AGRICULTURAL LAWS OF 2020

- Sarojani Kaza, Srija Panja, Likhitha Peruri, Aishwarya Reddy,

Prashanth Purimitla, Srihith Buddharaju, Sandeep Bathini
 Agricultural laws of 2020

What are these agricultural laws?

The Indian agriculture laws of 2020 are three acts initiated by the Parliament of
India in September 2020.

The 3 acts are :

• The Farmers' Produce Trade and Commerce (Promotion and Facilitation)

Act

• The Essential Commodities (Amendment) Act

• The Farmers (Empowerment and Protection) Agreement on Price Assurance
and Farm Services Act. 

 Key analysis

• Enhancement in the availability of buyers

• Unrestrained trade
• Increase in competition
• Transparency in marketing platform
• Scanty government procurement facilities
• Better infrastructural facilities
• Improvement in civic facilities
• Aids small and marginal farmers
• Contract with agri-business irms or retailers
• Transfer of risk from farmer to sponsor

 The Farmers produce trade and commerce Act

• On September 17 2020 , The Farmers produce trade and commerce law was passed.

• The bill was introduced by Narendra singh Tomar ( Minister of Agriculture and farmers welfare ).

• The act was collectively passed as part of 2020 farm bills.

• This act seeks to facilitate lucrative prices for farmers through competitive alternative trading channels
to promote barrier- free inter state and intra state trade of Agriculture goods.

• This act , however allows trading in " outside trade areas " - such as farm gates , factory premises ,
warehouses and cold storages etc.

• IT also permits the electronic trading of farmers produce in the speci ied trade areas.

• It facilitates Direct and online buying and selling of such products through
electronic devices and internet

• Before the act , state government levied taxes for agricultural produce that was
bought outside the designated APMC Mandis

• The new bill gives impression that farmers had unnecessary restrictions to trade
freely for agriculture products and Mandis were the designated space for all
transactions.

 The Essential Commodities (Amendment) Act

• The Essential Commodities (Amendment) Ordinance, 2020 was promulgated on

June 5, 2020.

• It amends the Essential Commodities Act, 1955.

• The Act empowers the central government to control the production, supply,
distribution, trade etc.

• The Ordinance seeks to increase competition in the agriculture sector.

• It aims to liberalise the regulatory system.

• Under these systems, food grains are distributed by the government.

• At present, there are seven commodities, drugs, fertiliser, food stuffs, oils, hank
yarn, petroleum.

 The Farmers Agreement on Price Assurance and Farm Services Act

• On September 14, 2020, The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm
Services Bill, 2020, was passed.

• This Bill was introduced by Narendra Singh Tomar.

• It became an Act on September 27, 2020.

• There have been nationwide protests by farmers against the bill.

• A farming agreement is a written agreement entered into between a farmer and a ‘sponsor’, prior to the production.

• Farming agreements may contain the terms and conditions for the supply of farm produce.

• The minimum period shall be one crop season or production cycle of livestock, and the maximum period shall be
ive years.
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• The price of farmers’ produce may be mentioned in the farming agreement.

• No farming agreement shall be entered into for the transfer – including sale,
lease and mortgage.

• The farm produce mentioned in agreements under this Act shall be exempt
from the application of any state law that aims to regulate the sale or purchase
of agricultural produce.

 Farmers protest
• Indian farmers' protest is an ongoing protest against three farm acts.

• Farmers, farmer unions and their representatives have stated that they will not accept a
compromise.

• The farmers have also demanded the creation of an Minimum Support Price (MSP) bill, to
ensure that corporates cannot control the prices.

• The farmers fear that once the private grain markets are established, the traditional grain
markets will become history.

• The farmers will have to depend on corporations and private irms.

• Farmers believe that these reforms will make them entirely dependent on traders.

• India’s Supreme Court temporarily paused the implementation of new agricultural laws
that have led to widespread protests from farmers.

• Farmers protest against reform measures that they say bene it large private buyers and
harm growers.

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 Pros and Cons

Advantages of agriculture laws:

• Promote barrier-free inter state and intra state trade of farmers produce
• To reduce cost of marketing and boost farmers income
• To help both farmers and consumers by bringing in price stability

Disadvantages of agriculture laws: 

• No provision enumerated under the new ordinance regarding MSP
• APMCs are  helpful only for small farmers
• The market will go into the hands of big businesses

 Conclusion

The government should take following steps for the betterment of farmers :

• Statutory backing to MSP

• Eradication of fear in farmers
• Address the concerns of farmers
• Taking the opinions of farmers into consideration
• Attract investment and technology
• Strengthen the government market places

THANK YOU!