  and  large-scale  institutional buyers by handing over agriculture and market to the big corporates?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी ( SHRI NARENDRA SINGH TOMAR)

- (a): The  features  of  '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 at Annexure-I & Annexure- II.
- (b): No Sir, the aforesaid Acts has no bearing on the policy and process of procurement on MSP.
- (c) & (d): These  farm  Acts  provide  an  ecosystem  where  the  farmers  can  enjoy  the freedom of choice relating to sale of farmers' produce which facilitates remunerative prices to farmers through competitive alternative channels for selling their produce.

These  farm  Acts  will  facilitate  direct  buying  from  farmers  in  trade  area  by  traders, processors,  exporters,  Farmer  Producer  Organizations  (FPOs),  agriculture  co-operative Societies etc., so as to facilitate farmers with better price realization due to short in supply chain and less marketing cost.

Farm Acts will accelerate more investment in marketing and value addition infrastructure near to farm gate creating more employment opportunities for rural youth.

Farm Acts provides additional marketing opportunities outside the APMC market yards such as farm-gates, cold storages, warehouse, silos, etc. to help farmers get remunerative prices due to additional competition.

'The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020' is  intended  to  promote  competition  and  transparency  in  trade  by  way  of  facilitation  of electronic trading system in trade area.

The Farming agreement i.e 'The Farmers (Empowerment and Protection) Agreement On  Price  Assurance  and  Farm  Services  Act,  2020'  will  enable  scaling  of  investment  by industry  for  production  and processing of high  value  agriculture  produces and  give  fillip  to exports.  The framework will also mitigate the risks for the farmers, enhance their income and will put in place an effective and conducive policy regime for agreements.

Farm  Acts  provides  sufficient  safeguard  mechanism  to  protect  the  interest  of  farmers including  that  of  small  and  marginal  farmers.  Simple,  accessible,  quick  and  cost  effective dispute resolution mechanism is prescribed at local Sub-divisional level and deterring penal provisions have been provided against traders to prevent and curb any violation of the Act by them.

## Annexure-I The salient features of the 'The Farmers' Produce Trade and Commerce (Promotion

## and Facilitation) Act, 2020' are as follows:

The Act provides for the creation of an ecosystem where the farmers enjoy the freedom of choice  relating  to  sale  of  farmers'  produce  which  facilitates  remunerative  prices  through competitive  alternative  trading  channels;  to  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; to provide a facilitative framework for electronic trading and for matters connected therewith or incidental thereto.

- i. Any trader with a Permanent Account Number (PAN) allotted under Income Tax Act 1961  or  such  other  document  as  may  be  notified  by  the  Central  Government  may engage in inter-state trade or intra-state trade of scheduled farmers produce. Farmer Producer  Organizations  (FPOs)  or  agricultural  co-operative  societies  do  not  require PAN card for trading in the trade area.
- ii. No market fee or cess under any state APMC Act or any other state law is to be levied on  any  farmer  or  trader  or  electronic  trade  and  transaction  platform  for  trade  in  the trade area.
- iii. Payment to the farmer is to be made on the same day or maximum within 3 days, if procedurally so required.
- iv. Any person (other than individual) having a Permanent Account Number allotted under the Income Tax Act, 1961or such other document as may be notified by the Central Government  or  any  FPOs  or  agricultural  co-operative  society  may  establish  and operate  an  electronic  trading  and  transaction  platform  for  facilitating  inter-state  and intra-state trade of scheduled farmers produce in a trade area.
5. Provided  that  the  person  establishing  and  operating  an  electronic  trading  and transaction platform shall prepare and implement the guidelines for fair trade practices such  as  mode  of  trading  fees,  technical  parameters  including  inter-operability  with other platforms, logistics arrangements, quality assessment, timely payment, dissemination of guidelines in local language of the place of operation of the platform and such other matters.
- v. Simple, accessible, quick and cost effective dispute resolution mechanism  is prescribed for the farmers at sub-division level through conciliation board and further by Sub-Divisional Authority and District Collector.

## The salient features of the 'The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020' are as follows:

- (i) Creating a legal  framework  for  farming  agreements  between  farmers'  and sponsors.
- (ii) Central Government may provide for model farming agreements for facilitation.
- (iii) Agreements can require that ownership of crops be retained by the farmer during production.
- (iv) Agreements may also provide for the sponsor to provide inputs and bear risks.
- (v) Farming agreements shall be exempted from application of any State Act available for  the  purpose  of  regulation  of  sale  and  purchase  of  such  farming  produce. Essential Commodities Act 1951 or any control order issued thereunder shall not be applicable to such quantity of farming produce as are purchased under farming agreements.
- (vi) Farming agreements cannot be entered, if they are in derogation of the rights of the share cropper.
- (vii) Facilitating greater certainty in quality and price.
- (viii) Flexible price subject to guaranteed price.
- (ix) Sponsor to ensure timely acceptance of delivery and payment of produce
- (x) Prohibition of sale, lease or mortgage of farmers' land and Farmers' land protected against any recovery.
- (xi) Farmers'  liability  limited  to  advance  received  and  cost  of  inputs  provided  by  the sponsor.
- (xii) Linkage of farming agreements with insurance and credit instruments.
- (xiii) Notification of a Registration Authority to provide for e-registry of such agreements.
- (xiv) Provisions for conciliation and dispute settlement.

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