DMPQ-Throw light on the main provisions of Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020.

. The fundamental attributes of the law are as under:

  • Eliminating intermediaries, it empowers farmers to freely sell their produce (including poultry, livestock, dairy intended for human consumption besides cattle fodder and raw cotton) to wholesalers, retailers, end-users, value-adders, processors, manufacturers, exporters, etc. (who have Permanent Account Number (PAN) or Government notified document) as an alternative to the Agricultural Produce Market Committee (APMC) and offer competitive prices over the Minimum Support Price (MSP).
  • Laying the foundation of ‘One Nation – One Agriculture Market’, it establishes a barrier-free inter-state and intra-state independent agricultural trade conducted in any place of production, collection, and aggregation of farmer’s produce including farm gates, factory premises, warehouses, silos, and cold storages (except APMCs) with access to all traders, thus promoting competition and thereby remunerative price to farmers.
  • The farmers need not to register anywhere for selling their produce in the trade area. And no commission, market fee or cess or levy, by whatever name called, under any State law will be charged from any farmer or trader and even when it is materialized through electronic trading and transaction platform. Further, farmers will not have to carry their produce to distant markets, reducing transportation cost besides minimizing post-harvest losses.
  • The network of electronic devices and internet applications with compliance to guidelines for ‘fair trade practices’ (such as mode of trading, fees, technical parameters, logistics arrangements, quality assessment, timely payment, etc.) disseminated in local language builds confidence and ensure a seamless transparent trade with time-saving. In public interest, the Government may even prescribe a system of electronic registration for traders with modalities of transaction and rules.


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