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New Delhi: Formalize its plan to unlock the growth potential of agricultural income by allowing unrestricted sale of produce center Wednesday approved three major legislative reforms intended to create “one India, one agricultural market” through ordinances, while attracting private investment in a sector hamstrung by separate regulations.
Three legislative reforms, which have failed to see the light of day despite many efforts in the past, include legislation to promote inter-state and inter-state trade in agricultural production, hindering farmers, processors, aggregators, wholesale Empowering vendors to engage with large retailers and exporters through advance contracts at pre-agreed prices and the Essential Commodities Act (an amendment)Esa) Which removes grains, pulses, oilseeds, edible oils, onions and potatoes from the list of essential commodities.
The amendment to the ESA would provide freedom to keep, transfer, distribute and supply such agricultural commodities and attract private sector and foreign direct investment to the agricultural sector.
“Long-pending agricultural reforms will enable the transformation of the (agriculture) sector,” Prime Minister Narendra Modi said in a series of tweets The cabinetDecisions of.
The decision was announced by Finance Minister Nirmala Sitharaman last month as part of the agriculture sector stimulus by the government. Since Parliament is not in session, the government preferred the ordinance route to provide quick relief to farmers during Kovid-19 situation.
Agriculture Minister Narendra Singh Tomar said that when asked how the Center can make agriculture a “state”, Agriculture Minister Narendra Singh Tomar said that it was very much in the area of the Central Government as it was connected with the inter-state trade of agricultural products. Was, which was covered under “Central”. “List.
Currently, farmers face many hurdles in marketing their produce as there are restrictions on farmers selling agricultural produce outside the notified market yard which are regulated by the Agricultural Produce Market Committee (APMC) legislations of the respective states. Under these legislations, farmers can only sell their produce to registered licensees and agents of state governments, often acting as informal money lenders.
The ordinance aims to create an ecosystem where farmers and traders enjoy the freedom of choice for the sale and purchase of agricultural produce and additional merchandise outside the APMC market yard to help farmers obtain remuneration prices due to increased competition Opportunities open up.
Although during the period of lockdown many states gave farmers some freedom to maintain the supply chain of fruits, vegetables and other agricultural products, the central law would provide a permanent mechanism where farmers are directly involved with individuals, cooperatives or farmer producer organizations (FPOs). Can sell to The government will introduce new laws in Parliament during its monsoon session to change the ordinances approved on Wednesday.
The Ordinance on Contract Farming – Farmer (Empowerment and Protection) Agreement on Price Assurance and Agricultural Services Ordinance, 2020 – takes the sponsor to shift the risk of market unpredictability and enables the farmer to access modern technology and better inputs . Since farmers will now be able to contract with traders and private players at pre-agreed prices, this will ensure guaranteed returns even if their prices crash in the market.
Under Modi’s first term, the Center had tried to bring about those reforms through the Model Acts and asked states to amend their respective APMC Acts. However, most did not appear on the state board. Agriculture Secretary Sanjay Aggarwal said that the issue was discussed with the states through video conference on May 21 and no one had any objection.
He said that states would continue with their respective APMC Acts and regulated mandis, but the new system under central law would now be available to farmers as additional platforms with adequate safeguards.
As far as amendments to the ESA are concerned, Tomar insisted that there would be no compromise with the interests of consumers. The Agriculture Minister said, “This has been done in such a way that the interests of both farmers and consumers will be protected.”
The amendment has provisions for regulating agricultural commodities in situations like war, famine, extraordinary price rise and natural disaster.
However, the established capacity of a value chain participant and export demand of exporters would be exempted from imposing such stock limits to ensure that investment in agriculture is not discouraged. Such a step will also prevent wastage of agricultural produce due to lack of storage facilities in the country.
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