Lok Sabha Question No. 212 (STARRED), answered on 2021-03-09
Subject: Private Sector Investment in Farm Sector Markets
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Sumalatha Ambareesh, Nalin Kumar Kateel

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

## LOK  SABHA STARRED QUESTION NO. 212

TO BE ANSWERED ON THE  9 TH  MARCH, 2021

## PRIVATE SECTOR INVESTMENT IN FARM SECTOR MARKETS

- *212.     SHRIMATI SUMALATHA AMBAREESH: SHRI NALIN KUMAR KATEEL:

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

- (a) whether the new farm laws have huge scope to improve the efficiency of agricultural markets in the country and if so, the details thereof;
- (b) whether it is true that there is a scope for private sector investment in the farm sector markets and if so, the details thereof; and
- (c) the total number of private entities which have invested in farm sector markets during the last three years along with the amount invested till date?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA  SINGH TOMAR)

- (a) to (c): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  LOK  SABHA STARRED QUESTION NO.  212    DUE FOR REPLY ON 9 TH  MARCH, 2021.

(a): Yes  Sir.  The  New  Farm  laws  viz,  'The  Farmers'  Produce  Trade  and  Commerce (Promotion  and  Facilitation)  Act,  2020',    'The  Farmers  (Empowerment  and  Protection) Agreement  on  Price  Assurance  and  Farm  Services  Act, 2020' and  'The  Essential Commodities (Amendment) Act, 2020,  are intended to improve the efficiency of agricultural markets in the country by providing 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 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 to enhance their income.

Farm laws will accelerate more investment in marketing and value addition infrastructure including that in storage facilities near to farm gate creating more employment opportunities for rural youth. Farm laws provide additional marketing opportunities to farmers for  selling  their  produce  outside  the  APMC  market  yards  such  as  at  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  also  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 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. 'The  Essential  Commodities  (Amendment)  Act,  2020',  encourages  investment  in harvest and post-harvest agricultural infrastructure and would help in enhancing the income of the farmers. The farmers are free to sell their produce to the Government procurement agencies at MSP or Agricultural Produce Market Committee (APMC) markets or through contract farming or in the open market whichever is advantageous to them. (b) & (c): Yes Sir. As per National Commission on Farmers' Report (2006), there should be one market to serve 80 sqkm whereas presently one regulated market serves 473 sqkm. Therefore, in order to realize more  number  of markets in country and to induce competitiveness and efficiency in marketing ecosystem, there is felt need for investment in farm sector marketing. Farm laws aim at promoting agriculture marketing infrastructure and supply  chain  for  efficiently  connecting  farm  gate  to  markets  for  benefits  of  farmers'  by encouraging investments. As  per  information  available  from  State  Governments,  a  total  number  of  38  private entities  have  developed farm sector markets during last three years including current year involving total investment of Rs.301.19 crore (Maharashtra-18 markets with Rs. 88.62 crore, Gujarat-  6  markets  with  Rs.151.6  crore,  Rajasthan  12  markets  with  Rs.  49.75  crore  and

Karnataka 2 markets with Rs.11.22 crore )

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