Agriculture minister Narendra Singh Tomar has asked all chief ministers of states to implement the provisions and create an ecosystem for farm growth.He stressed the need for their continued support in the development and growth of the agriculture sector in the new reformed environment.
“The two ordinances – The Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020 and the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance 2020 will create an conducive ecosystem private investment in agriculture,” said a senior agriculture ministry official.
The Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020
will provide for the creation of an ecosystem where the farmers and traders enjoy the freedom of choice relating to sale and purchase of farmers’ produce which facilitates remunerative prices through competitive alternative trading channels.
“It will 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. Besides, the Ordinance will provide a facilitative framework for electronic trading and matters connected therewith or incidental thereto,” the official said.
The second ordinance related to corporate farming – The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance 2020 – will provide for a national framework on farming agreements that protects and empowers farmers to engage with agri- business firms, processors, wholesalers, exporters or large retailers for farm services and sale of future farming produce at a mutually agreed remunerative price framework in a fair and transparent manner and for matters connected therewith or incidental thereto.
“Farmers can engage with large processors for minimum one crop season and maximum to five years. The provisions in the Ordinance are farmer-friendly aimed at safeguarding the interest of the farmers,” the official said.
The President also promulgated an Ordinance to amend Essential Commodities Act. Through this Ordinance, the government has taken out agricultural commodities like cereals, pulses, oilseeds, oils, onions and potatoes out of the essential commodities list. The amendment to the EC Act will allow clamping of stock limits on agricultural commodities only under “very exceptional circumstances” like natural calamities and famines.
“Stock limit would be applicable if the retail price of horticulture commodities rise by 100% and that of non perishable food stuffs increase by 50% over the price prevailing immediately preceding a year or average retail price of last five years, whichever is lower,” the official said.