Farm Bill 2020
Three different bills under Farm Bill 2020 are the following:
I. Farmers Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020
II. Farmers (Empowerment and Protection) Agreement of price assurance and farm services bill, 2020
III. Essential commodities (Amendment) bill, 2020
Farmers Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020
Farmers have the freedom to take part in intra and interstate market trade which is well out of APMC (Agricultural produce market committee).
Prohibits cess and other market fees related to APMC under the state.
Monopoly has been provided to central government to make rules and regulations under the act.
Farmers (Empowerment and Protection) Agreement of price assurance and farm services bill, 2020
>> This act is formed to bring contract farming into action
Contract Farming for negotiating power of the two parties involved.
Written agreement entered into prior to the production of farm product.
Essential commodities (Amendment) bill, 2020
Removal of cereals, pulses, oilseeds, edible oils, onion and potatoes from the essential commodities list and making deregulation of production, storage, movement and distribution of these food commodities.
Regulation of supply during war, famine, extraordinary price rise and natural calamities.
Stock limit is proportional to price rise.
Drawbacks of Farms Bills:
Degradation of cooperative federalism.
Partial dismantling of the functions of APMC.
No mechanism for price fixation
Food security undermined
Entry of cooperative sector
Advantages of Farms Bills:
Opening of agro market for the farmers
Elimination of intermediary
Direct involvement of centre in agro industry
Abolition of MSP – A huge misunderstanding regarding MSP is that is has been abolished. It is not true, there is no mentioning regarding the MSP to be abolished. The government still supports MSP.
The APMC would be used as an intermediary between corporate sector and farmers and negotiate a price suitable for both farmers and corporate sector.
The state government can formulate a bench to solve issues between farmers and corporate sector.