India allows farmers to sell produce directly to traders, wholesalers

ST Staff
Thursday, 4 June 2020

By 2022, NDA Govt plans to raise farmer's income by two times, this proposal was included in the 20-Lakh Crore Economic Package.

The Union Cabinet approved new amendments in Essential Commodities Act(1955), that enables Farmers in India to sell their crops to retailers and traders, other than street vegetable vendors.

Narendra Singh informs, traders and buyers can directly buy produce from the fields and also allows Farmers to sell in more than 7,000 wholesale markets in India.

Amendment in the act removes certain restrictions from products like cereals, pulses, onions and potatoes. There will be a stock limit imposition under exceptional circumstances.

Narendra Tomar, the Agriculture Minister said this is a step towards raising farmer's income. Now the act includes a legal framework which is an advantage to farmers as it gives price assurance.

By 2022, NDA Govt plans to raise farmer's income by two times, this proposal was included in the 20-Lakh Crore Economic Package.

Agriculture Produce Marketing Committee (APMC) Act only allowed Farmers to sell their produce to wholesale marketers in all the states of the country. The focus was on the protection of farmers from getting exploited by commercial market.

The union cabinet cleared ‘The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020', to enhance agriculture practices.

The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020' was proposed to empower farmers, aggregators, wholesalers, retailers and large exporters. The ordinance promotes barrier-free trade. Inter-state and intra-state trade is being encouraged.

Mr Tomar said, "The proposed amendment to the Essential Commodities Act will allay fears of private investors of excessive regulatory interference."

The agriculture minister also added, “this is a historic-step in unlocking the vastly regulated agricultural markets in the country."

The nation-wide lockdown triggered a severe shortage of manpower in the wholesale market, majorly affecting farmers' income. Hence, the amendment will uplift agricultural sector and improve farmers' annual income. 

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