'One India, one agriculture market': Centre approves ordinance to promote barrier-free agricultural trade

The Centre on June 3 presented a set of ordinances to push forward its ‘One India, one agriculture market’ project and allow farmers to trade freely.

The move is aimed at building a seamless national market for farmers to sell produce, protect them from price risks, and improve their earnings and better agricultural investments.

The Cabinet had earlier cleared the way by approving the Farming Produce Trade and Commerce (Facilitation and Promotion) Ordinance, 2020 aimed at a barrier-free trade between states. It will allow farmers to sell across the country and utilise electronic platforms.

Under this, farmers can sell produce outside Agriculture Produce Market Committees (APMCs) to any buyer directly. Agriculture minister Narendra Singh Tomar said such trade will not be taxed and buyers will also not require a license in lieu of PAN Card. He further stated that disputes if any must be addressed to the sub-divisional magistrates and district collectors within a span of two months.

Farmer presently are forced to depend on state regulated Agriculture Produce Market Committees (APMCs) and face tight regulations and entry barriers, which could affect the fair price. State restrictions have also impeded movement of farm produce across the country, the statement said.

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Another ordinance passed is the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020 which allows farmers to enter contract arrangements with retailers, exporters and processors.

This is expected to push risk of fluctuating prices from farmers onto companies – who are better equipped to handle it. It will also provide farmers access to new technology, reduce their marketing cost and improve income, it noted.

Tomar emphasised that farmers’ interest would be “protected in all circumstances” and the ordinance will ensure that farmers receive a share of the higher prices.