The Farmers Agreement on Price Assurance Bill

The average annual debt per agricultural household is estimated at about Rs 104,602. These trends may be related to increasing hardship among farmers, urban exodus and suicide rates in rural India, especially among farmers. By amending the Essential Goods Act, 1995, the Government is removing restrictions on the storage of multiple goods. In this way, the government intends to stabilize prices by increasing the efficiency of the supply chain through access to inventory. Availability of buyers for farmers` products and infrastructure It is also difficult to ensure that large corporations do not enslave already marginalized farmers. By allowing oral and written contracts, the Centre places farmers at the vulnerable end of the agreement without redress. In 2017-2018, the central government published the APMC model and contract farming laws to enable restrictive trade in agricultural products, promote competition through multiple marketing channels, and promote agriculture under pre-agreed contracts. [3],[4] The Standing Committee (2018-2019) noted that states have not implemented several of the reforms proposed in the model laws.13 It recommended that the central government form a committee of ministers of agriculture from all states in order to reach consensus and draft a legal framework for agricultural marketing. In July 2019, a high-level committee of seven chief ministers was established to discuss, among other things: (i) the timely adoption and implementation of model laws by states, and (ii) amendments to the Essential Products Act of 1955 (which provides for production control, supply and trade in essential raw materials) to attract private investment in agricultural marketing and infrastructure. [5] The price of agricultural products may be mentioned in the Agricultural Agreement. In the event that this price is subject to fluctuations, the agreement must explicitly indicate a guaranteed price to be paid to the farmer for his products, as well as a clear price reference for any additional amount to be paid – including a premium or premium`.

to provide the best value to the farmer. This price may be linked to the prices in force in certain shipyards of the Agricultural Price Market Committee (established under various laws of the state government to regulate markets and trade in agricultural products) or to electronic trading and transaction platforms (established to facilitate the trade and sale of agricultural products through a network of electronic devices and Internet applications). § Power of civil courts: Central law prohibits civil courts from adjudicating disputes under the law. The bill allows farmers to appeal to civil courts or seek other remedies under existing laws, including the central law. If the supply of agricultural products is to be taken over by the promoter under the livestock agreement, the latter shall accept such delivery within the agreed period. Before accepting delivery, the sponsor may check the quality or any other characteristic of these products in accordance with the agreement. The bills will empower farmers through better market access and increased opportunities for business outcomes. By eliminating the CMPA`s monopoly, the bills eliminate the long-standing challenge of intermediaries. Invoices could also lead to an open market that improves prices, supply chain efficiency and dynamic market linkages. A farmer is defined as a person who produces agricultural products himself or with the help of salaried workers.

This includes agricultural producer organizations, which are associations or groups of farmers registered or supported under central or state government laws or programs. The Farmers Produce Trade and Commerce Bill breaks the monopolistic situation granted to the APMC-FCI structure. The amendment to the Essential Goods Act of 1955 changes restrictions on inventories and allows staple foods to become commercial. The Trade and Commerce Regulations provide buyers with the freedom to purchase agricultural products outside of CMPA markets without having a licence or paying fees to the CMPA. The Contract Cultivation Ordinance provides buyers and farmers with a framework for concluding a contract (before the start of a harvest season) that guarantees farmers a minimum price and buyers a secure supply. The third regulation amends the Basic Materials Act so that stock limits for agricultural products can only be imposed in the event of a sharp increase in retail prices and exempts participants and exporters in the value chain from any stock limits. All three regulations aim to increase buyers` availability for farmers` products by allowing them to act freely without licensing or stock restrictions, so that increased competition between them leads to better prices for farmers. [9] Although the regulations are intended to liberalize trade and increase the number of buyers, this may not be enough to attract more buyers. The government must also require companies to draft written contracts in vernacular languages and abolish oral contracts.

It may also be necessary to disentangle the complexity associated with exporting and importing agricultural products in accordance with new bills. It is very likely that large companies will bury farmers in an avalanche of legal resources. It is undeniable that there is vastly disproportionate access to legal resources between farmers and businesses, and that there does not seem to be any real law to protect farmers` interests. By loosening the grip of the APMC, the government risks that farmers will receive prices below the Minimum Support Price (MSP). .