THE FARMERS' PRODUCE TRADE AND COMMERCE (PROMOTION AND FACILITATION) BILL, 2020

FREEDOM OF CHOICE

 Of party: Buy from and sell to anyone

Of pricing: Based on market competition instead of just minimum support price

Of channel: E-trading available

Of network: Both inter-state and intra-state

FAIR TRADING

 Time bound payments

Ease of payments and transparency of pricing facilitated by government systems

Guidelines for trading, payments, logistics, inter-operability

Restrictions on market fee/cess/levy by APMC Acts

Registration and document requirments for traders

STRINGENCY

 Fines: Rs 25,000 to Rs 5 lakh + Rs 5000/day

Rs 50,000 - Rs 10 lakh + Rs 10,000/day

Basics:

Ordinance was dated June 5, 2020, which is replaced by this Bill. Not today, not 20.09.2020.

  1. Both farmers and traders have freedom of choice
  2. Remunerative pricing through competitive alternative trading channels
  3. Seamless inter-state trade irrespective of physical markets set up by state
  4. E-trading

Important definitions:

  • Notifications can be both by the central or the state government
  • Definition of Trader includes those who purchase farm produce for end-use. Needs clarity.

Important provisions:

  • Farmers or traders are free to trade inter-state, intra state, with any trader directly, or through e-trading.
  • Traders are free to do trading in agricultural produce specified under any State APMC Act in inter-state, intra state trade except that they need PAN or other document as notified by central government.
  • Traders may be required to be registered electronically.
  • Traders are required to make payment to the farmers on T or maximum T+3. Government can make better arrangements to ensure payments to farmers.
  • Any non-individual (ex. Company, firm etc) having a PAN may set up an electronic trading platform. Guidelines for fair trading, timely payment, inter-operability and logistics arrangement. Central government may prescribe rules.
  • No market fee or cess or levy, by whatever name called, under any State APMC Act or any other State law, shall be levied on any farmer or trader or electronic trading and transaction platform for trade and commerce in scheduled farmers' produce in a trade area.
  • Central government will set up a Price Information and Market Intelligence System
  • Dispute resolution - Conciliation board nominated by Sub-Divisional Magistrate or Sub-Divisional Magistrate, appeals to collector. Disputes arising from rights to operate of or violation of guidelines by, the trading platform – Agriculture Marketing Adviser, Directorate of Marketing and Inspection, Government of India or officer of state or central government can take suo motu action. Appeals to Joint Secretary of Central Government.
  • Penalties - Section 4 and rules - 25,000 to 500,000 and continuing ones- Rs. 5000/day

Section 5 and 7, Rs. 50,000 to 10,00,000 and continuing ones- Rs. 10,000/day.

Important Misc's

  • Bar on civil court jurisdiction
  • Act to have overriding effect on any law that may be inconsistent
  • Only central government can make rules.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.