Why in issue-
- Congress MP Shashi Tharoor on September 14, 2020 stated that agriculture is a matter of state and states were not consulted before passing the ordinance.
- The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020 was promulgated in 2020 and is being highly opposed by farmers in different states.
- It follows to administer for barrier-free trade of farmers’ products outside the mandis notified under the numerous state agricultural produce market laws (state APMC Acts), and empowers farmers to enter into farming accord with private organization or people prior to production for sale of agri-produce. The Ordinance will abound over state APMC Acts.
- The Ordinance allows intra-state and inter-state trade of farmers’ produce outside: (i) the physical premises of market yards run by market committees formed under the state APMC Acts and (ii) other markets notified under the state APMC acts such as private market yards and market sub-yards, direct marketing collection centres, and private farmer-consumer market yards. Such trade can be conducted in any place of production, collection, and aggregation of farmers’ produce including: (i) farm gates, (ii) factory premises, (iii) warehouses, (iv) silos, and (v) cold storages.
- The Ordinance allows farmers, farm producer organizations as well as anyone who buys farmers’ produce for: (i) wholesale trade, (ii) retail, (iii) end-use, (iv) value addition, (v) processing, (vi) manufacturing, (vii) export, or (viii) consumption, to engage in such intra-state or inter-state trade.
- A person transacting with a farmer will be required to make payments to the farmer on the same day, or within three working days in certain conditions, for any transaction of scheduled farmers’ produce.
- The Ordinance prohibits state governments from levying any market fee, cess or levy on farmers, traders, and electronic trading platforms for any trade under the Ordinance.